Meeting Notice — Insurance & Banking Subcommittee, House of Representatives (January 28, 2020)

Summary

A meeting packet for the Insurance & Banking Subcommittee, Tuesday, January 28, 2020, 3:30 pm to 6:30 pm, with Byron Donalds as Chair. The notice and agenda list PCS for HB 895 Insurance, HB 723 Peer-to-Peer Car Sharing, HB 1211 Reinsurance and HB 1439 Bank Property of Deceased Account Holders, among others. The staff analysis states that PCS for HB 895 creates a task force on implementation of a motor vehicle insurance online verification system, which the Department of Highway Safety & Motor Vehicles must create by July 1, 2023. The packet also contains amendment text for HB 1439 on distribution of a decedent's assets by affidavit.

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“Meeting Notice — Insurance & Banking Subcommittee, House of Representatives (January 28, 2020).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-01-28-3013-insurance-banking-subcommittee-meeting-packets-fn-ibs-0c07352e26/, SHA-256 0cc154f3fd8da0f63dfb5536d2c7b7b9ddc8ca9b5611670e01f56e1d7c156b85.

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Insurance & Banking
Subcommittee

Tuesday, January 28, 2020
3:30 pm - 6:30 pm
Sumner Hall (404 HOB)

Jose Oliva Byron Donalds
Speaker Chair
Committee Meeting Notice
HOUSE OF REPRESENTATIVES

Insurance & Banking Subcommittee

Start Date and Time: Tuesday, January 28, 2020 03:30 pm

End Date and Time: Tuesday, January 28, 2020 06:30 pm

Location: Sumner Hall (404 HOB)
Duration: 3.00 hrs

Consideration of the following bill(s) with proposed committee substitute(s):

PCS for HB 895 -- Insurance

Consideration of the following bill(s):

HB 723 Peer-to-Peer Car Sharing by Fischer
HB 1137 Consumer Protection by Clemons
HB 1211 Reinsurance by Jones
HB 1409 Pub. Rec./Records of Insurers/Department of Financial Services by Grant, M.
HB 1439 Bank Property of Deceased Account Holders by Yarborough

Pursuant to rule 7.11, the deadline for amendments to bills on the agenda by non-appointed members shall
be 6:00 p.m., Monday, January 27, 2020.

By Request of Chair Donalds, all Insurance & Banking Subcommittee members are asked to have
amendments to bills on the agenda submitted to staff by 6:00 p.m., Monday, January 27, 2020.

NOTICE FINALIZED on 01/24/2020 4:13PM by Harrell.Lindsey

01/24/2020 4:13:43PM Leagis ® Page 1 of 1
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee

Jose R. Oliva Byron Donalds
Speaker Chair

AGENDA
January 28, 2020
404 House Office Building
3:30 PM - 6:30 PM

I. Call to Order & Roll Call

II. Consideration of the following bills:

A PCS for HB 895 Insurance by Santiago
8. HB 723 Peer-to-Peer Car Sharing by Fischer

C. HB 1137 Consumer Protection by Clemons

D. HB 1211 Reinsurance by Jones

E. HB 1409 Pub. Rec./Records of Insurers/Department of Financial Services by Grant, M.

F. HB 1439 Bank Property of Deceased Account Holders by Yarborough

Ill. Adjournment

303 House Office Building, 402 South Monroe Street, Tallahassee, Florida 32399-1300
(850) 717-4871 Fax: (850) 413-0419
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: PCS for HB 895 Insurance
SPONSOR(S): Insurance & Banking Subcommittee
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

Orig. Comm.: Insurance & Banking Subcommittee Lloyd • ,. 1 Cooper

SUMMARY ANALYSIS
Hurricane Catastrophe Fund - The Florida Hurricane Catastrophe Fund, which is a state created tax-exempt
trust fund that acts a reinsurer to the Florida property insurance market, reimburses insurers for collateral
protection insurance insurers must place on indebted properties when the owner's insurance policy has lapsed.
This "force placed" insurance can differ in value from the value of the insurance the owner had purchased. The
bill allows insurers to recover the value of the "force placed" insurance, as an alternative to the last reported
value associated with the property owner's lapsed insurance policy, which is the current standard.
Motor Vehicle Insurance -
• Personal injury protection and property damage coverage are required to register a vehicle and bodily
injury coverage is required when an accident occurs. Law enforcement does not have real time access
to verify motor vehicle insurance. The bill requires the Department of Highway Safety & Motor Vehicles
to create the motor vehicle insurance online verification system by July 1, 2023. It also creates a task
force to assist, review, and report on the implementation of the system.
• Currently, an insurer is only required to collect one month's premium at the inception of a motor vehicle
insurance policy; prior to July 2019, this was two month's premium. The insurer is prohibited from
cancelling the policy in the first 60 days, unless the initial payment fails. The bill reduces the
cancellation prohibition from 60 days to 30 days.
Travel Insurance - Travel insurance is a limited line of insurance. There are few requirements in the Florida
Insurance Code specifically regulating travel insurance. Using the Travel Insurance Model Act, from the
National Association of Insurance Commissioners, the bill expands the Florida Insurance Code to include a
new chapter of statutes to regulate the transaction of travel insurance. The Model Act is generally consistent
with Florida's current regulation of travel insurance, but there are some differences.
Surplus Lines Agent Affidavits - Surplus lines agents must obtain coverage rejections from Florida insurers
before "exporting" a policy to a surplus lines insurer. The agent is required to file an affidavit quarterly attesting
to the required coverage rejections. The bill eliminates the required affidavit (the information reported on the
affidavit is otherwise available in electronic data filings).
Workers' Compensation Insurance Reporting Requirements - Workers' compensation insurance carriers
are required to record and report certain loss, expense, and claims experience to aid the Office of Insurance
Regulation in making determinations concerning the adequacy of workers' compensation experience for
ratemaking purposes. Currently, insurers in receivership stop reporting data because they are no longer
members of the rating organization that handles the date reporting. The bill requires insurers in receivership to
continue reporting the required data.
Agent Licensing - To sell a motor vehicle servicing agreement, service warranty agreement, or home
warranty contract, one must be licensed as a salesperson or sales representative, depending on the type of
agreement or contract sold. The bill allows a licensed general lines agent or personal lines agent to sell such
agreements and contracts without a separate salesperson or sales representative license.
The bill has an unknown impact on state and local revenues; a negative impact on state and local
expenditures; and, positive and negative impacts on the private sector.
The bill is effective on July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A EFFECT OF PROPOSED CHANGES:
Hurricane Catastrophe Fund - Collateral Protection Insurance

Background

The Florida Hurricane Catastrophe Fund (FHCF) 1 is a tax-exempt trust fund created by the Legislature
in 1993 as a form of reinsurance for residential property losses. The FHCF is administered by the State
Board of Administration and reimburses property insurers for a selected percentage of hurricane losses
to residential property above the insurer's retention (deductible). As a condition of doing business in
Florida, property insurers are required to enter into reimbursement contracts with FHCF. The purpose
of the FHCF is to protect and advance the state's interest in maintaining insurance capacity in Florida
by providing reimbursements to insurers for a portion of their catastrophic hurricane losses.

The FHCF reimburses its participating insurers for losses on covered policies, subject to limitations. 2
Collateral protection insurance3 is included as a covered policy. 4 It protects both a borrower's and a
lender's financial interest and is covered at the value of the last known policy. Collateral protection
insurance is placed by an insurer when a borrower's policy on the property has lapsed. Sometimes, the
insurer is unable to obtain correct information from the homeowner and places coverage at an amount
other than the amount of the homeowner's lapsed policy. This can create a discrepancy between the
coverage in place and the amount of the homeowner's lapsed policy, which is the value currently
covered by the FHCF.

Effect of the Bill

The bill allows the value of the lender's force-placed collateral protection insurance to be reimbursed as
a covered policy, if the lender has notified the homeowner in writing of the coverage amount and the
homeowner has not requested the insurer to issue a policy for a different amount.

Motor Vehicle Insurance

MOTOR VEHICLE INSURANCE ONLINE VERIFICATION SYSTEM

Background

Chapter 324, F.S., is the Financial Responsibility Law of 1955. 5 The intent of ch. 324, F.S., is to:

[R]ecognize the existing privilege to own or operate a motor vehicle when such vehicles
are used with due consideration for others and their property, and to promote safety and
provide financial security requirements for such owners or operators whose
responsibility it is to recompense others for injury to person or property caused by the
operation of a motor vehicle. Therefore, the law requires that the operator of a motor
vehicle involved in a crash or convicted of certain traffic offenses is required to provide

1
S. 215.555, F.S.
2
S. 215.555(l)(d), F.S.
3
"Collateral protection insurance" means commercial property insurance under which a creditor is the primary beneficiary and policyholder and
which protects or covers an interest of the creditor arising out of a credit transaction secured by real or personal property. Initiation of such coverage
is triggered by the mortgagor's failure to maintain insurance coverage as required by the mortgage or other lending document. Collateral protection
insurance is not residential coverage. S. 624.6085, F.S.
4
S. 215.555(l)(c), F.S.
5
S. 324.251, F.S.
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proof of financial ability to respond for damages in future accidents as a requisite to his
or her future exercise of operating a motor vehicle. 6

Section 316.646, F.S., requires persons required by law to maintain certain motor vehicle insurance
coverage, to possess proof of insurance, and specifies when the person is required to provide proof of
motor vehicle insurance. If a person is cited for violating this requirement and can provide proof of
insurance that was valid and the time of the citation, the clerk of the court may dismiss the case and
may assess a dismissal fee of up to $10. 7

Section 320.02, F.S., requires the registration of motor vehicles. Proof of purchase of personal injury
protection and property damage insurance must be provided in order to register a motor vehicle. If the
registrant is required to purchase bodily injury liability coverage as a result of a conviction of driving
under the influence, then proof of bodily injury liability coverage is also required at that time. 8

Section 324.0221, F.S., requires motor vehicle insurers to notify the Department of Highway Safety &
Motor Vehicles (DHSMV) of cancellations or non renewals of motor vehicle insurance within 10 days
after the processing or effective date of each cancellation or nonrenewal. Furthermore, the statute
requires insurers to notify DHSMV within 10 days of the issuance of new insurance policies from
persons not previously insured by that insurance company. When DHSMV receives a notice of
cancellation from an insurer, DHSMV's system will attempt to verify if additional insurance has been
provided and if the registration for the vehicle is still valid. If no additional insurance is verified for the
registered vehicle after 20 days, the system will create a financial responsibility case on the owner or
registrant's driver license and registration. Five days after the case is created a letter is generated and
submitted to the vehicle owner or registrant notifying him or her that replacement proof of insurance is
required for the registered vehicle. If insurance information is not provided, or the owner or registrant
does not cancel the registration, the owner or registrant's driver license and registration will be
suspended at 12:01 a.m. on the fifteenth day from the date of the postmarked letter. 9

Currently, there is no mechanism in place to determine in real time that a proof of insurance coverage
for the required financial responsibility is valid. The current process requires insurance carriers to report
insurance information so that it can be compared to DHSMV-maintained vehicle registration. Under this
reporting process, any vehicle registrations that are not tied to an insurance record are considered
uninsured. 10

A number of states have implemented online motor vehicle insurance verification programs including
Alabama, 11 Oklahoma, 12 Texas, 13 and Tennessee. 14 Most of the states that have implemented online
motor vehicle verification programs require that the systems generally meet standards developed by
the Insurance Industry Committee on Motor Vehicle Administration (IICMVA). 15

Several states that have instituted motor vehicle insurance verification programs have reported
significant reductions in the number of uninsured motorists. 16

6
S. 324.011, F.S.
7
S. 318.18(2)(b)3., F.S.
8
S. 320.02(5), F.S.
9
S. 322.251(2), F.S.
10
Sees. 324.011, F.S.
11
Alabama Act 2011-688.
12
Okla. Stat. tit. 47, s. 7-600.2.
13
Tex. Transp. Code Ann. ss. 601.053(c) & 601.191.
14
Tenn. Code Ann. ss. 55-12-201-55-12-215.
15
The Insurance Industry Committee on Motor Vehicle Administration (IICMV A) is an all-industry advisory group formed in January 1968 as the
official liaison between the insurance industry and Motor Vehicle Departments in the US and Canada. https://www.iicmva.com/ (last visited Jan. 25,
2020).
16 Alice Holbrook, Are Auto Insurance Verification Programs a Good Idea?, available at https://www.nerdwallet.com/blog/insurance/auto-insurance-

verification-programs-good-idea/ (last visited Jan. 25, 2020).
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Effect of the Bill

Motor Vehicle Insurance Online Verification System

The bill creates s. 324.252, F.S., requiring DHSMV to establish an online verification system for motor
vehicle insurance. The system's goal is to identify uninsured motorists and aid DHSMV in enforcing the
financial responsibility law. The online verification system must:

• Be accessible through the Internet by authorized personnel of DSHMV, the courts, law
enforcement personnel, any other entities authorized by DHSMV, and insurers authorized by
OIR to offer motor vehicle insurance.
• Send requests to insurers for verification of evidence of insurance for motor vehicles registered
in this state via online services established by the insurers in compliance with IICMVA
specifications and standards, with enhancements, additions, and modifications, as DSHMV
requires. However, the enhancements, additions, and modifications may not conflict with, nullify,
or add requirements that are inconsistent with IICMVA specifications or standards.
• Be operational by July 1, 2023. The task force must conduct a pilot program for at least nine
months to test the system before statewide use. The system may not be used in any
enforcement action until successful completion of the pilot program.
• Be available 24 hours a day, except for permitted downtime for system maintenance and other
work, as needed, to verify the insurance status of any vehicle registered in this state through the
insurer's National Association of Insurance Commissioners (NAIC) company code, in
combination with other identifiers such as vehicle identification number, policy number, or other
characteristics or markers as specified by the task force.
• Include appropriate provisions, consistent with industry standards, as specified by the task
force, to secure the system's data against unauthorized access.
• Include a disaster recovery plan to ensure service continuity in the event of a disaster.
• Include information that enables DHSMV to make inquiries of evidence of insurance by using
multiple data elements for greater matching accuracy, specifically the insurer's NAIC company
code, in combination with other identifiers such as vehicle identification number, policy number,
or other characteristics or markers as specified by the task force.
• Include a self-reporting mechanism for insurers with fewer than 2,000 vehicles insured within
this state or for individual entities that are self-insured.

The bill provides DHSMV the following powers and duties:

• Upon advance notice, DHSMV must allow on line services established by an insurer to have
reasonable downtime for system maintenance and other work, as needed. An insurer is not
subject to administrative penalties or disciplinary actions when its online services are not
available under such circumstances or when an outage is unplanned by the insurer and is
reasonably outside its control.
• Upon recommendation of the task force, DHSMV may contract with a private vendor that has
personnel with extensive operational and management experience in the development,
deployment, and operation of insurance online verification systems.
• DSHMV and its private vendor, if any, must each maintain a contact person for the insurers
during the establishment, implementation, and operation of the system.
• DHSMV must maintain a historical record of the system data for 6 months after the date of any
verification request and response.

An insurance company authorized to issue insurance policies for motor vehicles registered in this state:

• Must comply with the verification requirements of motor vehicle insurance for every motor
vehicle insured by that company in this state as required by DSHMV rule.

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• Must maintain policyholder records in order to confirm insurance coverage for six months after
the date of any verification request and response.
• Must cooperate with DHSMV in establishing, implementing, and maintaining the system.
• Is immune from civil liability for good faith efforts to comply with statutory requirements related
to the online verification system. An online verification request or response may not be used as
the basis of a civil action against an insurer.

A law enforcement officer, during a traffic stop or crash investigation, must request information from the
online verification system to establish compliance with ch. 324, F.S., and to verify the current validity of
the policy described on the insurance identification card.

The motor vehicle insurance online verification system does not apply to commercial motor vehicle
coverage. 17 However, insurers of commercial motor vehicles may participate in the online verification
system on a voluntary basis.

The bill amends s. 320.02(5), F.S., providing that upon implementation of the motor vehicle insurance
online verification system, the online verification may be used to verify motor vehicle insurance at the
time of motor vehicle registration.

The bill amends s. 324.0221, F.S., requiring an insurer to transmit weekly, in a DHSMV-prescribed
format, the insurer's records of all active insurance policies 18 to enable DHSMV to identify uninsured
vehicles.

The bill authorizes DHSMV to verify information from an insurer as provided ins. 324.252, F.S. This
does not relieve an insurer from the reporting requirements ins. 324.0221, F.S.

DHSMV may adopt rules to administer the motor vehicle insurance online verification system .

Motor Vehicle Insurance Online Verification Task Force

The bill creates, within DHSMV, the Motor Vehicle Insurance Online Verification Task Force (task
force). The task force must:

• Facilitate the implementation of the motor vehicle insurance online verification system, including
recommending data and cybersecurity processes and protocols.
• Assist in the development of a detailed guide for insurers by providing data fields and other
information necessary for compliance with the online verification system.
• Coordinate a pilot program and conduct the program for at least nine months to test the online
verification system and identify necessary changes to be implemented before statewide use.
• Issue recommendations based on periodic reviews of the online verification system.

The task force consists of nine voting members and one nonvoting member. DHSMV's executive
director, who is a nonvoting member, serves as its chair. The nine voting members must be appointed
by July 31, 2020, as follows:

• Three appointed by DHSMV's executive director, representing the Florida Highway Patrol, the
Division of Motorist Services, and the Information Systems Administration.
• One appointed by the Commissioner of Insurance, representing the Office of Insurance
Regulation (OIR).
• Three appointed by the Chief Financial Officer, representing the motor vehicle insurance
industry, as follows:

17
The bill defines "commercial motor vehicle coverage" as any coverage provided to an insured under a commercial coverage form and rated from a
commercial manual approved by OIR.
18
This is commonly known as the insurance company's "book of business."
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o One member representing the motor vehicle insurer with the largest national market share
as of December 31, 2019.
o One member representing the motor vehicle insurer with the largest Florida market share as
of December 31, 2019.
o One member selected from a list of representatives recommended by the IICMVA.
• One appointed by the Chief Financial Officer, representing the Department of Financial Services
(DFS).
• One appointed by the executive director of the Agency for State Technology, representing the
agency.

By September 30, 2020, the task force must meet to establish procedures for conducting its business,
and electing a vice chair. The task force must meet at the call of the chair, who is responsible for
preparing the agenda for each meeting with the consent of the task force. A majority of the voting
members of the task force constitutes a quorum, and a quorum is necessary for the purpose of voting
on any action or recommendation of the task force. All meetings must be held in Tallahassee.

DSHMV must provide the task force members with administrative and technical support. Task force
members serve without compensation and are not entitled to reimbursement for per diem or travel
expenses.

No later than six months after the pilot program concludes, the task force must issue a report to
DHSMV, the President of the Senate, and the Speaker of the House of Representatives. The report
must evaluate the online verification system's effectiveness in identifying uninsured motorists. The task
force may also make recommendations for system enhancements in the report or at any time before
the task force's completion of its work.

By July 1, 2023, the task force must complete its work and submit its final report evaluating the online
verification system's effectiveness and making recommendations for system enhancements to DHSMV,
the President of the Senate, and the Speaker of the House of Representatives. Upon submission of the
report, the task force expires.

PREPAYMENT OF PREMIUM ON INITIAL POLICY PURCHASE AND CANCELLATION OF POLICIES

Background

Law requires that a policy 19 of private passenger motor vehicle insurance or a binder20 for such a policy
may be initially issued only if, before the effective date of such binder or policy, the insurer or agent has
collected from the insured an amount equal to one month's premium. 21 An insurer, agent, or premium
finance company may not, directly or indirectly, take any action resulting in the insured having paid
from the insured's own funds an amount less than the required one month premium. This applies
without regard to whether the premium is financed by a premium finance company or is paid pursuant
to a periodic payment plan of an insurer or an insurance agent. The statute also provides various
circumstances where this would not apply including policy renewal, coverage to active duty or former
military personnel, and payments by automatic payroll deduction or electronic funds transfer. The
insurer may not cancel the policy during the first 60 days, unless the reason for the cancellation is the
issuance of a check for the premium that is dishonored for any reason or any other type of premium
payment that was subsequently determined to be rejected or invalid. 22

19 Section 627.7295(l)(a), F.S., defines "policy" as a motor vehicle insurance policy that provides personal injury protection coverage, property

damage liability coverage, or both.
20 Section 627. 7295(1 )(b ), F.S., defines "binder" as a binder that provides motor vehicle personal injury protection and property damage liability

coverage.
21 S. 627.7295(7), F.S.
22 S. 627.7295(4), F.S.
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Prior to July 2019, insurers were required to collect two months of premium prior to issuing a private
passenger motor vehicle policy. This was reduced to one month's premium by CS/CS/CS HB 301
(2019). 23 However, the cancellation limitation was not reduced at the same time. Now an insurer is only
required to collect one month's premium, but cannot cancel the policy for 60 days.

Effect of the Bill

The bill reduces the limitation on insurer cancellation from 60 days to 30 days consistent with the 2019
law change that reduced the required collection of initial premium from two month's premium to one
month's premium.

Travel Insurance

Background

The Florida Insurance Code24 generally regulates travel insurance. OIR currently reviews policies
relating to travel insurance, pursuant to s. 626.321 (1 )(c), F.S. DFS is responsible for licensing of
individuals and entities that sell travel insurance. 25

TRAVEL INSURANCE RATES AND FORMS

Policies and certificates of travel insurance may provide coverage for risks incidental to travel, planned
travel, or accommodations while traveling, including, but not limited to, accidental death and
dismemberment of a traveler; trip or event cancellation, interruption, or delay; loss of or damage to
personal effects or travel documents; damages to travel accommodations; baggage delay; emergency
medical travel or evacuation of a traveler; or medical, surgical, and hospital expenses related to an
illness or emergency of a traveler. Such policy or certificate may be issued for longer terms, but each
policy or certificate must be limited to coverage for travel or use of accommodations of no longer than
90 days. 26

A group policy for travel insurance is exempt from filing rates and forms. 27 Currently, a travel insurance
policy that is sold directly from an insurance company to a consumer is required to make annual rate
filings. 28 Regardless of whether a travel insurance rate is required to filed, it may not be excessive,
inadequate, or unfairly discriminatory. 29

TRAVEL INSURANCE AGENT LICENSING

A travel insurance agent or agency license may be issued to only: 30

• A full-time salaried employee of a common carrier or a full-time salaried employee or owner of a
transportation ticket agency and may authorize the sale of such ticket policies only in connection
with the sale of transportation tickets, or to the full-time salaried employee of such an agent. No

23
Ch. 2019-108, Laws of Fla.
24
The Florida Insurance Code is chapters 624-632, 634,635,636,641,642,648, and 651, F.S. S. 624.01, F.S.
25
S. 626.321, F.S. A travel insurance license is a limited license.
26 S. 626.32 l(l)(c), F.S. A policy or certificate providing coverage for air ambulatory services only may exceed the 90 day limit on

travel/accommodation (due to illness or injury, and unforeseeable length of time may pass before return home by air ambulance).
27 Travel insurance is not subject to rate requirements listed ins. 627.062 (2)(a), F.S., ors. 627.062 (2)(f), F.S., as long as it is "issued as a master

group policy with a situs in another state where each certificate holder pays less than $30 in premium for each covered trip and where the insurer has
written less than $1 million in annual written premiums in the travel insurance product in this state during the most recent calendar year." S. 627.062
(3)(d)l.n., F.S.
28
Each rating organization filing rates for, and each insurer writing, any line of property or casualty insurance is required to complete annual filings.
s. 627.0645 (1), F.S.
29
S. 627.062(1), F.S.
30
S. 626.32l(l)(c), F.S.
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such policy shall be for a duration of more than 48 hours or for the duration of a specified one-
way trip or round trip.
• An individual that is:
o The developer of a timeshare plan that is the subject of an approved public offering
statement under ch. 721, F.S.;
o A managing entity operating a timeshare plan approved under ch. 721, F.S.;
o A seller of travel as defined in ch. 559, F.S.;
o A seller of travel as defined in ch. 559, F.S.; or
o A subsidiary or affiliate of any of the entities described above.
• The full-time salaried employee of a licensed general lines agent or to a business entity that
offers motor vehicles for rent or lease if insurance sales activities authorized by the license are
in connection with and incidental to the rental or lease of a motor vehicle.
o A license issued to a business entity that offers motor vehicles for rent or lease
encompasses each office, branch office, employee, authorized representative located at
a designated branch, or place of business making use of the entity's business name in
order to offer, solicit, and sell insurance pursuant to this paragraph
o The application for licensure must list the name, address, and phone number for each
office, branch office, or place of business that is to be covered by the license. The
licensee shall notify the department of the name, address, and phone number of any
new location that is to be covered by the license before the new office, branch office, or
place of business engages in the sale of insurance pursuant to this paragraph. The
licensee must notify the department within 30 days after closing or terminating an office,
branch office, or place of business. Upon receipt of the notice, the department shall
delete the office, branch office, or place of business from the license.
o A licensed and appointed entity is directly responsible and accountable for all acts of the
licensee's employees.

The travel insurance agency license is only issued to the business entity. Each of its branches must be
appointed by the insurers the agency and branch represents and the appointments must be filed with
DFS. Appointments are subject to an original appointment filing fee and a renewal fee every 24
months. 31

TRAVEL INSURANCE MODEL ACT

In 2016, the National Conference of Insurance Legislators began considering the adoption of a Travel
Insurance Model Act. The final version of this the Travel Insurance Model Act was approved on July 15,
2017. NAIC used this model act to create a model of their own. At least 42 states have implemented
portions of the NAIC Model Act. 32

Effect of the Bill

The bill incorporates NAIC's Travel Insurance Model Act, MDL-635, 33 into the Florida Insurance Code.

The bill creates a new chapter of Florida Statutes entitled "Travel Insurance." The chapter applies to:

• Travel insurance covering any resident of Florida that is sold, solicited, negotiated, or offered in
this state, as well as policies and certificates that are delivered or issued in this state; and
• Policies and certificates that are delivered or issued for delivery in Florida.

31
S. 626.501(9), F.S. See also s. 626.381, F.S.
32
National Association of Insurance Commissioners, Travel Insurance Model Act (4th quarter, 2018), https://www.naic.org/store/free/MDL-632.pdf
(last visited Jan. 25, 2020).
33 Id.
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Specific provisions outlined in this chapter supersede any general provisions otherwise applicable to
travel insurance. This chapter does not apply to:

• Major medical plans that provide medical protection for travelers with trips lasting longer than 6
months; and
• Travel assistance services and cancellation waivers.

A person offering, soliciting, or negotiating travel insurance or protection plans may not do so using an
opt-out option that requires a consumer to take an affirmative action when purchasing a trip. Any
person offering travel insurance is subject to the Unfair Insurance Trade Practices Act (UITPA), 34
unless otherwise specified. If a conflict arises between UITPA and this chapter, the provisions of this
chapter will control. If a destination jurisdiction requires travel insurance coverage, it is not an unfair
trade practice to require the consumer to purchase the required coverage through the travel retailer or
the limited lines insurance producer supplying the trip or package. A consumer also has the option to
obtain and provide proof of coverage from another source, provided it meets the jurisdiction's
requirements and is purchased prior to departure. It is not an unfair trade practice to market travel
insurance directly to a consumer online, as long as the web page provides an accurate summary or
short description of the coverage and the consumer has access to the full policy provisions through
electronic means. Conversely, a person commits an unfair trade practice under UITPA if he or she
offers or sells a policy that could never result in payment of any claims or markets blanket travel
insurance coverage as free.

A person may act or represent himself or herself as a travel administrator35 if he or she is a licensed
and appointed property and casualty insurance producer in Florida, is appointed as a managing agent
in Florida, or holds a valid third party administrator license. A travel administrator and its employees are
exempt from the licensing requirements listed in ch. 626, part VI, F.S. An insurer has the responsibility
of ensuring a travel administrator acts in accordance with this chapter and maintains books and
records, which must be available to DFS upon request.

The bill requires travel insurance documents to be provided to a consumer before purchase. Fulfillment
materials must be sent to the purchaser of a travel protection plan after purchase, confirming the
purchase and outlining the details of the plan. Fulfillment materials must include whether the travel
insurance is primary or secondary to other applicable coverage and whether the policy has preexisting
condition exclusions. A policyholder or certificate holder can cancel a policy or certificate for a full
refund up to 15 days after date of delivery, if delivered by postal mail, and 10 days after date of
delivery, if delivered by means other than postal mail.

For purposes of rates and forms, the bill classifies travel insurance under the inland marine line of
insurance. Coverage for sickness, accident, disability, or death during travel may be classified and filed
under the accident and health or the inland marine line of insurance. Travel insurance may be in the
form of an individual, group or blanket policy. A group or blanket policy is classified as commercial
inland marine insurance under s. 627.021 (2)(d), F.S. A policy not issued to a commercial entity and
primarily used for personal, family, or household purposes is classified as personal inland marine
insurance and is not subject to the rate requirements under s. 627.062, F.S.

The bill would require an insurer to pay a premium tax, as required under s.624.509, F.S. on travel
insurance premiums paid by the primary policyholder or certificate holder and by the blanket
policyholder. 36 The premium paid does not include amounts received for travel assistance services or
cancellation waivers.

34
Ch. 626, Part IX, F.S.
35
A travel administrator is a person who directly or indirectly underwrites policies for, collects charges, collateral, or premiums from, or adjusts or
settles claims on residents of this state, in connection with travel insurance.
36
This does not appear to be a new tax. Travel insurance is already subject to premium tax under the Florida Insurance Code. This provision appears
to be included to clarify the applicability of premium tax requirements to the newly created ch. 647, F.S.
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TRAVEL INSURANCE AGENT LICENSING

The bill revises current travel insurance agent and agency licensing. The following individuals and
entities will require licensing and appointment to transact travel insurance:

• A limited lines travel insurance producer, which is:
o A licensed administrator or third-party administrator;
o A licensed insurance producer, including a limited lines producer; or
o A travel administrator.
• A general lines or personal lines agent.

The following individual or entity must be registered and appointed (under a licensed limited lines travel
insurance producer) to transact travel insurance:

• Travel retailer, which is a business entity that:
o Makes, arranges, or offers planned travel.
o Disseminates travel insurance, under conditions specified in the bill, as a service to its
customers on behalf of and under the direction of a limited lines travel insurance
producer.

A licensed limited lines travel insurance producer must designate one employee responsible for
compliance issues applicable to the licensee and the registered travel retailers appointed under the
licensee. The licensed producer must provide for the training of all employees and appointees. The
licensed producer is responsible for all acts of its appointees and must ensure compliance with the law.

The bill gives DFS rulemaking authority to administer the chapter.

Surplus Lines Agent Affidavits

Background

SURPLUS LINES OVERVIEW

Surplus lines insurance refers to a category of insurance for risks that the admitted market is unable or
unwilling to provide coverage. 37 There are three basic categories of surplus lines risks:

• Specialty risks that have unusual underwriting characteristics or underwriting characteristics that
admitted insurers view as undesirable;
• Niche risks for which admitted carriers do not have a filed policy form or rate; and
• Capacity risks that are risks where an insured needs higher coverage limits than those that are
available in the admitted market.

Surplus lines insurers are not "authorized" insurers as defined in the Florida Insurance Code, which
means they do not obtain a certificate of authority from OIR to transact insurance in Florida. 38 Rather,
surplus lines insurers are "unauthorized" insurers 39 that may transact surplus lines insurance, if they are
made eligible by 01 R.

The Florida Surplus Lines Service Office (FSLSO) is a self-regulating, nonprofit association of approved
unauthorized insurers established by the Legislature in 1997. The FSLSO was created to protect
consumers seeking surplus line insurance in the state, monitor marketplace compliance, and protect

37
The admitted market is comprised of insurance companies licensed to transact insurance in Florida. The administration of surplus lines insurance
business is managed by the Florida Surplus Lines Service Office. S. 626.921, F.S.
38
S. 624.09(1), F.S.
39
S. 624.09(2), F.S.
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state revenues. 40 All licensed surplus lines agents are deemed to be members of the FSLSO. The
FSLSO operates under the supervision of a nine-member board of governors, which has oversight
responsibilities for the Florida surplus lines market.

"To export" a policy41 means to place it with an unauthorized insurer under the Surplus Lines Law. 42
Unless an exception applies, the insurance agent must make a diligent effort to procure the desired
coverage from admitted insurers before the agent can place insurance in the surplus lines market. 43
"Diligent effort" means, subject to certain exceptions, 44 seeking coverage from and being rejected by at
least three authorized insurers in the admitted market. 45 The law further specifies that: 46

• The premium rate for policies written by a surplus lines insurer cannot be less than the premium
rate used by a majority of authorized insurers for the same coverage on similar risks;
• The policy exported cannot provide coverage or rates that are more favorable than those that
are used by the majority of authorized insurers actually writing similar coverages on similar
risks;
• The deductibles must be the same as those used by one or more authorized insurers, unless
the coverage is for fire or windstorm; and
• For personal residential property risks, 47 the policyholder must be advised in writing that
coverage may be available and less expensive from Citizens Property Insurance Corporation
(Citizens).

SURPLUS LINES AGENTS

Surplus lines agents are authorized to handle the placement of insurance coverages with surplus lines
insurers. 48 Licensed resident general lines agents who meet the statutory criteria for licensure are
eligible for licensure as a surplus lines agent. 49 In order to place coverage with a surplus lines carrier,
the agent must make a "diligent effort" to place the policy with a Florida-authorized insurer, i.e., one
with a certificate of authority from OIR. 50

Surplus lines agents are required to report and file with the FSLSO specified information on each
surplus lines insurance policy within 30 days of the effective date of the transaction, must transmit
service fees to the FSLSO each month, and must transmit assessment and tax payments to the FSLSO
quarterly. 51 When requested by DFS or the FSLSO, surplus lines agents are also required to submit a
copy of any policy and certain other information. 52 Surplus lines agents are required to maintain each
surplus lines contract, including applications and all certificates, and other detailed information about
each surplus lines policy, in their agency office for a period of five years. 53

40
See S. 626.921, F.S. and FLORIDA SURPLUS LINES SERVICE OFFICE, About, https://www.fslso.com/about (last visited Jan. 26, 2020).
41 S. 626.914(3), F.S.
42
Sections 626.913 - 626.937, F.S., constitute the "Surplus Lines Law." S. 626.913(1 ), F.S.
43
S. 626.916(l)(a), F.S.
44
Exceptions include commercial lines risk, such as "excess or umbrella, surety and fidelity, boiler and machinery and leakage and fire extinguishing
equipment," and so on, as specified ins. 627.062(3)(d)l., F.S. S. 626.916(3)(b), F.S.
45
If the cost to replace a residential dwelling is $1,000,000 or more, then only one coverage rejection is needed prior to export. S. 626.914(4), F.S.
When exporting a flood insurance policy, diligent effort requirements do not apply until July I, 2019, or the Insurance Commissioner declares an
adequate flood insurance market among admitted insurers, whichever occurs first. S. 627.715(4), F.S.
46
S. 626.916(1), F.S.
47
Personal residential policies include homeowners, mobile homeowners, dwelling fire, tenants, condominium unit owners, and similar policies.
48
S. 626.914(1), F.S.
49
S. 626. 927, F.S. Generally, to be licensed as a surplus lines agent, an individual must be: (I) deemed DFS to have sufficient experience in the
insurance business (2) have I-year experience working for a licensed surplus lines agent or have completed 60 class hours in an approved surplus
lines course, and (3) pass a written examination.
50
There are certain exceptions to the diligent effort requirement. Supra, note 44.
51
Ss. 626.921(2) and 626.931, F.S.
52
S. 626.923, F.S.
53
S. 626.930, F.S.
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Effect of the Bill

The bill eliminates the required quarterly affidavit. The FSLSO receives relevant information
electronically in ongoing data filings.

Workers' Compensation Insurance Reporting Requirements

Background

Workers' compensation insurance carriers are required to record and report certain loss, expense, and
claims experience to aid OIR in making determinations concerning the adequacy of workers'
compensation experience for ratemaking purposes. 54 Additionally, carriers are required to provide the
following information annually on both Florida experience and nationwide experience separately:

• Payrolls by classification;
• Manual premiums by classification;
• Standard premiums by classification;
• Losses by classification and injury type; and
• Expenses.

Carriers satisfy these requirements by providing their data to the National Council on Compensation
Insurance, Inc. (NCCI). When a carrier goes into receivership due to insolvency, they cease reporting
to NCCI and, therefore, their data no longer in reported to OIR.

Effect of the Bill

The bill requires workers' compensation carriers that enter receivership to continue to report the
required data. The receiver, who is now in possession of the carrier, is permitted to do so directly or
outsource the reporting to a third party. OIR may approve a modified reporting plan to accommodate
limited data reporting.

Agent Licensing

Background

GENERAL LINES AGENT

A general lines agent55 is one who sells the following lines of insurance: property; 56 casualty, 57 including
commercial liability insurance underwritten by a risk retention group, a commercial self-insurance
fund, 58 or a workers' compensation self-insurance fund; 59 surety; 60 health; 61 and, marine. 62 The general
lines agent may only transact health insurance for an insurer that the general lines agent also
represents for property and casualty insurance. If the general lines agent wishes to represent health
insurers that are not also property and casualty insurers, they must be licensed as a health insurance
agent. 63

54
S. 627.914, F.S. See also R. 690-189.0055, F.A.C.
55 S. 626.015(5), F.S.
56
S. 624.604, F.S.
57
S. 624.605, F.S.
58
As defined ins. 624.462, F.S.
59
Pursuant to s. 624.4621, F.S.
60
S. 626.606, F.S.
61
Ss. 624.603 and 627.6482, F.S.
62 S. 624.607, F.S.
63
S. 626.829, F.S.
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PERSONAL LINES AGENT

A personal lines agent is a general lines agent who is limited to transacting business related to property
and casualty insurance sold to individuals and families for noncommercial purposes. 64

MOTOR VEHICLE SERVICING AGREEMENTS

Motor vehicle service agreements provide vehicle owners with protection when the manufacturer's
warranty expires. A motor vehicle service agreement indemnifies the vehicle owner (or holder of the
agreement) against loss caused by failure of any mechanical or other component part, or any
mechanical or other component part that does not function as it was originally intended. Motor vehicle
service agreements can only be sold by a licensed and appointed salesperson. Salespersons are
licensed in the same manner as insurance representatives under ch. 626, F.S., with some exceptions
to the requirements applied to insurance representatives.

SERVICE WARRANTY ASSOCIATIONS

Service warranty associations are entities, other than insurers, which issue service warranties. A
service warranty is an agreement or maintenance service contract equal to or greater than 1 year in
length to repair, replace, or maintain a consumer product, or for indemnification for repair, replacement,
or maintenance, for operational or structural failure due to a defect in materials or workmanship, normal
wear and tear, power surge, or accidental damage from handling in return for the payment of a
segregated charge by the consumer. 65 No person or entity shall solicit, negotiate, advertise, or
effectuate service warranty contracts in this state unless such person or entity is licensed and
appointed as a sales representative. 66

HOME WARRANTY CONTRACTS

A home warranty association is any corporation or any other organization, other than an authorized
insurer, issuing home warranties. A home warranty is any contract or agreement whereby a person
undertakes to indemnify the warranty holder against the cost of repair or replacement, or actually
furnishes repair or replacement, of any structural component or appliance of a home, necessitated by
wear and tear or an inherent defect of any such structural component or appliance or necessitated by
the failure of an inspection to detect the likelihood of any such loss. No person may not solicit,
negotiate, or effectuate home warranty contracts for remuneration in this state unless such person is
licensed and appointed as a sales representative. 67

Effect of the Bill

The bill allows a licensed general lines agent or licensed personal lines agent to advertise, solicit,
negotiate, or sell motor vehicle service agreements, home warranty contracts, or service warranty
contracts without being separately licensed as a sales representative or insurance representative, as
applicable. 68

64
S. 626.015(17), F.S.
65
s. 634.401(13).
66
S. 634.419, F.S. A "sales representative" is any person, retail store, corporation, partnership, or sole proprietorship utilized by an insurer or service
warranty association for the purpose of selling or issuing service warranties. However, in the case of service warranty associations selling service
warranties from one or more business locations, the person in charge of each location may be considered the sales representative. S. 634.401 (12),
F.S.
67
S. 634.317, F.S. "Sales representative" is any person with whom an insurer or home inspection or warranty association has a contract and who is
utilized by such insurer or association for the purpose of selling or issuing home warranties. The term includes all employees of an insurer or
association engaged directly in the sale or issuance of home warranties. S. 634.301(12), F.S
68
See Section III.C., Drafting Issues or Other Comments.
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B. SECTION DIRECTORY:
Section 1. Amending s. 215.555, F.S., relating to Florida Hurricane Catastrophe Fund.
Section 2. Amending s. 316.646, F.S., relating to security required; proof of security and display
thereof.
Section 3. Amending s. 320.02, F.S., relating to registration required; application for registration; forms.
Section 4. Creating s. 324.252, F.S., relating to insurance online verification system.
Section 5. Creating s. 324.255, F.S., relating to Motor Vehicle Insurance Online Verification Task
Force.
Section 6. Amending s. 624.01, F.S., relating to short title.
Section 7. Amending s. 626.321, F.S., relating to limited licenses.
Section 8. Amending s. 626.931, F.S., relating to agent affidavit and Insurer reporting requirements.
Section 9. Amending s. 626.932, F.S., relating to surplus lines tax.
Section 10. Amending s. 626.935, F.S., relating to suspension, revocation, or refusal of surplus lines
agent's license.
Section 11. Amending s. 627.7295, F.S., relating to motor vehicle insurance contracts.
Section 12. Amending s. 627.914, F.S., relating to reports of information by workers' compensation
insurers required.
Section 13. Amending s. 634.171, F.S., relating to salesperson to be licensed and appointed.
Section 14. Amending s. 634.317, F.S., relating to license and appointment required.
Section 15. Amending s. 634.419, F.S., relating to license and appointment required.
Section 16. Providing direction to the Division of Law Revision.
Section 17. Creating s. 647.01, F.S. relating to purpose and scope.
Section 18. Creating s. 647.02, F.S., relating to definitions.
Section 19. Creating s. 647.03, F.S., relating to premium tax.
Section 20. Creating s. 647.04, F.S., relating to travel protection plans.
Section 21. Creating s. 647.05, F.S., relating to sales practices.
Section 22. Creating s. 647.06, F.S., relating to travel administrators.
Section 23. Creating s. 647.07, F.S., relating to travel insurance policy.
Section 24. Creating s. 647.08, F.S., relating to rulemaking authority.
Section 25. Providing an effective date of July 1, 2020.

11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
Unknown.

The licenses and appointments for representation of travel insurers are subject to filing and renewal
fees. Some entities may no longer require licensure under the bill, but they will continue to require
appointment. There are few licensees in travel insurance, but many appointees. This may cause an
unknown reduction in licensing revenue.

The motor vehicle insurance online verification system may lead to increased penalty revenue due
to higher levels of interdiction and citation of insurance violations.

2. Expenditures:
Programming will be required for DHSMV to establish the motor vehicle insurance online
verification system . Upon recommendation of the task force, DHSMV may contract with a private
vendor to assist in establishing and maintaining the verification system. The bill also requires a pilot
program to be conducted to test the system's functionality prior to statewide use.

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DHSMV estimates that it will require $3.3 million to procure and implement a basic vendor-supplied
online insurance verification system. Following implementation, there will be a recurring cost of $2.8
million per year to support this system, with the amount increasing to $3.4 million in out years. 69

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
Unknown. The motor vehicle insurance online verification system may lead to increased penalty
revenue due to higher levels of interdiction and citation of insurance violations.

2. Expenditures:
Unknown. The bill requires local law enforcement agencies and officers to access the motor vehicle
insurance online verification system during all traffic stops and crash investigations after a certain
date. The negative cost of implementing hardware and software changes and conducting training to
comply with the requirements of the bill have not been estimated.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may positively affect consumers by increased availability and/or lowered premiums of motor
vehicle insurance written with named driver exclusions. However, high-risk consumers may experience
increased application denials or higher premiums when they must secure their own coverage following
exclusion from a policy.

The bill requires motor vehicle insurers to implement reporting compliant with the motor vehicle
insurance online verification system . This has an unknown negative fiscal impact on insurers that could
be passed on to consumers.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.

2. Other:
Article VI I, s. 19, Fla. Const., does not appear to apply. Travel insurance is currently subject to
premium tax under the Florida Insurance Code. The newly created ch. 647, F.S., Travel Insurance,
includes language a premium tax provision regarding travel insurance likely to prevent currently
taxable premiums from being relieved of the tax.

B. RULE-MAKING AUTHORITY:
The bill requires the Department of Highway Safety and Motor Vehicles and the Department of
Financial Services to adopt rules.

69
Florida Department of Highway Safety and Motor Vehicles, Agency Analysis of2020 HB 895, p. 4 (Jan. 24, 2020).
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C. DRAFTING ISSUES OR OTHER COMMENTS:
Section 21 of the bill creates two new violations of the Unfair Insurance Trade Practices Act in relation
to travel insurance. It may avoid confusion if these provision were amended into the Act, rather than
stating them in a separate chapter of statute.

Section 21 of the bill cross-references s. 626.321 (1)(c)3.a., F.S., in regard to information that must be
disclosed to a policyholder or certificate holder. The effect of this cross reference is unclear.

Section 22 of the bill exempts a travel administrator and its employees from the licensing requirements
in ch. 626, part VI, F.S. Currently, there are express exemptions listed in statute. 70 It may avoid
confusion if the bill's exemptions are placed with the existing exemptions found in s. 626.852, F.S.

On line 723, context indicates that the term "sale" should be "sales."

On lines 694, 709, and 724, the proposed language use the phrase "licensed under as a [specified
license type] under this section." However, the referenced sections are not licensing statutes; rather,
they each establish which licensees may transact the specified business. The phrase "under this
section" should be deleted to avoid confusion.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

70
Ss. 626.852(3)-(6), F.S.
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F L O R D A H O U S E 0 F R E P R E S E N T A T I V E S

PCS for HB 895 2020

1 A bill to be entitled
2 An act relating to insurance; amending s. 215.555,
3 F.S.; revising the definition of the term "covered
4 policy" to include a coverage amount requested by
5 lenders under specified residential insurance policies
6 in certain circumstances; amending s. 316.646, F.S.;
7 requiring law enforcement officers to access certain
8 information during traffic stops or crash
9 investigations for certain purposes; amending s.
10 320.02, F.S.; authorizing insurance online
11 verification for motor vehicle registration; creating
12 s. 324.252, F.S.; requiring the Department of Highway
13 Safety and Motor Vehicles to establish an online
14 verification system for motor vehicle insurance;
15 providing system requirements; providing powers and
16 duties of the department; providing requirements for
17 insurers and law enforcement officers; providing
18 immunity from liability; prohibiting the use of an
19 online verification request or response for a civil
20 action; providing applicability; providing rulemaking
21 authority; creating s. 324.255, F.S.; creating the
22 Motor Vehicle Insurance Online Verification Task
23 Force; providing duties of the task force; providing
24 membership; providing meeting requirements; requiring
25 the department to provide support; providing report

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26 requirements; providing the date by which the task
27 force must complete its work and submit its final
28 report; providing for expiration of the task force;
29 amending s. 624.01, F.S.; adding ch. 647, F.S.,
30 created by this act to the list of statutes composing
31 the Florida Insurance Code; amending s. 626.321, F.S.;
32 amending s. 626.321, F.S.; providing that certain
33 travel insurance licenses are subject to review by the
34 Department of Financial Services, rather than the
35 Office of Insurance Regulation; revising the list of
36 individuals and entities who may apply for such
37 licenses; revising the requirements for such licenses;
38 prohibiting persons from engaging in certain acts
39 unless licensed or registered; providing
40 authorizations and duties of limited lines travel
41 insurance producers and travel retailers; requiring
42 travel retailer registers; providing applicability of
43 penalties; providing fingerprinting and licensing fee
44 requirements; providing instruction or training
45 requirements under certain circumstances; authorizing
46 travel retailers to receive compensation under certain
47 circumstances; providing that limited lines travel
48 insurance producers are responsible for their travel
49 retailers' acts; authorizing persons licensed in major
50 lines of authority as insurance producers to sell,

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51 solicit, and negotiate travel insurance; amending s.
52 626.931, F.S.; deleting provisions requiring certain
53 surplus lines agents to file affidavits with the
54 Florida Surplus Lines Service Office; amending s.
55 626.932, F.S.; revising the timeline for the surplus
56 lines agents' tax remittance; amending s. 626.935,
57 F.S.; conforming provisions to changes made by the
58 act; amending s. 627.7295, F.S.; revising the
59 timeframe for insurers' cancellation of motor vehicle
60 insurance policies or contracts for nonpayment;
61 amending s. 627.914, F.S.; requiring certain workers'
62 compensation insurers and self-insurance funds to
63 continue to report certain information; authorizing
64 such reporting to be outsourced under certain
65 circumstances; requiring the office to approve a
66 modified reporting plan; authorizing the office to use
67 certain information for a specified purpose; amending
68 ss. 634.171, 634.317, and 634.419, F.S.; authorizing
69 licensed personal lines or general lines agent to
70 advertise, solicit, negotiate, or sell motor vehicle
71 service agreements, home warranties, and service
72 warranties, respectively, without a sales
73 representative license; providing a directive to the
74 Division of Law Revision; creating s. 647.01, F.S.;
75 providing purpose; providing applicability; creating

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76 s. 647.02, F.S.; providing definitions; creating s.
77 647.03, F.S.; providing definitions; providing
78 requirements for certain travel insurance premiums for
79 tax purposes; providing duties of travel insurers;
80 creating s. 647.04, F.S.; authorizing travel
81 protection plans to be offered under certain
82 circumstances; creating s. 647.05, F.S.; providing
83 requirements for documents provided to consumers
84 before the purchase of travel insurance; providing
85 requirements for disclosures of preexisting condition
86 exclusions in travel insurance policies and
87 certificates; providing requirements for fulfillment
88 materials and specified information; providing
89 circumstances under which travel protection plan
90 payments may be cancelled for a full refund; providing
91 practices that are not unfair trade practices or
92 violations of law; prohibiting certain practices;
93 providing that persons offering travel insurance to
94 residents of this state are subject to the Unfair
95 Insurance Trade Practices Act; providing that
96 specified provisions supersede such act; providing
97 practices that are unfair insurance trade practices;
98 creating s. 647.06, F.S.; prohibiting certain persons
99 from representing themselves as travel administrators;
100 exempting travel administrators and their employees

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101 from certain licensing requirements; providing
102 insurers' responsibilities relating to travel
103 administrators; creating s. 647.07, F.S.; providing
104 classification and filing of travel insurance for
105 purposes of rates and forms; providing eligibility and
106 underwriting standards for travel insurance; creating
107 s. 647.08, F.S.; requiring the Department of Financial
108 Services to adopt rules; providing construction;
109 providing an effective date.
110
111 Be It Enacted by the Legislature of the State of Florida:
112
113 Section 1. Paragraph (c) of subsection (2) of section
114 215.555, Florida Statutes, is amended to read:
115 215.555 Florida Hurricane Catastrophe Fund.-
116 (2) DEFINITIONS.-As used in this section:
117 (c) "Covered policy" means any insurance policy covering
118 residential property in this state, including, but not limited
119 to, any homeowner, mobile home owner, farm owner, condominium
120 association, condominium unit owner, tenant, or apartment
121 building policy, or any other policy covering a residential
122 structure or its contents issued by any authorized insurer,
123 including a commercial self-insurance fund holding a certificate
124 of authority issued by the Office of Insurance Regulation under
125 s. 624.462, the Citizens Property Insurance Corporation, and any

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126 joint underwriting association or similar entity created under
127 law. The term "covered policy'' includes any collateral
128 protection insurance policy covering personal residences which
12 9 protects both the borrower's and the lender's financial
130 interests, in an amount at least equal to the coverage for the
131 dwelling in place under the lapsed homeowner's policy, or in an
132 amount at least equal to the coverage amount requested by the
133 lender if the homeowner has been notified in writing of the
134 coverage amount and the homeowner has not requested that the
135 insurer issue the policy in a different amount, if such policy
136 can be accurately reported as required in subsection (5).
137 Additionally, covered policies include policies covering the
138 peril of wind removed from the Florida Residential Property and
139 Casualty Joint Underwriting Association or from the Citizens
140 Property Insurance Corporation, created under s. 627.351(6), or
141 from the Florida Windstorm Underwriting Association, created
142 under s. 627.351(2), by an authorized insurer under the terms
143 and conditions of an executed assumption agreement between the
144 authorized insurer and such association or Citizens Property
145 Insurance Corporation. Each assumption agreement between the
146 association and such authorized insurer or Citizens Property
147 Insurance Corporation must be approved by the Office of
148 Insurance Regulation before the effective date of the
149 assumption, and the Office of Insurance Regulation must provide
150 written notification to the board within 15 working days after

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151 such approval. "Covered policy" does not include any policy that
152 excludes wind coverage or hurricane coverage or any reinsurance
153 agreement and does not include any policy otherwise meeting this
154 definition which is issued by a surplus lines insurer or a
155 reinsurer. All commercial residential excess policies and all
156 deductible buy-back policies that, based on sound actuarial
157 principles, require individual ratemaking shall be excluded by
158 rule if the actuarial soundness of the fund is not jeopardized.
159 For this purpose, the term "excess policy" means a policy that
160 provides insurance protection for large commercial property
161 risks and that provides a layer of coverage above a primary
162 layer insured by another insurer.
163 Section 2. Subsection (5) of section 316.646, Florida
164 Statutes, is renumbered as subsection (6), and a new subsection
165 (5) is added to that section, to read:
166 316.646 Security required; proof of security and display
167 thereof.-
168 (5) Upon implementation of the motor vehicle insurance
169 online verification system established ins. 324.252, a law
170 enforcement officer, during a traffic stop or crash
171 investigation, shall access information from the online
172 verification system to establish compliance with this chapter
173 and chapter 324 and to verify the current validity of the policy
174 described on any insurance identification card produced by the
175 operator of a motor vehicle.

