Meeting Packet - Insurance & Banking Subcommittee (February 17, 2021)
Summary
Meeting packet for the Insurance & Banking Subcommittee meeting on Wednesday, February 17, 2021, at 10:00 AM. The agenda lists HB 425 Disposition of Unclaimed Property by Clemons, HB 467 Insurance Adjuster Examination Requirements by DuBose, and a Florida Hurricane Catastrophe Fund Update by Mary Linzee Branham. The staff analysis of HB 425 says the Department of Financial Services would adopt forms entitled Uniform Unclaimed Property Recovery Agreement and Uniform Unclaimed Property Purchase Agreement, with total fees and costs capped at no more than 25 percent of the claimed amount, and would raise the electronic claim threshold from $1,000 to $2,000. It states that the bill is effective upon becoming law. The packet ends with Florida Hurricane Catastrophe Fund presentation slides.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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Insurance & Banking Subcommittee
Wednesday, February 17, 2021
10:00 AM - 12:00 PM
Morris Hall (17 HOB)
Meeting Packet
Chris Sprowls Nick DiCeglie
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Chris Sprowls Nick DiCeglie
Speaker Chair
Meeting Agenda
Wednesday, February 17, 2021
10:00 AM – 12:00 PM
Morris Hall (17 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
• HB 425 Disposition of Unclaimed Property by Clemons
• HB 467 Insurance Adjuster Examination Requirements by DuBose
Florida Hurricane Catastrophe Fund Update
Mary Linzee Branham, Director of Legal and Risk Operations
V. Closing Remarks
VI. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
HB 425
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 425 Disposition of Unclaimed Property
SPONSOR(S): Clemons
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Fortenberry Luczynski
2) State Administration & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The Division of Unclaimed Property within the Florida Department of Financial Services (DFS) maintains a
database of unclaimed property in its possession. Claimants’ representatives are registered with DFS
(registrants) to gain access to the unclaimed property database and to seek authorizations from potential
claimants of unclaimed property to file claims on behalf of those claimants. Each registrant who files claims
utilizes a unique power of attorney through which claimants provide authorization to registrants to file a claim
on their behalf and to receive a fee for services. The lack of uniformity in the use of the powers of attorney
poses problems for consumers and DFS staff. Some registrants utilize powers of attorney that contain legal
phrases which may be confusing or problematic for claimants. The powers of attorney often also contain
irrevocable clauses and stipulations, allow the registrant to claim the property if the claimant fails to do so, or
permit the registrant to take legal action against the claimant if the claimant rescinds the power of attorney.
Florida law does not limit the fees and costs registrants may claim for recovering property for a claimant under
certain circumstances. If a claimant signs a Full Disclosure Statement prior to executing of a power of attorney,
a claimant’s representative may collect unlimited fees and costs for providing services related to the collection
of the unclaimed property. If the Full Disclosure Statement is not signed, the fees and costs are capped at 20
percent of the value of the property recovered, and not to exceed $1,000 per account owned by a natural
person and claimed in the recovery. DFS may presently allow a claimant of unclaimed property to electronically
submit a claim for unclaimed property if the amount of the claim is $1,000 or less.
The bill streamlines the unclaimed property claims law. Under the bill DFS will adopt forms by rule entitled
“Uniform Unclaimed Property Recovery Agreement” (Recovery Agreement) and “Uniform Unclaimed Property
Purchase Agreement” (Purchase Agreement). These will be the exclusive means of a registrant engaging a
claimant or seller to file an unclaimed property claim with DFS. The Agreements will be similar to the powers of
attorney used by many registrants, but will be more claimant-friendly and will provide consumer protections,
including a cap on fees and costs that registrants may charge claimants in all circumstances.
The bill specifies what must be contained in the Agreements, including specific information about the amounts
claimed or sold, the fees and costs received by the registrant, and identifying information for both the claimant
or seller and the registrant. The Agreements cap the total fees and costs, or the total discount amount in the
case of a purchase agreement, to no more than 25 percent of the claimed amount. If the total fees and costs
exceed 25 percent, the fee shall be reduced to 25 percent and the net balance remitted directly to the claimant
by DFS. Furthermore, the bill increases the value of property for which an apparent owner may submit an
electronic claim from $1,000 to $2,000.
The bill has no impact on state or local government revenues or expenditures. The bill may have a positive
economic benefit to consumers who have claims for unclaimed property and a negative economic impact on
registered claimants’ representatives.
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.
