Bill Text: FL S0336 | 2016 | Regular Session | Comm Sub


Bill Title: Property Insurance Appraisers and Property Insurance Appraisal Umpires

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Failed) 2016-03-11 - Died in Appropriations [S0336 Detail]

Download: Florida-2016-S0336-Comm_Sub.html
       Florida Senate - 2016                       CS for CS for SB 336
       
       
        
       By the Committees on Banking and Insurance; and Regulated
       Industries; and Senator Richter
       
       597-03667-16                                           2016336c2
    1                        A bill to be entitled                      
    2         An act relating to property insurance appraisers and
    3         property insurance appraisal umpires; amending s.
    4         624.04, F.S.; revising the definition of the term
    5         “person”; amending s. 624.303, F.S.; exempting
    6         certificates issued to property insurance appraisal
    7         umpires from the requirement to bear a seal of the
    8         Department of Financial Services; amending s. 624.311,
    9         F.S.; providing a schedule for destruction of property
   10         insurance appraisal umpire licensing files and
   11         records; amending s. 624.317, F.S.; authorizing the
   12         department to investigate property insurance appraisal
   13         umpires for violations of the insurance code; amending
   14         s. 624.501, F.S.; authorizing specified licensing fees
   15         for property insurance appraisal umpires; amending s.
   16         624.523, F.S.; requiring fees associated with property
   17         insurance appraisal umpires’ appointments to be
   18         deposited into the Insurance Regulatory Trust Fund;
   19         amending s. 626.015, F.S.; providing a definition;
   20         amending s. 626.016, F.S.; revising the scope of the
   21         Chief Financial Officer’s powers and duties and the
   22         department’s enforcement jurisdiction to include
   23         umpires; amending s. 626.022, F.S.; including property
   24         insurance appraisal umpire licensing in the scope of
   25         part I of ch. 626, F.S., relating to licensing
   26         procedures; amending s. 626.112, F.S.; requiring
   27         umpires to be licensed and appointed; providing that
   28         certain retired judges are not required to be licensed
   29         to be umpires; requiring licensure as an adjuster when
   30         serving as an appraiser under certain conditions;
   31         providing that only a self-appointed insurance
   32         adjuster may serve as an appraiser; prohibiting
   33         persons convicted of a certain felony or crime or
   34         certain disqualified persons from engaging in certain
   35         activities; defining the term “convicted”; amending s.
   36         626.171, F.S.; requiring applicants for licensure as
   37         an umpire to submit fingerprints to the department;
   38         amending s. 626.207, F.S.; excluding applicants for
   39         licensure as umpires from application of s. 112.011,
   40         F.S., relating to disqualification from license or
   41         public employment; amending s. 626.2815, F.S.;
   42         requiring specified continuing education for licensure
   43         as an umpire; amending s. 626.451, F.S.; providing
   44         requirements relating to the appointment of an umpire;
   45         amending s. 626.461, F.S.; providing that an umpire
   46         appointment continues in effect, subject to renewal or
   47         earlier written notice of termination, until the
   48         person’s license is revoked or otherwise terminated;
   49         amending s. 626.521, F.S.; authorizing the department
   50         to obtain a credit and character report for certain
   51         umpire applicants; amending s. 626.541, F.S.;
   52         requiring an umpire to provide certain information to
   53         the department when doing business under a different
   54         business name or when information in the licensure
   55         application changes; amending s. 626.601, F.S.;
   56         authorizing the department or office to investigate
   57         improper conduct of any licensed umpire; amending s.
   58         626.611, F.S.; requiring the department to refuse,
   59         suspend, or revoke an umpire’s license under certain
   60         circumstances; amending s. 626.621, F.S.; authorizing
   61         the department to refuse, suspend, or revoke an
   62         umpire’s license under certain circumstances; amending
   63         s. 626.641, F.S.; prohibiting an umpire from owning,
   64         controlling, or being employed by other licensees
   65         during the period the umpire’s license is suspended or
   66         revoked; amending ss. 626.7845, 626.8305, and
   67         626.8411, F.S.; conforming provisions to changes made
   68         by the act; amending s. 626.8443, F.S.; prohibiting a
   69         title insurance agent from owning, controlling, or
   70         being employed by an umpire during the period the
   71         agent’s license is suspended or revoked; amending s.
   72         626.854, F.S.; providing limitations on fees charged
   73         by a public adjuster during an appraisal; creating s.
   74         626.8791, F.S.; establishing required notice in a
   75         contract for appraisal services; amending s. 626.9957,
   76         F.S.; conforming a cross-reference; creating part XIV
   77         of ch. 626, F.S., relating to property insurance
   78         appraisal umpires; creating s. 626.9961, F.S.;
   79         providing a short title; creating s. 626.9962, F.S.;
   80         providing legislative purpose; creating s. 626.9963,
   81         F.S.; providing that the part supplements part I of
   82         ch. 626, F.S., the “Licensing Procedure Law”; creating
   83         s. 626.9964, F.S.; providing definitions; creating s.
   84         626.9965, F.S.; providing qualifications for license
   85         as an umpire; creating s. 626.9966, F.S.; authorizing
   86         the department to refuse, suspend, or revoke an
   87         umpire’s license under certain circumstances; creating
   88         s. 626.9967, F.S.; providing ethical standards for
   89         property insurance appraisal umpires; creating s.
   90         626.9968, F.S.; providing for disqualification of an
   91         umpire under certain circumstances; repealing s.
   92         627.70151, F.S., relating to appraisal conflicts of
   93         interest; providing an appropriation and authorizing
   94         positions; providing applicability; providing an
   95         effective date.
   96          
   97  Be It Enacted by the Legislature of the State of Florida:
   98  
   99         Section 1. Section 624.04, Florida Statutes, is amended to
  100  read:
  101         624.04 “Person” defined.—“Person” includes an individual,
  102  insurer, company, association, organization, Lloyds, society,
  103  reciprocal insurer or interinsurance exchange, partnership,
  104  syndicate, business trust, corporation, agent, general agent,
  105  broker, service representative, adjuster, property insurance
  106  appraisal umpire, and every legal entity.
  107         Section 2. Subsection (2) of section 624.303, Florida
  108  Statutes, is amended to read:
  109         624.303 Seal; certified copies as evidence.—
  110         (2) All certificates executed by the department or office,
  111  other than licenses of agents, property insurance appraisal
  112  umpires, or adjusters, or similar licenses or permits, shall
  113  bear its respective seal.