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176 Section 3. Paragraph (f) is added to subsection (5) of
177 section 320.02, Florida Statutes, to read:
178 320.02 Registration required; application for
179 registration; forms.-
180 ( 5)

181 (f) Upon implementation of the motor vehicle insurance
182 online verification system established ins. 324.252, the online
183 verification may be used in lieu of the verification procedures
184 in this subsection.
185 Section 4. Section 324.252, Florida Statutes, is created
186 to read:
187 324.252 Insurance online verification system.-The
188 department shall establish an online verification system for
189 motor vehicle insurance. The goal of the system is to identify
190 uninsured motorists and aid the department in the enforcement of
191 the financial responsibility law.
192 ( 1) The online verification system must:
193 (a) Be accessible through the Internet by authorized
194 personnel of the department, the courts, law enforcement
195 personnel, any other entities authorized by the department, and
196 insurers authorized by the Office of Insurance Regulation to
197 offer motor vehicle insurance.
198 (b) Send requests to insurers for verification of evidence
199 of insurance for motor vehicles registered in this state via
200 online services established by the insurers in compliance with

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201 the specifications and standards of the Insurance Industry
202 Committee on Motor Vehicle Administration (IICMVA), with
203 enhancements, additions, and modifications as required by the
204 department. However, the enhancements, additions, and
205 modifications may not conflict with, nullify, or add
206 requirements that are inconsistent with the specifications or
207 standards of the IICMVA.
208 (c) Be operational by July 1, 2023. The Motor Vehicle
209 Insurance Online Verification Task Force established ins.
210 324.255 must conduct a pilot program for at least 9 months to
211 test the system before statewide use. The system may not be used
212 in any enforcement action until successful completion of the
213 pilot program.
214 (d) Be available 24 hours a day, except as provided in
215 paragraph (2) (a), to verify the insurance status of any vehicle
216 registered in this state through the insurer's National
217 Association of Insurance Commissioners (NAIC) company code, in
218 combination with other identifiers such as vehicle
219 identification number, policy number, or other characteristics
220 or markers as specified by the Motor Vehicle Insurance Online
221 Verification Task Force.
222 (e) Include appropriate provisions, consistent with
223 industry standards as specified by the Motor Vehicle Insurance
224 Online Verification Task Force, to secure the system's data
225 against unauthorized access.

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226 (f) Include a disaster recovery plan to ensure service
227 continuity in the event of a disaster.
228 (g) Include information that enables the department to
229 make inquiries of evidence of insurance by using multiple data
230 elements for greater matching accuracy, specifically the
231 insurer's NAIC company code, in combination with other
232 identifiers such as vehicle identification number, policy
233 number, or other characteristics or markers as specified by the
234 Motor Vehicle Insurance Online Verification Task Force.
235 (h) Include a self-reporting mechanism for insurers with
236 fewer than 2,000 vehicles insured within this state or for
237 individual entities that are self-insured.
238 (2) The department has the following powers and duties:
239 (a) Upon an insurer's advance notice to the department,
240 the department shall allow online services established by the
241 insurer to have reasonable downtime for system maintenance and
242 other work, as needed. An insurer is not subject to
243 administrative penalties or disciplinary actions when its online
244 services are not available under such circumstances or when an
245 outage is unplanned by the insurer and is reasonably outside its
246 control.
247 (b) Upon recommendation of the Motor Vehicle Insurance
248 Online Verification Task Force, the department may contract with
249 a private vendor that has personnel with extensive operational
250 and management experience in the development, deployment, and

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251 operation of insurance online verification systems.
252 (c) The department and its private vendor, if any, shall
253 each maintain a contact person for the insurers during the
254 establishment, implementation, and operation of the system.
255 (d) The department shall maintain a historical record of
256 the system data for 6 months after the date of any verification
257 request and response.
258 (3) An insurance company authorized to issue insurance
259 policies for motor vehicles registered in this state:
260 (a) Shall comply with the verification requirements of
261 motor vehicle insurance for every motor vehicle insured by that
262 company in this state as required by department rule.
263 (b) Shall maintain policyholder records in order to
264 confirm insurance coverage for 6 months after the date of any
265 verification request and response.
266 (c) Shall cooperate with the department in establishing,
267 implementing, and maintaining the system.
268 (d) Is immune from civil liability for good faith efforts
269 to comply with this section. An online verification request or
270 response may not be used as the basis of a civil action against
271 an insurer.
272 (4) A law enforcement officer, during a traffic stop or
273 crash investigation, shall query information from the online
274 verification system to establish compliance with this chapter
275 and to verify the current validity of the policy described on

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276 any insurance identification card produced by the operator of a
277 motor vehicle.
278 (5) This section does not apply to vehicles insured under
279 commercial motor vehicle coverage. As used in this subsection,
280 the term "commercial motor vehicle coverage" means any coverage
281 provided to an insured under a commercial coverage form and
282 rated from a commercial manual approved by the Office of
283 Insurance Regulation. However, insurers of such vehicles may
284 participate in the online verification system on a voluntary
285 basis.
286 ( 6) The department may adopt rules to administer this
287 section.
288 Section 5. Section 324.255, Florida Statutes, is created
289 to read:
290 324.255 Motor Vehicle Insurance Online Verification Task
291 Force.-There is created the Motor Vehicle Insurance Online
292 Verification Task Force within the department.
293 (1) The task force shall:
294 (a) Facilitate the implementation of the motor vehicle
295 insurance online verification system established ins. 324.252,
296 including recommending data and cybersecurity processes and
297 protocols.
298 (b) Assist in the development of a detailed guide for
299 insurers by providing data fields and other information
300 necessary for compliance with the online verification system.

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301 (c) Coordinate a pilot program and conduct the program for
302 at least 9 months to test the online verification system and
303 identify necessary changes to be implemented before statewide
304 use.
305 (d) Issue recommendations based on periodic reviews of the
306 online verification system.
307 (2) The task force shall consist of nine voting members
308 and one nonvoting member.
309 (a) The nine voting members shall be appointed by July 31,
310 2020, in the following manner:
311 1. Three representatives of the department, representing
312 the Florida Highway Patrol, the Division of Motorist Services,
313 and the Information Systems Administration, appointed by the
314 executive director of the department.
315 2. One representative of the Office of Insurance
316 Regulation, appointed by the Commissioner of Insurance.
317 3. Three representatives of the motor vehicle insurance
318 industry, appointed by the Chief Financial Officer as follows:
319 a. One member must represent the motor vehicle insurer
320 with the largest national market share as of December 31, 2019.
321 b. One member must represent the motor vehicle insurer
322 with the largest Florida market share as of December 31, 2019.
323 c. One member must be selected from a list of
324 representatives recommended by the Insurance Industry Committee
325 on Motor Vehicle Administration.

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326 4. One representative of the Department of Financial
327 Services, appointed by the Chief Financial Officer.
328 5. One representative of the Agency for State Technology,
329 appointed by the executive director of the agency.
330 (b) The executive director of the department, who shall be
331 a nonvoting member, shall serve as chair of the task force.
332 (3) By September 30, 2020, the task force shall meet to
333 establish procedures for the conduct of its business, and the
334 voting members shall elect a vice chair at that meeting. The
335 task force shall meet at the call of the chair, who shall
336 prepare the agenda for each meeting with the consent of the task
337 force. A majority of the voting members of the task force
338 constitutes a quorum, and a quorum is necessary for the purpose
339 of voting on any action or recommendation of the task force. All
340 meetings shall be held in Tallahassee.
341 ( 4) The department shall provide the task force members
342 with administrative and technical support. Task force members
343 shall serve without compensation and are not entitled to
344 reimbursement for per diem or travel expenses.
345 (5) The task force shall issue a report to the department,
346 the President of the Senate, and the Speaker of the House of
347 Representatives no later than 6 months after the pilot program
348 concludes. The report must evaluate the online verification
349 system's effectiveness in identifying uninsured motorists. The
350 task force may also make recommendations for system enhancements

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351 in the report or at any time before the task force's completion
352 of its work.
353 ( 6) By July 1, 2023, the task force shall complete its
354 work and submit its final report evaluating the online
355 verification system's effectiveness and making recommendations
356 for system enhancements to the department, the President of the
357 Senate, and the Speaker of the House of Representatives. Upon
358 submission of the report, the task force shall expire.
359 Section 6. Section 624.01, Florida Statutes, is amended to
360 read:
361 624.01 Short title.-Chapters 624-632, 634, 635, 636, 641,
362 642, 647, 648, and 651 constitute the "Florida Insurance Code."
363 Section 7. Paragraph (c) of subsection (1) of section
364 626.321, Florida Statutes, is amended to read:
365 626.321 Limited licenses and registration.-
366 (1) The department shall issue to a qualified applicant a
367 license as agent authorized to transact a limited class of
368 business in any of the following categories of limited lines
369 insurance:
370 (c) Travel insurance.-License covering only policies and
371 certificates of travel insurance which are subject to review by
372 the office. Policies and certificates of travel insurance may
373 provide coverage for travel insurance, as defined ins. 647.02
374 riolco incidental to travel, planned travel, or accofflftlodationo
375 while traveling, including, but not lifflited to, accidental death

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376 and disffleffiberffient of a traveler; trip or event cancellation,
377 interruption, or delay; loss of or daffiage to personal effects or
378 travel docuffients; dafflages to travel accoffiffiodations; baggage
379 delay; efflergency ffiedical travel or evacuation of a traveler; or
380 ffledieal, surgical, and hospital expenses related to an illness
381 or effiergency of a traveler. Such policy or certificate ffiay be
382 issued for terffls longer than 90 days, but, other than a policy
383 or certificate providing coverage for air affibulatory services
384 only, each policy or certificate ffiust be lifflited to coverage for
385 travel or use of accoffiffiodations of no longer than 90 days. The
386 license may be issued only to an individual or business entity
387 that has filed with the department an application for a license
388 in a form and manner prescribed by the department.+
389 1. A limited lines travel insurance producer, as defined
390 s. 647.02, shall be licensed to sell, solicit, or negotiate
391 travel insurance through a licensed insurer.
392 2. A person may not act as a limited lines travel
393 insurance producer or travel retailer unless properly licensed
394 or registered, respectively. As used in this paragraph, the term
395 "travel retailer" means a business entity that:
396 a. Makes, arranges, or offers planned travel.
397 b. May, under subparagraph 3., offer and disseminate
398 travel insurance as a service to its customers on behalf of and
399 under the direction of a limited lines travel insurance
400 producer.

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401 3. A travel retailer may offer and disseminate travel
402 insurance under a limited lines travel insurance producer
403 business entity license only if all of the following
404 requirements are met:
405 a. The limited lines travel insurance producer or travel
406 retailer provides to purchasers of travel insurance:
407 (I) A description of the material terms or the actual
408 material terms of the insurance coverage.
409 (II) A description of the process for filing a claim.
410 (III) A description of the review or cancellation process
411 for the travel insurance policy.
412 (IV) The identity and contact information of the insurer
413 and limited lines travel insurance producer.
414 b. At the time of licensure, the limited lines travel
415 insurance producer establishes and maintains a register on the
416 department's website and appoints each travel retailer that
417 offers travel insurance on behalf of the limited lines travel
418 insurance producer. The limited lines travel insurance producer
419 must maintain and update the register, which must include the
420 travel retailer's federal tax identification number and the
421 name, address, and contact information of the travel retailer
422 and an officer or person who directs or controls the travel
423 retailer's operations. The limited lines travel insurance
424 producer shall submit the register to the department upon
425 reasonable request. The limited lines travel insurance producer

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42 6 shall also certify that the travel retailer register complies
427 with 18 U.S.C s. 1033. The grounds for the suspension and
428 revocation and the penalties applicable to resident insurance
429 producers under this section apply to the limited lines travel
430 insurance producers and travel retailers.
431 c. The limited lines travel insurance producer has
432 designated one of its employees as the designated responsible
433 producer. The designated responsible producer, who must be a
434 licensed insurance producer, is responsible for the compliance
435 with the travel insurance laws and regulations applicable to the
436 limited lines travel insurance producer and its registrants. The
437 designated responsible producer and the president, secretary,
438 treasurer, and any other officer or person who direct or control
439 the limited lines travel insurance producer's insurance
440 operations must comply with the fingerprinting requirements
441 applicable to insurance producers in the resident state of the
442 limited lines travel insurance producer.
443 d. The limited lines travel insurance producer has paid
444 all applicable licensing and appointment fees as set forth in
445 applicable general law.
446 e. The limited lines travel insurance producer requires
447 each employee and each authorized representative of the travel
448 retailer whose duties include offering and disseminating travel
449 insurance to receive a program of instruction or training, which
450 is subject, at the discretion of the department, to review and

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451 approval. The training material must, at a minimum, contain
452 adequate instructions on the types of insurance offered, ethical
453 sales practices, and required disclosures to prospective
454 purchasers.
455
456 As used in this paragraph, the term "offer and disseminate"
457 means to provide general information, including a description of
458 the coverage and price, as well as processing the application
459 and collecting premiums.
460 4. A travel retailer offering or disseminating travel
461 insurance shall make available to prospective purchasers
462 brochures or other written materials that have been approved by
463 the travel insurer. Such materials must include information
464 that, at a minimum:
465 a. Provides the identity and contact information of the
466 insurer and the limited lines travel insurance producer.
467 b. Explains that the purchase of travel insurance is not
468 required in order to purchase any other product or service from
469 the travel retailer.
470 c. Explains that a travel retailer is authorized to
471 provide only general information about the insurance offered by
472 the travel retailer, including a description of the coverage and
473 price, but is not qualified or authorized to answer technical
474 questions about the terms and conditions of the insurance
475 offered by the travel retailer or to evaluate the adequacy of

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476 the customer's existing insurance coverage.
477 5. A travel retailer employee or authorized representative
478 who is not licensed as an insurance producer may not:
479 a. Evaluate or interpret the technical terms, benefits,
480 and conditions of the offered travel insurance coverage;
481 b. Evaluate or provide advice concerning a prospective
482 purchaser's existing insurance coverage; or
483 c. Hold himself or herself or the travel retailer out as a
484 licensed insurer, licensed producer, or insurance expert.
485
486 Notwithstanding any other provision of law, a travel retailer
487 whose insurance-related activities, and those of its employees
488 and authorized representatives, are limited to offering and
489 disseminating travel insurance on behalf of and under the
490 direction of a limited lines travel insurance producer meeting
491 the conditions in this section may receive related compensation
492 upon registration by the limited lines travel insurance producer
493 as desc~ibed in paragraph (2) (b).
494 6. As the insurer's designee, the limited lines travel
495 insurance producer is responsible for the acts of the travel
496 retailer and shall use reasonable means to ensure compliance by
497 the travel retailer with this section.
498 7. Any person licensed as a general or personal lines
499 insurance agent may sell, solicit, and negotiate travel
500 insurance.

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501 1. To a full tiffle salaried etRployee of a cofflfflon carrier or
502 a full tiffle salaried employee or owner of a transportation
503 ticket agency and fflay authoriLe the sale of ouch ticket policies
504 only in connection with the sale of transportation ticlcets, or
505 to the full tiffle salaried etRployee of such an agent. Such policy
506 fflay not be for fflore than 48 hours or fflore than the duration of a
507 specified one way trip or round trip.
508 2. To an entity or individual that io:
509 a. The developer of a tiffleohare plan that is the subject
510 of an approved public offering statefflent under chapter 721;
511 b. An ettchange cotRpany operating an ettchange prograffl
512 approved under chapter 721;
513 c. A fflanaging entity operating a tiffleohare plan approved
514 under chapter 721;
515 d. A seller of travel ao defined in chapter §§9; or
516 e. A subsidiary or affiliate of any of the entities
517 described in sub oubparagrapho a. d.
518 3. To a full tiffle salaried etRployee of a licensed general
519 lines agent or a business entity that offers travel planning
520 services if insurance sales activities authoriLed by the license
521 are in connection with, and incidental to, travel.
522 a. A license issued to a business entity that offers
523 travel planning services tRuot encofflpaoo each office, branch
524 office, or place of business fflaking use of the entity's business
525 naffle in order to offer, solicit, and sell insurance pursuant to

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52 6 this paragraph.
527 b. The application for lieensure must list the name,
528 address, and phone number for each office, branch office, or
529 place of business that is to be covered by the license. The
530 licensee shall notify the department of the name, address, and
531 phone number of any new location that is to be covered by the
532 license before the new office, branch office, or place of
533 business engages in the sale of insurance pursuant to this
534 paragraph. The licensee shall notify the department within 30
535 days after the closing or terminating of an office, branch
536 office, or place of business. Upon receipt of the notice, the
537 department shall delete the office, branch office, or place of
538 business from the license.
539 c. A licensed and appointed entity is directly responsible
540 and accountable for all.acts of the licensee's employees and
541 parties with whom the licensee has entered into a contractual
542 agreement to offer travel insurance.
543
544 A licensee shall require each individual who offers policies or
545 certificates under subparagraph 2. or subparagraph 3. to receive
54 6 initial training from a general lines agent or an insurer
547 authorized under chapter 624 to transact insurance within this
548 state. For an entity applying for a license as a travel
549 insurance agent, the fingerprinting requirement of this section
550 applies only to the president, secretary, and treasurer and to

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551 any other officer or person who directs or controls the travel
552 insurance operations of the entity.
553 Section 8. Section 626.931, Florida Statutes, is amended
554 to read:
555 626.931 Agent affidavit and Insurer reporting
556 requirements.-
557 (1) Each surplus lines agent that has transacted business
558 during a calendar quarter shall on or before the 45th day
559 following the calendar quarter file with the Florida Surplus
560 Lines Service Office an affidavit, on forffis as prescribed and
561 furnished by the Florida Surplus Lines Service Office, stating
562 that all surplus lines insurance transacted by hiffi or her during
563 ouch calendar quarter has been subffiitted to the Florida Surplus
564 Lines Service Office as required.
565 (2) The affidavit of the surplus lines agent shall include
566 efforts ffiade to place coverages with authoriLed insurers and the
567 results thereof.
568 J.l.l-t-3+ Each foreign insurer accepting premiums shall, on
569 or before the end of the month following each calendar quarter,
570 file with the Florida Surplus Lines Service Office a verified
571 report of all surplus lines insurance transacted by such insurer
572 for insurance risks located in this state during such calendar
573 quarter.
574 J1.l-t4+ Each alien insurer accepting premiums shall, on or
575 before June 30 of each year, file with the Florida Surplus Lines

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57 6 Service Office a verified report of all surplus lines insurance
577 transacted by such insurer for insurance risks located in this
578 state during the preceding calendar year.
579 J..ll-f-5-t The department may waive the filing requirements
580 described in subsections JJj_ -f-3+ a n d ~ -f-4+.
581 (4)+6+ Each insurer's report and supporting information
582 shall be in a computer-readable format as determined by the
583 Florida Surplus Lines Service Office or shall be submitted on
584 forms prescribed by the Florida Surplus Lines Service Office and
585 shall show for each applicable agent:
586 (a) A listing of all policies, certificates, cover notes,
587 or other forms of confirmation of insurance coverage or any
588 substitutions thereof or endorsements thereto and the
589 identifying number; and
590 (b) Any additional information required by the department
591 or Florida Surplus Lines Service Office.
592 Section 9. Paragraph (a) of subsection (2) of section
593 626.932, Florida Statutes, is amended to read:
594 626.932 Surplus lines tax.-
595 (2) (a) The surplus lines agent shall make payable to the
596 department the tax related to each calendar quarter's business
597 as reported to the Florida Surplus Lines Service Office, and
598 remit the tax to the Florida Surplus Lines Service Office at the
599 same time as the fee payment required provided for the filing of
600 the quarterly affidavit, under s. 626.9325 o. 626.931. The

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601 Florida Surplus Lines Service Office shall forward to the
602 department the taxes and any interest collected pursuant to
603 paragraph (b), within 10 days of receipt.
604 Section 10. Paragraph (d) of subsection (1) of section
605 626.935, Florida Statutes, is amended to read:
606 626.935 Suspension, revocation, or refusal of surplus
607 lines agent's license.-
608 (1) The department shall deny an application for, suspend,
609 revoke, or refuse to renew the appointment of a surplus lines
610 agent and all other licenses and appointments held by the
611 licensee under this code, on any of the following grounds:
612 (d) Failure to ffiake and file his or her affidavit or
613 reports when due as required bys. 626.931.
614 Section 11. Subsection (4) of section 627.7295, Florida
615 Statutes, is amended to read:
616 627.7295 Motor vehicle insurance contracts.-
617 (4) The insurer may cancel the policy in accordance with
618 this code except that, notwithstanding s. 627.728, an insurer
619 may not cancel a new policy or binder during the first 30 -6-G-
620 days immediately following the effective date of the policy or
621 binder for nonpayment of premium unless the reason for the
622 cancellation is the issuance of a check for the premium that is
623 dishonored for any reason or any other type of premium payment
624 that was subsequently determined to be rejected or invalid.
625 Section 12. Subsection (4) of section 627.914, Florida

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62 6 Statutes, is renumbered as subsection (5), subsections (2) and
627 (3) of that section are amended, and a new subsection (4) is
628 added to that section, to read:
629 627.914 Reports of information by workers' compensation
630 insurers required.-
631 (2)~ Each insurer and self-insurance fund authorized to
632 write a policy of workers' compensation insurance shall report
633 transmit the following information annually on both Florida
634 experience and nationwide experience separately:
635 1.-f-a+ Payrolls by classification.
636 ~-fe+ Manual premiums by classification.
637 3.-tet- Standard premiums by classification.
638 4.-fe:+- Losses by classification and injury type.
639 ~+et- Expenses.
640
641 An insurer or self-insurance fund that is placed in receivership
642 pursuant to part I of chapter 631 must continue to report the
643 information required under this paragraph. At the discretion of
644 the receiver, the insurer or self-insurance fund may outsource
645 the reporting of such information to a third-party reporting
646 vendor. The office shall approve a modified reporting plan that
647 is limited in terms of data elements.
648 J..!21 A report of the .tft.i.s. information required under
649 paragraph (a) shall be filed no later than July 1 of each year.
650 All reports shall be filed in accordance with standard reporting

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651 procedures for insurers, which procedures have received approval
652 by the office, and shall contain data for the most recent policy
653 period available. A statistical or rating organization may be
654 used by insurers and self-insurance funds to report the data
655 required by this section. The statistical or rating organization
656 shall report each data element in the aggregate only for
657 insurers and self-insurance funds required to report under this
658 section who elect to have the organization report on their
659 behalf. Such insurers and self-insurance funds shall be named in
660 the report.
661 (3) Individual self-insurers as defined ins. 440.02 shall
662 report only Florida data as prescribed in subparagraphs
663 (2) (a) 1.-5. paragraphs (2) (a) (e) to the office.
664 (a) The office shall publish the dates and forms necessary
665 to enable individual self-insurers to comply with this section.
666 (b) A statistical or rating organization may be used by
667 individual self-insurers for the purposes of reporting the data
668 required by this section and calculating experience ratings.
669 (4) The office may use the information it receives under
670 this section in its adoption of rates and experience ratings
671 modifications.
672 Section 13. Section 634.171, Florida Statutes, is amended
673 to read:
674 634.171 Salesperson to be licensed and appointed.-
675 Salespersons for motor vehicle service agreement companies and

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67 6 insurers shall be licensed, appointed, renewed, continued,
677 reinstated, or terminated as prescribed in chapter 626 for
678 insurance representatives in general. However, they shall be
679 exempt from all other provisions of chapter 626 including
680 fingerprinting, photo identification, education, and examination
681 provisions. License, appointment, and other fees shall be those
682 prescribed ins. 624.501. A licensed and appointed salesperson
683 shall be directly responsible and accountable for all acts of
684 her or his employees and other representatives. Each service
685 agreement company or insurer shall, on forms prescribed by the
686 department, within 30 days after termination of the appointment,
687 notify the department of such termination. An Ne employee or
688 salesperson of a motor vehicle service agreement company or
689 insurer may not directly or indirectly solicit or negotiate
690 insurance contracts, or hold herself or himself out in any
691 manner to be an insurance agent, unless so qualified, licensed,
692 and appointed therefor under the Florida Insurance Code. A
693 licensed personal lines or general lines agent is not required
694 to be licensed as a salesperson under this section to advertise,
695 solicit, negotiate, or sell motor vehicle service agreements. A
696 motor vehicle service agreement company is not required to be
697 licensed as a salesperson to solicit, sell, issue, or otherwise
698 transact the motor vehicle service agreements issued by the
699 motor vehicle service agreement company.
700 Section 14. Section 634.317, Florida Statutes, is amended

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701 to read:
702 634.317 License and appointment required.-~ Ne person may
703 not solicit, negotiate, or effectuate home warranty contracts
704 for remuneration in this state unless such person is licensed
705 and appointed as a sales representative. A licensed and
706 appointed sales representative shall be directly responsible and
707 accountable for all acts of the licensee's employees. A licensed
708 personal lines or general lines agent is not required to be
709 licensed as a sales representative under this section to
710 advertise, solicit, negotiate, or sell home warranties.
711 Section 15. Section 634.419, Florida Statutes, is amended
712 to read:
713 634.419 License and appointment required.-~ Ne person or
714 entity may not shall solicit, negotiate, advertise, or
715 effectuate service warranty contracts in this state unless such
716 person or entity is licensed and appointed as a sales
717 representative. Sales representatives shall be responsible for
718 the actions of persons under their supervision. However, a
719 service warranty association licensed as such under this part
720 shall not be required to be licensed and appointed as a sales
721 representative to solicit, negotiate, advertise, or effectuate
722 its products. A licensed personal lines or general lines agent
723 is not required to be licensed as a sale representative under
724 this section to advertise, solicit, negotiate, or sell service
725 warranties.

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72 6 Section 16. The Division of Law Revision is directed to
727 create chapter 647, Florida Statutes, consisting of ss. 647.01-
728 647.08, Florida Statutes, to be entitled "Travel Insurance."
72 9 Section 17. Section 647.01, Florida Statutes, is created
730 to read:
731 647.01 Purpose and scope.-
732 (1) The purpose of this chapter is to promote the public
733 welfare by creating a comprehensive legal framework within which
734 travel insurance may be sold in this state.
735 (2) This chapter applies to:
736 (a) Travel insurance that covers any resident of this
737 state and that is sold, solicited, negotiated, or offered in
738 this state.
739 (b) Policies and certificates that are delivered or issued
740 for delivery in this state.
741
742 This chapter does not apply to cancellation fee waivers or
743 travel assistance services, except as expressly provided in this
744 chapter.
745 (3) All other applicable provisions of the insurance laws
746 of this state continue to apply to travel insurance, except that
747 the specific provisions of this chapter shall supersede any
748 general provisions of law that would otherwise be applicable to
749 travel insurance.
750 Section 18. Section 647.02, Florida Statutes, is created

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751 to read:
752 647.02 Definitions.-As used in this chapter, the term:
753 ( 1) "Aggregator site" means a website that provides access
754 to information regarding insurance products from more than one
755 insurer, including product and insurer information, for use in
756 comparison shopping.
757 (2) "Blanket travel insurance" means a policy of travel
758 insurance issued to an eligible group providing coverage to all
759 members of the eligible group without a separate charge to
760 individual members of the eligible group.
761 (3) "Cancellation fee waiver" means a contractual
762 agreement between a supplier of travel services and its customer
763 to waive some or all of the nonrefundable cancellation fee
764 provisions of the supplier's underlying travel contract with or
765 without regard to the reason for the cancellation or form of
766 reimbursement. A cancellation fee waiver is not insurance.
767 ( 4) "Department" means the Department of Financial
768 Services.
769 ( 5) "Eligible group," solely for the purposes of travel
770 insurance, means two or more persons who are engaged in a common
771 enterprise or who have an economic, educational, or social
772 affinity or relationship, including, but not limited to, any of
773 the following:
774 (a) An entity engaged in the business of providing travel
775 or travel services, including, but not limited to:

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776 1. A tour operator, lodging provider, vacation property
777 owner, hotel, resort, travel club, travel agency, property
778 manager, and cultural exchange program.
779 2. An operator, owner, or lessor of a means of
780 transportation of passengers, including, but not limited to, a
781 common carrier, airline, cruise line, railroad, steamship
782 company, and public bus carrier.
783
784 With regard to any particular travel or type of travel or
785 travelers, all members or customers of the group must have a
786 common exposure to risk attendant to such travel.
787 (b) A university, college, school, or other institution of
788 learning, covering students, teachers, employees, or volunteers.
789 (c) An employer covering any group of employees,
790 volunteers, contractors, board of directors, dependents, or
791 guests.
792 (d) A sports team or camp, or a sponsor thereof, covering
793 participants, members, campers, employees, officials,
794 supervisors, or volunteers.
795 (e) A religious, charitable, recreational, educational, or
796 civic organization, or a branch thereof, covering any group of
797 members, participants, or volunteers.
798 (f) A financial institution or financial institution
799 vendor, or a parent holding company, trustee, or agent of or
800 designated by one or more financial institutions or financial

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801 institution vendors, including account holders, credit card
802 holders, debtors, guarantors, or purchasers.
803 (g) An incorporated or unincorporated association,
804 including a labor union, having a common interest and
805 constitution and bylaws, which is organized and maintained in
806 good faith for purposes other than obtaining insurance coverage
807 for its members or participants.
808 (h) A trust or the trustees of a fund that covers its
809 members, employees, or customers and is established, created, or
810 maintained for the benefit of its members, employees, or
811 customers, subject to:
812 1. The department's authorizing the use of a trust.
813 2. The premium tax provisions ins. 647.03 applicable to
814 incorporated or unincorporated associations that have a common
815 interest and constitution and bylaws and that are organized and
816 maintained in good faith for purposes other than obtaining
817 insurance coverage for their members, employees, or customers.
818 (i) An entertainment production company covering any group
819 of participants, volunteers, audience members, contestants, or
820 workers.
821 (j) A volunteer fire department, ambulance, rescue,
822 police, court, first-aid, civil defense, or other such volunteer
823 group.
824 (k) A preschool, daycare institution for children or
825 adults, or senior citizen club.

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826 (1) An automobile or truck rental or leasing company
827 covering a group of individuals who may become renters, lessees,
828 or passengers as defined by their travel status on the rented or
82 9 leased vehicles. The common carrier, the operator, owner, or
830 lessor of a means of transportation, or the motor vehicle or
831 truck rental or leasing company is the policyholder under a
832 policy to which this section applies.
833 (m) Any other group for which the department has made the
834 following determinations:
835 1. The group members are engaged in a common enterprise or
836 have an economic, educational, or social affinity or
837 relationship.
838 2. Issuance of the travel insurance policy is not contrary
839 to the public interest.
840 ( 6) "Fulfillment materials" means documentation sent to
841 the purchaser of a travel protection plan confirming the
842 purchase and providing the travel protection plan's coverage and
843 assistance details.
844 (7) "Group travel insurance" means travel insurance issued
845 to an eligible group.
846 (8) "Limited lines travel insurance producer" means:
847 (a) A licensed or third-party administrator;
848 (b) A licensed insurance producer, including a limited
849 lines producer; or
850 (c) A travel administrator.

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851 ( 9) "Travel administrator" means a person who directly or
852 indirectly underwrites policies for, collects charges,
853 collateral, or premiums from, or adjusts or settles claims on,
854 residents of this state, in connection with travel insurance,
855 except that a person is not considered a travel administrator if
856 the person is:
857 (a) A person working for a travel administrator to the
858 extent that the person's activities are subject to the
859 supervision and control of the travel administrator;
860 (b) An insurance producer selling insurance or engaged in
861 administrative and claims-related activities within the scope of
862 the producer's license;
863 (c) A travel retailer, as defined s. 626.321(1) (c)2.,
864 offering and disseminating travel insurance and registered under
865 the license of a limited lines travel insurance producer in
866 accordance with s. 626.321 (1) (c);
867 (d) A person adjusting or settling claims in the normal
868 course of the person's practice or employment as an attorney at
869 law, without collecting charges or premiums in connection with
870 insurance coverage; or
871 (e) A business entity that is affiliated with a licensed
872 insurer while acting as a travel administrator for the direct
873 and assumed insurance business of the affiliated insurer.
874 (10) "Travel assistance services" means noninsurance
875 services for which the consumer is not indemnified based on a

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87 6 fortuitous event, and the provision of which does not result in
877 transfer or shifting of risk which would constitute the business
878 of insurance. The term includes, but is not limited to, security
879 advisories, destination information, vaccination and
880 immunization information services, travel reservation services,
881 entertainment, activity and event planning, translation
882 assistance, emergency messaging, international legal and medical
883 referrals, medical case monitoring, coordination of
884 transportation arrangements, emergency cash transfer assistance,
885 medical prescription replacement assistance, passport and travel
886 document replacement assistance, lost luggage assistance,
887 concierge services, and any other service that is furnished in
888 connection with planned travel. Travel assistance services are
889 not insurance and not related to insurance.
890 (11) "Travel insurance" means insurance coverage for
891 personal risks incidental to planned travel, including:
892 (a) Interruption or cancellation of trip or event;
893 (b) Loss of baggage or personal effects;
894 (c) Damages to accommodations or rental vehicles;
895 (d) Sickness, accident, disability, or death occurring
896 during travel;
897 (e) Emergency evacuation;
898 (f) Repatriation of remains; or
899 (g) Any other contractual obligations to indemnify or pay
900 a specified amount to the traveler upon determinable

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901 contingencies related to travel as determined by the office.
902
903 The term does not include major medical plans that provide
904 comprehensive medical protection for travelers with trips
905 lasting longer than 6 months, including major medical plans for
906 those working or residing overseas as expatriates, or any other
907 product that requires a specific insurance producer license.
908 ( 12) "Travel protection plan" means a plan that provides
909 one or more of the following: travel insurance, travel
910 assistance services, and cancellation fee waivers.
911 Section 19. Section 647.03, Florida Statutes, is created
912 to read:
913 647.03 Premium tax.-
914 (1) As used in this section, the term:
915 (a) "Primary certificateholder" means an individual who
916 purchases travel insurance under a group policy.
917 (b) "Primary policyholder" means an individual who
918 purchases individual travel insurance.
919 (2) A travel insurer shall pay the premium tax, as
920 required under s. 624.509, on travel insurance premiums paid by
921 any of the following:
922 (a) A primary policyholder who is a resident of this
923 state.
924 (b) A primary certificateholder who is a resident of this
925 state.

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92 6 (c) A blanket travel insurance policyholder:
927 1. Who is a resident in this state;
928 2. Who has his or her principal place of business in this
929 state; or
930 3. Whose affiliate or subsidiary who has purchased blanket
931 travel insurance for eligible blanket group members has his or
932 her principal place of business in this state.
933
934 The premium tax under this subsection is subject to any
935 apportionment rules that apply to an insurer across multiple
936 taxing jurisdictions or that authorize an insurer to allocate
937 premium on an apportioned basis in a reasonable and equitable
938 manner in those jurisdictions.
939 (3) A travel insurer shall:
940 (a) Document the state of residence or principal place of
941 business of the policyholder or certificateholder, or an
942 affiliate or subsidiary thereof, as required under subsection
943 (2).

944 (b) Report as premium only the amount allocable to travel
945 insurance and not any amounts received for travel assistance
946 services or cancellation fee waivers.
947 Section 20. Section 647.04, Florida Statutes, is created
948 to read:
949 647.04 Travel protection plans.-A travel protection plan
950 may be offered for one price for the combined features that the

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951 travel protection plan offers in this state if the travel
952 protection plan meets all of the following requirements:
953 (1) The travel protection plan clearly discloses to the
954 consumer, at or before the time of purchase, that it includes
955 travel insurance, travel assistance services, and cancellation
956 fee waivers, as applicable, and provides information and an
957 opportunity, at or before the time of purchase, for the consumer
958 to obtain additional information regarding the features and
959 pricing of each.
960 (2) The fulfillment materials:
961 (a) Describe and delineate the travel insurance, travel
962 assistance services, and cancellation fee waivers in the travel
963 protection plan.
964 (b) Include the travel insurance disclosures required in
965 this chapter, the contact information for persons providing
966 travel assistance services, and cancellation fee waivers, as
967 applicable.
968 Section 21. Section 647.05, Florida Statutes, is created
969 to read:
970 647.05 Sales practices.-
971 (1) (a) All documents provided to a consumer before the
972 purchase of travel insurance, including, but not limited to,
973 sales materials, advertising materials, and marketing materials,
974 must be consistent with the travel insurance policy, including,
975 but not limited to, forms, endorsements, policies, rate filings,

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976 and certificates of insurance.
977 (b) For travel insurance policies or certificates that
978 contain preexisting condition exclusions, information and an
979 opportunity to learn more about the preexisting condition
980 exclusions must be provided any time before the purchase.
981 Information on the exclusions and the opportunity to learn more
982 about these exclusions must be included in the coverage's
983 fulfillment materials.
984 (c) The fulfillment materials and the information
985 described ins. 626.321(1) (c)3.a. must be provided to a
986 policyholder or certificateholder as soon as practicable after
987 the purchase of a travel protection plan. Unless the insured has
988 started a covered trip or filed a claim under the travel
989 insurance coverage, the policyholder or certificateholder may
990 cancel a policy or certificate for a full refund of the travel
991 protection plan price from the date of purchase of a travel
992 protection plan until at least:
993 1. Fifteen days after the date of delivery of the travel
994 protection plan's fulfillment materials by postal mail; or
995 2. Ten days after the date of delivery of the travel
996 protection plan's fulfillment materials by means other than
997 postal mail.
998
999 For the purposes of this paragraph, the term "delivery" means
1000 handing fulfillment materials to the policyholder or

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1001 certificateholder or sending fulfillment materials by postal
1002 mail or electronic means to the policyholder or
1003 certificateholder.
1004 (d) An insurer shall disclose in the policy documentation
1005 and fulfillment materials whether the travel insurance is
1006 primary or secondary to other applicable coverage.
1007 (e) If travel insurance is marketed directly to a consumer
1008 through an insurer's website or by others through an aggregator
1009 site, it is not an unfair trade practice or other violation of
1010 law if the following requirements are met:
1011 1. The web page provides an accurate summary or short
1012 description of the coverage.
1013 2. The consumer has access to the full provisions of the
1014 policy through electronic means.
1015 (2) A person offering, soliciting, or negotiating travel
1016 insurance or travel protection plans on an individual or group
1017 basis may not do so by using a negative or opt-out option that
1018 would require a consumer to take an affirmative action to
1019 deselect coverage, such as unchecking a box on an electronic
1020 form, when the consumer purchases a trip.
1021 (3) If a consumer's destination jurisdiction requires
1022 insurance coverage, it is not an unfair trade practice to
1023 require that the consumer choose between the following options
1024 as a condition of purchasing a trip or travel package:
1025 (a) Purchasing the coverage required by the destination

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102 6 jurisdiction through the travel retailer, as defined s.
1027 626.321(1) (c)2., or limited lines travel insurance producer
1028 supplying the trip or travel package; or
1029 (b) Agreeing to obtain and provide proof of coverage that
1030 meets the destination jurisdiction's requirements before
1031 departure.
1032 (4) (a) A person offering travel insurance to residents of
1033 this state is subject to part IX of chapter 626, the Unfair
1034 Insurance Trade Practices Act, except as otherwise provided in
1035 this chapter. If a conflict arises between this chapter and the
1036 Unfair Insurance Trade Practices Act regarding the sale and
1037 marketing of travel insurance and travel protection plans, the
1038 provisions of this chapter shall control.
1039 (b) A person commits an unfair insurance trade practice
1040 under the Unfair Insurance Trade Practices Act if the person:
1041 1. Offers or sells a travel insurance policy that could
1042 never result in payment of any claims for any insured under the
1043 policy; or
1044 2. Markets blanket travel insurance coverage as free.
1045 Section 22. Section 647.06, Florida Statutes, is created
1046 to read:
1047 647.06 Travel administrators.-
1048 (1) Notwithstanding any other provision of the Florida
1049 Insurance Code, a person may not act or represent himself or
1050 herself as a travel administrator in this state unless the

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1051 person:
1052 (a) Is a licensed and appointed property and casualty
1053 insurance producer in this state for activities authorized under
1054 that producer license;
1055 (b) Is a licensed insurance agency, appointed as a
1056 managing general agent in this state; or
1057 (c) Holds a valid third-party administrator license in
1058 this state.
1059 (2) A travel administrator and its employees are exempt
1060 from the licensing requirements of part VI of chapter 626 for
1061 the travel insurance it administers.
1062 (3) An insurer is responsible for ensuring that a travel
1063 administrator administering travel insurance underwritten by the
1064 insurer:
1065 (a) Acts in accordance with this chapter.
1066 (b) Maintains all books and records that are relevant to
1067 the insurer and makes these books and records available to the
1068 department upon request.
1069 Section 23. Section 647.07, Florida Statutes, is created
1070 to read:
1071 647.07 Travel insurance policy.-
1072 (1) Notwithstanding any other provision of the Florida
1073 Insurance Code, travel insurance shall be classified and filed
1074 for purposes of rates and forms under the inland marine line of
1075 insurance; however, travel insurance that provides coverage for

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1076 sickness, accident, disability, or death occurring during
1077 travel, either exclusively or in conjunction with related
1078 coverages of emergency evacuation or repatriation of remains, or
1079 incidental limited property and casualty benefits such as
1080 baggage or trip cancellation, may be classified and filed for
1081 purposes of rates and forms under either the accident and health
1082 line of insurance or the inland marine line of insurance.
1083 (2) Travel insurance may be in the form of an individual,
1084 group, or blanket policy. Group or blanket policies are
1085 classified as commercial inland marine insurance under s.
1086 62 7. 021 ( 2) ( d} . Travel insurance policies not issued to a
1087 commercial entity and primarily used for personal, family, or
1088 household purposes is considered personal inland marine
1089 insurance, and shall not be subject to s. 627.062. Sections of
1090 policies or endorsements for travel insurance that are
1091 considered personal inland marine consisting of travel
1092 assistance services or cancellation fee waivers are not subject
1093 to s. 627.410.
1094 (3) Travel insurance programs may be developed and provided
1095 based on travel protection plans
1096 designed for individual or identified marketing or distribution
1097 channels.
1098 Section 24. Section 647.08, Florida Statutes, is created
1099 to read:
1100 647.08 Rulemaking authority.-The department shall adopt

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1101 rules to administer this chapter.
1102 Section 25. This act shall take effect July 1, 2020.

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Insurance

AMENDMENT SUMMARY
January 28, 2020

Amendment 1 by Rep. Santiago (Line 163): The amendment makes technical and clarifying
changes identified by the Department of Highway Safety & Motor Vehicles. It also makes the
development and implementation of the Motor Vehicle Insurance Online Verification System and
the associated task force contingent upon receiving a specific appropriation, which could occur
this Session or in the future.

