Meeting Packet — Florida House Insurance & Banking Subcommittee (March 21, 2023)
Summary
A meeting packet for the Insurance & Banking Subcommittee of the Commerce Committee of The Florida House of Representatives, chaired by Wyman Duggan, for Tuesday, March 21, 2023, 11:30 am to 1:30 pm. The agenda lists HB 487 Department of Financial Services by Salzman, HB 743 Estoppel Letters and HB 901 Secured Transactions by Fabricio, HB 1185 Consumer Protection by Giallombardo and HB 1575 by Brackett, plus proposed committee substitutes for HB 253 and HB 1111. The staff analysis of HB 487 summarizes changes to the Department of Financial Services, including electronic payments of salary and the DFS mediation program.
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Insurance & Banking Subcommittee
Tuesday, March 21, 2023
11:30 AM - 1:30 PM
Morris Hall (17 HOB)
Meeting Packet
Paul Renner Wyman Duggan
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Paul Renner Wyman Duggan
Speaker Chair
Meeting Agenda
Tuesday, March 21, 2023
11:30 am – 1:30 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 487 Department of Financial Services by Salzman
• HB 743 Estoppel Letters by Fabricio
• HB 901 Secured Transactions by Fabricio
• HB 1185 Consumer Protection by Giallombardo
• HB 1575 Public Safety Emergency Communications Systems by Brackett
Consideration of the following proposed committee substitute(s):
• PCS for HB 253 -- Regulation of Securities
• PCS for HB 1111 -- Value-added Insurance Products
V. Closing Remarks
VI. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
HB 487
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 487 Department of Financial Services
SPONSOR(S): Salzman
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Lloyd Lloyd
2) Appropriations Committee
3) Commerce Committee
SUMMARY ANALYSIS
The Chief Financial Officer (CFO) is an elected member of the Cabinet, serves as the state’s chief fiscal
officer,1 and is designated as the State Fire Marshal. The CFO is the head of the Department of Financial
Services (DFS). Changes made by the bill include:
Authorizing the Div. of Accounting and Auditing to issue electronic payments of salary without exception for
hardship; increase medical payment timeline from 35 days to 40 days;
Reducing the time an insurer may cancel a policy during the post-issuance underwriting period; requiring
insurers to bear certain costs and make certain elections prior to mediation of claims;
Authorizing the suspension of agent appointments by insurers for non-payment of costs;
Increasing the value of motor vehicle claims eligible for the DFS mediation program; making certain
procedural changes related to the DFS mediation program;
Reducing certain administrative obligations of title agents and agencies; changing certain continuing
education requirements; reducing barriers to licensing;
Expanding the circumstances when DFS can suspend, revoke, or refuse to renew or continue the licenses
and the types of criminal offenses that can disqualify an insurance agent licensee;
Allowing reciprocal non-resident licenses in certain circumstances; eliminating temporary bail bond licenses
and creating a means to convert to regular bail bond agent licenses; specifying the qualifications of a
primary bail bond agent;
Converting bail bond agency registration to licensure;
Improving processing of insolvent insurer estates;
Authorizing a State Fire Marshal direct support organization;
Allowing any governmental employee to participate in the Deferred Compensation Plan;
Ratifying the 2020 Workers’ Compensation Health Care Provider Reimbursement Manual; eliminating the
need for future Reimbursement Manual ratifications;
Creating term limits, ethical requirements, and other improvements to specified Boards; authorizing the
CFO to remove Board members in certain circumstances; allowing DFS to provide legal services to the
Boards;
Prohibiting certain practices in the issuance of collateral protection insurance;
Increasing the reserve requirement for warranty associations;
Requiring remission of bail bonds in certain circumstances.
The bill has an insignificant impact on state government revenues and expenditures and no impact on local
government. It has indeterminate impacts on the private sector. Except as specified in the bill, it is effective
upon becoming law.
1 Art. IV, s. 4, Fla. Const.
This docum ent 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:
ORGANIZATION OF THE DEPARTMENT OF FINANCIAL SERVICES
The Chief Financial Officer (CFO) is an elected member of the Cabinet, serves as the state’s chief
fiscal officer,2 and is designated as the State Fire Marshal. The CFO is the head of the Department of
Financial Services (DFS). Effective January 2003, the Department of Insurance, Treasury, State Fire
Marshal, and the Department of Banking and Finance merged to form DFS. DFS consists of 13
divisions and several specialized offices.3 DFS is composed of the following divisions and independent
office:
Accounting and Auditing;
Consumer Services;
Funeral, Cemetery, and Consumer Services;
Insurance Agent and Agency Services;
Investigative and Forensic Services;4
Public Assistance Fraud;
Rehabilitation and Liquidation;
Risk Management;
State Fire Marshal;
Treasury;
Unclaimed Property;
Workers’ Compensation;
Administration; and the
Office of Insurance Consumer Advocate.
Division of Accounting and Auditing
The mission of the Division of Accounting and Auditing is to safeguard public assets, settle the state’s
financial obligations, report financial information, and improve accountability of the state. 5 The Division
includes the Bureau of Unclaimed Property and the Office of Fiscal Integrity. It is also empowered by
statute to “examine, audit, adjust, and settle the accounts of all the officers of this state, and any other
person in anywise entrusted with, or who may have received any property, funds, or moneys of this
state, or who may be in anywise indebted or accountable to this state for any property, funds, or
moneys, and require such officer or persons to render full accounts thereof, and to yield up such
property or funds according to law, or pay such moneys into the treasury of this state, or to such officer
or agent of the state as may be appointed to receive the same, and on failure so to do, to cause to be
instituted and prosecuted proceedings, criminal or civil, at law or in equity, against such persons,
according to law.”6 In executing this power, the Division has the authority to conduct investigations, as
necessary inside and outside of the state, and refer any suspected criminal conduct to the appropriate
law enforcement and prosecutorial agency.
Every state and local government entity provides its financial information to DFS annually, so DFS can
prepare annual financial statements for the state of Florida and provide an online clearinghouse for the
financial statements of every county, municipality, and special district in Florida. The Florida Open
Financial Statement System is open to public inspection. 7
2 Art. IV, s. 4, Fla. Const.
3 S. 20.121, F.S.
4 This division includes the Bureau of Forensic Services;Bureau of Fire, Arson, and Explosives Investigations; Office of
Fiscal Integrity; Bureau of Insurance Fraud; and Bureau of Workers’ Compensation Fraud.
5 FLORIDA DEPARTMENT OF FINANCIAL S ERVICES, Accounting & Auditing, http://www.myfloridacfo.com/Division/AA/ (last
visited Mar. 19, 2023).
6 S. 17.04, F.S.
7 S. 218.32(1)(h), F.S.
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Effect of the Bill
The bill makes the following changes within the purview of the Division of Accounting and Auditing:
For the purposes of direct deposit of paychecks, removes the authority for an employee to
request a paper paycheck due to a hardship.
For the purposes of a payment by a state agency or the judicial branch to a health care provider
or hospital, directly or indirectly, an additional five days is added to the prompt pay period;
changing it from 35 days to 40 days. This would mirror the generally applicable state prompt
pay law, which provides for a 40-day period.8
Adds county agencies, municipalities, and special districts 9 to those public entities that must
have adequate controls over tangible property.
Division of Consumer Services
The Division of Consumer Services deals with consumer issues and complaints related to the
jurisdiction of DFS and the Office of Insurance Regulation (OIR). The Division:
Receives inquiries and complaints from consumers;
Prepares and disseminates information as DFS deems appropriate to inform or assist consumers;
Provides direct assistance and advocacy for consumers; and
Reports potential violations of law or applicable rules by a person or entity licensed by DFS or
OIR to the appropriate division within DFS or OIR, as appropriate.10
FINANCIAL LITERACY FOR FOSTER YOUTH
Foster care transition plans must be developed during the year after a child reaches 16 years of age.
The transition plan must be developed by the child, with assistance from the Department of Children
and Families (DCF) and the community-based care provider, in collaboration with the caregiver and
any other individual the child would like to include. The transition plan is in addition to standard case
management requirements and must address specific options for the child to use in obtaining services,
including housing, health insurance, education, a driver license, and workforce support and
employment services.11
The transition plan also addresses financial literacy. It requires that DCF and the community-based
provider provide information for the financial literacy curriculum for foster youth offered by DFS.
Additionally, the financial literacy skills training available under aftercare services shall be the
curriculum offered by DFS.
Effect of the Bill
The bill:
Removes the requirement that DCF and the community-based care lead agency provide DFS
curriculum for youth in developing and updating the transition plan. DFS asserts that this is
duplicative to high school graduation requirements passed in 2022. 12
Reduces the time period in which a property and casualty insurer may cancel or terminate a
policy that has just gone into effect. It allows the insurer 60 days, rather than 90 days, to cancel
or terminate a policy for reasons other than non-payment. The required 20 days’ notice of such
cancellation or termination remains unchanged.
Prohibits a liability insurer from cancelling a motor vehicle property damage and bodily injury
policy solely on the basis that an insured is not cooperating with the insurer in an investigation,
8 S. 215.422(3), F.S.
9 As defined in s. 189.12, F.S.
10 S. 20.121(2)(h),F.S.
11 S. 39.6035(1), F.S.
12 See 2022 HB 1115, High School Graduation Requirements in Personal Finance. Ch. 2022-17, Laws of Fla. However,
this law does not affect youths not in high school, which may include certain foster children.
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unless the non-cooperation results in actual prejudice to the insurer. The insurer is required to
establish the prejudicial conduct of the insured by a preponderance of the evidence.
Mandates that a property insurer either make a claim determination or elect to repair under
applicable law prior to participating in mediation allowed by statute.
Allows DFS to suspend an insurer’s ability to appoint agents to represent the insurer if the
insurer does not pay required mediation fees timely.
Removes a requirement that DFS adopt rules governing qualifications, denials of application,
suspension, revocation of approval, and penalties applicable to mediators related to DFS
property insurance claim mediation program.
Expands eligibility for the DFS mediation program for motor vehicle personal injury claims from
those under $10,000 in value to those under $50,000 in value.
Provides that mediation costs must be reasonable, that the insurer bears all such costs, but
requires the policyholder must pay the costs of rescheduling mediations in certain
circumstances. If an insurer representative attends a mediation, but lacks authority to settle the
claim, the insurer is deemed to have not appeared, in which case the insurer must pay the
insured’s actual costs of attendance and the cost of rescheduling the mediation, including DFS’
costs. If the per-mediation-event administrative fee is not paid timely, the mediation
administrator may request that DFS suspend the insurer’s ability to appoint agents to represent
the insurer.
Removes mediation-related tolling of time to file a lawsuit on the disputed claim.
Deletes a requirement that the policy include details on requirements for filing of first-party
claims mediation.
Repeals mediation program requirements, including:
o That the mediation must be a formal process;
o Mediators be randomly selected, with options and process to handle rejections of the
selected mediator; and,
o Equal sharing of costs.
Division of Insurance Agent and Agency Services
The DFS Division of Insurance Agent and Agency Services is responsible for the licensing and
regulation of insurance agents, adjusters, insurance agencies, as well as related personnel and
business entities.13
No person may be, act as, or advertise, or hold himself/herself out to be an insurance agent, insurance
adjuster, or customer representative unless he or she is currently licensed by DFS and appointed by an
appropriate appointing entity or person.14 There are several types of insurance representatives. These
include:
General lines agents,
Life insurance agents,
Health insurance agents,
Title insurance agents,
Personal lines agents, and
Unaffiliated insurance agents.15
General Lines Agent
A general lines agent16 is one who sells the following lines of insurance: property; 17 casualty,18 including
commercial liability insurance underwritten by a risk retention group, a commercial self-insurance
13 Ch. 626, parts I, II, III, IV, V, VI, VIII, IX, and XIII, F.S.
14 S. 626.112, F.S.
15 S. 626.015, F.S.
16 S. 626.015(5), F.S.
17 S. 624.604, F.S.
18 S. 624.605, F.S.
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fund,19 or a workers’ compensation self-insurance fund;20 surety;21 health;22 and, marine.23 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.24
Title Agents and Agencies
Title insurance insures owners of real property (owner’s policy) or others having an interest in real
property, as well as lenders (mortgagee policies) against loss by encumbrance, defective title,
invalidity, or adverse claim to title. It is a policy issued by a title insurer that, after evaluating a search of
title, insures against a number of covered risks, including title defects or liens that are not identified as
exceptions. In Florida, title insurers operate on a monoline basis, meaning that the insurer can only
transact title insurance and cannot transact any other type of insurance. 25
Bail Bond Agents
Currently, a person may not act as a bail bond agent or temporary bail bond agent unless qualified,
licensed, and appointed.26 A person also may not represent himself or herself to be a bail enforcement
agent, bounty hunter, or other similar title, and a person, other than a certified law enforcement officer,
may not apprehend, detain, or arrest a principal on a bond unless qualified, licensed, and appointed. 27
Effect of the Bill
The bill makes the following changes related to agents and agencies:
Generally –
Removes the requirement that applicants be fingerprinted at a designated examination center;
but, retains the remaining fingerprinting options that include a law enforcement agency or other
DFS-approved entity.
Relieves title insurance, life insurance, and annuity insurance agents and agencies from the
requirement that they notice all active policyholders of an office closure that is more than 30
days because the related policies are not continually serviced by the agent or agency.
Clarifies that a licensee that possesses an advanced degree beyond a Bachelor’s degree is
eligible for a reduced continuing education requirement; six hours every two years, rather than
20 hours every two years, or other variations thereof depending on experience and credential.
Removes a prohibition on licensees holding a limited license in motor vehicle damage and
mechanical breakdown insurance, industrial fire insurance, burglary insurance, or credit
insurance from holding multiple licenses.
Expands the type of criminal background that allows DFS to suspend, revoke, or refuse to
renew or continue the license or appointment of a licensee to include a misdemeanor related to
the financial services business, this is in addition to any felony or crime punishable by one year
or more in prison.
Allows DFS to suspend, revoke, or refuse to renew or continue the license or appointment of a
licensee who has lost their resident license in another state.
Permits DFS to suspend, revoke, or refuse to renew or continue the license or appointment of a
title agent or agency that:
19 As defined in s. 624.462, F.S.
20 Pursuant to s. 624.4621, F.S.
21 S. 626.606, F.S.
22 Ss. 624.603 and 627.6482, F.S.
23 S. 624.607, F.S.
24 S. 626.829, F.S.
25 S. 627.786, F.S.
26 S. 648.30(1), F.S.
27 S. 648.30(2) and (3), F.S.
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o Misappropriates, converts, or unlawfully withholds funds related to an escrow
agreement, real estate sales contract, or settlement of a real estate transaction; or
o Is the subject of an adverse action against a license or similar credential in another
state, a court of competent jurisdiction, or federal agency, or similar.
Reduces a reinsurance intermediary credential from a license to an appointment and removes
the $50 application and license fee for a reinsurance intermediary; such intermediaries are
otherwise licensed as another type of insurance licensee.
Allows DFS to cancel an insurer’s ability to appoint agents when an insurer fails to timely pay
the exchange of business fee that the insurer is beholden to pay for the agent and applicable to
reported agent production activity.
For the purposes of title agents and agencies;
o Defines the term “closing services” which is currently used in statute, but is not defined.
o Changes the authority to act as an escrow agent from the title agent to the title agency
and removes the obligation to invest the escrow funds consistent with the requirements
applicable to state investment of funds.
Broadens the qualifying continuing education courses that public adjusters may take from those
specially designed for public adjusters to any related to commercial and residential property and
casualty coverage, claim adjusting, and any other adjuster courses approved by DFS.
Allows DFS to deny the privileges of a temporary adjuster who has been lawfully appointed
during a catastrophe or emergency for any violation described in Ch. 626, F.S., rather than only
those in ss. 626.611 and 626.621, F.S.
Provides for expiration of a health insurance navigator’s registration if the navigator’s fails to
maintain a valid, active federal registration.
Allows for reciprocal licensing of warranty salespersons on a non-resident licensing basis and
for conversion of the license to a resident license in specified circumstances. Provision is also
made for discipline and removal of this license consistent with the means and methods
applicable to similar licenses. This applies the each of the warranty-related licenses: motor
vehicle service agreement companies, home warranty associations, and service warranty
associations.
Bail Bonds –
Eliminates the “temporary bail bond agent” license type; ends issuance of such licenses as of
January 1, 2024; and expires all such licenses as of June 30, 2025.
Removes authority to grant temporary licensure to the surviving spouse of a licensee to facilitate
transfer or wrap-up of the deceased’s bail bond operations.
Allows DFS to share complaint and investigatory information with other qualified law
enforcement or regulatory agencies.
Converts bail bond agency registration to licensure; requires all commensurate filings and
actions consistent with such licensure and other similar types of licensure.
Clarifies that bail bond agents and agencies must have insurer appointments to conduct
business.
Requires bail bond agencies to pay a fee; however, the referenced statute does not specify
such fee, the bill does not amend that statute to create the fee, and there is no associated fee
bill to create the fee.
Allows required classroom instruction to be conducted in in-person and virtual formats
consistent with the format allowed for other lines.
Establishes qualifications for designation as the primary bail bond agent of an agency, which
includes 24 months of experience as a bail bond agent immediately preceding the appointment.
Allows permissible in-jail advertising to include and email address and web address.
Prohibits all in-person or telephone contacts by bail bond agents or agencies between 9:00 pm
and 8:00 am, rather just those related to domestic violence cases.
Division of Rehabilitation and Liquidation
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Part I of ch. 631, F.S., relates to insurer insolvency and governs the receivership process for insurance
companies in Florida. Federal law specifies that insurance companies cannot file for bankruptcy.28
Instead, they are either "rehabilitated" or "liquidated" by the state. In Florida, the Division of
Rehabilitation and Liquidation of DFS is responsible for rehabilitating or liquidating insurance
companies.29 This process involves the initiation of a delinquency proceeding and the placement of an
insurer under the control of DFS as the Receiver. The typical causes of insurer insolvency include
undercapitalization, uncollectible or inflated assets, insufficient loss reserves for risks assumed,
fraudulent transactions, failure to monitor agents, and mismanagement by directors and/or officers. 30
Upon a determination by OIR that one or more grounds exist for the initiation of delinquency
proceedings and that such proceedings must be initiated, OIR must notify DFS of such determination
and must provide DFS with all necessary documentation and evidence.31 DFS subsequently initiates
delinquency proceedings by either applying to the appropriate court for an order directing such an
insurer to show cause why the proceedings should not be initiated or petitioning the court for the entry
of a consent order.32
Effect of the Bill
The bill:
Authorizes DFS as the Receiver to transfer estate property to a solvent insurer and share
records with a prospective assuming insurer to extent necessary to conduct due diligence in the
possible transfer of obligations.