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
The Florida Department of Financial Services (DFS) is composed of 13 divisions and one independent
office, including the Division of Unclaimed Property. Chapter 717, F.S., provides a framework for the
rightful owners to obtain unclaimed property that is held by DFS. DFS maintains a database of
unclaimed property in its possession. More than 350 licensed 1 claimant’s representatives are
registered with DFS (registrants) to gain access to the unclaimed property database and to seek
authorizations from potential claimants of unclaimed property held by DFS to file claims on behalf of
those claimants. 2
Each registrant who files claims utilizes a unique power of attorney through which claimants provide
authorization to registrants to file a claim on their behalf and to receive a fee for services. 3 While each
power of attorney is different, most contain language similar to the following: “I hereby authorize ZYZ
Associates to file a claim on my behalf for the unclaimed property accounts listed and to receive the fee
I authorize.” 4 The lack of uniformity in the use of the powers of attorney poses problems for both
consumers and for DFS staff. DFS’s unclaimed property analysts are required to review and process all
documents for each claim, including the unique powers of attorney. 5
DFS has explained that, in addition to the language required in the powers of attorney, 6 some
registrants utilize powers of attorney that contain legal phrases such as “representation agreement,
assignment, assignment of interest, recovery agreement, or contract,” which may be confusing or
problematic for claimants. 7 The powers of attorney often also contain irrevocable clauses and
stipulations, including assignments of interests and rights, exclusivity provisions, venue and attorney
fees provisions. 8 Some powers of attorney provide that if the claimant fails to act, the registrant can
claim their ‘assigned property’ separate from the claimant. 9 Furthermore, some registrants will threaten
claimants with legal action if the claimants attempt to rescind a power of attorney and file the claims
themselves or hire another registrant who charges a lower fee for recovering the unclaimed property on
behalf of the claimant. 10
Section 717.135, F.S., contains different limits on the fees and costs that a registrant can recover for
obtaining unclaimed property for a claimant. Currently, if a Full Disclosure Statement, as described in
the law, has been provided to an unclaimed property claimant for signature prior to the execution of a
power of attorney, fees and costs collected by a claimant’s representative for providing services related
to the collection of the unclaimed property are unlimited. 11 If the Full Disclosure Statement has not
been provided to the claimant, then the fees and costs are capped at 20 percent of the value of the
property recovered, and not to exceed $1,000 per account owned by a natural person and claimed in
the recovery. 12
1
Pursuant to s. 717.124(1), F.S., only Florida-licensed attorneys, Florida-licensed certified public accountants, and or private
investigators licensed under ch. 493, F.S., may be registered as claimants’ representatives.
2 Florida Department of Financial Services, Agency Analysis of House Bill 425, p. 1 (Feb. 9, 2021).
3
Id.
4
Id.
5
Id.
6
See s. 717.135, F.S.
7
DFS, supra note 2, at 2.
8
Id.
9
Id.
10
Id.
11
S. 717.135, F.S. The text of the Full Disclosure Statement to be signed by a claimant is located in s. 717.135(3)(a), F.S.
12
Id.
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Additionally, DFS may presently allow a claimant of unclaimed property to electronically submit a claim
for unclaimed property if the amount of the claim is $1,000 or less. 13 According to DFS, approximately
15 percent of unclaimed property claims are made electronically. 14
Effect of the Bill
The bill changes the unclaimed property claims law to streamline the process for consumers. It
provides that DFS will adopt forms by rule entitled “Uniform Unclaimed Property Recovery Agreement”
(Recovery Agreement) and “Uniform Unclaimed Property Purchase Agreement” (Purchase
Agreement). 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 Agreements will be similar to the
powers of attorney used by many registrants, but will be more claimant-friendly and will provide
consumer protections, including a cap on fees and costs that registrants may charge claimants in all
circumstances.
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
• The total fees and costs, or the total discount amount in the case of a purchase agreement, may
not exceed 25 percent of the claimed amount. If the total fees and costs exceed 25 percent, the
fee shall be reduced to 25 percent and the net balance remitted directly by the department to
the claimant.
Replacing the current fees and costs structure with a 25 percent maximum cap for total fees and costs
will be more consumer friendly and easier for DFS unclaimed property analysts to review and apply.
The bill also increases the limit of the property value for which an electronic claim can be filed from
$1,000 to $2,000. The bill sets forth details about how an apparent owner, who is also the claimant, can
sign the Agreements electronically. Increasing the maximum amount of a claim allowed for electronic
filing from $1,000 to $2,000, will allow more claimants to file claims without the need to submit physical
paperwork. This will provide for quicker receipt of property by claimants and greater efficiency for DFS.
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,
13
S. 717.124(7), F.S.
14
DFS, supra note 2, at 2.
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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. 717.124, F.S., relating to unclaimed property claims.
Section 2. Amends s. 717.12404, F.S., relating to claims on behalf of a business entity or trust.
Section 3. Amends s. 717.1315, F.S., relating to retention of records by claimant’s representatives and
buyers of unclaimed property.
Section 4. Amends s. 717.1322, F.S., relating to administrative and civil enforcement.
Section 5. Amends s. 717.135, F.S., relating to power of attorney to recover reported property in the
custody of the department.
Section 6. Repeals s. 717.1351, F.S., relating to acquisition of unclaimed property.
Section 7. Provides an effective date of upon becoming law.
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:
The bill may have positive economic impacts for consumers. By streamlining the unclaimed property
claims process using new forms and by capping the fees and costs that a claimants’ representative can
charge, consumers may be able to keep a greater percentage of the unclaimed property that they
recover. The bill may have negative economic impacts for some registered claimant’s representatives
as they may receive a reduced percentage of a claimants’ property.
D. FISCAL COMMENTS:
None.