Amendment 2 by Rep. Santiago (Line 694): The amendment corrects a scrivener's error and
removes superfluous language.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 895 (2020)
Amendment No. 1

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Santiago offered the following:
4
5 Amendment
6 Remove lines 163-358 and insert:
7 Section 2. Subsection (5) of section 316.646, Florida
8 Statutes, is renumbered as subsection (6), and a new subsection
9 (5) is added to that section, to read:
10 316.646 Security required; proof of security and display
11 thereof.-
12 (5) Eighteen months after implementation of the motor
13 vehicle insurance online verification system established ins.
14 324.252, a law enforcement officer, during a traffic stop or
15 crash investigation, shall access information from the online
16 verification system to establish compliance with this chapter

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 895 (2020)
Amendment No. 1

17 and chapter 324.
18 Section 3. Paragraph (f) is added to subsection (5) of
19 section 320.02, Florida Statutes, to read:
20 320.02 Registration required; application for
21 registration; forms.-
22 (5)

23 (f) Upon implementation of the motor vehicle insurance
24 online verification system established ins. 324.252, the online
25 verification may be used in lieu of the verification procedures
26 in this subsection.
27 Section 4. Section 324.252, Florida Statutes, is created
28 to read:
29 324.252 Insurance online verification system.-The
30 department shall establish an online verification system for
31 motor vehicle insurance. The goal of the system is to identify
32 uninsured motorists and aid the department in the enforcement of
33 the financial responsibility law.
34 (1) The online verification system must:
35 (a) Be accessible through electronic means for use by any
36 government agency, including any court or law enforcement
37 agency, in carrying out its functions, or any private person or
38 entity acting on behalf of a Federal, State, or local agency in
39 carrying out its functions, any other entities authorized by the
40 department, and insurers authorized by the Office of Insurance
41 Regulation to provide motor vehicle insurance. The department

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42 may also establish a web portal or other mechanism that provides
43 the general public with the ability to confirm whether a
44 particular vehicle is currently insured.
45 (b) In real time send requests to insurers for
46 verification of evidence of insurance for motor vehicles
47 registered in this state, and receive confirmation in real time
48 from insurers via electronic means consistent with the
49 specifications and standards of the Insurance Industry Committee
50 on Motor Vehicle Administration (IICMVA), with enhancements,
51 additions, and modifications as required by the department.
52 However, the enhancements, additions, and modifications may not
53 conflict with, nullify, or add requirements that are materially
54 inconsistent with the specifications or standards of the IICMVA.
55 (c) Be operational within 3 years after this act becoming
56 effective. The Motor Vehicle Insurance Online Verification Task
57 Force established ins. 324.255 must conduct a pilot program for
58 at least 9 months to test the system before statewide use. The
59 system may not be used in any enforcement action until
60 successful completion of the pilot program.
61 (d) Be available 24 hours a day, except as provided in
62 paragraph (2) (a), to verify the insurance status of any vehicle
63 registered in this state through the insurer's National
64 Association of Insurance Commissioners (NAIC) company code,
65 Florida Code in combination with other identifiers including
66 vehicle identification number, car make, car model, year,

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67 registered owner's name, policy number, levels/types of
68 coverage, or other characteristics or markers as specified by
69 the Motor Vehicle Insurance Online Verification Task Force.
70 ( e) Include appropriate safeguards and controls to prevent
71 misuse or unauthorized access.
72 (f) Include a disaster recovery plan to ensure service
73 continuity in the event of a disaster.
74 (g) Include information that enables the department to
75 make inquiries of evidence of insurance by using multiple data
76 elements for greater matching accuracy, specifically the
77 insurer's NAIC company code, in combination with other
78 identifiers such as vehicle identification number, policy
79 number, or other characteristics or markers as specified by the
80 Motor Vehicle Insurance Online Verification Task Force or the
81 department.
82 (h) Include a self-reporting mechanism for insurers with
83 fewer than 2,000 vehicles insured within this state or for
84 individual entities that are self-insured.
85 (2) The department has the following powers and duties:
86 (a) Upon an insurer's advance notice to the department,
87 the department shall allow online services established by the
88 insurer to have reasonable downtime for system maintenance and
89 other work, as needed. An insurer is not subject to
90 administrative penalties or disciplinary actions when its online
91 services are not available under such circumstances or when an

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92 outage is unplanned by the insurer and is reasonably outside its
93 control.
94 (b} Upon recommendation of the Motor Vehicle Insurance
95 Online Verification Task Force, the department may develop and
96 operate its own system or competitively procure a private vendor
97 that has personnel with extensive operational and management
98 experience in the development, deployment, and operation of
99 insurance online verification systems.
100 (c) The department and its private vendor, if any, shall
101 each maintain a contact person for the insurers during the
102 establishment, implementation, and operation of the system.
103 (d}The department is authorized to enter into agreements
104 governing the use of the system with any public or private
105 entity accessing the system to verify insurance coverage.
106 (e) The department shall maintain a historical record of
107 the system data for 3 years after the date of any verification
108 request and response.
109 (3) An insurance company authorized to issue insurance
110 policies for motor vehicles registered in this state:
111 (a} Shall comply with the verification requirements of
112 motor vehicle insurance for every motor vehicle insured by that
113 company in this state.
114 (b) Shall maintain policyholder records in order to
115 confirm insurance coverage for 3 years after the date of any
116 verification request and response.
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117 (c) Shall cooperate with the department in establishing,
118 implementing, and maintaining the system.
119 (d) Is immune from civil liability for good faith efforts
120 to comply with this section. An online verification request or
121 response may not be used as the basis of a civil action against
122 an insurer.
123 (4) A law enforcement officer, during a traffic stop or
124 crash investigation, shall query information from the online
125 verification system to establish compliance with this chapter.
126 (5) This section does not apply to vehicles insured under
127 commercial motor vehicle coverage. As used in this subsection,
128 the term "commercial motor vehicle coverage" means any coverage
129 provided to an insured under a commercial coverage form and
130 rated from a commercial manual approved by the Office of
131 Insurance Regulation. However, insurers of such vehicles may
132 participate in the online verification system on a voluntary
133 basis.
134 (6) The department may adopt rules to administer this
135 section.
136 Section 5. Section 324.255, Florida Statutes, is created
137 to read:
138 324.255 Motor Vehicle Insurance Online Verification Task
139 Force.-There is created the Motor Vehicle Insurance Online
140 Verification Task Force within the department.
141 (1) The task force shall:
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142 (a) Facilitate the implementation of the motor vehicle
143 insurance online verification system established ins. 324.252.
144 (b) Assist in the development of a detailed guide for
145 insurers by providing data fields and other information
146 necessary for compliance with the online verification system.
147 (c) Coordinate a pilot program and conduct the program for
148 at least 9 months to test the online verification system and
149 identify necessary changes to be implemented before statewide
150 use.
151 (d) Issue recommendations based on periodic reviews of the
152 online verification system.
153 (2) The task force shall consist of ten voting members and
154 one nonvoting member.
155 (a) The nine voting members shall be appointed by July 31
156 of the year this section becomes effective, in the following
157 manner:
158 1. Three representatives of the department, representing
159 the Florida Highway Patrol, the Division of Motorist Services,
160 and the Information Systems Administration, appointed by the
161 executive director of the department.
162 2. One representative of the Office of Insurance
163 Regulation, appointed by the Commissioner of Insurance.
164 3. Three representatives of the motor vehicle insurance
165 industry, appointed by the Chief Financial Officer as follows:
166 a. One member must represent the motor vehicle insurer
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167 with the largest national market share as of December 31 of the
168 year prior to the appointment.
169 b. One member must represent the motor vehicle insurer
170 with the largest Florida market share as of December 31 of the
171 year prior to the appointment.
172 c. One member must be selected from a list of
173 representatives recommended by the Insurance Industry Committee
174 on Motor Vehicle Administration.
175 4. One representative of the Department of Financial
176 Services, appointed by the Chief Financial Officer.
177 5. One representative of the Division of State Technology,
178 appointed by the secretary of the Department of Management
179 Services.
180 6. One member who must be a member of local law
181 enforcement, appointed by the executive director of the
182 department.
183 (b) The executive director of the department, who shall be
184 a nonvoting member, shall serve as chair of the task force.
185 (3) By September 30 of the year to this section becomes
186 effective, the task force shall meet to establish procedures for
187 the conduct of its business, and the voting members shall elect
188 a vice chair at that meeting. The task force shall meet at the
189 call of the chair, who shall prepare the agenda for each meeting
190 with the consent of the task force. A majority of the voting
191 members of the task force constitutes a quorum, and a quorum is
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192 necessary for the purpose of voting on any action or
193 recommendation of the task force. All meetings shall be held in
194 Tallahassee.
195 (4) The department shall provide the task force members
196 with administrative and technical support. Task force members
197 shall serve without compensation and are not entitled to
198 reimbursement for per diem or travel expenses.
199 (5) By July 1 of the third year following this section
200 becoming effective, the task force shall complete its work and
201 submit its final report evaluating the online verification
202 system's effectiveness and making recommendations for system
203 enhancements to the department, the President of the Senate, and
204 the Speaker of the House of Representatives. Upon submission of
205 the report, the task force shall expire.
206 Section 6. Sections 2 through 5 of this act shall take
207 effect upon a specific appropriation.
208
209

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Amendment No. 2

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Santiago offered the following:
4
5 Amendment
6 Remove lines 694-724 and insert:
7 to be licensed as a salesperson to advertise, solicit,
8 negotiate, or sell motor vehicle service agreements. A motor
9 vehicle service agreement company is not required to be licensed
10 as a salesperson to solicit, sell, issue, or otherwise transact
11 the motor vehicle service agreements issued by the motor vehicle
12 service agreement company.
13 Section 14. Section 634.317, Florida Statutes, is amended
14 to read:
15 634.317 License and appointment required.-~ Ne person may
16 not solicit, negotiate, or effectuate home warranty contracts

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Amendment No. 2

17 for remuneration in this state unless such person is licensed
18 and appointed as a sales representative. A licensed and
19 appointed sales representative shall be directly responsible and
20 accountable for all acts of the licensee's employees. A licensed
21 personal lines or general lines agent is not required to be
22 licensed as a sales representative to advertise, solicit,
23 negotiate, or sell home warranties.
24 Section 15. Section 634.419, Florida Statutes, is amended
25 to read:
26 634.419 License and appointment required.-~ Ne person or
27 entity may not shall solicit, negotiate, advertise, or
28 effectuate service warranty contracts in this state unless such
29 person or entity is licensed and appointed as a sales
30 representative. Sales representatives shall be responsible for
31 the actions of persons under their supervision. However, a
32 service warranty association licensed as such under this part
33 shall not be required to be licensed and appointed as a sales
34 representative to solicit, negotiate, advertise, or effectuate
35 its products. A licensed personal lines or general lines agent
36 is not required to be licensed as a sales representative to
37 advertise, solicit, negotiate, or sell service

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 723 Peer-to-Peer Car Sharing
SPONSOR(S): Fischer
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee Lloyd Cooper

2) Transportation & Infrastructure Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
In recent years, the private market, through the use of the Internet and smart phone technology, has allowed
the development of new forms of direct person to person economic arrangements. Companies have emerged
to facilitate the sharing of motor vehicles such that a private passenger vehicle is given over to another
individual to operate for a period of time. These services are different from transportation network companies,
like Uber, Sidecar, and Lyft, in that another person takes over possession and control of the motor vehicle from
the owner. This is known as peer-to-peer car sharing (car sharing). This is often done for short periods (i.e., for
less than a day with hourly rates). There are similar commercial services available where one can rent a car
from a business on an hourly basis; these are known as car sharing services and are similar to but distinct
from traditional rental car companies.

The bill establishes statutory requirements for car sharing, including the liabilities and insurance obligations
among participants to a car sharing agreement. The bill:

• Defines terms, including "peer-to-peer car sharing," which is the authorized use of a motor vehicle by
an individual other than the vehicle's owner through a peer-to-peer car sharing program. Further, it is
not rental, for-hire, or joint use of motor vehicles, such as ridesharing or carpooling.
• Establishes insurance requirements for each party involved in car sharing. During the period that the
owner is sharing the car to another driver, the car sharing program (e.g., Turo, Drift, and Getaround) is
responsible for providing motor vehicle insurance at or above the statutory minimums for private
passenger motor vehicles. It coordinates coverage if there are multiple insurance policies involved and
depending on the circumstances. If the owner's or driver's policy lapses or is inadequate, the program
is responsible for the insurance requirements.
• Allows motor vehicle insurers insuring the shared vehicle owner to exclude coverage for use of the
vehicle in car sharing.
• Provides that the car sharing program and vehicle owner are not vicariously liable for the actions and
damages of the driver during periods of car sharing use.
• Specifies recordkeeping requirements and retention periods.
• Includes requirements for consumer protection notifications.
• Addresses the repair, use, and non-use of motor vehicles under a safety recall notice.
• Provides that the bill does not limit the liability of the car sharing program for its acts or omissions that
cause bodily harm during car sharing; nor, the owner or driver to the car sharing program for economic
losses due to a breach of contract.

The bill has no impact on state or local revenues or expenditures. It has a positive impact on the private sector.

The bill is effective on March 1, 2021.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Background

In recent years, the private market, using the Internet and smart phone technology, has allowed the
development of new forms of direct person to person economic arrangements. Transportation network
companies have organized to allow individuals to earn extra income by sharing rides in their personal
cars. Entities like Uber, Lyft, and Sidecar facilitate the connection of individuals seeking rides with those
offering rides and manage payment transactions for the service. Because of questions over safety,
regulations, and insurance considerations, the Legislature passed CS/HB 221 1 in 2017 to preempt local
regulations and establish statutory requirements for transportation network companies, including
defining insurance liabilities and standards.

In a manner similar to transportation network companies, new companies have emerged to facilitate
the sharing of motor vehicles such that a private passenger vehicle is given over to another individual
to operate for a period. This is known as peer-to-peer car sharing. This is often done for short periods
(i.e., for less than a day with hourly rates). There are similar commercial services available where one
can rent a car from a business on an hourly basis; these are called car sharing services and are distinct
from traditional rental car companies. 2

There are no statutes specifically regulating the standards and requirements applicable to peer-to-peer
car sharing.

Renting a Motor Vehicle to Another

Current law establishes the requirements for a person (including natural persons and businesses) who
wishes to rent a motor vehicle to another. 3 These include requiring: inspection of the driver license of
the person to whom the vehicle is to be rented; and, comparing and verifying the signature thereon with
the signature of such person written in his or her presence before the vehicle can be rented. Further,
record must keep of the registration number of the motor vehicle rented, the name and address of the
person renting and the number, date, and place of issue.

Peer-to-Peer Car Sharing

In peer-to-peer car sharing (car sharing), owners interested in renting their vehicles can register as a
host on a car sharing site. 4 Sites require photos of the car and help the owner determine a rental fee
based on the location and type of car. The host then specifies the car's availability. The host may
choose to have the car picked up at his or her house, deliver the vehicle, or have it picked up at an
another location, such as an airport. Hosts typically receive between 65 and 75 percent of rental fees.
Payments are typically made to the owner through direct deposit. 5 The site provides the recordkeeping
necessary to the transaction and in compliance with requirements of law.

Renters also register with the car sharing site. The site will conduct a background check and look at the
renters' driving records before approving them. The rental process involves choosing an available car,
reserving a rental date and time, and providing credit card information if it is not already on file. At the

1
Ch. 2017-12, Laws ofFla.
2
S. 212.0606, F.S.
3
S. 322.38, F.S.,
4
Turo, Getaround, and Drift are examples of car sharing websites/applications.
5 Russ Heaps, The Good, Bad and Ugly of Peer-to-Peer Car Sharing, Autotrader, (February 2015), https://www.autotrader.com/car-shopping/good-

bad-and-ugly-pccr-peer-car-sharing-234961 (last visited Jan. 25, 2020).
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end of the rental period, the driver replaces any consumed fuel before returning the car to its pickup
location. 6

One car sharing website, Turo.com, reports that its company has users in 56 countries in over 5,500
cities across the world. It also has over 850 makes and models of vehicles and offers up to $1 million in
liability insurance. 7 The average host earns $500 per month. Hosts with three or more cars average
over $3,000 per month. 8

Car Sharing Service

For the purposes of defining the applicability of the rental car surcharge9 authorized by s. 212.0606,
F.S., a "car sharing service" is a membership-based organization or business that requires the payment
of an application or membership fee and provides member access to motor vehicles:

• Only at locations that are not staffed by car sharing service personnel employed solely for the
purpose of interacting with car sharing service members;
• Twenty-four hours per day, seven days per week;
• Only through automated means, which may include, but are not limited to, smartphone
applications or electronic membership cards;
• On hourly or shorter increments;
• Without a separate fee for refueling the motor vehicle;
• Without a separate fee for minimum financial responsibility liability insurance; and
• Owned or controlled by the car sharing service or its affiliates.

The car rental surcharge applicable to car sharing services does not apply to the lease, rental, or usage
of a motor vehicle from a location-owned, operated, or leased by or for the benefit of an airport or
airport authority. 10

For-Hire Vehicles

With certain exceptions, offering for lease or rent any motor vehicle in the State of Florida qualifies the
vehicle as a "for-hire vehicle." Specifically, s. 320.01(15)(a), F.S., provides:

"For-hire vehicle" means any motor vehicle, when used for transporting persons or goods for
compensation; let or rented to another for consideration; offered for rent or hire as a means of
transportation for compensation; advertised in a newspaper or generally held out as being for
rent or hire; used in connection with a travel bureau; or offered or used to provide transportation
for persons solicited through personal contact or advertised on a "share-expense" basis. When
goods or passengers are transported for compensation in a motor vehicle outside a municipal
corporation of this state, or when goods are transported in a motor vehicle not owned by the
person owning the goods, such transportation is "for hire". The carriage of goods and other
personal property in a motor vehicle by a corporation or association for its stockholders,
shareholders, and members, cooperative or otherwise, is transportation "for hire".

Documentation Required for Operation of a Vehicle

Section 320.0605(1), F.S., requires that at all times while a vehicle is being used or operated on the
roads of Florida, the operator of the vehicle must be in the possession of:

6 Id.
7
Turo, About Turo, https://turo.com/en-us/about (last visited Jan. 25, 2020).
s Id.
9
A rental car surcharge of $2.00 per day for each day of the first 30 days of a car rental and $1.00 per day for a car sharing service, if the rental by
the service is less than 24 hours, is required to be collected and paid to the state. S. 212.0606, F.S.
10
S. 212.0606(2), F.S.
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• The registration certificate or an official copy;
• A true copy of rental or lease documentation issued for a motor vehicle or issued for a
replacement vehicle in the same registration period;
• A temporary receipt printed upon self-initiated electronic renewal of a registration via the
Internet; or
• A cab card issued for a vehicle registered under the International Registration Plan.

The certificate or document must be exhibited upon demand of any authorized law enforcement officer
or agent of the Department of Highway Safety and Motor Vehicles (DHSMV), except for a registered
fleet vehicle. 11 This provision does not apply during the first 30 days after purchase of a replacement
vehicle. A violation is a noncriminal traffic infraction, punishable as a nonmoving violation as provided in
Chapter 318, F.S. 12

Section 320.0605(2), F.S., specifies that the rental or lease documentation must include:

• Date of rental and time of exit from rental facility;
• Rental station identification;
• Rental agreement number;
• Rental vehicle identification number;
• Rental vehicle license plate number and state of registration;
• Vehicle's make, model, and color;
• Vehicle's mileage; and
• Authorized renter's name.

Effect of the Bill

The bill creates a new section of the Florida Insurance Code 13 providing requirements for "peer-to-peer
car sharing," also called "car sharing" in the bill. Car sharing is the authorized use of a "shared vehicle"
(vehicle or car) through a "peer-to-peer car sharing program" 14 (program) by an individual, the "shared
vehicle driver" (driver), that is not the "shared vehicle owner" (owner). The following terms relevant to
the events and roles involved in car sharing are also defined:

• "Car sharing delivery period"
• "Car sharing start time"
• "Car sharing termination time"
• "Peer-to-peer car sharing" or "car sharing"
• "Peer-to-peer car sharing program"
• "Peer-to-peer car sharing program agreement"
• "Shared vehicle"
• "Shared vehicle driver"

11
A fleet vehicle registered under s. 320.0657, F.S., provides for the permanent registration of fleet license plates.
12
Chapter 318, F.S., relates to the disposition of traffic infractions.
13
The Florida Insurance Code is chapters 624-632, 634,635,636,641,642,648, and 651, F.S. S. 624.01, F.S.
14
The bill defines "peer-to-peer car sharing program" as a business platform that enables peer-to-peer car sharing by connecting motor vehicle
owners with drivers for financial consideration. It does not include a rental car company, taxi cab association, the owner of a for-hire vehicle, or a car
sharing service.
A "for-hire vehicle" means any motor vehicle, when used for transporting persons or goods for compensation; let or rented to another for
consideration; offered for rent or hire as a means of transportation for compensation; advertised in a newspaper or generally held out as being for rent
or hire; used in connection with a travel bureau; or offered or used to provide transportation for persons solicited through personal contact or
advertised on a "share-expense" basis. When goods or passengers are transported for compensation in a motor vehicle outside a municipal
corporation of this state, or when goods are transported in a motor vehicle not owned by the person owning the goods, such transportation is "for
hire." The carriage of goods and other personal property in a motor vehicle by a corporation or association for its stockholders, shareholders, and
members, cooperative or otherwise, is transportation "for hire." S. 320.01(15), F.S.
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• "Shared vehicle owner" 15

Where applicable, exceptions are provided by the bill to establish car sharing as concept separate from
current laws governing rental, for-hire, or joint use of motor vehicles, such as ridesharing or carpooling.

Car Sharing Insurance Requirements

The program is required to ensure that the owner and driver of the vehicle have the following motor
vehicle insurance, which are the statutory minimums required for private passenger motor vehicles,
during car sharing periods:

• Property damage coverage of at least $10,000;
• Bodily injury coverage of at least $10,000 for injury to one person and $20,000 for injury to two
or more persons;
• Personal injury protection of $10,000; and
• Uninsured/underinsured motorist coverage, as required bys. 627.727, F.S. 16

The program must also ensure that the insurance coverage above either recognizes the use of the
vehicle in car sharing or does not exclude shared use. Compliant insurance coverage may be
maintained by the vehicle owner, driver, the program, or any combination thereof, which will be the
primary insurance coverage during periods the vehicle is shared. If the owner's or driver's insurance
lapses or does not provide the required coverage, the program's coverage must provide coverage as if
it were primary from day one, i.e., provide coverage from the first dollar claimed. Further, the program's
coverage must not require that a claim be denied by another insurer. The program is authorized to
maintain multiple insurance policies to meet its obligations. 17

Liabilities and Exclusions

If it is determined that the vehicle owner was in control 18 of the vehicle at the time of a loss, the owner
shall indemnify the program for the liabilities it assumes under the bill.

During shared periods, the program assumes the liability of the vehicle owner for bodily injury and
property damage to third parties, uninsured/underinsured motorists, and personal injury protection
coverages in the amount specified in the car sharing agreement, which must meet statutory minimums.
This shifting of liability is void if the owner makes an intentional or fraudulent material misrepresentation
or omission to the program before the sharing period when the loss occurred or if the owner acts in
concert with a vehicle driver who fails to return the vehicle as provided in the sharing agreement.

If a dispute exists about who was in control of a vehicle at the time of a loss and the program does not
have, did not retain, or fails to provide specific required information, the program will have primary
liability for a claim.

If the owner's insurer defends or indemnifies a claim related to a vehicle that it has excluded from
coverage and for which it is not liable under the bill, the owner's insurer is entitled to contribution from
the program's insurer under certain conditions.

15
The bill defines "shared vehicle owner" as the registered owner, or a person or entity designated by the registered owner, of a motor vehicle made
available for sharing to shared vehicle drivers through a peer-to-peer car sharing program. Therefore, an individual or a business may "stand in the
shoes" of the registered owner for purpose of any responsibility or obligation of the owner under the bill.
16
While uninsured/underinsured motorist coverage is required to be offered to every purchaser of motor vehicle insurance in this state, the purchaser
may reject such coverage in writing. S. 627. 727(1 ), F.S. Therefore, such insurance is elective.
17
The program has an insurable interest in the shared vehicle. Also, it may meet its insurance obligations by purchasing insurance from an admitted
insurer, which means claims are backed by the Florida Insurance Guaranty Association, in the event the insurer becomes insolvent, or the insurance
may be purchased from an authorized surplus lines company, provided the company carries a minimum rating specified by the bill.
18
See Section III.C. Drafting Issues or Other Comments.
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Exemption from Vicarious Liability

The program and the shared vehicle owner are exempted from vicarious liability under any local or
state law that imposes liability based on vehicle ownership. 19 This means that the actions and liabilities
of the driver cannot be imputed to be those of the program or the vehicle owner.

Motor Vehicle Insurance Policy Exclusions

The bill specifies that a motor vehicle insurer may exclude coverage and the duty to defend or
indemnify any claim under an owner's policy, including, but not limited to, all types of motor vehicle
coverage. The bill provides current insurance policies approved for use in Florida that exclude
coverage of vehicles offered for rent, sharing, or hire or for any business use are not invalidated or
limited.

Notification Regarding Liens

If the vehicle has a lien against it at the time it is registered for use within the program, the program
must notify the owner that using the vehicle for car sharing may violate the terms of the contract with
the lienholder.

Required Recordkeeping

The program must collect and verify records regarding vehicle use, including:

• The times used;
• Fees paid by the driver; and
• Revenues received by the owner.

These records must be retained for at least the duration of the statute of limitations for personal injuries
and provided on request to the vehicle owner, the owner's insurer, or the vehicle driver's insurer. The
following records must also be kept by the program: 20

• The name and address of the driver;
• The driver license number of the driver and each other person, if any, who will operate the
vehicle; and
• The place of issuance of the driver license.

Consumer Protections

The sharing agreement must include the following disclosures to the owner and driver:

• Any right of the program to seek indemnification from either the owner or driver for economic
losses due to a breach of contract;
• A motor vehicle insurance policy issued to the owner for the vehicle or to the driver does not
provide a defense or indemnification for any claim asserted by the program;
• The program's insurance is only in effect during the sharing period;

19
The bill references the federal Graves Amendment, 49 U.S.C. 30106 (2005). The Graves Amendment provides that the owner of a motor vehicle
who engages in the business of renting or leasing vehicles and has not been negligent or committed a crime is not liable for the damages caused by a
renter/lessee during the rental or lease period merely based on being the owner of the rented or leased vehicle. The Graves Amendment defines owner
as a person who is-
( A) a record or beneficial owner, holder of title, lessor, or lessee of a motor vehicle;
(8) entitled to the use and possession of a motor vehicle subject to a security interest in another person; or
(C) a lessor, lessee, or a bailee of a motor vehicle, in the trade or business of renting or leasing motor vehicles, having the use or possession
thereof, under a lease, bailment, or otherwise.
20
See Section III.C. Drafting Issues or Other Comments.
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• If the driver uses the vehicle beyond the agreed termination time, the owner and driver may not
have insurance coverage;
• The daily rate, fees, and, if applicable, any insurance or protection package costs that are
charged to the owner or the driver;
• The vehicle owner's motor vehicle liability insurance may exclude coverage for a vehicle;
• An emergency telephone number of the personnel capable of fielding calls for roadside
assistance and other customer service inquiries; and
• Any conditions under which a vehicle driver must maintain a personal motor vehicle insurance
policy with certain coverage on a primary basis in order to book a vehicle.

The program may not enter into an agreement with a driver, unless the driver:

• Holds a Florida driver license of the type required for the class of vehicle shared;
• Holds a driver license issued by the driver's state or country of the type required for the class of
vehicle and the driver is the minimum age to operate a vehicle in Florida; or
• Is specifically authorized by DHSMV to drive vehicles of the class shared.

The program is solely responsible for program equipment installed in or on the vehicle for the purposes
of allowing use of the vehicle in car sharing through the program. The program must indemnify the
owner for any damage to or theft of such equipment during share periods that is not caused by the
owner; the program may seek indemnification from the driver for such damage.

Motor Vehicle Safety Recalls

The program must verify the recall and repair status of the vehicle when it is registered for use with the
program. The owner must be notified by the program that: vehicles under recall cannot be shared until
repaired; if the owner receives a recall notice while the vehicle is available for sharing, the vehicle must
be removed from sharing as soon as practicable; and, if the vehicle is in the possession of a driver, the
owner shall notify the program as soon as practicable so that it can be repaired. 21

Construction

The bill specifically provides that it does not limit the liability of the program for acts and omissions by
the program that cause bodily harm to a person as a result of car sharing. It also provides that it does
not limit the program's right to contract for indemnification from owners or drivers for economic losses
due to a breach of contract.

B. SECTION DIRECTORY:
Section 1. Creates s. 627.7483, F.S., relating to peer-to-peer car sharing; insurance requirements.

Section 2. Provides an effective date of March 1, 2021.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None known.

2. Expenditures:
None known.

21 Id.
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B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None known.

2. Expenditures:
None known.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Providing specific requirements and delineating insurance obligations and liabilities of the various
parties to a peer-to-peer car sharing agreement may increase economic activity and avoid litigation
over the scope of each party's liability.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
The bill neither authorizes nor requires administrative rulemaking.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill neither authorizes nor requires administrative rulemaking.

C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill defines a "shared vehicle owner" a the registered owner, or a person or entity designated by
the registered owner, of a motor vehicle made available for sharing to drivers through a peer-to-peer
car sharing program. The bill uses the term "shared vehicle owner" exclusively in the context of the role
of the registered owner of the motor vehicle. It does not provide a separate context for when a person
or entity designated owner would act on behalf of the owner or limit the liability of designated person or
entity to only the liabilities that could arise from their actions performed in the interest of the owner.
Therefore, all responsibilities, obligations, and liabilities that the bill places on the owner are shared
entirely by the designee, without limitation. This may create a situation where a person is designated
only to facilitate delivery or return of a vehicle and they become liable for all of the owner's insurance
obligations with respect to the vehicle and the program.

On line 98, the bill uses the phrase "person or entity," as described above regarding the owner. The
general definition of the word "person" in statute includes individuals, children, firms, associations, joint
adventures, partnerships, estates, trusts, business trusts, syndicates, fiduciaries, corporations, and all
other groups or combinations. 22 Given that the term "person" is broadly defined to include various types
of "person" that are usually considered "entities," it is unclear what the difference is between the two
parts of the phrase "person or entity." If "person" in this context is meant to be an individual or a natural
person, then the phrase should be clarified to avoid confusion.

22
S. 1.01(3), F.S.
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The bill requires the car sharing program to ensure that the owner and driver of a vehicle have
uninsured/underinsured motorist coverage as required by law. The uninsured/underinsured motorist
coverage statute is elective. However, on lines 175-182, the bill shifts liability for specified coverages
from the owner to the program, including liability to uninsured/underinsured motorists. This language
implies that the program is required to provide uninsured/underinsured motorist coverage meeting or
exceeding statutory minimums. It is unclear if the intent of the bill is to require uninsured/underinsured
motorist coverage, despite its elective status or to allow the program to accept arrangements and be
free from liability where the owner and or the driver have rejected uninsured/underinsured motorist
coverage.

The bill is modeled on the statute governing transportation network companies, s. 627.748, F.S. On line
150, the word "network" appears where context indicates that the term should be "car sharing program."
This is likely a scrivener's error.

The bill defines that the "car sharing termination time" is when agreed use time ends and the vehicle is
returned to the agreed upon location, the vehicle is returned to an alternate agreed upon location, or
the vehicle owner takes possession and control of the vehicle. In three instances, the bill provides for
limitations or liabilities when the vehicle owner is in control of the vehicle. It is unclear if references to
"in control" and "in possession and control" are intended to have the same meaning. Further, it is
unclear if "in control" refers to an individual actively operating the vehicle or if it means the general
responsibility for a vehicle by means of being able to exclude others from its use without permission.
Since a clear understanding of this term is needed to understand the extent of liability shifting between
the owner and the program, the use of the term may need to be clarified.

On lines 288-290, the bill requires designation of personnel capable of fielding calls for roadside
assistance and other customer service inquiries. It is not clear to whom the term "personnel" refers to
for this purpose.

On lines 312-318, the bill specifies certain records that the program must keep. This occurs in a section
titled "Consumer Protections" rather than in an earlier section titled "Recordkeeping." The
recordkeeping requires the retention of a non-exclusive list specified records for a designated period. It
is unclear if listing additional recordkeeping requirements in another portion of the bill is subject to the
same retention period. It may avoid confusion to list all recordkeeping requirements in a single section
of the bill.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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F L O R D A H O U S E 0 F R E P R E S E N T A T V E S

HB 723 2020

1 A bill to be entitled
2 An act relating to peer-to-peer car sharing; creating
3 s. 627.7483, F.S.; providing definitions; providing
4 motor vehicle insurance requirements for peer-to-peer
5 car sharing; providing that peer-to-peer car-sharing
6 programs have an insurable interest in shared vehicles
7 in specified periods; authorizing peer-to-peer car-
s sharing programs to own and maintain certain policies
9 of motor vehicle insurance; providing liabilities
10 under certain circumstances; providing applicability;
11 requiring shared vehicle owners' insurers to indemnify
12 networks under certain circumstances; providing
13 exemptions from vicarious liabilities; authorizing
14 motor vehicle insurance policies to exclude specified
15 coverages under certain circumstances; authorizing
16 specified insurers to seek contributions against
17 indemnifications under certain circumstances;
18 providing requirements for notifications of
19 implications of liens; providing requirements for
20 recordkeeping; requiring specified disclosures to
21 shared vehicle drivers and owners; requiring driver
22 license verification and data retention under certain
23 circumstances; providing responsibilities and
24 indemnifications for specified equipment; providing
25 requirements for verification and notification

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26 relating to motor vehicle safety recalls; providing
27 construction; providing an effective date.
28
29 Be It Enacted by the Legislature of the State of Florida:
30
31 Section 1. Section 627.7483, Florida Statutes, is created
32 to read:
33 627.7483 Peer-to-peer car sharing; insurance
34 requirements.-
35 (1) DEFINITIONS.-As used in this section, the term:
36 (a) "Car-sharing delivery period" means the period of time
37 during which a shared vehicle is being delivered to the location
38 of the car-sharing start time, if applicable, as documented by
39 the governing peer-to-peer car-sharing program agreement.
40 (b) "Car-sharing period" means the period of time that
41 commences either at the car-sharing delivery period or, if there
42 is no car-sharing delivery period, at the car-sharing start time
43 and that ends at the car-sharing termination time.
44 (c) "Car-sharing start time" means the time when the
45 shared vehicle is under the control of the shared vehicle
46 driver, which time occurs at or after the time the reservation
47 of the shared vehicle is scheduled to begin, as documented in
48 the records of a peer-to-peer car-sharing program.
49 (d) "Car-sharing termination time" means the earliest of
50 the following events:

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51 1. The expiration of the agreed-upon period of time
52 established for the use of a shared vehicle according to the
53 terms of the peer-to-peer car-sharing program agreement if the
54 shared vehicle is delivered to the location agreed upon in the
55 peer-to-peer car-sharing program agreement;
56 2. The time the shared vehicle is returned to a location
57 as alternatively agreed upon by the shared vehicle owner and
58 shared vehicle driver, as communicated through a peer-to-peer
59 car-sharing program; or
60 3. The time the shared vehicle owner takes possession and
61 control of the shared vehicle.
62 ( e) "Peer-to-peer car sharing" or "car sharing" means the
63 authorized use of a motor vehicle by an individual other than
64 the vehicle's owner through a peer-to-peer car-sharing program.
65 For the purposes of this section, the term does not include the
66 renting of a motor vehicle through a rental car company, the use
67 of a for-hire vehicle as defined ins. 320.01(15), ridesharing
68 as defined ins. 341.031(9), carpool as defined ins. 450.28(3),
69 or the use of a motor vehicle under an agreement for a car-
70 sharing service as defined ins. 212.0606(2).
71 (f) "Peer-to-peer car-sharing program" means a business
72 platform that enables peer-to-peer car sharing by connecting
73 motor vehicle owners with drivers for financial consideration.
74 For the purposes of this section, the term does not include a
75 rental car company, a car-sharing service as defined ins.

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76 212.0606(2), a taxicab association, or the owner of a for-hire
77 vehicle as defined ins. 320.01(15).
78 (g) "Peer-to-peer car-sharing program agreement" means the
79 terms and conditions established by the peer-to-peer car-sharing
80 program which are applicable to a shared vehicle owner and a
81 shared vehicle driver and which govern the use of a shared
82 vehicle through a peer-to-peer car-sharing program. For the
83 purposes of this section, the term does not include a rental
84 agreement or an agreement for a for-hire vehicle as defined in
85 s. 320.01(15) or for a car-sharing service as defined ins.
86 212.0606(2).
87 (h) "Shared vehicle" means a motor vehicle that is
88 available for sharing through a peer-to-peer car-sharing
89 program. For the purposes of this section, the term does not
90 include a rental car, a for-hire vehicle as defined ins.
91 320.01(15), or a motor vehicle used for ridesharing as defined
92 ins. 341.031(9), for carpool as defined ins. 450.28(3), or for
93 car-sharing service as defined ins. 212.0606(2).
94 (i) "Shared vehicle driver" means an individual who has
95 been authorized by the shared vehicle owner to drive the shared
96 vehicle under the peer-to-peer car-sharing program agreement.
97 (j) "Shared vehicle owner" means the registered owner, or
98 a person or entity designated by the registered owner, of a
99 motor vehicle made available for sharing to shared vehicle
100 drivers through a peer-to-peer car-sharing program. For the

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101 purposes of this section, the term does not include an owner of
102 a for-hire vehicle as defined ins. 320.01(15)
103 (2) INSURANCE COVERAGE REQUIREMENTS.-
104 (a)l. A peer-to-peer car-sharing program shall ensure
105 that, during each car-sharing period, the shared vehicle owner
106 and the shared vehicle driver are insured under a motor vehicle
107 insurance policy that provides all of the following:
108 a. Property damage liability coverage that meets the
109 minimum coverage amounts required under s. 324.022.
110 b. Bodily injury liability coverage limits as described in
111 s . 3 2 4 . 0 21 ( 7 ) (a) and ( b) .
112 c. Personal injury protection benefits that meet the
113 minimum coverage amounts required under s. 627.736.
114 d. Uninsured and underinsured vehicle coverage as required
115 under s. 627.727.
116 2. The peer-to-peer car-sharing program shall also ensure
117 that the motor vehicle insurance policy under subparagraph 1.:
118 a. Recognizes that the shared vehicle insured under the
119 policy is made available and used through a peer-to-peer car-
120 sharing program; or
121 b. Does not exclude the use of a shared vehicle by a
122 shared vehicle driver.
123 (b)l. The insurance described under paragraph (a) may be
124 satisfied by a motor vehicle insurance policy maintained by:
125 a. A shared vehicle owner;

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126 b. A shared vehicle driver;
127 c. A peer-to-peer car-sharing program; or
128 d. A combination of a shared vehicle owner, a shared
129 vehicle driver, and a peer-to-peer car-sharing program.
130 2. The insurance policy maintained in subparagraph 1.
131 which satisfies the insurance requirements under paragraph (a)
132 is primary during each car-sharing period.
133 3.a. If the insurance maintained by a shared vehicle owner
134 or shared vehicle driver in accordance with subparagraph 1. has
135 lapsed or does not provide the coverage required under paragraph
136 (a), the insurance maintained by the peer-to-peer car-sharing
137 program must provide the coverage required under paragraph (a),
138 beginning with the first dollar of a claim, and must defend such
139 claim, except under circumstances as set forth in subparagraph
140 (3) (a) 2.

141 b. Coverage under a motor vehicle insurance policy
142 maintained by the peer-to-peer car-sharing program must not be
143 dependent on another motor vehicle insurer first denying a
144 claim, and another motor vehicle insurance policy is not
145 required to first deny a claim.
146 c. Notwithstanding any other law, statute, rule, or
147 regulation to the contrary, a peer-to-peer car-sharing program
148 has an insurable interest in a shared vehicle during the car-
149 sharing period. This sub-subparagraph does not create liability
150 for a network for maintaining the coverage required under

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151 paragraph (a) and under this paragraph, if applicable.
152 d. A peer-to-peer car-sharing program may own and maintain
153 as the named insured one or more policies of motor vehicle
154 insurance which provide coverage for:
155 (I) Liabilities assumed by the peer-to-peer car-sharing
156 program under a peer-to-peer car-sharing program agreement;
157 (II) Liability of the shared vehicle owner;
158 (III) Liability of the shared vehicle driver;
159 (IV) Damage or loss to the shared motor vehicle; or
160 (V) Damage, loss, or injury to persons or property to
161 satisfy the personal injury protection and uninsured and
162 underinsured motorist coverage requirements of this section.
163 e. Insurance required under paragraph (a), when maintained
164 by a peer-to-peer car-sharing program, may be provided by an
165 insurer authorized to do business in this state which is a
166 member of the Florida Insurance Guaranty Association or an
167 eligible surplus lines insurer that has a superior, excellent,
168 exceptional, or equivalent financial strength rating by a rating
169 agency acceptable to the office. A peer-to-peer car-sharing
170 program is not transacting in insurance when it maintains the
171 insurance required under this section.
172 (3) LIABILITIES AND INSURANCE EXCLUSIONS.-
173 (a) Liability.-
174 1. A peer-to-peer car-sharing program shall assume
175 liability, except as provided in subparagraph 2., of a shared

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176 vehicle owner for bodily injury or property damage to third
177 parties or uninsured and underinsured motorist or personal
178 injury protection losses during the car-sharing period in an
179 amount stated in the peer-to-peer car-sharing program agreement,
180 which amount may not be less than those set forth in ss.
181 324.021(7)(a) and (b), 324.022, 627.727, and 627.736,
182 respectively.
183 2. The assumption of liability under subparagraph 1. does
184 not apply if a shared vehicle owner:
185 a. Makes an intentional or fraudulent material
186 misrepresentation or omission to the peer-to-peer car-sharing
187 program before the car-sharing period in which the loss occurs;
188 or
189 b. Acts in concert with a shared vehicle driver who fails
190 to return the shared vehicle pursuant to the terms of the peer-
191 to-peer car-sharing program agreement.
192 3. A peer-to-peer car-sharing program shall assume primary
193 liability for a claim when it is in whole or in part providing
194 the insurance required under paragraph ( 2) (a) and:
195 a. A dispute exists as to who was in control of the shared
196 motor vehicle at the time of the loss; and
197 b. The peer-to-peer car-sharing program does not have
198 available, did not retain, or fails to provide the information
199 required under subsection (5).
200

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201 The shared vehicle owner's insurer shall indemnify the peer-to-
202 peer car-sharing program to the extent of the insurer's
203 obligation, if any, under the applicable insurance policy if it
204 is determined that the shared vehicle owner was in control of
205 the shared motor vehicle at the time of the loss.
206 (b) Vicarious liability.-A peer-to-peer car-sharing
207 program and a shared vehicle owner are exempt from vicarious
208 liability consistent with 49 U.S.C. s. 30106 (2005) under any
209 state or local law that imposes liability solely based on
210 vehicle ownership.
211 (c) Exclusions in motor vehicle insurance policies.-An
212 authorized insurer that writes motor vehicle liability insurance
213 in this state may exclude any and all coverage and the duty to
214 defend or indemnify for any claim afforded under a shared
215 vehicle owner's motor vehicle insurance policy, including, but
216 not limited to:
217 1. Liability coverage for bodily injury and property
218 damage;
219 2. Personal injury protection coverage;
220 3. Uninsured and underinsured motorist coverage;
221 4. Medical payments coverage;
222 5. Comprehensive physical damage coverage; and
223 6. \collision physical damage coverage.
224
225 This paragraph does not invalidate or limit any exclusion

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226 contained in a motor vehicle insurance policy, including any
227 insurance policy in use or approved for use which excludes
228 coverage for motor vehicles made available for rent, sharing, or
229 hire or for any business use.
230 (d) Contribution against indemnification.-A shared vehicle
231 owner's motor vehicle insurer that defends or indemnifies a
232 claim against a shared vehicle which is excluded under the terms
233 of its policy has the right to seek contribution against the
234 motor vehicle insurer of the peer-to-peer car-sharing program if
235 the claim is:
236 1. Made against the shared vehicle owner or the shared
237 vehicle driver for loss or injury that occurs during the car-
238 sharing period; and
239 2. Excluded under the terms of its policy.
240 (4) NOTIFICATION OF IMPLICATIONS OF LIEN.-At the time a
241 motor vehicle owner registers as a shared vehicle owner on a
242 peer-to-peer car-sharing program and before the shared vehicle
243 owner may make a shared vehicle available for car sharing on the
244 peer-to-peer car-sharing program, the peer-to-peer car-sharing
245 program must notify the shared vehicle owner that, if the shared
246 vehicle has a lien against it, the use of the shared vehicle
247 through a peer-to-peer car-sharing program, including the use
248 without physical damage coverage, may violate the terms of the
249 contract with the lienholder.
250 (5) RECORDKEEPING.-A peer-to-peer car-sharing program

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251 shall:
252 (a) Collect and verify records pertaining to the use of a
253 shared vehicle, including, but not limited to, the times used,
254 fees paid by the shared vehicle driver, and revenues received by
255 the shared vehicle owner.
256 (b) Retain the records in paragraph (a) for a time period
257 not less than the applicable personal injury statute of
258 limitations.
259 (c) Provide the information contained in the records in
260 paragraph (a) upon request to the shared vehicle owner, the
261 shared vehicle owner's insurer, or the shared vehicle driver's
262 insurer to facilitate a claim coverage investigation.
263 (6) CONSUMER PROTECTIONS.-
264 (a) Disclosures.-Each peer-to-peer car-sharing program
265 agreement made in this state must disclose to the shared vehicle
266 owner and the shared vehicle driver:
267 1. Any right of the peer-to-peer car-sharing program to
268 seek indemnification from the shared vehicle owner or the shared
269 vehicle driver for economic loss resulting from a breach of the
270 terms and conditions of the peer-to-peer car-sharing program
271 agreement.
272 2. That a motor vehicle insurance policy issued to the
273 shared vehicle owner for the shared vehicle or to the shared
274 vehicle driver does not provide a defense or indemnification for
275 any claim asserted by the peer-to-peer car-sharing program.

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276 3. That the peer-to-peer car-sharing program's insurance
277 coverage on the shared vehicle owner and the shared vehicle
278 driver is in effect only during each car-sharing period and
279 that, for any use of the shared vehicle by the shared vehicle
280 driver after the car-sharing termination time, the shared
281 vehicle driver and the shared vehicle owner may not have
282 insurance coverage.
283 4. The daily rate, fees, and, if applicable, any insurance
284 or protection package costs that are charged to the shared
285 vehicle owner or the shared vehicle driver.
286 5. That the shared vehicle owner's motor vehicle liability
287 insurance may exclude coverage for a shared vehicle.
288 6. An emergency telephone number of the personnel capable
289 of fielding calls for roadside assistance and other customer
290 service inquiries.
291 7. Any conditions under which a shared vehicle driver must
292 maintain a personal motor vehicle insurance policy with certain
293 applicable coverage limits on a primary basis in order to book a
294 shared vehicle.
295 (b) Driver license verification and data retention.-
296 1. A peer-to-peer car-sharing program may not enter into a
297 peer-to-peer car-sharing program agreement with a driver unless
298 the driver:
299 a. Holds a driver license issued under chapter 322 which
300 authorizes the driver to drive vehicles of the class of the

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301 shared vehicle;
302 b. Is a nonresident who:
303 (I) Holds a driver license issued by the state or country
304 of the driver's residence which authorizes the driver in that
305 state or country to drive vehicles of the class of the shared
306 vehicle; and
307 (II) Is at least the same age as that required of a
308 resident to drive; or
309 c. Is otherwise specifically authorized by the Department
310 of Highway Safety and Motor Vehicles to drive vehicles of the
311 class of the shared vehicle.
312 2. A peer-to-peer car-sharing program shall keep a record
313 of:
314 a. The name and address of the shared vehicle driver;
315 b. The number of the driver license of the shared vehicle
316 driver and each other person, if any, who will operate the
317 shared vehicle; and
318 c. The place of issuance of the driver license.
319 (c) Responsibility for equipment.-A peer-to-peer car-
320 sharing program has sole responsibility for any equipment that
321 is put in or on the shared vehicle to monitor or facilitate the
322 peer-to-peer car-sharing transaction, including a GPS system.
323 The peer-to-peer car-sharing program shall indemnify and hold
324 harmless the shared vehicle owner for any damage to or theft of
325 such equipment during the car-sharing period which is not caused

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326 by the shared vehicle owner. The peer-to-peer car-sharing
327 program may seek indemnity from the shared vehicle driver for
328 any damage to or loss of such equipment which occurs during the
329 car-sharing period.
330 (d) Motor vehicle safety recalls.-At the time a motor
331 vehicle owner registers as a shared vehicle owner on a peer-to-
332 peer car-sharing program and before the shared vehicle owner may
333 make a shared vehicle available for car sharing on the peer-to-
334 peer car-sharing program, the peer-to-peer car-sharing program
335 must:
336 1. Verify that the shared vehicle does not have any safety
337 recalls on the vehicle for which the repairs have not been made;
338 and
339 2. Notify the shared vehicle owner that if the shared
340 vehicle owner:
341 a. Has received an actual notice of a safety recall on the
342 vehicle, he or she may not make a vehicle available as a shared
343 vehicle on the peer-to-peer car-sharing program until the safety
344 recall repair has been made.
345 b. Receives an actual notice of a safety recall on a
346 shared vehicle while the shared vehicle is made available on the
347 peer-to-peer car-sharing program, he or she shall remove the
348 shared vehicle as available on the peer-to-peer car-sharing
349 program as soon as practicably possible after receiving the
350 notice of the safety recall and until the safety recall repair

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CODING: Words striekeR are deletions; words underlined are additions.
hb0723-00
F L O R D A H O U S E 0 F R E P R E S E N T A T I V E S

HB 723 2020

351 has been made.
352 c. Receives an actual notice of a safety recall while the
353 shared vehicle is in the possession of a shared vehicle driver,
354 he or she shall notify the peer-to-peer car-sharing program
355 about the safety recall as soon as practicably possible after
356 receiving the notice of the safety recall, so that he or she may
357 address the safety recall repair.
358 (7) CONSTRUCTION.-This section does not limit:
359 (a) The liability of a peer-to-peer car-sharing program
360 for any act or omission of the peer-to-peer car-sharing program
361 which results in the bodily injury to a person as a result of
362 the use of a shared vehicle through peer-to-peer car sharing; or
363 (b) The ability of a peer-to-peer car-sharing program to
364 seek, by contract, indemnification from the shared vehicle owner
365 or the shared vehicle driver for economic loss resulting from a
366 breach of the terms and conditions of the peer-to-peer car-
367 sharing program agreement.
368 Section 2. This act shall take effect March 1, 2021.

Page 15 of 15

CODING: Words strickeR are deletions; words underlined are additions.
hb0723-00
INSURANCE & BANKING SUBCOMMITTEE

HB 723 by Rep. Fischer
Peer-to-Peer Car Sharing

AMENDMENT SUMMARY
January 28, 2020

Amendment 1 by Rep. Caruso (Line 30): The amendment applies the $2.00 daily rental car
surcharge, which is applicable to motor vehicle rentals for the first 30 days of a rental, to the car
sharing agreements proposed by the bill.

Amendment 2 by Rep. Fischer (Line 98): The amendment clarifies that the term "person"
means a "natural person" (i.e., a human being).