Permits the Receivership Court to set a date requested by the Receiver for policy cancellation
as an earlier alternative to dates currently specified in statute.
Division of State Fire Marshal
Chapter 633, F.S., Fire Prevention and Control, designates the CFO as the State Fire Marshal (SFM).
The SFM, through the Division of the State Fire Marshal within DFS, is charged with enforcing the
provisions of ch. 633, F.S., and all other applicable laws relating to fire safety. 33 The SFM also has the
responsibility to minimize the loss of life and property due to fire. 34 Pursuant to this authority, the SFM
regulates, trains, and certifies fire service personnel and firesafety inspectors; investigates the causes
of fires; enforces arson laws; regulates the installation of fire equipment; conducts firesafety inspections
of state property; and operates the Florida State Fire College.
The State Fire Marshal has two bureaus:
The Bureau of Fire Prevention conducts safety inspections and reviews construction plans for
all state-owned buildings, regulates fireworks and the fire sprinkler industry, inspects and
licenses boilers, and certifies persons working in the fire suppression industry; and
The Bureau of Firefighter Standards and Training approves curricula and training at the Florida
State Fire College and certifies that fire service members meet industry standards. Persons may
be certified as a volunteer firefighter, firefighter, or administrator of a fire service provider (i.e.
fire chief, fire coordinator, fire director, or fire administrator).35
28 The Bankruptcy Code expressly provides that "a domestic insurance company" may not be the subject of a federal
bankruptcy proceeding. 11 U.S.C. § 109(b)(2). The exclusion of insurers from the federal bankruptcy court process is
consistent with federal policy generally allowing states to regulate the business of insurance. See 15 U.S.C. § 1012
(McCarran-Ferguson Act).
29 Typically, insurers are put into liquidation when the company is insolvent whereas insurers are put into rehabilitation for
numerous reasons, one of which is an unsound financial condition. The goal of rehabilitation is to return the insurer to a
sound financial condition. The goal of liquidation, however, is to dissolve the insurer. See s. 631.051, F.S., for the
grounds for rehabilitation and s. 631.061, F.S., for the grounds for liquidation.
30 Department of Financial Services, Agency Analysis of 2017 House Bill 837, p.2 (Feb. 20, 2017).
31 S. 631.031, F.S.
32 Id.
33 S. 633.104 F.S.
34 Id.
35 Department of Financial Services, Division of State Fire Marshal, What We Do, https://myfloridacfo.com/Division/SFM/
(last visited Mar. 19, 2023).
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Effect of the Bill
The bill authorizes the Division of State Fire Marshal to create a direct support organization to be
known as the “State Fire Marshal Safety and Training Force” to support the safety and training of
firefighters and recognize exemplary service.
Division of Treasury
The division keeps a record of the warrants and other orders of the CFO. 36 The division also pays
warrants and accounts for all state funds and securities. 37 Under current law, the Division of Treasury is
required to turn over all warrants paid by the division which were drawn by the CFO or the Comptroller,
to the Division of Accounting and Auditing.38 The general records schedule for state and local
government requires that warrants be maintained for a minimum of five fiscal years after the transaction
is completed.39
The CFO, with approval of the State Board of Administration, is required to establish a deferred
compensation plan for state employees under the “Government Employees’ Deferred Compensation
Act.” A deferred compensation plan is a retirement savings plan that allows eligible employees to
supplement any existing retirement and pension benefits by saving and investing before-tax dollars
through a tax-deferred voluntary salary contribution. The Deferred Compensation Plan is open to
employees of state agencies, State University System, State Board of Administration, and other
special district employers (subject to employer election). These various constituencies are delineated
in statute and represented by a member of the Deferred Compensation Advisory Council. The
Deferred Compensation Plan has been in operation for over 35 years and offers a reasonably priced
supplemental retirement savings program.
Effect of the Bill
The bill:
Allows a governmental employee of any governmental unit of the state to participate in the
Deferred Compensation Plan.
Expands the membership of the Deferred Compensation Advisory Council from seven
members to eight members. The additional member will be an executive branch appointee
made by the Chancellor of the Florida College System who must be an employee of the
system.
Division of Workers’ Compensation
Florida’s Workers’ Compensation Law 40 requires employers to provide injured employees all medically
necessary remedial treatment, care, and attendance for such period as the nature of the injury or the
process of recovery may require.41 The Department of Financial Services, Division of Workers’
Compensation (DFS), provides regulatory oversight of Florida’s workers’ compensation system,
including the workers’ compensation health care delivery system. The law specifies certain
reimbursement formulas and methodologies to compensate workers’ compensation health care
providers 42 that provide medical services to injured employees. Where a reimbursement amount or
methodology is not specifically included in statute, the Three-Member Panel is authorized to annually
adopt statewide schedules of maximum reimbursement allowances (MRAs) to provide uniform fee
36 Id.
37 Id.
38 S. 17.56, F.S.
39 Florida Department of State, General Records Schedule GS1-SL for State and Local Government Agencies, (2017).
40 Ch. 440, F.S.
41 S. 440.13(2)(a), F.S.
42 The term “health care provider” includes a physician or any recognized practitioner licensed to provide skilled services
pursuant to a prescription or under the supervision or direction of a physician. It also includes any hospital licensed under
chapter 395 and any health care institution licensed under chapter 400 or chapter 429. S. 440.13(1)(g), F.S.
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schedules for the reimbursement of various medical services. 43 DFS incorporates the MRAs approved
by the Three-Member Panel in reimbursement manuals 44 through the rulemaking process provided by
the Administrative Procedures Act.45
Medical Services
DWC is responsible for ensuring that employers provide medically necessary treatment, care, and
attendance for injured workers. Healthcare providers must receive authorization from the insurer before
providing treatment and submit treatment reports to the insurer. Insurers must reimburse healthcare
providers based on statewide schedules of maximum reimbursement allowances developed by the
DWC or an agreed-upon contract price. DWC mediates utilization and reimbursement disputes. 46
In 1980, the Legislature delegated authority over maximum reimbursement allowances to a Three-
Member-Panel which consists of the Insurance Commissioner (as a representative of the Chief
Financial Officer) and two others appointed by the Governor and subject to confirmation by the Senate.
Section 440.13(12)(a), F.S., states: “Annually, the three-member panel shall adopt schedules of
maximum reimbursement allowances for physicians, hospital inpatient care, hospital outpatient care,
ambulatory surgical centers, work-hardening programs, and pain programs.”
The Medical Services Section within the DWC provides administrative support to the panel, which is
statutorily charged with collecting data to evaluate the adequacy of the fee schedule, surveying
healthcare providers to determine the availability and accessibility of healthcare, and surveying carriers
to determine the impact of changes to the reimbursement schedule. 47 According to DWC, medical costs
represent 67 percent of all workers’ compensation costs in Florida.
Maximum reimbursements approved by the Three-Member Panel must be based on the following
statutory requirements:
For inpatient treatment, hospitals must be reimbursed 75 percent of the usual and customary
charges;48
For schedule surgeries, hospitals must be reimbursed 60 percent of the charges; 49
For physicians, reimbursement is 110 percent of the reimbursement allowed by Medicare for an
office visit and 140 percent of the reimbursement allowed by Medicare for a surgical
procedure.50
For prescription medications, reimbursement is the wholesale price plus a $4.18 dispensing fee;
but for repackaged or relabeled prescription medications, reimbursement is 112.5 percent of the
average wholesale price plus an $8 dispensing fee. 51
Healthcare providers cannot recover fees that are higher than those outlined in the schedule. This
applies to treatment, care, and attendance provided by any hospital or other healthcare provider,
ambulatory surgical center, work-hardening program, or pain program.52 Florida courts have enforced
fee schedule limits against healthcare providers who sought higher fees for their services. 53
The law requires reimbursement to medical providers at either the agreed-upon contract price or the
maximum reimbursement allowed in the appropriate schedule.
43 S. 440.13(12), F.S.
44 Ss. 440.13(12) and (13), F.S., and Ch. 69L-7, F.A.C.
45 Ch. 120, F.S.
46 S. 440.13, F.S.
47 S. 440.13(12)(e), F.S.
48 S. 440.13(12)(a), F.S.
49 S. 440.13(12)(b), F.S.
50 Id.
51 S. 440.13(12)(c), F.S
52 S. 440.13(12)(d), F.S.
53 Sun Bank /South Florida, N.A. v. Bak er, 632 So. 2d 669 (Fla. 4th DCA 1994), cause dismissed, 639 So. 2d 982 (Fla.
1994); citing, Easter Elevator Co. v. Hedman, 290 So. 2d 56, 58 (Fla. 1974).
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The Three-Member Panel adopts the schedules as an independent entity, but DWC relies on the
schedules when rendering determinations in reimbursement disputes between healthcare providers
and insurance carriers,54 and when adopting fee schedules for services rendered by medical
providers.55 As a result, DWC adopts the maximum reimbursement schedules through rulemaking, and,
when the cost of a schedule exceeds $1 million in the aggregate within a five-year period, the adopted
rule is subject to legislative ratification.
The Administrative Procedures Act requires a statement of regulatory cost that includes an economic
analysis showing whether the rule directly or indirectly:
1. Is likely to have an adverse impact on economic growth, private sector job
creation or employment, or private sector investment in excess of $1 million in
the aggregate within 5 years after the implementation of the rule;
2. Is likely to have an adverse impact on business competitiveness, including the
ability of persons doing business in the state to compete with persons doing
business in other states or domestic markets, productivity, or innovation in
excess of $1 million in the aggregate within 5 years after the implementation of
the rule; or
3. Is likely to increase regulatory costs, including any transactional costs, in excess
of $1 million in the aggregate within 5 years after the implementation of the rule. 56
The law provides three exemptions to the ratification requirement. Legislative ratification does not apply
to triennial updates of the Florida Building Code and Florida Fire Prevention Code, which are expressly
authorized by statute, or when a state agency adopts federal standards or rules that are needed to
receive federal funds or other benefits under federal law. 57
The Legislature ratified the 2016 manual for healthcare providers, which increased the overall cost of
the workers’ compensation system by 1.8 percent, or $64 million.58
The Legislature declined to ratify reimbursement manuals for:
Ambulatory surgical centers – the 2016 manual proposed an increase of 0.6 percent or $22
million; the 2017 manual proposed an increase of 1.1 percent or $40 million.59
Healthcare providers – the 2017 manual proposed an increase of 0.1 percent, or $4 million. 60
Hospitals – the 2016 and 2017 manuals proposed increases of 2.2 percent, or $80 million. 61
On October 22, 2020, DFS filed a rule adopting the 2020 Health Care Reimbursement Manual
approved by the Three-Member Panel setting a revised uniform schedule of MRAs for physicians and
other recognized practitioners.62 According to the National Council on Compensation Insurance, the
revisions to MRAs in the 2020 Edition will result in increased costs to the overall compensation system
of $8 million over the next five years, as of November 16, 2020.63
Effect of the Bill
54 S. 440.13(7), F.S.
55 S. 440.13(13), F.S.
56 S. 120.541(2)(a), F.S.
57 S. 120.541(4), F.S.
58 Three Member Panel, 2019 Biennial Report,
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=& ved=2ahUKE wjjgNuTnun9AhWlr4QIHY LrB ecQFn
oECA8QAQ&url=https%3A%2F%2Fwww.myfloridacfo.com%2Fdocs -sf% 2Fworkers-compensation-libraries%2Fworkers-
comp-documents%2Freports%2Fthree-member-panel%2F2019-biennial-
report.pdf%3Fsfvrsn%3Db3c08839_4& usg=AOvVaw20P 1pPOhVMVyfoJ2TFEMvc , at 18 (last visited Mar. 19, 2023).
59 Id.
60 Id.
61 Id.
62 Email from Austin Stowers, Legislative Affairs Director, Department of Financial Services, RE: . Department of Financial
Services Rule 69L-7.020, F.A.C. (Jan. 30, 2023).
63 The National Council on Compensation Insurance, Inc., Analysis of Florida Medial Fee Schedule Changes Proposed to
be Effective July 1, 2021 (Nov. 16, 2020).
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The bill:
Ratifies Rule 69L-7.020, F.A.C., allowing the rule to go into effect. The Rule incorporates by
reference the 2020 Edition of the Manual, which provides for reimbursement of health care
providers under the increased MRAs approved by the Three-Member Panel. The National
Council on Compensation Insurance estimates that this will produce a 0.2 percent increase in
workers’ compensation rates, as of November 16, 2020. This increase would likely be
incorporated into the next annual rate filing for OIR approval, to become effective January 1,
2024, which could be an overall increase or decrease in total rate, after considering the entirety
of the annual rate filing.
Removes the authority of the Three-Member Panel to adopt maximum reimbursement
allowances for individually licensed health care providers, work-hardening programs, pain
programs, and durable medical equipment providers. Rather, it requires DFS to post the
maximum reimbursement allowance for physician and non-hospital reimbursements on its
website by July 1st each year, to become effective the following January 1st . This seeks to
remove the health care provider reimbursements from rulemaking and the applicable legislative
rule ratification requirement for rules that increase private sector costs by more than $1 million
in the aggregate over five years.64
Repeals the statutory incorporation of an outdated medical practice and parameters
requirement.65
Miscellaneous
Effect of the Bill
The bill also makes the following changes:
Boards within the CFO’s Appointment Authority:
Florida Self-Insurers Guaranty Association, Inc. (Section 8)
Florida Insurance Guaranty Association (Section 41)
Florida Life and Health Insurance Guaranty Association (Section 42)
Florida Health Maintenance Organization Consumer Assistance Plan (Section 43)
Florida Workers’ Compensation Insurance Guaranty Association (Section 44)
Medical Malpractice Risk Apportionment Plan (Section 32)
Limits board members to eight consecutive years of service, they currently serve four-year
terms without a term limitation;
Allows the CFO to consider board appointment recommendations from persons with experience
in applicable subject matter, in addition to current recommendation sources;
Authorizes the CFO removal of board members based on misconduct, malfeasance,
misfeasance, or neglect of duty;
Subjects board members to the code of ethics under part III of ch. 112, F.S., with specifications
regarding application of the code to the board members;
Creates gift restrictions for board members;
Provides penalties for board member ethical and gift acceptance violations;
Creates a public records exemption for certain records;
Establishes board meeting notice requirements; and,
Authorizes DFS to provide legal services to any board or commission over which the CFO has
appointment authority, including authorizing the outsourcing of legal services to be paid from the
Insurance Regulatory Trust Fund.
DFS, Division of Investigative and Forensic Services (DIFS)
64 It is unclear if this provision
abrogates DFS’ obligation under Ch. 120, F.S., the Administrative Procedures Act, to adopt
policy and interpretations of statute via rulemaking.
65 S. 440.13(14), F.S., requires workers’ compensation medical practice parameters and protocols to adhere to the United
States Agency for Healthcare Research and Quality practice parameters and protocols in effect on January 1, 2003.
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Allows DIFS to initiate, not just conduct, investigations and specifies that such investigations
may cover any matter under the jurisdiction of the CFO, including the CFO’s role as State Fire
Marshal; and,
Expands DIFS authority to refer suspected criminal violations for prosecution to include criminal
violation of federal law, in addition to state law criminal violations.
Strategic Markets Research and Assessment Unit
Repeals the unit and its required quarterly report on the state of the financial services industry in
the state.66
Board of Accountancy
Requires the board to adopt rules for specific continuing education requirements related to
insurance for certified public accountants engaged in audits of insurers.
Insurer Annual Statements
Removes a limitation that prohibits an insurer from using the same accountant or partner of an
accounting firm to prepare its annual statement that is filed with OIR for more than five
consecutive years, but retains the limitation applicable to an accounting firm; and,
Removes the five-year waiting period before an accountant or partner can again be used for this
purpose.
Insurance Field Representatives (Agents)
Corrects the name of a referenced association to reflect their current name.
Continuing Education Requirements
Authorizes the Professional in Claims (PIC) designation from 2021 Training, LLC, to be
accepted for a permitted exemption from examination.
Health Insurance Notice and Disclosure Requirements
Limits required mental health-related notices and disclosures to those health insurers that offer
behavioral health insurance coverage.
Collateral Protection Insurance Practices
Prohibits an insurer or insurance agent from:
o Issuing collateral protection insurance on a property:
They or an affiliate own;
They or an affiliate perform the servicing; or
If the servicing right is owned by them or an affiliate.
o Compensating specified entities, including through commissions, on such a policy issued
by the insurer;
o Sharing premium or risk with such entities that obtained such insurance;
o Offering compensation based on profitability or loss ratios with affiliates;
o Making any payments, including expense reimbursement, to such entities for securing
insurance business or related services; or,
o Providing free or below-cost services to such entities or outsource its own services on an
above-cost bases to such entities.
Service Warranty Association Solvency and Surplus
Removes the requirement that a service warranty association’s debt obligation meet a specified
rating standard.
Increases the associations required minimum net worth of $100 million, rather than $10 million.
Continuing Care Retirement Communities
66 DFS asserts that this report is duplicative and out of date. Department of Financial Services, Agency Bill Analysis HB
487, p. 3 (Feb. 15, 2023).
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Repeals the Financial Services’ Commission’s rulemaking authority to establish alternative
dispute resolution procedures.
Court Remission or Forfeiture of Bail Bonds
Requires remission of the bail bond when the defendant dies or extradition is not pursued.
B. SECTION DIRECTORY:
Section 1: Amends s. 20.121, F.S., relating to Department of Financial Services.
