Bill Text: FL S1222 | 2015 | Regular Session | Comm Sub


Bill Title: Division of Insurance Agent and Agency Services

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Introduced - Dead) 2015-04-23 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1133 (Ch. 2015-180) [S1222 Detail]

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

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