Amendment 3 by Rep. Fischer (Line 150): The amendment corrects a scrivener's error.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 723 (2020)
Amendment No. 1

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Caruso offered the following:
4
5 Amendment (with title amendment)
6 Between lines 30 and 31, insert:
7 Section 1. Section 212.0606, Florida Statutes, is
8 amended to read:
9 212.0606 Rental car surcharge.-
10 (1) Except as provided in subsection (2), a surcharge of $2
11 per day or any part of a day is imposed upon the lease or rental
12 by a motor vehicle rental company or a peer-to-peer car sharing
13 program of a motor vehicle licensed for hire and designed to
14 carry fewer than nine passengers, regardless of whether the
15 motor vehicle is licensed in this state, for financial
16 consideration without transfer of the title of the motor
481905 - h0723-line 30.docx
Published On: 1/27/2020 6:36:04 PM
Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 723 (2020)
Amendment No. 1

17 vehicle. The surcharge is imposed regardless of whether the
18 lease or rental occurs in person or through digital means. The
19 surcharge applies to only the first 30 days of the term of a
20 lease or rental and must be collected by the motor vehicle
21 rental company or the peer-to-peer car-sharing program. The
22 surcharge is subject to all applicable taxes imposed by this
23 chapter.
24
25
26 T I T L E A ME N D ME N T
27 Remove line 2 and insert:
28 An act relating to peer-to-peer car sharing; amending s.
29 212.0606, F.S.; requiring specified surcharges to be imposed
30 upon the lease or rental of a certain motor vehicle if the lease
31 or rental is facilitated by a motor vehicle rental company or a
32 peer-to-peer car-sharing program under certain circumstances;
33 creating

481905 - h0723-line 30.docx
Published On: 1/27/2020 6:36:04 PM
Page 2 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 723 (2020)
Amendment No. 2

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Fischer offered the following:
4
5 Amendment
6 Remove line 98 and insert:
7 a natural person or entity designated by the registered owner,
8 of a

606521 - h0723-line 98.docx
Published On: 1/27/2020 6:36:36 PM
Page 1 of 1
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 7 2 3 ( 2 02 0)
Amendment No. 3

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Fischer offered the following:
4
5 Amendment
6 Remove line 150 and insert:
7 for a peer-to-peer car-sharing program for maintaining the
8 coverage required under

906175 - h0723-line 150.docx
Published On: 1/27/2020 6:37:20 PM
Page 1 of 1
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1137 Consumer Protection
SPONSOR($): Clemons
TIED BILLS: IDEN./SIM. BILLS: SB 1492

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee Fortenber

2) Government Operations & Technology
Appropriations Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
The bill makes the following changes to the laws governing the divisions under the Florida Department of
Financial Services (DFS):
• Consumer Credit Scores and Security Freezes-The bill eliminates consumer reporting agencies'
ability to charge a fee for a personal identification number used to place a security freeze. The bill
requires that insurers notify applicants of the availability of DFS's financial literacy resources at the time
they notify them of the use of credit scores and reports for underwriting purposes.
• Consumer Services-The bill requires that licensees provide documents when responding to written
requests from DFS or the Office of Insurance Regulation and it eliminates obsolete penalties.
• Professions-The bill establishes insurance adjusting firms' licensure requirements and penalties for
licensees who aid and abet unlicensed individuals, adds grounds upon which DFS may revoke or
suspend licenses, and permits suspension of a title insurance agent's license for two years
• Agency Names-DFS may disapprove insurance agency names when they may mislead the public, but
DFS seeks the specific authority to disapprove agency names that contain "Medicare" and "Medicaid."
This bill provides the authority for DFS to disapprove agency names containing those words.
• Industrial Class Insurers-The bill amends the laws regarding industrial life insurance, small policies
written upon individual lives, so that no such policies may be sold in Florida after July 1, 2020.
• Policyholder Rights-The bill extends the time that a policyholder has to cancel a contract with a public
adjuster, and amends the Homeowners Claim Bill of Rights and property insurer claim's handling
requirements, including policyholder notification of a change in adjuster.
• Export to Surplus Lines-The bill mandates that the disclosure regarding the export of a policy to the
surplus lines market, which is currently given only to commercial policyholders, be to all policyholders.
• Unfair or Deceptive Acts-Sliding, an insurance agent's failure to fully disclose the details of, and
obtain consent to, purchase of service and products, is prohibited. The bill adds two grounds, based
upon effectuating an entire insurance policy without consent, to the list of acts that constitute sliding.
• Foreign Venue Clauses Prohibited-Florida law does not mandate that dispute resolution for policies
sold in Florida, on the admitted or surplus lines markets, occur in within the state. The bill amends the
law so that dispute resolution for such policies must occur in Florida.
• Florida Insurance Guaranty Association (FIGA) Deductible-Currently, a policyholder whose claim
is covered by FIGA must pay a $100 deductible on that claim. The bill eliminates that deductible.
• Unclaimed Property-Florida law provides a detailed framework for the recovery of unclaimed property
held by DFS. The bill creates uniform forms for use by claimants' representatives involved in the
recovery process and caps the fees such representatives may charge.
The bill has no impact on state expenditures or local government revenues or expenditures. It may have a
positive impact on state revenues. The bill may have a positive economic benefit to consumers and a possible
indeterminate negative economic impact on insurers.
The bill is effective upon becoming law.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1137.IBS.D0CX
DATE: 1/27/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
The Department of Financial Services (DFS) is composed of 13 divisions and one independent office.
They are the Divisions of:
• Accounting and Auditing;
• Consumer Services;
• Funeral, Cemetery, and Consumer Services;
• Insurance Agent and Agency Services;
• Investigative and Forensic Services (DIFS);
• Public Assistance Fraud (DPAF);
• Rehabilitation and Liquidation;
• Risk Management;
• State Fire Marshal;
• Treasury;
• Unclaimed Property;
• Workers' Compensation;
• Administration; and the
• Office of Insurance Consumer Advocate.

Consumer Credit Reports and Scores and Security Freezes

Security Freezes

Section 501.0051, F.S., permits a consumer to put a security freeze on his or her credit report, which
prohibits a consumer reporting agency from releasing the consumer's credit report, credit score, or any
information contained within the consumer report without express authorization. In order to place a
security freeze, a consumer must utilize a unique personal identification number (PIN). In 2018, the
law was amended to prevent a credit reporting agency from charging a fee of up to $10 for a consumer
to place a security freeze. 1 However, current law permits a consumer reporting agency to charge a
consumer up to $10 to provide or reissue a unique PIN to a consumer.

Effect of the Bill

The bill removes a credit reporting agency's ability to charge a fee of $1 O or less to reissue or provide a
unique PIN to a consumer to use to obtain a credit report security freeze.

Credit Reports or Scores

Under certain circumstances, insurers are permitted to utilize applicants' credit reports and scores in
underwriting and rating decisions. 2 The insurer must notify applicants that credit reports and scores are
being utilized for these purposes. 3 DFS currently offers free financial literacy programs and maintains a
toll-free insurance consumer helpline and a website to assist consumers with insurance questions,
concerns, and complaints. 4 Insurers are not required to provide applicants with information regarding
these resources when they notify them of the use of their credit reports and scores.

1
Ch. 2018---62, Laws of Fla.
2
Sees. 626.9741, F.S.
3 Id.
4
Florida Department of Financial Services, Agency Analysis of House Bill 1137, p. 3 (Jan. 15, 2020).
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DATE: 1/27/2020
Effect of the Bill

The bill provides that, at the same time that insurers inform consumers of the use of credit reports and
scores for underwriting and rating purposes, the insurers must provide consumers with notification that
DFS offers free financial literacy programs to assist them in understanding how credit scores are
calculated, what factors are considered, and how credit works.

Companies' Responses to Department of Financial Services Division of Consumer Services

Current law requires that licensees holding certificates of authority from DFS (agents and agencies) or
the Office of Insurance Regulation (OIR) (insurance companies) must respond to written requests from
DFS or OIR concerning consumer complaints. It does not require that the licensees provide documents
in response to such requests. 5 Additionally, the law contains administrative penalties for and
individual's noncompliance with DFS's or OIR's written requests related to consumer complaints that
have never been utilized and are obsolete. 6

Effect of the Bill

The bill adds requested documents to the response that a licensee must provide to DFS or OIR when
one of those agencies makes a written request to a licensee regarding a consumer complaint. It also
eliminates the monetary penalties for noncompliance by an individual, while leaving them in place for
noncompliance by a licensed entity.

Requirements Placed on Licensees of the Department of Financial Services

Agents, Customer and Service Representatives, Adjusters, Insurance Agencies, Managing General
Agents, and Insurance Adjusting Firms

Section 626.112, F.S., sets forth various requirements that insurance agents, agencies, adjusters,
customer and service representatives, and managing general agents must meet in order to operate
within Florida. However, it includes no requirements for insurance adjusting firms. DFS has indicated
that the lack of requirements renders them unable to track and address concerns with adjusting firms
and adjusters who work for them. 7

Additionally, while current law provides penalties for acting as an unlicensed insurance agent, adjuster,
customer or service representative, or managing general agent, it does not provide any penalties for
aiding or abetting an unlicensed person in transacting insurance or otherwise engaging in insurance
activities within the state.

Effect of the Bill

The bill establishes that no individual or entity may act as an adjusting firm unless it complies with the
legal requirements for obtaining an adjusting firm license for each location where activity occurs that
only a licensed adjuster may perform. However, a licensed adjusting firm owned and operated by a
single licensed adjuster conducting business in his or her individual name and not employing or using
the services of other licensees is exempt from this requirement. If an adjusting firm is required to be
licensed, but fails to apply for licensure, it may be assessed an administrative penalty of up to $10,000.

The bill also establishes that any person who knowingly aids or abets an unlicensed person in
transacting insurance or otherwise engaging in insurance activities in Florida without a license commits
a third-degree felony.

5
S. 627.307, F.S.
6
Florida Department ofFinancial Services (DFS), Agency Analysis of House Bill 1137, p. 2 (Jan. 15, 2020).
7
Id.
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Grounds for Refusal, Suspension, or Revocation of Agent's, Adjuster's, Customer or Service
Representative's, or Managing General Agent's License or Appointment

Section 626.621, F.S., provides grounds under which DFS may deny an application for, suspend,
revoke, or refuse to renew or continue the license or appointment of an applicant, agent, adjuster,
customer or service representative, or managing general agent. Currently, these licensees or
appointees are not required to maintain the privacy of consumers' financial and medical information. 8
Additionally, Florida law does not provide for administrative action when a person violates Federal
Trade Commission laws regarding telephone solicitation. 9

Effect of the Bill

The bill adds the following to the grounds for which DFS can deny an application for, suspend, revoke,
or refuse to renew or continue the license or appointment of the above-listed persons:
• permitting a consumer's or customer's personal financial or medical information to be made
available or accessible to the general public; and
• initiating in-person or telephone solicitation after 9 p.m. or before 8 a.m. local time of the
prospective customer unless the prospective customer requests such contact.

Title Insurance Agents

DFS regulates title insurance agents under ch.626, part v, F.S. While Florida law provides that the
licenses of most insurance agents or agencies may be suspended for two years for violations of the
Florida Insurance Code, s. 626.8443, F.S., only provides DFS with the authority to suspend a title
insurance agent's or agency's license for one year. 10

Effect of the Bill

The bill extends the period for which a title agent's or agency's license can be suspended from one
year to two years to conform to suspension periods for other license types, to allow the agent or agency
more time to renew the suspended license before it expires, and to ensure greater consumer
protection .11

Bail Bond Agents

Under s. 648.30, F.S., bail bond agents and temporary bail bond agents must be licensed in order to
operate within Florida. While this statute provides for penalties for operating as a bail bond agent or
temporary bail bond agent without a license, it does not currently provide any penalty for a licensee
under ch. 648, F.S., who aids or abets an unlicensed individual to violate the provisions of the
chapter. 12

Effect of the Bill

The bill provides that any licensee under ch. 648, F.S. who knowingly aids or abets an unlicensed
person in violating the licensure and appointment requirements of the chapter commits a third-degree
felony.

s Id.
9 Id.
10
Id. at 3.
11
Id. at 6.
12
S. 648.30, F.S.
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DATE: 1/27/2020
Agency Names

Existing Florida law permits DFS to disapprove insurance agency names under certain circumstances,
including when those names may mislead the public. 13 DFS has concerns that the inclusion of the
words "Medicare" or "Medicaid" in the name of an insurance agency may confuse "vulnerable
consumers" about the nature of the agency, but it lacks the specific authority to disapprove an agency
name that includes those words. 14

Effect of the Bill

The bill adds Medicare and Medicaid to the grounds for which DFS may disapprove an insurance
agency name. An agency licensed as of July 1, 2020, whose name contains the word Medicare or
Medicaid, may continue to use the name as long as its license remains valid. If its license expires, is
suspended, or is revoked, it may not be relicensed using the existing name.

Industrial Class Insurers

Industrial class insurers write industrial life insurance policies, which are life insurance policies written
upon individual lives in small amounts for which agents generally collect weekly or monthly premiums. 15
In general, the prevalence of industrial life insurance policies has continued to decline. Based upon
data available from DFS, no new industrial life insurance has been written in the past year and few
licensed life insurers continue to maintain industrial life insurance policies. 16

Effect of the Bill

The bill amends and repeals the statutes related to industrial class insurers and industrial life insurance
so that no industrial life insurance policy may be sold in Florida after July 1, 2020. The bill has no effect
on industrial life insurance policies that were sold prior to that date and have continued to remain in
force.

Policyholder Rights

Public Adjusters

Public adjusters are regulated under ch. 626, part VI, F.S. Florida law defines a public adjuster as
someone who, for something of value, directly or indirectly, prepares, completes, or files an insurance
claim for an insured or third-party claimant, or who, for something of value, acts on behalf of, or aids, an
insured or third-party claimant in settling a claim for loss or damage covered by an insurance contract,
or who advertises for employment as an adjuster of such claims.17 In general, a claimant executes a
contract for the public adjuster to provide claims adjusting services. 18 At present, such a contract may
only be canceled within three days after the latter of the date on which the contract was executed on
which the claimant has notified the insurer of the claim. 19 According to information received from DFS,
following the hurricanes that have affected Florida in recent years, consumers have complained about
claims resolution delays due to the lack of responsiveness of public adjusters they hired and the
inability to cancel contracts they have executed with these adjusters. 20

13
S. 626.062, F.S.
14
DFS, supra, at 2.
15
Merriam-Webster Dictionary, https://www.merriam-webster.com/dictionary/industrialo/o201ife%20insurance (last visited January
26, 2020).
16
DFS, supra, at 3.
17
S. 626.854, F.S.
18
See id
19 [d.
20
DFS, supra, at 3.
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DATE: 1/27/2020
Effect of the Bill

The bill establishes that, during a state of emergency declared by the Florida Governor, and for one
year after the date of loss, an insured or claimant may cancel a contract with a public adjuster without
penalty or obligation within the latter of 30 calendar days after the date on which the contract was
executed or the date on which the insured or claimant notified the insurer of the claim. In the absence
of a declared state of emergency and beyond the one-year period following any declared state of
emergency, an insured or claimant has seven calendar days, after the latter of the date on which the
policyholder executed a contract with a public adjuster or the date on which the insured or claimant
notified the insurer of the claim, to cancel the contract without penalty or obligation.

Homeowner Claims Bill of Rights and Policy Delivery

Section 627.7142, F.S., contains a Homeowners Claim Bill of Rights (Bill of Rights) that insurers
issuing personal lines residential property insurance policies in Florida must provide to policyholders
within 14 days after receiving an initial communication with respect to a claim. While the Bill of Rights
does not contain all of the rights of a policyholder, it is designed to summarize some of the significant
rights, including rights regarding communications from insurers, payments of claims, resolution of
disputed claims. 21 At present, when timeframes are listed in the Bill of Rights, they do not specify
whether they are determined in calendar or business days. 22 The Bill of Rights contains no
requirements that an insurer notify the policyholder when it assigns a different adjuster to the claim. It
does not specify that a policyholder may be entitled to receive interest from an insurer when they
insurer fails to timely fulfil claim obligations. Furthermore, the Bill of Rights does not mention that a
policyholder may take video of damage before and after repairs in addition to photographs of the
damage.

Section 627.421, F.S., provides certain requirements for the delivery of an insurance policy to a
policyholder following the inception of coverage. However, it does not require that a personal lines
residential policyholder receive the Bill of Rights with the delivery of a policy or that that such
policyholder receive a notice containing the policyholders' hurricane coverages at any point following
the initial delivery of a policy.

Effect of the Bill

The bill amends the Bill of Rights in the following ways:
• clarifies that all timeframes mentioned within it will be calculated based upon calendar days;
• states that a policyholder to which the Bill of Rights applies must receive notification from the
insurance company within seven calendar days if there has been a change in the company
adjuster assigned to a claim and the notification must include the assigned adjuster's contact
information
• states that a policyholder to which the Bill of Rights applies must receive the payment of interest
from the insurance company if the insurance company does not pay full settlement of a claim or
deny the claim within 90 calendar days after the claim is filed; and
• clarifies that in addition to photographs, a policyholder may take video of damage before and
after repairs.

The bill amends the statute regarding delivery of insurance policies to require that for personal lines
residential property insurance policies, between March 3, and April 2, each year, the insurer shall
deliver a notification to all policyholders that includes the Homeowner Claims Bill of Rights and outlines
the hurricane coverage provided in the policy, including the hurricane deductible and the coverages
and exclusions.

21
S. 627.7142, F.S.
22 Id.
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Insurer's Duties to Acknowledge and Investigate Claims

Pursuant to Florida law, residential property insurers have certain obligations regarding the handling of
claims, including responding to communications and timely payment or denial of claims. 23
Policyholders have complained to DFS that repeated changes in adjusters for insurance companies
have contributed to significant claim delays. 24 In addition, policyholders have indicated that because of
a lack of access to claims information, their insurance agents are not able to respond claims-related
questions in a meaningful way. 25

The applicable law neither requires that any licensed adjuster assigned by an insurer to conduct a
physical inspection of damage property provide the policyholder with his or her name, license number,
and contact information, nor requires that the insurer provide a copy of the inspection report to the
policyholder following receipt from the adjuster. There is no statutory requirement that an insurer notify
a policyholder when it has assigned a new adjuster to the policyholder's claim. Further, the law does
not contain any mandate that the insurer inform the policyholder of the fact that an estimate may be
preliminary in nature and may be revised or the fact that when a partial payment is issued the insurer is
continuing to evaluate a claim and may issue additional payments.

Effect of the Bill

The bill makes the following changes existing law regarding the investigation and adjusting of
residential property insurance claims:
• If an investigation of a claim involves a physical inspection of property, a licensed adjuster
assigned by the insurer must provide a policyholder with his or her name, license number, and
contact information.
• The insurer must produce to the policyholder an unedited copy of any report of a physical
inspection of a property that a licensed adjuster provides to the insurer within seven days after
receipt by the insurer.
• If an insurer assigns the claim to a new licensed adjuster following the receipt of the report, the
insurer must provide the policyholder with the name, license number, and contact information
for the newly assigned licensed adjuster within seven days after the change. Any subsequent
changes to the assigned licensed adjuster must be handled in the same way.
• An insurer must establish a process so that the named agent of record 26 for an insurance policy
is provided access to the information gathered from an inspection by an adjuster so that the
agent of record can answer policyholder questions regarding claims.
• When providing a preliminary or partial damage claim estimate or a preliminary or partial claim
payment, an insurer must provide a detailed disclosure as specified in the bill.

The bill establishes thats. 627. 70131, F.S., regarding residential property insurance claims shall be
applicable to surplus lines policies in addition to policies written on the admitted market.

Export of Policies to Surplus Lines

When insurance is not available to Florida consumers from authorized insurance carriers27 , it generally
becomes necessary and legally permissible to obtain a policy on the surplus lines market. 28 However,
under current surplus lines law, only consumers purchasing commercial insurance policies on the
surplus lines market receive notification at the time of purchase that policies are being issued on that

23
Sees. 627.70131, F.S.
24
DFS, supra, at 4.
25 Id.
26
An agent ofrecord means that agent named on the declarations page of the insurance policy.
27
Authorized insurance carriers are those who have received a certificate of authority from OIR to transact insurance business within
the state. S. 624.06, F.S.
28
Sees. 626.913, F.S.
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DATE: 1/27/2020
market. 29 Consequently, the first time that some residential policyholders are informed that their
policies have been issued by surplus lines carriers is after their policies have been issued. 30

Effect of the Bill

The bill amends surplus lines law to require that, at the time policies are exported to the surplus lines
market, the disclosure statement currently signed by consumers whose commercial insurance policies
are being exported to the surplus lines market must be signed by all consumers whose insurance
policies are being exported to the surplus lines market.

Unfair Methods of Competition and Unfair or Deceptive Acts-Sliding

The Florida Insurance Code prohibits licensees from engaging in unfair methods of competition and
unfair or deceptive acts or practices, including sliding. 31 Sliding is the practice of an insurance agent's
failure to fully disclose the details of, and obtain consent to, the purchase of services and products. 32
Under Florida law, sliding currently includes: representing to an applicant that a specific ancillary
coverage or product is required by law when it is not; representing to an applicant that a specific
ancillary coverage or product is included in the policy applied for without an additional charge where
there is a charge for it; and charging and applicant for a specific ancillary coverage or product, in
addition to the cost of insurance applied for, without informing the applicant. 33 According to DFS, some
Florida insurers have begun a practice of effectuating entire policies without informing consumers they
have done so. 34

Effect of the Bill

The bill adds the following to the list of prohibited conduct that constitutes sliding:
• Initiating, effectuating, binding, or otherwise issuing an insurance policy without prior informed
consent from the owner of the property being insured; and
• Mailing, transmitting, or otherwise submitting a premium invoice to a mortgagee or escrow
agent in order to effectuate an insurance policy without the prior informed consent from the
owner of the property being insured.

Foreign Venue Clauses in Property Insurance Policies

Currently, Florida law does not mandate that property claims dispute resolution for policies sold in
Florida, whether such resolution occurs through litigation, arbitration, or mediation, occur within Florida.
The law contains no distinction for the location of dispute resolution regardless of whether a property
insurance policy was issued on the admitted or surplus lines markets. 35

Effect of the Bill

The bill provides that no property insurance policy issued within Florida after July 1, 2020, whether
issued on the admitted or surplus lines markets, may require that an insured engage in dispute
resolution, through litigation, arbitration, or mediation, outside Florida.

29
S. 626.916(3)(b)3, F.S.
30
DFS, supra, at 3.
31
S. 626.9541, F.S.
32
Insurance Journal, Michigan Bulletin Warns Insurance Produces Against 'Sliding',
https://www.insurancejoumal.com/news/midwest/2018/05/l l/489050.htm (last visited January 26, 2020)
33
S. 626.954l(l)(z), F.S.
34
DFS, supra, at 3.
35
DFS, supra, at p.4.
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Florida Insurance Guaranty Association Deductible

Under federal law, insurance companies cannot file for bankruptcy. 36 Instead, they are either
rehabilitated or liquidated by their state of domicile. Florida law establishes the system for the
treatment of impaired or insolvent insurers 37 in Florida and sets up guaranty associations where
necessary. 38 Florida operates four guaranty associations including the Florida Insurance Guaranty
Association (FIGA). 39 FIGA provides a "mechanism for the payment of covered claims under certain
insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or
policyholders because of the insolvency of an insurer."40 It issues guaranty fund payments and
provides related services for all lines of property and casualty insurance with certain exceptions. 41
When a Florida property and casualty insurer becomes insolvent, FIGA takes over the claims of that
insurer and pays the claims of its policyholders, ensuring that policyholders are not left with unpaid
claims. Florida law provides that FIGA is only obligated to pay the portions of claims made to insolvent
property and casualty insurers, which are in excess of $100, and less than $300,000. 42 Under current
law, therefore, there is a $100 deductible on all property and casualty claims covered by FIGA.

Effect of the Bill

The bill eliminates the $100 deductible on claims paid by FIGA so that such claims will be covered for
any amount exceeding $0 and less than $300,000.

Unclaimed Property

Chapter 717, F.S., provides a framework for the rightful owners to obtain unclaimed property that is
held by DFS. Currently, licensed claimants' representatives are registered with DFS to gain access to
DFS's unclaimed property database and to seek authorizations from claimants to file claims on their
behalf for unclaimed property held by DFS. 43 Each registrant who files claims utilizes a unique power
of attorney through which claimants provide authorization to registrants. 44 The lack of uniformity in the
use of the powers of attorney poses problems for both consumers and for DFS staff.

Additionally, under current law, if a Full Disclosure Statement has been provided to an unclaimed
property claimant, fees collected by a claimant's representative for providing services related to the
collection of the unclaimed property are unlimited. 45 If the Full Disclosure Statement has not been
provided to the claimant, then the fees are capped at 20% of the value of the property recovered, and
$1,000 per account claimed in the recovery. 46

Effect of the Bill

The bill changes the unclaimed property claims law to further streamline the process for consumers. It
provides that DFS will adopt forms by rule entitled "Florida Uniform Property Recovery Agreement"
(Recovery Agreement) and "Florida Uniform Property Purchase Agreement" (Purchase Agreement).

36
11 U.S.C. § 109(b)(2).
37
An "insolvent insurer" means an insurer that was authorized to transact insurance in this state, either at the time the policy was
issued or when the insured event occurred, and against which an order of liquidation with a finding of insolvency has been entered by
a court of competent jurisdiction if such order has become final by the exhaustion of appellate review. S. 631.904(4), F.S.
38
Ch. 631, F.S.
39
Ch. 631, part II, F.S.
40
S. 631.51, F.S.
41
S. 631.52, F.S.
42
S. 631.57(1), F.S.
43
DFS, supra, at 4.
44 Id.
45
S. 717.135, F.S. The text of the Full Disclosure Statement is located ins. 717.135(3)(a), F.S.
46 Id.
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These Agreements will be the exclusive means of a claimant's representative engaging a claimant or
seller to file an unclaimed property claim with DFS.

The bill significantly amends s 717.135, F.S., to eliminate the current power of attorney requirements
and replace them with requirements for the Recovery Agreement and Purchase Agreement. Pursuant
to the bill, the Recovery Agreement and Purchase Agreement must include and disclose:
• The total dollar amount of the unclaimed property accounts claimed or sold;
• Either the total percentage of all authorized fees and costs to be paid to the claimant's
representative or the percentage of the value of the property to be paid as net gain to the
purchasing registered claimant's representative;
• Either the total dollar amount to be deducted and received from the claimant as fees and costs
by the claimant's representative or the total net dollar amount to be received by the purchasing
registered claimant's representative;
• The net dollar amount the claimant or seller will receive;
• The unclaimed property account number and name of the owner for each account claimed;
• For the purchase agreement, a statement that the purchase price will be remitted to the seller
within 30 days after the seller executes the form;
• The name, contact information, and license number of the registered claimant's representative;
• The manual signature of the claimant or seller and the date signed;
• The social security number or taxpayer identification number of the claimant or seller, if
available; and
• A limit of total fees and costs, or the total discount amount in the case of a purchase agreement,
to no more than 20 percent of the claimed amount.

The Recovery Agreement and Purchase Agreement may not contain language that makes them
irrevocable or that creates an assignment of any unclaimed property held by DFS. For the Purchase
Agreement, if DFS does not receive proof that the seller received payment, then the claim is void.

All references to "power of attorney" within the remainder of the unclaimed property claims laws are
changed to the Recovery Agreement and Purchase Agreement, as appropriate, so that these forms will
be utilized in unclaimed property claims going forward in lieu of powers of attorney. Section 717.1351,
F.S., relating to the acquisition of unclaimed property is repealed because it is no longer necessary
following the additional changes to the unclaimed property claims laws set forth within the bill.

B. SECTION DIRECTORY:
Section 1. Amends s. 501.0051, F.S., relating to protected consumer report security freeze.

Section 2. Amends s. 624.307, F.S., relating to general powers; duties.

Section 3. Amends s. 626.112, F.S., relating to license and appointment required; agents, customer
representatives, adjusters, insurance agencies, service representatives, managing general
agents.

Section 4. Amends s. 626.602, F.S., relating to insurance agency names; disapproval.

Section 5. Amends s. 626.621, F.S., relating to grounds for discretionary refusal, suspension, or
revocation of agent's, adjuster's, customer representative's, service representative's, or
managing general agent's license or appointment.

Section 6. Amends s. 626.782, F.S., relating to the definition of "Industrial class insurer."

Section 7. Amends s. 626.783, F.S., relating to the definition of "Ordinary-combination class insurer."

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Section 8. Repeals s. 626.796, F.S., relating to representing another insurer in same industrial debit
territory.

Section 9. Amends s. 626.8443, F.S., relating to duration of suspension or revocation.

Section 10. Amends s. 626.854, F.S., relating to "Public adjuster'' defined; prohibitions.

Section 11. Amends s. 626.916, F.S., relating to eligibility for export.

Section 12. Amends s. 626.9541, F.S., relating to unfair methods of competition and unfair or
deceptive acts or practices defined.

Section 13. Amends s. 626.9741, F.S., relating to use of credit reports and credit scores by insurers.

Section 14. Amends s. 626.9957, F.S., to conform cross-references.

Section 15. Amends s. 627.062, F.S., to conform cross-references.

Section 16. Amends s. 627.421, F.S., relating to delivery of policy.

Section 17. Amends s. 627.502, F.S., relating to "Industrial life insurance" defined; reporting;
prohibition on new policies after a certain date.

Section 18. Amends s. 627.70131, F.S., relating to insurer's duty to acknowledge communications
regarding claims; investigation.

Section 19. Creates s. 627.7031, relating to foreign venue clauses prohibited.

Section 20. Amends s. 627.7142, F.S., relating to Homeowner Claims Bill of Rights.

Section 21. Amends s. 631.57, F.S., relating to powers and duties of the association.

Section 22. Amends s. 648.30, F.S., relating to licensure and appointment required; prohibited acts;
penalties.

Section 23. Amends s. 717.124, F.S., relating to unclaimed property claims.

Section 24. Amends s. 717.12404, F.S., relating to claims on behalf of a business entity or trust.

Section 25. Amends s. 717.1315, F.S., relating to retention of records by claimant's representatives
and buyers of unclaimed property.

Section 26. Amends s. 717.1322, F.S., relating to administrative and civil enforcement.

Section 27. Amends s. 717.135, F.S., relating to power of attorney to recover reported property in the
custody of the department.

Section 28. Repeals s. 717 .1351, F. S., relating to acquisition of unclaimed property.

Section 29. Provides an effective date of upon becoming law.

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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
The bill has the potential to result in increased revenues in the form of administrative fines collected
for violations of ss. 624.307 and 626.112, F.S.

2. Expenditures:
None.

8. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have positive economic impacts for consumers. It removes fees charged for the issuance
of PIN numbers and eliminates the deductible FIGA charges for claims it covers. Portions of the bill are
intended to expedite the handling of property insurance claims. If repairs are made sooner,
policyholders will be able to return home and, in some cases, return to work quicker. Businesses may
also benefit economically when homeowners, as consumers, are able to recover sooner after
catastrophes. Additionally, by eliminating streamlining the unclaimed property claim process using new
forms and by capping the fees that a claimants' representatives can charge, consumers may be able to
keep a greater percentage of the unclaimed property they recover.

The bill has the potential for negative direct economic impacts on the private sector. The inability of a
consumer reporting agency to charge a fee for a PIN will result in a loss of revenue for the consumer
reporting agencies. The amount of this loss is unknown. The requirement that residential property
insurers provide the Homeowner Bill of Rights once per year, by mail or email, if not done as part of
otherwise scheduled communication, may have an indeterminate cost for insurers.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.

2. Other:
Article VII, s. 19, Fla. Const., may apply given the nature of the administrative penalty
created in Section 3 of the bill.

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B. RULE-MAKING AUTHORITY:
The bill requires DFS to promulgate two new forms related to unclaimed property claims (Recovery
Agreement and Purchase Agreement) to be adopted pursuant to rule. Because s. 717.138, F.S.,
provides sufficient rulemaking authority for DFS to adopt rules pursuant under ch. 120, F.S., no
additional rulemaking authority is necessary.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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F L O R D A H O U S E 0 F R E P R E S E N T A T V E S

HB 1137 2020

1 A bill to be entitled
2 An act relating to consumer protection; amending s.
3 501.0051, F.S.; prohibiting consumer reporting
4 agencies from charging to reissue or provide a new
5 unique personal identifier to a consumer for the
6 removal of a security freeze; amending s. 624.307,
7 F.S.; revising a requirement for entities licensed or
8 authorized by the Department of Financial Services or
9 the Office of Insurance Regulation to respond to the
10 department's Division of Consumer Services regarding
11 consumer complaints; revising administrative penalties
12 the division may impose for failure to comply;
13 amending s. 626.112, F.S.; prohibiting unlicensed
14 activity by an adjusting firm; providing an exemption;
15 providing an exemption from licensure for branch firms
16 that meet certain criteria; providing an
17 administrative penalty for failing to apply for
18 certain licensure; providing a criminal penalty for
19 aiding or abetting unlicensed activity; deleting an
20 obsolete provision; amending s. 626.602, F.S.;
21 authorizing the department to disapprove the use of
22 insurance agency names containing the words "Medicare"
23 or "Medicaid"; providing an exception for certain
24 insurance agencies; amending s. 626.621, F.S.; adding
25 grounds on which the department may take certain

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26 actions against a license, appointment, or application
27 of certain insurance representatives; amending ss.
28 626.782 and 626.783, F.S.; revising the definitions of
29 the terms "industrial class insurer" and "ordinary-
30 combination class insurer," respectively, to conform
31 to changes made by the act; repealing s. 626.796,
32 F.S., relating to the representation of multiple
33 insurers in the same industrial debit territory;
34 amending s. 626.8443, F.S.; increasing the maximum
35 period of suspension of a title insurance agent's or
36 agency's license; amending s. 626.854, F.S.; revising
37 the timeframes in which an insured or claimant may
38 cancel a public adjuster's contract to adjust a claim
39 without penalty or obligation; amending s. 626.916,
40 F.S.; revising the classes of insurance subject to a
41 disclosure requirement before being eligible for
42 export under the Surplus Lines Law; amending s.
43 626.9541, F.S.; adding certain acts or practices to
44 the definition of sliding; amending s. 626.9741, F.S.;
45 requiring an insurer to include certain additional
46 information when providing an applicant or insured
47 with certain credit report or score information;
48 amending ss. 626.9957 and 627.062, F.S.; conforming
49 cross-references; amending s. 627.421, F.S.; requiring
50 personal lines residential property insurers to

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51 annually deliver a certain notification to
52 policyholders within a specified timeframe; amending
53 s. 627.502, F.S.; prohibiting life insurers from
54 writing new policies of industrial life insurance
55 beginning on a certain date; amending s. 627.70131,
56 F.S.; providing that communication made to or by an
57 insurer's representative, rather than to or by an
58 insurer's agent, constitutes communication to or by
59 the insurer; requiring an insurer-assigned licensed
60 adjuster to provide the policyholder with certain
61 information in certain investigations; requiring that
62 certain adjuster reports be provided to policyholders
63 within a certain timeframe; specifying requirements
64 for insurers in notifying policyholders for certain
65 changes in assigned adjusters; requiring an insurer to
66 establish a process to provide the agent of record
67 access to claim status information for a certain
68 purpose; defining the term "agent of record";
69 requiring insurers to include specified notices when
70 providing preliminary or partial damage estimates or
71 claim payments; specifying the timeframe in which an
72 insurer must pay or deny property insurance claims
73 under certain circumstances; providing applicability;
74 conforming provisions to changes made by the act;
75 creating s. 627.7031, F.S.; prohibiting foreign venue

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76 clauses in property insurance policies; providing
77 applicability; amending s. 627.7142, F.S.; revising
78 information contained in the Homeowner Claims Bill of
79 Rights; conforming provisions to changes made by the
80 act; amending s. 631.57, F.S.; deleting a deductible
81 on the Florida Insurance Guaranty Association,
82 Incorporated's obligation as to certain covered
83 claims; amending s. 648.30, F.S.; prohibiting the
84 aiding or abetting of unlicensed activity of a bail
85 bond agent or temporary bail bond agent; amending ss.
86 71 7 . 12 4, 71 7 . 12 4 0 4, 71 7 . 1315, and 71 7 . 13 2 2, F. S . ;
87 conforming provisions to changes made by the act;
88 amending s. 717.135, F.S.; replacing provisions
89 relating to powers of attorney to recover unclaimed
90 property with provisions relating to uniform forms for
91 unclaimed property recovery agreements and purchase
92 agreements; requiring the department to adopt the
93 uniform forms by rule; specifying required information
94 and disclosures in the forms; requiring that, for the
95 purchase agreement form, proof the seller received
96 payment be filed with the department along with the
97 claim; requiring registered claimant's representatives
98 to use the forms as the exclusive means of engaging
99 with a claimant or seller to file claims and
100 prohibiting them from using or distributing other

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101 agreements; specifying a limitation on fees and costs
102 owed or paid; prohibiting certain language in the
103 forms; authorizing the department to pay additional
104 accounts owned by the claimant under certain
105 circumstances; providing construction; repealing s.
106 717.1351, F.S., relating to the acquisition of
107 unclaimed property; providing an effective date.
108
109 Be It Enacted by the Legislature of the State of Florida:
110
111 Section 1. Paragraph (b) of subsection (9) of section
112 501.0051, Florida Statutes, is amended to read:
113 501.0051 Protected consumer report security freeze.-
114 ( 9)

115 (b) A consumer reporting agency may not charge to a
116 reasonable fee, not to enceed $10, if the representative fails
117 to retain the original unique personal identifier provided by
118 the consuffier reporting agency and the agency ffiust reissue the
119 unique personal identifier or provide a new unique personal
120 identifier to the consumer representative.
121 Section 2. Paragraph (b) of subsection (10) of section
122 624.307, Florida Statutes, is amended to read:
123 624.307 General powers; duties.-
124 (10)
125 (b) Any entity person licensed or issued a certificate of

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12 6 authority by the department or the office shall respond, in
127 writing, to the division within 20 days after receipt of a
128 written request for documents and information from the division
129 concerning a consumer complaint. The response must address the
130 issues and allegations raised in the complaint and include any
131 requested documents. The division may impose an administrative
132 penalty for failure to comply with this paragraph of up to
133 $2,500 per violation upon any entity licensed by the department
134 or the office and $250 for the first violation, $500 for the
135 second violation, and up to $1,000 for the third or subsequent
136 violation upon any individual licensed by the department or the
137 office.
138 Section 3. Present subsection (9) of section 626.112,
139 Florida Statutes, is redesignated as subsection (10), a new
140 subsection (9) is added to that section, and paragraph (d) of
141 subsection (7) and present subsection (9) of that section are
142 amended, to read:
143 626.112 License and appointment required; agents, customer
144 representatives, adjusters, insurance agencies, service
145 representatives, managing general agents, insurance adjusting
146 firms.-
147 ( 7)

148 (d) Effective October 1, 2015, the department must
149 automatically convert the registration of an approved registered
150 insurance agency to an insurance agency license.

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151 (9) (a) An individual, firm, partnership, corporation,
152 association, or other entity may not act in its own name or
153 under a trade name, directly or indirectly, as an adjusting firm
154 unless it complies withs. 626.8696 with respect to possessing
155 an adjusting firm license for each place of business at which it
156 engages in an activity that may be performed only by a licensed
157 insurance adjuster. However, an adjusting firm that is owned and
158 operated by a single licensed adjuster conducting business in
159 his or her individual name and not employing or otherwise using
160 the services of or appointing other licensees is exempt from the
161 adjusting firm licensing requirements of this subsection.
162 (b) A branch place of business that is established by a
163 licensed adjusting firm is considered a branch firm and is not
164 required to be licensed if:
165 1. It transacts business under the same name and federal
166 tax identification number as the licensed adjusting firm;
167 2. It has designated with the department a primary
168 adjuster operating the location as required bys. 626.8695; and
169 3. The address and telephone number of the branch location
170 have been submitted to the department for inclusion in the
171 licensing record of the licensed adjusting firm within 30 days
172 after insurance transactions begin at the branch location.
173 (c) If an adjusting firm is required to be licensed, but
174 fails to file an application for licensure in accordance with
175 this section, the department shall impose on the firm an

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176 administrative penalty of up to $10,000.
177 Jl.Ql-f-9+ Any person who knowingly transacts insurance or
178 otherwise engages in insurance activities in this state without
17 9 a license in violation of this section or who knowingly aids or
180 abets an unlicensed person in transacting insurance or otherwise
181 engaging in insurance activities in this state without a license
182 commits a felony of the third degree, punishable as provided in
183 s. 775.082, s. 775.083, ors. 775.084.
184 Section 4. Subsection (4) is added to section 626.602,
185 Florida Statutes, to read:
186 626.602 Insurance agency names; disapproval.-The
187 department may disapprove the use of any true or fictitious
188 name, other than the bona fide natural name of an individual, by
189 any insurance agency on any of the following grounds:
190 ( 4) The name contains the word "Medicare" or "Medicaid."
191 An insurance agency whose name contains the word "Medicare" or
192 "Medicaid" but which is licensed as of July 1, 2020, may
193 continue to use that name as long as the agency's license is
194 valid. If the agency's license expires or is suspended or
195 revoked, the agency may not be relicensed using that name.
196 Section 5. Subsections (16) and (17) are added to section
197 626.621, Florida Statutes, to read:
198 626.621 Grounds for discretionary refusal, suspension, or
199 revocation of agent's, adjuster's, customer representative's,
200 service representative's, or managing general agent's license or

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201 appointment.-The department may, in its discretion, deny an
202 application for, suspend, revoke, or refuse to renew or continue
203 the license or appointment of any applicant, agent, adjuster,
204 customer representative, service representative, or managing
205 general agent, and it may suspend or revoke the eligibility to
206 hold a license or appointment of any such person, if it finds
207 that as to the applicant, licensee, or appointee any one or more
208 of the following applicable grounds exist under circumstances
209 for which such denial, suspension, revocation, or refusal is not
210 mandatory under s. 626.611:
211 (16) Allowing the personal financial or medical
212 information of a consumer or customer to be made available or
213 accessible to the general public, regardless of the format in
214 which the record is stored.
215 ( 17) Initiating in-person or telephone solicitation after
216 9 p.m. or before 8 a.m. local time of the prospective customer
217 unless requested by the prospective customer.
218 Section 6. Section 626.782, Florida Statutes, is amended
219 to read:
220 626.782 "Industrial class insurer" defined.-An "industrial
221 class insurer" is an insurer collecting premiums on policies of
222 writing industrial life insurance, as defined ins. 627.502,
223 written before July 1, 2020, and as to such insuranceL operates
224 under a system of collecting a debit by its agent.
225 Section 7. Section 626.783, Florida Statutes, is amended

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226 to read:
227 626.783 "Ordinary-combination class insurer" defined.-An
228 "ordinary-combination class insurer" is an insurer writing eeffi
229 ordinary class insurance and collecting premiums on existing
230 industrial life elaoo insurance under s. 626.782.
231 Section 8. Section 626.796, Florida Statutes, is repealed.
232 Section 9. Subsection (1) of section 626.8443, Florida
233 Statutes, is amended to read:
234 626.8443 Duration of suspension or revocation.-
235 (1) The department shall, in its order suspending a title
236 insurance agent's or agency's license or appointment or in its
237 order suspending the eligibility of a person to hold or apply
238 for such license or appointment, specify the period during which
239 the suspension is to be in effect, but such period shall not
240 exceed 2 years 1 year. The license, e-r appointment, or
241 eligibility shall remain suspended during the period so
242 specified, subject, however, to any rescission or modification
243 of the order by the department, or modification or reversal
244 thereof by the court, prior to expiration of the suspension
245 period. A license, appointment, or eligibility that whieh has
246 been suspended may not be reinstated except upon request for
247 such reinstatement, but the department shall not grant such
248 reinstatement if it finds that the circumstance or circumstances
249 for which the license, appointment, and eligibility was
250 suspended still exist or are likely to recur.

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251 Section 10. Subsection (6) of section 626.854, Florida
252 Statutes, is amended to read:
253 626.854 "Public adjuster" defined; prohibitions.-The
254 Legislature finds that it is necessary for the protection of the
255 public to regulate public insurance adjusters and to prevent the
256 unauthorized practice of law.
257 (6) Except during a state of emergency declared by the
258 Governor and except during the 1-year period after the date of
259 loss, an insured or claimant may cancel a public adjuster's
2 60 contract to adjust a claim without penalty or obligation within
261 7 calendar 3 business days after the date on which the contract
262 is executed or within 7 calendar 3 business days after the date
263 on which the insured or claimant has notified the insurer of the
2 64 claim, whichever is later. During a state of emergency declared
265 by the Governor or during the 1-year period after the date of
266 loss, an insured or claimant may cancel a public adjuster's
2 67 contract to adjust a claim without penalty or obligation within
2 68 30 calendar days after the date on which the contract is
269 executed or within 30 calendar days after the date on which the
270 insured or claimant has notified the insurer of the claim,
271 whichever is later. The public adjuster's contract must disclose
272 to the insured or claimant his or her right to cancel the
273 contract and advise the insured or claimant that notice of
274 cancellation must be submitted in writing and sent by certified
275 mail, return receipt requested, or other form of mailing that

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276 provides proof thereof, to the public adjuster at the address
277 specified in the contract; provided, during any state of
278 effiergency as declared by the Governor and for 1 year after the
279 date of loss, the insured or claifflant has 5 business days after
280 the date on which the contract is eMecuted to cancel a public
281 adjuster's contract.
282 Section 11. Subsection (3) of section 626.916, Florida
283 Statutes, is amended, and paragraph (f) is added to subsection
284 (1) of that section, to read:
285 626.916 Eligibility for export.-
286 (1) No insurance coverage shall be eligible for export
287 unless it meets all of the following conditions:
288 ( f) The insured has signed a disclosure in substantially
289 the following form: "You are agreeing to place coverage in the
290 surplus lines market. Superior coverage may be available in the
291 admitted market and at a lesser cost. Persons insured by surplus
292 lines carriers are not protected under the Florida Insurance
293 Guaranty Act with respect to any right of recovery for the
294 obligation of an insolvent unlicensed insurer."
295 (3) (a) Subsection (1) does not apply to wet marine and
296 transportation or aviation risks that which are subject to s.
297 626.917.
298 (b) Paragraphs (1) (a)- (d) do not apply to classes of
299 insurance which are subject to s. 627.062(3) (d)l. These classes
300 may be exportable under the following conditions:

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301 1. The insurance must be placed only by or through a
302 surplus lines agent licensed in this state;
303 2. The insurer must be made eligible under s. 626.918; and
304 3. The insured has signed fflust sign a disclosure as
305 required under paragraph (1) (f) that substantially provides the
306 following: "You are agreeing to place coverage in the surplus
307 lines Fflarket. Superior coverage Fflay be available in the adfflitted
308 Fflarket and at a lesser cost. Persons insured by surplus lines
309 carriers are not protected under the Florida Insurance Guaranty
310 Act with respect to any right of recovery for the obligation of
311 an insolvent unlicensed insurer." If the disclosure notice is
312 signed by the insured, the insured is presumed to have been
313 informed and to know that other coverage may be available, and,
314 with respect to the diligent-effort requirement under subsection
315 (1), there is no liability on the part of, and no cause of
316 action arises against, the retail agent presenting the form.
317 Section 12. Paragraph (z) of subsection (1) of section
318 626.9541, Florida Statutes, is amended to read:
319 626.9541 Unfair methods of competition and unfair or
320 deceptive acts or practices defined.-
321 ( 1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
322 ACTS.-The following are defined as unfair methods of competition
323 and unfair or deceptive acts or practices:
324 (z) Sliding.-Sliding is the act or practice of any of the
325 following:

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326 1. Representing to the applicant that a specific ancillary
327 coverage or product is required by law in conjunction with the
328 purchase of insurance when such coverage or product is not
32 9 required...:...-t-
330 2. Representing to the applicant that a specific ancillary
331 coverage or product is included in the policy applied for
332 without an additional charge when such charge is required...:...-:---e-r
333 3. Charging an applicant for a specific ancillary coverage
334 or product, in addition to the cost of the insurance coverage
335 applied for, without the informed consent of the applicant.
336 4. Initiating, effectuating, binding, or otherwise issuing
337 a policy of insurance without the prior informed consent of the
338 owner of the property to be insured.
339 5. Mailing, transmitting, or otherwise submitting by any
340 means an invoice for premium payment to a mortgagee or escrow
341 agent, for the purpose of effectuating an insurance policy,
342 without the prior informed consent of the owner of the property
343 to be insured.
344 Section 13. Subsection (3) of section 626.9741, Florida
345 Statutes, is amended to read:
346 626.9741 Use of credit reports and credit scores by
347 insurers.-
348 (3) An insurer must inform an applicant or insured, in the
349 same medium as the application is taken, that a credit report or
350 score is being requested for underwriting or rating purposes.