Section 2: Amends s. 39.6035, F.S., relating to transition plan.
Section 3: Amends s. 110.113, F.S., relating to pay periods for state officers and employees;
salary payments by direct deposit.
Section 4: Amends s. 112.215, F.S., relating to government employees; deferred compensation
program.
Section 5: Amends s. 215.422, F.S., relating to payments, warrants, and invoices; processing time
limits; dispute resolution; agency or judicial branch compliance.
Section 6: Amends s. 274.01, F.S., relating to definitions.
Section 7: Amends s. 440.13, F.S., relating to medical services and supplies; penalty for
violations; limitations.
Section 8: Amends s. 440.385, F.S., relating to Florida Self-Insurers Guaranty Association,
Incorporated.
Section 9: Amends s. 473.312, F.S., relating to continuing education.
Section 10: Amends s. 624.424, F.S., relating to annual statement and other information.
Section 11: Amends s. 624.501, F.S., relating to filing, license, appointment, and miscellaneous
fees.
Section 12: Amends s. 626.015, F.S., relating to definitions.
Section 13: Amends s. 626.171, F.S., relating to application for license as an agent, customer
representative, adjuster, service representative, or reinsurance intermediary.
Section 14: Amends s. 626.173, F.S., relating to insurance agency closure; cancellation of licenses.
Section 15: Amends s. 626.221, F.S., relating to examination requirement; exemptions.
Section 16: Amends s. 626.2815, F.S., relating to continuing education requirements.
Section 17: Amends s. 626.321, F.S., relating to limited licenses and registration.
Section 18: Amends s. 626.611, F.S., relating to grounds for compulsory refusal, suspension, or
revocation of agent's, title agency's, adjuster's, customer representative's, service
representative's, or managing general agent's license or appointment.
Section 19: 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 20: Amends s. 626.7492, F.S., relating to reinsurance intermediaries.
Section 21: Amends s. 626.752, F.S., relating to exchange of business.
Section 22: Amends s. 626.793, F.S., relating to excess or rejected business.
Section 23: Amends s. 626.837, F.S., relating to excess or rejected business.
Section 24: Amends s. 626.841, F.S., relating to definitions.
Section 25: Amends s. 626.8411, F.S., relating to application of Florida Insurance Code provisions
to title insurance agents or agencies.
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Section 26: Amends s. 626.8437, F.S., relating to grounds for denial, suspension, revocation, or
refusal to renew license or appointment.
Section 27: Amends s. 626.844, F.S., relating to grounds for discretionary refusal, suspension, or
revocation of license or appointment.
Section 28: Amends s. 626.8473, F.S., relating to escrow; trust fund.
Section 29: Amends s. 626.854, F.S., relating to "public adjuster" defined; prohibitions.
Section 30: Amends s. 626.874, F.S., relating to catastrophe or emergency adjusters.
Section 31: Amends s. 626.9957, F.S., relating to conduct prohibited; denial, revocation, or
suspension of registration.
Section 32: Amends s. 627.351, F.S., relating to insurance risk apportionment plans.
Section 33: Amends s. 627.4133, F.S., relating to notice of cancellation, nonrenewal, or renewal
premium.
Section 34: Amends s. 627.4215, F.S., relating to disclosures to policyholders; coverage of
behavioral health care services.
Section 35: Amends s. 627.426, F.S., relating to claims administration.
Section 36: Amends s. 627.7015, F.S., relating to alternative procedure for resolution of disputed
property insurance claims.
Section 37: Creates s. 627.7155, F.S., relating to collateral protection property insurance; prohibited
practices.
Section 38: Amends s. 627.745 , F.S., relating to mediation of claims.
Section 39: Amends s. 631.141, F.S., relating to conduct of delinquency proceeding; domestic and
alien insurers.
Section 40: Amends s. 631.252, F.S., relating to continuation of coverage.
Section 41: Amends s. 631.56, F.S., relating to board of directors.
Section 42: Amends s. 631.716, F.S., relating to board of directors.
Section 43: Amends s. 631.816, F.S., relating to board of directors.
Section 44: Amends s. 631.912, F.S., relating to board of directors.
Section 45: Creates s. 633.1423, F.S., relating to State Fire Marshal direct-support organization.
Section 46: Amends s. 634.171, F.S., relating to salesperson to be licensed and appointed.
Section 47: Amends s. 634.181, F.S., relating to grounds for compulsory refusal, suspension, or
revocation of license or appointment of salespersons.
Section 48: Amends s. 634.191, F.S., relating to grounds for discretionary refusal, suspension, or
revocation of license or appointment of salespersons.
Section 49: Amends s. 634.320, F.S., relating to grounds for compulsory refusal, suspension, or
revocation of license or appointment of sales representatives.
Section 50: Amends s. 634.321, F.S., relating to grounds for discretionary refusal, suspension, or
revocation of license or appointment of sales representatives.
Section 51: Amends s. 634.401, F.S., relating to definitions.
Section 52: Amends s. 634.406, F.S., relating to financial requirements.
Section 53: Amends s. 634.422, F.S., relating to grounds for compulsory refusal, suspension, or
revocation of license or appointment of sales representatives.
Section 54: Amends s. 634.423, F.S., relating to grounds for discretionary refusal, suspension, or
revocation of license or appointment of sales representatives.
Section 55: Amends s. 648.25, F.S., relating to definitions.
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Section 56: Amends s. 648.26, F.S., relating to Department of Financial Services; administration.
Section 57: Amends s. 648.27, F.S., relating to licenses and appointments; general.
Section 58: Amends s. 648.285, F.S., relating to bond agency; ownership requirements.
Section 59: Amends s. 648.30, F.S., relating to licensure and appointment required; prohibited acts;
penalties.
Section 60: Amends s. 648.31, F.S., relating to appointment taxes and fees.
Section 61: Amends s. 648.34, F.S., relating to bail bond agents; qualifications.
Section 62: Amends s. 648.355, F.S., relating to temporary limited license as Limited surety agent
or professional bail bond agent; qualifications pending examination.
Section 63: Amends s. 648.382, F.S., relating to appointment of bail bond agents and temporary
bail bond agents; effective date of appointment.
Section 64: Amends s. 648.386, F.S., relating to qualifications for prelicensing and continuing
education schools and instructors.
Section 65: Creates s. 648.3875, F.S., relating to primary bail bond agents; qualifications.
Section 66: Amends s. 648.39, F.S., relating to termination of appointment of managing general
agents, bail bond agents, and temporary bail bond agents.
Section 67: Repeals s. 648.41, F.S., relating to termination of appointment of temporary bail bond
agents.
Section 68: Amends s. 648.42, F.S., relating to registration of bail bond agents.
Section 69: Amends s. 648.44, F.S., relating to prohibitions; penalty.
Section 70: Amends s. 648.441, F.S., relating to furnishing supplies to unlicensed bail bond agent
prohibited; civil liability and penalty.
Section 71: Amends s. 648.50, F.S., relating to effect of suspension, revocation upon associated
licenses and licensees.
Section 72: Repeals s. 651.123, F.S., relating to alternative dispute resolution.
Section 73: Amends s. 843.021, F.S., relating to unlawful possession of a concealed handcuff key.
Section 74: Amends s. 903.28, F.S., relating to remission of forfeiture; conditions.
Section 75: Amends s. 28.2221, F.S., relating to Electronic access to official records.
Section 76: Amends s. 119.071, F.S., relating to general exemptions from inspection or copying of
public records.
Section 77: Amends s. 631.152, F.S., relating to conduct of delinquency proceeding; foreign
insurers.
Section 78: Amends s. 631.398, F.S., relating to prevention of insolvencies.
Section 79: Amends s. 903.09, F.S., relating to justification of sureties.
Section 80: Ratifies the Workers' Compensation Health Care Providers Reimbursement Manual
adopted under Rule 69L-7.020, F.A.C.
Section 81: Provides an effective date of upon becoming law.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill eliminates certain fees that may reduce revenues an indeterminate, but likely insignificant
amount.
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2. Expenditures:
The bill makes numerous changes that will require systems and process changes in DFS and other
agencies. The amount of the impact has not been estimated.67
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill requires warranty associations to have a reserve of $100 million, instead of $10 million. The bill
requires motor vehicle insurers bear the entire cost of mediation. It makes various other changes that
have an indeterminate, negative fiscal impact.
D. FISCAL COMMENTS:
None.
III. 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 expenditures 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:
The following sections of the bill present a single subject concern or violate separate bill
requirements of the Florida Constitution:
Section 2 – Department of Children and Families administration of foster child transition plans.
Section 5 – Prompt payment of medical bills by state agencies.
Sections 8, 32, and 41-44 – Public record exemptions and public meeting requirements
applicable to various boards.
Section 9 – Board of Accountancy continuing education requirements for certified public
accountants.
Section 10 – Limitations on insurer use of specified accountants for preparation of annual
statements.
Section 33 – Insurer terminations of coverage during the allowed underwriting period.
Section 34 – Insurer notice requirements related to behavior health services.
Section 35 – Insurer claims administration; limitation on cancellation for non-cooperation.
67 See note 66, supra, p. 11.
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Section 36 – 627.7015(2) not within DFS jurisdiction, also incorrect cross-reference.
Section 51 – Warranty association reserve requirements.
Section 60 – New bail bond agency fee.
Section 72 – Repeal of the Financial Services Commission rulemaking authority.
B. RULE-MAKING AUTHORITY:
The Department of Financial Services is provided rulemaking authority to implement provisions of the
bill.
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 487 2023
1 A bill to be entitled
2 An act relating to the Department of Financial
3 Services; amending s. 20.121, F.S.; revising duties of
4 the Division of Investigative and Forensic Services
5 within the Department of Financial Services;
6 authorizing the department to provide legal services
7 to certain boards and commissions; authorizing such
8 boards and commissions to retain independent legal
9 services under a specified circumstances; requiring
10 fees and costs of such independent legal services to
11 be paid from a specified trust fund; deleting
12 provisions relating to a specified unit within the
13 department; amending s. 39.6035, F.S.; deleting a
14 provision relating to the department's duty to provide
15 certain information for transition plans for children
16 with case plans prepared by the Department of Children
17 and Families; amending s. 110.113, F.S.; revising
18 circumstances under which persons appointed to state
19 government positions may request exemptions from the
20 direct deposit program; amending s. 112.215, F.S.;
21 defining the term "government employee" rather than
22 the term "employee"; specifying that the Chief
23 Financial Officer is required to establish state plans
24 of deferred compensation for government employees;
25 revising the membership of the Deferred Compensation
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26 Advisory Council; amending s. 215.422, F.S.; revising
27 the timeframe that payments to health care providers
28 must be made by state agencies or the judicial branch;
29 amending s. 274.01, F.S.; revising the definition of
30 the term "governmental unit"; amending s. 440.13,
31 F.S.; revising the list of health care providers for
32 the determination of statewide schedules of maximum
33 reimbursement allowance under workers' compensation;
34 deleting and revising provisions relating to maximum
35 reimbursement allowances for health care services;
36 deleting provisions relating to legislative intent;
37 requiring the department to notify carriers and self-
38 insurers of certain schedules of maximum reimbursement
39 allowances; providing construction; revising factors
40 that must be considered for the uniform schedule of
41 maximum reimbursement allowances; deleting provisions
42 relating to practice parameters and protocols for
43 medical services and supplies under workers'
44 compensation; amending s. 440.385, F.S.; limiting the
45 number of years that members may serve on the board of
46 directors of the Florida Self-Insurers Guaranty
47 Association, Incorporated; revising the process for
48 appointing members for the board; authorizing the
49 Chief Financial Officer to remove board members from
50 office for specified causes; providing that board
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51 members are subject to a specified code of ethics;
52 prohibiting board members from certain acts; providing
53 penalties; providing that board meetings are subject
54 to public meetings requirements; providing that
55 certain documents are open to the public; providing
56 exceptions; providing notice requirements for board
57 meetings; providing exceptions; amending s. 473.312,
58 F.S.; providing rulemaking authority relating to
59 continuing education requirements for license renewals
60 for specified Florida certified public accountants;
61 requiring the Board of Accountancy to approve certain
62 subjects for continuing education requirements for
63 such public accountants; amending s. 624.424, F.S.;
64 revising requirements relating to the use by insurers
65 of accountants and accounting firm partners
66 responsible for preparing specified reports; amending
67 s. 624.501, F.S.; deleting a provision relating to the
68 application filing and license fee for reinsurance
69 intermediaries; amending s. 626.015, F.S.; revising
70 the definition of the term "association"; amending s.
71 631.716, F.S.; amending s. 626.171, F.S.; deleting
72 provisions relating to designated examination centers
73 that provided fingerprints for certain license
74 applications; amending s. 626.173, F.S.; providing
75 nonapplicability of certain requirements in cases of
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76 insurance agency closure; amending s. 626.221, F.S.;
77 revising examination waivers for applicants for
78 insurance agent or adjuster licenses; amending s.
79 626.2815, F.S.; revising continuing education
80 requirements for certain licensees engaged in the
81 sales of insurance or adjustments of insurance claims;
82 amending s. 626.321, F.S.; deleting provisions
83 prohibiting individuals holding specified insurance
84 licenses from holding certain other insurance
85 licenses; deleting a requirement for requests for
86 duplicate licenses and for payments of a fee for
87 credit insurance licensees under certain
88 circumstances; amending s. 626.611, F.S.; providing
89 additional grounds for refusal, suspension, and
90 revocation of an agent's, title agency's, adjuster's,
91 customer representative's, service representative's,
92 and managing general agent's licenses and
93 appointments; amending s. 626.621, F.S.; providing
94 additional grounds for discretionary refusal,
95 suspension, and revocation of an agent's, adjuster's,
96 customer representative's, service representative's,
97 and managing general agent's licenses and
98 appointments; amending s. 626.7492, F.S.; revising the
99 definition of the terms "producer" and "reinsurance
100 intermediary manager"; revising circumstances under
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101 which persons are prohibited from acting as
102 reinsurance intermediary brokers or reinsurance
103 intermediary managers; providing that specified
104 requirements apply to reinsurance intermediary
105 appointments rather than licenses; deleting the
106 Department of Financial Services' authority to refuse
107 to issue reinsurance intermediary licenses under
108 certain circumstances; deleting exemptions for
109 reinsurance intermediaries from certain requirements;
110 deleting reinsurance intermediary license fees;
111 conforming a provision to changes made by the act;
112 amending ss. 626.752, 626.793, and 626.837, F.S.;
113 requiring the department to cancel exchanges of
114 business appointment if fees for agents are not paid
115 by insurers within a specified timeframe under certain
116 circumstances; amending s. 626.841, F.S.; defining the
117 term "closing services"; amending s. 626.8411, F.S.;
118 providing that notice to policyholders of agency
119 closure does not apply to title insurance agents and
120 agencies; amending s. 626.8437, F.S.; providing
121 additional grounds for denial, suspension, revocation,
122 and refusal to renew or continue licenses and
123 appointments of title insurance agents and agencies;
124 amending s. 626.844, F.S.; providing additional
125 grounds for discretionary refusal, suspension, and
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126 revocation of a title insurance agent's and agency's
127 licenses and appointments; amending s. 626.8473, F.S.;
128 providing circumstances under which title insurance
129 agencies may engage in business as escrow agents as to
130 certain funds; deleting provisions relating to title
131 insurance agents; providing disposition of funds
132 received by title insurance agencies and funds
133 required to be maintained in escrow trust accounts;
134 requiring separate records of specified receipts and
135 disbursements of escrow, settlement, and closing
136 funds; providing penalties; amending s. 626.854, F.S.;
137 exempting appointed public adjusters from certain
138 insurance activities' prohibitions; amending s.
139 626.874, F.S.; revising requirements for the
140 department to issue catastrophe and emergency adjuster
141 licenses; revising circumstances under which the
142 department may deny certain adjuster privileges;
143 amending s. 626.9957, F.S.; requiring navigators'
144 registrations to expire under certain circumstances;
145 prohibiting navigators with expired registrations from
146 being granted subsequent registrations; amending s.
147 627.351, F.S.; revising the process for selecting
148 members for the board of governors of the Joint
149 Underwriting Association; providing terms; limiting
150 the number of years that members may serve on the
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151 board; providing for vacancy fillings; authorizing the
152 Chief Financial Officer to remove board members for
153 specified causes; providing that board members are
154 subject to specified code of ethics; prohibiting board
155 members from certain acts; providing penalties;
156 providing that board meetings are subject to public
157 meetings requirements; providing that certain
158 documents are confidential and exempt from public
159 records requirements; providing notice requirements
160 for board meetings; providing exceptions; amending s.
161 627.4133, F.S.; revising the timeframe of specified
162 insurers' insurance policy cancellation and
163 termination for a specified notice; amending s.
164 627.4215, F.S.; specifying that health insurers that
165 offer specified behavioral health insurance coverages,
166 rather than all health insurers, make certain
167 information available on their websites; requiring
168 health insurers to provide certain notice to insureds
169 who have specified behavioral health insurance
170 coverages, rather than to all insureds; amending s.
171 627.426, F.S.; prohibiting liability insurers from
172 denying coverage for property and bodily injury
173 liability claims up to specified limits based on a
174 specified reason; providing an exception; amending s.
175 627.7015, F.S.; providing requirements that insurers
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176 must meet before participating in disputed property
177 insurance claims mediation; authorizing the department
178 to suspend property insurers' authority to appoint
179 licensees if the insurers do not timely pay certain
180 fees; deleting some requirements for special rules
181 adopted by the department in cases of an emergency;
182 creating s. 627.7155, F.S.; prohibiting insurers and
183 insurance agents from engaging in specified practices
184 relating to collateral protection property insurance
185 under certain circumstances; prohibiting insurers from
186 providing free or below-cost outsourced services and
187 from outsourcing their own functions on an above-cost
188 basis to specified entities; amending s. 627.745,
189 F.S.; increasing the amount limit in claims in which
190 either party may demand mediation for personal injury
191 or for property damage under motor vehicle insuranc e
192 policies; providing requirements for mediation costs
193 and fees and their payment; providing that the
194 insurers' authority to appoint licensees may be
195 suspended if the insurers do not timely pay
196 administrative fees; deleting certain requirements
197 relating to mediation and to department rules;
198 requiring the department to adopt a motor vehicle
199 insurance mediation program; requiring the department
200 to adopt special rules applicable in cases of state
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201 emergencies; providing requirements for such rules;
202 authorizing the department to designate an entity or
203 person to serve as administrator; authorizing the
204 department to make such designation through a contract
205 or agreement; amending s. 631.141, F.S.; authorizing
206 the department to take certain actions to preserve the
207 right and interest of policyholders whose insurance
208 policies and similar contracts are affected by
209 receivership proceedings; amending s. 631.252, F.S.;
210 providing exceptions to cancellation of insurance
211 policies or similar contracts of coverage under
212 certain circumstances; revising the dates of such
213 cancellation; providing a cross-reference; providing
214 circumstances under which the insurance coverage
215 continuation period after the date of entry of a
216 liquidation order may be extended; amending ss.