  114         Section 3. Subsection (4) of section 624.311, Florida
  115  Statutes, is amended to read:
  116         624.311 Records; reproductions; destruction.—
  117         (4) To facilitate the efficient use of floor space and
  118  filing equipment in its offices, the department, commission, and
  119  office may each destroy the following records and documents
  120  pursuant to chapter 257:
  121         (a) General closed correspondence files over 3 years old;
  122         (b) Agent, adjuster, property insurance appraisal umpire,
  123  and similar license files, including license files of the
  124  Division of State Fire Marshal, over 2 years old; except that
  125  the department or office shall preserve by reproduction or
  126  otherwise a copy of the original records upon the basis of which
  127  each such licensee qualified for her or his initial license,
  128  except a competency examination, and of any disciplinary
  129  proceeding affecting the licensee;
  130         (c) All agent, adjuster, property insurance appraisal
  131  umpire, and similar license files and records, including
  132  original license qualification records and records of
  133  disciplinary proceedings 5 years after a licensee has ceased to
  134  be qualified for a license;
  135         (d) Insurer certificate of authority files over 2 years
  136  old, except that the office shall preserve by reproduction or
  137  otherwise a copy of the initial certificate of authority of each
  138  insurer;
  139         (e) All documents and records which have been photographed
  140  or otherwise reproduced as provided in subsection (3), if such
  141  reproductions have been filed and an audit of the department or
  142  office has been completed for the period embracing the dates of
  143  such documents and records; and
  144         (f) All other records, documents, and files not expressly
  145  provided for in paragraphs (a)-(e).
  146         Section 4. Section 624.317, Florida Statutes, is amended to
  147  read:
  148         624.317 Investigation of agents, adjusters, property
  149  insurance appraisal umpires, administrators, service companies,
  150  and others.—If it has reason to believe that any person has
  151  violated or is violating any provision of this code, or upon the
  152  written complaint signed by any interested person indicating
  153  that any such violation may exist:
  154         (1) The department shall conduct such investigation as it
  155  deems necessary of the accounts, records, documents, and
  156  transactions pertaining to or affecting the insurance affairs of
  157  any general agent, surplus lines agent, adjuster, property
  158  insurance appraisal umpire, managing general agent, insurance
  159  agent, insurance agency, customer representative, service
  160  representative, or other person subject to its jurisdiction,
  161  subject to the requirements of s. 626.601.
  162         (2) The office shall conduct such investigation as it deems
  163  necessary of the accounts, records, documents, and transactions
  164  pertaining to or affecting the insurance affairs of any:
  165         (a) Administrator, service company, or other person subject
  166  to its jurisdiction.
  167         (b) Person having a contract or power of attorney under
  168  which she or he enjoys in fact the exclusive or dominant right
  169  to manage or control an insurer.
  170         (c) Person engaged in or proposing to be engaged in the
  171  promotion or formation of:
  172         1. A domestic insurer;
  173         2. An insurance holding corporation; or
  174         3. A corporation to finance a domestic insurer or in the
  175  production of the domestic insurer’s business.
  176         Section 5. Paragraph (c) of subsection (19) and subsection
  177  (28) of section 624.501, Florida Statutes, are amended, and
  178  subsection (29) is added to that section, to read:
  179         624.501 Filing, license, appointment, and miscellaneous
  180  fees.—The department, commission, or office, as appropriate,
  181  shall collect in advance, and persons so served shall pay to it
  182  in advance, fees, licenses, and miscellaneous charges as
  183  follows:
  184         (19) Miscellaneous services:
  185         (c) For preparing lists of agents, adjusters, property
  186  insurance appraisal umpires, and other insurance
  187  representatives, and for other miscellaneous services, such
  188  reasonable charge as may be fixed by the office or department.
  189         (28) Late filing of appointment renewals for agents,
  190  adjusters, property insurance appraisal umpires, and other
  191  insurance representatives, each appointment...............$20.00
  192         (29)Property insurance appraisal umpires:
  193         (a) Property insurance appraisal umpire’s appointment and
  194  biennial renewal or continuation thereof, each appointment
  195  ..........................................................$60.00
  196         (b) Fee to cover the actual cost of a credit report when
  197  the report must be secured by the department.
  198         Section 6. Paragraph (e) of subsection (1) of section
  199  624.523, Florida Statutes, is amended to read:
  200         624.523 Insurance Regulatory Trust Fund.—
  201         (1) There is created in the State Treasury a trust fund
  202  designated “Insurance Regulatory Trust Fund” to which shall be
  203  credited all payments received on account of the following
  204  items:
  205         (e) All payments received on account of items provided for
  206  under respective provisions of s. 624.501, as follows:
  207         1. Subsection (1) (certificate of authority of insurer).
  208         2. Subsection (2) (charter documents of insurer).
  209         3. Subsection (3) (annual license tax of insurer).
  210         4. Subsection (4) (annual statement of insurer).
  211         5. Subsection (5) (application fee for insurance
  212  representatives).
  213         6. The “appointment fee” portion of any appointment
  214  provided for under paragraphs (6)(a) and (b) (insurance
  215  representatives, property, marine, casualty and surety
  216  insurance, and agents).
  217         7. Paragraph (6)(c) (nonresident agents).
  218         8. Paragraph (6)(d) (service representatives).
  219         9. The “appointment fee” portion of any appointment
  220  provided for under paragraph (7)(a) (life insurance agents,
  221  original appointment, and renewal or continuation of
  222  appointment).
  223         10. Paragraph (7)(b) (nonresident agent license).
  224         11. The “appointment fee” portion of any appointment
  225  provided for under paragraph (8)(a) (health insurance agents,
  226  agent’s appointment, and renewal or continuation fee).
  227         12. Paragraph (8)(b) (nonresident agent appointment).
  228         13. The “appointment fee” portion of any appointment
  229  provided for under subsections (9) and (10) (limited licenses
  230  and fraternal benefit society agents).
  231         14. Subsection (11) (surplus lines agent).
  232         15. Subsection (12) (adjusters’ appointment).
  233         16. Subsection (13) (examination fee).
  234         17. Subsection (14) (temporary license and appointment as
  235  agent or adjuster).
  236         18. Subsection (15) (reissuance, reinstatement, etc.).
  237         19. Subsection (16) (additional license continuation fees).
  238         20. Subsection (17) (filing application for permit to form
  239  insurer).
  240         21. Subsection (18) (license fee of rating organization).
  241         22. Subsection (19) (miscellaneous services).
  242         23. Subsection (20) (insurance agencies).
  243         24. Subsection (29) (property insurance appraisal umpires’
  244  appointment).
  245         Section 7. Subsections (16) through (19) of section
  246  626.015, Florida Statutes, are renumbered as subsections (17)
  247  through (20), respectively, and a new subsection (16) is added
  248  to that section, to read:
  249         626.015 Definitions.—As used in this part:
  250         (16) “Property insurance appraisal umpire” or “umpire”
  251  means a property insurance appraisal umpire as defined in s.
  252  626.9964.
  253         Section 8. Subsection (1) of section 626.016, Florida
  254  Statutes, is amended to read:
  255         626.016 Powers and duties of department, commission, and
  256  office.—
  257         (1) The powers and duties of the Chief Financial Officer
  258  and the department specified in this part apply only with
  259  respect to insurance agents, insurance agencies, managing
  260  general agents, insurance adjusters, umpires, reinsurance
  261  intermediaries, viatical settlement brokers, customer
  262  representatives, service representatives, and agencies.
  263         Section 9. Subsection (1) of section 626.022, Florida
  264  Statutes, is amended to read:
  265         626.022 Scope of part.—
  266         (1) This part applies as to insurance agents, service
  267  representatives, adjusters, umpires, and insurance agencies; as
  268  to any and all kinds of insurance; and as to stock insurers,
  269  mutual insurers, reciprocal insurers, and all other types of
  270  insurers, except that:
  271         (a) It does not apply as to reinsurance, except that ss.