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351 The notification to the consumer must include the following
352 language: "The Department of Financial Services offers free
353 financial literacy programs to assist you in understanding how
354 credit scores are calculated, what factors are considered, and
355 how credit works. The Department's toll-free Insurance Consumer
356 Helpline is available to assist you with insurance-related
357 questions and inquiries. To learn more about the free financial
358 literacy programs or for help with insurance, call 1-877-693-
359 5236 or visit www.MyFloridaCFO.com." An insurer that makes an
360 adverse decision based, in whole or in part, upon a credit
361 report must provide at no charge 7 a copy of the credit report to
362 the applicant or insured or provide the applicant or insured
363 with the name, address, and telephone number of the consumer
364 reporting agency from which the insured or applicant may obtain
365 the credit report. The insurer must provide notification to the
366 consumer explaining the reasons for the adverse decision. The
367 reasons must be provided in sufficiently clear and specific
368 language so that a person can identify the basis for the
369 insurer's adverse decision. Such notification shall include a
370 description of the four primary reasons, or such fewer number as
371 existed, which were the primary influences of the adverse
372 decision. The use of generalized terms such as "poor credit
373 history," "poor credit rating," or "poor insurance score" does
374 not meet the explanation requirements of this subsection. A
375 credit score may not be used in underwriting or rating insurance

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376 unless the scoring process produces information in sufficient
377 detail to permit compliance with the requirements of this
378 subsection. It shall not be deemed an adverse decision if, due
379 to the insured's credit report or credit score, the insured
380 continues to receive a less favorable rate or placement in a
381 less favorable tier or company at the time of renewal except for
382 renewals or reunderwriting required by this section.
383 Section 14. Subsection (1) of section 626.9957, Florida
384 Statutes, is amended to read:
385 626.9957 Conduct prohibited; denial, revocation, or
386 suspension of registration.-
387 (1) As provided ins. 626.112, only a person licensed as
388 an insurance agent or customer representative may engage in the
389 solicitation of insurance. A person who engages in the
390 solicitation of insurance as described ins. 626.112(1) without
391 such license is subject to the penalties provided under s.
392 626.112(10) 3. 626.112(9).
393 Section 15. Subsection (10) of section 627.062, Florida
394 Statutes, is amended to read:
395 627.062 Rate standards.-
396 (10) Any interest paid pursuant to s. 627.70131(7) -s.-
397 627.70131(5) may not be included in the insurer's rate base and
398 may not be used to justify a rate or rate change.
399 Section 16. Subsection (6) is added to section 627.421,
400 Florida Statutes, to read:

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401 627.421 Delivery of policy.-
402 (6) For personal lines residential property insurance
403 policies, the insurer shall, between March 3 and April 2 of each
404 year, inclusive, deliver a notification to all policyholders via
405 mail or e-mail which includes the Homeowner Claims Bill of
406 Rights and outlines the hurricane coverage included in the
407 policy, including the hurricane deductible and the coverages and
408 exclusions.
409 Section 17. Section 627.502, Florida Statutes, is amended
410 to read:
411 627.502 ''Industrial life insurance" defined; reportingL
412 prohibition on new policies after a certain date.-
413 (1) For the purposes of this code, "industrial life
414 insurance" is that form of life insurance written under policies
415 under which premiums are payable monthly or more often, bearing
416 the words "industrial policy" or "weekly premium policy" or
417 words of similar import imprinted upon the policies as part of
418 the descriptive matter, and issued by an insurer that which, as
419 to such industrial life insurance, is operating under a system
420 of collecting a debit by its agent.
421 (2) Every life insurer servicing existing transacting
422 industrial life insurance shall report to the office all annual
423 statement data regarding the exhibit of life insurance,
424 including relevant information for industrial life insurance.
425 (3) Beginning July 1, 2020, a life insurer may not write a

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42 6 new policy of industrial life insurance.
427 Section 18. Section 627.70131, Florida Statutes, is
428 amended to read:
429 627.70131 Insurer's duty to acknowledge communications
430 regarding claims; investigation.-
431 (1) (a) Upon an insurer's receiving a communication with
432 respect to a claim, the insurer shall, within 14 calendar days,
433 review and acknowledge receipt of such communication unless
434 payment is made within that period of time or unless the failure
435 to acknowledge is caused by factors beyond the control of the
436 insurer which reasonably prevent such acknowledgment. If the
437 acknowledgment is not in writing, a notification indicating
438 acknowledgment shall be made in the insurer's claim file and
439 dated. A communication made to or by a representative an agent
440 of an insurer with respect to a claim shall constitute
441 communication to or by the insurer.
442 (b) As used in this subsection, the term "representative"
443 "agent" means any person to whom an insurer has granted
444 authority or responsibility to receive or make such
445 communications with respect to claims on behalf of the insurer.
446 (c) This subsection shall not apply to claimants
447 represented by counsel beyond those communications necessary to
448 provide forms and instructions.
449 (2) Such acknowledgment shall be responsive to the
450 communication. If the communication constitutes a notification

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451 of a claim, unless the acknowledgment reasonably advises the
452 claimant that the claim appears not to be covered by the
453 insurer, the acknowledgment shall provide necessary claim forms,
454 and instructions, including an appropriate telephone number.
455 (3)~ Unless otherwise provided by the policy of
456 insurance or by law, within 10 business worlcing days after an
457 insurer receives proof of loss statements, the insurer shall
458 begin such investigation as is reasonably necessary unless the
459 failure to begin such investigation is caused by factors beyond
460 the control of the insurer which reasonably prevent the
461 commencement of such investigation.
462 (b) If such investigation involves a physical inspection
463 of the property, the licensed adjuster assigned by the insurer
464 must provide the policyholder with his or her name, license
465 number, and contact information.
466 (c) An unedited copy of any report received by the
467 insurer, which was produced by the licensed adjuster based upon
468 the physical inspection of the property, must be provided to the
469 policyholder electronically or as a physical copy within 7 days
470 after receipt by the insurer.
471 (d) If an insurer assigns the claim to a different
472 licensed adjuster after receipt of a report from the adjuster
473 who performed the physical inspection, the insurer must, within
474 7 days after changing the licensed insurance adjuster assigned
475 to a claim, provide the name, license number, and contact

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476 information of the new adjuster to the policyholder. The
477 notification may be sent electronically or via mail. If the
478 notification is a physical letter, it must be postmarked within
479 7 days after the change in adjuster. Any subsequent change to
480 the assigned adjuster must be handled in accordance with this
481 paragraph.
482 (4) An insurer shall establish a process by which the
483 agent of record for an insurance policy is provided access to
484 information provided to the policyholder under subsection (3) in
485 order to assist the agent of record in answering the
486 policyholder's questions regarding claims. As used in this
487 subsection, the term ''agent of record" means the agent named on
488 the declarations page of the insurance policy.
489 ill For purposes of this section, the term "insurer" means
490 any residential property insurer.
491 (6) (a) When providing a preliminary or partial estimate of
492 damage regarding a claim, an insurer shall include with the
493 estimate the following statement printed in at least 12-point
494 bold, uppercase type: THIS ESTIMATE REPRESENTS OUR CURRENT
495 EVALUATION OF THE LOSS TO YOUR INSURED PROPERTY AND MAY BE
496 REVISED AS WE CONTINUE TO EVALUATE YOUR CLAIM. IF YOU HAVE
497 QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING YOUR
498 CLAIM, WE ENCOURAGE YOU TO CONTACT US.
499 (b) When providing a preliminary or partial payment on a
500 claim, an insurer shall include with the payment the following

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501 statement printed in at least 12-point bold, uppercase type: WE
502 ARE CONTINUING TO EVALUATE YOUR CLAIM INVOLVING YOUR INSURED
503 PROPERTY AND MAY ISSUE ADDITIONAL PAYMENTS. IF YOU HAVE
504 QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING YOUR
505 CLAIM, WE ENCOURAGE YOU TO CONTACT US.
506 J..2.l-t-§+(a) Within 90 calendar days after an insurer
507 receives notice of an initial, reopened, or supplemental
508 property insurance claim from a policyholder, the insurer shall
509 pay or deny such claim or a portion of the claim unless the
510 failure to pay is caused by factors beyond the control of the
511 insurer which reasonably prevent such payment. Any payment of an
512 initial or supplemental claim or portion of such claim made 90
513 calendar days after the insurer receives notice of the claim, or
514 made more than 15 days after there are no longer factors beyond
515 the control of the insurer which reasonably prevented such
516 payment, whichever is later, bears interest at the rate set
517 forth ins. 55.03. Interest begins to accrue from the date the
518 insurer receives notice of the claim. The provisions of this
519 subsection may not be waived, voided, or nullified by the terms
520 of the insurance policy. If there is a right to prejudgment
521 interest, the insured shall select whether to receive
522 prejudgment interest or interest under this subsection. Interest
523 is payable when the claim or portion of the claim is paid.
524 Failure to comply with this subsection constitutes a violation
525 of this code. However, failure to comply with this subsection

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526 does not form the sole basis for a private cause of action.
527 (b) Notwithstanding subsection J.21 +4+, for purposes of
528 this subsection, the term "claim" means any of the following:
529 1. A claim under an insurance policy providing residential
530 coverage as defined ins. 627.4025(1);
531 2. A claim for structural or contents coverage under a
532 commercial property insurance policy if the insured structure is
533 10,000 square feet or less; or
534 3. A claim for contents coverage under a commercial tenant
535 policy if the insured premises is 10,000 square feet or less.
536 (c) This subsection shall not apply to claims under an
537 insurance policy covering nonresidential commercial structures
538 or contents in more than one state.
539 (8) This section applies to surplus lines insurers and
540 surplus lines insurance authorized under ss. 626.913-626.937.
541 Section 19. Section 627.7031, Florida Statutes, is created
542 to read:
543 627.7031 Foreign venue clauses prohibited.-A property
544 insurance policy sold in this state after July 1, 2020, may not
545 require an insured to pursue dispute resolution through
546 litigation, arbitration, or mediation outside this state. This
547 section applies to surplus lines insurers and surplus lines
548 insurance authorized under ss. 626.913-626.937.
549 Section 20. Section 627.7142, Florida Statutes, is amended
550 to read:

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551 627.7142 Homeowner Claims Bill of Rights.-An insurer
552 issuing a personal lines residential property insurance policy
553 in this state must provide a Homeowner Claims Bill of Rights to
554 a policyholder within 14 days after receiving an initial
555 communication with respect to a claim, unless the claim follows
556 an event that is the subject of a declaration of a state of
557 emergency by the Governor. The purpose of the bill of rights is
558 to summarize, in simple, nontechnical terms, existing Florida
559 law regarding the rights of a personal lines residential
560 property insurance policyholder who files a claim of loss. The
561 Homeowner Claims Bill of Rights is specific to the claims
562 process and does not represent all of a policyholder's rights
563 under Florida law regarding the insurance policy. The Homeowner
564 Claims Bill of Rights does not create a civil cause of action by
565 any individual policyholder or class of policyholders against an
566 insurer or insurers. The failure of an insurer to properly
567 deliver the Homeowner Claims Bill of Rights is subject to
568 administrative enforcement by the office but is not admissible
569 as evidence in a civil action against an insurer. The Homeowner
570 Claims Bill of Rights does not enlarge, modify, or contravene
571 statutory requirements, including, but not limited to, ss.
572 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, and does
573 not prohibit an insurer from exercising its right to repair
574 damaged property in compliance with the terms of an applicable
575 policy or ss. 627.7011(5) (e) and 627.702(7). The Homeowner

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57 6 Claims Bill of Rights must state:
577
578 HOMEOWNER CLAIMS
579 BILL OF RIGHTS
580 This Bill of Rights is specific to the claims process
581 and does not represent all of your rights under
582 Florida law regarding your policy. There are also
583 exceptions to the stated timelines when conditions are
584 beyond your insurance company's control. This document
585 does not create a civil cause of action by an
586 individual policyholder, or a class of policyholders,
587 against an insurer or insurers and does not prohibit
588 an insurer from exercising its right to repair damaged
589 property in compliance with the terms of an applicable
590 policy.
591
592 YOU HAVE THE RIGHT TO:
593 1. Receive from your insurance company an
594 acknowledgment of your reported claim within 14
595 calendar days after the time you communicated the
596 claim.
597 2. Upon written request, receive from your insurance
598 company within 30 days after you have submitted a
599 complete proof-of-loss statement to your insurance
600 company, confirmation that your claim is covered in

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601 full, partially covered, or denied, or receive a
602 written statement that your claim is being
603 investigated.
604 3. Within 7 calendar days, receive notification from
605 your insurance company if there has been a change in
606 the company adjuster who is assigned to your claim.
607 The notification must include the assigned adjuster's
608 contact information.
609 4. Within 90 calendar days, subject to any dual
610 interest noted in the policy, receive full settlement
611 payment for your claim or payment of the undisputed
612 portion of your claim, or your insurance company's
613 denial of your claim.
614 5. Receive payment of interest from your insurance
615 company, which begins accruing from the date your
616 claim is filed if your insurance company does not pay
617 full settlement of your claim or the undisputed
618 portion of your claim or does not deny your claim
619 within 90 calendar days after your claim is filed. The
620 interest must be paid when your claim or undisputed
621 portion of your claim is paid.
622 6.4-:- Free mediation of your disputed claim by the
623 Florida Department of Financial Services, Division of
624 Consumer Services, under most circumstances and
625 subject to certain restrictions.

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62 6 7 . .§-.,- Neutral evaluation of your disputed claim, if
627 your claim is for damage caused by a sinkhole and is
628 covered by your policy.
629 8.-6. Contact the Florida Department of Financial
630 Services, Division of Consumer Services' toll-free
631 helpline for assistance with any insurance claim or
632 questions pertaining to the handling of your claim.
633 You can reach the Helpline by phone at ... (toll-free
634 phone number) ... , or you can seek assistance online at
635 the Florida Department of Financial Services, Division
636 of Consumer Services' website at ... (website
637 address) ....
638
639 YOU ARE ADVISED TO:
640 1. Contact your insurance company before entering
641 into any contract for repairs to confirm any managed
642 repair policy provisions or optional preferred
643 vendors.
644 2. Make and document emergency repairs that are
645 necessary to prevent further damage. Keep the damaged
646 property, if feasible, keep all receipts, and take
647 photographs or video of damage before and after any
648 repairs.
649 3. Carefully read any contract that requires you to
650 pay out-of-pocket expenses or a fee that is based on a

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651 percentage of the insurance proceeds that you will
652 receive for repairing or replacing your property.
653 4. Confirm that the contractor you choose is licensed
654 to do business in Florida. You can verify a
655 contractor's license and check to see if there are any
656 complaints against him or her by calling the Florida
657 Department of Business and Professional Regulation.
658 You should also ask the contractor for references from
659 previous work.
660 5. Require all contractors to provide proof of
661 insurance before beginning repairs.
662 6. Take precautions if the damage requires you to
663 leave your home, including securing your property and
664 turning off your gas, water, and electricity, and
665 contacting your insurance company and provide a phone
666 number where you can be reached.
667 Section 21. Paragraph (a) of subsection (1) and subsection
668 (6) of section 631.57, Florida Statutes, are amended to read:
669 631.57 Powers and duties of the association.-
670 (1) The association shall:
671 (a)l. Be obligated to the extent of the covered claims
672 existing:
673 a. Prior to adjudication of insolvency and arising within
674 30 days after the determination of insolvency;
675 b. Before the policy expiration date if less than 30 days

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676 after the determination; or
677 c. Before the insured replaces the policy or causes its
678 cancellation, if she or he does so within 30 days of the
679 determination.
680 2. The obligation under subparagraph 1. includes 6ft±-Y the
681 amount of each covered claim which is in c1ccess of $100 and is
682 less than $300,000, except that policies providing coverage for
683 homeowner's insurance shall provide for an additional $200,000
684 for the portion of a covered claim which relates only to the
685 damage to the structure and contents.
68 6 3.a. Notwithstanding subparagraph 2., the obligation under
687 subparagraph 1. for policies covering condominium associations
688 or homeowners' associations, which associations have a
689 responsibility to provide insurance coverage on residential
690 units within the association, shall include that amount of each
691 covered property insurance claim which is less than $100,000
692 multiplied by the number of condominium units or other
693 residential units; however, as to homeowners' associations, this
694 sub-subparagraph applies only to claims for damage or loss to
695 residential units and structures attached to residential units.
696 b. Notwithstanding sub-subparagraph a., the association
697 has no obligation to pay covered claims that are to be paid from
698 the proceeds of bonds issued under s. 631.695. However, the
699 association shall assign and pledge the first available moneys
700 from all or part of the assessments to be made under paragraph

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701 (3) (a) to or on behalf of the issuer of such bonds for the
702 benefit of the holders of such bonds. The association shall
703 administer any such covered claims and present valid covered
704 claims for payment in accordance with the provisions of the
705 assistance program in connection with which such bonds have been
706 issued.
707 4. In no event shall the association be obligated to a
708 policyholder or claimant in an amount in excess of the
709 obligation of the insolvent insurer under the policy from which
710 the claim arises.
711 (6) The association may extend the time limits specified
712 in paragraph (1) (a) by up to an additional 60 days or waive the
713 applicability of the $100 deductible specified in paragraph
714 (1) (a) if the board determines that either or both such actions
715 are necessary to facilitate the bulk assumption of obligations.
716 Section 22. Section 648.30, Florida Statutes, is amended
717 to read:
718 648.30 Licensure and appointment required; prohibited
719 acts; penalties.-
720 (1) A person may not act in the capacity of a bail bond
721 agent or temporary bail bond agent or perform any of the
722 functions, duties, or powers prescribed for bail bond agents or
723 temporary bail bond agents under this chapter unless that person
724 is qualified, licensed, and appointed as provided in this
725 chapter.

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72 6 (2) A person may not represent himself or herself to be a
727 bail enforcement agent, bounty hunter, or other similar title in
728 this state.
729 (3) A person, other than a certified law enforcement
730 officer, may not apprehend, detain, or arrest a principal on a
731 bond, wherever issued, unless that person is qualified,
732 licensed, and appointed as provided in this chapter or licensed
733 as a bail bond agent or bail bond enforcement agent, or holds an
734 equivalent license by the state where the bond was written.
735 (4) Any person who violates this section commits a felony
736 of the third degree, punishable as provided ins. 775.082, s.
737 775.083, ors. 775.084.
738 (5) Any licensee under this chapter who knowingly aids or
739 abets an unlicensed person in violating this section commits a
740 felony of the third degree, punishable as provided ins.
741 775.082, s. 775.083, ors. 775.084.
742 Section 23. Paragraphs (b) and (c) of subsection (4) and
743 subsections (1) and (10) of section 717.124, Florida Statutes,
744 are amended to read:
745 717.124 Unclaimed property claims.-
746 (1) Any person, excluding another state, claiming an
747 interest in any property paid or delivered to the department
748 under this chapter may file with the department a claim on a
749 form prescribed by the department and verified by the claimant
750 or the claimant's representative. The claimant's representative

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751 must be an attorney licensed to practice law in this state, a
752 licensed Florida-certified public accountant, or a private
753 investigator licensed under chapter 493. The claimant's
754 representative must be registered with the department under this
755 chapter. The claimant, or the claimant's representative, shall
756 provide the department with a legible copy of a valid driver
757 license of the claimant at the time the original claim form is
758 filed. If the claimant has not been issued a valid driver
759 license at the time the original claim form is filed, the
760 department shall be provided with a legible copy of a
761 photographic identification of the claimant issued by the United
762 States, a state or territory of the United States, a foreign
763 nation, or a political subdivision or agency thereof or other
764 evidence deemed acceptable by the department by rule. In lieu of
765 photographic identification, a notarized sworn statement by the
766 claimant may be provided which affirms the claimant's identity
767 and states the claimant's full name and address. The claimant
7 68 must produce to the notary photographic identification of the
769 claimant issued by the United States, a state or territory of
770 the United States, a foreign nation, or a political subdivision
771 or agency thereof or other evidence deemed acceptable by the
772 department by rule. The notary shall indicate the notary's full
773 address on the notarized sworn statement. Any claim filed
774 without the required identification or the sworn statement with
775 the original claim form and the original Florida Uniform

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776 Unclaimed Property Recovery Agreement or Florida Uniform
777 Property Purchase Agreement power of attorney or purchase
778 agreement, if applicable, is void.
779 (a) Within 90 days after receipt of a claim, the
780 department may return any claim that provides for the receipt of
781 fees and costs greater than that permitted under this chapter or
782 that contains any apparent errors or omissions. The department
783 may also request that the claimant or the claimant's
784 representative provide additional information. The department
785 shall retain a copy or electronic image of the claim.
786 (b) A claimant or the claimant's representative shall be
787 deemed to have withdrawn a claim if no response to the
788 department's request for additional information is received by
789 the department within 60 days after the notification of any
790 apparent errors or omissions.
791 (c) Within 90 days after receipt of the claim, or the
792 response of the claimant or the claimant's representative to the
793 department's request for additional information, whichever is
794 later, the department shall determine each claim. Such
795 determination shall contain a notice of rights provided by ss.
796 120.569 and 120.57. The 90-day period shall be extended by 60
797 days if the department has good cause to need additional time or
798 if the unclaimed property:
799 1. Is owned by a person who has been a debtor in
800 bankruptcy;

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801 2. Was reported with an address outside of the United
802 States;
803 3. Is being claimed by a person outside of the United
804 States; or
805 4. Contains documents filed in support of the claim that
806 are not in the English language and have not been accompanied by
807 an English language translation.
808 (d) The department shall deny any claim under which the
809 claimant's representative has refused to authorize the
810 department to reduce the fees and costs to the maximum permitted
811 under this chapter.
812 ( 4)

813 (b) If an owner authorizes an attorney licensed to
814 practice law in this state, Florida-certified public accountant,
815 or private investigator licensed under chapter 493, and
816 registered with the department under this chapter, to claim the
817 unclaimed property on the owner's behalf, the department is
818 authorized to make distribution of the property or money in
819 accordance with the Florida Uniform Unclaimed Property Recovery
820 Agreement or Florida Uniform Property Purchase Agreement under
821 s. 717.135 ouch power of attorney. The original Florida Uniform
822 Unclaimed Property Recovery Agreement or Florida Uniform
823 Property Purchase Agreement power of attorney must be executed
824 by the claimant or seller owner and must be filed with the
825 department.

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HB 1137 2020

826 (c) 1. Payments of approved claims for unclaimed cash
827 accounts shall be made to the owner after deducting any fees and
828 costs authorized pursuant to a Florida Uniform Unclaimed
829 Property Recovery Agreement written power of attorney. The
830 contents of a safe-deposit box shall be delivered directly to
831 the claimant notwithstanding any power of attorney or agreeffient
832 to the contrary.
833 2. Payments of fees and costs authorized pursuant to a
834 Florida Uniform Unclaimed Property Recovery Agreement written
835 power of attorney for approved claims must shall be made or
836 issued to the law firm of the designated attorney licensed to
837 practice law in this state, the public accountancy firm of the
838 licensed Florida-certified public accountant, or the designated
839 employing private investigative agency licensed by this state.
840 Such payments shall be made by electronic funds transfer and may
841 be made on such periodic schedule as the department may define
842 by rule, provided the payment intervals do not exceed 31 days.
843 Payment made to an attorney licensed in this state, a Florida-
844 certified public accountant, or a private investigator licensed
845 under chapter 493, operating individually or as a sole
846 practitioner, shall be to the attorney, certified public
847 accountant, or private investigator.
848 (10) Notwithstanding any other provision of this chapter,
849 the department may develop a process by which a registered
850 claimant's representative or a buyer of unclaimed property may

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HB 1137 2020

851 electronically submit to the department an electronic image of a
852 completed claim and claims-related documents pursuant to this
853 chapter, including a Florida Uniform Unclaimed Property Recovery
854 Agreement or Florida Uniform Property Purchase Agreement a
855 limited power of attorney or purchase agreement that has been
856 manually signed and dated by a claimant or seller pursuant to s.
857 717.135 ors. 717.1351, after the claimant's representative or
858 the buyer of unclaimed property receives the original documents
859 provided by the claimant or the seller for any claim. Each claim
860 filed by a registered claimant's representative or a buyer of
861 unclaimed property must include a statement by the claimant's
862 representative or the buyer of unclaimed property attesting that
863 all documents are true copies of the original documents and that
864 all original documents are physically in the possession of the
865 claimant's representative or the buyer of unclaimed property.
866 All original documents must be kept in the original form, by
867 claim number, under the secure control of the claimant's
868 representative or the buyer of unclaimed property and must be
869 available for inspection by the department in accordance withs.
870 717.1315. The department may adopt rules to implement this
871 subsection.
872 Section 24. Subsection (2) of section 717.12404, Florida
873 Statutes, is amended to read:
874 717.12404 Claims on behalf of a business entity or trust.-
875 (2) Claims on behalf of a dissolved corporation, a

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HB 1137 2020

876 business entity other than an active corporation, or a trust
877 must include a legible copy of a valid driver license of the
878 person acting on behalf of the dissolved corporation, business
879 entity other than an active corporation, or trust. If the person
880 has not been issued a valid driver license, the department shall
881 be provided with a legible copy of a photographic identification
882 of the person issued by the United States, a foreign nation, or
883 a political subdivision or agency thereof. In lieu of
884 photographic identification, a notarized sworn statement by the
885 person may be provided which affirms the person's identity and
886 states the person's full name and address. The person must
887 produce his or her photographic identification issued by the
888 United States, a state or territory of the United States, a
889 foreign nation, or a political subdivision or agency thereof or
890 other evidence deemed acceptable by the department by rule. The
891 notary shall indicate the notary's full address on the notarized
892 sworn statement. Any claim filed without the required
893 identification or the sworn statement with the original claim
894 form and the original Florida Uniform Unclaimed Property
895 Recovery Agreement or Florida Uniform Property Purchase
896 Agreement power of attorRey, if applicable, is void.
897 Section 25. Subsection (1) of section 717.1315, Florida
898 Statutes, is amended to read:
899 717.1315 Retention of records by claimant's
900 representatives and buyers of unclaimed property.-

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HB 1137 2020

901 ( 1) Every claimant's representative and buyer of unclaimed
902 property shall keep and use in his or her business such books,
903 accounts, and records of the business conducted under this
904 chapter to enable the department to determine whether such
905 person is complying with this chapter and the rules adopted by
906 the department under this chapter. Every claimant's
907 representative and buyer of unclaimed property shall preserve
908 such books, accounts, and records, including every Florida
909 Uniform Unclaimed Property Recovery Agreement or Florida Uniform
910 Property Purchase Agreement power of attorney or agreement
911 between the owner and such claimant's representative or buyer,
912 for at least 3 years after the date of the initial power of
913 attorney or agreement.
914 Section 26. Paragraph (j) of subsection (1) of section
915 717.1322, Florida Statutes, is amended to read:
916 717.1322 Administrative and civil enforcement.-
917 (1) The following acts are violations of this chapter and
918 constitute grounds for an administrative enforcement action by
919 the department in accordance with the requirements of chapter
920 120 and for civil enforcement by the department in a court of
921 competent jurisdiction:
922 (j) Requesting or receiving compensation for notifying a
923 person of his or her unclaimed property or assisting another
924 person in filing a claim for unclaimed property, unless the
925 person is an attorney licensed to practice law in this state, a

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HB 1137 2020

926 Florida-certified public accountant, or a private investigator
927 licensed under chapter 493, or entering into, or making a
928 solicitation to enter into, an agreement a power of attorney to
929 file a claim for unclaimed property owned by another, or a
930 contract or agreement to purchase unclaimed property, unless
931 such person is registered with the department pursuant to this
932 chapter and an attorney licensed to practice law in this state
933 in the regular practice of her or his profession, a Florida-
934 certified public accountant who is acting within the scope of
935 the practice of public accounting as defined in chapter 473, or
936 a private investigator licensed under chapter 493. This
937 subsection does not apply to a person who has been granted a
938 durable power of attorney to convey and receive all of the real
939 and personal property of the owner, is the court-appointed
940 guardian of the owner, has been employed as an attorney or
941 qualified representative to contest the department's denial of a
942 claim, or has been employed as an attorney to probate the estate
943 of the owner or an heir or legatee of the owner.
944 Section 27. Section 717.135, Florida Statutes, is amended
945 to read:
946 (Substantial rewording of section. See
947 s. 717.135, F.S., for present text.)
948 717.135 Recovery agreements and purchase agreements for
949 claims filed by claimant's representative; fees and costs.-
950 (1) In order to protect the interests of owners of

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HB 1137 2020

951 unclaimed property, the department shall adopt by rule a form
952 entitled ''Florida Uniform Unclaimed Property Recovery Agreement"
953 and a form entitled "Florida Uniform Property Purchase
954 Agreement."
955 (2) The Florida Uniform Unclaimed Property Recovery
956 Agreement form and the Florida Uniform Property Purchase
957 Agreement form must include and disclose:
958 (a) The total dollar amount of unclaimed property accounts
959 claimed or sold.
960 (b) Either the total percentage of all authorized fees and
961 costs to be paid to the claimant's representative or the
962 percentage of the value of the property to be paid as net gain
963 to the purchasing registered claimant's representative.
964 (c) Either the total dollar amount to be deducted and
965 received from the claimant as fees and costs by the claimant's
966 representative or the total net dollar amount to be received by
967 the purchasing registered claimant's representative.
968 (d) The net dollar amount to be received by the claimant
969 or seller.
970 (e) For each account claimed, the unclaimed property
971 account number and name of the apparent owner, as listed on the
972 department's database.
973 (f) For the Florida Uniform Property Purchase Agreement, a
974 statement that the purchase price will be remitted to the seller
975 within 30 days after the execution of the form by the seller.

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97 6 (g) The name, address, e-mail address, phone number, and
977 license number of the registered claimant's representative.
978 (h) The manual signature of the claimant or seller and the
979 date signed.
980 (i) The social security number or taxpayer identification
981 number of the claimant or seller, if available. A number is
982 available if one has been issued to the claimant or seller.
983 (j) A limit of total fees and costs, or the total discount
984 amount in the case of a purchase agreement, to no more than 20
985 percent of the claimed amount.
986 (3) For a Florida Uniform Property Purchase Agreement
987 form, proof that the seller has received payment must be filed
988 with the department along with the claim. If proof of payment is
989 not provided, the claim is void.
990 (4) A registered claimant's representative shall use the
991 Florida Uniform Unclaimed Property Recovery Agreement form or
992 the Florida Uniform Property Purchase Agreement form as the
993 exclusive means of engaging with a claimant or seller to file a
994 claim with the department.
995 (5) Fees and costs may be owed or paid to a registered
996 claimant's representative only pursuant to the forms authorized
997 by this section and upon approval of the claim filed thereby.
998 (6) A claimant's representative may not use or distribute
999 any other agreement of any type with respect to the claimant or
1000 seller which relates to unclaimed property accounts held by the

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HB 1137 2020

1001 department or the Chief Financial Officer other than the
1002 agreements authorized by this section. Any agreement that is not
1003 authorized by this section is null and void.
1004 (7) The forms under subsection (1):
1005 (a) May not contain language that makes the agreement
1006 irrevocable; and
1007 (b) May not contain language that creates an assignment of
1008 any unclaimed property held by the department.
1009 (8) This section does not supersede the conflicting claims
1010 provisions of s. 717.1241.
1011 (9) At the time a claim is approved, the department may
1012 pay any additional account that is owned by the claimant but has
1013 not been claimed at the time of approval, provided that no
1014 subsequent claim has been filed and is pending for the claimant
1015 at the time of approval.
1016 Section 28. Section 717.1351, Florida Statutes, is
1017 repealed.
1018 Section 29. This act shall take effect upon becoming a
1019 law.

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INSURANCE & BANKING SUBCOMMITTEE

HB 1137 by Rep. Clemons
Consumer Protection

AMENDMENT SUMMARY
January 28, 2020

Amendment 1 by Rep. Clemons (strike-all): The strike-all amendment contains the current
provisions of the bill and makes the following modifications and clarifications:
• Clarifies that the documents a licensee must provide to DFS or OIR in response to a
written request are only those documents that are not subject to attorney-client
privilege.
• Clarifies that consumers must either sign or otherwise acknowledge receipt of the
disclosure notifying them of the export of their insurance policies to the surplus lines
market and eliminates from that disclosure the statement that coverage on the
admitted market may be cheaper.
• Clarifies that collateral protection insurance by a mortgagee or escrow does not
constitute sliding.
• Eliminates the requirement that personal lines residential property insurers must
send the Homeowner Claims Bill of Rights to policyholders each year. It also
expands the period during which such insurers must mail hurricane coverage
information to policyholders from March 3 through April 1, to March 1 through June 1
and provides that this information will only be provided to policyholders who have
email addresses on file with their insurers.
• Eliminates the requirement that an insurer send a copy of a physical inspection
report from an adjuster to a policyholder.
• Changes the effective date for certain sections of the bill to January 1, 2021.
• Makes various formatting and technical changes.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1137 (2020)
Amendment No. 1

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Clemons offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Paragraph (b) of subsection (9) of section
8 501.0051, Florida Statutes, is amended to read:
9 501.0051 Protected consumer report security freeze.-
10 ( 9)

11 (b) A consumer reporting agency may not charge to a
12 reasonable fee, not to e1cceed $10, if the representative fails
13 to retain the original unique personal identifier provided by
14 the consumer reporting agency and the agency must reissue the
15 unique personal identifier or provide a new unique personal
16 identifier to the consumer representative.

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Bill No. HB 1137 (2020)
Amendment No. 1

17 Section 2. Paragraph (b) of subsection (10) of section
18 624.307, Florida Statutes, is amended to read:
19 624.307 General powers; duties.-
20 ( 10)
21 (b) Any entity person licensed or issued a certificate of
22 authority by the department or the office shall respond, in
23 writing, to the division within 20 days after receipt of a
24 written request for documents and information from the division
25 concerning a consumer complaint. The response must address the
26 issues and allegations raised in the complaint and include any
27 requested documents concerning the consumer complaint not
28 subject to attorney-client privilege. The division may impose an
29 administrative penalty for failure to comply with this paragraph
30 of up to $2,500 per violation upon any entity licensed by the
31 department or the office and $250 for the first violation, $500
32 for the second violation, and up to $1,000 for the third or
33 subsequent violation upon any individual licensed by the
34 department or the office.
35 Section 3. Present subsection (9) of section 626.112,
36 Florida Statutes, is redesignated as subsection (10), a new
37 subsection (9) is added to that section, and paragraph (d) of
38 subsection (7) and present subsection (9) of that section are
39 amended, to read:
40 626.112 License and appointment required; agents, customer
41 representatives, adjusters, insurance agencies, service

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1137 (2020)
Amendment No. 1

42 representatives, managing general agents, insurance adjusting
43 firms.-
44 ( 7)

45 (d) Effective October 1, 2015, the department must
46 automatically convert the registration of an approved registered
47 insurance agency to an insurance agency license.
48 (9) (a) An individual, firm, partnership, corporation,
49 association, or other entity may not act in its own name or
50 under a trade name, directly or indirectly, as an adjusting firm
51 unless it complies withs. 626.8696 with respect to possessing
52 an adjusting firm license for each place of business at which it
53 engages in an activity that may be performed only by a licensed
54 insurance adjuster. However, an adjusting firm that is owned and
55 operated by a single licensed adjuster conducting business in
56 his or her individual name and not employing or otherwise using
57 the services of or appointing other licensees is exempt from the
58 adjusting firm licensing requirements of this subsection.
59 (b) A branch place of business that is established by a
60 licensed adjusting firm is considered a branch firm and is not
61 required to be licensed if:
62 1. It transacts business under the same name and federal
63 tax identification number as the licensed adjusting firm;
64 2. It has designated with the department a primary
65 adjuster operating the location as required bys. 626.8695; and
66 3. The address and telephone number of the branch location

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1137 (2020)
Amendment No. 1

67 have been submitted to the department for inclusion in the
68 licensing record of the licensed adjusting firm within 30 days
69 after insurance transactions begin at the branch location.
70 (c) If an adjusting firm is required to be licensed, but
71 fails to file an application for licensure in accordance with
72 this section, the department shall impose on the firm an
73 administrative penalty of up to $10,000.
74 (10)+9+ Any person who knowingly transacts insurance or
75 otherwise engages in insurance activities in this state without
76 a license in violation of this section or who knowingly aids or
77 abets an unlicensed person in transacting insurance or otherwise
78 engaging in insurance activities in this state without a license
79 commits a felony of the third degree, punishable as provided in
80 s. 775.082, s. 775.083, or s. 775.084.
81 Section 4. Subsection (4) is added to section 626.602,
82 Florida Statutes, to read:
83 626.602 Insurance agency names; disapproval.-The
84 department may disapprove the use of any true or fictitious
85 name, other than the bona fide natural name of an individual, by
86 any insurance agency on any of the following grounds:
87 ( 4) The name contains the word "Medicare" or "Medicaid."
88 An insurance agency whose name contains the word "Medicare" or
89 "Medicaid" but which is licensed as of July 1, 2 02 0, may
90 continue to use that name as long as the agency's license is
91 valid. If the agency's license expires or is suspended or

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1137 (2020)
Amendment No. 1

92 revoked, the agency may not be relicensed using that name.
93 Section 5. Subsections (16) and (17) are added to section
94 626.621, Florida Statutes, to read:
95 626.621 Grounds for discretionary refusal, suspension, or
96 revocation of agent's, adjuster's, customer representative's,
97 service representative's, or managing general agent's license or
98 appointment.-The department may, in its discretion, deny an
99 application for, suspend, revoke, or refuse to renew or continue
100 the license or appointment of any applicant, agent, adjuster,
101 customer representative, service representative, or managing
102 general agent, and it may suspend or revoke the eligibility to
103 hold a license or appointment of any such person, if it finds
104 that as to the applicant, licensee, or appointee any one or more
105 of the following applicable grounds exist under circumstances
106 for which such denial, suspension, revocation, or refusal is not
107 mandatory under s. 626.611:
108 (16) Permitting the personal financial or medical
109 information of a consumer or customer to be made available or
110 accessible to the general public, regardless of the format in
111 which the record is stored.
112 ( 17) Initiating in-person or telephone solicitation after
113 9 p.m. or before 8 a.m. local time of the prospective customer
114 unless requested by the prospective customer.
115 Section 6. Section 626.782, Florida Statutes, is amended
116 to read:
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Bill No. HB 1137 (2020)
Amendment No. 1

117 626.782 "Industrial class insurer" defined.-An "industrial
118 class insurer" is an insurer collecting premiums on policies of
119 writing industrial life insurance, as defined ins. 627.502,
120 written before July 1, 2020, and as to such insuranceL operates
121 under a system of collecting a debit by its agent.
122 Section 7. Section 626.783, Florida Statutes, is amended
123 to read:
124 626.783 "Ordinary-combination class insurer" defined.-An
125 "ordinary-combination class insurer" is an insurer writing ee-t-fi
126 ordinary class insurance and collecting premiums on existing
127 industrial life class insurance under s. 626.782.
128 Section 8. Section 626.796, Florida Statutes, is repealed.
129 Section 9. Subsection (1) of section 626.8443, Florida
130 Statutes, is amended to read:
131 626.8443 Duration of suspension or revocation.-
132 (1) The department shall, in its order suspending a title
133 insurance agent's or agency's license or appointment or in its
134 order suspending the eligibility of a person to hold or apply
135 for such license or appointment, specify the period during which
136 the suspension is to be in effect, but such period shall not
137 exceed 2 years 1 year. The license, e-r- appointment, or
138 eligibility shall remain suspended during the period so
139 specified, subject, however, to any rescission or modification
140 of the order by the department, or modification or reversal
141 thereof by the court, prior to expiration of the suspension
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Bill No. HB 1137 (2020)
Amendment No. 1

142 period. A license, appointment, or eligibility that which has
143 been suspended may not be reinstated except upon request for
144 such reinstatement, but the department shall not grant such
145 reinstatement if it finds that the circumstance or circumstances
146 for which the license, appointment, and eligibility was
147 suspended still exist or are likely to recur.
148 Section 10. Subsection (6) of section 626.854, Florida
149 Statutes, is amended to read:
150 626.854 "Public adjuster" defined; prohibitions.-The
151 Legislature finds that it is necessary for the protection of the
152 public to regulate public insurance adjusters and to prevent the
153 unauthorized practice of law.
154 (6) Except during a state of emergency declared by the
155 Governor and except during the 1-year period after the date of
156 loss, an insured or claimant may cancel a public adjuster's
157 contract to adjust a claim without penalty or obligation within
158 7 calendar 3 business days after the date on which the contract
159 is executed or within 7 calendar 3 business days after the date
160 on which the insured or claimant has notified the insurer of the
161 claim, whichever is later. During a state of emergency declared
162 by the Governor or during the 1-year period after the date of
163 loss, an insured or claimant may cancel a public adjuster's
164 contract to adjust a claim without penalty or obligation within
165 21 calendar days after the date on which the contract is
166 executed or within 21 calendar days after the date on which the

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1137 (2020)
Amendment No. 1

167 insured or claimant has notified the insurer of the claim,
168 whichever is later. The public adjuster's contract must disclose
169 to the insured or claimant his or her right to cancel the
170 contract and advise the insured or claimant that notice of
171 cancellation must be submitted in writing and sent by certified
172 mail, return receipt requested, or other form of mailing that
173 provides proof thereof, to the public adjuster at the address
174 specified in the contract; provided, during any state of
175 emergency as declared by the Governor and for 1 year after the
176 date of loss, the insured or claimant has 5 business days after
177 the date on which the contract is executed to cancel a public
178 adjuster's contract.
179 Section 11. Effective January 1, 2021, subsection (3) of
180 section 626.916, Florida Statutes, is amended, and paragraph (f)
181 is added to subsection (1) of that section, to read:
182 626.916 Eligibility for export.-
183 (1) No insurance coverage shall be eligible for export
184 unless it meets all of the following conditions:
185 (f) The insured has signed or otherwise provided
18 6 documented acknowledgement of a disclosure in substantially the
187 following form: "You are agreeing to place coverage in the
188 surplus lines market. Coverage may be available in the admitted
189 market. Persons insured by surplus lines carriers are not
190 protected under the Florida Insurance Guaranty Act with respect
191 to any right of recovery for the obligation of an insolvent
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Amendment No. 1

192 unlicensed insurer."
193 (3) (a) Subsection (1) does not apply to wet marine and
194 transportation or aviation risks that which are subject to s.
195 626.917.
196 (b) Paragraphs ( 1) (a) - (d) do not apply to classes of
197 insurance which are subject to s. 627.062(3) (d)l. These classes
198 may be exportable under the following conditions:
199 1. The insurance must be placed only by or through a
200 surplus lines agent licensed in this state;
201 2. The insurer must be made eligible under s. 626.918; and
202 3. The insured has complied with must sign a disclosure
203 paragraph ( 1) ( f) that substantially provides the following: "You
204 are agreeing to place coverage in the surplus lines market.
205 Superior coverage may be available in the admitted market and at
206 a lesser cost. Persons insured by surplus lines carriers are not
207 protected under the Florida Insurance Guaranty Act with respect
208 to any right of recovery for the obligation of an insolvent
209 unlicensed insurer." If the disclosure notice is signed by the
210 insured, the insured is presumed to have been informed and to
211 know that other coverage may be available, and, with respect to
212 the diligent-effort requirement under subsection (1), there is
213 no liability on the part of, and no cause of action arises
214 against, the retail agent presenting the form.
215 Section 12. Paragraph (z) of subsection (1) of section
216 626.9541, Florida Statutes, is amended to read:

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Amendment No. 1

217 626.9541 Unfair methods of competition and unfair or
218 deceptive acts or practices defined.-
219 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
220 ACTS.-The following are defined as unfair methods of competition
221 and unfair or deceptive acts or practices:
222 (z) Sliding.-Sliding is the act or practice of any of the
223 following:
224 1. Representing to the applicant that a specific ancillary
225 coverage or product is required by law in conjunction with the
226 purchase of insurance when such coverage or product is not
227 required..:.._f-
228 2. Representing to the applicant that a specific ancillary
229 coverage or product is included in the policy applied for
230 without an additional charge when such charge is required..:.._-t-----e-r-
231 3. Charging an applicant for a specific ancillary coverage
232 or product, in addition to the cost of the insurance coverage
233 applied for, without the informed consent of the applicant.
234 4. Initiating, effectuating, binding, or otherwise issuing
235 a policy of insurance without the prior informed consent of the
236 owner of the property to be insured.
237 5. Mailing, transmitting, or otherwise submitting by any
238 means an invoice for premium payment to a mortgagee or escrow
239 agent, for the purpose of effectuating an insurance policy,
240 without the prior informed consent of the owner of the property
241 to be insured. However, this subparagraph does not apply in

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Bill No. HB 1137 (2020)
Amendment No. 1

242 cases where the mortgagee or escrow is renewing insurance or
243 issuing collateral protection insurance as defined ins.
244 624.6085, F.S., pursuant to the mortgage or other pertinent loan
245 documents or communications regarding the property.
246 Section 13. Effective January 1, 2021, subsection (3) of
247 section 626.9741, Florida Statutes, is amended to read:
248 626.9741 Use of credit reports and credit scores by
249 insurers.-
250 (3) An insurer must inform an applicant or insured, in the
251 same medium as the application is taken, that a credit report or
252 score is being requested for underwriting or rating purposes.
253 The notification to the consumer must include the following
254 language: "The Department of Financial Services offers free
255 financial literacy programs to assist you in understanding how
256 credit scores are calculated, what factors are considered, and
257 how credit works. The Department's toll-free Insurance Consumer
258 Helpline is available to assist you with insurance-related
259 questions and inquiries. To learn more about the free financial
260 literacy programs or for help with insurance, call 1-877-693-
261 5236 or visit www.MyFloridaCFO.com." An insurer that makes an
262 adverse decision based, in whole or in part, upon a credit
263 report must provide at no chargeT a copy of the credit report to
264 the applicant or insured or provide the applicant or insured
265 with the name, address, and telephone number of the consumer
266 reporting agency from which the insured or applicant may obtain
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267 the credit report. The insurer must provide notification to the
268 consumer explaining the reasons for the adverse decision. The
269 reasons must be provided in sufficiently clear and specific
270 language so that a person can identify the basis for the
271 insurer's adverse decision. Such notification shall include a
272 description of the four primary reasons, or such fewer number as
273 existed, which were the primary influences of the adverse
274 decision. The use of generalized terms such as "poor credit
275 history," "poor credit rating," or "poor insurance score" does
276 not meet the explanation requirements of this subsection. A
277 credit score may not be used in underwriting or rating insurance
278 unless the scoring process produces information in sufficient
279 detail to permit compliance with the requirements of this
280 subsection. It shall not be deemed an adverse decision if, due
281 to the insured's credit report or credit score, the insured
282 continues to receive a less favorable rate or placement in a
283 less favorable tier or company at the time of renewal except for
284 renewals or reunderwriting required by this section.
285 Section 14. Subsection (1) of section 626.9957, Florida
286 Statutes, is amended to read:
287 626.9957 Conduct prohibited; denial, revocation, or
288 suspension of registration.-
289 (1) As provided ins. 626.112, only a person licensed as
2 90 an insurance agent or customer representative may engage in the
291 solicitation of insurance. A person who engages in the
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292 solicitation of insurance as described ins. 626.112(1) without
293 such license is subject to the penalties provided under s.
294 626.112(10) s. 626.112(9).
295 Section 15. Subsection (10) of section 627.062, Florida
296 Statutes, is amended to read:
297 627.062 Rate standards.-
298 (10) Any interest paid pursuant to s. 627.70131(7) -s--.
299 627.70131(5) may not be included in the insurer's rate base and
300 may not be used to justify a rate or rate change.
301 Section 16. Effective January 1, 2021, subsection (6) is
302 added to section 627.421, Florida Statutes, to read:
303 627.421 Delivery of policy.-
304 (6) For personal lines residential property insurance
305 policies, the insurer shall, between March 1 and June 1 of each
306 year, inclusive, deliver a an outline of the hurricane coverage
307 included in the policy, including the hurricane deductible and
308 the coverages and exclusions to all policyholders. This
309 requirement shall apply only for those insureds that have
310 provided the insurer with a valid e-mail address. This
311 information shall be delivered directly to the policyholder via
312 email or by an e-mail notice of information being posted to a
313 secure web-based policy information page.
314 Section 17. Section 627.502, Florida Statutes, is amended
315 to read:
316 627.502 "Industrial life insurance" defined; reporting1._
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317 prohibition on new policies after a certain date.-
318 ( 1) For the purposes of this code, "industrial life
319 insurance" is that form of life insurance written under policies
320 under which premiums are payable monthly or more often, bearing
321 the words "industrial policy" or "weekly premium policy" or
322 words of similar import imprinted upon the policies as part of
323 the descriptive matter, and issued by an insurer that which, as
324 to such industrial life insurance, is operating under a system
325 of collecting a debit by its agent.
326 (2) Every life insurer servicing existing transacting
327 industrial life insurance shall report to the office all annual
328 statement data regarding the exhibit of life insurance,
329 including relevant information for industrial life insurance.
330 (3) Beginning July 1, 2020, a life insurer may not write a
331 new policy of industrial life insurance.
332 Section 18. Effective January 1, 2021, section 627.70131,
333 Florida Statutes, is amended to read:
334 627.70131 Insurer's duty to acknowledge communications
335 regarding claims; investigation.-
336 (1) (a) Upon an insurer's receiving a communication with
337 respect to a claim, the insurer shall, within 14 calendar days,
338 review and acknowledge receipt of such communication unless
339 payment is made within that period of time or unless the failure
340 to acknowledge is caused by factors beyond the control of the
341 insurer which reasonably prevent such acknowledgment. If the
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342 acknowledgment is not in writing, a notification indicating
343 acknowledgment shall be made in the insurer's claim file and
344 dated. A communication made to or by a representative an agent
345 of an insurer with respect to a claim shall constitute
346 communication to or by the insurer.
347 (b) As used in this subsection, the term "representative"
348 "agent'' means any person to whom an insurer has granted
349 authority or responsibility to receive or make such
350 communications with respect to claims on behalf of the insurer.
351 (c) This subsection shall not apply to claimants
352 represented by counsel beyond those communications necessary to
353 provide forms and instructions.
354 (2) Such acknowledgment shall be responsive to the
355 communication. If the communication constitutes a notification
356 of a claim, unless the acknowledgment reasonably advises the
357 claimant that the claim appears not to be covered by the
358 insurer, the acknowledgment shall provide necessary claim forms,
359 and instructions, including an appropriate telephone number.
360 (3) (a) Unless otherwise provided by the policy of
361 insurance or by law, within 10 business worlcing days after an
362 insurer receives proof of loss statements, the insurer shall
363 begin such investigation as is reasonably necessary unless the
364 failure to begin such investigation is caused by factors beyond
365 the control of the insurer which reasonably prevent the
366 commencement of such investigation.

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367 (b) If such investigation involves a physical inspection
368 of the property, the licensed adjuster assigned by the insurer
369 must provide the policyholder with his or her name, license
370 number, and contact information.
371 (c) If an insurer assigns the claim to a different
372 licensed adjuster from the adjuster who performed the physical
373 inspection, the insurer must, within 7 days after changing the
374 licensed insurance adjuster assigned to a claim, provide the
375 name, license number, and contact information of the new
376 adjuster to the policyholder. The notification may be sent
377 electronically or via mail. If the notification is a physical
378 letter, it must be postmarked within 7 days after the change in
379 adjuster. The policyholder must be provided notice of any
380 subsequent change to the assigned adjuster as set forth by this
381 paragraph.
382 (4) An insurer shall establish a process by which an agent
383 of record for an insurance policy receives the same notice as
384 the policyholder as provided in paragraphs (b) and (c) of
385 subsection (3) in order to assist the agent of record in
386 answering the policyholder's questions regarding claims. As used
387 in this subsection, the term "agent of record" means the agent
388 named on the declarations page of the insurance policy.
389 ill For purposes of this section, the term "insurer" means
390 any residential property insurer.
391 (6) (a) When providing a preliminary or partial estimate of
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392 damage regarding a claim, an insurer shall include with the
393 estimate the following statement printed in at least 12-point
394 bold, uppercase type: THIS ESTIMATE REPRESENTS OUR CURRENT
395 EVALUATION OF THE LOSS TO YOUR INSURED PROPERTY AND MAY BE
396 REVISED AS WE CONTINUE TO EVALUATE YOUR CLAIM. IF YOU HAVE
397 QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING YOUR
398 CLAIM, WE ENCOURAGE YOU TO CONTACT US.
399 (b) When providing a preliminary or partial payment on a
400 claim, an insurer shall include with the payment the following
401 statement printed in at least 12-point bold, uppercase type: WE
402 ARE CONTINUING TO EVALUATE YOUR CLAIM INVOLVING YOUR INSURED
403 PROPERTY AND MAY ISSUE ADDITIONAL PAYMENTS. IF YOU HAVE
404 QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING YOUR
405 CLAIM, WE ENCOURAGE YOU TO CONTACT US.
406 (7)--f-S+(a) Within 90 calendar days after an insurer
407 receives notice of an initial, reopened, or supplemental
408 property insurance claim from a policyholder, the insurer shall
409 pay or deny such claim or a portion of the claim unless the
410 failure to pay is caused by factors beyond the control of the
411 insurer which reasonably prevent such payment. Any payment of an
412 initial or supplemental claim or portion of such claim made 90
413 calendar days after the insurer receives notice of the claim, or
414 made more than 15 days after there are no longer factors beyond
415 the control of the insurer which reasonably prevented such
416 payment, whichever is later, bears interest at the rate set
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417 forth ins. 55.03. Interest begins to accrue from the date the
418 insurer receives notice of the claim. The provisions of this
419 subsection may not be waived, voided, or nullified by the terms
420 of the insurance policy. If there is a right to prejudgment
421 interest, the insured shall select whether to receive
422 prejudgment interest or interest under this subsection. Interest
423 is payable when the claim or portion of the claim is paid.
424 Failure to comply with this subsection constitutes a violation
425 of this code. However, failure to comply with this subsection
426 does not form the sole basis for a private cause of action.
427 (b) Notwithstanding subsection~ -f-4+, for purposes of
428 this subsection, the term "claim" means any of the following:
429 1. A claim under an insurance policy providing residential
430 coverage as defined ins. 627.4025(1);
431 2. A claim for structural or contents coverage under a
432 commercial property insurance policy if the insured structure is
433 10,000 square feet or less; or
434 3. A claim for contents coverage under a commercial tenant
435 policy if the insured premises is 10,000 square feet or less.
436 (c) This subsection shall not apply to claims under an
437 insurance policy covering nonresidential commercial structures
438 or contents in more than one state.
439 (8) This section also applies to surplus lines insurers
440 and surplus lines insurance authorized under ss. 626.913-
441 626.937.