III. COMMENTS
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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:
The bill requires DFS to promulgate two new forms related to unclaimed property (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 to ch. 120, F.S., for all matters related to the
disposition of unclaimed property under ch. 717, 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 I D A H O U S E O F R E P R E S E N T A T I V E S
HB 425 2021
1 A bill to be entitled
2 An act relating to disposition of unclaimed property;
3 amending s. 717.124, F.S.; requiring specified
4 agreements for certain claims; removing provisions
5 requiring the Department of Financial Services to deny
6 certain unclaimed property claims; increasing the
7 threshold required to use of a different method of
8 identity verification for electronic claims;
9 conforming provisions to changes made by the act;
10 amending ss. 717.12404, 717.1315, and 717.1322, F.S.;
11 conforming provisions to changes made by the act;
12 amending s. 717.135, F.S.; requiring the department to
13 adopt forms for a Uniform Unclaimed Property Recovery
14 Agreement and a Uniform Unclaimed Property Purchase
15 Agreement; providing requirements for such agreements;
16 providing that the agreements are the exclusive means
17 for a claimant's representative to file a claim or to
18 recover fees and costs; prohibiting a claimant's
19 representative from using or distributing any other
20 form of agreement; providing administrative and civil
21 penalties; authorizing the department to pay
22 additional accounts under certain circumstances;
23 providing application; repealing s. 717.1351, F.S.,
24 relating to unclaimed property claims; providing an
25 effective date.
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26
27 Be It Enacted by the Legislature of the State of Florida:
28
29 Section 1. Subsection (1), paragraphs (b) and (c) of
30 subsection (4), and subsections (7) and (10) of section 717.124,
31 Florida Statutes, are amended to read:
32 717.124 Unclaimed property claims.—
33 (1) Any person, excluding another state, claiming an
34 interest in any property paid or delivered to the department
35 under this chapter may file with the department a claim on a
36 form prescribed by the department and verified by the claimant
37 or the claimant's representative. The claimant's representative
38 must be an attorney licensed to practice law in this state, a
39 licensed Florida-certified public accountant, or a private
40 investigator licensed under chapter 493. The claimant's
41 representative must be registered with the department under this
42 chapter. The claimant, or the claimant's representative, shall
43 provide the department with a legible copy of a valid driver
44 license of the claimant at the time the original claim form is
45 filed. If the claimant has not been issued a valid driver
46 license at the time the original claim form is filed, the
47 department shall be provided with a legible copy of a
48 photographic identification of the claimant issued by the United
49 States, a state or territory of the United States, a foreign
50 nation, or a political subdivision or agency thereof or other
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51 evidence deemed acceptable by the department by rule. In lieu of
52 photographic identification, a notarized sworn statement by the
53 claimant may be provided which affirms the claimant's identity
54 and states the claimant's full name and address. The claimant
55 must produce to the notary photographic identification of the
56 claimant issued by the United States, a state or territory of
57 the United States, a foreign nation, or a political subdivision
58 or agency thereof or other evidence deemed acceptable by the
59 department by rule. The notary shall indicate the notary's full
60 address on the notarized sworn statement. Any claim filed
61 without the required identification or the sworn statement with
62 the original claim form and the original Uniform Unclaimed
63 Property Recovery Agreement or Uniform Unclaimed Property
64 Purchase Agreement power of attorney or purchase agreement, if
65 applicable, is void.
66 (a) Within 90 days after receipt of a claim, the
67 department may return any claim that provides for the receipt of
68 fees and costs greater than that permitted under this chapter or
69 that contains any apparent errors or omissions. The department
70 may also request that the claimant or the claimant's
71 representative provide additional information. The department
72 shall retain a copy or electronic image of the claim.
73 (b) A claimant or the claimant's representative shall be
74 deemed to have withdrawn a claim is considered to have been
75 withdrawn by a claimant or the claimant's representative if no
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76 response to the department does not receive a response to its
77 department's request for additional information is received by
78 the department within 60 days after the notification of any
79 apparent errors or omissions.
80 (c) Within 90 days after receipt of the claim, or the
81 response of the claimant or the claimant's representative to the
82 department's request for additional information, whichever is
83 later, the department shall determine each claim. Such
84 determination shall contain a notice of rights provided by ss.
85 120.569 and 120.57. The 90-day period shall be extended by 60
86 days if the department has good cause to need additional time or
87 if the unclaimed property:
88 1. Is owned by a person who has been a debtor in
89 bankruptcy;
90 2. Was reported with an address outside of the United
91 States;
92 3. Is being claimed by a person outside of the United
93 States; or
94 4. Contains documents filed in support of the claim that
95 are not in the English language and have not been accompanied by
96 an English language translation.
97 (d) The department shall deny any claim under which the
98 claimant's representative has refused to authorize the
99 department to reduce the fees and costs to the maximum permitted
100 under this chapter.
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101 (4)
102 (b) If an owner authorizes an attorney licensed to
103 practice law in this state, a Florida-certified public
104 accountant, or a private investigator licensed under chapter
105 493, and registered with the department under this chapter, to
106 claim the unclaimed property on the owner's behalf, the
107 department is authorized to make distribution of the property or
108 money in accordance with the Uniform Unclaimed Property Recovery
109 Agreement or Uniform Unclaimed Property Purchase Agreement under
110 s. 717.135 such power of attorney. The original Uniform
111 Unclaimed Property Recovery Agreement or Uniform Unclaimed
112 Property Purchase Agreement power of attorney must be executed
113 by the claimant or seller owner and must be filed with the
114 department.
115 (c)1. Payments of approved claims for unclaimed cash
116 accounts must shall be made to the owner after deducting any
117 fees and costs authorized by the claimant under a Uniform
118 Unclaimed Property Recovery Agreement pursuant to a written
119 power of attorney. The contents of a safe-deposit box must shall
120 be delivered directly to the claimant notwithstanding any power
121 of attorney or agreement to the contrary.