  272  626.011-626.022, ss. 626.112-626.181, ss. 626.191-626.211, ss.
  273  626.291-626.301, s. 626.331, ss. 626.342-626.521, ss. 626.541
  274  626.591, and ss. 626.601-626.711 shall apply as to reinsurance
  275  intermediaries as defined in s. 626.7492.
  276         (b) The applicability of this chapter as to fraternal
  277  benefit societies shall be as provided in chapter 632.
  278         (c) It does not apply to a bail bond agent, as defined in
  279  s. 648.25, except as provided in chapter 648 or chapter 903.
  280         (d) This part does not apply to a certified public
  281  accountant licensed under chapter 473 who is acting within the
  282  scope of the practice of public accounting, as defined in s.
  283  473.302, provided that the activities of the certified public
  284  accountant are limited to advising a client of the necessity of
  285  obtaining insurance, the amount of insurance needed, or the line
  286  of coverage needed, and provided that the certified public
  287  accountant does not directly or indirectly receive or share in
  288  any commission or referral fee.
  289         Section 10. Section 626.112, Florida Statutes, is amended
  290  to read:
  291         626.112 License and appointment required; agents, customer
  292  representatives, adjusters, umpires, insurance agencies, service
  293  representatives, managing general agents.—
  294         (1)(a) No person may be, act as, or advertise or hold
  295  himself or herself out to be an insurance agent, insurance
  296  adjuster, or customer representative unless he or she is
  297  currently licensed by the department and appointed by an
  298  appropriate appointing entity or person.
  299         (b) Except as provided in subsection (9) (6) or in
  300  applicable department rules, and in addition to other conduct
  301  described in this chapter with respect to particular types of
  302  agents, a license as an insurance agent, service representative,
  303  customer representative, or limited customer representative is
  304  required in order to engage in the solicitation of insurance.
  305  For purposes of this requirement, as applicable to any of the
  306  license types described in this section, the solicitation of
  307  insurance is the attempt to persuade any person to purchase an
  308  insurance product by:
  309         1. Describing the benefits or terms of insurance coverage,
  310  including premiums or rates of return;
  311         2. Distributing an invitation to contract to prospective
  312  purchasers;
  313         3. Making general or specific recommendations as to
  314  insurance products;
  315         4. Completing orders or applications for insurance
  316  products;
  317         5. Comparing insurance products, advising as to insurance
  318  matters, or interpreting policies or coverages; or
  319         6. Offering or attempting to negotiate on behalf of another
  320  person a viatical settlement contract as defined in s. 626.9911.
  321  
  322  However, an employee leasing company licensed pursuant to
  323  chapter 468 which is seeking to enter into a contract with an
  324  employer that identifies products and services offered to
  325  employees may deliver proposals for the purchase of employee
  326  leasing services to prospective clients of the employee leasing
  327  company setting forth the terms and conditions of doing
  328  business; classify employees as permitted by s. 468.529; collect
  329  information from prospective clients and other sources as
  330  necessary to perform due diligence on the prospective client and
  331  to prepare a proposal for services; provide and receive
  332  enrollment forms, plans, and other documents; and discuss or
  333  explain in general terms the conditions, limitations, options,
  334  or exclusions of insurance benefit plans available to the client
  335  or employees of the employee leasing company were the client to
  336  contract with the employee leasing company. Any advertising
  337  materials or other documents describing specific insurance
  338  coverages must identify and be from a licensed insurer or its
  339  licensed agent or a licensed and appointed agent employed by the
  340  employee leasing company. The employee leasing company may not
  341  advise or inform the prospective business client or individual
  342  employees of specific coverage provisions, exclusions, or
  343  limitations of particular plans. As to clients for which the
  344  employee leasing company is providing services pursuant to s.
  345  468.525(4), the employee leasing company may engage in
  346  activities permitted by ss. 626.7315, 626.7845, and 626.8305,
  347  subject to the restrictions specified in those sections. If a
  348  prospective client requests more specific information concerning
  349  the insurance provided by the employee leasing company, the
  350  employee leasing company must refer the prospective business
  351  client to the insurer or its licensed agent or to a licensed and
  352  appointed agent employed by the employee leasing company.
  353         (2) No agent or customer representative shall solicit or
  354  otherwise transact as agent or customer representative, or
  355  represent or hold himself or herself out to be an agent or
  356  customer representative as to, any kind or kinds of insurance as
  357  to which he or she is not then licensed and appointed.
  358         (3) No person shall act as an adjuster as to any class of
  359  business for which he or she is not then licensed and appointed.
  360         (4) No person shall be, act as, or represent or hold
  361  himself or herself out to be a service representative unless he
  362  or she then holds a currently effective service representative
  363  license and appointment. This subsection does not apply as to
  364  similar representatives or employees of casualty insurers whose
  365  duties are restricted to health insurance.
  366         (5) No person shall be, act as, or represent or hold
  367  himself or herself out to be a managing general agent unless he
  368  or she then holds a currently effective managing general agent
  369  license and appointment.
  370         (6) No person shall be, act as, or represent or hold
  371  himself or herself out to be a property insurance appraisal
  372  umpire unless he or she holds a currently effective license and
  373  appointment as a property insurance appraisal umpire. Retired
  374  county, circuit, or appellate judges who are members in good
  375  standing with The Florida Bar are not required to obtain the
  376  license required by this subsection.
  377         (7) No person shall be, act as, or represent or hold
  378  himself or herself out to be a property insurance appraiser who
  379  is eligible to represent an insured on a personal residential or
  380  commercial residential property insurance claim unless he or she
  381  holds a currently effective license as an adjuster or is exempt
  382  from licensure under s. 626.860. Only a self-appointed insurance
  383  adjuster may serve as an appraiser.
  384         (8)A person who is disqualified under s. 626.207 or has
  385  been convicted of a felony or a crime punishable by imprisonment
  386  of 1 year or more under the law of the United States or of any
  387  state thereof or under the law of any other country, or
  388  dishonorably discharged from any of the Armed Forces of the
  389  United States may not act or serve as a property insurance
  390  appraisal umpire or a property insurance appraiser. For purposes
  391  of this subsection, “convicted” means a finding of guilt or the
  392  acceptance of a plea of guilty or nolo contendere, in any
  393  federal or state court or a court in any other country, without
  394  regard to whether a judgment of conviction has been entered by
  395  the court having jurisdiction of the case.
  396         (9)(6) An individual employed by a life or health insurer
  397  as an officer or other salaried representative may solicit and
  398  effect contracts of life insurance or annuities or of health
  399  insurance, without being licensed as an agent, when and only
  400  when he or she is accompanied by and solicits for and on the
  401  behalf of a licensed and appointed agent.
  402         (10)(a)(7)(a) An individual, firm, partnership,
  403  corporation, association, or other entity shall not act in its
  404  own name or under a trade name, directly or indirectly, as an
  405  insurance agency unless it complies with s. 626.172 with respect
  406  to possessing an insurance agency license for each place of
  407  business at which it engages in an activity that may be
  408  performed only by a licensed insurance agent. However, an
  409  insurance agency that is owned and operated by a single licensed
  410  agent conducting business in his or her individual name and not
  411  employing or otherwise using the services of or appointing other
  412  licensees shall be exempt from the agency licensing requirements
  413  of this subsection.