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442 Section 19. Section 627.7031, Florida Statutes, is created
443 to read:
444 627.7031 Foreign venue clauses prohibited.-After July 1,
445 2020, a personal residential property insurance policy sold in
446 this state, insuring real property located in this state, may
447 not require an insured to pursue dispute resolution through
448 litigation, arbitration, or mediation outside this state. This
449 section applies to surplus lines insurers and surplus lines
450 insurance authorized under ss. 626.913-626.937.
451 Section 20. Effective January 1, 2021, section 627.7142,
452 Florida Statutes, is amended to read:
453 627.7142 Homeowner Claims Bill of Rights.-An insurer
454 issuing a personal lines residential property insurance policy
455 in this state must provide a Homeowner Claims Bill of Rights to
456 a policyholder within 14 days after receiving an initial
457 communication with respect to a claim, unless the claim follows
458 an event that is the subject of a declaration of a state of
459 emergency by the Governor. The purpose of the bill of rights is
4 60 to summarize, in simple, nontechnical terms, existing Florida
4 61 law regarding the rights of a personal lines residential
4 62 property insurance policyholder who files a claim of loss. The
463 Homeowner Claims Bill of Rights is specific to the claims
4 64 process and does not represent all of a policyholder's rights
465 under Florida law regarding the insurance policy. The Homeowner
466 Claims Bill of Rights does not create a civil cause of action by

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467 any individual policyholder or class of policyholders against an
468 insurer or insurers. The failure of an insurer to properly
469 deliver the Homeowner Claims Bill of Rights is subject to
470 administrative enforcement by the office but is not admissible
471 as evidence in a civil action against an insurer. The Homeowner
472 Claims Bill of Rights does not enlarge, modify, or contravene
473 statutory requirements, including, but not limited to, ss.
474 626. 854, 626. 9541, 627. 70131, 627. 7015, and 627. 7074, and does
475 not prohibit an insurer from exercising its right to repair
476 damaged property in compliance with the terms of an applicable
477 policy or ss. 627. 7011 (5) (e) and 627. 702 (7). The Homeowner
478 Claims Bill of Rights must state:
479
480 HOMEOWNER CLAIMS
481 BILL OF RIGHTS
482 This Bill of Rights is specific to the claims process
483 and does not represent all of your rights under
484 Florida law regarding your policy. There are also
485 exceptions to the stated timelines when conditions are
486 beyond your insurance company's control. This document
487 does not create a civil cause of action by an
488 individual policyholder, or a class of policyholders,
489 against an insurer or insurers and does not prohibit
490 an insurer from exercising its right to repair damaged
491 property in compliance with the terms of an applicable

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492 policy.
493
4 94 YOU HAVE THE RIGHT TO:
495 1. Receive from your insurance company an
496 acknowledgment of your reported claim within 14
4 97 calendar days after the time you communicated the
498 claim.
499 2. Upon written request, receive from your insurance
500 company within 30 days after you have submitted a
501 complete proof-of-loss statement to your insurance
502 company, confirmation that your claim is covered in
503 full, partially covered, or denied, or receive a
504 written statement that your claim is being
505 investigated.
506 3. Within 7 calendar days, receive notification from
507 your insurance company if there has been a change in
508 the company adjuster who is assigned to your claim.
509 The notification must include the assigned adjuster's
510 contact information.
511 4. Within 90 calendar days, subject to any dual
512 interest noted in the policy, receive full settlement
513 payment for your claim or payment of the undisputed
514 portion of your claim, or your insurance company's
515 denial of your claim.
516 5. Receive payment of interest, as provided ins.
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517 627.7031, from your insurance company, which begins
518 accruing from the date your claim is filed if your
519 insurance company does not pay full settlement of your
520 claim or the undisputed portion of your claim or does
521 not deny your claim within 90 calendar days after your
522 claim is filed. The interest, if applicable, must be
523 paid when your claim or undisputed portion of your
524 claim is paid.
525 6.4---.-- Free mediation of your disputed claim by the
526 Florida Department of Financial Services, Division of
527 Consumer Services, under most circumstances and
528 subject to certain restrictions.
529 7 . .§-. Neutral evaluation of your disputed claim, if
530 your claim is for damage caused by a sinkhole and is
531 covered by your policy.
532 8.-6--. Contact the Florida Department of Financial
533 Services, Division of Consumer Services' toll-free
534 helpline for assistance with any insurance claim or
535 questions pertaining to the handling of your claim.
536 You can reach the Helpline by phone at ... (toll-free
537 phone number) ... , or you can seek assistance online at
538 the Florida Department of Financial Services, Division
539 of Consumer Services' website at ... (website
540 address) ....
541

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542 YOU ARE ADVISED TO:
543 1. Contact your insurance company before entering
544 into any contract for repairs to confirm any managed
545 repair policy provisions or optional preferred
546 vendors.
547 2. Make and document emergency repairs that are
548 necessary to prevent further damage. Keep the damaged
549 property, if feasible, keep all receipts, and take
550 photographs or video of damage before and after any
551 repairs.
552 3. Carefully read any contract that requires you to
553 pay out-of-pocket expenses or a fee that is based on a
554 percentage of the insurance proceeds that you will
555 receive for repairing or replacing your property.
556 4. Confirm that the contractor you choose is licensed
557 to do business in Florida. You can verify a
558 contractor's license and check to see if there are any
559 complaints against him or her by calling the Florida
560 Department of Business and Professional Regulation.
561 You should also ask the contractor for references from
562 previous work.
563 5. Require all contractors to provide proof of
564 insurance before beginning repairs.
565 6. Take precautions if the damage requires you to
566 leave your home, including securing your property and
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567 turning off your gas, water, and electricity, and
568 contacting your insurance company and provide a phone
569 number where you can be reached.
570 Section 21. Paragraph (a) of subsection (1) and subsection
571 (6) of section 631.57, Florida Statutes, are amended to read:
572 631.57 Powers and duties of the association.-
573 (1) The association shall:
574 (a)l. Be obligated to the extent of the covered claims
575 existing:
57 6 a. Prior to adjudication of insolvency and arising within
577 30 days after the determination of insolvency;
578 b. Before the policy expiration date if less than 30 days
579 after the determination; or
580 c. Before the insured replaces the policy or causes its
581 cancellation, if she or he does so within 30 days of the
582 determination.
583 2. The obligation under subparagraph 1. includes e-&l-y the
584 amount of each covered claim which is in excess of $100 and is
585 less than $300,000, except that policies providing coverage for
586 homeowner's insurance shall provide for an additional $200,000
587 for the portion of a covered claim which relates only to the
588 damage to the structure and contents.
589 3.a. Notwithstanding subparagraph 2., the obligation under
590 subparagraph 1. for policies covering condominium associations
591 or homeowners' associations, which associations have a

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592 responsibility to provide insurance coverage on residential
593 units within the association, shall include that amount of each
594 covered property insurance claim which is less than $100,000
595 multiplied by the number of condominium units or other
596 residential units; however, as to homeowners' associations, this
597 sub-subparagraph applies only to claims for damage or loss to
598 residential units and structures attached to residential units.
599 b. Notwithstanding sub-subparagraph a., the association
600 has no obligation to pay covered claims that are to be paid from
601 the proceeds of bonds issued under s. 631.695. However, the
602 association shall assign and pledge the first available moneys
603 from all or part of the assessments to be made under paragraph
604 (3) (a) to or on behalf of the issuer of such bonds for the
605 benefit of the holders of such bonds. The association shall
606 administer any such covered claims and present valid covered
607 claims for payment in accordance with the provisions of the
608 assistance program in connection with which such bonds have been
609 issued.
610 4. In no event shall the association be obligated to a
611 policyholder or claimant in an amount in excess of the
612 obligation of the insolvent insurer under the policy from which
613 the claim arises.
614 (6) The association may extend the time limits specified
615 in paragraph (1) (a) by up to an additional 60 days or waive the
616 applicability of the $100 deductible specified in paragraph

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617 (1) (a) if the board determines that either or both such actions
618 are necessary to facilitate the bulk assumption of obligations.
619 Section 22. Section 648.30, Florida Statutes, is amended
620 to read:
621 648.30 Licensure and appointment required; prohibited
622 acts; penalties.-
623 (1) A person may not act in the capacity of a bail bond
624 agent or temporary bail bond agent or perform any of the
625 functions, duties, or powers prescribed for bail bond agents or
626 temporary bail bond agents under this chapter unless that person
627 is qualified, licensed, and appointed as provided in this
628 chapter.
629 (2) A person may not represent himself or herself to be a
630 bail enforcement agent, bounty hunter, or other similar title in
631 this state.
632 (3) A person, other than a certified law enforcement
633 officer, may not apprehend, detain, or arrest a principal on a
634 bond, wherever issued, unless that person is qualified,
635 licensed, and appointed as provided in this chapter or licensed
636 as a bail bond agent or bail bond enforcement agent, or holds an
637 equivalent license by the state where the bond was written.
638 (4) Any person who violates this section commits a felony
639 of the third degree, punishable as provided ins. 775.082, s.
640 775.083, or s. 775.084.
641 (5) Any licensee under this chapter who knowingly aids or

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642 abets an unlicensed person in violating this section commits a
643 felony of the third degree, punishable as provided ins.
644 775.082, s. 775.083, or s. 775.084.
645 Section 23. Paragraphs (b) and (c) of subsection (4) and
646 subsections (1) and (10) of section 717.124, Florida Statutes,
647 are amended to read:
648 717.124 Unclaimed property claims.-
649 (1) Any person, excluding another state, claiming an
650 interest in any property paid or delivered to the department
651 under this chapter may file with the department a claim on a
652 form prescribed by the department and verified by the claimant
653 or the claimant's representative. The claimant's representative
654 must be an attorney licensed to practice law in this state, a
655 licensed Florida-certified public accountant, or a private
656 investigator licensed under chapter 493. The claimant's
657 representative must be registered with the department under this
658 chapter. The claimant, or the claimant's representative, shall
659 provide the department with a legible copy of a valid driver
660 license of the claimant at the time the original claim form is
661 filed. If the claimant has not been issued a valid driver
662 license at the time the original claim form is filed, the
663 department shall be provided with a legible copy of a
664 photographic identification of the claimant issued by the United
665 States, a state or territory of the United States, a foreign
666 nation, or a political subdivision or agency thereof or other
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667 evidence deemed acceptable by the department by rule. In lieu of
668 photographic identification, a notarized sworn statement by the
669 claimant may be provided which affirms the claimant's identity
670 and states the claimant's full name and address. The claimant
671 must produce to the notary photographic identification of the
672 claimant issued by the United States, a state or territory of
673 the United States, a foreign nation, or a political subdivision
674 or agency thereof or other evidence deemed acceptable by the
675 department by rule. The notary shall indicate the notary's full
676 address on the notarized sworn statement. Any claim filed
677 without the required identification or the sworn statement with
678 the original claim form and the original Florida Uniform
679 Unclaimed Property Recovery Agreement or Florida Uniform
680 Property Purchase Agreement power of attorney or purchase
681 agreement, if applicable, is void.
682 (a) Within 90 days after receipt of a claim, the
683 department may return any claim that provides for the receipt of
684 fees and costs greater than that permitted under this chapter or
685 that contains any apparent errors or omissions. The department
686 may also request that the claimant or the claimant's
687 representative provide additional information. The department
688 shall retain a copy or electronic image of the claim.
689 (b) A claimant or the claimant's representative shall be
690 deemed to have withdrawn a claim if no response to the
691 department's request for additional information is received by
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692 the department within 60 days after the notification of any
693 apparent errors or omissions.
694 (c) Within 90 days after receipt of the claim, or the
695 response of the claimant or the claimant's representative to the
696 department's request for additional information, whichever is
697 later, the department shall determine each claim. Such
698 determination shall contain a notice of rights provided by ss.
699 120.569 and 120.57. The 90-day period shall be extended by 60
700 days if the department has good cause to need additional time or
701 if the unclaimed property:
702 1. Is owned by a person who has been a debtor in
703 bankruptcy;
704 2. Was reported with an address outside of the United
705 States;
706 3. Is being claimed by a person outside of the United
707 States; or
708 4. Contains documents filed in support of the claim that
709 are not in the English language and have not been accompanied by
710 an English language translation.
711 (d) The department shall deny any claim under which the
712 claimant's representative has refused to authorize the
713 department to reduce the fees and costs to the maximum permitted
714 under this chapter.
715 ( 4)

716 (b) If an owner authorizes an attorney licensed to
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717 practice law in this state, Florida-certified public accountant,
718 or private investigator licensed under chapter 493, and
719 registered with the department under this chapter, to claim the
720 unclaimed property on the owner's behalf, the department is
721 authorized to make distribution of the property or money in
722 accordance with the Florida Uniform Unclaimed Property Recovery
723 Agreement or Florida Uniform Property Purchase Agreement under
724 s. 717.135 such power of attorney. The original Florida Uniform
725 Unclaimed Property Recovery Agreement or Florida Uniform
726 Property Purchase Agreement power of attorney must be executed
727 by the claimant or seller owner and must be filed with the
728 department.
729 (c)l. Payments of approved claims for unclaimed cash
730 accounts shall be made to the owner after deducting any fees and
731 costs authorized pursuant to a Florida Uniform Unclaimed
732 Property Recovery Agreement written power of attorney. The
733 contents of a safe-deposit box shall be delivered directly to
734 the claimant notwithstanding any power of attorney or agreement
735 to the contrary.
736 2. Payments of fees and costs authorized pursuant to a
737 Florida Uniform Unclaimed Property Recovery Agreement written
738 power of attorney for approved claims must shall be made or
739 issued to the law firm of the designated attorney licensed to
740 practice law in this state, the public accountancy firm of the
741 licensed Florida-certified public accountant, or the designated

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742 employing private investigative agency licensed by this state.
743 Such payments shall be made by electronic funds transfer and may
744 be made on such periodic schedule as the department may define
745 by rule, provided the payment intervals do not exceed 31 days.
746 Payment made to an attorney licensed in this state, a Florida-
747 certified public accountant, or a private investigator licensed
748 under chapter 493, operating individually or as a sole
749 practitioner, shall be to the attorney, certified public
750 accountant, or private investigator.
751 (10) Notwithstanding any other provision of this chapter,
752 the department may develop a process by which a registered
753 claimant's representative or a buyer of unclaimed property may
754 electronically submit to the department an electronic image of a
755 completed claim and claims-related documents pursuant to this
756 chapter, including a Florida Uniform Unclaimed Property Recovery
757 Agreement or Florida Uniform Property Purchase Agreement a
758 limited power of attorney or purchase agreement that has been
759 manually signed and dated by a claimant or seller pursuant to s.
760 717.135 ors. 717.1351, after the claimant's representative or
761 the buyer of unclaimed property receives the original documents
762 provided by the claimant or the seller for any claim. Each claim
763 filed by a registered claimant's representative or a buyer of
764 unclaimed property must include a statement by the claimant's
765 representative or the buyer of unclaimed property attesting that
766 all documents are true copies of the original documents and that

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767 all original documents are physically in the possession of the
768 claimant's representative or the buyer of unclaimed property.
769 All original documents must be kept in the original form, by
770 claim number, under the secure control of the claimant's
771 representative or the buyer of unclaimed property and must be
772 available for inspection by the department in accordance withs.
773 717.1315. The department may adopt rules to implement this
774 subsection.
775 Section 24. Subsection (2) of section 717.12404, Florida
776 Statutes, is amended to read:
777 717.12404 Claims on behalf of a business entity or trust.-
778 (2) Claims on behalf of a dissolved corporation, a
779 business entity other than an active corporation, or a trust
780 must include a legible copy of a valid driver license of the
781 person acting on behalf of the dissolved corporation, business
782 entity other than an active corporation, or trust. If the person
783 has not been issued a valid driver license, the department shall
784 be provided with a legible copy of a photographic identification
785 of the person issued by the United States, a foreign nation, or
786 a political subdivision or agency thereof. In lieu of
787 photographic identification, a notarized sworn statement by the
788 person may be provided which affirms the person's identity and
789 states the person's full name and address. The person must
790 produce his or her photographic identification issued by the
791 United States, a state or territory of the United States, a

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Amendment No. 1

792 foreign nation, or a political subdivision or agency thereof or
793 other evidence deemed acceptable by the department by rule. The
794 notary shall indicate the notary's full address on the notarized
795 sworn statement. Any claim filed without the required
796 identification or the sworn statement with the original claim
7 97 form and the original Florida Uniform Unclaimed Property
798 Recovery Agreement or Florida Uniform Property Purchase
799 Agreement power of attorney, if applicable, is void.
800 Section 25. Subsection (1) of section 717.1315, Florida
801 Statutes, is amended to read:
802 717.1315 Retention of records by claimant's
803 representatives and buyers of unclaimed property.-
804 (1) Every claimant's representative and buyer of unclaimed
805 property shall keep and use in his or her business such books,
806 accounts, and records of the business conducted under this
807 chapter to enable the department to determine whether such
808 person is complying with this chapter and the rules adopted by
809 the department under this chapter. Every claimant's
810 representative and buyer of unclaimed property shall preserve
811 such books, accounts, and records, including every Florida
812 Uniform Unclaimed Property Recovery Agreement or Florida Uniform
813 Property Purchase Agreement power of attorney or agreement
814 between the owner and such claimant's representative or buyer,
815 for at least 3 years after the date of the initial power of
816 attorney or agreement.

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Amendment No. 1

817 Section 26. Paragraph (j) of subsection (1) of section
818 717.1322, Florida Statutes, is amended to read:
819 717.1322 Administrative and civil enforcement.-
820 (1) The following acts are violations of this chapter and
821 constitute grounds for an administrative enforcement action by
822 the department in accordance with the requirements of chapter
823 120 and for civil enforcement by the department in a court of
824 competent jurisdiction:
825 (j) Requesting or receiving compensation for notifying a
826 person of his or her unclaimed property or assisting another
827 person in filing a claim for unclaimed property, unless the
828 person is an attorney licensed to practice law in this state, a
829 Florida-certified public accountant, or a private investigator
830 licensed under chapter 493, or entering into, or making a
831 solicitation to enter into, an agreement a power of attorney to
832 file a claim for unclaimed property owned by another, or a
833 contract or agreement to purchase unclaimed property, unless
834 such person is registered with the department pursuant to this
835 chapter and an attorney licensed to practice law in this state
836 in the regular practice of her or his profession, a Florida-
837 certified public accountant who is acting within the scope of
838 the practice of public accounting as defined in chapter 473, or
839 a private investigator licensed under chapter 493. This
840 subsection does not apply to a person who has been granted a
841 durable power of attorney to convey and receive all of the real
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842 and personal property of the owner, is the court-appointed
843 guardian of the owner, has been employed as an attorney or
844 qualified representative to contest the department's denial of a
845 claim, or has been employed as an attorney to probate the estate
846 of the owner or an heir or legatee of the owner.
847 Section 27. Section 717.135, Florida Statutes, is amended
848 to read:
849 (Substantial rewording of section. See
850 s. 717.135, F.S., for present text.)
851 717.135 Recovery agreements and purchase agreements for
852 claims filed by claimant's representative; fees and costs.-
853 (1) In order to protect the interests of owners of
854 unclaimed property, the department shall adopt by rule a form
855 entitled "Florida Uniform Unclaimed Property Recovery Agreement"
856 and a form entitled "Florida Uniform Property Purchase
857 Agreement."
858 (2) The Florida Uniform Unclaimed Property Recovery
859 Agreement form and the Florida Uniform Property Purchase
8 60 Agreement form must include and disclose:
861 (a) The total dollar amount of unclaimed property accounts
8 62 claimed or sold.
8 63 (b) Either the total percentage of all authorized fees and
8 64 costs to be paid to the claimant's representative or the
865 percentage of the value of the property to be paid as net gain
866 to the purchasing registered claimant's representative.
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8 67 (c) Either the total dollar amount to be deducted and
868 received from the claimant as fees and costs by the claimant's
869 representative or the total net dollar amount to be received by
870 the purchasing registered claimant's representative.
871 (d) The net dollar amount to be received by the claimant
872 or seller.
873 (e) For each account claimed, the unclaimed property
874 account number and name of the apparent owner, as listed on the
875 department's database.
876 (f) For the Florida Uniform Property Purchase Agreement, a
877 statement that the purchase price will be remitted to the seller
878 within 30 days after the execution of the form by the seller.
879 (g) The name, address, e-mail address, phone number, and
880 license number of the registered claimant's representative.
881 (h) The manual signature of the claimant or seller and the
882 date signed.
883 (i) The social security number or taxpayer identification
884 number of the claimant or seller, if available. A number is
885 available if one has been issued to the claimant or seller.
886 (j) A limit of total fees and costs, or the total discount
887 amount in the case of a purchase agreement, to no more than 20
888 percent of the claimed amount.
889 (3) For a Florida Uniform Property Purchase Agreement
890 form, proof that the seller has received payment must be filed
891 with the department along with the claim. If proof of payment is
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Amendment No. 1

892 not provided, the claim is void.
893 (4) A registered claimant's representative shall use the
894 Florida Uniform Unclaimed Property Recovery Agreement form or
895 the Florida Uniform Property Purchase Agreement form as the
896 exclusive means of engaging with a claimant or seller to file a
897 claim with the department.
898 (5) Fees and costs may be owed or paid to a registered
899 claimant's representative only pursuant to the forms authorized
900 by this section and upon approval of the claim filed thereby.
901 (6) A claimant's representative may not use or distribute
902 any other agreement of any type with respect to the claimant or
903 seller which relates to unclaimed property accounts held by the
904 department or the Chief Financial Officer other than the
905 agreements authorized by this section. Any agreement that is not
906 authorized by this section is null and void.
907 (7) The forms under subsection (1):
908 (a) May not contain language that makes the agreement
909 irrevocable; and
910 (b) May not contain language that creates an assignment of
911 any unclaimed property held by the department.
912 (8) This section does not supersede the conflicting claims
913 provisions of s. 717.1241.
914 (9) At the time a claim is approved, the department may
915 pay any additional account that is owned by the claimant but has
916 not been claimed at the time of approval, provided that no
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Amendment No. 1

917 subsequent claim has been filed and is pending for the claimant
918 at the time of approval.
919 Section 28. Section 717.1351, Florida Statutes, is
920 repealed.
921 Section 29. Except as otherwise provided, this act shall
922 take effect upon becoming law.
923
924
925 T I T L E A ME N D ME N T
926 Remove everything before the enacting clause and insert:
927 A bill to be entitled
928 An act relating to consumer protection; amending s. 501.0051,
929 F.S.; prohibiting consumer reporting agencies from charging to
930 reissue or provide a new unique personal identifier to a
931 consumer for the removal of a security freeze; amending s.
932 624.307, F.S.; revising a requirement for entities licensed or
933 authorized by the Department of Financial Services or the Office
934 of Insurance Regulation to respond to the department's Division
935 of Consumer Services regarding consumer complaints; revising
936 administrative penalties the division may impose for failure to
937 comply; amending s. 626.112, F.S.; prohibiting unlicensed
938 activity by an adjusting firm; providing an exemption; providing
939 an exemption from licensure for branch firms that meet certain
940 criteria; providing an administrative penalty for failing to
941 apply for certain licensure; providing a criminal penalty for
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Amendment No. 1

942 aiding or abetting unlicensed activity; deleting an obsolete
943 provision; amending s. 626.602, F.S.; authorizing the department
944 to disapprove the use of insurance agency names containing the
945 words "Medicare" or "Medicaid"; providing an exception for
946 certain insurance agencies; amending s. 626.621, F.S.; adding
947 grounds on which the department may take certain actions against
948 a license, appointment, or application of certain insurance
94 9 representatives; amending ss. 626.782 and 626.783, F.S.;
950 revising the definitions of the terms "industrial class insurer"
951 and "ordinary-combination class insurer," respectively, to
952 conform to changes made by the act; repealing s. 626.796, F.S.,
953 relating to the representation of multiple insurers in the same
954 industrial debit territory; amending s. 626.8443, F.S.;
955 increasing the maximum period of suspension of a title insurance
956 agent's or agency's license; amending s. 626.854, F.S.; revising
957 the timeframes in which an insured or claimant may cancel a
958 public adjuster's contract to adjust a claim without penalty or
959 obligation; amending s. 626.916, F.S.; revising the classes of
960 insurance subject to a disclosure requirement before being
961 eligible for export under the Surplus Lines Law; amending s.
962 626.9541, F.S.; adding certain acts or practices to the
963 definition of sliding; amending s. 626.9741, F.S.; requiring an
964 insurer to include certain additional information when providing
965 an applicant or insured with certain credit report or score
966 information; amending ss. 626.9957 and 627.062, F.S.; conforming
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967 cross-references; amending s. 627.421, F.S.; requiring personal
968 lines residential property insurers to annually deliver a
969 certain notification to certain policyholders within a specified
970 timeframe; amending s. 627.502, F.S.; prohibiting life insurers
971 from writing new policies of industrial life insurance beginning
972 on a certain date; amending s. 627.70131, F.S.; providing that
973 communication made to or by an insurer's representative, rather
974 than to or by an insurer's agent, constitutes communication to
975 or by the insurer; requiring an insurer-assigned licensed
97 6 adjuster to provide the policyholder with certain information in
977 certain investigations; specifying requirements for insurers in
978 notifying policyholders for certain changes in assigned
97 9 adjusters; requiring an insurer to establish a process to
980 provide the agent of record access to claim status information
981 for a certain purpose; defining the term "agent of record";
982 requiring insurers to include specified notices when providing
983 preliminary or partial damage estimates or claim payments;
984 specifying the timeframe in which an insurer must pay or deny
985 property insurance claims under certain circumstances; providing
986 applicability; conforming provisions to changes made by the act;
987 creating s. 627.7031, F.S.; prohibiting foreign venue clauses in
988 property insurance policies; providing applicability; amending
989 s. 627.7142, F.S.; revising information contained in the
990 Homeowner Claims Bill of Rights; conforming provisions to
991 changes made by the act; amending s. 631.57, F.S.; deleting a

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992 deductible on the Florida Insurance Guaranty Association,
993 Incorporated's obligation as to certain covered claims; amending
994 s. 648.30, F.S.; prohibiting the aiding or abetting of
995 unlicensed activity of a bail bond agent or temporary bail bond
996 agent; amending ss. 717.124, 717.12404, 717.1315, and 717.1322,
997 F.S.; conforming provisions to changes made by the act; amending
998 s. 717.135, F.S.; replacing provisions relating to powers of
999 attorney to recover unclaimed property with provisions relating
1000 to uniform forms for unclaimed property recovery agreements and
1001 purchase agreements; requiring the department to adopt the
1002 uniform forms by rule; specifying required information and
1003 disclosures in the forms; requiring that, for the purchase
1004 agreement form, proof the seller received payment be filed with
1005 the department along with the claim; requiring registered
1006 claimant's representatives to use the forms as the exclusive
1007 means of engaging with a claimant or seller to file claims and
1008 prohibiting them from using or distributing other agreements;
1009 specifying a limitation on fees and costs owed or paid;
1010 prohibiting certain language in the forms; authorizing the
1011 department to pay additional accounts owned by the claimant
1012 under certain circumstances; providing construction; repealing
1013 s. 717.1351, F.S., relating to the acquisition of unclaimed
1014 property; providing effective dates.
1015

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1211 Reinsurance
SPONSOR(S): Jones
TIED BILLS: IDEN./SIM. BILLS: SB 1376

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee Fortenber

2) Government Operations & Technology
Appropriations Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
Reinsurance is a transaction between a ceding insurer (primary insurer) and an assuming insurer (reinsurer)
whereby the assuming insurer agrees to cover all or part of the ceding insurer's losses or loss adjustment
expenses in exchange for a premium. Because of the impact of hurricanes in Florida, the catastrophe
protection provided by reinsurance is a significant reason for ceding insurers' purchase of reinsurance within
the state. Most reinsurance that United States' ceding insurers acquire is placed with non-United States
assuming insurers. Because state insurance regulators do not regulate alien insurers or reinsurers, the ceding
of reinsurance by United States insurers to such alien companies provides concern and challenges for state
insurance regulators. Depending on their status within Florida, assuming insurers may be authorized or
unauthorized. When an assuming insurer is an unauthorized reinsurer within Florida, the Florida Office of
Insurance Regulation (OIR) does not have direct regulatory authority over that assuming insurer. In order to
exercise some indirect regulatory authority over these assuming insurers, OIR limits the ceding insurer's credit
for reinsurance unless the assuming insurer posts acceptable collateral or security in the amount of the
assuming insurer's obligations under the reinsurance agreement. Credit for reinsurance means that a ceding
insurer is permitted under statutory accounting rules to recognize the reinsurance as an asset or as a
deduction from liability for the amount of the ceded liability or risk transferred.

The bill amends the reinsurance law to add criteria that an assuming insurer must meet in order for a ceding
insurer to be given credit for reinsurance ceded to that assuming insurer. These criteria include having its
principal office or its domicile and being licensed in, a reciprocal jurisdiction, maintain minimum capital and
surplus, meeting minimum solvency or capital ratios, providing prompt notice to OIR if it falls below minimum
requirements or has legal action taken against it, meeting certain other written requirements, responding to
OIR's document requests, and maintaining a practice of prompt payment of claims. The bill requires that an
assuming insurer's supervisory authority confirm to OIR on an annual basis that the assuming insurer has
complied with the capital and surplus requirements and solvency or capital ratio requirements set forth in the
bill. It also establishes that a ceding reinsurer may only take credit for reinsurance agreements entered into,
amended, or renewed on or after the date at which the assuming insurer has met the mandatory criteria set
forth within the bill. Credit may only be taken for losses incurred and reserves reported on or after the later of
the date upon which the assuming insurer has met these requirements or has entered into a new reinsurance
agreement, amendment, or renewal with the ceding insurer. Additionally, OIR may suspend or revoke the
assuming insurer's eligibility under the applicable statute if the assuming insurer does not continue to meet the
mandatory criteria under the applicable reinsurance statute.
The bill requires the passage of additional rules using existing rulemaking authority. The bill has no impact on
state or local government revenues or expenditures. It has no known direct economic impact on the private
sector.
The bill has an effective date of January 1, 2021.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1211.18S.DOCX
DATE: 1/25/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Reinsurance

Reinsurance is a transaction between a ceding insurer1 and an assuming insurer whereby the
assuming insurer agrees to cover all or part of the ceding insurer's losses or loss adjustment expenses
in exchange for a premium. The purposes of reinsurance include increasing capacity, stabilizing
underwriting results, financing, providing catastrophe protection, withdrawing from a line or class of
business, spreading risk, and obtaining expertise. 2 Because of the impact of hurricanes in Florida, the
catastrophe protection provided by reinsurance is a significant reason for ceding insurers' purchase of
reinsurance within the state. While the purchase of reinsurance creates a contractual relationship
between the ceding insurer and the assuming insurer, it does not modify the relationship between the
ceding insurer and its policyholders. 3 Therefore, the ceding insurer remains obligated to pay
policyholder claims and only the ceding insurer may recover from the assuming insurer unless an
applicable reinsurance contract specifies otherwise. 4

Most reinsurance that United States' ceding insurers acquire is placed with non-United States
assuming insurers. In fact, in 2018, offshore and alien-owned 5 assuming insurers assumed 88.9
percent of insurance premiums ceded by United States' insurers. 6 The availability of alien reinsurance
contributes to global diversification of risk, provides claims relief to United States insurers, and
mitigates the financial impact of catastrophes. 7 Even though reinsurance provides benefits, because
the United States state insurance regulators do not regulate alien insurers or reinsurers, the ceding of
reinsurance by United States insurers to such alien companies provides concern and challenges for
state insurance regulators.

Regulation of Reinsurance

Direct Regulation of Authorized Reinsurers and Credit for Reinsurance

Regulations and requirements for reinsurance transactions in Florida are provided ins. 624.610, F.S.,
and ch. 690-144, F.A.C. The Florida Office of Insurance Regulation (OIR} 8 , directly regulates
authorized reinsurers 9 who are domiciled and licensed in Florida and reinsurers licensed in Florida who
are domiciled in other states. 10 Under current law, a Florida insurer cedes reinsurance to an assuming

1 National Association ofinsurance Commissioners, https://content.naic.org/consumer glossary.htm#R (last visited January 24,

2020). A ceding insurer is an insurer that transfers risk assumed from policyholders to an assuming insurer. The ceding insurer and
assuming insurer may also be referred to as the primary insurer and the reinsurer, respectively. Reinsurance is also colloquially
referred to as "insurance for insurers" because of the risk transfer from one insurer to another.
2
National Association of Insurance Commissioners, https://content.naic.org/cipr topics/topic reinsurance.htm (last visited January
24, 2020).
3
See !RMI, In Defense of Reinsurance, https://www.irmi.com/articles/expert-commentary/in-defense-of-reinsurance (last visited
January 24, 2020).
4
Id
5
In the insurance context, an alien company is one formed under laws other than those of a United States jurisdiction. Sees. 624. 06,
F.S.
6
Reinsurance Associaton of America, Offshore Reinsurance in the US Market: 2018 Data,
https://www.reinsurance.org/RAA/lndustry Data Center/Offshore/ Report 2018 Data.html (last visited January 24, 2020).
7 International Association ofinsurance Supervisors, Reinsurance and Financial Stability,

https://www.iaisweb.org.file/34046/reinsurance-and-financial-stability (last visited January 24, 2020).
8
OIR is also referred to as the office in various statutes.
9
Authorized reinsurers are licensed or accredited to provide reinsurance in a particular state. Sees. 624.610, F.S.
10
S. 624.610, F.S.
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insurer who is authorized to transact insurance or reinsurance in Florida, and meets other specified
requirements, the ceding insurer is permitted to take credit for that reinsurance on its books. 11

Indirect Regulation of Unauthorized Reinsurers and Credit for Reinsurance

When an assuming insurer is not an authorized reinsurer within Florida, OIR does not have direct
regulatory authority over that assuming insurer. Pursuant to s. 624.610, F.S., and in order to exercise
some indirect regulatory authority over these assuming insurers, OIR limits the ceding insurer's credit
for reinsurance unless the assuming insurer posts acceptable collateral or security in the amount of the
assuming insurer's obligations under the reinsurance agreement. 12

National Association of Insurance Commissioners

National Association of Insurance Commissioners Authority, Accreditation, and Model Laws

The National Association of Insurance Commissioners (NAIC) is a "standard-setting and regulatory
support organization created and governed by the chief insurance regulators from the 50 states, the
District of Columbia, and five U.S. territories." 13 While the NAIC does not have actual regulatory
authority, it allows state regulators to establish standards and best practices, to engage in peer review,
and to coordinate regulatory oversight.

The NAIC also maintains an accreditation program that considers key financial authorities and
responsibilities of state insurance regulators that warrant national consistency among jurisdictions in
order to improve oversight of multi-state insurers and reduce the cost of inefficiencies that is passed on
to policyholders. 14 As of November 2019, all 50 states, the District of Columbia and Puerto Rico were
all accredited by the NAIC. 15

The NAIC develops model laws and regulations to promote uniformity among jurisdictions and to
balance the needs of insurers operating in multiple jurisdiction with those of the applicable regulatory
frameworks. 16 The model laws are considered best practices for insurance regulation and the
accreditation program requires compliance with certain model laws, including those that are solvency
related. 17

Credit for Reinsurance Model Law and Regulation and the Covered Agreement

Among the NAIC model laws and regulations that have become part of the accreditation standards are
the Credit for Reinsurance Model Law #785 and Credit for Reinsurance Model Regulation #786,
amendments to which are designed to modernize reinsurance regulation in the United States. 18

11
Credit for reinsurance means that a ceding insurer is permitted under statutory accounting rules to recognize the reinsurance as an
asset or as a deduction from liability for the amount of the ceded liability or risk transferred. IRMI,
https://www.irmi.com/term/insurance-definitions/credit-for-reinsurance (last visited January 24, 2020). See also s. 624.610(3), F.S.
12
Sees. 624.610(4), F.S.
13
National Association of Insurance Commissioners, https://content.naic.org/index about.htm (last visited January 24, 2020).
14
National Association oflnsurance Commissioners, State Legislative Brie/The NAIC Accreditation Program,
https://www.naic.org/documents/cmte legislative liaison brief accreditation.pdf(last visited January 24, 2020).
ts Id
16
National Association of Insurance Commissioners, NAIC Model Laws,
https://content.naic.org/cipr topics/topic naic model laws.htm (last visited January 24, 2020).
17
National Association oflnsurance Commissioners, Accreditation, https://content.naic.org/cipr topics/topic accreditation.htm (last
visited January 24, 2020).
18
National Association oflnsurance Commissioners, Revisions to the Credit for Reinsurance Model Law,
https://www.naic.org/documents/committees e reinsurance related reinsurance model law 160108.pdf(last visited January 24,
2020).
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In 2017, the United States entered the Bilateral Agreement Between the United States of American and
the European Union on Prudential Measures Regarding Insurance and Reinsurance (Covered
Agreement). 19 In 2019, the NAIC made revisions to Model Law #785 and Model Regulation #786 in
response to the Covered Agreement. In part, the Covered Agreement commits the United States to
phasing-out collateral requirements for European Union assuming insurers by 2022. 20 The Covered
Agreement also exempts European Union assuming insurers from current United States domiciliary
requirements by creating a classification known as a reciprocal jurisdiction. 21

Effect of the Bill

The changes to Model Law #785 and Model Regulation #786 following the execution of the Covered
Agreement, necessitate that existing Florida law regarding credit for reinsurance be amended. The bill
creates a new subsection within the reinsurance statute that provides the following mandatory criteria
that an assuming insurer must meet in order for a ceding insurer to be given credit for reinsurance
ceded to that assuming insurer:
• The assuming insurer must have its principal office or its domicile, and must be licensed in,
a reciprocal jurisdiction.
• The assuming insurer must have minimum capital and surplus as calculated by the
methodology of its domiciliary jurisdiction in an amount specified by commission 22 rule.
• The assuming insurer must have a minimum solvency or capital ratio as specified by the
commission.
• The assuming insurer must agree to provide prompt written notice to OIR if it falls below the
minimum requirements specified in the bill or if any regulatory action is taken against it for
serious noncompliance with applicable law.
• The assuming insurer must consent in writing to:
o submit to the jurisdiction of Florida courts;
o designate the Florida Chief Financial Officer as its agent for service or process or an
attorney to accept lawful process;
o pay all final judgments declared enforceable in the jurisdiction where the judgments
were obtained;
o include a provision in each reinsurance agreement that, where necessary, the
assuming insurer will provide security in the amount equal to 100 percent of the
assuming insurer's liabilities attributable to reinsurance ceded pursuant to the
agreement; and
o confirm that the assuming insurer is not presently participating in any solvent
scheme of arrangement that involves Florida's ceding insurers, and should the

19 U.S. Department of the Treasury, US. and EU Covered Agreement, https://home.treasury.gov/policy-issues/financial-markets-

financial-institutions-and-fiscal-service/federal-insurance-office/us-and-eu-covered-agreement (last visited January 25, 2020).
Covered agreements are authorized under 31 U.S.C. §§ 313-314, and are written bilateral or multilateral agreements regarding
insurance or reinsurance entered into between the United States and one or more foreign authorities to provide protections for
insurance and reinsurance consumers similar to those provided by state insurance regulators within United States jurisdictions.
20
U.S. Department of the Treasury, Statement of the United States on the Covered Agreement with the European Union,
https://home. treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/us-and-eu-
covered-agreement (last visited January 25, 2020).
21
Id Model Law #785 defines a reciprocal jurisdiction as:
• A non-United States jurisdiction that is subject to an in-force covered agreement with the United States, each within its legal
authority, or in the case ofa covered agreement between the United States and the European Union, is a member state of the
European Union;
• A United States jurisdiction that meets the requirements for accreditation under the NAIC financial standards and
accreditation program;
• A qualified jurisdiction, as determined by an insurance commissioner.
National Association of Insurance Commissioners, Credit for Reinsurance Model Law-785, https://www.naic.org/store/free/MDL-
785.pdf (last visited January 25, 2020).
22
The commission referred to is the Financial Services Commission. Section 20.121 (3), F.S., establishes that the Financial Services
Commission consists of the Governor, the Attorney General, the Chief Financial Officer, and the Commissioner of Agriculture.
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assuming insurer enter into such arrangement, it will notify OIR and the ceding
insurer and will provide appropriate security.
• The assuming insurer must provide documentation to OIR upon request under criteria
specified by the commission.
• The assuming insurer must maintain a practice of prompt payment of claims under
reinsurance agreements pursuant to criteria specified by the commission.

The bill requires that an assuming insurer's supervisory authority confirm to OIR on an annual basis
that the assuming insurer has complied with the capital and surplus requirements and solvency or
capital ratio requirements set forth in the bill. It also establishes that a ceding reinsurer may only take
credit for reinsurance agreements entered into, amended, or renewed on or after the date at which the
assuming insurer has met the mandatory criteria set forth within the bill. Additionally, credit may only
be taken for losses incurred and reserves reported on or after the later of the date upon which the
assuming insurer has met these requirements or has entered into a new reinsurance agreement,
amendment, or renewal with the ceding insurer.

Pursuant to the bill, if the ceding insurer is subject to rehabilitation, liquidation, or conservation, the
ceding insurer may obtain a court order requiring that the assuming insurer post security for all
outstanding ceded liabilities. If OIR determines that the assuming insurer no longer meets one or more
of the requirements under the bill, OIR may revoke or suspend the assuming reinsurer's eligibility under
624.610, F.S. While the eligibility is suspended, any reinsurance agreement issued, amended, or
renewed after the effective date of the suspension does not qualify for credit for reinsurance. If the
eligibility is revoked, credit for reinsurance may not be granted after the effective date of the revocation
for any reinsurance agreements entered into by the assuming insurer, including those entered into
before the date of the revocation.

The bill provides that the subsection created within 624.610, F.S., does not:
• preclude an assuming insurer from volunteering information to OIR;
• limit or alter the capacity of parties to a reinsurance agreement to agree on requirements for
security or other terms of the reinsurance agreement, except where otherwise prohibited, or to
renegotiate the reinsurance agreement; or
• authorize an assuming insurer to withdraw or reduce the security provided under any
reinsurance agreement, except as authorized within the agreement.

The bill makes other technical changes to s. 624.610, F.S., including the deletion of an obsolete
subsection and the replacement of the word "commissioner" with "office" in several places.

B. SECTION DIRECTORY:
Section 1. Amends s. 624.610, F.S., relating to reinsurance.

Section 2. Provides an effective date of January 1, 2021.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

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B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None known.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:

Not applicable. This bill does not appear to affect county or municipal governments.

2. Other:

B. RULE-MAKING AUTHORITY:
Section 624.610(14), F.S., provides that the commission may adopt rules necessary to implement the
provisions of that section and "protect the interests of insureds, claimants, ceding insurers, assuming
insurers, and the public." The rules must be in "substantial compliance" with the NAIC model
regulations relating to credit for reinsurance, the NAIC Accounting Practices and Procedures Manual as
of March 2002 and subsequent consistent amendments to it; and the NAIC model regulation for Credit
for Reinsurance and Life and Health Reinsurance Agreements. 23 The bill requires the exercise of this
authority and the adoption of certain forms. Therefore, the bill will likely result in the changes to the
rules in ch. 690-144, F.A.C.