122 2. Payments of fees and costs authorized under a Uniform
123 Unclaimed Property Recovery Agreement pursuant to a written
124 power of attorney for approved claims must shall be made or
125 issued to the law firm of the designated attorney licensed to
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126 practice law in this state, the public accountancy firm of the
127 licensed Florida-certified public accountant, or the designated
128 employing private investigative agency licensed by this state.
129 Such payments shall be made by electronic funds transfer and may
130 be made on such periodic schedule as the department may define
131 by rule, provided the payment intervals do not exceed 31 days.
132 Payment made to an attorney licensed in this state, a Florida-
133 certified public accountant, or a private investigator licensed
134 under chapter 493, operating individually or as a sole
135 practitioner, must shall be to the attorney, certified public
136 accountant, or private investigator.
137 (7) The department may allow an apparent owner to
138 electronically submit a claim for unclaimed property to the
139 department. If a claim is submitted electronically for $2,000
140 $1,000 or less, the department may use a method of identity
141 verification other than a copy of a valid driver license, other
142 government-issued photographic identification, or a sworn
143 notarized statement. The department may adopt rules to implement
144 this subsection.
145 (10) Notwithstanding any other provision of this chapter,
146 the department may develop a process by which a registered
147 claimant's representative or a buyer of unclaimed property may
148 electronically submit to the department an electronic image of a
149 completed claim and claims-related documents under pursuant to
150 this chapter, including a Uniform Unclaimed Property Recovery
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151 Agreement or Uniform Unclaimed Property Purchase Agreement
152 limited power of attorney or purchase agreement that has been
153 manually signed and dated by a claimant or seller under pursuant
154 to s. 717.135 or s. 717.1351, after the claimant's
155 representative or the buyer of unclaimed property receives the
156 original documents provided by the claimant or the seller for
157 any claim. Each claim filed by a registered claimant's
158 representative or a buyer of unclaimed property must include a
159 statement by the claimant's representative or the buyer of
160 unclaimed property attesting that all documents are true copies
161 of the original documents and that all original documents are
162 physically in the possession of the claimant's representative or
163 the buyer of unclaimed property. All original documents must be
164 kept in the original form, by claim number, under the secure
165 control of the claimant's representative or the buyer of
166 unclaimed property and must be available for inspection by the
167 department in accordance with s. 717.1315. The department may
168 adopt rules to implement this subsection.
169 Section 2. Subsection (2) of section 717.12404, Florida
170 Statutes, is amended to read:
171 717.12404 Claims on behalf of a business entity or trust.—
172 (2) Claims on behalf of a dissolved corporation, a
173 business entity other than an active corporation, or a trust
174 must include a legible copy of a valid driver license of the
175 person acting on behalf of the dissolved corporation, business
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176 entity other than an active corporation, or trust. If the person
177 has not been issued a valid driver license, the department shall
178 be provided with a legible copy of a photographic identification
179 of the person issued by the United States, a foreign nation, or
180 a political subdivision or agency thereof. In lieu of
181 photographic identification, a notarized sworn statement by the
182 person may be provided which affirms the person's identity and
183 states the person's full name and address. The person must
184 produce his or her photographic identification issued by the
185 United States, a state or territory of the United States, a
186 foreign nation, or a political subdivision or agency thereof or
187 other evidence deemed acceptable by the department by rule. The
188 notary shall indicate the notary's full address on the notarized
189 sworn statement. Any claim filed without the required
190 identification or the sworn statement with the original claim
191 form and the original Uniform Unclaimed Property Recovery
192 Agreement or Uniform Unclaimed Property Purchase Agreement power
193 of attorney, if applicable, is void.
194 Section 3. Subsection (1) of section 717.1315, Florida
195 Statutes, is amended to read:
196 717.1315 Retention of records by claimant's
197 representatives and buyers of unclaimed property.—
198 (1) Every claimant's representative and buyer of unclaimed
199 property shall keep and use in his or her business such books,
200 accounts, and records of the business conducted under this
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201 chapter to enable the department to determine whether such
202 person is complying with this chapter and the rules adopted by
203 the department under this chapter. Every claimant's
204 representative and buyer of unclaimed property shall preserve
205 such books, accounts, and records, including every Uniform
206 Unclaimed Property Recovery Agreement or Uniform Unclaimed
207 Property Purchase Agreement power of attorney or agreement
208 between the owner and such claimant's representative or buyer,
209 for at least 3 years after the date of the initial power of
210 attorney or agreement.
211 Section 4. Paragraph (j) of subsection (1) of section
212 717.1322, Florida Statutes, is amended to read:
213 717.1322 Administrative and civil enforcement.—
214 (1) The following acts are violations of this chapter and
215 constitute grounds for an administrative enforcement action by
216 the department in accordance with the requirements of chapter
217 120 and for civil enforcement by the department in a court of
218 competent jurisdiction:
219 (j) Requesting or receiving compensation for notifying a
220 person of his or her unclaimed property or assisting another
221 person in filing a claim for unclaimed property, unless the
222 person is an attorney licensed to practice law in this state, a
223 Florida-certified public accountant, or a private investigator
224 licensed under chapter 493, or entering into, or making a
225 solicitation to enter into, an agreement a power of attorney to
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226 file a claim for unclaimed property owned by another, or a
227 contract or agreement to purchase unclaimed property, unless
228 such person is registered with the department under pursuant to
229 this chapter and an attorney licensed to practice law in this
230 state in the regular practice of her or his profession, a
231 Florida-certified public accountant who is acting within the
232 scope of the practice of public accounting as defined in chapter
233 473, or a private investigator licensed under chapter 493. This
234 paragraph subsection does not apply to a person who has been
235 granted a durable power of attorney to convey and receive all of
236 the real and personal property of the owner, is the court-
237 appointed guardian of the owner, has been employed as an
238 attorney or qualified representative to contest the department's
239 denial of a claim, or has been employed as an attorney to
240 probate the estate of the owner or an heir or legatee of the
241 owner.