217 631.56, 631.716, 631.816, and 631.912, F.S.; revising
218 the process for appointing members for the board of
219 directors of Florida Insurance Guaranty Association,
220 Incorporated, the Florida Life and Health Insurance
221 Guaranty Association, the Florida Health Maintenance
222 Organization Consumer Assistance Plan, and the Florida
223 Workers' Compensation Insurance Guaranty Association,
224 Incorporated, respectively; limiting the number of
225 years that members may serve on the board; authorizing
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226 the Chief Financial Officer to remove board members
227 for specified causes; providing that board members are
228 subject to specified code of ethics; prohibiting board
229 members from certain acts; providing penalties;
230 providing that board meetings are subject to public
231 meetings requirements; providing that certain
232 documents are open to the public; providing
233 exceptions; providing notice requirements for board
234 meetings; providing exceptions; creating s. 633.1423,
235 F.S.; defining the term "organization"; authorizing
236 the Division of State Fire Marshal to establish th e
237 State Fire Marshal Safety and Training Force for a
238 specified purpose; providing requirements for the
239 organization; requiring the organization to operate
240 under written contract with the division; providing
241 requirements for the contract; requiring the
242 organization to be governed by a board of directors;
243 requiring the State Fire Marshal to appoint the
244 board's president; requiring board members to be
245 appointed by the president; authorizing the
246 organization to use the division's fixed property and
247 facilities under certain circumstances; prohibiting
248 the department from authorizing the organization to
249 use the division's property and facilities under
250 certain circumstances; requiring the department to
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251 adopt rules; requiring moneys received by the
252 organization to be held in a separate depository
253 account in the name of the organization and to be
254 subject to the contract with the division; requiring
255 the organization to submit to the division certain
256 information and documents; requiring an annual
257 financial audit; requiring proceeds received by the
258 division from the organization to be deposited into a
259 specified trust fund; amending s. 634.171, F.S.;
260 authorizing the department to issue licenses as
261 salespersons for motor vehicle service agreements and
262 insurers to nonresident applicants under certain
263 circumstances; providing duties for such nonresident
264 licensees; providing requirements for resident
265 licenses within certain timeframes; amending s.
266 634.181, F.S.; providing additional grounds for the
267 department's compulsory refusal, suspension, and
268 revocation of licenses and appointments of certain
269 salespersons; requiring the department to temporarily
270 suspend licenses and appointments immediately upon
271 receipt of information on or indictment for certain
272 felonies; requiring such suspension to continue under
273 certain circumstances; authorizing the department to
274 adopt rules; amending s. 634.191, F.S.; revising
275 grounds for the department's discretionary refusal,
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276 suspension, and revocation of licenses and
277 appointments of certain salespersons; requiring
278 certain salespersons to submit specified orders and
279 legal documents to the department; authorizing the
280 department to adopt rules; amending s. 634.320, F.S.;
281 providing additional grounds for the department's
282 compulsory refusal, suspension, and revocation of
283 licenses and appointments of certain sales
284 representatives; requiring the department to
285 temporarily suspend licenses and appointments
286 immediately upon receipt of information on or
287 indictment for certain felonies; requiring such
288 suspension to continue under certain circumstances;
289 authorizing the department to adopt rules; amending s.
290 634.321, F.S.; revising grounds for the department's
291 discretionary refusal, suspension, and revocation of
292 licenses and appointments of certain sales
293 representatives; requiring sales representatives to
294 submit certain orders and legal documents to the
295 department; authorizing the department to adopt rules;
296 amending s. 634.401, F.S.; revising the definition of
297 the term "manufacturer"; amending s. 634.406, F.S.;
298 deleting certain financial requirements for warranty
299 associations and parent corporations; amending s.
300 634.422, F.S.; providing additional grounds for the
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301 department's compulsory refusal, suspension, and
302 revocation of licenses and appointments of certain
303 sales representatives; requiring the department to
304 temporarily suspend licenses and appointments
305 immediately upon receipt of information on or
306 indictment for certain felonies; requiring such
307 suspension to continue under certain circumstances;
308 authorizing the department to adopt rules; amending s.
309 634.423, F.S.; revising grounds for the department's
310 discretionary refusal, suspension, and revocation of
311 licenses and appointments of certain sales
312 representatives; requiring sales representatives to
313 submit certain orders and legal documents to the
314 department; authorizing the department to adopt rules;
315 amending s. 648.25, F.S.; defining the term
316 "appointment" and revising the definition of the term
317 "temporary bail bond agent"; amending s. 648.26, F.S.;
318 providing construction for certain investigatory
319 records of the department; amending s. 648.285, F.S.;
320 providing that persons who manage bail bond agencies
321 are subject to certain requirements; revising
322 requirements for persons who own, control, or have
323 pecuniary interests in bail bond agencies; authorizing
324 the department to issue bail bond agencies to certain
325 persons; providing requirements for applications for
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326 bail bond agency licenses; requiring public displays
327 of such licenses; providing nonapplicability of
328 licensing disqualification provisions based on
329 criminal conviction; deleting provisions relating to
330 temporary bail bond permits; amending s. 648.30, F.S.;
331 conforming provisions to changes made by the act;
332 revising requirements for persons to act or preform as
333 bail bond agents; providing requirements for persons
334 and entities to act or perform as bail bond agencies;
335 prohibiting bail bond agents from selling certain bail
336 bonds; amending s. 648.34, F.S.; conforming provisions
337 to changes made by the act; revising requirements f or
338 bail bond agent qualifications; amending s. 648.355,
339 F.S.; providing requirements for licensure, rather
340 than temporary licensure, of limited surety agents and
341 professional bail bond agents; providing the timeframe
342 for an applicant's completion of specified coursework
343 before applying for licensure; providing requirements
344 and fees for license application; revising the
345 conditions under which individuals licensed as
346 temporary bail bond agents may take bail bond agent's
347 licensure examinations and apply for bail bond agent's
348 licenses; prohibiting the department from issuing
349 temporary bail bond agent's licenses on or after a
350 specified date; authorizing individuals licensed as
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351 temporary bail bond agents to continue to be licensed;
352 prohibiting temporary bail bond's licenses from being
353 reinstated; amending s. 648.386, F.S.; defining the
354 term "classroom instruction"; revising criteria for
355 approval and certification as an approved limited
356 surety agent and professional bail bond agent
357 continuing education school to require continuing
358 education classes to be classroom instruction;
359 creating s. 648.3875, F.S.; specifying requirements
360 for applications for designation as primary bail bond
361 agents; specifying qualifications for primary bail
362 bond agents; repealing s. 648.41, F.S., relating to
363 termination of appointment of temporary bail bond
364 agents; amending s. 648.42, F.S.; revising the
365 entities from whom a bail bond agent must receive
366 appointment before registering as a bail bond agent;
367 conforming provisions to changes made by the act;
368 amending s. 648.44, F.S.; conforming provisions to
369 changes made by the act; revising activities that are
370 prohibited to bail bond agents; amending ss. 648.27,
371 648.31, 648.382, 648.39, 648.441, and 648.50, F.S.;
372 conforming provisions to changes made by the act;
373 repealing s. 651.123, F.S., relating to alternative
374 dispute resolutions; amending s. 843.021, F.S.;
375 conforming a provision to changes made by the act;
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376 revising a defense to the charge of unlawful
377 possession of a concealed handcuff key; amending s.
378 903.28, F.S.; revising the amounts of forfeitures that
379 must be remitted; specifying procedures for remission
380 of forfeitures of deceased defendants; revising the
381 circumstances under which forfeitures must be
382 remitted; specifying procedures for remission of
383 forfeitures of defendants for whom the state is
384 unwilling to seek extradition; amending ss. 28.2221,
385 119.071, 631.152, 631.398, and 903.09, F.S.;
386 conforming cross-references; ratifying a specific rule
387 relating to the Florida Workers' Compensation Health
388 Care Provider Reimbursement Manual, for the sole and
389 exclusive purpose of satisfying any condition on
390 effectiveness pursuant to s. 120.541(3), F.S., which
391 requires ratification of any rule meeting any
392 specified thresholds for likely adverse impact or
393 increase in regulatory costs; providing applicability;
394 providing effective dates.
395
396 Be It Enacted by the Legislature of the State of Florida:
397
398 Section 1. Subsections (3), (4), and (5) of section
399 20.121, Florida Statutes, are renumbered as subsectio ns (4),
400 (5), and (6), respectively, paragraph (e) of subsection (2) and
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401 present subsection (6) are amended, and a new subsection (3) is
402 added to that section, to read:
403 20.121 Department of Financial Services.—There is created
404 a Department of Financial Services.
405 (2) DIVISIONS.—The Department of Financial Services shall
406 consist of the following divisions and office:
407 (e) The Division of Investigative and Forensic Services,
408 which shall function as a criminal justice agency for purposes
409 of ss. 943.045-943.08. The division may initiate and conduct
410 investigations into any matter under the jurisdiction of the
411 Chief Financial Officer and Fire Marshal within or outside of
412 this state as it deems necessary. If, during an investigation,
413 the division has reason to believe that any criminal law of this
414 state or the United States has or may have been violated, it
415 shall refer any records tending to show such violation to state
416 or federal law enforcement and, if applicable, federal or
417 prosecutorial agencies and shall provide investigative
418 assistance to those agencies as appropriate required. The
419 division shall include the following bureaus and office:
420 1. The Bureau of Forensic Services;
421 2. The Bureau of Fire, Arson, and Explosives
422 Investigations;
423 3. The Office of Fiscal Integrity, which shall have a
424 separate budget;
425 4. The Bureau of Insurance Fraud; and
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426 5. The Bureau of Workers' Compensation Fraud.
427 (3) LEGAL SERVICES.—The Department of Financial Services
428 may provide legal services to any board or commission over which
429 the department or the Chief Financial Officer has appointment
430 authority. Upon approval of the Chief Financial Officer, the
431 board or commission may retain independent legal services to
432 provide legal services to the board or commission. Fees and
433 costs of such independent legal services shall be paid from the
434 Regulatory Trust Fund.
435 (6) STRATEGIC MARKETS RESEARCH AND ASSESSMENT UNIT.—The
436 Strategic Markets Research and Assessment Unit is established
437 within the Department of Financial Services. The Chie f Financial
438 Officer or his or her designee shall report on September 1,
439 2008, and quarterly thereafter, to the Cabinet, the President of
440 the Senate, and the Speaker of the House of Representatives on
441 the status of the state's financial services markets. At a
442 minimum, the report must include a summary of issues, trends,
443 and threats that broadly impact the condition of the financial
444 services industries, along with the effect of such conditions on
445 financial institutions, the securities industries, other
446 financial entities, and the credit market. The Chief Financial
447 Officer shall also provide findings and recommendations
448 regarding regulatory and policy changes to the Cabinet, the
449 President of the Senate, and the Speaker of the House of
450 Representatives.
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451 Section 2. Paragraph (c) of subsection (1) of section
452 39.6035, Florida Statutes, is amended to read:
453 39.6035 Transition plan.—
454 (1) During the year after a child reaches 16 years of age,
455 the department and the community-based care lead agency, in
456 collaboration with the caregiver and any other individual whom
457 the child would like to include, shall assist the child in
458 developing a transition plan. The required transition plan is in
459 addition to standard case management requirements. The
460 transition plan must address specific options for the child to
461 use in obtaining services, including housing, health insurance,
462 education, financial literacy, a driver license, and workforce
463 support and employment services. The plan must also include
464 tasks to establish and maintain naturally occurring mentoring
465 relationships and other personal support services. The
466 transition plan may be as detailed as the child chooses. This
467 plan must be updated as needed before the child reaches 18 years
468 of age and after the child reaches 18 years of age if he or she
469 is receiving funding under s. 409.1451(2). In developing and
470 updating the transition plan, the department and the community-
471 based care lead agency shall:
472 (c) Provide information for the financial literacy
473 curriculum for youth offered by the Department of Financial
474 Services.
475 Section 3. Subsection (2) of section 110.113, Florida
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476 Statutes, is amended to read:
477 110.113 Pay periods for state officers and employees;
478 salary payments by direct deposit.—
479 (2) As a condition of employment, a person appointed to a
480 position in state government is required to participate in the
481 direct deposit program pursuant to s. 17.076. An employee may
482 request an exemption from the provisions of this subsection when
483 such employee can demonstrate a hardship or when such employee
484 is in an other-personal-services position.
485 Section 4. Subsection (2), paragraphs (a), (c), and (d) of
486 subsection (4), paragraph (a) of subsection (8), and subsection
487 (12) of section 112.215, Florida Statutes, are amended to read:
488 112.215 Government employees; deferred compensation
489 program.—
490 (2) For the purposes of this section, the term "government
491 employee" means any person employed, whether appointed, elected,
492 or under contract, by providing services for the state or any
493 governmental unit of the state, including, but not limited to,;
494 any state agency; any or county, municipality, or other
495 political subdivision of the state; any special district or
496 water management district, as the terms are defined in s.
497 189.012 municipality; any state university or Florida college
498 system institution, as the terms are defined in s. 1000.21(6)
499 and (3), respectively board of trustees; or any constitutional
500 county officer under s. 1(d), Art. VIII of the State
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501 Constitution for which compensation or statutory fees are paid.
502 (4)(a) The Chief Financial Officer, with the approval of
503 the State Board of Administration, shall establish a state such
504 plan or plans of deferred compensation for government state
505 employees and may include persons employed by a state university
506 as defined in s. 1000.21, a special district as defined in s.
507 189.012, or a water management district as defined in s.
508 189.012, including all such investment vehicles or products
509 incident thereto, as may be available through, or offered by,
510 qualified companies or persons, and may approve one or more such
511 plans for implementation by and on behalf of the state and its
512 agencies and employees.
513 (c) The Chief Financial Officer, with the approval of the
514 State Board of Administration, may delegate responsibility for
515 administration of the state plan to a person the Chief Financial
516 Officer determines to be qualified, compensate such person, and,
517 directly or through such person or pursuant to a collective
518 bargaining agreement, contract with a private corporation or
519 institution to provide such services as may be part of any such
520 plan or as may be deemed necessary or proper by the Chief
521 Financial Officer or such person, including, but not limited to,
522 providing consolidated billing, individual and collective
523 recordkeeping and accountings, asset purchase, control, and
524 safekeeping, and direct disbursement of funds to employees or
525 other beneficiaries. The Chief Financial Officer may authorize a
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526 person, private corporation, or institution to make direct
527 disbursement of funds under the state plan to an employee or
528 other beneficiary.
529 (d) In accordance with such approved plan, and upon
530 contract or agreement with an eligible government employee,
531 deferrals of compensation may be accomplished by payroll
532 deductions made by the appropriate officer or officers of the
533 state, with such funds being thereafter held and administered in
534 accordance with the plan.
535 (8)(a) There is created a Deferred Compensation Advisory
536 Council composed of eight seven members.
537 1. One member shall be appointed by the Speaker of the
538 House of Representatives and the President of the Senate jointly
539 and shall be an employee of the legislative branch.
540 2. One member shall be appointed by the Chief Justice of
541 the Supreme Court and shall be an employee of the judicial
542 branch.
543 3. One member shall be appointed by the chair of the
544 Public Employees Relations Commission and shall be a nonexempt
545 public employee.
546 4. The remaining five four members shall be employed by
547 the executive branch and shall be appointed as follows:
548 a. One member shall be appointed by the Chancellor of the
549 State University System and shall be an employee of the
550 university system.
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551 b. One member shall be appointed by the Chief Financial
552 Officer and shall be an employee of the Chief Financial Officer.
553 c. One member shall be appointed by the Governor and shall
554 be an employee of the executive branch.
555 d. One member shall be appointed by the Executive Director
556 of the State Board of Administration and shall be an em ployee of
557 the State Board of Administration.
558 e. One member shall be appointed by the Chancellor of the
559 Florida College System and shall be an employee of the Florida
560 College System.
561 (12) The Chief Financial Officer may adopt any rule
562 necessary to administer and implement this act with respect to
563 the state deferred compensation plan or plans for state
564 employees and persons employed by a state university as defined
565 in s. 1000.21, a special district as defined in s. 189.012, or a
566 water management district as defined in s. 189.012.
567 Section 5. Subsection (13) of section 215.422, Florida
568 Statutes, is amended to read:
569 215.422 Payments, warrants, and invoices; processing time
570 limits; dispute resolution; agency or judicial branch
571 compliance.—
572 (13) Notwithstanding the provisions of subsections (3) and
573 (12), in order to alleviate any hardship that may be caused to a
574 health care provider as a result of delay in receiving
575 reimbursement for services, any payment or payments for
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576 hospital, medical, or other health care services which are to be
577 reimbursed by a state agency or the judicial branch, either
578 directly or indirectly, shall be made to the health care
579 provider not more than 40 35 days from the date eligibility for
580 payment of such claim is determined. If payment is not issued to
581 a health care provider within 40 35 days after the date
582 eligibility for payment of the claim is determined, the state
583 agency or the judicial branch shall pay the health care provider
584 interest at a rate of 1 percent per month calculate d on a
585 calendar day basis on the unpaid balance from the expiration of
586 such 40-day 35-day period until such time as payment is made to
587 the health care provider, unless a waiver in whole has been
588 granted by the Department of Financial Services pursuant to
589 subsection (1) or subsection (2).