C. DRAFTING ISSUES OR OTHER COMMENTS:
Line 322: In lines 232 and 281-282, respectively, the phrases "in a form specified by the commission"
and "on a form adopted by the commission" are used. However, in line 322 the phrase "secured in a
form acceptable to the office." Because rulemaking authority regarding reinsurance is delegated to the
commission, it may be advisable to amend line 322 to conform to the remainder of the bill.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

23
S. 624.610(14), F.S.
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HB 1211 2020

1 A bill to be entitled
2 An act relating to reinsurance; amending s. 624.610,
3 F.S.; transferring specified powers and duties of the
4 Commissioner of Insurance Regulation to the Office of
5 Insurance Regulation; requiring credits for
6 reinsurance to be allowed to ceding insurers under
7 certain circumstances; providing requirements for
8 assuming insurers in order for such credits to be
9 allowed; providing the definitions of the terms
10 "reciprocal jurisdiction" and "covered agreement";
11 requiring assuming insurers to have and maintain on an
12 ongoing basis minimum capital and surplus, or its
13 equivalent, and, if applicable, minimum capital and
14 surplus equivalents and a central fund; requiring
15 assuming insurers to have and maintain on an ongoing
16 basis a minimum solvency or capital ratio; providing
17 additional requirements for assuming insurers;
18 requiring assuming insurers to provide security in a
19 specified amount; specifying circumstances under which
20 credits may be taken; authorizing ceding insurers and
21 their representatives to seek orders requiring
22 assuming insurers to post security for certain
23 liabilities; authorizing the office to revoke and
24 suspend the eligibility of assuming insurers under a
25 specified circumstance; prohibiting credits under

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26 certain circumstances; providing exceptions; deleting
27 obsolete language; providing construction; providing
28 an effective date.
29
30 Be It Enacted by the Legislature of the State of Florida:
31
32 Section 1. Subsections (4l through (14l of section
33 624.610, Florida Statutes, are renumbered as subsection (5l
34 through (15l, respectively, subsection (2l, paragraphs (cl and
35 (el of subsection (3l, present subsections (4l and (5l,
36 paragraph (bl of present subsection (lll, present subsection
37 (15l, and subsection (16l of that section are amended, and a new
38 subsection (4l is added to that section, to read:
39 624.610 Reinsurance.-
40 (2l Credit for reinsurance must be allowed a ceding
41 insurer as either an asset or a deduction from liability on
42 account of reinsurance ceded only when the reinsurer meets the
43 requirements of paragraph (3l (al, paragraph (3l (bl, e-r- paragraph
44 (3l (cl, or subsection (4l. Credit must be allowed under
45 paragraph (3l (al or paragraph (3l (bl only for cessions of those
46 kinds or lines of business that the assuming insurer is
47 licensed, authorized, or otherwise permitted to write or assume
48 in its state of domicile or, in the case of a United States
49 branch of an alien assuming insurer, in the state through which
50 it is entered and licensed or authorized to transact insurance

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51 or reinsurance.
52 ( 3)

53 (c)l. Credit must be allowed when the reinsurance is ceded
54 to an assuming insurer that maintains a trust fund in a
55 qualified United States financial institution, as defined in
56 paragraph ( 6) (b) ( 5) (b) , for the payment of the valid claims of
57 its United States ceding insurers and their assigns and
58 successors in interest. To enable the office to determine the
59 sufficiency of the trust fund, the assuming insurer shall report
60 annually to the office information substantially the same as
61 that required to be reported on the NAIC Annual Statement form
62 by authorized insurers. The assuming insurer shall submit to
63 examination of its books and records by the office and bear the
64 expense of examination.
65 2.a. Credit for reinsurance must not be granted under this
66 subsection unless the form of the trust and any amendments to
67 the trust have been approved by:
68 (I) The insurance regulator of the state in which the
69 trust is domiciled; or
70 (II) The insurance regulator of another state who,
71 pursuant to the terms of the trust instrument, has accepted
72 principal regulatory oversight of the trust.
73 b. The form of the trust and any trust amendments must be
74 filed with the insurance regulator of every state in which the
75 ceding insurer beneficiaries of the trust are domiciled. The

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76 trust instrument must provide that contested claims are valid
77 and enforceable upon the final order of any court of competent
78 jurisdiction in the United States. The trust must vest legal
79 title to its assets in its trustees for the benefit of the
80 assuming insurer's United States ceding insurers and their
81 assigns and successors in interest. The trust and the assuming
82 insurer are subject to examination as determined by the
83 insurance regulator.
84 c. The trust remains in effect for as long as the assuming
85 insurer has outstanding obligations due under the reinsurance
86 agreements subject to the trust. No later than February 28 of
87 each year, the trustee of the trust shall report to the
88 insurance regulator in writing the balance of the trust and list
89 the trust's investments at the preceding year end, and shall
90 certify that the trust will not expire before prior to the
91 following December 31.
92 3. The following requirements apply to the following
93 categories of assuming insurer:
94 a. The trust fund for a single assuming insurer consists
95 of funds in trust in an amount not less than the assuming
96 insurer's liabilities attributable to reinsurance ceded by
97 United States ceding insurers, and, in addition, the assuming
98 insurer shall maintain a trusteed surplus of not less than $20
99 million. Not less than 50 percent of the funds in the trust
100 covering the assuming insurer's liabilities attributable to

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101 reinsurance ceded by United States ceding insurers and trusteed
102 surplus shall consist of assets of a quality substantially
103 similar to that required in part II of chapter 625. Clean,
104 irrevocable, unconditional, and evergreen letters of credit,
105 issued or confirmed by a qualified United States financial
106 institution, as defined in paragraph ( 6) (a) ( 5) ( a) , effective no
107 later than December 31 of the year for which the filing is made
108 and in the possession of the trust on or before the filing date
109 of its annual statement, may be used to fund the remainder of
110 the trust and trusteed surplus.
111 b. (I) In the case of a group including incorporated and
112 individual unincorporated underwriters:
113 (A) For reinsurance ceded under reinsurance agreements
114 with an inception, amendment, or renewal date on or after August
115 1, 1995, the trust consists of a trusteed account in an amount
116 not less than the group's several liabilities attributable to
117 business ceded by United States domiciled ceding insurers to any
118 member of the group;
119 (B) For reinsurance ceded under reinsurance agreements
120 with an inception date on or before July 31, 1995, and not
121 amended or renewed after that date, notwithstanding the other
122 provisions of this section, the trust consists of a trusteed
123 account in an amount not less than the group's several insurance
124 and reinsurance liabilities attributable to business written in
125 the United States; and

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12 6 (C) In addition to these trusts, the group shall maintain
127 in trust a trusteed surplus of which $100 million must be held
128 jointly for the benefit of the United States domiciled ceding
129 insurers of any member of the group for all years of account.
130 (II) The incorporated members of the group must not be
131 engaged in any business other than underwriting of a member of
132 the group, and are subject to the same level of regulation and
133 solvency control by the group's domiciliary regulator as the
134 unincorporated members.
135 (III) Within 90 days after its financial statements are
136 due to be filed with the group's domiciliary regulator, the
137 group shall provide to the insurance regulator an annual
138 certification by the group's domiciliary regulator of the
139 solvency of each underwriter member or, if a certification is
140 unavailable, financial statements, prepared by independent
141 public accountants, of each underwriter member of the group.
142 (e) If the reinsurance is ceded to an assuming insurer not
143 meeting the requirements of paragraph (a), paragraph (b),
144 paragraph (c), or paragraph (d), the office cofl'lfflissioner may
145 allow credit, but only if the assuming insurer holds surplus in
146 excess of $250 million and has a secure financial strength
147 rating from at least two statistical rating organizations deemed
148 acceptable by the office cofl'lffliooioner as having experience and
149 expertise in rating insurers doing business in Florida,
150 including, but not limited to, Standard & Poor's, Moody's

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151 Investors Service, Fitch Ratings, A.M. Best Company, and
152 Demotech. In determining whether credit should be allowed, the
153 office eofflfflissioner shall consider the following:
154 1. The domiciliary regulatory jurisdiction of the assuming
155 insurer.
156 2. The structure and authority of the domiciliary
157 regulator with regard to solvency regulation requirements and
158 the financial surveillance of the reinsurer.
159 3. The substance of financial and operating standards for
160 reinsurers in the domiciliary jurisdiction.
161 4. The form and substance of financial reports required to
162 be filed by the reinsurers in the domiciliary jurisdiction or
163 other public financial statements filed in accordance with
164 generally accepted accounting principles.
165 5. The domiciliary regulator's willingness to cooperate
166 with United States regulators in general and the office in
167 particular.
168 6. The history of performance by reinsurers in the
169 domiciliary jurisdiction.
170 7. Any documented evidence of substantial problems with
171 the enforcement of valid United States judgments in the
172 domiciliary jurisdiction.
173 8. Any other matters deemed relevant by the office
174 cofflfflissioner. The office cofflfflissioner shall give appropriate
175 consideration to insurer group ratings that may have been

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176 issued. The office cofflffiissioner may, in lieu of granting full
177 credit under this subsection, reduce the amount required to be
178 held in trust under paragraph (c).
179 (4) Credit must be allowed when the reinsurance is ceded
180 to an assuming insurer that meets the requirements of this
181 subsection.
182 (a) The assuming insurer must have its principal office or
183 its domicile, and must be licensed, in a reciprocal
184 jurisdiction. As used in this subsection, the term "reciprocal
185 jurisdiction" means a jurisdiction that meets one of the
186 following requirements:
187 1. A non-U.S. jurisdiction that is subject to an in-force
188 covered agreement with the United States, each within its legal
189 authority, or, in the case of a covered agreement between the
190 United States and the European Union, is a member state of the
191 European Union. As used in this paragraph, the term "covered
192 agreement" is an agreement that is:
193 a. Entered into pursuant to the Dodd-Frank Wall Street
194 Reform and Consumer Protection Act, 31 U.S.C. ss. 313 and 314 in
195 effect on May 24, 2018.
196 b. Currently in effect or in a period of provisional
197 application and addresses the elimination, under specified
198 conditions, of collateral requirements as a condition for
199 entering into a reinsurance agreement with a ceding insurer
200 domiciled in this state or for allowing the ceding insurer to

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201 recognize credit for reinsurance.
202 2. A U.S. jurisdiction that meets the requirements for
203 accreditation under the NAIC Financial Regulation Standards and
204 Accreditation Program.
205 3. A qualified jurisdiction, as determined by the office,
206 that:
207 a. Is not a jurisdiction in subparagraph 1. or
208 subparagraph 2.
209 b. Meets additional requirements specified by the
210 commission that are consistent with the terms and conditions of
211 an in-force covered agreement.
212 (b) The assuming insurer must have and maintain on an
213 ongoing basis minimum capital and surplus, or its equivalent,
214 calculated according to the methodology of its domiciliary
215 jurisdiction, in an amount specified by commission rule. If the
216 assuming insurer is an association, including incorporated and
217 individual unincorporated underwriters, it must have and
218 maintain on an ongoing basis minimum capital and surplus
219 equivalents (net of liabilities), calculated according to the
220 methodology applicable in its domiciliary jurisdiction, and a
221 central fund containing a balance in amounts specified by
222 commission rule.
223 (c) The assuming insurer must have and maintain on an
224 ongoing basis a minimum solvency or capital ratio, as
225 applicable, specified by the commission. If the assuming insurer

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22 6 is an association, including incorporated and individual
227 unincorporated underwriters, it must have and maintain on an
228 ongoing basis a minimum solvency or capital ratio in the
229 jurisdiction where the assuming insurer has its head office or
230 its domicile, as applicable, and is also licensed.
231 (d) The assuming insurer must agree and provide adequate
232 assurance to the office, in a form specified by the commission,
233 that the assuming insurer:
234 1. Provides prompt written notice and explanation to the
235 office if the assuming insurer falls below the minimum
236 requirements specified in paragraph (b) or paragraph (c) or if
237 any regulatory action is taken against it for serious
238 noncompliance with applicable law.
239 2. Consents in writing to:
240 a. Submit to the jurisdiction of the courts of this state.
241 b. Designate the Chief Financial Officer under s. 48.151
242 as the agent for service of process, or designate an attorney as
243 its true and lawful attorney, upon whom a lawful process in an
244 action, suit, or proceeding instituted by or on behalf of the
245 ceding insurer may be served.
246 c. Pay all final judgments, wherever enforcement is
247 sought, that have been obtained by a ceding insurer or its legal
248 successor and that have been declared enforceable in the
249 jurisdiction where the judgment was obtained.
250

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251 Sub-subparagraphs a. and b. do not limit or in any way alter the
252 capacity of parties to a reinsurance agreement to agree to
253 alternative dispute resolution mechanisms, except that such
254 agreements are unenforceable under applicable insolvency or
255 delinquency laws.
256 d. Each reinsurance agreement includes a provision
257 requiring the assuming insurer to provide security in an amount
258 equal to 100 percent of the assuming insurer's liabilities
259 attributable to reinsurance ceded pursuant to that agreement if
260 the assuming insurer resists enforcement of a final judgment
261 that is enforceable under the law of the jurisdiction in which
262 it was obtained or a properly enforceable arbitration award,
263 whether obtained by the ceding insurer or its legal successor on
264 behalf of its resolution estate.
265 e. The assuming insurer confirms that it is not presently
266 participating in any solvent scheme of arrangement that involves
267 this state's ceding insurers, and agrees to notify the ceding
268 insurer and the office and to provide security in an amount
269 equal to 100 percent of the assuming insurer's liabilities to
270 the ceding insurer should the assuming insurer enter into such a
271 solvent scheme of arrangement. Such security must be consistent
272 with this subsection and subsection (3).
273 (e) If requested by the office, the assuming insurer or
274 its legal successor must provide to the office, on behalf of
275 itself and any legal predecessors, any documentation pursuant to

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276 criteria specified by the commission.
277 (f) The assuming insurer must maintain a practice of
278 prompt payment of claims under reinsurance agreements pursuant
279 to criteria specified by the commission.
280 (g) The assuming insurer's supervisory authority must
281 confirm to the office on an annual basis, on a form adopted by
282 the commission, that, as of the preceding December 31 or the
283 annual date otherwise statutorily reported to the reciprocal
284 jurisdiction, the assuming insurer complied with the
285 requirements specified in paragraphs (b) and (c).
286 (h)l. Credit may be taken under this subsection only for
287 reinsurance agreements entered into, amended, or renewed on or
288 after the date on which the assuming insurer has satisfied the
289 requirements to assume reinsurance under this subsection, and
290 only with respect to losses incurred and reserves reported on or
291 after the later of the date on which the assuming insurer has
292 met all eligibility requirements under this subsection, and the
293 effective date of the new reinsurance agreement, amendment, or
294 renewal.
295 2. This paragraph does not alter or impair a ceding
296 insurer's right to take credit for reinsurance, to the extent
297 that credit is not available under this subsection, as long as
298 the reinsurance qualifies for credit under any other applicable
299 provision of this section.
300 (i) If subject to a legal process of rehabilitation,

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301 liquidation, or conservation, as applicable, the ceding insurer
302 or its legal successor may seek and, if determined appropriate
303 by the court in which the proceedings are pending, may obtain an
304 order requiring that the assuming insurer post security for all
305 outstanding ceded liabilities.
306 ( j) If the office determines that an assuming insurer no
307 longer meets one or more of the requirements under this
308 subsection, the office may revoke or suspend the eligibility of
309 the assuming insurer for recognition under this subsection.
310 1. While an assuming insurer's eligibility is suspended,
311 any reinsurance agreement issued, amended, or renewed after the
312 effective date of the suspension does not qualify for credit,
313 except to the extent that the assuming insurer's obligations
314 under the contract are secured in accordance with this
315 subsection.
316 2. If an assuming insurer's eligibility is revoked, credit
317 for reinsurance may not be granted after the effective date of
318 the revocation with respect to any reinsurance agreement entered
319 into by the assuming insurer, including a reinsurance agreement
320 entered into before the date of revocation, except to the extent
321 that the assuming insurer's obligations under the contract are
322 secured in a form acceptable to the office and consistent with
323 this subsection.
324 (k) This subsection does not:
325 1. Preclude an assuming insurer from providing the office

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32 6 with information on a voluntary basis.
327 2. Limit or in any way alter the capacity of parties to a
328 reinsurance agreement to:
329 a. Agree on requirements for security or other terms in
330 that reinsurance agreement, except as expressly prohibited by
331 this section or other applicable law or rule of the commission.
332 b. Renegotiate the reinsurance agreement.
333 3. Authorize an assuming insurer to withdraw or reduce the
334 security provided under any reinsurance agreement, except as
335 permitted by the terms of the agreement.
336 J.21-H+ An asset allowed or a deduction from liability
337 taken for the reinsurance ceded by an insurer to an assuming
338 insurer not meeting the requirements of subsections (2)~ -afi€i.
339 (3), and (4) is allowed in an amount not exceeding the
340 liabilities carried by the ceding insurer. The deduction must be
341 in the amount of funds held by or on behalf of the ceding
342 insurer, including funds held in trust for the ceding insurer,
343 under a reinsurance contract with the assuming insurer as
344 security for the payment of obligations thereunder, if the
345 security is held in the United States subject to withdrawal
346 solely by, and under the exclusive control of, the ceding
347 insurer, or, in the case of a trust, held in a qualified United
348 States financial institution, as defined in paragraph (6) (b)
349 (§) (b). This security may be in the form of:
350 (a) Cash in United States dollars;

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351 (b) Securities listed by the Securities Valuation Office
352 of the National Association of Insurance Commissioners and
353 qualifying as admitted assets pursuant to part II of chapter
354 625;
355 (c) Clean, irrevocable, unconditional letters of credit,
356 issued or confirmed by a qualified United States financial
357 institution, as defined in paragraph ( 6) (a) ( §) ( a) , effective no
358 later than December 31 of the year for which the filing is made,
359 and in the possession of, or in trust for, the ceding company on
360 or before the filing date of its annual statement; or
361 (d) Any other form of security acceptable to the office.
362 (6)-f-§+(a) For purposes of paragraph (5) (c) (4) (c)

363 regarding letters of credit, a "qualified United States
364 financial institution" means an institution that:
365 1. Is organized or, in the case of a United States office
366 of a foreign banking organization, is licensed under the laws of
367 the United States or any state thereof;
368 2. Is regulated, supervised, and examined by United States
369 or state authorities having regulatory authority over banks and
370 trust companies; and
371 3. Has been determined by either the office or the
372 Securities Valuation Office of the National Association of
373 Insurance Commissioners to meet such standards of financial
374 condition and standing as are considered necessary and
375 appropriate to regulate the quality of financial institutions

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376 whose letters of credit will be acceptable to the office.
377 (b) For purposes of those provisions of this law which
378 specify institutions that are eligible to act as a fiduciary of
379 a trust, a "qualified United States financial institution'' means
380 an institution that is a member of the Federal Reserve System or
381 that has been determined by the office to meet the following
382 criteria:
383 1. Is organized or, in the case of a United States branch
384 or agency office of a foreign banking organization, is licensed
385 under the laws of the United States or any state thereof and has
386 been granted authority to operate with fiduciary powers; and
387 2. Is regulated, supervised, and examined by federal or
388 state authorities having regulatory authority over banks and
389 trust companies.
390 ~+H+
391 (b) The summary statement must be signed and attested to
392 by either the chief executive officer or the chief financial
393 officer of the reporting insurer. In addition to the summary
394 statement, the office may require the filing of any supporting
395 information relating to the ceding of such risks as it deems
396 necessary. If the summary statement prepared by the ceding
397 insurer discloses that the net effect of a reinsurance treaty or
398 treaties (or series of treaties with one or more affiliated
399 reinsurers entered into for the purpose of avoiding the
400 following threshold amount) at any time results in an increase

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401 of more than 25 percent to the insurer's surplus as to
402 policyholders, then the insurer shall certify in writing to the
403 office that the relevant reinsurance treaty or treaties comply
404 with the accounting requirements contained in any rule adopted
405 by the commission under subsection~ -f-±-4+-. If such
406 certificate is filed after the summary statement of such
407 reinsurance treaty or treaties, the insurer shall refile the
408 summary statement with the certificate. In any event, the
409 certificate must state that a copy of the certificate was sent
410 to the reinsurer under the reinsurance treaty.
411 (15) Any reinsurer approved pursuant to s.
412 624.610(3) (a)2., as such provision eJcisted prior to July 1,
413 2000, which fails to obtain accreditation pursuant to this
414 section prior to Deceffiber 30, 2003, shall have its approval
415 terfflinated by operation of law on that date.
416 (16) This section applies act shall apply to all cessions
417 on or after January 1, 2021 -2-G-B-±-, under reinsurance agreements
418 that have an inception, anniversary, or renewal date on or after
419 January 1, 2021 -2-G-B-±-.
420 Section 2. This act shall take effect January 1, 2021.

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:::c
~
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1409 Pub. Rec./Records of Insurers/Department of Financial Services
SPONSOR(S): Grant, M.
TIED BILLS: IDEN./SIM. BILLS: SB 1188

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee Salter Cooper

2) Oversight, Transparency & Public Management
Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
The Florida Constitution provides every person the right to inspect or copy any public record made or received
in connection with the official business of the legislative, executive, or judicial branches of government.
However, the Legislature may provide exemptions for disclosure with a statement of public necessity and a two
thirds vote by members.

The bill permits the Department of Financial Services to withhold certain records from disclosure. Currently, all
personal financial and health information of a consumer, all underwriting files of a type customarily maintained
by an insurer transacting lines of insurance similar to lines transacted by the insurer, all personnel and payroll
records of the insurer, and consumer claim files are protected from disclosure. However, when insurance
companies become insolvent, this information is no longer protected and can be disclosed. In these situations,
the bill prevents this information from public disclosure.

The bill exempts certain documents and reports submitted by companies to the Office of Insurance Regulation.
The bill provides exceptions to these exemptions. All exemptions in the bill are subject to the Open
Government Sunset Review Act in accordance withs. 119.15, F.S. The exemptions will be repealed on
October 25, 2025, unless reviewed and saved through reenactment by the Legislature. The bill also contains a
public necessity statement.

The bill has no fiscal impact on state or local government revenue or expenditures. It has no known positive or
negative economic impacts on the private sector.

The bill provides an effective date of July 1, 2020.

Article I, s. 24(c) of the Florida Constitution, requires a two-thirds vote of the members present and
voting for final passage of a newly created or expanded public record or public meeting exemption.
The bill creates a public record exemption for personal identifying information of an injured or
deceased worker; thus, it requires a two-thirds vote for final passage.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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DATE: 1/25/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Current Situation

The Florida Constitution provides every person the right to inspect or copy any public record made or
received in connection with the official business of the legislative, executive, or judicial branches of
government. 1 The Legislature, however, may provide by general law for the exemption of records from
the constitutional requirements. 2 An exemption must state with specificity the public necessity justifying
the exemption and may be no broader than necessary to accomplish the stated purpose of the law. 3 A
bill enacting an exemption must pass by a two-thirds vote of the members present and voting. 4

The Open Government Sunset Review Act (the Act) prescribes a legislative review process for newly-
created or substantially-amended public records or open meetings exemptions. 5 A public records or
open meetings exemption may be created or maintained only if it serves an identifiable public purpose.
An identifiable public purpose is served, if the exemption:
• Allows the state or its political subdivisions to effectively and efficiently administer a government
program, which administration would be significantly impaired without the exemption;
• Protects personal identifying information that, if released, would be defamatory or would
jeopardize an individual's safety; or
• Protects trade or business secrets. 6

The Act requires the automatic repeal of an exemption on October 2 of the fifth year after creation or
substantial amendment, unless the Legislature reenacts the exemption.

Insurers and insurance companies routinely keep records of policyholders and claimants during the
normal course of business. As long as the business remains solvent, these records are not freely
available to any person who requests such information, unless there is a valid reason for the request.
DFS's current ability to withhold information is limited to information outlined ins. 119.071, F.S. The
ability to withhold information does not cover family member medical and health history, private
financial information, or insurance coverage. If an insurance company becomes insolvent, policyholders
and claimants no longer receive the same protections and anyone can request access to their
information.

In 2011, as part of the NAIC's Solvency Modernization Initiative, the NAIC adopted a new insurance
regulatory tool: the U.S. Own Risk and Solvency Assessment (ORSA), which requires insurance
companies to issue their own assessment of their current and future risk through an internal risk self-
assessment process, allowing regulators to form an enhanced view of an insurer's ability to withstand
financial stress. 7 In essence, an ORSA is an internal process undertaken by an insurer or insurance
group to assess the adequacy of its risk management and current and prospective solvency positions
under normal and severe stress scenarios. An ORSA requires insurers to analyze all reasonably
foreseeable and relevant material risks (i.e., underwriting, credit, market, operational, liquidity risks,
etc.) that could have an impact on an insurer's ability to meet its policyholder obligations.

1 FLA. CONST., art. I, S. 24(a).
2 FLA. CONST., art. I, S. 24(c).
3 fd.
4 fd.
5
S. 119.15, F.S.
s S. 119.15(6)(b), F.S.
7 NAIC, Own Risk and Solvency Assessment, at

http://www.naic.org/cipr_topics/topic_own_risk_solvency_assessment.htm (last visited Jan. 25, 2020).
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In conducting an ORSA, an insurer or insurance group references highly sensitive and strategic
financial information. Additionally, a corporate governance annual disclosure, which an ORSA falls
under, provides OIR with confidential information. The disclosure must be as descriptive as possible, 8
and include material and relevant information sufficient to enable OIR to understand the corporate
governance structure, policies, and practices used by the insurer or insurance group. 9 Currently,
competitors can request access to this information, providing competitors with detailed insight into an
insurer or insurance company's financial position and strategies.

Effect of the Bill

The bill provides exemptions from public records disclosure 10 ands. 14(a), Art. I of the State
Constitution for the following records, in whatever form:
• All personal financial and health information of a consumer, including a family member or
dependent;
• Underwriting files of a type customarily maintained by an insurer transacting lines of insurance
similar to lines transacted by the insurer;
• Personnel and payroll records of the insurer; and
• Consumer claim files.

The bill defines personal financial and health information as:
• A consumer's personal health condition, disease or injury;
• A history of a consumer's personal medical diagnosis or treatment;
• The existence, nature, source, or amount of a consumer's personal income or expenses;
• Records of, or relating to, a consumer's personal financial transactions of any kind;
• The existence, identification, nature, or value of a consumer's assets, liabilities, or net worth;
• The existence or content of, or any individual coverage or status under a consumer's beneficial
interest in, any insurance policy or annuity contract; or
• The existence, identification, nature, or value of a consumer's interest in any insurance policy,
annuity contract, or trust.

The bill provides public records exemptions for several internal documents required by the Office of
Insurance Regulation (OIR) and held by the Department of Financial Services (DFS) before, on, or after
July 1, 2020. The following records are exempt from s. 119.07 (1), F.S., ands. 24 (a), Art. I of the State
Constitution:
• An ORSA summary report, a substantially similar ORSA summary report, and any supporting
documents submitted to OIR pursuant to s. 628.8015, F.S.;
• A corporate governance annual disclosure and any supporting documents submitted to OIR
pursuant to s. 628.8015, F.S.; and
• Information received from the National Association of Insurance Commissioners (NAIC), a
governmental entity of any state, the Federal Government, or a government of another nation
which is confidential and is held by DFS for use relating to insurer solvency.

The bill provides exceptions to the public records exemptions. Records or portions of records made
confidential and exempt by this bill may be released under specified circumstances:
• If disclosure is necessary for performance of duties and responsibilities, records may be
released to a state or federal agency, upon written request. The receiving agency must maintain
the confidential and exempt status of the records.
• Records may be released to comply with a properly authorized civil, criminal, or regulatory
investigation or a subpoena or summons by a federal, state, or local authority.

8 S. 628.8015 (3)(c)2., F.S.
9 S. 628.8015 (3)(c)3., F.S.

10 S. 119.07 (1), F.S.
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• If the recipient agrees in writing to maintain the confidential and exempt status of the records,
the NAIC and its affiliates and subsidiaries may receive records or portions of records.
• Records may be released to the guaranty associations and funds of the various states which
are receiving, adjudicating, and paying claims of an insolvent insurer subject to delinquency
proceedings, pursuant to ch. 633, F.S. The receiving association must maintain the confidential
and exempt status of the records.
• Upon written request, records may be released to persons identified as employees under s.
626.989 (4)(d), 11 whose responsibilities include the investigation and disposition of claims
relating to suspected fraudulent insurance acts.
• Records containing personal financial and health information of a consumer may be released
upon written request of the consumer or the consumer's legally authorized representative.

The listed exemptions are applicable even when an insurer or insurance company becomes insolvent.
The bill's public records exemptions are subject to the Open Government Sunset Review Act in
accordance with s. 119.15, F.S. The exemptions will be repealed on October 25, 2025, unless reviewed
and saved through reenactment by the Legislature.

B. SECTION DIRECTORY:
Section 1: Creates s. 631.195, F.S., related to records of insurers; public records exemptions.

Section 2: Provides a public necessity statement as required by the Florida Constitution.

Sections 3: Provides an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.

D. FISCAL COMMENTS:
None.

11 This section relates to insurance fraud investigations by DFS or the Division of Investigative and Forensic Services.
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111. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend or take action
requiring the expenditure of funds; reduce the authority that counties or municipalities have to raise
revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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F L O R D A H O U S E 0 F REPRESENTATIVES

HB 1409 2020

1 A bill to be entitled
2 An act relating to public records; creating s.
3 631.195, F.S.; defining the terms "consumer" and
4 "personal financial and health information"; exempting
5 from public records requirements consumer personal
6 financial and health information, certain underwriting
7 files, insurer personnel and payroll records, and
8 consumer claim files that are made or received by the
9 Department of Financial Services acting as receiver as
10 to an insurer; exempting from public records
11 requirements certain reports and documents held by the
12 department relating to insurer own-risk and solvency
13 assessments and corporate governance annual
14 disclosures and certain information received from the
15 National Association of Insurance Commissioners or
16 governments; providing retroactive applicability;
17 providing that exempted records may be released under
18 specified circumstances; providing for future
19 legislative review and repeal of the exemptions;
20 providing statements of public necessity; providing an
21 effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. Section 631.195, Florida Statutes, is created

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26 to read:
27 631.195 Records of insurers; public records exemptions.-
28 (1) As used in this section, the term:
29 (a) "Consumer" means a prospective purchaser of, a
30 purchaser of, a beneficiary of, or an applicant for any
31 insurance product or service. The term also includes a family
32 member or dependent of such person.
33 (b) "Personal financial and health information" means:
34 1. A consumer's personal health condition, disease, or
35 injury;
36 2. A history of a consumer's personal medical diagnosis or
37 treatment;
38 3. The existence, nature, source, or amount of a
39 consumer's personal income or expenses;
40 4. Records of, or relating to, a consumer's personal
41 financial transactions of any kind;
42 5. The existence, identification, nature, or value of a
43 consumer's assets, liabilities, or net worth;
44 6. The existence or content of, or any individual coverage
45 or status under a consumer's beneficial interest in, any
46 insurance policy or annuity contract; or
47 7. The existence, identification, nature, or value of a
48 consumer's interest in any insurance policy, annuity contract,
49 or trust.
50 (2) The following records, in whatever form, of an insurer

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51 which are made or received by the department, acting as receiver
52 pursuant to this chapter, are exempt from s. 119.07(1) ands.
53 24(a), Art. I of the State Constitution:
54 (a) All personal financial and health information of a
55 consumer.
56 (b) Underwriting files of a type customarily maintained by
57 an insurer transacting lines of insurance similar to those lines
58 transacted by the insurer.
59 (c) Personnel and payroll records of the insurer.
60 (d) Consumer claim files.
61 (3) The following records held by the department are
62 confidential and exempt from s. 119.07(1) ands. 24(a), Art. I
63 of the State Constitution:
64 (a) An ORSA summary report, a substantially similar ORSA
65 summary report, and supporting documents submitted to the office
66 pursuant to s. 628.8015.
67 (b) A corporate governance annual disclosure and
68 supporting documents submitted to the office pursuant to s.
69 628.8015.
70 (c) Information received from the National Association of
71 Insurance Commissioners, a governmental entity in this or
72 another state, the Federal Government, or a government of
73 another nation which is confidential or exempt if held by that
74 entity and which is held by the department for use in the
75 performance of its duties relating to insurer solvency.

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76 ( 4) The exemptions in subsections (2) and (3) apply to
77 records held by the department before, on, and after July 1,
78 2020.
79 (5) Records or portions of records made confidential and
80 exempt by this section may be released under any of the
81 following circumstances:
82 (a) To any state or federal agency, upon written request,
83 if disclosure is necessary for the receiving entity to perform
84 its duties and responsibilities. The receiving agency shall
85 maintain the confidential and exempt status of such record or
86 portion of such record.
87 (b) To comply with a properly authorized civil, criminal,
88 or regulatory investigation or a subpoena or summons by a
89 federal, state, or local authority.
90 (c) To the National Association of Insurance Commissioners
91 and its affiliates and subsidiaries, if the recipient agrees in
92 writing to maintain the confidential and exempt status of the
93 records.
94 (d) To the guaranty associations and funds of the various
95 states which are receiving, adjudicating, and paying claims of
96 the insolvent insurer subject to delinquency proceedings
97 pursuant to this chapter. The receiving guaranty association
98 shall maintain the confidential and exempt status of such record
99 or portion of such record.
100 (e) Upon written request, to persons identified as

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101 designated employees as described in s. 62 6. 98 9 ( 4) ( d) , whose
102 responsibilities include the investigation and disposition of
103 claims relating to suspected fraudulent insurance acts.
104 (f) In the case of personal financial and health
105 information of a consumer, upon written request of the consumer
106 or the consumer's legally authorized representative.
107 (6) This section is subject to the Open Government Sunset
108 Review Act in accordance withs. 119.15 and shall stand repealed
109 on October 2, 2025, unless reviewed and saved from repeal
110 through reenactment by the Legislature.
111 Section 2. ( 1) The Legislature finds it is a public
112 necessity to exempt from s. 119.07(1), Florida Statutes, ands.
113 24(a), Article I of the State Constitution all personal
114 financial and health information of a consumer, underwriting
115 files of a type customarily maintained by an insurer transacting
116 lines of insurance similar to those lines transacted by the
117 insurer, personnel and payroll records of an insurer, and
118 consumer claim files that are made or received by the Department
119 of Financial Services acting as receiver as to an insurer.
120 Disclosure of financial, health, underwriting, personnel,
121 payroll, or consumer claim information would create the
122 opportunity for theft or fraud, thereby jeopardizing the
123 financial security of a person. Limiting disclosure of such
124 information held by the department is also necessary in order to
125 protect the financial interests of the persons to whom that

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12 6 information pertains. Such information could be used for
127 fraudulent or other illegal purposes, including identity theft,
128 and could result in substantial financial harm. Furthermore,
129 every person has an expectation of and a right to privacy in all
130 matters concerning his or her financial interests. The
131 Legislature further finds that it is a public necessity that
132 health information held by the department be made confidential
133 and exempt because matters of personal health are traditionally
134 private and confidential concerns between the patient and his or
135 her health care provider. The private and confidential nature of
136 personal health matters pervades both the public and private
137 health care sectors. Moreover, public disclosure of health
138 information could have a negative effect upon a person's
139 business and personal relationships and could also have
140 detrimental financial consequences.
141 (2) (a) The Legislature further finds that it is a public
142 necessity to exempt from s. 119.07(1), Florida Statutes, ands.
143 24(a), Article I of the State Constitution the following records
144 held by the department:
145 1. An own-risk and solvency assessment (ORSA) summary
146 report, a substantially similar ORSA summary report, and
147 supporting documents submitted to the Office of Insurance
148 Regulation pursuant to s. 628.8015, Florida Statutes;
149 2. A corporate governance annual disclosure and supporting
150 documents submitted to the office pursuant to s. 628.8015,

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151 Florida Statutes; and
152 3. Information received from the National Association of
153 Insurance Commissioners, a governmental entity in this or
154 another state, the Federal Government, or a government of
155 another nation which is confidential or exempt if held by that
156 entity and which is held by the department for use in the
157 performance of its duties relating to insurer solvency.
158 (b) In conducting an ORSA, an insurer or insurance group
159 identifies and evaluates the material and relevant risks to the
160 insurer or insurance group and the adequacy of capital resources
161 to support these risks. The ORSA summary report, substantially
162 similar ORSA report, and supporting documents contain highly
163 sensitive and strategic financial information about an insurer
164 or insurer group. Having a comprehensive and unbiased assessment
165 provides the office with an effective early warning mechanism
166 for preventing insolvencies and protecting policyholders and
167 promotes a stable insurance market. Divulging the ORSA summary
168 report, substantially similar ORSA summary report, and
169 supporting documents will injure the insurer or insurance group
170 by providing competitors with detailed insight into their
171 financial position, risk management strategies, business plans,
172 pricing and marketing strategies, management systems, and
173 operational protocols.
174 (c) The corporate governance annual disclosure describes
175 an insurer's governance structure and the internal practices and

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176 procedures used in conducting the business affairs of the
177 company, making strategic operational decisions affecting its
178 competitive position, and managing its financial condition.
179 Release of the corporate governance annual disclosure and
180 supporting documents will injure the insurer or insurance group
181 in the marketplace by providing competitors with the insurer's
182 or the insurance group's confidential business information.
183 Broad disclosure will give state regulators a thorough
184 understanding of the corporate governance structure and internal
185 policies and practices used by insurers and promote market
186 integrity. Effective governance mechanisms will enable insurers
187 to take any necessary corrective actions and achieve strategic
188 goals while allowing the office to perform its regulatory duties
189 effectively and efficiently.
190 (d) Divulgence of confidential or exempt information
191 received from the National Association of Insurance
192 Commissioners or governments could impede the exchange of
193 information and communication among regulators across multiple
194 agencies and jurisdictions and jeopardize the ability of
195 regulators to effectively supervise insurers and groups
196 operating in multiple jurisdictions and engaged in significant
197 cross-border activities.
198 Section 3. This act shall take effect July 1, 2020.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS

BILL#: HB 1439 Bank Property of Deceased Account Holders
SPONSOR(S): Yarborough
TIED BILLS: IDEN./SIM. BILLS: SB 380, HB 397

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY
CHIEF

1) Insurance & Banking Subcommittee Hinshelwood~ooper ~
2) Civil Justice Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
Probate is a court-supervised process that ensures a deceased person's (decedent's) debts are paid in an
orderly fashion and that the rightful beneficiaries, whether determined according to a will or by default rules of
succession, receive the property to which they are entitled. Assets subject to probate are those that were
owned in the decedent's sole name at death or that were owned by the decedent and one or more co-owners
but lacked a provision for automatic succession of ownership at death. Florida has two types of probate
administration: formal administration for estates of any size and summary administration for estates generally
under $75,000. Additionally, Florida has an abbreviated process for distributing small estates that consist of
only personal property, such as money. To initiate this abbreviated process for the disposition of personal
property, any interested party may file an informal application by affidavit, letter, or otherwise with the court. If
the court is satisfied that the decedent's assets meet the criteria for this abbreviated process, the court may, by
letter or other writing under the seal of the court, authorize the payment, transfer, or disposition of the personal
property, tangible or intangible, belonging to the decedent to those persons entitled.

Under the Florida Disposition of Unclaimed Property Act, checking or savings accounts or certificates of
deposit that remain dormant for five years are presumed unclaimed and must be turned over to the
Department of Financial Services (DFS}, which maintains a website at which members of the public can search
for unclaimed property to which they may be entitled. A deceased owner's beneficiaries may claim the property
by filing an affidavit with the DFS (no court order required) if all of the unclaimed property held by the DFS on
behalf of the owner has an aggregate value of $10,000 or less and no probate proceeding is pending.

The bill authorizes certain family members of a decedent to present a sworn affidavit and certified death
certificate to a financial institution in Florida and receive up to $10,000 from "qualified accounts" (depository
accounts or certificates of deposit held in the sole name of the decedent without a pay-on-death or any other
survivor designation) if the total amount of the combined funds in all qualified accounts at that financial
institution is less than $10,000 and if at least two years have passed since the decedent's death. No court
proceeding, order, or judgment is needed. The affidavit must contain a statement acknowledging that a
personal representative has not been appointed to administer the decedent's estate and attesting that no
probate proceeding or summary administration procedure has been commenced with respect to the estate.
The affidavit must also include a statement acknowledging that the affiant has no knowledge of the existence
of any last will and testament or other document or agreement relating to the distribution of the decedent's
estate. The financial institution is not required to determine whether the contents of the sworn affidavit are
truthful, and the financial institution is fully released and discharged from further liability for the amount paid.

The bill has no fiscal impact on state or local governments and an indeterminate impact on the private sector.

The bill provides an effective date of July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Background

Regulation of Depository Financial Institutions
The U.S. dual banking system allows commercial banks to become chartered (organized) under either
federal or state law:
• National banks are chartered under federal law, i.e., the National Bank Act. 1 Their primary
federal regulator is the Office of the Comptroller of the Currency, an independent agency within
the U.S. Department of the Treasury.
• State-chartered banks are chartered under the laws of the state in which the bank is
headquartered. The primary federal regulator for state banks that are members of the Federal
Reserve System is the Board of Governors of the Federal Reserve System. The primary federal
regulator for non-members is the Federal Deposit Insurance Corporation (FDIC). 2

In addition to having a federal regulator, state-chartered banks are regulated by their chartering state.
In Florida, the state regulatory agency for financial institutions is the Office of Financial Regulation
(OFR). 3 The OFR's Division of Financial Institutions charters, licenses, and regulates various entities
that engage in financial institution business in Florida, in accordance with the financial institutions
codes (Fl Codes) and the rules promulgated thereunder. 4 The OFR also ensures that Florida-chartered
financial institutions comply with state and applicable federal requirements for safety and soundness. 5
The OFR does not regulate federally chartered financial institutions or financial institutions chartered by
other states.

Like banks, credit unions accept deposits and make loans, and can be state-chartered or federally-
chartered:
• State-chartered credit unions may be formed under the Florida Credit Union Act (FCUA), which
became law in 1980. 6 The FCUA provides that "[a] credit union is a cooperative, nonprofit
association, organized ... for the purposes of encouraging thrift among its members, creating
sources of credit at fair and reasonable rates of interest, and providing an opportunity for its
members to use and control their resources on a democratic basis in order to improve their
economic and social condition.'>? State-chartered credit unions have both a state regulator, the
OFR, and a federal regulator, the National Credit Union Association (NCUA).
• Federally-chartered credit unions are chartered under the Federal Credit Union Act of 19348
and are regulated by the NCUA.

1
The National Bank Act of 1964 (12 U.S.C. § 24 Seventh) gives enumerated powers and "all such incidental powers as shall be
necessary to carry on the business of banking" to nationally chartered banks. To prevent inconsistent or intrusive state regulation from
impairing the national system, Congress provided: "No national bank shall be subject to any visitorial powers except as authorized by
Federal law." Id. at§ 484(a).
2
12 U.S.C. § 1813(q).
3 s. 20.121(3)(a)2., F.S.
4
Chs. 655,657,658,660,662,663, 665, and 667, F.S.; chs. 69U-100 through 69U-162, F.A.C.
5
While the Fl Codes do not specifically define "safety and soundness," the Fl Codes define "unsafe and unsound practice" as "any
practice or conduct found by the office to be contrary to generally accepted standards applicable to a financial institution, or a violation
of any prior agreement in writing or order of a state or federal regulatory agency, which practice, conduct, or violation creates the
likelihood of loss, insolvency, or dissipation of assets or otherwise prejudices the interest of the financial institution or its depositors or
members. In making this determination, the office must consider the size and condition of the financial institution, the gravity of the
violation, and the prior conduct of the person or institution involved." Sees. 655.005(1)(y), F.S. For a discussion of the FDIC's approach
to unsafe or unsound practices, see FDIC's Risk Management Manual of Examination Policies, Section 15.1, at:
https://www.fdic.gov/regulations/safety/manual/section15-1.pdf (last visited Jan. 24, 2020).
6
Ch. 80-258, Laws of Fla.; codified at ch. 657, F.S.
7
s. 657.003, F.S.
8
Public Law 73-467, codified at 12 U.S.C. § 1751 et seq.
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The Fl Codes currently provide that "[t]he books and records pertaining to ... the deposit accounts ...
of depositors ... [and] members ... of any financial institution shall be kept confidential by the financial
institution and its directors, officers, and employees and may not be released except upon express
authorization of the account holder as to her or his own accounts .... "9 The Fl Codes provide limited
exceptions to the confidential protection given such information. 10 One such exception states that a
financial institution is not prohibited from disclosing financial information as authorized by the Gramm-
Leach-Bliley Act, 11 as set forth in 15 U.S.C. s. 6802 relating to obligations with respect to disclosures of
personal information. 12

Probate Process in Florida

Probate is a court-supervised process for identifying and gathering the assets of a deceased person
(decedent), paying the decedent's debts, and distributing the decedent's assets to his or her
beneficiaries. 13 Probate proceedings are governed by The Florida Probate Code found in chs. 731 -
735, F.S., and the Florida Probate Rules of court. 14 The probate process ensures that the decedent's
debts are paid in an orderly fashion and that the rightful beneficiaries, whether determined according to
a will or by default rules of succession, receive the property to which they are entitled.

Assets subject to probate are those that were owned in the decedent's sole name at death or that were
owned by the decedent and one or more co-owners but lacked a provision for automatic succession of
ownership at death. 15 The following are examples to illustrate common probate and non-probate
assets: 16
• A bank account or investment account in the sole name of a decedent is a probate asset; but a
bank account or investment account owned by the decedent and payable on death or
transferable on death to another, or held jointly with rights of survivorship with another, is not a
probate asset.
• A life insurance policy, annuity contract or individual retirement account that is payable to a
specific beneficiary is not a probate asset; but a life insurance policy, annuity contract, or
individual retirement account payable to the decedent's estate is a probate asset.
• Real estate titled in the sole name of the decedent, or in the name of the decedent and another
person as tenants in common, is a probate asset (unless it is homestead property); but real
estate titled in the name of the decedent and one or more other persons as joint tenants with
rights of survivorship is not a probate asset.
• Property owned by spouses as tenants by the entirety is not a probate asset on the death of the
first spouse to die; it goes automatically to the surviving spouse.

There are two types of probate administration in Florida: formal administration and summary
administration.

Formal Administration

Any interested person 17 may petition the court to begin administration of the decedent's estate. 18 Venue

9
S. 655.059(2)(b}, F.S.
10 Id.
11
Pub. L. 106-102.
12 S. 655.059(2)(b)1., F.S.
13
The Florida Bar, Consumer Pamphlet: Probate in Florida, https://www.floridabar.org/public/consumer/pamphlet026/ (last visited Jan.
24, 2020).
14
Available at https://www-media.floridabar.org/uploads/2020/01/Probate-Rules-01-01-20.pdf (last visited Jan. 24, 2020).
15
The Florida Bar, supra note 13.
16 Id.
17
"Interested person" is defined as "any person who may reasonably be expected to be affected by the outcome of the particular
proceeding involved. In any proceeding affecting the estate or the rights of a beneficiary in the estate, the personal representative of the
estate shall be deemed to be an interested person. In any proceeding affecting the expenses of the administration and obligations of a
decedent's estate, or any claims described in s. 733. 702(1 ), the trustee of a trust described in s. 733. 707(3) is an interested person in
the administration of the grantor's estate. The term does not include a beneficiary who has received complete distribution. The
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is proper in the county where the decedent was domiciled. 19 If the decedent left a will, the custodian of
the will must deposit the original copy of the will with the clerk of the court having venue of the
decedent's estate within 10 days of receiving information that the decedent died. 20

The probate proceedings are presided over by a circuit court judge. The judge will determine whether
the decedent's will, if any, is valid. If the decedent had no will or the will is invalid, the decedent is said
to have died intestate. The estate will be administered by a personal representative who is a fiduciary
appointed by the court. 21 If the decedent had a valid will that named a person to serve as the personal
representative, the court will appoint the named person so long as that person is qualified to serve as
such. 22 If the decedent did not leave a will, the surviving spouse is given first preference to serve as the
personal representative. 23

The judge will issue letters of administration in order to grant authority to the personal representative to
act on behalf of the decedent's estate. 24 It is recommended that a personal representative engage a
qualified attorney to assist in the administration of the decedent's probate estate. 25 Many legal issues
arise, even in the simplest probate estate administration, and most of these issues will be novel and
unfamiliar to non-attorneys. 26 The attorney for the personal representative advises the personal
representative on the rights and duties under the law, and represents the personal representative in
probate estate proceedings. 27 The attorney for the personal representative is not the attorney for any of
the beneficiaries of the decedent's probate estate. 28

The personal representative must: 29
• Identify, gather, value, and safeguard the decedent's probate assets.
• Publish a notice to creditors in a local newspaper in order to give notice to potential claimants to
file claims in the manner required by law.
• Serve a notice of administration to provide information about the probate estate administration
and notice of the procedures required to be followed by those having any objection to the
administration of the decedent's probate estate.
• Conduct a diligent search to locate known or reasonably ascertainable creditors, and notify
these creditors of the time by which their claims must be filed.
• Object to improper claims and defend suits brought on such claims.
• Pay valid claims.
• File tax returns and pay any taxes properly due.
• Employ professionals to assist in the administration of the probate estate; for example,
attorneys, certified public accountants, appraisers, and investment advisers.
• Pay expenses of administering the probate estate.
• Pay statutorily required amounts to the decedent's surviving spouse or family.
• Distribute probate assets to beneficiaries.
• Close the probate estate.

The Florida Probate Code provides the order and priority of distributions from the decedent's estate. In
general, the decedent's assets are used first to pay the cost of the probate proceeding; then assets are

meaning, as it relates to particular persons, may vary from time to time and must be determined according to the particular purpose of,
and matter involved in, any proceedings." S. 731.201 (23), F.S.
18 S. 733.202, F.S.
19 S. 733.101(1), F.S.
2o S. 732.901 (1 ), F .S.
21 Ss. 731.201(28) and 733.602, F.S.
22 See ch. 733, part Ill, F.S., for qualifications and disqualifications.

23 S. 733.301(1)(b), F.S.
24 S. 731.201 (24), F.S.
25 The Florida Bar, supra note 13.
26 Id.
27 Id.
28 Id.
29 Id.; ch. 733, parts VI-IX, F.S.
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used to pay the decedent's funeral expenses, followed by payment of the decedent's outstanding
debts, and the remainder is distributed to the decedent's beneficiaries. 30

As previously noted, the personal representative must use diligent efforts to give actual notice of the
probate proceeding to known or reasonably ascertainable creditors, and the personal representative
must publish a notice to creditors in a local newspaper in order to give notice to other potential
claimants. Creditors' claims are barred unless filed in the probate proceeding within the later of three
months after the time of the first publication of the notice to creditors or, as to any creditor required to
be served with a copy of the notice to creditors, 30 days after the date of service on the creditor. 31 The
decedent's estate, personal representative, and beneficiaries are no longer liable for any claim or cause
of action against the decedent two years after the decedent's death, regardless of whether letters of
administration have been issued. 32 This is often referred to as the "non-claim statute".

The judge presiding over the probate proceeding will consider evidence to confirm the identities of
beneficiaries who are entitled to receive property from the decedent's probate estate. A Florida resident
does have the right to entirely disinherit anyone. 33 However, the decedent's surviving spouse and
children may be entitled to receive assets from the decedent's probate estate, even if the decedent's
will gives them nothing. 34 Florida law protects the decedent's surviving spouse and certain surviving
children from total disinheritance. 35 For example: 36
• Homestead protection: A surviving spouse may have rights in the decedent's homestead real
property. 37
• Elective share: A surviving spouse may have the right to claim an "elective share" from the
decedent's probate estate. The elective share is, generally speaking, 30 percent of all of the
decedent's assets, including any assets that are non-probate assets. 38
• Family allowance: A surviving spouse or the decedent's children may have the right to a family
allowance to provide them with funds (up to $18,000) before final distribution of the estate
assets. 39
• Pretermitted spouse or children: If the decedent married, or had children, after the date of the
decedent's last will, and if the decedent neglected to provide for the new spouse or children, an
omitted family member may nevertheless be entitled to a share of the decedent's probate
estate. 40

If a decedent left no will or if any part of the decedent's estate is not effectively disposed of by will, the
decedent's property will pass to the decedent's heirs as prescribed by default rules of intestate
succession. 41

The intestate share of the surviving spouse is as follows: 42
• If there is no surviving descendant of the decedent, the entire intestate estate.
• If the decedent is survived by one or more descendants, all of whom are also descendants of
the surviving spouse, and the surviving spouse has no other descendant, the entire intestate
estate.
• If there are one or more surviving descendants of the decedent who are not lineal descendants
of the surviving spouse, one-half of the intestate estate.

30
The Florida Bar, supra note 13.
31 S. 733.702(1), F.S.
32 S. 733.710, F.S.
33
The Florida Bar, supra note 13.
34 fd.
35 fd.
36 fd.
37
Art. X, s. 4, Fla. Const.; ss. 732.401 and 732.4015, F.S.
38
Ch. 732, part II, F.S.
39 Ss. 732.403 and 733.707(1)(e), F.S.
40 Ss. 732.301 and 732.302, F.S.
41
S. 732.101, F.S.; ch. 732, part I, F.S.
42 S. 732.102, F.S.
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• If there are one or more surviving descendants of the decedent, all of whom are also
descendants of the surviving spouse, and the surviving spouse has one or more descendants
who are not descendants of the decedent, one-half of the intestate estate.

The part of the intestate estate not passing to the surviving spouse as described above, or the entire
intestate estate if there is no surviving spouse, descends as follows: 43
• To the descendants of the decedent.
• If there is no descendant, to the decedent's father and mother equally, or to the survivor of
them.
• If there is none of the foregoing, to the decedent's brothers and sisters and the descendants of
deceased brothers and sisters.
• If there is none of the foregoing, the estate must be divided: one-half to the decedent's paternal,
and the other half to the decedent's maternal, kindred in the following order:
o To the grandfather and grandmother equally, or to the survivor of them.
o If there is no grandfather or grandmother, to uncles and aunts and descendants of
deceased uncles and aunts of the decedent.
o If there is either no paternal kindred or no maternal kindred, the estate must go to the
other kindred who survive, in the order stated above.
• If there is no kindred of either part, the whole of the property must go to the kindred of the last
deceased spouse of the decedent as if the deceased spouse had survived the decedent and
then died intestate entitled to the estate.