242 Section 5. Section 717.135, Florida Statutes, is amended
243 to read:
244 (Substantial rewording of section. See
245 s. 717.135, F.S., for present text.)
246 717.135 Recovery agreements and purchase agreements for
247 claims filed by a claimant's representative; fees and costs.—
248 (1) In order to protect the interests of owners of
249 unclaimed property, the department shall adopt by rule a form
250 entitled "Uniform Unclaimed Property Recovery Agreement" and a
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251 form entitled "Uniform Unclaimed Property Purchase Agreement."
252 (2) The Uniform Unclaimed Property Recovery Agreement and
253 the Uniform Unclaimed Property Purchase Agreement must include
254 and disclose all of the following:
255 (a) The total dollar amount of unclaimed property accounts
256 claimed or sold.
257 (b) The total percentage of all authorized fees and costs
258 to be paid to the claimant's representative or the percentage of
259 the value of the property to be paid as net gain to the
260 purchasing claimant's representative.
261 (c) The total dollar amount to be deducted and received
262 from the claimant as fees and costs by the claimant's
263 representative or the total net dollar amount to be received by
264 the purchasing claimant's representative.
265 (d) The net dollar amount to be received by the claimant
266 or the seller.
267 (e) For each account claimed, the unclaimed property
268 account number and name of the apparent owner, as listed in the
269 department's database. For agreements in which multiple accounts
270 bear identically listed apparent owner names in the department's
271 database, the identically listed name of that apparent owner may
272 be listed on the agreement one time for that identical name, but
273 the agreement must include all of the account numbers claimed
274 for that identically listed name of the apparent owner.
275 (f) For the Uniform Unclaimed Property Purchase Agreement,
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276 a statement that the amount of the purchase price will be
277 remitted to the seller by the purchaser within 30 days after the
278 execution of the agreement by the seller.
279 (g) The name, address, e-mail address, phone number, and
280 license number of the claimant's representative.
281 (h)1. The manual signature of the claimant or seller and
282 the date signed, affixed on the agreement by the claimant or
283 seller.
284 2. Notwithstanding any other provision of this chapter to
285 the contrary, the department may allow an apparent owner, who is
286 also the claimant, to sign the agreement electronically for
287 claims of $2,000 or less. All electronic signatures on the
288 Uniform Unclaimed Property Recovery Agreement and the Uniform
289 Unclaimed Property Purchase Agreement must be affixed on the
290 agreement by the claimant or seller using the specific,
291 exclusive eSignature product and protocol authorized by the
292 department.
293 (i) The social security number or taxpayer identification
294 number of the claimant or seller, if a number has been issued to
295 the claimant or seller.
296 (j) The total fees and costs, or the total discount in the
297 case of a purchase agreement, may not exceed 25 percent of the
298 claimed amount. If the total fees and costs exceeds 25 percent,
299 the fee shall be reduced to 25 percent and the net balance shall
300 be remitted directly by the department to the claimant.
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301 (3) When using a Uniform Unclaimed Property Purchase
302 Agreement, a seller must provide proof that he or she received
303 payment when the seller files a claim with the department. If
304 proof of payment is not provided, the claim is void.
305 (4) A claimant's representative must use the Uniform
306 Unclaimed Property Recovery Agreement or the Uniform Unclaimed
307 Property Purchase Agreement as the exclusive means of engaging
308 with a claimant or seller to file a claim with the department.
309 (5) Fees and costs may be owed or paid to, or received by,
310 a claimant's representative only after a filed claim has been
311 approved and if the claimant's representative used an agreement
312 authorized by this section.
313 (6) A claimant's representative may not use or distribute
314 any other agreement, form, or other media with respect to the
315 claimant or seller which relates, directly or indirectly, to
316 unclaimed property accounts held by the department or the Chief
317 Financial Officer other than the agreements authorized by this
318 section. Any engagement, authorization, recovery, or fee
319 agreement that is not authorized by this section is void. A
320 claimant's representative is subject to administrative and civil
321 enforcement under s. 717.1322 if he or she uses an agreement
322 that is not authorized by this section.
323 (7) The Uniform Unclaimed Property Recovery Agreement and
324 Uniform Unclaimed Property Purchase Agreement may not contain
325 language that makes the agreement irrevocable or that creates an
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326 assignment of any portion of unclaimed property held by the
327 department.
328 (8) When a claim is approved, the department may pay any
329 additional account that is owned by the claimant but has not
330 been claimed at the time of approval, provided that a subsequent
331 claim has not been filed or is not pending for the claimant at
332 the time of approval.
333 (9) This section does not supersede s. 717.1241.
334 Section 6. Section 717.1351, Florida Statutes, is
335 repealed.