590 Section 6. Subsection (1) of section 274.01, Florida
591 Statutes, is amended to read:
592 274.01 Definitions.—The following words as used in this
593 act have the meanings set forth in the below subsections, unless
594 a different meaning is required by the context:
595 (1) "Governmental unit" means the governing board,
596 commission, or authority of a county, a county agency, a
597 municipality, a special district as defined in s. 189.012 or
598 taxing district of the state, or the sheriff of the county.
599 Section 7. Subsections (15) and (16) of section 440.13,
600 Florida Statutes, are renumbered as subsections (14) and (15),
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601 respectively, and subsection (12) and present subsection (14) of
602 that section are amended, to read:
603 440.13 Medical services and supplies; penalty for
604 violations; limitations.—
605 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
606 REIMBURSEMENT ALLOWANCES.—
607 (a) A three-member panel is created, consisting of the
608 Chief Financial Officer, or the Chief Financial Officer's
609 designee, and two members to be appointed by the Governor,
610 subject to confirmation by the Senate, one member who, on
611 account of present or previous vocation, employment, or
612 affiliation, shall be classified as a representative of
613 employers, the other member who, on account of previous
614 vocation, employment, or affiliation, shall be classified as a
615 representative of employees. The panel shall determine statewide
616 schedules of maximum reimbursement allowances for medically
617 necessary treatment, care, and attendance provided by
618 physicians, hospitals and, ambulatory surgical centers, work-
619 hardening programs, pain programs, and durable medical
620 equipment. The maximum reimbursement allowances for inpatient
621 hospital care shall be based on a schedule of per diem rates, to
622 be approved by the three-member panel no later than March 1,
623 1994, to be used in conjunction with a precertification manual
624 as determined by the department, including maximum hours in
625 which an outpatient may remain in observation status, which
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626 shall not exceed 23 hours. All compensable charges for hospital
627 outpatient care shall be reimbursed at 75 percent of usual and
628 customary charges, except as otherwise provided by this
629 subsection. Annually, the three-member panel shall adopt
630 schedules of maximum reimbursement allowances for physicians,
631 hospital inpatient care, hospital outpatient care, and
632 ambulatory surgical centers, work-hardening programs, and pain
633 programs. A An individual physician, hospital or, ambulatory
634 surgical center, pain program, or work-hardening program shall
635 be reimbursed:
636 1. either The agreed-upon contract price; or
637 2. If there is no agreed-upon contract price, the lesser
638 of the provider's billed charge or the maximum reimbursement
639 allowance in the appropriate schedule.
640 (b) It is the intent of the Legislature to increase the
641 schedule of maximum reimbursement allowances for selected
642 physicians effective January 1, 2004, and to pay for the
643 increases through reductions in payments to hospitals. Revisions
644 developed pursuant to this subsection are limited to the
645 following:
646 (b)1. Payments for outpatient physical, occupational, and
647 speech therapy provided by hospitals shall be reduced to the
648 schedule of maximum reimbursement allowances for these services
649 which applies to nonhospital providers.
650 (c)2. Payments for scheduled outpatient nonemergency
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651 radiological and clinical laboratory services that are not
652 provided in conjunction with a surgical procedure shall be
653 reduced to the schedule of maximum reimbursement allowances for
654 these services which applies to nonhospital providers.
655 (d)3. Outpatient reimbursement for scheduled surgeries
656 shall be reduced from 75 percent of charges to 60 percent of
657 charges.
658 (e)1. By July 1 of each year, the department shall notify
659 carriers and self-insurers of the physician and nonhospital
660 services schedule of maximum reimbursement allowances. The
661 notice must include publication of this schedule of maximum
662 reimbursement allowances on the division's website. This
663 schedule is not subject to approval by the three-member panel
664 and does not include reimbursement for prescription medication.
665 2. Subparagraph 1. shall take effect January 1, following
666 the July 1, 2024, notice of the physician and nonhospital
667 services schedule of maximum reimbursement allowances that the
668 department provides to carriers and self-insurers.
669 (f)4. Maximum reimbursement for a physician licensed under
670 chapter 458 or chapter 459 shall be increased to 110 percent of
671 the reimbursement allowed by Medicare, using appropriate codes
672 and modifiers or the medical reimbursement level adopted by the
673 three-member panel as of January 1, 2003, whichever is greater.
674 (g)5. Maximum reimbursement for surgical procedures shall
675 be increased to 140 percent of the reimbursement allowed by
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676 Medicare or the medical reimbursement level adopted by the
677 three-member panel as of January 1, 2003, whichever is greater.
678 (h)(c) As to reimbursement for a prescription medication,
679 the reimbursement amount for a prescription shall be the average
680 wholesale price plus $4.18 for the dispensing fee. For
681 repackaged or relabeled prescription medications dispensed by a
682 dispensing practitioner as provided in s. 465.0276, the fee
683 schedule for reimbursement shall be 112.5 percent of the average
684 wholesale price, plus $8.00 for the dispensing fee. For purposes
685 of this subsection, the average wholesale price shall be
686 calculated by multiplying the number of units dispensed times
687 the per-unit average wholesale price set by the original
688 manufacturer of the underlying drug dispensed by the
689 practitioner, based upon the published manufacturer's average
690 wholesale price published in the Medi-Span Master Drug Database
691 as of the date of dispensing. All pharmaceutical claims
692 submitted for repackaged or relabeled prescription medications
693 must include the National Drug Code of the original
694 manufacturer. Fees for pharmaceuticals and pharmaceutical
695 services shall be reimbursable at the applicable fee schedule
696 amount except where the employer or carrier, or a service
697 company, third party administrator, or any entity acting on
698 behalf of the employer or carrier directly contracts with the
699 provider seeking reimbursement for a lower amount.
700 (i)(d) Reimbursement for all fees and other charges for
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701 such treatment, care, and attendance, including tre atment, care,
702 and attendance provided by any hospital or other health care
703 provider, ambulatory surgical center, work-hardening program, or
704 pain program, must not exceed the amounts provided by the
705 uniform schedule of maximum reimbursement allowances as
706 determined by the panel or as otherwise provided in this
707 section. This subsection also applies to independent medical
708 examinations performed by health care providers under this
709 chapter. In determining the uniform schedule, the panel shall
710 first approve the data which it finds representative of
711 prevailing charges in the state for similar treatment, care, and
712 attendance of injured persons. Each health care provider, health
713 care facility, ambulatory surgical center, work-hardening
714 program, or pain program receiving workers' compensation
715 payments shall maintain records verifying their usual charges.
716 In establishing the uniform schedule of maximum reimbursement
717 allowances, the panel must consider:
718 1. The levels of reimbursement for similar treatment,
719 care, and attendance made by other health care programs or
720 third-party providers;
721 2. The impact upon cost to employers for providing a level
722 of reimbursement for treatment, care, and attendance which will
723 ensure the availability of treatment, care, and attendance
724 required by injured workers; and
725 3. The financial impact of the reimbursement allowances
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726 upon health care providers and health care facilities, including
727 trauma centers as defined in s. 395.4001, and its effect upon
728 their ability to make available to injured workers such
729 medically necessary remedial treatment, care, and attendance.
730 The uniform schedule of maximum reimbursement allowances must be
731 reasonable, must promote health care cost containment and
732 efficiency with respect to the workers' compensation he alth care
733 delivery system, and must be sufficient to ensure availability
734 of such medically necessary remedial treatment, care, and
735 attendance to injured workers; and
736 4. The most recent average maximum allowable rate of
737 increase for hospitals determined by the Health Care Board under
738 chapter 408.
739 (j)(e) In addition to establishing the uniform schedule of
740 maximum reimbursement allowances, the panel shall:
741 1. Take testimony, receive records, and collect data to
742 evaluate the adequacy of the workers' compensation fee schedule,
743 nationally recognized fee schedules and alternative methods of
744 reimbursement to health care providers and health care
745 facilities for inpatient and outpatient treatment and care.
746 2. Survey health care providers and health care facili ties
747 to determine the availability and accessibility of workers'
748 compensation health care delivery systems for injured workers.
749 3. Survey carriers to determine the estimated impact on
750 carrier costs and workers' compensation premium rates by
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751 implementing changes to the carrier reimbursement schedule or
752 implementing alternative reimbursement methods.
753 4. Submit recommendations on or before January 15, 2017,
754 and biennially thereafter, to the President of the Senate and
755 the Speaker of the House of Representatives on methods to
756 improve the workers' compensation health care delivery system.
757
758 The department, as requested, shall provide data to the panel,
759 including, but not limited to, utilization trends in the
760 workers' compensation health care delivery system. The
761 department shall provide the panel with an annual report
762 regarding the resolution of medical reimbursement disputes and
763 any actions pursuant to subsection (8). The department shall
764 provide administrative support and service to the panel to the
765 extent requested by the panel. For prescription medication
766 purchased under the requirements of this subsection, a
767 dispensing practitioner shall not possess such medication unless
768 payment has been made by the practitioner, the practitioner's
769 professional practice, or the practitioner's practice management
770 company or employer to the supplying manufacturer, wholesaler,
771 distributor, or drug repackager within 60 days of the dispensing
772 practitioner taking possession of that medication.
773 (14) PRACTICE PARAMETERS.—The practice parameters and
774 protocols mandated under this chapter shall be the practice
775 parameters and protocols adopted by the United States Agency for
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776 Healthcare Research and Quality in effect on January 1, 2003.
777 Section 8. Effective January 1, 2024, subsection (2) of
778 section 440.385, Florida Statutes, is amended to read:
779 440.385 Florida Self-Insurers Guaranty Association,
780 Incorporated.—
781 (2) BOARD OF DIRECTORS; MEETINGS.—
782 (a) The board of directors of the association shall
783 consist of nine persons and shall be organized as established in
784 the plan of operation. Each director must All board members
785 shall be experienced in self-insurance in this state. Each
786 director shall serve for a 4-year term and may be reappointed;
787 however, a director may not serve for more than 8 consecutive
788 years. Appointments after January 1, 2002, shall be made by the
789 department upon recommendation of members of the association or
790 other persons with experience in self-insurance as determined by
791 the Chief Financial Officer. Any vacancy on the board shall be
792 filled for the remaining period of the term in the same manner
793 as appointments other than initial appointments are made. Each
794 director shall be reimbursed for expenses incurred in carrying
795 out the duties of the board on behalf of the association.
796 1. The Chief Financial Officer may remove a director from
797 office for misconduct, malfeasance, misfeasance, or neglect of
798 duty. Any vacancy so created shall be filled as provided in this
799 paragraph.
800 2. Directors are subject to the code of ethics under part
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801 III of chapter 112, including, but not limited to, the code of
802 ethics and public disclosure and reporting of financial
803 interests, pursuant to s. 112.3145. For purposes of applying
804 part III of chapter 112 to activities of members of the board of
805 directors, those persons are considered public officers and the
806 association is considered their agency. Notwithstanding s.
807 112.3143(2), a director may not vote on any measure that he or
808 she knows would inure to his or her special private gain or
809 loss; that he or she knows would inure to the special private
810 gain or loss of any principal by which he or she is retained,
811 other than an agency as defined in s. 112.312; or that h e or she
812 knows would inure to the special private gain or loss of a
813 relative or business associate of the public officer. Before the
814 vote is taken, such director shall publicly state to the board
815 the nature of his or her interest in the matter from which h e or
816 she is abstaining from voting and, within 15 days after the vote
817 occurs, disclose the nature of his or her interest as a public
818 record in a memorandum filed with the person responsible for
819 recording the minutes of the meeting, who shall incorporate the
820 memorandum in the minutes.
821 3. Notwithstanding s. 112.3148, s. 112.3149, or any other
822 law, an employee of the association or a director may not
823 knowingly accept, directly or indirectly, any gift or
824 expenditure from a person or entity, or an employee or
825 representative of such person or entity, which has a contractual
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826 relationship with the association or which is under
827 consideration for a contract.
828 4. A director who fails to comply with subparagraph 2. or
829 subparagraph 3. is subject to the penalties provided under ss.
830 112.317 and 112.3173.
831 (b)1. All meetings of the board of directors are subject
832 to the requirements of s. 286.011, and all books, records, and
833 audits of the plan are open to the public for reasonable
834 inspection, except that a claim file in the possession of the
835 association or its representative is confidential and exempt
836 from the provisions of s. 119.07(1) and s. 24(a), Art. I of the
837 State Constitution until termination of litigation and
838 settlement of all claims, although medical records and other
839 portions of the claim file may remain confidential and exempt as
840 otherwise provided by law.
841 2. Except in the case of emergency meetings, the
842 association shall give notice of any board meeting by
843 publication on the association's website at least 7 d ays before
844 the meeting. The association shall prepare and publish a meeting
845 agenda on its website, along with any meeting materials,
846 excluding confidential and exempt information, at least 7 days
847 before the meeting. The agenda shall contain the items to be
848 considered in order of presentation and a telephone number for
849 members of the public to participate telephonically at the board
850 meeting, or login information for members of the public to
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851 participate in a live video conference of the board meeting.
852 After the agenda has been made available, a change shall be made
853 only for good cause, as determined by the person designated to
854 preside, and must be stated in the record. Notification of such
855 change shall be at the earliest practicable time.
856 Section 9. Subsection (3) of section 473.312, Florida
857 Statutes, is amended to read:
858 473.312 Continuing education.—
859 (3) The board shall adopt rules establishing the
860 continuing education requirements for Florida certified public
861 accountants who are engaged in the audit of:
862 (a) A governmental entity. The board shall approve
863 subjects directly related to the governmental environment and to
864 governmental auditing for purposes of satisfying the requirement
865 of this paragraph subsection.
866 (b) Insurers. The board shall approve subjects directly
867 related to statutory accounting, indications of fraud, and
868 indications of insolvency for purposes of satisfying the
869 requirement of this paragraph.
870 Section 10. Paragraph (d) of subsection (8) of section
871 624.424, Florida Statutes, is amended to read:
872 624.424 Annual statement and other information.—
873 (8)
874 (d) An insurer may not use the same accountant or partner
875 of an accounting firm responsible for preparing the report
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876 required by this subsection for more than 5 consecutive years.
877 Following this period, the insurer may not use such accountant
878 or partner for a period of 5 years, but may use another
879 accountant or partner of the same firm. An insurer may request
880 the office to waive this prohibition based upon an unusual
881 hardship to the insurer and a determination that the accountant
882 is exercising independent judgment that is not unduly influenced
883 by the insurer considering such factors as the number of
884 partners, expertise of the partners or the number of insurance
885 clients of the accounting firm; the premium volume of the
886 insurer; and the number of jurisdictions in which the insurer
887 transacts business.
888 Section 11. Subsection (25) of section 624.501, Florida
889 Statutes, is amended to read:
890 624.501 Filing, license, appointment, and miscell aneous
891 fees.—The department, commission, or office, as appropriate,
892 shall collect in advance, and persons so served shall pay to it
893 in advance, fees, licenses, and miscellaneous charges as
894 follows:
895 (25) Reinsurance intermediary:
896 (a) Application filing and license fee .............. $50.00
897 (b) Original appointment and biennial renewal or
898 continuation thereof, appointment fee $60.00
899 Section 12. Subsection (5) of section 626.015, Florida
900 Statutes, is amended to read:
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901 626.015 Definitions.—As used in this part:
902 (5) "Association" includes the Florida Association of
903 Insurance Agents (FAIA), the National Association of Insurance
904 and Financial Advisors (NAIFA), the National Association of
905 Benefits and Insurance Professionals Florida Chapter (NABIP
906 Florida) Florida Association of Health Underwriters (FAHU), the
907 Latin American Association of Insurance Agencies (LAAIA), the
908 Florida Association of Public Insurance Adjusters (FAPIA), the
909 Florida Bail Agents Association (FBAA), or the Professional Bail
910 Agents of the United States (PBUS).
911 Section 13. Subsection (4) of section 626.171, Florida
912 Statutes, is amended to read:
913 626.171 Application for license as an agent, customer
914 representative, adjuster, service representative, or reinsurance
915 intermediary.—
916 (4) An applicant for a license issued by the department
917 under this chapter must submit a set of the individual
918 applicant's fingerprints, or, if the applicant is not an
919 individual, a set of the fingerprints of the sole proprietor,
920 majority owner, partners, officers, and directors, to the
921 department and must pay the fingerprint processing fee set forth
922 in s. 624.501. Fingerprints must be processed in accordance with
923 s. 624.34 and used to investigate the applicant's qualifications
924 pursuant to s. 626.201. The fingerprints must be taken by a law
925 enforcement agency, designated examination center, or other
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926 department-approved entity. The department shall require all
927 designated examination centers to have fingerprinting equipment
928 and to take fingerprints from any applicant or prospective
929 applicant who pays the applicable fee. The department may not
930 approve an application for licensure as an agent, customer
931 service representative, adjuster, service representative, or
932 reinsurance intermediary if fingerprints have not been
933 submitted.
934 Section 14. Paragraph (c) of subsection (1) of section
935 626.173, Florida Statutes, is amended to read:
936 626.173 Insurance agency closure; cancellation of
937 licenses.—
938 (1) If a licensed insurance agency permanently ceases the
939 transacting of insurance or ceases the transacting of insurance
940 for more than 30 days, the agent in charge, the director of the
941 agency, or other officer listed on the original application for
942 licensure must, within 35 days after the agency first ceases the
943 transacting of insurance, do all of the following:
944 (c) Notify all policyholders currently insured by a policy
945 written, produced, or serviced by the agency of the agency's
946 cessation of operations; the date on which operations ceased;
947 and the identity of the agency or agent to which the agency's
948 current book of business has been transferred or, if no transfer
949 has occurred, a statement directing the policyholder to contact
950 the insurance company for assistance in locating a licensed
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951 agent to service the policy. This paragraph does not apply to
952 title insurance, life insurance, or annuity contracts.