  414         (b) A branch place of business that is established by a
  415  licensed agency is considered a branch agency and is not
  416  required to be licensed so long as it transacts business under
  417  the same name and federal tax identification number as the
  418  licensed agency and has designated with the department a
  419  licensed agent in charge of the branch location as required by
  420  s. 626.0428 and the address and telephone number of the branch
  421  location have been submitted to the department for inclusion in
  422  the licensing record of the licensed agency within 30 days after
  423  insurance transactions begin at the branch location.
  424         (c) If an agency is required to be licensed but fails to
  425  file an application for licensure in accordance with this
  426  section, the department shall impose on the agency an
  427  administrative penalty of up to $10,000.
  428         (d) Effective October 1, 2015, the department must
  429  automatically convert the registration of an approved registered
  430  insurance agency to an insurance agency license.
  431         (11)(8) No insurance agent, insurance agency, or other
  432  person licensed under the Insurance Code may pay any fee or
  433  other consideration to an unlicensed person other than an
  434  insurance agency for the referral of prospective purchasers to
  435  an insurance agent which is in any way dependent upon whether
  436  the referral results in the purchase of an insurance product.
  437         (12)(9) Any person who knowingly transacts insurance or
  438  otherwise engages in insurance activities in this state without
  439  a license in violation of this section commits a felony of the
  440  third degree, punishable as provided in s. 775.082, s. 775.083,
  441  or s. 775.084.
  442         Section 11. Subsections (1) and (4) of section 626.171,
  443  Florida Statutes, are amended to read:
  444         626.171 Application for license as an agent, customer
  445  representative, adjuster, umpire, service representative,
  446  managing general agent, or reinsurance intermediary.—
  447         (1) The department may not issue a license as agent,
  448  customer representative, adjuster, umpire, service
  449  representative, managing general agent, or reinsurance
  450  intermediary to any person except upon written application filed
  451  with the department, meeting the qualifications for the license
  452  applied for as determined by the department, and payment in
  453  advance of all applicable fees. The application must be made
  454  under the oath of the applicant and be signed by the applicant.
  455  An applicant may permit a third party to complete, submit, and
  456  sign an application on the applicant’s behalf, but is
  457  responsible for ensuring that the information on the application
  458  is true and correct and is accountable for any misstatements or
  459  misrepresentations. The department shall accept the uniform
  460  application for nonresident agent licensing. The department may
  461  adopt revised versions of the uniform application by rule.
  462         (4) An applicant for a license as an agent, customer
  463  representative, adjuster, umpire, service representative,
  464  managing general agent, or reinsurance intermediary must submit
  465  a set of the individual applicant’s fingerprints, or, if the
  466  applicant is not an individual, a set of the fingerprints of the
  467  sole proprietor, majority owner, partners, officers, and
  468  directors, to the department and must pay the fingerprint
  469  processing fee set forth in s. 624.501. Fingerprints shall be
  470  used to investigate the applicant’s qualifications pursuant to
  471  s. 626.201. The fingerprints shall be taken by a law enforcement
  472  agency, designated examination center, or other department
  473  approved entity. The department shall require all designated
  474  examination centers to have fingerprinting equipment and to take
  475  fingerprints from any applicant or prospective applicant who
  476  pays the applicable fee. The department may not approve an
  477  application for licensure as an agent, customer service
  478  representative, adjuster, umpire, service representative,
  479  managing general agent, or reinsurance intermediary if
  480  fingerprints have not been submitted.
  481         Section 12. Subsection (9) of section 626.207, Florida
  482  Statutes, is amended to read:
  483         626.207 Disqualification of applicants and licensees;
  484  penalties against licensees; rulemaking authority.—
  485         (9) Section 112.011 does not apply to any applicants for
  486  licensure under the Florida Insurance Code, including, but not
  487  limited to, agents, agencies, adjusters, adjusting firms,
  488  umpires, customer representatives, or managing general agents.
  489         Section 13. Subsections (1) and (2) of section 626.2815,
  490  Florida Statutes, are amended to read:
  491         626.2815 Continuing education requirements.—
  492         (1) The purpose of this section is to establish
  493  requirements and standards for continuing education courses for
  494  individuals licensed to solicit, sell, or adjust insurance or to
  495  serve as an umpire in the state.
  496         (2) Except as otherwise provided in this section, this
  497  section applies to individuals licensed to transact engage in
  498  the sale of insurance or adjust adjustment of insurance claims
  499  in this state for all lines of insurance for which an
  500  examination is required for licensing and to individuals
  501  licensed to serve as an umpire each insurer, employer, or
  502  appointing entity, including, but not limited to, those created
  503  or existing pursuant to s. 627.351. This section does not apply
  504  to an individual who holds a license for the sale of any line of
  505  insurance for which an examination is not required by the laws
  506  of this state or who holds a limited license as a crop or hail
  507  and multiple-peril crop insurance agent. Licensees who are
  508  unable to comply with the continuing education requirements due
  509  to active duty in the military may submit a written request for
  510  a waiver to the department.
  511         Section 14. Subsections (1), (3), (5), and (6) of section
  512  626.451, Florida Statutes, are amended to read:
  513         626.451 Appointment of agent or other representative.—
  514         (1) Each appointing entity or person designated by the
  515  department to administer the appointment process appointing an
  516  agent, adjuster, umpire, service representative, customer
  517  representative, or managing general agent in this state shall
  518  file the appointment with the department or office and, at the
  519  same time, pay the applicable appointment fee and taxes. Every
  520  appointment shall be subject to the prior issuance of the
  521  appropriate agent’s, adjuster’s, umpire’s, service
  522  representative’s, customer representative’s, or managing general
  523  agent’s license.
  524         (3) By authorizing the effectuation of the appointment of
  525  an agent, adjuster, umpire, service representative, customer
  526  representative, or managing general agent the appointing entity
  527  is thereby certifying to the department that it is willing to be
  528  bound by the acts of the agent, adjuster, umpire, service
  529  representative, customer representative, or managing general
  530  agent, within the scope of the licensee’s employment or
  531  appointment.
  532         (5) Any law enforcement agency or state attorney’s office
  533  that is aware that an agent, adjuster, umpire, service
  534  representative, customer representative, or managing general
  535  agent has pleaded guilty or nolo contendere to or has been found
  536  guilty of a felony shall notify the department or office of such
  537  fact.
  538         (6) Upon the filing of an information or indictment against
  539  an agent, adjuster, umpire, service representative, customer
  540  representative, or managing general agent, the state attorney
  541  shall immediately furnish the department or office a certified
  542  copy of the information or indictment.
  543         Section 15. Section 626.461, Florida Statutes, is amended
  544  to read:
  545         626.461 Continuation of appointment of agent or other
  546  representative.—Subject to renewal or continuation by the
  547  appointing entity, the appointment of the agent, adjuster,
  548  umpire, service representative, customer representative, or
  549  managing general agent shall continue in effect until the
  550  person’s license is revoked or otherwise terminated, unless
  551  written notice of earlier termination of the appointment is
  552  filed with the department or person designated by the department
  553  to administer the appointment process by either the appointing
  554  entity or the appointee.