336 Section 7. This act shall take effect upon becoming a law.
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INSURANCE & BANKING SUBCOMMITTEE
HB 425 by Rep. Clemons
Disposition of Unclaimed Property
AMENDMENT SUMMARY
February 17, 2021
Amendment 1 by Rep. Clemons (Line 301): The amendment clarifies that the registrant, not
the claimant who is selling an account of unclaimed property to the registrant, has to provide
proof that the registrant has made payment to the claimant (seller) when filing the claim with the
Department of Financial Services.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 425 (2021)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O 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
6 Remove lines 301-304 and insert:
7 (3) For a Uniform Unclaimed Property Purchase Agreement
8 form, proof that the seller has received payment must be filed
9 with the department along with the claim. If proof of payment is
10 not provided, the claim is void.
479313 - h0425-line301.docx
Published On: 2/16/2021 7:19:05 PM
Page 1 of 1
HB 467
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 467 Insurance Adjuster Examination Requirements
SPONSOR(S): DuBose
TIED BILLS: IDEN./SIM. BILLS: SB 534
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Rowley Luczynski
2) Commerce Committee
SUMMARY ANALYSIS
Current law generally requires passage of a written examination as part of the licensing process for
insurance adjusters. The examination requirement is waived for all-lines adjuster applicants who have
attained certain professional designations.
The bill provides an exemption to the all-lines adjuster licensing examination to individuals who possess an
Accredited Insurance Claims Specialist designation from Encore Claim Services.
The bill has no fiscal impact on state or local governments.
The bill has an effective date of July 1, 2021.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0467.IBS
DATE: 2/12/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
The Department of Financial Services, through its Division of Insurance Agent and Agency Services,
regulates the licensure of insurance adjusters. 1 An adjuster may be licensed as either an “all-lines
adjuster” or a “public adjuster.” 2 An all-lines adjuster “is a person who, for money, commission, or any
other thing of value, directly or indirectly undertakes on behalf of a public adjuster or an insurer to
ascertain and determine the amount of any claim, loss, or damage payable under an insurance contract
or undertakes to effect settlement of such claim, loss, or damage.” 3 Subject to certain exceptions, a
public adjuster is someone that is paid by an insured to prepare and file a claim against an insurer. 4
Among other requirements, an applicant for licensure as an all-lines adjuster must pass a written
examination. 5 The examination requirement is waived for applicants who have attained certain
professional designations. 6 Section 626.221(2)(j), F.S., exempts from examination applicants who have
the following designations:
• Accredited Claims Adjuster (ACA) from a regionally accredited postsecondary institution in
Florida;
• Associate in Claims (AIC) from the Insurance Institute of America;
• Professional Claims Adjuster (PCA) from the Professional Career Institute;
• Professional Property Insurance Adjuster (PPIA) from the HurriClaim Training Academy;
• Certified Adjuster (CA) from ALL LINES Training;
• Certified Claims Adjuster (CCA) from AE21 Incorporated;
• Claims Adjuster Certified Professional (CACP) from WebCE, Inc.; or
• Universal Claims Certification (UCC) from Claims and Litigation Management Alliance (CLM). 7
Effect of the Bill
The bill adds an exemption from the all-lines adjuster licensure examination for applicants who possess
an Accredited Insurance Claims Specialist (AICS) designation from Encore Claim Services.
B. SECTION DIRECTORY:
Section 1. Amends s. 626.221, F.S., relating to examination requirement; exemptions.
1 Division of Insurance Agent and Agency Services, https://myfloridacfo.com/Division/Agents/ (last visited Feb. 11, 2021).
2 S. 626.864, F.S. An individual may be licensed as either an all-lines adjuster or a public adjuster, but not both. An all-
lines adjuster may be appointed as one, but no more than one at a time, of the following: independent adjuster, public
adjuster apprentice, or company employee adjuster.
3 Ss. 626.015(2) and 626.8548, F.S.
4 S. 626.854, F.S. “A ‘public adjuster’ is any person, except a duly licensed attorney at law as exempted under s. 626.860,
who, for money, commission, or any other thing of value, directly or indirectly prepares, completes, or files an insurance
claim for an insured or third-party claimant or who, for money, commission, or any other thing of value, acts on behalf of,
or aids an insured or third-party claimant in negotiating for or effecting the settlement of a claim or claims for loss or
damage covered by an insurance contract or who advertises for employment as an adjuster of such claims. The term also
includes any person who, for money, commission, or any other thing of value, directly or indirectly solicits, investigates, or
adjusts such claims on behalf of a public adjuster, an insured, or a third-party claimant. The term does not include a
person who photographs or inventories damaged personal property or business personal property or a person performing
duties under another professional license, if such person does not otherwise solicit, adjust, investigate, or negotiate for or
attempt to effect the settlement of a claim.”
5 S. 626.221, F.S.
6 Id.
7 Id.
STORAGE NAME: h0467.IBS PAGE: 2
DATE: 2/12/2021
Section 2. Reenacts s. 626.8734, F.S., relating to nonresident all-lines adjuster license qualifications.
Section 3. Provides an effective date of July 1, 2021.
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:
The bill may reduce licensure fees for some applicants who have the AICS designation by eliminating
their need to pay the examination fee.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h0467.IBS PAGE: 3
DATE: 2/12/2021
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 467 2021
1 A bill to be entitled
2 An act relating to insurance adjuster examination
3 requirements; amending s. 626.221, F.S.; exempting
4 certain applicants for licensure as an all-lines
5 adjuster from a required examination; reenacting s.