953 Section 15. Paragraph (j) of subsection (2) of section
954 626.221, Florida Statutes, is amended to read:
955 626.221 Examination requirement; exemptions.—
956 (2) However, an examination is not necessary for any of
957 the following:
958 (j) An applicant for license as an all-lines adjuster who
959 has the designation of Accredited Claims Adjuster (ACA) from a
960 regionally accredited postsecondary institution in this state;
961 Certified All Lines Adjuster (CALA) from Kaplan Financial
962 Education; Associate in Claims (AIC) from the Insurance
963 Institute of America; Professional Claims Adjuster (PCA) from
964 the Professional Career Institute; Professional Property
965 Insurance Adjuster (PPIA) from the HurriClaim Training Academy;
966 Certified Adjuster (CA) from ALL LINES Training; Certified
967 Claims Adjuster (CCA) from AE21 Incorporated; Claims Adjuster
968 Certified Professional (CACP) from WebCE, Inc.; Accredited
969 Insurance Claims Specialist (AICS) from Encore Claim Services ;
970 Professional in Claims (PIC) from 2021 Training, LLC; or
971 Universal Claims Certification (UCC) from Claims and Litigation
972 Management Alliance (CLM) whose curriculum has been approved by
973 the department and which includes comprehensive analysis of
974 basic property and casualty lines of insurance and testing at
975 least equal to that of standard department testing for the all-
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976 lines adjuster license. The department shall adopt rules
977 establishing standards for the approval of curriculum.
978 Section 16. Paragraphs (c) and (f) of subsection (3) of
979 section 626.2815, Florida Statutes, are amended to read:
980 626.2815 Continuing education requirements.—
981 (3) Each licensee except a title insurance agent must
982 complete a 4-hour update course every 2 years which is specific
983 to the license held by the licensee. The course must be
984 developed and offered by providers and approved by the
985 department. The content of the course must address all lines of
986 insurance for which examination and licensure are required and
987 include the following subject areas: insurance law updates,
988 ethics for insurance professionals, disciplinary trends and case
989 studies, industry trends, premium discounts, determining
990 suitability of products and services, and other similar
991 insurance-related topics the department determines are relevant
992 to legally and ethically carrying out the responsibilities of
993 the license granted. A licensee who holds multiple insurance
994 licenses must complete an update course that is specific to at
995 least one of the licenses held. Except as otherwise specified,
996 any remaining required hours of continuing education are
997 elective and may consist of any continuing education course
998 approved by the department under this section.
999 (c) A licensee who has been licensed for 25 years or more
1000 and is a CLU or a CPCU or has a Bachelor of Science degree or
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1001 higher in risk management or insurance with evidence of 18 or
1002 more semester hours in insurance-related courses must also
1003 complete a minimum of 6 hours of elective continuing education
1004 courses every 2 years.
1005 (f) Elective continuing education courses for public
1006 adjusters may must be any course related to commercial and
1007 residential property coverages, claim adjusting practices, and
1008 any other adjuster elective courses specifically designed for
1009 public adjusters and approved by the department. Notwithstanding
1010 this subsection, public adjusters for workers' compensation
1011 insurance or health insurance are not required to take
1012 continuing education courses pursuant to this section.
1013 Section 17. Paragraphs (a), (b), and (e) of subsection (1)
1014 of section 626.321, Florida Statutes, are amended to read:
1015 626.321 Limited licenses and registration.—
1016 (1) The department shall issue to a qualified applicant a
1017 license as agent authorized to transact a limited class of
1018 business in any of the following categories of limited lines
1019 insurance:
1020 (a) Motor vehicle physical damage and mechanical breakdown
1021 insurance.—License covering insurance against only the loss of
1022 or damage to a motor vehicle that is designed for use upon a
1023 highway, including trailers and semitrailers designed for use
1024 with such vehicles. Such license also covers insurance against
1025 the failure of an original or replacement part to perform any
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1026 function for which it was designed. A licensee under this
1027 paragraph may not hold a license as an agent for any other or
1028 additional kind or class of insurance coverage except a limited
1029 license for credit insurance as provided in paragraph (e).
1030 Effective October 1, 2012, all licensees holding such limited
1031 license and appointment may renew the license and appointment,
1032 but no new or additional licenses may be issued pursuant to this
1033 paragraph, and a licensee whose limited license under this
1034 paragraph has been terminated, suspended, or revoked may not
1035 have such license reinstated.
1036 (b) Industrial fire insurance or burglary insurance. —
1037 License covering only industrial fire insurance or burglary
1038 insurance. A licensee under this paragraph may not hold a
1039 license as an agent for any other or additional kind or class of
1040 insurance coverage except for life insurance and health
1041 insurance. Effective July 1, 2019, all licensees holding such
1042 limited license and appointment may renew the license and
1043 appointment, but no new or additional licenses may be issued
1044 pursuant to this paragraph, and a licensee whose limited license
1045 under this paragraph has been terminated, suspended, or revoked
1046 may not have such license reinstated.
1047 (e) Credit insurance.—License covering credit life, credit
1048 disability, credit property, credit unemployment, involuntary
1049 unemployment, mortgage life, mortgage guaranty, mortgage
1050 disability, guaranteed automobile protection (GAP) insurance,
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1051 and any other form of insurance offered in connection with an
1052 extension of credit which is limited to partially or wholly
1053 extinguishing a credit obligation that the department determines
1054 should be designated a form of limited line credit insurance.
1055 Effective October 1, 2012, all valid licenses held by persons
1056 for any of the lines of insurance listed in this paragraph shall
1057 be converted to a credit insurance license. Licensees who wish
1058 to obtain a new license reflecting such change must request a
1059 duplicate license and pay a $5 fee as specified in s.
1060 624.501(15). The license may be issued only to an individual
1061 employed by a life or health insurer as an officer or other
1062 salaried or commissioned representative, to an individual
1063 employed by or associated with a lending or financial
1064 institution or creditor, or to a lending or financial
1065 institution or creditor, and may authorize the sale of such
1066 insurance only with respect to borrowers or debtors of such
1067 lending or financing institution or creditor. However, only the
1068 individual or entity whose tax identification number is used in
1069 receiving or is credited with receiving the commission from the
1070 sale of such insurance shall be the licensed agent of the
1071 insurer. No individual while so licensed shall hold a license as
1072 an agent as to any other or additional kind or class of life or
1073 health insurance coverage.
1074 Section 18. Paragraph (n) of subsection (1) of sec tion
1075 626.611, Florida Statutes, is amended to read:
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1076 626.611 Grounds for compulsory refusal, suspension, or
1077 revocation of agent's, title agency's, adjuster's, customer
1078 representative's, service representative's, or managing general
1079 agent's license or appointment.—
1080 (1) The department shall deny an application for, suspend,
1081 revoke, or refuse to renew or continue the license or
1082 appointment of any applicant, agent, title agency, adjuster,
1083 customer representative, service representative, or managing
1084 general agent, and it shall suspend or revoke the eligibility to
1085 hold a license or appointment of any such person, if it finds
1086 that as to the applicant, licensee, or appointee any one or more
1087 of the following applicable grounds exist:
1088 (n) Having been found guilty of or having pleaded guilty
1089 or nolo contendere to a misdemeanor directly related to the
1090 financial services business, any felony, or any a crime
1091 punishable by imprisonment of 1 year or more under the law of
1092 the United States of America or of any state thereof or under
1093 the law of any other country, without regard to whether a
1094 judgment of conviction has been entered by the court having
1095 jurisdiction of such cases.
1096 Section 19. Subsection (18) is added to section 626.621,
1097 Florida Statutes, to read:
1098 626.621 Grounds for discretionary refusal, suspension, or
1099 revocation of agent's, adjuster's, customer representative's,
1100 service representative's, or managing general agent's license or
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1101 appointment.—The department may, in its discretion, deny an
1102 application for, suspend, revoke, or refuse to renew or continue
1103 the license or appointment of any applicant, agent, adjuster,
1104 customer representative, service representative, or managing
1105 general agent, and it may suspend or revoke the eligibility to
1106 hold a license or appointment of any such person, if it finds
1107 that as to the applicant, licensee, or appointee any one or more
1108 of the following applicable grounds exist under circumstances
1109 for which such denial, suspension, revocation, or refusal is not
1110 mandatory under s. 626.611:
1111 (18) Cancellation of the applicant's, licensee's, or
1112 appointee's resident license in a state other than Florida.
1113 Section 20. Paragraphs (d) and (g) of subsection (2),
1114 paragraphs (a), (b), and (e) through (j) of subsection (3) of
1115 section 626.7492, Florida Statutes, are amended to read:
1116 626.7492 Reinsurance intermediaries.—
1117 (2) DEFINITIONS.—As used in this section:
1118 (d) "Producer" means a licensed an agent, broker, or
1119 insurance agency that is appointed as a reinsurance intermediary
1120 licensed pursuant to the applicable provision of the Florida
1121 Insurance Code.
1122 (g) "Reinsurance intermediary manager" means any person
1123 who has authority to bind, or manages all or part of, the
1124 assumed reinsurance business of a reinsurer, including the
1125 management of a separate division, department, or underwriting
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1126 office, and acts as a representative an agent for the reinsurer
1127 whether known as a reinsurance intermediary manager, manager, or
1128 other similar term. Notwithstanding the above, none of the
1129 following persons is a reinsurance intermediary manager with
1130 respect to the reinsurer for the purposes of this section:
1131 1. An employee of the reinsurer;
1132 2. A manager of the United States branch of an alien
1133 reinsurer;
1134 3. An underwriting manager which, pursuant to cont ract,
1135 manages all the reinsurance operations of the reinsurer, is
1136 under common control with the reinsurer, subject to the holding
1137 company act, and whose compensation is not based on the volume
1138 of premiums written.
1139 4. The manager of a group, association, pool, or
1140 organization of insurers which engage in joint underwriting or
1141 joint reinsurance and who are subject to examination by the
1142 insurance regulatory authority of the state in which the
1143 manager's principal business office is located.
1144 (3) LICENSURE.—
1145 (a) No person shall act as a reinsurance intermediary
1146 broker in this state if the reinsurance intermediary broker
1147 maintains an office either directly or as a member or employee
1148 of a firm or association, or an officer, director, or employee
1149 of a corporation:
1150 1. In this state, unless the reinsurance intermediary
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1151 broker is a licensed producer in this state; or
1152 2. In another state, unless the reinsurance intermediary
1153 broker is a licensed producer in this state or in another state
1154 having a law substantially similar to this section or the
1155 reinsurance intermediary broker is licensed in this state as an
1156 insurance agency and appointed as a nonresident reinsurance
1157 intermediary.
1158 (b) No person shall act as a reinsurance intermediary
1159 manager:
1160 1. For a reinsurer domiciled in this state, unless the
1161 reinsurance intermediary manager is a licensed producer in this
1162 state;
1163 2. In this state, if the reinsurance intermediary manager
1164 maintains an office either directly or as a member or employee
1165 of a firm or association, or an officer, director, or employee
1166 of a corporation in this state, unless the reinsurance
1167 intermediary manager is a licensed producer in this state;
1168 3. In another state for a nondomestic insurer, unless the
1169 reinsurance intermediary manager is a licensed producer in this
1170 state or another state having a law substantially similar to
1171 this section, or the person is licensed in this state as a
1172 producer nonresident reinsurance intermediary.
1173 (e) If the applicant for a reinsurance intermediary
1174 appointment license is a nonresident, the applicant, as a
1175 condition precedent to receiving or holding an appointment a
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1176 license, must designate the Chief Financial Officer as agent for
1177 service of process in the manner, and with the same legal
1178 effect, provided for by this section for designation of service
1179 of process upon unauthorized insurers. Such applicant shall also
1180 furnish the department with the name and address of a resident
1181 of this state upon whom notices or orders of the department or
1182 process affecting the nonresident reinsurance intermediary may
1183 be served. The licensee shall promptly notify the department in
1184 writing of each change in its designated agent for service of
1185 process, and the change shall not become effective until
1186 acknowledged by the department.
1187 (f) The department may refuse to issue a reinsurance
1188 intermediary license if, in its judgment, the applicant, anyone
1189 named on the application, or any member, principal, officer, or
1190 director of the applicant, has demonstrated a lack of fitness
1191 and trustworthiness, or that any controlling person of the
1192 applicant is not fit or trustworthy to act as a reinsurance
1193 intermediary, or that any of the foregoing has given cause for
1194 revocation or suspension of the license, or has failed to comply
1195 with any prerequisite for the issuance of the license.
1196 (f)(g) Reinsurance intermediaries shall be licensed,
1197 appointed, renewed, continued, reinstated, or terminated as
1198 prescribed in this chapter for insurance representatives in
1199 general, except that they shall be exempt from the photo,
1200 education, and examination provisions. License, Appointment, and
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1201 other fees shall be those prescribed in s. 624.501.
1202 (g)(h) The grounds and procedures for refusal of an a
1203 license or appointment or suspension or revocation of a license
1204 or appointment issued to a reinsurance intermediary under this
1205 section are as set forth in ss. 626.611-626.691 for insurance
1206 representatives in general.
1207 (h)(i) An attorney licensed in this state, when acting in
1208 a professional capacity, is exempt from this subsection.
1209 (i)(j) The department may develop necessary rules to carry
1210 out this section.
1211 Section 21. Subsection (5) of section 626.752, Florida
1212 Statutes, is amended to read:
1213 626.752 Exchange of business.—
1214 (5) Within 15 days after the last day of each month, any
1215 insurer accepting business under this section shall report to
1216 the department the name, address, telephone number, and social
1217 security number of each agent from which the insurer received
1218 more than four personal lines risks during the calendar year,
1219 except for risks being removed from the Citizens Property
1220 Insurance Corporation and placed with that insurer by a
1221 brokering agent. Once the insurer has reported pursuant to this
1222 subsection an agent's name to the department, additional reports
1223 on the same agent shall not be required. However, the fee set
1224 forth in s. 624.501 must be paid for the agent by the insurer
1225 for each year until the insurer notifies the department that the
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1226 insurer is no longer accepting business from the agent pursuant
1227 to this section. The insurer may require that the agent
1228 reimburse the insurer for the fee. If the fee is not paid to the
1229 department within 30 days after the renewal date, the department
1230 shall cancel the exchange of business appointment.
1231 Section 22. Subsection (4) of section 626.793, Florida
1232 Statutes, is amended to read:
1233 626.793 Excess or rejected business.—
1234 (4) Within 15 days after the last day of each month, any
1235 insurer accepting business under this section shall report to
1236 the department the name, address, telephone number, and social
1237 security number of each agent from which the insurer received
1238 more than four risks during the calendar year. Once the insurer
1239 has reported an agent's name to the department pursuant to this
1240 subsection, additional reports on the same agent shall not be
1241 required. However, the fee set forth in s. 624.501 must be paid
1242 for the agent by the insurer for each year until the insurer
1243 notifies the department that the insurer is no longer accepting
1244 business from the agent pursuant to this section. The insurer
1245 may require that the agent reimburse the insurer for the fee. If
1246 the fee is not paid to the department within 30 days after the
1247 renewal date, the department shall cancel the exchange of
1248 business appointment.
1249 Section 23. Subsection (5) of section 626.837, Florida
1250 Statutes, is amended to read:
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1251 626.837 Excess or rejected business.—
1252 (5) Within 15 days after the last day of each month, any
1253 insurer accepting business under this section shall report to
1254 the department the name, address, telephone number, and social
1255 security number of each agent from which the insurer received
1256 more than four risks during the calendar year. Once the insurer
1257 has reported pursuant to this subsection an agent's name to the
1258 department, additional reports on the same agent shall not be
1259 required. However, the fee set forth in s. 624.501 must be paid
1260 for the agent by the insurer for each year until the insurer
1261 notifies the department that the insurer is no longer accepting
1262 business from the agent pursuant to this section. The insurer
1263 may require that the agent reimburse the insurer for the fee. If
1264 the fee is not paid to the department within 30 days after the
1265 renewal date, the department shall cancel the exchange of
1266 business appointment.
1267 Section 24. Section 626.841, Florida Statutes, is amended
1268 to read:
1269 626.841 Definitions.—As used in this part, the term:
1270 (1) "Closing services" means services performed by a title
1271 insurance agent or title insurance agency, or attorney agent in
1272 the agent's or agency's capacity as such, including, but not
1273 limited to, preparing documents necessary to close the
1274 transaction, conducting the closing, or handling the disbursing
1275 of funds related to the closing in a real estate closing
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1276 transaction.
1277 (2) "Title insurance agency" means an insurance agency
1278 under which title insurance agents and other employees determine
1279 insurability in accordance with underwriting rules and standards
1280 prescribed by the title insurer represented by the agency, and
1281 issue and countersign commitments, endorsements, or policies of
1282 title insurance, on behalf of the appointing title insurer. The
1283 term does not include a title insurer.
1284 (3)(1) "Title insurance agent" means a person appointed in
1285 writing by a title insurer to issue and countersign commitments
1286 or policies of title insurance in its behalf.
1287 Section 25. Paragraph (e) is added to subsection (2) of
1288 section 626.8411, Florida Statutes, to read:
1289 626.8411 Application of Florida Insurance Code provisions
1290 to title insurance agents or agencies.—
1291 (2) The following provisions of part I do not apply to
1292 title insurance agents or title insurance agencies:
1293 (e) Section 626.173(1)(c), relating to notifying
1294 policyholders of the agency closure.
1295 Section 26. Subsections (8) through (11) of section
1296 626.8437, Florida Statutes, are renumbered as subsection (9)
1297 through (12), respectively, and a new subsection (8) is ad ded to
1298 that section, read:
1299 626.8437 Grounds for denial, suspension, revocation, or
1300 refusal to renew license or appointment.—The department shall
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1301 deny, suspend, revoke, or refuse to renew or continue the
1302 license or appointment of any title insurance agent or agency,
1303 and it shall suspend or revoke the eligibility to hold a license
1304 or appointment of such person, if it finds that as to the
1305 applicant, licensee, appointee, or any principal thereof, any
1306 one or more of the following grounds exist:
1307 (8) Misappropriation, conversion, or unlawful withholding
1308 of funds received in a fiduciary capacity and held as part of an
1309 escrow agreement, real estate sales contract, or as provided on
1310 a settlement statement in a real estate transaction.