  555         Section 16. Subsection (3) of section 626.521, Florida
  556  Statutes, is amended to read:
  557         626.521 Character, credit reports.—
  558         (3) As to an applicant for an adjuster’s, umpire’s, or
  559  reinsurance intermediary’s license who is to be self-employed,
  560  the department may secure, at the cost of the applicant, a full
  561  detailed credit and character report made by an established and
  562  reputable independent reporting service relative to the
  563  applicant.
  564         Section 17. Subsection (1) of section 626.541, Florida
  565  Statutes, is amended to read:
  566         626.541 Firm, corporate, and business names; officers;
  567  associates; notice of changes.—
  568         (1) Any licensed agent, or adjuster, or umpire doing
  569  business under a firm or corporate name or under any business
  570  name other than his or her own individual name shall, within 30
  571  days after initially transacting the initial transaction of
  572  insurance or engaging in insurance activities under such
  573  business name, file with the department, on forms adopted and
  574  furnished by the department, a written statement of the firm,
  575  corporate, or business name being so used, the address of any
  576  office or offices or places of business making use of such name,
  577  and the name and social security number of each officer and
  578  director of the corporation and of each individual associated in
  579  such firm or corporation as to the insurance transactions
  580  thereof or in the use of such business name.
  581         Section 18. Subsection (1) of section 626.601, Florida
  582  Statutes, is amended to read:
  583         626.601 Improper conduct; inquiry; fingerprinting.—
  584         (1) The department or office may, upon its own motion or
  585  upon a written complaint signed by any interested person and
  586  filed with the department or office, inquire into any alleged
  587  improper conduct of any licensed, approved, or certified
  588  licensee, insurance agency, agent, adjuster, umpire, service
  589  representative, managing general agent, customer representative,
  590  title insurance agent, title insurance agency, mediator, neutral
  591  evaluator, navigator, continuing education course provider,
  592  instructor, school official, or monitor group under this code.
  593  The department or office may thereafter initiate an
  594  investigation of any such individual or entity if it has
  595  reasonable cause to believe that the individual or entity has
  596  violated any provision of the insurance code. During the course
  597  of its investigation, the department or office shall contact the
  598  individual or entity being investigated unless it determines
  599  that contacting such individual or entity could jeopardize the
  600  successful completion of the investigation or cause injury to
  601  the public.
  602         Section 19. Subsection (1) of section 626.611, Florida
  603  Statutes, is amended to read:
  604         626.611 Grounds for compulsory refusal, suspension, or
  605  revocation of agent’s, title agency’s, adjuster’s, umpire’s,
  606  customer representative’s, service representative’s, or managing
  607  general agent’s license or appointment.—
  608         (1) The department shall deny an application for, suspend,
  609  revoke, or refuse to renew or continue the license or
  610  appointment of any applicant, agent, title agency, adjuster,
  611  umpire, customer representative, service representative, or
  612  managing general agent, and it shall suspend or revoke the
  613  eligibility to hold a license or appointment of any such person,
  614  if it finds that as to the applicant, licensee, or appointee any
  615  one or more of the following applicable grounds exist:
  616         (a) Lack of one or more of the qualifications for the
  617  license or appointment as specified in this code.
  618         (b) Material misstatement, misrepresentation, or fraud in
  619  obtaining the license or appointment or in attempting to obtain
  620  the license or appointment.
  621         (c) Failure to pass to the satisfaction of the department
  622  any examination required under this code.
  623         (d) If the license or appointment is willfully used, or to
  624  be used, to circumvent any of the requirements or prohibitions
  625  of this code.
  626         (e) Willful misrepresentation of any insurance policy or
  627  annuity contract or willful deception with regard to any such
  628  policy or contract, done either in person or by any form of
  629  dissemination of information or advertising.
  630         (f) If, as an adjuster, or agent licensed and appointed to
  631  adjust claims under this code, he or she has materially
  632  misrepresented to an insured or other interested party the terms
  633  and coverage of an insurance contract with intent and for the
  634  purpose of effecting settlement of claim for loss or damage or
  635  benefit under such contract on less favorable terms than those
  636  provided in and contemplated by the contract.
  637         (g) Demonstrated lack of fitness or trustworthiness to
  638  engage in the business of insurance.
  639         (h) Demonstrated lack of reasonably adequate knowledge and
  640  technical competence to engage in the transactions authorized by
  641  the license or appointment.
  642         (i) Fraudulent or dishonest practices in the conduct of
  643  business under the license or appointment.
  644         (j) Misappropriation, conversion, or unlawful withholding
  645  of moneys belonging to insurers or insureds or beneficiaries or
  646  to others and received in conduct of business under the license
  647  or appointment.
  648         (k) Unlawfully rebating, attempting to unlawfully rebate,
  649  or unlawfully dividing or offering to divide his or her
  650  commission with another.
  651         (l) Having obtained or attempted to obtain, or having used
  652  or using, a license or appointment as agent or customer
  653  representative for the purpose of soliciting or handling
  654  “controlled business” as defined in s. 626.730 with respect to
  655  general lines agents, s. 626.784 with respect to life agents,
  656  and s. 626.830 with respect to health agents.
  657         (m) Willful failure to comply with, or willful violation
  658  of, any proper order or rule of the department or willful
  659  violation of any provision of this code.
  660         (n) Having been found guilty of or having pleaded guilty or
  661  nolo contendere to a felony or a crime punishable by
  662  imprisonment of 1 year or more under the law of the United
  663  States of America or of any state thereof or under the law of
  664  any other country which involves moral turpitude, without regard
  665  to whether a judgment of conviction has been entered by the
  666  court having jurisdiction of such cases.
  667         (o) Fraudulent or dishonest practice in submitting or
  668  aiding or abetting any person in the submission of an
  669  application for workers’ compensation coverage under chapter 440
  670  containing false or misleading information as to employee
  671  payroll or classification for the purpose of avoiding or
  672  reducing the amount of premium due for such coverage.
  673         (p) Sale of an unregistered security that was required to
  674  be registered, pursuant to chapter 517.
  675         (q) In transactions related to viatical settlement
  676  contracts as defined in s. 626.9911:
  677         1. Commission of a fraudulent or dishonest act.
  678         2. No longer meeting the requirements for initial
  679  licensure.
  680         3. Having received a fee, commission, or other valuable
  681  consideration for his or her services with respect to viatical
  682  settlements that involved unlicensed viatical settlement
  683  providers or persons who offered or attempted to negotiate on
  684  behalf of another person a viatical settlement contract as
  685  defined in s. 626.9911 and who were not licensed life agents.
  686         4. Dealing in bad faith with viators.