6 626.8734(1)(b), F.S., relating to nonresident all-
7 lines adjuster license qualifications, to incorporate
8 the amendment made to s. 626.221, F.S., in a reference
9 thereto; providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Paragraph (j) of subsection (2) of section
14 626.221, Florida Statutes, is amended to read:
15 626.221 Examination requirement; exemptions.—
16 (2) However, an examination is not necessary for any of
17 the following:
18 (j) An applicant for license as an all-lines adjuster who
19 has the designation of Accredited Claims Adjuster (ACA) from a
20 regionally accredited postsecondary institution in this state,
21 Associate in Claims (AIC) from the Insurance Institute of
22 America, Professional Claims Adjuster (PCA) from the
23 Professional Career Institute, Professional Property Insurance
24 Adjuster (PPIA) from the HurriClaim Training Academy, Certified
25 Adjuster (CA) from ALL LINES Training, Certified Claims Adjuster
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26 (CCA) from AE21 Incorporated, Claims Adjuster Certified
27 Professional (CACP) from WebCE, Inc., Accredited Insurance
28 Claims Specialist (AICS) from Encore Claim Services, or
29 Universal Claims Certification (UCC) from Claims and Litigation
30 Management Alliance (CLM) whose curriculum has been approved by
31 the department and which includes comprehensive analysis of
32 basic property and casualty lines of insurance and testing at
33 least equal to that of standard department testing for the all-
34 lines adjuster license. The department shall adopt rules
35 establishing standards for the approval of curriculum.
36 Section 2. For the purpose of incorporating the amendment
37 made by this act to section 626.221, Florida Statutes, in a
38 reference thereto, paragraph (b) of subsection (1) of section
39 626.8734, Florida Statutes, is reenacted to read:
40 626.8734 Nonresident all-lines adjuster license
41 qualifications.—
42 (1) The department shall issue a license to an applicant
43 for a nonresident all-lines adjuster license upon determining
44 that the applicant has paid the applicable license fees required
45 under s. 624.501 and:
46 (b) Has passed to the satisfaction of the department a
47 written Florida all-lines adjuster examination of the scope
48 prescribed in s. 626.241(6); however, the requirement for the
49 examination does not apply to:
50 1. An applicant who is licensed as an all-lines adjuster
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51 in his or her home state if that state has entered into a
52 reciprocal agreement with the department;
53 2. An applicant who is licensed as a nonresident all-lines
54 adjuster in a state other than his or her home state and a
55 reciprocal agreement with the appropriate official of the state
56 of licensure has been entered into with the department; or
57 3. An applicant who holds a certification set forth in s.
58 626.221(2)(j).
59 Section 3. This act shall take effect July 1, 2021.
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Florida Hurricane
Catastrophe Fund
STATE BOARD OF ADMINISTRATION
FLORIDA HURRICANE
CATASTROPHE FUND
HOUSE INSURANCE AND BANKING SUBCOMMITTEE
FEBRUARY 17, 2021
Reasons for the Creation of the FHCF
Created following Hurricane Andrew to provide stability
and add capacity to the volatile residential property
insurance market
Legislature recognized that a viable and orderly insurance
market is critical for the long-term growth of Florida’s
economy
FHCF is critical to the health of the Florida economy both
before and after a catastrophic hurricane
Florida Hurricane Catastrophe Fund 2
Statutory Mission of the FHCF
The FHCF’s statutory mission is to provide a stable and ongoing
source of timely reimbursement to residential property
insurers for a portion of their catastrophic hurricane losses for
the purpose of protecting and advancing the state’s interest in
maintaining residential property insurance capacity.
Florida Hurricane Catastrophe Fund 3
FHCF Background
Provides coverage similar to private reinsurance
Structured as a tax-exempt trust fund
Intended to be self-supporting with annual premiums and
investment income
Debt rated as AA by all three rating agencies
Provides a stable and affordable source of coverage
Administered by the State Board of Administration (SBA)
Florida Hurricane Catastrophe Fund 4
How Does the FHCF Operate?
Mandatory participation for insurers writing residential property
insurance in Florida. Currently 157 participating insurers.
Provides hurricane coverage only (no Flood coverage).
An actuarially determined premium is collected from the
participants based on the exposure they submit to the FHCF.
This represents their proportionate share of residential risk
exposure in the State.
This premium determines their retention (like a deductible) and
the amount of their reimbursement which is also based on their
coverage selection.
Limited Liability equal to cash and the amount we are able to
bond (up to $17B statutory limit)
Florida Hurricane Catastrophe Fund 5
How Does the FHCF Operate?
If cash is insufficient to continue to pay claims, the FHCF
must issue revenue bonds which are repaid with emergency
assessments on a broad base of Florida policyholders.
No underwriting: The FHCF must provide coverage to each
eligible insurer on identical terms
No variation in rates
No variation in coverages (except to reflect the insurer’s
selected options)
Assures that each participant has its fair share of the
finite resources (capacity) available for reimbursement.
Florida Hurricane Catastrophe Fund 6
Key Principles that enable the FHCF to Fulfill
its Mission
The FHCF plays a key role in the Florida residential insurance
market. The mission and purpose is accomplished by being
sustainable for the long-term and the FHCF has been structured
and operated to:
1. Provide a stable, predictable level of reimbursement for all
residential property insurers at a stable,FIGApredictable
FIGA
price
Florida Insurance
2. Provide additional on-going insurance capacity
Florida
Guaranty Assoc. for the state
Insurance
Guaranty Assoc.