1311 Section 27. Subsections (7) and (8) are added to section
1312 626.844, Florida Statutes, to read:
1313 626.844 Grounds for discretionary refusal, suspension, or
1314 revocation of license or appointment.—The department may, in its
1315 discretion, deny, suspend, revoke, or refuse to renew or
1316 continue the license or appointment of any title insurance agent
1317 or agency, and it may suspend or revoke the eligibility to hold
1318 a license or appointment of any such title insurance agent or
1319 agency if it finds that as to the applicant or licensee or
1320 appointee, or any principal thereof, any one or more of the
1321 following grounds exist under circumstances for which such
1322 denial, suspension, revocation, or refusal is not mandatory
1323 under s. 626.8437:
1324 (7) Having been the subject of, or having had a license,
1325 permit, appointment, registration, or other authority to conduct
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1326 business subject to, any decision, finding, injunction,
1327 suspension, prohibition, revocation, denial, judgment, final
1328 agency action, or administrative order by any court of competent
1329 jurisdiction, administrative law proceeding, state agency,
1330 federal agency, national securities, commodities, or option
1331 exchange, or national securities, commodities, or option
1332 association involving a violation of any federal or state
1333 securities or commodities law or any rule or regulation adopted
1334 thereunder, or a violation of any rule or regulation of any
1335 national securities, commodities, or options exchange or
1336 national securities, commodities, or options association.
1337 (8) Cancellation of the applicant's, licensee's, or
1338 appointee's resident license in a state other than Florida.
1339 Section 28. Section 626.8473, Florida Statutes, is amended
1340 to read:
1341 626.8473 Escrow; trust fund.—
1342 (1) A title insurance agency agent may engage in business
1343 as an escrow agent as to funds received from others to be
1344 subsequently disbursed by the title insurance agent in
1345 connection with real estate closing transactions involving the
1346 issuance of title insurance binders, commitments, policies of
1347 title insurance, or guarantees of title, provided that a
1348 licensed and appointed title insurance agency agent complies
1349 with the requirements of s. 626.8419 s. 626.8417, including such
1350 requirements added after the initial licensure of the agency
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1351 agent.
1352 (2) All funds received by a title insurance agency agent
1353 as described in subsection (1) shall be trust funds received in
1354 a fiduciary capacity by the title insurance agency agent and
1355 shall be the property of the person or persons entitled thereto.
1356 (3) All funds received by a title insurance agency agent
1357 to be held in trust shall be immediately placed in a financial
1358 institution that is located within this state and is a member of
1359 the Federal Deposit Insurance Corporation or the National Credit
1360 Union Share Insurance Fund. These funds shall be invested in an
1361 escrow account in accordance with the investment requirements
1362 and standards established for deposits and investments of state
1363 funds in s. 17.57, where the funds shall be kept until
1364 disbursement thereof is properly authorized.
1365 (4) Funds required to be maintained in escrow trust
1366 accounts pursuant to this section shall not be subject to any
1367 debts of the title insurance agency agent and shall be used only
1368 in accordance with the terms of the individual, escrow,
1369 settlement, or closing instructions under which the fund s were
1370 accepted.
1371 (5) The title insurance agency agents shall maintain
1372 separate records of all receipts and disbursements of escrow,
1373 settlement, or closing funds.
1374 (6) In the event that the department promulgates rules
1375 necessary to implement the requirements of this section pursuant
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1376 to s. 624.308, the department shall consider reasonable
1377 standards necessary for the protection of funds held in trust,
1378 including, but not limited to, standards for accounting of
1379 funds, standards for receipt and disbursement of funds, and
1380 protection for the person or persons to whom the funds are to be
1381 disbursed.
1382 (7) A title insurance agency agent, or any officer,
1383 director, or employee thereof, or any person associated
1384 therewith as an independent contractor for bookkeeping or
1385 similar purposes, who converts or misappropriates funds received
1386 or held in escrow or in trust by such title insurance agency
1387 agent, or any person who knowingly receives or conspires to
1388 receive such funds, commits:
1389 (a) If the funds converted or misappropriated are $300 or
1390 less, a misdemeanor of the first degree, punishable as provided
1391 in s. 775.082 or s. 775.083.
1392 (b) If the funds converted or misappropriated are more
1393 than $300, but less than $20,000, a felony of the third degree,
1394 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
1395 (c) If the funds converted or misappropriated are $20,000
1396 or more, but less than $100,000, a felony of the second degree,
1397 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
1398 (d) If the funds converted or misappropriated are $100,000
1399 or more, a felony of the first degree, punishable as provided in
1400 s. 775.082, s. 775.083, or s. 775.084.
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1401 (8) An attorney shall deposit and maintain all funds
1402 received in connection with transactions in which the attorney
1403 is serving as a title or real estate settlement agent into a
1404 separate trust account that is maintained exclusively for funds
1405 received in connection with such transactions and permit the
1406 account to be audited by its title insurers, unless main taining
1407 funds in the separate account for a particular client would
1408 violate applicable rules of The Florida Bar.
1409 Section 29. Subsection (19) of section 626.854, Florida
1410 Statutes, is amended to read:
1411 626.854 "Public adjuster" defined; prohibitions.—The
1412 Legislature finds that it is necessary for the protection of the
1413 public to regulate public insurance adjusters and to prevent the
1414 unauthorized practice of law.
1415 (19) Except as otherwise provided in this chapter, no
1416 person, except an attorney at law or a licensed and appointed
1417 public adjuster, may for money, commission, or any other thing
1418 of value, directly or indirectly:
1419 (a) Prepare, complete, or file an insurance claim for an
1420 insured or a third-party claimant;
1421 (b) Act on behalf of or aid an insured or a third-party
1422 claimant in negotiating for or effecting the settlement of a
1423 claim for loss or damage covered by an insurance contract;
1424 (c) Offer to initiate or negotiate a claim on behalf of an
1425 insured;
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1426 (d) Advertise services that require a license as a public
1427 adjuster; or
1428 (e) Solicit, investigate, or adjust a claim on behalf of a
1429 public adjuster, an insured, or a third-party claimant.
1430 Section 30. Section 626.874, Florida Statutes, is amended
1431 to read:
1432 626.874 Catastrophe or emergency adjusters.—
1433 (1) In the event of a catastrophe or emergency, the
1434 department may issue a license, for the purposes and under the
1435 conditions and for the period of emergency as it shall
1436 determine, to persons who are residents or nonresidents of this
1437 state, who are at least 18 years of age, who are United States
1438 citizens or legal aliens who possess work authorization from the
1439 United States Bureau of Citizenship and Immigration Services,
1440 and who are not licensed adjusters under this part but who have
1441 been designated and certified to it as qualified to act as
1442 adjusters by an authorized insurer to adjust claims, losses, or
1443 damages under policies or contracts of insurance issued by such
1444 insurers, or by a licensed the primary adjuster of an
1445 independent adjusting firm contracted with an authorized insurer
1446 to adjust claims on behalf of the insurer. The fee for the
1447 license is as provided in s. 624.501(12)(c).
1448 (2) If any person not a licensed adjuster who has been
1449 permitted to adjust such losses, claims, or damages under the
1450 conditions and circumstances set forth in subsection (1),
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1451 engages in any of the misconduct described in or contemplated by
1452 chapter 626 ss. 626.611 and 626.621, the department, without
1453 notice and hearing, shall be authorized to issue its order
1454 denying such person the privileges granted under this section;
1455 and thereafter it shall be unlawful for any such person to
1456 adjust any such losses, claims, or damages in this state.
1457 Section 31. Subsections (7) through (12) of section
1458 626.9957, Florida Statutes, are renumbered as subsections (8)
1459 through (13), respectively, and a new subsection (7) is added to
1460 that section, to read:
1461 626.9957 Conduct prohibited; denial, revocation,
1462 termination, expiration, or suspension of registration.—
1463 (7) If a navigator registered under this part fails to
1464 maintain an active, valid navigator's registration status with
1465 the federal government or an exchange, the navigator's
1466 registration issued under this part shall expire by operation of
1467 law. A navigator with an expired registration may not be granted
1468 subsequent registration until the navigator qualifies as a
1469 first-time applicant.
1470 Section 32. Paragraphs (c) and (g) of subsection (4) of
1471 section 627.351, Florida Statutes, are amended to read:
1472 627.351 Insurance risk apportionment plans.—
1473 (4) MEDICAL MALPRACTICE RISK APPORTIONMENT.—
1474 (c) The Joint Underwriting Association shall operate
1475 subject to the supervision and approval of a board of governors
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1476 consisting of representatives of five of the insurers
1477 participating in the Joint Underwriting Association, an attorney
1478 named by The Florida Bar, a physician named by the Florida
1479 Medical Association, a dentist named by the Florida Dental
1480 Association, and a hospital representative named by the Florida
1481 Hospital Association. The Chief Financial Officer shall select
1482 the representatives of the five insurers or other persons with
1483 experience in medical malpractice insurance as determined by the
1484 Chief Financial Officer. One insurer representative shall be
1485 selected from recommendations of the American Insurance
1486 Association. One insurer representative shall be selected from
1487 recommendations of the Property Casualty Insurers Association of
1488 America. One insurer representative shall be selected from
1489 recommendations of the Florida Insurance Council. Two insu rer
1490 representatives shall be selected to represent insurers that are
1491 not affiliated with these associations. Each board member shall
1492 serve for a 4-year term and may be reappointed, but no member
1493 shall serve more than 8 consecutive years. Vacancies on the
1494 board shall be filled for the remaining period of the term in
1495 the same manner as the initial appointments. During the first
1496 meeting of the board after June 30 of each year, the board shall
1497 choose one of its members to serve as chair of the board and
1498 another member to serve as vice chair of the board. There is no
1499 liability on the part of, and no cause of action shall arise
1500 against, any member insurer, self-insurer, or its agents or
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1501 employees, the Joint Underwriting Association or its agents or
1502 employees, members of the board of governors, or the office or
1503 its representatives for any action taken by them in the
1504 performance of their powers and duties under this subsection.
1505 1. The Chief Financial Officer may remove a board member
1506 from office for misconduct, malfeasance, misfeasance, or neglect
1507 of duty. Any vacancy so created shall be filled as provided in
1508 this paragraph.
1509 2. Board members are subject to the code of ethics under
1510 part III of chapter 112, including, but not limited to, the code
1511 of ethics and public disclosure and reporting of financial
1512 interests, pursuant to s. 112.3145. For purposes of applying
1513 part III of chapter 112 to activities of members of the board of
1514 governors, those persons are considered public officers and the
1515 Joint Underwriting Association is considered their agency.
1516 Notwithstanding s. 112.3143(2), a board member may not vote on
1517 any measure that he or she knows would inure to his or her
1518 special private gain or loss; that he or she knows would inure
1519 to the special private gain or loss of any principal by which he
1520 or she is retained, other than an agency as defined in s.
1521 112.312; or that he or she knows would inure to the special
1522 private gain or loss of a relative or business associate of the
1523 public officer. Before the vote is taken, such board member
1524 shall publicly state to the board the nature of his or her
1525 interest in the matter from which he or she is abstaining from
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1526 voting and, within 15 days after the vote occurs, disclose the
1527 nature of his or her interest as a public record in a memo randum
1528 filed with the person responsible for recording the minutes of
1529 the meeting, who shall incorporate the memorandum in the
1530 minutes.
1531 3. Notwithstanding s. 112.3148, s. 112.3149, or any other
1532 law, an board member may not knowingly accept, directly or
1533 indirectly, any gift or expenditure from a person or entity, or
1534 an employee or representative of such person or entity, which
1535 has a contractual relationship with the Joint Underwriting
1536 Association or which is under consideration for a contract.
1537 4. A board member who fails to comply with subparagraph 2.
1538 or subparagraph 3. is subject to the penalties provided under
1539 ss. 112.317 and 112.3173.
1540 (g)1. All books, records, documents, or audits relating to
1541 the Joint Underwriting Association or its operation shall be
1542 open to public inspection, except that a claim file in the
1543 possession of the Joint Underwriting Association is confidential
1544 and exempt from the provisions of s. 119.07(1) during the
1545 processing of that claim. Any information contained in these
1546 files that identifies an injured person is confidential and
1547 exempt from the provisions of s. 119.07(1).
1548 2.a. All meetings of the board of governors are subject to
1549 the requirements of s. 286.011 and are open to the public for
1550 reasonable inspection, except that a claim file in the
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1551 possession of the Joint Underwriting Association or its
1552 representative is confidential and exempt from the provisions of
1553 s. 119.07(1) and s. 24(a), Art. I of the State Constitution
1554 during the processing of the claim, although medical recor ds and
1555 other portions of the claim file may remain confidential and
1556 exempt as otherwise provided by law.
1557 b. Except in the case of emergency meetings, the Joint
1558 Underwriting Association shall give notice of any board meeting
1559 by publication on the association's website at least 7 days
1560 before the meeting. The association shall prepare and publish a
1561 meeting agenda on its website, along with any meeting materials,
1562 excluding confidential and exempt information, at least 7 days
1563 before the meeting. The agenda shall contain the items to be
1564 considered in order of presentation and a telephone number for
1565 members of the public to participate telephonically at the board
1566 meeting, or login information for members of the public to
1567 participate in a live video conference of the board meeting.
1568 After the agenda has been made available, a change shall be made
1569 only for good cause, as determined by the person designated to
1570 preside, and must be stated in the record. Notification of such
1571 change shall be at the earliest practicable time.
1572 Section 33. Paragraph (b) of subsection (1) of section
1573 627.4133, Florida Statutes, is amended to read:
1574 627.4133 Notice of cancellation, nonrenewal, or renewal
1575 premium.—
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1576 (1) Except as provided in subsection (2):
1577 (b) An insurer issuing a policy providing coverage for
1578 property, casualty, except mortgage guaranty, surety, or marine
1579 insurance, other than motor vehicle insurance subject to s.
1580 627.728 or s. 627.7281, shall give the first-named insured
1581 written notice of cancellation or termination other than
1582 nonrenewal at least 45 days prior to the effective date of the
1583 cancellation or termination, including in the written notice the
1584 reason or reasons for the cancellation or termination, except
1585 that:
1586 1. When cancellation is for nonpayment of premium, at
1587 least 10 days' written notice of cancellation accompanied by the
1588 reason therefor shall be given. As used in this subparagraph and
1589 s. 440.42(3), the term "nonpayment of premium" means failure of
1590 the named insured to discharge when due any of her or his
1591 obligations in connection with the payment of premiums on a
1592 policy or any installment of such premium, whether the premium
1593 is payable directly to the insurer or its agent or indirectly
1594 under any premium finance plan or extension of credit, or
1595 failure to maintain membership in an organization if such
1596 membership is a condition precedent to insurance coverage.
1597 "Nonpayment of premium" also means the failure of a financial
1598 institution to honor an insurance applicant's check after
1599 delivery to a licensed agent for payment of a premium, even if
1600 the agent has previously delivered or transferred the premium to
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1601 the insurer. If a dishonored check represents the initial
1602 premium payment, the contract and all contractual obligations
1603 shall be void ab initio unless the nonpayment is cured within
1604 the earlier of 5 days after actual notice by certified mail is
1605 received by the applicant or 15 days after notice is sent to the
1606 applicant by certified mail or registered mail, and if the
1607 contract is void, any premium received by the insurer from a
1608 third party shall be refunded to that party in full; and
1609 2. When such cancellation or termination occurs during the
1610 first 60 90 days during which the insurance is in force and the
1611 insurance is canceled or terminated for reasons other than
1612 nonpayment of premium, at least 20 days' written notice of
1613 cancellation or termination accompanied by the reason therefor
1614 shall be given except where there has been a material
1615 misstatement or misrepresentation or failure to comply with the
1616 underwriting requirements established by the insurer.
1617
1618 After the policy has been in effect for 90 days, no such policy
1619 shall be canceled by the insurer except when there has been a
1620 material misstatement, a nonpayment of premium, a failure to
1621 comply with underwriting requirements established by the insurer
1622 within 90 days of the date of effectuation of coverage, or a
1623 substantial change in the risk covered by the policy or when the
1624 cancellation is for all insureds under such policies for a given
1625 class of insureds. This subsection does not apply to
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1626 individually rated risks having a policy term of less than 90
1627 days.
1628 Section 34. Section 627.4215, Florida Statutes, is amended
1629 to read:
1630 627.4215 Disclosures to policyholders; coverage of
1631 behavioral health care services.—
1632 (1) A health insurer that offers behavioral health
1633 insurance coverages required by federal and state law shall make
1634 all of the following information available on its website:
1635 (a) The federal and state requirements for coverage of
1636 behavioral health care services.
1637 (b) Contact information for the Division of Consumer
1638 Services of the department, including a hyperlink, for consumers
1639 to submit inquiries or complaints relating to health insurer
1640 products or services regulated by the department or the office.
1641 (2) On an annual basis, a health insurer shall provide a
1642 direct notice to insureds with behavioral health insurance
1643 coverages required by federal and state law which must include a
1644 description of the federal and state requirements for coverage
1645 of behavioral health care services. Such notice must also
1646 include the website address and statewide toll-free telephone
1647 number of the Division of Consumer Services of the department
1648 for receiving and logging complaints.
1649 Section 35. Subsection (3) is added to section 627.426,
1650 Florida Statutes, to read:
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1651 627.426 Claims administration.—
1652 (3) A liability insurer is prohibited from denying
1653 coverage for property and bodily injury liability claims made
1654 against an insured for up to the property and bodily injury
1655 liability limits set in s. 324.021(9) solely based on the
1656 insured's failure to cooperate with the insurer's investigation
1657 unless the insurer can clearly demonstrate by a preponderance of
1658 the evidence that the insured's lack of cooperation has resulted
1659 in actual prejudice to the insurer.