  687         Section 20. Section 626.621, Florida Statutes, is amended
  688  to read:
  689         626.621 Grounds for discretionary refusal, suspension, or
  690  revocation of agent’s, adjuster’s, umpire’s, customer
  691  representative’s, service representative’s, or managing general
  692  agent’s license or appointment.—The department may, in its
  693  discretion, deny an application for, suspend, revoke, or refuse
  694  to renew or continue the license or appointment of any
  695  applicant, agent, adjuster, umpire, customer representative,
  696  service representative, or managing general agent, and it may
  697  suspend or revoke the eligibility to hold a license or
  698  appointment of any such person, if it finds that as to the
  699  applicant, licensee, or appointee any one or more of the
  700  following applicable grounds exist under circumstances for which
  701  such denial, suspension, revocation, or refusal is not mandatory
  702  under s. 626.611:
  703         (1) Any cause for which issuance of the license or
  704  appointment could have been refused had it then existed and been
  705  known to the department.
  706         (2) Violation of any provision of this code or of any other
  707  law applicable to the business of insurance in the course of
  708  dealing under the license or appointment.
  709         (3) Violation of any lawful order or rule of the
  710  department, commission, or office.
  711         (4) Failure or refusal, upon demand, to pay over to any
  712  insurer he or she represents or has represented any money coming
  713  into his or her hands belonging to the insurer.
  714         (5) Violation of the provision against twisting, as defined
  715  in s. 626.9541(1)(l).
  716         (6) In the conduct of business under the license or
  717  appointment, engaging in unfair methods of competition or in
  718  unfair or deceptive acts or practices, as prohibited under part
  719  IX of this chapter, or having otherwise shown himself or herself
  720  to be a source of injury or loss to the public.
  721         (7) Willful overinsurance of any property or health
  722  insurance risk.
  723         (8) Having been found guilty of or having pleaded guilty or
  724  nolo contendere to a felony or a crime punishable by
  725  imprisonment of 1 year or more under the law of the United
  726  States of America or of any state thereof or under the law of
  727  any other country, without regard to whether a judgment of
  728  conviction has been entered by the court having jurisdiction of
  729  such cases.
  730         (9) If a life agent, violation of the code of ethics.
  731         (10) Cheating on an examination required for licensure or
  732  violating test center or examination procedures published
  733  orally, in writing, or electronically at the test site by
  734  authorized representatives of the examination program
  735  administrator. Communication of test center and examination
  736  procedures must be clearly established and documented.
  737         (11) Failure to inform the department in writing within 30
  738  days after pleading guilty or nolo contendere to, or being
  739  convicted or found guilty of, any felony or a crime punishable
  740  by imprisonment of 1 year or more under the law of the United
  741  States or of any state thereof, or under the law of any other
  742  country without regard to whether a judgment of conviction has
  743  been entered by the court having jurisdiction of the case.
  744         (12) Knowingly aiding, assisting, procuring, advising, or
  745  abetting any person in the violation of or to violate a
  746  provision of the insurance code or any order or rule of the
  747  department, commission, or office.
  748         (13) Has been the subject of or has had a license, permit,
  749  appointment, registration, or other authority to conduct
  750  business subject to any decision, finding, injunction,
  751  suspension, prohibition, revocation, denial, judgment, final
  752  agency action, or administrative order by any court of competent
  753  jurisdiction, administrative law proceeding, state agency,
  754  federal agency, national securities, commodities, or option
  755  exchange, or national securities, commodities, or option
  756  association involving a violation of any federal or state
  757  securities or commodities law or any rule or regulation adopted
  758  thereunder, or a violation of any rule or regulation of any
  759  national securities, commodities, or options exchange or
  760  national securities, commodities, or options association.
  761         (14) Failure to comply with any civil, criminal, or
  762  administrative action taken by the child support enforcement
  763  program under Title IV-D of the Social Security Act, 42 U.S.C.
  764  ss. 651 et seq., to determine paternity or to establish, modify,
  765  enforce, or collect support.
  766         (15) Directly or indirectly accepting any compensation,
  767  inducement, or reward from an inspector for the referral of the
  768  owner of the inspected property to the inspector or inspection
  769  company. This prohibition applies to an inspection intended for
  770  submission to an insurer in order to obtain property insurance
  771  coverage or establish the applicable property insurance premium.
  772         Section 21. Subsection (4) of section 626.641, Florida
  773  Statutes, is amended to read:
  774         626.641 Duration of suspension or revocation.—
  775         (4) During the period of suspension or revocation of a
  776  license or appointment, and until the license is reinstated or,
  777  if revoked, a new license issued, the former licensee or
  778  appointee may not engage in or attempt or profess to engage in
  779  any transaction or business for which a license or appointment
  780  is required under this code or directly or indirectly own,
  781  control, or be employed in any manner by an agent, agency,
  782  adjuster, or adjusting firm, or umpire.
  783         Section 22. Subsection (2) of section 626.7845, Florida
  784  Statutes, is amended to read:
  785         626.7845 Prohibition against unlicensed transaction of life
  786  insurance.—
  787         (2) Except as provided in s. 626.112(9) 626.112(6), with
  788  respect to any line of authority specified in s. 626.015(10), no
  789  individual shall, unless licensed as a life agent:
  790         (a) Solicit insurance or annuities or procure applications;
  791         (b) In this state, engage or hold himself or herself out as
  792  engaging in the business of analyzing or abstracting insurance
  793  policies or of counseling or advising or giving opinions to
  794  persons relative to insurance or insurance contracts other than:
  795         1. As a consulting actuary advising an insurer; or
  796         2. As to the counseling and advising of labor unions,
  797  associations, trustees, employers, or other business entities,
  798  the subsidiaries and affiliates of each, relative to their
  799  interests and those of their members or employees under
  800  insurance benefit plans; or
  801         (c) In this state, from this state, or with a resident of
  802  this state, offer or attempt to negotiate on behalf of another
  803  person a viatical settlement contract as defined in s. 626.9911.
  804         Section 23. Section 626.8305, Florida Statutes, is amended
  805  to read:
  806         626.8305 Prohibition against the unlicensed transaction of
  807  health insurance.—Except as provided in s. 626.112(9)
  808  626.112(6), with respect to any line of authority specified in
  809  s. 626.015(6), no individual shall, unless licensed as a health
  810  agent:
  811         (1) Solicit insurance or procure applications; or
  812         (2) In this state, engage or hold himself or herself out as
  813  engaging in the business of analyzing or abstracting insurance
  814  policies or of counseling or advising or giving opinions to
  815  persons relative to insurance contracts other than:
  816         (a) As a consulting actuary advising insurers; or
  817         (b) As to the counseling and advising of labor unions,
  818  associations, trustees, employers, or other business entities,
  819  the subsidiaries and affiliates of each, relative to their
  820  interests and those of their members or employees under
  821  insurance benefit plans.
  822         Section 24. Paragraph (a) of subsection (2) of section
  823  626.8411, Florida Statutes, is amended to read:
  824         626.8411 Application of Florida Insurance Code provisions
  825  to title insurance agents or agencies.—
  826         (2) The following provisions of part I do not apply to
  827  title insurance agents or title insurance agencies:
  828         (a) Section 626.112(10) 626.112(7), relating to licensing
  829  of insurance agencies.