3. Provide sufficient coverage in the year after a major hurricane
and lessen the impact of market shocks
4. Accurately reflect financial market capabilities
5. Help build a stable and competitive residential property
insurance market for the long term
Florida Hurricane Catastrophe Fund 7
Key Principles that Enable the FHCF to Fulfill
its Mission
6. The FHCF should limit coverage to genuinely catastrophic
losses
7. Allow high probability, low-loss events that can easily be
handled by the private sector to remain exclusively with the
private sector
8. Be exempt from federal taxation
9. The FHCF should be market-neutral; that is, it should not
create competitive advantages or disadvantages for
individual insurers
Florida Hurricane Catastrophe Fund 8
Market Neutrality
Coverage is provided to all residential property insurers on the
same terms and prices
Insurer with limited capitalization can’t be denied coverage
and pays the same premium as a highly capitalized national
insurer
Each insurer receives its fair share of the FHCF’s finite
resources
Insurance company startups in Florida and Citizens
depopulation efforts potentially facilitated
Florida Hurricane Catastrophe Fund 9
Basic Funding Structure of the FHCF
Proceeds from Risk Transfer and from
Pre-Event and Post- Event Financing
Industry
Co-Payments FHCF Cash Balance
Industry Retention
Florida Hurricane Catastrophe Fund 10
Not Official
Not Drawn to Scale.
2021/2022 Contract Year (For Illustrative
Purposes Only)
Preliminary Estimates
$17B FHCF Capacity as of February 1, 2021
Ground Up Return Probability (Loss Adjustment Expense of 10% is included in the capacity)
Losses Time (%)
($B) (Years) Assumption: No loss in Contract Year 2020/2021
Ultimate Losses of $7.3B for Hurricane Irma in 2017 and $1.45B for Hurricane Michael in
$26.0 37.8 2.65% 2018
$1.59B – Post-Event Bonding $5.09B Potential
Post-Event
$24.3 34.7 2.88%
Bonding
$3.5B – Series 2020A Pre-Event Bonds
$2.5B Industry
$20.6 27.4 3.65%
$11.91B Cash
3.50B 2020A Bonds
Co-Payments
$15.41B Total Resources
$11.91B Projected 2021
Year-End Fund Balance -$17.00B Statutory Limit
$1.59B Potential Bonding
Needed
$8.1 10.4 9.57%
Post-Event
Bonding Capacity
$8.08B Projected Industry Retention October 2020
$8.7B
• Represents industry losses. FHCF probabilities are lower at the top loss levels and higher at the lower loss levels. All insurers would need to reach
their maximum coverage limit in order to exhaust the last billion of FHCF Coverage. Insurers can trigger coverage below the industry retention.
• Individual company retentions are their share of the industry retention. Florida Hurricane Catastrophe Fund 11
Two Types of FHCF Debt
Post-event debt
Issued following a hurricane event that exhausts the cash balance
Tax-exempt or taxable bonds may be used
Primary source of revenue to repay the bonds: assessments on most
property/casualty premiums
Used to reimburse insurers for paid losses
$2.651 billion issued to date
Pre-event debt
Issued before a hurricane event
Taxable bonds only
Primarily a source of liquidity to enable the FHCF to pay claims on a
timely and sufficient basis
$13.0 billion issued to date
Florida Hurricane Catastrophe Fund 12
FHCF HURRICANE LOSSES
Florida Hurricane Catastrophe Fund 13
Hurricane Irma – Current Status of Losses
Hurricane Irma Losses
(in $billions)
1/31/2021
$16.10
INDUSTRY $15.29
Ultimate Total Incurred
$13.07
Reported Total Incurred
Paid
$7.30
FHCF $6.70
$5.13
$0 $2 $4 $6 $8 $10 $12 $14 $16 $18
14
Florida Hurricane Catastrophe Fund 14
Hurricane Irma – Loss Development
15
Florida Hurricane Catastrophe Fund 15
Hurricane Michael – Current Status of Losses
Hurricane Michael Losses
(in $billions)
1/31/2021
$5.56
INDUSTRY $5.25
$4.64 Ultimate Total Incurred
Reported Total Incurred
Paid
$1.45
FHCF $1.31
$1.06
$0 $1 $2 $3 $4 $5 $6
16
Florida Hurricane Catastrophe Fund 16
Hurricane Michael – Loss Development
17
Florida Hurricane Catastrophe Fund 17
Importance of the FHCF
The Importance of the FHCF:
Created to provide market stability in the wake of
dislocations in the Florida economy caused by
Hurricane Andrew in 1992 and to help maintain
residential property insurance capacity
Fundamental Principles to accomplish our
mission:
The FHCF must provide a stable, predictable, and
ongoing level of reimbursement for all residential
property insurers at a stable and predictable price
Florida Hurricane Catastrophe Fund 18
Reliance on the FHCF
Insurers have come to rely on the FHCF to provide coverage
in extreme situations.
19
Florida Hurricane Catastrophe Fund 19
Contact Information
Gina Wilson – FHCF Acting Chief Operating Officer
Telephone: (850) 413-1340
E-mail: gina.wilson@sbafla.com
Mary Linzee Branham – FHCF Director of Legal and Risk
Operations
Telephone: (850) 413-1335
Email: marylinzee.branham@sbafla.com
Website: www.sbafla.com/fhcf
Florida Hurricane Catastrophe Fund 20
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