Descent of inheritance under the above intestate succession statutes must be per stirpes. 44 If property
descends to the decedent's collateral kin and part of the collateral kin are of the whole blood to the
decedent and the other part of the half blood, the half-blooded kin inherit only half as much as the
whole-blooded kin. 45 Heirs of the decedent conceived before his or her death, but born thereafter,
inherit intestate property as if they had been born in the decedent's lifetime. 46 With some exceptions, an
adopted person is a descendant of the adopting parent, is one of the natural kindred of all members of
the adopting parent's family, is not a descendant of his or her natural parents, and is not one of the
kindred of any member of the natural parent's family or any prior adoptive parent's family. 47 A person
born out of wedlock is a descendant of his or her father and is one of the natural kindred of all members
of the father's family if the natural parents eventually married or if paternity has otherwise been
established. 48 A natural or adoptive parent is barred from inheriting from or through a child if the natural
or adoptive parent's parental rights were terminated prior to the death of the child, and the natural or
adoptive parent must be treated as if the parent predeceased the child. 49

Summary Probate Administration

Summary administration is an alternative to the formal administration process that is generally faster
and less costly than formal administration. For example, a personal representative is not appointed
and, therefore, no fee need be paid to such a person. Additionally, the shorter process can result in
lower attorney's fees. Summary administration is available only if the decedent has been dead for more
than two years or if the value of the estate subject to administration in Florida (less the value of property

43
S. 732.103, F.S.
44
Distribution per stirpes means that the inherited property is "[p]roportionately divided between beneficiaries according to their
deceased ancestor's share." BLACK'S LAW DICTIONARY 1181 (8th ed. 2004). In other words, if an estate is distributed per stirpes,
individuals within each generation of the family receive an equal distribution of the estate. Distribution per stirpes differs from
distribution per capita in which individuals within the same class (for example, all living descendants of the decedent) inherit equally.
Distribution per capita can result in individuals within the same generation inheriting differing amounts if other members in that
generation had children but predeceased the decedent.
45
S. 732.105, F.S.
46
S. 732.106, F.S.
47
S. 732.108, F.S.
48 /d.
49 S. 732.1081, F.S.
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which is exempt from the claims of creditors 50 ) is less than $75,000. 51 Summary administration is not
available if a decedent's will specifically directs formal administration. 52

A petition for summary administration may be filed by any beneficiary or person nominated as personal
representative in the decedent's will. 53 The petition must be signed and verified by any surviving spouse
and any beneficiaries who will not receive a full distributive share under the proposed distribution. 54
However, any other beneficiary must be served with formal notice of the petition. 55 Once the court
receives the petition for summary administration and is satisfied that the estate qualifies, the court
issues an order of summary administration allowing immediate distribution of assets to the persons
entitled to them. 56

If the decedent passed away more than two years before the filing of the petition for summary
administration, creditors' claims do not need to be addressed in the summary administration proceeding
because Florida's non-claim statute effectively bars any creditors' claims that are not brought within two
years of the decedent's death. 57 If the decedent passed away less than two years before the filing of
the petition for summary judgment, the petitioner is required to make a diligent search and reasonable
inquiry for any known or reasonably ascertainable creditors, serve a copy of the petition on those
creditors, and make provision for payment for those creditors to the extent that assets are available. 58
As for those creditors who are not known or reasonably ascertainable, if proof of publication of a
specified notice to creditors has been filed with the court, all claims and demands of such creditors are
forever barred unless their claims are filed within three months after the first publication of the notice. 59

Those who receive a distribution of estate assets generally remain liable for claims against the
decedent for two years after the date of death. 60 The following parties are entitled to receive reasonable
attorney's fees and costs if they prevail in an action to enforce their claim:
• Any known or reasonably ascertainable creditor who did not receive notice and for whom
provision for payment was not made. 61
• Any heir or devisee 62 of the decedent who was lawfully entitled to share in the estate but who
was not included in the order of summary administration and distribution. 63

If the decedent owned a homestead in Florida, the heirs may not automatically have clear title such that
the property can later be sold. The heirs may be required to get a court to issue an order determining
homestead, which is a process that can be accomplished alongside or as part of a summary
administration proceeding. 64 If the Florida homestead is the only asset in the decedent's probate estate,
it will qualify for summary administration regardless of the value of the homestead because the value of
Florida homestead property is not counted for purposes of determining whether the estate meets the
$75,000 limitation for summary administration.

5
°For example, homestead property that is protected from creditors' claims by Art. X, s. 4, Fla. Const.
5 1 S. 735.201 (1 ), F .S.
52 Jd.
53
S. 735.203(1), F.S.
54 /d.
55 Id.
56 S. 735.206(3), F.S.
57 S. 733.710, F.S.
58
S. 735.206(2), F.S.
59
S. 735.2063, F.S.
60 S. 735.206(4)(d)-(f), F.S.
61 S. 735.206(4)(d), F.S.
62 "Devisee" means "[a] recipient of property by will." BLACK'S LAw DICTIONARY 484 (8th ed. 2004).
63
S. 735.206(4)(9), F.S.
64
The value of homestead property is not counted for purposes of determining whether the decedent's probate estate falls within the
cap of $75,000 for summary administration.
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Disposition of Personal Property Without Administration

Disposition of personal property without administration is yet another alternative to the formal
administration process and is a more abbreviated process than summary administration. 65 It is available
only if the decedent's probate estate consists solely of the following: 66
• Personal property classified as exempt under the provisions of s. 732.402, F.S., such as
household furnishings up to a net value of $20,000 and two vehicles;
• Personal property exempt from the claims of creditors under the Florida Constitution, such as
personal property valued at $1,000 or less; 67 and
• Non-exempt personal property valued at less than the sum of:
o The amount of preferred funeral expenses, and
o The amount of reasonable and necessary medical and hospital expenses incurred in the
last 60 days of the decedent's final illness.

Personal property is anything that is movable (e.g., money and jewelry) or intangible (e.g., stocks and
bonds). 68

To initiate this abbreviated process, any interested party may file an informal application by affidavit,
letter, or otherwise with the court. 69 If the court is satisfied that the decedent's assets meet the criteria
for this abbreviated process, the court may, by letter or other writing under the seal of the court,
authorize the payment, transfer, or disposition of the personal property, tangible or intangible, belonging
to the decedent to those persons entitled. 70 Any person, firm, or corporation paying, delivering, or
transferring property under the court's authorization is forever discharged from liability thereon. 71

Escheated and Unclaimed Property
When a person dies leaving an estate without being survived by any person entitled to a part of it, that
part reverts to the state. 72 Such property is said to "escheat to the state". 73 Property that escheats must
be sold as provided in the Florida Probate Rules and the proceeds paid to Florida's Chief Financial
Officer, who heads the Department of Financial Services (DFS), and deposited in the State School
Fund. 74 A person claiming to be entitled to the proceeds may, within 10 years after the payment to the
Chief Financial Officer, petition the court to assert entitlement to the proceeds. 75 If no claim is timely
asserted, the state's right to the proceeds becomes absolute. 76

Similarly, abandoned and unclaimed property must be turned over to the DFS under the Florida
Disposition of Unclaimed Property Act (Act). Under the Act, the Division of Unclaimed Property, a
division within the DFS, is responsible for receiving abandoned property, attempting to locate the
rightful owner, and returning the property or proceeds to the owner. The Act protects the interests of
missing owners of property while the state derives a benefit from the unclaimed and abandoned
property until the property is claimed, if ever. There is no statute of limitations in the Act for an owner's
claim; the owner may claim his or her property at any time and at no cost.

Generally, all intangible property, including any income thereon less any lawful charges, which is held
in the ordinary course of the holder's business, is presumed to be unclaimed when the owner fails to
claim the property for more than five years after the property becomes payable or distributable, unless

65 S. 735.301, F.S.
66
S. 735.301(1), F.S.
67
Art. X, s. 4(a)(2), Fla. Const.
68 BLACK'S LAW DICTIONARY 1254 (8th ed. 2004).
69 S. 735.301 (2), F .S.
10 Id.
71 Id.
12 S. 732.107, F.S.
73 Id.
74 Id.; s. 20.121(1), F.S.; s. 733.816, F.S.
75
S. 732.107, F.S.; s. 733.816, F.S.
76 Id.
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otherwise provided in the Act. 77 For particular kinds of property, the Act provides varying time periods to
trigger a finding that such property is presumed unclaimed and must be turned over to the DFS. For
example, the presumption of unclaimed property arises for:
• Traveler's checks 15 years after its issuance if, within that time, the owner has not
communicated in writing with the issuer concerning it or otherwise indicated an interest in it. 78
• Money orders 7 years after its issuance if, within that time, the owner has not communicated in
writing with the issuer concerning it or otherwise indicated an interest in it. 79
• Sums payable on a check, draft, or similar instrument on which a banking or financial
organization is directly liable 5 years after it was payable, or after its issuance if payable on
demand, if, within that time, the owner has not communicated in writing with the banking or
financial organization concerning it or otherwise indicated an interest in it. 80
• Checking or savings deposits or a certificate of deposit, including interest or dividends thereon,
held by a banking or financial organization 5 years after the owner last:
o Increased or decreased the amount of the deposit;
o Increased or decreased the amount of another deposit with the banking or financial
organization so long as the banking or financial organization communicates in writing, at
the address to which communications regarding the other deposit are regularly sent, with
the owner with regard to the deposit that would otherwise be presumed unclaimed;
o Communicated with the banking or financial organization concerning the property;
o Otherwise indicated an interest in the property;
o Communicated in writing with the banking or financial organization concerning another
relationship with such banking or financial organization;
o Otherwise indicated an interest concerning another relationship with such banking or
financial organization so long as the banking or financial organization communicates in
writing, at the address to which communications regarding the other relationship are
regularly sent, with the owner with regard to the property that would otherwise be
presumed unclaimed. 81
• Intangible property held by fiduciaries 5 years after it has become payable or distributable if,
within that time, the owner has not increased or decreased the principal, accepted payment of
principal or income, communicated concerning the property, or otherwise indicated an interest in
it. 82
• Intangible property held by fiduciaries under trust instruments 2 years after it has become
payable or distributable if, within that time, the owner has not increased or decreased the
principal, accepted payment of principal or income, communicated concerning the property, or
otherwise indicated an interest in it. 83
• Tangible and intangible property held by a banking or financial organization in a safe-deposit
box 3 years after the lease or rental period on the box has expired. 84

Holders of unclaimed property are required to file an annual report of unclaimed property with the DFS,
and must transmit the unclaimed property with the report, between January 1 and May 1 of each year. 85
The report and transmittal must include all property considered unclaimed in the previous calendar
year. 86 Holders of inactive accounts having a value of $50 or more are required to use due diligence to
locate and notify the apparent owners at least 60 days but not more than 120 days prior to filing the
report of unclaimed property with the DFS. 87 The report of unclaimed property must contain certain

7 1 S. 717.102(1), F.S.

10 S. 717104(1 }, F .S.
79 S. 717.104(2), F.S.
80 S. 717.105, F.S.
81 S. 717.106, F.S.

02 S. 717.112(1), F.S.
83 S. 717.1125, F.S.
84
S. 717.116, F.S.
0s Ss. 717.117(3) and 717.119, F.S.
86 fd.
87
S. 717.117(4), F.S.
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identifying information, such as the apparent owner's name, social security number or federal employer
identification number, and last known address. 88

Upon the payment or delivery of unclaimed property to the DFS, the state assumes custody and
responsibility for the safekeeping of the property. 89 Any person who pays or delivers property to the
DFS in good faith is relieved of all liability to the extent of the value of the property paid or delivered for
any claim then existing or which thereafter may arise or be made in respect to the property. 90 The
original property owner retains the right to recover the proceeds of the property, and any person
claiming an interest in the property delivered to the DFS may file a claim for the property, subject to
certain requirements. 91 Claims for recovery of unclaimed property may be filed by or on behalf of any
person with an interest in the property. 92 The DFS maintains a website at which members of the public
can search for unclaimed property to which they may be entitled. 93

The Act provides a process for a deceased owner's beneficiaries to claim the property without an order
of a probate court if all of the unclaimed property held by the DFS on behalf of the owner has an
aggregate value of $10,000 or less and no probate proceeding is pending. 94 To do so, the claimant
must file with the DFS an affidavit, signed by all beneficiaries, stating that all the beneficiaries have
amicably agreed among themselves upon a division of the estate and that all funeral expenses,
expenses of the last illness, and any other lawful claims have been paid. 95 The claimant must provide
any additional information reasonably necessary to make a determination of entitlement. 96 If the owner
died testate, 97 the claim must be accompanied by a copy of the will. 98 Each person receiving property
under this process is personally liable for all lawful claims against the estate of the owner, but only to
the extent of the value of the property received by such person under this process, exclusive of the
property exempt from claims of creditors under the constitution and laws of Florida. 99 Any heir or
devisee of the owner, who was lawfully entitled to share in the property but did not receive his or her
share of the property, may enforce his or her rights in appropriate proceedings against those who
received the property and will be awarded costs and attorney's fees. 100

The DFS is required to make a determination on a claim within 90 days. 101 If a claim is determined in
favor of the claimant, the DFS must deliver or pay over to the claimant the property or the amount the
DFS actually received or the proceeds, if it has been sold by the DFS. 102 All proceeds from unclaimed
property are deposited by the DFS into the Unclaimed Property Trust Fund. 103 The DFS is allowed to
retain up to $15 million to make prompt payment on verified claims and to cover costs incurred by the
DFS in administering and enforcing the Act. 104 All remaining funds must be deposited into the State
School Fund to be used for public education. 105

BBS. 717.117(1), F.S.
89 S. 717.1201, F.S.
90 Id.
91
S. 717.117 and 717.124, F.S.
92
S. 717.124, F.S.
93 FL TreasureHunt.gov, https://www.fltreasurehunt.gov/ (last visited Jan. 24, 2020).
94
S. 717.1243, F.S.
95 fd.
96 fd.
97 "Testate" means "(h]aving left a will at death." BLACK'S LAw DICTIONARY 1514 (8th ed. 2004).
98
S. 717.1243, F.S.
99 fd.
100 S. 717.1243, F.S.
101 S. 717.124(1), F.S.
102 S. 717.124, F.S.
103 S. 717.123, F.S.
104 /d.
105 /d.
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Filing and Disclosure of Death Certificates in Florida

The Florida Vital Statistics Act directs the Department of Health (DOH), to establish the Bureau of Vital
Statistics (Bureau) 106 under the direction of a state registrar for the uniform and efficient registration,
compilation, storage, and preservation of all vital records 107 in this state. 108 The DOH is also
responsible for establishing registration districts throughout the state and appointing a local registrar of
vital statistics for each registration district.

A certificate for each death or fetal death that occurs in Florida must be filed within 5 days after such
death and prior to the final disposition of the dead body or fetus. 109 Final disposition means the burial,
interment, cremation, removal from the state, or other authorized disposition of a dead body or fetus. 110
The registration of the death certificate may be submitted via the DOH's electronic death registration
system to the Bureau on a form prescribed by the DOH, or to the local registrar of the district in which
the death occurred.

The DOH must provide a certified copy of all or part of a death or fetal death certificate, excluding any
portions that are confidential and exempt from public disclosure, to any person requesting it upon
receipt of a request and payment of the prescribed fee. 111 All information relating to cause of death in
all death and fetal death records is confidential and exempt from public disclosure. 112 Additionally,
social security numbers are confidential and exempt from public disclosure. 113 However, 50 years after
the date of death, the portions of a certificate of death which were exempt from public disclosure lose
such protection, though the social security number information remains confidential and exempt. 114 A
certification of the death or fetal death certificate which includes the confidential portions, such as
cause of death and social security number, may be issued only: 115
• To the decedent's spouse or parent;
• To the decedent's child, grandchild, or sibling, if of legal age;
• To any person who provides an executed will, insurance policy, or other document that
demonstrates his or her interest in the estate of the decedent;
• To any person who provides documentation that he or she is acting on behalf of any of the
above-named persons;
• To any agency of the state or local government or the United States for official purposes upon
approval of the DOH; or
• Upon order of any court of competent jurisdiction.

Effect of the Bill

The bill amends s. 655.059, F.S., to correct the citation to the Gramm-Leach-Bliley Act and to provide
another exception to the general rule that a financial institution's books and records relating to deposit
accounts must be kept confidential by the financial institution. The new exception states that a financial
institution is not prohibited from disclosing the existence of and amounts on deposit in any qualified
account of a decedent pursuant to s. 655.795, F.S., and providing a copy of any affidavit delivered to
the financial institution pursuant thereto, to a person authorized to receive such information under s.
655.795, F.S.

106
Although the statute refers to an Office of Vital Statistics, it has been established as the Bureau of Vital Statistics within DOH.
107
A vital record is defined as certificates or reports of birth, death, fetal death, marriage, dissolution of marriage, certain name
changes, and data related thereto. S. 382.001 (17), F.S.
108
S. 382.003, F.S.
109
S. 382.008, F.S.
110
S. 382.002(9), F.S.
111
S. 382.025(2)(a), F.S.
112
S. 382.008(6), F.S.
113 S. 119.071(5)(a)5., F.S.
114
Id.; s. 382.025(2)(b), F.S.
11 s S. 382.025(2)(a), F.S.

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The bill creates s. 655.795, F.S., to authorize certain family members of a decedent to present a sworn
affidavit to a financial institution in this state and receive up to $10,000 from "qualified accounts",
defined as depository accounts or certificates of deposit held in the sole name of the decedent without
a pay-on-death or any other survivor designation. The bill does not require a court proceeding, order, or
judgment in order for the family member to receive the funds. Family members authorized to present
the sworn affidavit to the financial institution are as follows:
• The surviving spouse of the decedent;
• An adult child of the decedent if the decedent left no surviving spouse;
• An adult descendant of the decedent if the decedent left no surviving spouse and no surviving
adult child; or
• A parent of the decedent if the decedent left no surviving spouse, no surviving adult child, and
no surviving adult descendant.

The financial institution may pay the funds to the authorized family member if the total amount of the
combined funds in all qualified accounts at that financial institution do not exceed an aggregate of
$10,000 and if at least two years have passed since the decedent's death.

In order to receive the funds, the authorized family member must provide the financial institution with a
certified copy of the decedent's death certificate and a sworn affidavit that includes all of the following:
• A statement attesting that the affiant is the surviving spouse, adult child, adult descendant, or
parent of the decedent.
o If the affiant is an adult child of the decedent, the affidavit must attest that the decedent
left no surviving spouse.
o If the affiant is an adult descendant of the decedent, the affidavit must attest that the
decedent left no surviving spouse and no surviving adult child.
o If the affiant is a parent of the decedent, the affidavit must attest that the decedent left no
surviving spouse, no surviving adult child, and no surviving adult descendant.
• The date of death and the address of the decedent's last residence.
• A statement attesting that the total amount in all qualified accounts held by the decedent in all
financial institutions known to the affiant does not exceed an aggregate total of $10,000.
• A statement acknowledging that a personal representative has not been appointed to administer
the decedent's estate and attesting that no probate proceeding or summary administration
procedure has been commenced with respect to the estate.
• A statement attesting that the affiant has been provided with and has read the provisions of s.
655.795, F.S., which identify each of the family members of the decedent116 and attesting that
notarized letters of all of the family members of the decedent other than the affiant consenting to
the affiant's funds withdrawal are attached. The natural parent or guardian of any person who is
a minor may give consent on behalf of such person.
• A statement acknowledging that the affiant has no knowledge of the existence of any last will
and testament or other document or agreement relating to the distribution of the decedent's
estate.
• A statement acknowledging that the payment of the funds constitutes a full release and
discharge of the financial institution's obligation regarding the amount paid.
• A statement acknowledging that the affiant understands that he or she is personally liable to the
persons rightfully entitled to the funds under the Florida Probate Code, to the extent the amount
paid exceeds the amount properly attributable to the affiant's share.

116 The bill defines "family members of the decedent" to mean:

1. The surviving spouse of the decedent;
2. If the decedent left one or more eligible children: the surviving spouse of the decedent, the surviving eligible children, and the
surviving descendants of any deceased eligible child;
3. If the decedent left no surviving spouse: the surviving children of the decedent and the surviving descendants of any deceased
child of the decedent; or
4. If the decedent left no surviving spouse, no surviving child, and no surviving descendant: the surviving parents of the
decedent.
The term "eligible child" means a child of the decedent who is not also the child of the surviving spouse of the decedent.
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• A statement acknowledging that the affiant understands that making a false statement in the
affidavit may be punishable as a criminal offense.

The bill provides the substance of the sworn affidavit that would satisfy the bill's requirements. The
financial institution must maintain a copy or an image of the affidavit for seven years after releasing the
funds. If a family member of the decedent requests a copy of the affidavit during such time, the financial
institution may provide a copy of the affidavit to the requesting family member of the decedent.

The financial institution is not required to determine whether the contents of the sworn affidavit are
truthful. The payment of the funds by the financial institution to the affiant constitutes the financial
institution's full release and discharge regarding the amount paid. A person does not have a right or
cause of action against the financial institution for taking an action, or for failing to take an action, in
connection with the affidavit or the payment of the funds.

The authorized family member who withdraws the funds is personally liable to any person rightfully
entitled to the funds under the Florida Probate Code, to the extent the amount paid exceeds the
amount properly attributable to the authorized family member's share.

In addition to any other penalty provided by law, a person who knowingly makes a false statement in a
sworn affidavit given to a financial institution to receive a decedent's funds under this section commits
theft, punishable as provided ins. 812.014.

Upon presentation of a decedent's death certificate to a financial institution not less than two years after
the decedent's death, the financial institution may release information on the existence of and amounts
contained in any qualified account of the decedent at the financial institution to the following persons:
• A surviving spouse who presents a copy of a marriage certificate evidencing the spouse's
marriage to the decedent; or
• An adult child of the decedent who presents a copy of a birth certificate evidencing that the
decedent is the parent of the adult child.

The bill takes effect July 1, 2020.

B. SECTION DIRECTORY:
Section 1. Amends s. 655.059, F.S., relating to access to books and records; confidentiality; penalty
for disclosure.

Section 2. Creates s. 655.795, F.S., relating to payment to surviving successor without court
proceeding.

Section 3. Provides an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

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B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The impact on the private sector is indeterminate. The affidavit process created by the bill may prevent
families from incurring court costs and attorney fees to probate the decedent's estate in order to obtain
the funds prior to the funds being given to the state as unclaimed property after five years. However,
the authorized family member who withdraws the funds is personally liable to any person rightfully
entitled to the funds under the Florida Probate Code, to the extent the amount paid exceeds the
amount properly attributable to the authorized family member's share. A decedent's family may still
incur court costs and attorney fees following the withdraw of funds if there is subsequent disagreement
or confusion as to how much each family member is owed or if the person who withdrew funds does
not remit money to those rightfully entitled to the funds. Additionally, unlike in the summary
administration process or the unclaimed property process, an heir or devisee rightfully owed money
that he or she did not receive after funds were withdrawn from the financial institution will not be
awarded attorney's fees and costs in an action to enforce the claim. 117

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill does not require attestation that the value of the decedent's entire estate is under $10,000.
Therefore, it is possible that the funds which a financial institution can release pursuant to the bill may
be part of a larger probate estate that is otherwise subject to formal or summary administration
proceedings under the Florida Probate Code.

117 Any heir or devisee of the decedent who was lawfully entitled to share in the estate but who was not included in an order of

summary administration and distribution is entitled to receive reasonable attorney's fees and costs if they prevail in an action to enforce
their claim. S. 735.206(4)(9), F.S. Similarly, the process for a beneficiary to receive up to $10,000 by filing an unclaimed property
affidavit provides that any heir or devisee of the owner, who was lawfully entitled to share in the property but did not receive his or her
share of the property, may enforce his or her rights in appropriate proceedings against those who received the property and will be
awarded costs and attorney's fees. S. 717.1243, F.S.
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The bill's prioritization of individuals defined as an "authorized family member'' and "family members of
the decedent" does not track the prioritization of the decedent's heirs as prescribed by the rules of
intestate succession found in part I of ch. 732, F.S.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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F L O R D A H O U S E 0 F R E P R E S E N T A T I V E S

HB 1439 2020

1 A bill to be entitled
2 An act relating to bank property of deceased account
3 holders; amending s. 655.059, F.S.; specifying that a
4 financial institution is not prohibited from
5 disclosing specified information and providing copies
6 of specified affidavits to certain persons relating to
7 deceased account holders; creating s. 655.795, F.S.;
8 providing definitions; authorizing a financial
9 institution to pay funds on deposit in certain
10 accounts to the authorized family member of a decedent
11 without any court proceeding, order, or judgment under
12 certain circumstances; requiring the authorized family
13 member to provide the financial institution a
14 certified copy of the decedent's death certificate and
15 a specified affidavit in order to receive the funds;
16 providing an affidavit form that the authorized family
17 member may use; providing that the financial
18 institution has no duty to make certain
19 determinations; specifying that a person does not have
20 a right or cause of action against a financial
21 institution for certain actions or for failing to take
22 certain actions; providing liability for authorized
23 family members; requiring a financial institution to
24 maintain a copy or image of the affidavit for a
25 specified time; authorizing the financial institution

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26 to provide copies of the affidavit to certain persons;
27 authorizing a financial institution to release certain
28 information on specified accounts under certain
29 circumstances; providing a criminal penalty; providing
30 an effective date.
31
32 Be It Enacted by the Legislature of the State of Florida:
33
34 Section 1. Paragraph (b) of subsection (2) of section
35 655.059, Florida Statutes, is amended to read:
36 655.059 Access to books and records; confidentiality;
37 penalty for disclosure.-
38 (2)

39 (b) The books and records pertaining to trust accounts and
40 the deposit accounts and loans of depositors, borrowers,
41 members, and stockholders of any financial institution shall be
42 kept confidential by the financial institution and its
43 directors, officers, and employees and may not be released
44 except upon express authorization of the account holder as to
45 her or his own accounts, loans, or voting rights. However,
46 information relating to any loan made by a financial institution
47 may be released without the borrower's authorization in a manner
48 prescribed by the board of directors for the purpose of meeting
49 the needs of commerce and for fair and accurate credit
50 information. Information may also be released, without the

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51 authorization of a member or depositor but in a manner
52 prescribed by the board of directors, to verify or corroborate
53 the existence or amount of a customer's or member's account when
54 such information is reasonably provided to meet the needs of
55 commerce and to ensure accurate credit information. In addition,
56 a financial institution, affiliate, and its subsidiaries, and
57 any holding company of the financial institution or subsidiary
58 of such holding company, may furnish to one another information
59 relating to their customers or members, subject to the
60 requirement that each corporation receiving information that is
61 confidential maintain the confidentiality of such information
62 and not provide or disclose such information to any unaffiliated
63 person or entity. Notwithstanding this paragraph, this
64 subsection does not prohibit:
65 1. A financial institution from disclosing financial
66 information as referenced in this subsection as authorized ey
67 Pub. L. No. 106 102 (1999), as set forth in 15 U.S.C. s. 6802
68 (2010) U.S.C.A. s. 6802, as amended.
69 2. The Florida office of the international banking
70 corporation or international trust entity from sharing books and
71 records under this subsection with the home-country supervisor
72 in accordance with subsection (1).
73 3. A financial institution from disclosing the existence
74 of and amounts on deposit in any qualified account of a decedent
75 pursuant to s. 655.795, and providing a copy of any affidavit

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76 delivered to the financial institution pursuant thereto, to a
77 person authorized to receive such information under s. 655.795.
78 Section 2. Section 655.795, Florida Statutes, is created
79 to read:
80 655.795 Payment to successor without court proceedings.-
81 (1) As used in this section, the term:
82 (a) "Authorized family member" means:
83 1. The surviving spouse of the decedent;
84 2. An adult child of the decedent if the decedent left no
85 surviving spouse;
86 3. An adult descendant of the decedent if the decedent
87 left no surviving spouse and no surviving adult child; or
88 4. A parent of the decedent if the decedent left no
89 surviving spouse, no surviving adult child, and no surviving
90 adult descendant.
91 (b) "Child" includes a minor and an adult child of a
92 person, unless the context clearly indicates otherwise.
93 (c) "Descendant" includes a minor and an adult descendant
94 of a person, unless the context clearly indicates otherwise.
95 (d) "Eligible child" means a child of the decedent who is
96 not also the child of the surviving spouse of the decedent.
97 (e) "Family members of the decedent" means:
98 1. The surviving spouse of the decedent;
99 2. If the decedent left one or more eligible children: the
100 surviving spouse of the decedent, the surviving eligible

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101 children, and the surviving descendants of any deceased eligible
102 child;
103 3. If the decedent left no surviving spouse: the surviving
104 children of the decedent and the surviving descendants of any
105 deceased child of the decedent; or
106 4. If the decedent left no surviving spouse, no surviving
107 child, and no surviving descendant: the surviving parents of the
108 decedent.
109 ( f) "Qualified account" means a depository account or
110 certificate of deposit held in the sole name of the decedent
111 without a pay-on-death or any other survivor designation.
112 (2) A financial institution in this state may pay to the
113 authorized family member of a decedent, without any court
114 proceeding, order, or judgment, the funds on deposit in all
115 qualified accounts of the decedent at the financial institution
116 if the total amount of the combined funds in the qualified
117 accounts at the financial institution do not exceed an aggregate
118 total of $10,000. The financial institution may not make such
119 payment earlier than 2 years after the date of the decedent's
120 death.
121 ( 3) In order to receive the funds described in subsection
122 (2), the authorized family member must provide the financial
123 institution with a certified copy of the decedent's death
124 certificate and a sworn affidavit that includes all of the
125 following:

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12 6 (a) A statement attesting that the affiant is the
127 surviving spouse, adult child, adult descendant, or parent of
128 the decedent.
129 1. If the affiant is an adult child of the decedent, the
130 affidavit must attest that the decedent left no surviving
131 spouse.
132 2. If the affiant is an adult descendant of the decedent,
133 the affidavit must attest that the decedent left no surviving
134 spouse and no surviving adult child.
135 3. If the affiant is a parent of the decedent, the
136 affidavit must attest that the decedent left no surviving
137 spouse, no surviving adult child, and no surviving adult
138 descendant.
139 (b) The date of death and the address of the decedent's
140 last residence.
141 (c) A statement attesting that the total amount in all
142 qualified accounts held by the decedent in all financial
143 institutions known to the affiant does not exceed an aggregate
144 total of $10,000.
145 (d) A statement acknowledging that a personal
146 representative has not been appointed to administer the
147 decedent's estate and attesting that no probate proceeding or
148 summary administration procedure has been commenced with respect
149 to the estate.
150 (e) A statement attesting that the affiant has been

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151 provided with and has read the provisions of this section which
152 identify each of the family members of the decedent and
153 attesting that notarized letters of all of the family members of
154 the decedent other than the affiant consenting to the affiant's
155 funds withdrawal are attached. The natural parent or guardian of
156 any person who is a minor may give consent on behalf of such
157 person.
158 (f) A statement acknowledging that the affiant has no
159 knowledge of the existence of any last will and testament or
160 other document or agreement relating to the distribution of the
161 decedent's estate.
162 (g) A statement acknowledging that the payment of the
163 funds constitutes a full release and discharge of the financial
164 institution's obligation regarding the amount paid.
165 (h) A statement acknowledging that the affiant understands
166 that he or she is personally liable to the persons rightfully
167 entitled to the funds under the Florida Probate Code, to the
168 extent the amount paid exceeds the amount properly attributable
169 to the affiant's share.
170 (i) A statement acknowledging that the affiant understands
171 that making a false statement in the affidavit may be punishable
172 as a criminal offense.
173 (4) The authorized family member may use an affidavit in
174 substantially the following form to fulfill the requirements of
175 subsection (3):

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HB 1439 2020

176
177 AFFIDAVIT UNDER SECTION 655.795, FLORIDA STATUTES, TO OBTAIN
178 BANK PROPERTY OF DECEASED ACCOUNT HOLDER: ... (Name of
179 decedent) ...
180 State of ... .
181 County of ... .
182
183 Before the undersigned authority personally appeared ... (name of
184 affiant) ... , of ... (residential address of affiant) ... , who has
185 been sworn and says the following statements are true:
186 (a) The affiant is (initial one of the following
187 responses):
188 The surviving spouse of the decedent.
189 A surviving adult child of the decedent, and the
190 decedent left no surviving spouse.
191 .... A surviving adult descendant of the decedent, and the
192 decedent left no surviving spouse and no surviving adult child.
193 .... A surviving parent of the decedent, and the decedent
194 left no surviving spouse, no surviving adult child, and no
195 surviving adult descendant.
196 (b) As shown in the certified death certificate, the date
197 of death of the decedent was ... (date of death) ... , and the
198 address of the decedent's last residence was ... (address of last
199 residence) ....
200 (c) The affiant is entitled to payment of the funds in the

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201 decedent's depository accounts and certificates of deposit held
202 by the financial institution ... (name of financial
203 institution) .... The total amount in all qualified accounts held
204 by the decedent in all financial institutions known to the
205 affiant does not exceed an aggregate total of $10,000. The
206 affiant requests full payment from the financial institution.
207 (d) A personal representative has not been appointed to
208 administer the decedent's estate, and no probate proceeding or
209 summary administration procedure has been commenced with respect
210 to the estate.
211 (e) The affiant has been provided with and has read the
212 provisions of s. 655.795, Florida Statutes, which identify each
213 of the family members of the decedent, and (initial one of the
214 following responses):
215 There are no family members of the decedent other than
216 the affiant.
217 The family members of the decedent are ... (identify by
218 name) .... Notarized letters from all of the family members of
219 the decedent other than the affiant consenting to the affiant's
220 funds withdrawal are attached.
221 (f) The affiant has no knowledge of any last will and
222 testament or other document or agreement relating to the
223 distribution of the decedent's estate.
224 (g) The payment of the funds constitutes a full release
225 and discharge of the financial institution regarding the amount

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226 paid.
227 (h) The affiant understands that he or she is personally
228 liable to the persons rightfully entitled to the funds under the
229 Florida Probate Code, to the extent the amount paid exceeds the
230 amount properly attributable to the affiant's share.
231 (i) The affiant understands that making a false statement
232 in this affidavit may be punishable as a criminal offense.
233
234 By ... (signature of Affiant) ...
235
236 Sworn to and subscribed before me this .... day of
237 .... by ... (name of Affiant) ... , who is personally
238 known to me or produced .... as identification, and
239 did take an oath.
240
241 ... (Signature of Notary Public - State of Florida) ...
242 ... (Print, Type, or Stamp Commissioned Name of Notary
243 Public) ...
244 My commission expires: ... (date of expiration of
245 commission) ...
246 (5) The financial institution is not required to determine
247 whether the contents of the sworn affidavit are truthful. The
248 payment of the funds by the financial institution to the affiant
249 constitutes the financial institution's full release and
250 discharge regarding the amount paid. A person does not have a

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251 right or cause of action against the financial institution for
252 taking an action, or for failing to take an action, in
253 connection with the affidavit or the payment of the funds.
254 (6) The authorized family member who withdraws the funds
255 under this section is personally liable to any person rightfully
256 entitled to the funds under the Florida Probate Code, to the
257 extent the amount paid exceeds the amount properly attributable
258 to the authorized family member's share.
259 (7) The financial institution shall maintain a copy or an
260 image of the affidavit for 7 years after releasing the funds. If
261 a family member of the decedent requests a copy of the affidavit
262 during such time, the financial institution may provide a copy
2 63 of the affidavit to the requesting family member of the
264 decedent.
265 ( 8) Upon presentation of a decedent's death certificate to
266 a financial institution not less than 2 years after the date of
267 death of the decedent, the financial institution may release
268 information on the existence of and amounts contained in any
269 qualified account of the decedent at the financial institution
270 to the following persons:
271 (a) A surviving spouse who presents a copy of a marriage
272 certificate evidencing the spouse's marriage to the decedent; or
273 (b) An adult child of the decedent who presents a copy of
274 a birth certificate evidencing that the decedent is the parent
275 of the adult child.

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276 (9) In addition to any other penalty provided by law, a
277 person who knowingly makes a false statement in a sworn
278 affidavit given to a financial institution to receive a
279 decedent's funds under this section commits theft, punishable as
280 provided in s. 812. 014.
281 Section 3. This act shall take effect July 1, 2020.

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HB 1439 by Yarborough
Bank Property of Deceased Account Holders

AMENDMENT SUMMARY
January 28, 2020

Amendment 1 by Rep. Yarborough (Strike-all): The amendment:
• Amends the process by which a family member of a decedent (deceased person) who
died intestate (without a will) may provide an affidavit to a financial institution in Florida
and receive funds from the decedent's qualified accounts at the financial institution.
Specifically, the amendment makes the following changes:
o Moves the statute from the financial institutions codes to the Florida Probate
Code.
o Lowers from $10,000 to $1,000 the aggregate amount of qualified accounts that
may be withdrawn from the financial institution.
o Allows the financial institution to pay the funds to the affiant after six months
rather than two years.
o Removes the requirement that the affiant provide notarized letters of other family
members consenting to the affiant's withdrawal of funds.
o Adding that the affiant is personally liable to creditors and other persons rightfully
entitled to the funds.
o Requiring the financial institution to retain a copy of the affidavit in accordance
with its customary retention policies rather than seven years.
• Creates a process by which a beneficiary of an intestate decedent may file an affidavit
with the court to request distribution of certain assets of the decedent. This process is
available if the intestate decedent left only personal property that is exempt from probate
proceedings, personal property that is constitutionally protected from creditors' claims,
and nonexempt personal property valued at less than the sum of $10,000 and certain
funeral and medical expenses. The decedent must have died more than one year prior
to the filing of the affidavit, and there must either be no Florida probate proceeding
pending or it must have been previously granted.
• Makes other technical changes.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1439HB 1439 (2020)
Amendment No. 1

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Yarborough offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Paragraph (b) of subsection (2) of section
8 655.059, Florida Statutes, is amended to read:
9 655.059 Access to books and records; confidentiality;
10 penalty for disclosure.-
11 (2)

12 (b) The books and records pertaining to trust accounts and
13 the deposit accounts and loans of depositors, borrowers,
14 members, and stockholders of any financial institution shall be
15 kept confidential by the financial institution and its
16 directors, officers, and employees and may not be released
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17 except upon express authorization of the account holder as to
18 her or his own accounts, loans, or voting rights. However,
19 information relating to any loan made by a financial institution
20 may be released without the borrower's authorization in a manner
21 prescribed by the board of directors for the purpose of meeting
22 the needs of commerce and for fair and accurate credit
23 information. Information may also be released, without the
24 authorization of a member or depositor but in a manner
25 prescribed by the board of directors, to verify or corroborate
26 the existence or amount of a customer's or member's account when
27 such information is reasonably provided to meet the needs of
28 commerce and to ensure accurate credit information. In addition,
29 a financial institution, affiliate, and its subsidiaries, and
30 any holding company of the financial institution or subsidiary
31 of such holding company, may furnish to one another information
32 relating to their customers or members, subject to the
33 requirement that each corporation receiving information that is
34 confidential maintain the confidentiality of such information
35 and not provide or disclose such information to any unaffiliated
36 person or entity. Notwithstanding this paragraph, this
37 subsection does not prohibit:
38 1. A financial institution from disclosing financial
39 information as referenced in this subsection as authorized by
40 Pub. L. No. 106 102 (1999), as set forth in 15 U.S.C. s. 6802
41 (2010) U.S.C.A. s. 6802, as amended.
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42 2. The Florida office of the international banking
43 corporation or international trust entity from sharing books and
44 records under this subsection with the home-country supervisor
45 in accordance with subsection (1).
46 3. A financial institution from disclosing the existence
47 of and amounts on deposit in any qualified account of a decedent
48 pursuant to s. 735.303 and from providing a copy of any
49 affidavit delivered to the financial institution pursuant
50 thereto, to a person authorized to receive such information
51 under s. 735.303.
52 Section 2. Section 735.303, Florida Statutes, is created
53 to read:
54 735.303 Payment to successor without court proceedings.-
55 (1) As used in this section, the term:
56 (a) "Family member" means:
57 1. The surviving spouse of the decedent;
58 2. An adult child of the decedent if the decedent left no
59 surviving spouse;
60 3. An adult descendant of the decedent if the decedent
61 left no surviving spouse and no surviving adult child; or
62 4. A parent of the decedent if the decedent left no
63 surviving spouse, no surviving adult child, and no surviving
64 adult descendant.
65 (b) "Qualified account" means a depository account or
66 certificate of deposit held by a financial institution in the

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67 sole name of the decedent without a pay-on-death or any other
68 survivor designation.
69 (2) A financial institution in this state may pay to the
70 family member of a decedent, without any court proceeding,
71 order, or judgment, the funds on deposit in all qualified
72 accounts of the decedent at the financial institution if the
73 total amount of the combined funds in the qualified accounts at
74 the financial institution do not exceed an aggregate total of
75 $1,000. The financial institution may not make such payment
76 earlier than 6 months after the date of the decedent's death.
77 (3) In order to receive the funds described in subsection
78 (2), the family member must provide the financial institution
79 with a certified copy of the decedent's death certificate and a
80 sworn affidavit that includes all of the following:
81 (a) A statement attesting that the affiant is the
82 surviving spouse, adult child, adult descendant, or parent of
83 the decedent.
84 1. If the affiant is an adult child of the decedent, the
85 affidavit must attest that the decedent left no surviving
86 spouse.
87 2. If the affiant is an adult descendant of the decedent,
88 the affidavit must attest that the decedent left no surviving
89 spouse and no surviving adult child.
90 3. If the affiant is a parent of the decedent, the
91 affidavit must attest that the decedent left no surviving

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92 spouse, no surviving adult child, and no surviving adult
93 descendant.
94 (b) The date of death and the address of the decedent's
95 last residence.
96 (c) A statement attesting that the total amount in all
97 qualified accounts held by the decedent in all financial
98 institutions known to the affiant does not exceed an aggregate
99 total of $1,000.
100 (d) A statement acknowledging that a personal
101 representative has not been appointed to administer the
102 decedent's estate and attesting that no probate proceeding or
103 summary administration procedure has been commenced with respect
104 to the estate.
105 (e) A statement acknowledging that the affiant has no
106 knowledge of the existence of any last will and testament or
107 other document or agreement relating to the distribution of the
108 decedent's estate.
109 (f) A statement acknowledging that the payment of the
110 funds constitutes a full release and discharge of the financial
111 institution's obligation regarding the amount paid.
112 (g) A statement acknowledging that the affiant understands
113 that he or she is personally liable to the creditors of the
114 decedent and other persons rightfully entitled to the funds
115 under the Florida Probate Code, to the extent the amount paid
116 exceeds the amount properly attributable to the affiant's share.
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117 (h) A statement acknowledging that the affiant understands
118 that making a false statement in the affidavit may be punishable
119 as a criminal offense.
120 (4) The family member may use an affidavit in
121 substantially the following form to fulfill the requirements of
122 subsection (3):
123
124 AFFIDAVIT UNDER SECTION 735.303, FLORIDA STATUTES, TO OBTAIN
125 BANK PROPERTY OF DECEASED ACCOUNT HOLDER: ... (Name of
126 decedent) ...
127 State of ....
128 County of ....
129
130 Before the undersigned authority personally appeared ... (name of
131 affiant) ... , of ... (residential address of affiant) ... , who has
132 been sworn and says the following statements are true:
133 (a) The affiant is (initial one of the following
134 responses):
135 The surviving spouse of the decedent.
136 A surviving adult child of the decedent, and the
137 decedent left no surviving spouse.
138 .... A surviving adult descendant of the decedent, and the
139 decedent left no surviving spouse and no surviving adult child.

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140 .... A surviving parent of the decedent, and the decedent
141 left no surviving spouse, no surviving adult child, and no
142 surviving adult descendant.
143 (b) As shown in the certified death certificate, the date
144 of death of the decedent was ... (date of death) ... , and the
145 address of the decedent's last residence was ... (address of last
146 residence) ....
147 (c) The affiant is entitled to payment of the funds in the
148 decedent's depository accounts and certificates of deposit held
149 by the financial institution ... (name of financial
150 institution) .... The total amount in all qualified accounts held
151 by the decedent in all financial institutions known to the
152 affiant does not exceed an aggregate total of $1,000. The
153 affiant requests full payment from the financial institution.
154 (d) A personal representative has not been appointed to
155 administer the decedent's estate, and no probate proceeding or
156 summary administration procedure has been commenced with respect
157 to the estate.
158 (e) The affiant has no knowledge of any last will and
159 testament or other document or agreement relating to the
160 distribution of the decedent's estate.
161 (f) The payment of the funds constitutes a full release
162 and discharge of the financial institution regarding the amount
163 paid.

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164 (g) The affiant understands that he or she is personally
165 liable to the creditors of the decedent and other persons
166 rightfully entitled to the funds under the Florida Probate Code,
167 to the extent the amount paid exceeds the amount properly
168 attributable to the affiant's share.
169 (h) The affiant understands that making a false statement
170 in this affidavit may be punishable as a criminal offense.
171
172 By (signature of Affiant) ...
173
174 Sworn to and subscribed before me this .... day of
175 .... by ... (name of Affiant) ... , who is personally
176 known to me or produced .... as identification, and
177 did take an oath.
178
179 (Signature of Notary Public - State of Florida) ...
180 (Print, Type, or Stamp Commissioned Name of Notary
181 Public) ...
182 My commission expires: ... (date of expiration of
183 commission) ...
184 (5) The financial institution is not required to determine
185 whether the contents of the sworn affidavit are truthful. The
186 payment of the funds by the financial institution to the affiant
187 constitutes the financial institution's full release and
188 discharge regarding the amount paid. A person does not have a
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189 right or cause of action against the financial institution for
190 taking an action, or for failing to take an action, in
191 connection with the affidavit or the payment of the funds.
192 (6) The family member who withdraws the funds under this
193 section is personally liable to the creditors of the decedent
194 and any other person rightfully entitled to the funds under the
195 Florida Probate Code, to the extent the amount paid exceeds the
196 amount properly attributable to the family member's share.
197 (7) The financial institution shall maintain a copy or an
198 image of the affidavit in accordance with its customary
199 retention policies. If a surviving spouse or descendant of the
200 decedent requests a copy of the affidavit during such time, the
201 financial institution may provide a copy of the affidavit to the
202 requesting surviving spouse or descendant of the decedent.
203 (8) In addition to any other penalty provided by law, a
204 person who knowingly makes a false statement in a sworn
205 affidavit given to a financial institution to receive a
206 decedent's funds under this section commits theft, punishable as
207 provided ins. 812.014.
208 Section 3. Section 735.304, Florida Statutes, is created
209 to read:
210 735.304 Disposition without administration of intestate
211 property in small estates.-
212 (1} No administration shall be required or formal
213 proceedings instituted upon the estate of a decedent who has
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214 died intestate leaving only personal property exempt under the
215 provisions of s. 732.402, personal property exempt from the
216 claims of creditors under the Florida Constitution, and
217 nonexempt personal property the value of which does not exceed
218 the sum of $10,000 and the amount of preferred funeral expenses
219 and reasonable and necessary medical and hospital expenses of
220 the last 60 days of the last illness, provided the decedent has
221 been deceased for more than 1 year and no administration of the
222 decedent's estate is pending in this state or has been
223 previously granted.
224 (2) Any heir at law of the decedent entitled to a share of
225 the intestate estate pursuant to s. 732.102 ors. 732.103 may by
226 affidavit request distribution of assets of the decedent through
227 informal application under this section. The affidavit must be
228 signed and verified by the surviving spouse, if any, and any
229 heirs at law, except that joinder in the affidavit is not
230 required of an heir who will receive a full intestate share
231 under the proposed distribution of the personal property. Before
232 the filing of the affidavit, the affiant must make a diligent
233 search and reasonable inquiry for any known or reasonably
234 ascertainable creditors, and the proposed distribution must make
235 provision for payment of those creditors to the extent that
236 assets are available or the creditors must consent to the
237 proposed distribution. The affidavit must be served in the
238 manner of formal notice upon all heirs at law who have not
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239 joined in the affidavit; upon all known or reasonably
240 ascertainable creditors of the decedent; and, if the decedent at
241 the time of death was over the age of 55 years of age, upon the
242 Agency for Health Care Administration.
243 (3) If the court is satisfied that subsection (1) is
244 applicable and the affidavit filed by the heir at law meets the
245 requirements of subsection (2), the court, by letter or other
246 writing under the seal of the court, may authorize the payment,
247 transfer, disposition, delivery, or assignment of the tangible
248 or intangible personal property to those persons entitled.
249 (a) Any individual, corporation, or other person paying,
250 transferring, delivering, or assigning personal property under
251 the authorization shall be forever discharged from liability
252 thereon.
253 (b) Bona fide purchasers for value from those to whom
254 personal property of the decedent has been paid, transferred,
255 delivered, or assigned shall take the property free of all
256 claims of creditors of the decedent and all rights of the
257 surviving spouse and all other beneficiaries or heirs at law of
258 the decedent.
259 (c) Personal property of the decedent that is not exempt
260 from claims of creditors and that remains in the possession of
261 those to whom it has been paid, delivered, transferred, or
262 assigned shall continue to be liable for claims against the
263 decedent until barred as provided in the Florida Probate Code.
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264 Any known or reasonably ascertainable creditor who did not
265 consent to the proposed distribution and for whom provision for
266 payment was not made may enforce the claim and, if the creditor
267 prevails, shall be awarded costs, including reasonable attorney
268 fees, against those who joined in the affidavit.
269 (d) Recipients of the decedent's personal property under
270 this section shall be personally liable for a pro rata share of
271 all lawful claims against the estate of the decedent, but only
272 to the extent of the value on the date of distribution of the
273 personal property actually received by each recipient, exclusive
274 of the property exempt from claims of creditors under the
275 constitution and statutes of Florida.
276 (e) Except as otherwise provided ins. 733.710, after 2
277 years from the death of the decedent, neither the decedent's
278 estate nor those to whom it may be distributed shall be liable
279 for any claim against the decedent, unless within that time
280 proceedings have been taken for the enforcement of the claim.
281 (f) Any heir or devisee of the decedent who was lawfully
282 entitled to share in the estate but who was not included in the
283 distribution under this section may enforce all rights in
284 appropriate proceedings against those who signed the affidavit
285 or received distribution of personal property and, if
286 successful, shall be awarded costs including reasonable attorney
287 fees as in chancery actions.
288 Section 4. This act shall take effect July 1, 2020.

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289
290
291 T I T L E A ME N D ME N T
292 Remove everything before the enacting clause and insert:
293 An act relating to bank property of deceased account
294 holders; amending s. 655.059, F.S.; specifying that a
295 financial institution is not prohibited from
296 disclosing specified information and providing copies
297 of specified affidavits to certain persons relating to
298 deceased account holders; creating s. 735.303, F.S.;
299 providing definitions; authorizing a financial
300 institution to pay funds on deposit in certain
301 accounts to a specified family member of a decedent
302 without any court proceeding, order, or judgment under
303 certain circumstances; requiring the family member to
304 provide the financial institution a certified copy of
305 the decedent's death certificate and a specified
306 affidavit in order to receive the funds; providing an
307 affidavit form that the family member may use;
308 providing that the financial institution has no duty
309 to make certain determinations; specifying that a
310 person does not have a right or cause of action
311 against a financial institution for certain actions or
312 for failing to take certain actions; providing
313 liability for the family member who withdraws funds;

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314 requiring a financial institution to maintain a copy
315 or image of the affidavit for a specified time;
316 authorizing the financial institution to provide
317 copies of the affidavit to certain persons; providing
318 a criminal penalty; creating s. 735.304, F.S.;
319 providing that specified types of personal property
320 are not subject to probate administration under
321 certain circumstances; providing that specified
322 persons may request distribution of a decedent's
323 assets by affidavit filed with a court under certain
324 circumstances; providing requirements for content of
325 the affidavit and service of the affidavit on
326 specified persons; requiring certain actions relating
327 to the decedent's creditors; authorizing the court to
328 approve the affidavit and payment of personal property
329 under certain circumstances; providing certain bona
330 fide purchasers protection from specified claims of
331 creditors; providing for liability against certain
332 personal property for a specified time; providing for
333 liability of recipients of the decedent's personal
334 property under certain circumstances; providing a
335 limitation on liability of the decedent's estate and
336 recipients of the estate under certain circumstances;
337 providing for the award of costs and reasonable

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338 attorney fees under certain circumstances; providing
339 an effective date.

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