  830         Section 25. Subsection (4) of section 626.8443, Florida
  831  Statutes, is amended to read:
  832         626.8443 Duration of suspension or revocation.—
  833         (4) During the period of suspension or after revocation of
  834  the license and appointment, the former licensee shall not
  835  engage in or attempt to profess to engage in any transaction or
  836  business for which a license or appointment is required under
  837  this code or directly or indirectly own, control, or be employed
  838  in any manner by any insurance agent or agency, or adjuster, or
  839  adjusting firm, or umpire.
  840         Section 26. Paragraph (d) is added to subsection (11) of
  841  section 626.854, Florida Statutes, to read:
  842         626.854 “Public adjuster” defined; prohibitions.—The
  843  Legislature finds that it is necessary for the protection of the
  844  public to regulate public insurance adjusters and to prevent the
  845  unauthorized practice of law.
  846         (11)
  847         (d) If a public adjuster enters into a contract with an
  848  insured or a claimant to perform an appraisal, as defined in s.
  849  626.9964, the public adjuster may not charge, agree to, or
  850  accept from any source compensation, payment, commission, fee,
  851  or any other thing of value in excess of the limitations set
  852  forth in paragraph (b) for the appraisal services or, if also
  853  serving as adjuster on the claim, a combination of adjuster and
  854  appraisal services.
  855         Section 27. Section 626.8791, Florida Statutes, is created
  856  to read:
  857         626.8791 Contracts for appraisal services; required
  858  notice.—A contract between an adjuster and an insured or
  859  claimant to perform an appraisal must contain the following
  860  language in at least 14-point boldfaced, uppercase type: “THERE
  861  IS NO LEGAL REQUIREMENT THAT AN APPRAISER CHARGE A CLIENT A SET
  862  FEE OR A PERCENTAGE OF MONEY RECOVERED IN A CASE. YOU, THE
  863  CLIENT, HAVE THE RIGHT TO TALK WITH YOUR APPRAISER ABOUT THE
  864  PROPOSED FEE AND TO BARGAIN ABOUT THE RATE OR PERCENTAGE AS IN
  865  ANY OTHER CONTRACT. IF YOU DO NOT REACH AN AGREEMENT WITH ONE
  866  APPRAISER, YOU MAY TALK WITH OTHER APPRAISERS.”
  867         Section 28. Subsection (1) of section 626.9957, Florida
  868  Statutes, is amended to read:
  869         626.9957 Conduct prohibited; denial, revocation, or
  870  suspension of registration.—
  871         (1) As provided in s. 626.112, only a person licensed as an
  872  insurance agent or customer representative may engage in the
  873  solicitation of insurance. A person who engages in the
  874  solicitation of insurance as described in s. 626.112(1) without
  875  such license is subject to the penalties provided under s.
  876  626.112(12) 626.112(9).
  877         Section 29. Part XIV of chapter 626, Florida Statutes,
  878  consisting of sections 626.9961 through 626.9968, is created to
  879  read:
  880                              PART XIV                             
  881                PROPERTY INSURANCE APPRAISAL UMPIRES               
  882         626.9961 Short title.—This part may be referred to as the
  883  “Property Insurance Appraisal Umpire Law.”
  884         626.9962 Legislative findings.—The Legislature finds it
  885  necessary to regulate persons that hold themselves out to the
  886  public as qualified to provide services as property insurance
  887  appraisal umpires in order to protect the public safety and
  888  welfare and to avoid economic injury to the residents of this
  889  state. This part applies only to property insurance appraisal
  890  umpires as defined in this part.
  891         626.9963 Part supplements licensing law.—This part is
  892  supplementary to part I, the “Licensing Procedures Law.”
  893         626.9964 Definitions.—As used in this part, the term:
  894         (1) “Appraisal” means, for purposes of licensure under this
  895  part only, a process of alternative dispute resolution used in a
  896  personal residential or commercial residential property
  897  insurance claim.
  898         (2) “Competent” means sufficiently qualified and capable of
  899  performing an appraisal.
  900         (3) “Department” means the Department of Financial
  901  Services.
  902         (4) “Property insurance appraisal umpire” or “umpire” means
  903  a person selected by the appraisers representing the insurer and
  904  the insured, or, if the appraisers cannot agree, by the court,
  905  who is charged with resolving issues that the appraisers are
  906  unable to agree upon during the course of an appraisal.
  907         (5) “Property insurance appraiser” or “appraiser” means the
  908  person selected by an insurer or insured to perform an
  909  appraisal.
  910         626.9965 Qualification for license as a property insurance
  911  appraisal umpire.—
  912         (1) The department shall issue a license as an umpire to a
  913  person who meets the requirements of subsection (2) and is one
  914  of the following:
  915         (a) Licensed as an engineer pursuant to chapter 471 or is a
  916  retired professional engineer as defined in s. 471.005.
  917         (b) Licensed as a general contractor, a building
  918  contractor, or a residential contractor pursuant to part I of
  919  chapter 489.
  920         (c) Licensed or registered as an architect to engage in the
  921  practice of architecture pursuant to part I of chapter 481.
  922         (d) A member of The Florida Bar.
  923         (e) Licensed as an adjuster pursuant to part VI of chapter
  924  626, which license includes the property and casualty lines of
  925  insurance. An adjuster must have been licensed for at least 5
  926  years as an adjuster before he or she may be licensed as an
  927  umpire.
  928         (2) An applicant may be licensed to practice in this state
  929  as an umpire if the applicant:
  930         (a) Is a natural person at least 18 years of age;
  931         (b) Is a United States citizen or legal alien who possesses
  932  work authorization from the United States Bureau of Citizenship
  933  and Immigration;
  934         (c) Is of good moral character;
  935         (d) Has paid the applicable fees specified in s. 624.501;
  936  and
  937         (e) Has, before the date of the application for licensure,
  938  satisfactorily completed education courses approved by the
  939  department covering:
  940         1.At least 19 hours of insurance claims estimating; and
  941         2. At least 5 hours of insurance law, ethics for insurance
  942  professionals, disciplinary trends, and case studies.
  943  
  944  A retired county, circuit, or appellate judge is exempt from the
  945  continuing education requirements in s. 626.2815 and this
  946  subsection.
  947         (3) The department may not reject an application solely
  948  because the applicant is or is not a member of a given appraisal
  949  organization.
  950         626.9966 Grounds for refusal, suspension, or revocation of
  951  an umpire license or appointment.—The department may deny an
  952  application for license or appointment under this part; suspend,
  953  revoke, or refuse to renew or continue a license or appointment
  954  of an umpire; or suspend or revoke eligibility for licensure or
  955  appointment as an umpire if the department finds that one or
  956  more of the following applicable grounds exist:
  957         (1) Violating a duty imposed upon him or her by law or by
  958  the terms of the umpire agreement; aiding, assisting, or
  959  conspiring with any other person engaged in any such misconduct
  960  and in furtherance thereof; or forming the intent, design, or
  961  scheme to engage in such misconduct and committing an overt act
  962  in furtherance of such intent, design, or scheme. An umpire
  963  commits a violation of this part regardless of whether the
  964  victim or intended victim of the misconduct has sustained any
  965  damage or loss; the damage or loss has been settled and paid
  966  after the discovery of misconduct; or the victim or intended
  967  victim is an insurer or customer or a person in a confidential
  968  relationship with the umpire or is an identified member of the
  969  general public.
  970         (2) Having a registration, license, or certification to
  971  practice or conduct any regulated profession, business, or
  972  vocation revoked, suspended, or encumbered; or having an
  973  application for such registration, licensure, or certification
  974  to practice or conduct any regulated profession, business, or
  975  vocation denied, by this or any other state, any nation, or any
  976  possession or district of the United States.
  977         (3) Making or filing a report or record, written or oral,
  978  which the umpire knows to be false; willfully failing to file a
  979  report or record required by state or federal law; willfully
  980  impeding or obstructing such filing; or inducing another person
  981  to impede or obstruct such filing.
  982         (4) Agreeing to serve as an umpire if service is contingent
  983  upon the umpire reporting a predetermined amount, analysis, or
  984  opinion.
  985         (5) Agreeing to serve as an umpire, if the fee to be paid
  986  for his or her services is contingent upon the opinion,
  987  conclusion, or valuation he or she reaches.
  988         (6) Failure of an umpire, without good cause, to
  989  communicate within 10 business days after a request for
  990  communication from an appraiser.
  991         (7) Violation of any ethical standard for umpires specified
  992  in s. 626.9967.
  993         626.9967 Ethical standards for property insurance appraisal
  994  umpires.—
  995         (1) FEES AND EXPENSES.—
  996         (a) The fees charged by an umpire must be reasonable and
  997  consistent with the nature of the case.
  998         (b) In determining fees, an umpire:
  999         1. Must charge on an hourly basis and may bill only for
 1000  actual time spent on or allocated for the appraisal.
 1001         2. May not charge, agree to, or accept as compensation or
 1002  reimbursement any payment, commission, or fee that is based on a
 1003  percentage of the value of the claim or that is contingent upon
 1004  a specified outcome.
 1005         3. May charge for costs actually incurred, and no other
 1006  costs.
 1007         4. May not charge more than $500 if the amount reported by
 1008  the appraiser for the insurer or by the appraiser for the
 1009  insured does not exceed $2,500.
 1010         (c) An appraiser may assign the duty of paying the umpire’s
 1011  fee to, and the umpire is entitled to receive payment directly
 1012  from, the insurer and the insured only if the insurer and the
 1013  insured acknowledge and accept that duty and agree in writing to
 1014  be responsible for payment.
 1015         (2) MAINTENANCE OF RECORDS.—An umpire shall maintain
 1016  records necessary to support charges for services and expenses,
 1017  and, upon request, shall provide an accounting of all applicable
 1018  charges to the insurer and insured. An umpire shall retain
 1019  original or true copies of any contracts engaging his or her
 1020  services, appraisal reports, and supporting data assembled and
 1021  formulated by the umpire in preparing appraisal reports for at
 1022  least 5 years. The umpire shall make the records available to
 1023  the department for inspection and copying within 7 business days
 1024  after a request. If an appraisal has been the subject of, or has
 1025  been admitted as evidence in, a lawsuit, reports and records
 1026  related to the appraisal must be retained for at least 2 years
 1027  after the date that the trial ends.
 1028         (3) ADVERTISING.—An umpire may not engage in marketing
 1029  practices that contain false or misleading information. An
 1030  umpire shall ensure that any advertisement of his or her
 1031  qualifications, services to be rendered, or the appraisal
 1032  process are accurate and honest. An umpire may not make claims
 1033  of achieving specific outcomes or promises implying favoritism
 1034  for the purpose of obtaining business.
 1035         (4) INTEGRITY AND IMPARTIALITY.—
 1036         (a)1. An umpire may not accept an appraisal unless he or
 1037  she can serve competently, promptly commence the appraisal and,
 1038  thereafter, devote the time and attention to its completion in
 1039  the manner expected by all persons involved in the appraisal.
 1040         2. An umpire shall conduct the appraisal process in a
 1041  manner that advances the fair and efficient resolution of issues
 1042  that arise.
 1043         3. An umpire shall deliberate and decide all issues within
 1044  the scope of the appraisal, but may not render a decision on any
 1045  other issues. An umpire shall decide all matters justly,
 1046  exercising independent judgment. An umpire may not delegate his
 1047  or her duties to any other person. An umpire who considers the
 1048  opinion of an expert does not violate this paragraph. However,
 1049  the umpire must disclose the expert’s fees before retaining the
 1050  expert.
 1051         (b) An umpire may not engage in any business, provide any
 1052  service, or perform any act that would compromise his or her
 1053  integrity or impartiality.
 1054         (5) SKILL AND EXPERIENCE.—An umpire shall decline or
 1055  withdraw from an appraisal or request appropriate assistance
 1056  when the facts and circumstances of the appraisal prove to be
 1057  beyond his or her skill or experience.
 1058         (6) GIFTS AND SOLICITATION.—An umpire or any individual or
 1059  entity acting on behalf of an umpire may not solicit, accept,
 1060  give, or offer to give, directly or indirectly, any gift, favor,
 1061  loan, or other item of value in excess of $25 to any individual
 1062  who participates in the appraisal, for the purpose of
 1063  solicitation or otherwise attempting to procure future work from
 1064  any person who participates in the appraisal, or as an
 1065  inducement to entering into an appraisal with an umpire. This
 1066  subsection does not prevent an umpire from accepting other
 1067  appraisals where the appraisers agree upon the umpire or the
 1068  court appoints the umpire.
 1069         (7) EX PARTE COMMUNICATION.—In any property insurance
 1070  appraisal, ex parte communication between an umpire and an
 1071  appraiser is prohibited. However, an appraiser may communicate
 1072  with another appraiser, if an umpire is not present or does not
 1073  receive the ex parte communication.
 1074         626.9968 Conflicts of interest.—An insurer or a
 1075  policyholder may challenge an umpire’s impartiality and
 1076  disqualify the proposed umpire only if:
 1077         (1) A familial relationship within the third degree exists
 1078  between the umpire and a party or a representative of a party;
 1079         (2) The umpire has previously represented a party in a
 1080  professional capacity in the same claim or matter involving the
 1081  same property;
 1082         (3) The umpire has represented another person in a
 1083  professional capacity in the same or a substantially related
 1084  matter that includes the claim, the same property or an adjacent
 1085  property, and the other person’s interests are materially
 1086  adverse to the interests of a party;
 1087         (4) The umpire has worked as an employer or employee of a
 1088  party within the preceding 5 years; or
 1089         (5) The umpire has violated s. 626.9966.
 1090         Section 30. Section 627.70151, Florida Statutes, is
 1091  repealed.
 1092         Section 31. For the 2016-2017 fiscal year, the sums of
 1093  $24,000 in recurring funds from the Insurance Regulatory Trust
 1094  Fund and $73,107 in recurring funds and $39,230 in nonrecurring
 1095  funds from the Administrative Trust Fund are appropriated to the
 1096  Department of Financial Services, and one full-time equivalent
 1097  position with associated salary rate of 47,291 is authorized,
 1098  for the purpose of implementing this act.
 1099         Section 32. This act applies to all appraisals requested on
 1100  or after October 1, 2016.
 1101         Section 33. This act shall take effect October 1, 2016.

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