1660 Section 36. Paragraphs (c) through (f) of subsection (4)
1661 of section 627.7015, Florida Statutes, are redesignated as
1662 paragraphs (b) through (e), respectively, subsections (2) and
1663 (3) and present paragraph (b) of subsection (4) of that section
1664 are amended, to read:
1665 627.7015 Alternative procedure for resolution of disputed
1666 property insurance claims.—
1667 (2) At the time of issuance and renewal of a policy or at
1668 the time a first-party claim within the scope of this section is
1669 filed by the policyholder, the insurer shall notify the
1670 policyholder of its right to participate in the mediation
1671 program under this section. An insurer is required to make a
1672 claim determination or elect to repair pursuant to s. 627.70131
1673 before participating in mediation. The department shall prepare
1674 a consumer information pamphlet for distribution to persons
1675 participating in mediation.
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1676 (3) The costs of mediation must be reasonable, and the
1677 insurer must bear all of the cost of conducting mediation
1678 conferences, except as otherwise provided in this section. If a
1679 policyholder fails to appear at the conference, the conference
1680 must be rescheduled upon the policyholder's payment of the costs
1681 of a rescheduled conference. If the insurer fails to appear at
1682 the conference, the insurer must pay the policyholder's actual
1683 cash expenses incurred in attending the conference if the
1684 insurer's failure to attend was not due to a good cause
1685 acceptable to the department. An insurer will be deemed to have
1686 failed to appear if the insurer's representative lacks authority
1687 to settle the full value of the claim. The insurer shall incur
1688 an additional fee for a rescheduled conference necessitated by
1689 the insurer's failure to appear at a scheduled conference. The
1690 fees assessed by the department administrator must include a
1691 charge necessary to defray the expenses of the department
1692 related to its duties under this section and must be deposited
1693 in the Insurance Regulatory Trust Fund. The department may
1694 suspend the insurer's authority to appoint licensees if the
1695 insurer does not timely pay the required fees.
1696 (4) The department shall adopt by rule a property
1697 insurance mediation program to be administered by the department
1698 or its designee. The department may also adopt special rules
1699 which are applicable in cases of an emergency within the state.
1700 The rules shall be modeled after practices and procedures set
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1701 forth in mediation rules of procedure adopted by the Supreme
1702 Court. The rules shall provide for:
1703 (b) Qualifications, denial of application, suspension,
1704 revocation of approval, and other penalties for mediators as
1705 provided in s. 627.745 and the Florida Rules for Certified and
1706 Court-Appointed Mediators.
1707 Section 37. Section 627.7155, Florida Statutes, is created
1708 to read:
1709 627.7155 Collateral protection property insurance;
1710 prohibited practices.—
1711 (1) An insurer or insurance agent may not:
1712 (a) Issue collateral protection insurance on a mortgaged
1713 property:
1714 1. That the insurer or insurance agent or an affiliate of
1715 the insurer or insurance agent owns;
1716 2. For which the insurer or insurance agent or an
1717 affiliate of the insurer or insurance agent performs the
1718 servicing; or
1719 3. If the servicing right to the property is owned by the
1720 insurer or insurance agent or an affiliate of the insurer or
1721 insurance agent;
1722 (b) Compensate a lender, insurer, investor, or servicer,
1723 including through the payment of commissions, on a collateral
1724 protection property insurance policy issued by the insurer;
1725 (c) Share collateral protection property insurance premium
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1726 or risk with the lender, investor, or servicer that obtained the
1727 collateral protection property insurance;
1728 (d) Offer contingent commissions, profit sharing, or other
1729 payments dependent on profitability or loss ratios to any person
1730 affiliated with a servicer or the insurer in connection with
1731 collateral protection property insurance; or
1732 (e) Make any payments, including, but not limited to,
1733 payments of expenses to a lender, insurer, investor, or servicer
1734 for the purpose of securing collateral protection prope rty
1735 insurance business or related outsourced services.
1736 (2) An insurer may not provide free or below-cost
1737 outsourced services to a lender, investor, or servicer, and an
1738 insurer may not outsource its own functions to a lender,
1739 insurance agent, investor, or servicer on an above-cost basis.
1740 Section 38. Section 627.745, Florida Statutes, is amended
1741 to read:
1742 627.745 Mediation of claims.—
1743 (1)(a) In any claim filed with an insurer for personal
1744 injury in an amount of $50,000 $10,000 or less or any claim for
1745 property damage in any amount, arising out of the ownership,
1746 operation, use, or maintenance of a motor vehicle, either party
1747 may demand mediation of the claim prior to the institution of
1748 litigation.
1749 (b) The costs of mediation must be reasonable, and the
1750 insurer must bear all of the cost of conducting mediation
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1751 conferences, except as otherwise provided in this section. If a
1752 policyholder fails to appear at the conference, the conference
1753 must be rescheduled upon the policyholder's payment of the costs
1754 of a rescheduled conference. If the insurer fails to appear at
1755 the conference, the insurer must pay the policyholder's actual
1756 cash expenses incurred in attending the conference if the
1757 insurer's failure to attend was not due to a good cause
1758 acceptable to the department. An insurer is deemed to have
1759 failed to appear if the insurer's representative lacks authority
1760 to settle the full value of the claim. The insurer shall incur
1761 an additional fee for a rescheduled conference necessitated by
1762 the insurer's failure to appear at a scheduled conference. The
1763 fees assessed by the administrator must include a charge
1764 necessary to defray the expenses of the department related to
1765 its duties under this section and must be deposited in the
1766 Insurance Regulatory Trust Fund. The administrator may request
1767 that the department suspend the insurer's authority to appoint
1768 licensees if the insurer does not timely pay the per-mediation-
1769 event administrative fee.
1770 (b) A request for mediation shall be filed with the
1771 department on a form approved by the department. The request for
1772 mediation shall state the reason for the request for mediation
1773 and the issues in dispute which are to be mediated. The filing
1774 of a request for mediation tolls the applicable time
1775 requirements for filing suit for a period of 60 days following
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1776 the conclusion of the mediation process or the time prescribed
1777 in s. 95.11, whichever is later.
1778 (c) The insurance policy must specify in detail the terms
1779 and conditions for mediation of a first-party claim.
1780 (d) The mediation shall be conducted as an informal
1781 process in which formal rules of evidence and procedure need not
1782 be observed. Any party participating in a mediation must have
1783 the authority to make a binding decision. All parties must
1784 mediate in good faith.
1785 (e) The department shall randomly select mediators. Each
1786 party may once reject the mediator selected, either originally
1787 or after the opposing side has exercised its option to reject a
1788 mediator.
1789 (f) Costs of mediation shall be borne equally by both
1790 parties unless the mediator determines that one party has not
1791 mediated in good faith.
1792 (c)(g) Only one mediation may be requested for each claim,
1793 unless all parties agree to further mediation.
1794 (2) Upon receipt of a request for mediation, the
1795 department shall refer the request to a mediator. The mediator
1796 shall notify the applicant and all interested parties, as
1797 identified by the applicant, and any other parties the mediator
1798 believes may have an interest in the mediation, of the date,
1799 time, and place of the mediation conference. The conference may
1800 be held by telephone, if feasible. The mediation conference
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1801 shall be held within 45 days after the request for mediation.
1802 (2)(3)(a) The department shall approve mediators to
1803 conduct mediations pursuant to this section. All mediators must
1804 file an application under oath for approval as a mediator.
1805 (b) To qualify for approval as a mediator, an individual
1806 must meet one of the following qualifications:
1807 1. Possess an active certification as a Florida Supreme
1808 Court certified circuit court mediator. A Florida Supreme Court
1809 certified circuit court mediator in a lapsed, suspended,
1810 sanctioned, or decertified status is not eligible to participate
1811 in the mediation program.
1812 2. Be an approved department mediator as of July 1, 2014,
1813 and have conducted at least one mediation on behalf of the
1814 department within 4 years immediately preceding that date.
1815 (3)(4) The department shall deny an application, or
1816 suspend or revoke its approval, of a mediator to serve in such
1817 capacity if the department finds that one or more of the
1818 following grounds exist:
1819 (a) Lack of one or more of the qualifications specified in
1820 this section for approval.
1821 (b) Material misstatement, misrepresentation, or fraud in
1822 obtaining or attempting to obtain the approval.
1823 (c) Demonstrated lack of fitness or trustworthiness to act
1824 as a mediator.
1825 (d) Fraudulent or dishonest practices in the conduct of
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1826 mediation or in the conduct of business in the financial
1827 services industry.
1828 (e) Violation of any provision of this code or of a la wful
1829 order or rule of the department, violation of the Florida Rules
1830 for Certified and Court-Appointed Mediators, or aiding,
1831 instructing, or encouraging another party in committing such a
1832 violation.
1833
1834 The department may adopt rules to administer this subsection.
1835 (4) The department shall adopt by rule a motor vehicle
1836 claims insurance mediation program to be administered by the
1837 department or its designee. The department may also adopt
1838 special rules that are applicable in cases of an emergency
1839 within the state. The rules shall be modeled after practices and
1840 procedures set forth in mediation rules of procedure adopted by
1841 the Supreme Court. The rules must include:
1842 (a) Reasonable requirements for processing and scheduling
1843 of requests for mediation.
1844 (b) Provisions governing who may attend mediation
1845 conferences.
1846 (c) Selection of mediators.
1847 (d) Criteria for the conduct of mediation conferences.
1848 (e) Right to legal counsel.
1849 (5) The department must adopt rules of procedure for
1850 claims mediation, taking into consideration a system which:
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1851 (a) Is fair.
1852 (b) Promotes settlement.
1853 (c) Avoids delay.
1854 (d) Is nonadversarial.
1855 (e) Uses a framework for modern mediating technique.
1856 (f) Controls of costs and expenses of mediation.
1857 (5) The department may designate an entity or person to
1858 serve as an administrator to carry out any of the provisions of
1859 this section and may take this action by means of a written
1860 contract or agreement.
1861 (6) Disclosures and information divulged in the mediation
1862 process are not admissible in any subsequent action or
1863 proceeding relating to the claim or to the cause of action
1864 giving rise to the claim. A person demanding mediation under
1865 this section may not demand or request mediation after a suit is
1866 filed relating to the same facts already mediated.
1867 Section 39. Subsections (7) through (12) of section
1868 631.141, Florida Statutes, are renumbered as subsections (8)
1869 through (13), respectively, and a new subsection (7) is added to
1870 that section, to read:
1871 631.141 Conduct of delinquency proceeding; domestic and
1872 alien insurers.—
1873 (7) In order to preserve as much as possible the right and
1874 interest of the policyholders whose insurance policies or
1875 similar contracts are affected by the receivership proceedings,
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1876 the department as a domiciliary receiver may:
1877 (a) Use the property of the estate of the insurer to
1878 transfer the insurer's book of business, policies, or similar
1879 contracts of coverage, in whole or in part, to a solvent
1880 assuming insurer or insurers.
1881 (b) Notwithstanding s. 631.195, share records of the
1882 insurer with the prospective solvent assuming insurer or
1883 insurers, but only to the extent necessary to undertake due
1884 diligence for a transfer contemplated under this section.
1885 Section 40. Subsections (1) and (3) of section 631.252,
1886 Florida Statutes, are amended to read:
1887 631.252 Continuation of coverage.—
1888 (1) Unless another insurer, with approval of the
1889 receivership court, assumes or otherwise provides coverage for
1890 the policies of the insolvent insurer, all insurance policies or
1891 similar contracts of coverage, other than coverages defined in
1892 s. 631.713 or health maintenance organization coverage under
1893 part IV, issued by the insurer shall be canceled upon the
1894 earlier earliest to occur of the following:
1895 (a) The date of entry of the liquidation or, if the court
1896 so provides in its order, the expiration of 30 days from the
1897 date of entry of the liquidation order;
1898 (b) The normal expiration of the policy or contract
1899 coverage;
1900 (c) The replacement of the coverage by the insured, or the
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1901 replacement of the policy or contract of coverage, with a policy
1902 or contract acceptable to the insured by the receiver with
1903 another insurer; or
1904 (d) The date proposed by the receiver and approved by the
1905 receivership court to cancel coverage; or
1906 (e)(d) The termination of the coverage by the insured.
1907 (3) The 30-day coverage continuation period provided in
1908 paragraph (1)(a) and s. 631.57(1)(a)1. may not be extended
1909 unless the Chief Financial Officer office determines, based on a
1910 reasonable belief, that market conditions are such that policies
1911 of residential property insurance coverage cannot be placed with
1912 an authorized insurer within 30 days and that an additional 15
1913 days is needed to place such coverage.; and Failure of actual
1914 notice to the policyholder of the insolvency of the insurer, of
1915 commencement of a delinquency proceeding, or of expiration of
1916 the extension period does not affect such expiration.
1917 Section 41. Subsection (1) of section 631.56, Flo rida
1918 Statutes, is amended, and subsections (5) through (10) are added
1919 to that section, to read:
1920 631.56 Board of directors.—
1921 (1) The board of directors of the association shall
1922 consist of not less than five or more than nine persons serving
1923 terms as established in the plan of operation. The department
1924 shall approve and appoint to the board persons recommended by
1925 the member insurers or other persons with experience in property
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1926 and casualty insurance as determined by the Chief Financial
1927 Officer. Of those persons recommended by the member insurers and
1928 appointed by the department, a majority shall be from domestic
1929 insurers. In the event the department finds that any recommended
1930 person does not meet the qualifications for service on the
1931 board, the department shall request the member insurers to
1932 recommend another person. Each member shall serve for a 4-year
1933 term and may be reappointed, but no member shall serve more than
1934 8 consecutive years. Vacancies on the board shall be filled for
1935 the remaining period of the term in the same manner as initial
1936 appointments.
1937 (5) The Chief Financial Officer may remove a board member
1938 from office for misconduct, malfeasance, misfeasance, or neglect
1939 of duty. Any vacancy so created shall be filled as provided in
1940 subsection (1).
1941 (6) Board members are subject to the code of ethics under
1942 part III of chapter 112, including, but not limited to, the code
1943 of ethics and public disclosure and reporting of financial
1944 interests, pursuant to s. 112.3145. For purposes of applying
1945 part III of chapter 112 to activities of members of the board of
1946 directors, those persons are considered public officers and the
1947 association is considered their agency. Notwithstanding s.
1948 112.3143(2), a board member may not vote on any measure that he
1949 or she knows would inure to his or her special private gain or
1950 loss; that he or she knows would inure to the special private
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1951 gain or loss of any principal by which he or she is retained,
1952 other than an agency as defined in s. 112.312; or that he or she
1953 knows would inure to the special private gain or loss of a
1954 relative or business associate of the public officer. Before the
1955 vote is taken, such member shall publicly state to the board the
1956 nature of his or her interest in the matter from which he or she
1957 is abstaining from voting and, within 15 days after the vote
1958 occurs, disclose the nature of his or her interest as a public
1959 record in a memorandum filed with the person responsible for
1960 recording the minutes of the meeting, who shall incorporate the
1961 memorandum in the minutes.
1962 (7) Notwithstanding s. 112.3148, s. 112.3149, or any other
1963 law, a board member may not knowingly accept, directly or
1964 indirectly, any gift or expenditure from a person or entity, or
1965 an employee or representative of such person or entity, which
1966 has a contractual relationship with the association or which is
1967 under consideration for a contract.
1968 (8) A board member who fails to comply with subsection (6)
1969 or subsection (7) is subject to the penalties provided under ss.
1970 112.317 and 112.3173.
1971 (9) All meetings of the board of directors are subject to
1972 the requirements of s. 286.011, and all books, records, and
1973 audits of the plan are open to the public for reasonable
1974 inspection, except that a claim file in the possession of the
1975 association or its representative is confidential and exempt
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1976 from the provisions of s. 119.07(1) and s. 24(a), Art. I of the
1977 State Constitution until termination of litigation or
1978 settlement of the claim, although medical records and other
1979 portions of the claim file may remain confidential and e xempt as
1980 otherwise provided by law.
1981 (10) Except in the case of emergency meetings, the
1982 association shall give notice of any board meeting by
1983 publication on the association's website at least 7 days before
1984 the meeting. The association shall prepare and publish a meeting
1985 agenda on its website, along with any meeting materials,
1986 excluding confidential and exempt information, at least 7 days
1987 before the meeting. The agenda shall contain the items to be
1988 considered in order of presentation and a telephone number for
1989 members of the public to participate telephonically at the board
1990 meeting, or login information for members of the public to
1991 participate in a live video conference of the board meeting.
1992 After the agenda has been made available, a change shall be made
1993 only for good cause, as determined by the person designated to
1994 preside, and must be stated in the record. Notification of such
1995 change shall be at the earliest practicable time.
1996 Section 42. Paragraph (a) of subsection (1) of section
1997 631.716, Florida Statutes, is amended, and subsections (4)
1998 through (9) are added to that section, to read:
1999 631.716 Board of directors.—
2000 (1)(a) The board of directors of the association shall
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2001 have at least 9, but no more than 11, members. The members shall
2002 consist be comprised of member insurers serving terms as
2003 established in the plan of operation and 1 Florida Health
2004 Maintenance Organization Consumer Assistance Plan director
2005 confirmed pursuant to paragraph (b), or other persons with
2006 experience in life and annuity or accident and health insurance
2007 as determined by the Chief Financial Officer. At all times, at
2008 least 1 member of the board member must be a domestic insurer as
2009 defined in s. 624.06(1). The members of the board members who
2010 are member insurers shall be elected by member insurers, subject
2011 to the approval of the department. Each board member shall serve
2012 for a 4-year term and may be reappointed, but no member shall
2013 serve more than 8 consecutive years.
2014 (4) The Chief Financial Officer may remove a board member
2015 from office for misconduct, malfeasance, misfeasance, or neglect
2016 of duty. Any vacancy so created shall be filled as provided in
2017 subsection (1).
2018 (5) Board members are subject to the code of ethics under
2019 part III of chapter 112, including, but not limited to, the code
2020 of ethics and public disclosure and reporting of financial
2021 interests, pursuant to s. 112.3145. For purposes of applying
2022 part III of chapter 112 to activities of members of the board of
2023 directors, those persons are considered public officers and the
2024 association is considered their agency. Notwithstanding s.
2025 112.3143(2), a board member may not vote on any measure that he
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2026 or she knows would inure to his or her special private gain or
2027 loss; that he or she knows would inure to the special private
2028 gain or loss of any principal by which he or she is retained,
2029 other than an agency as defined in s. 112.312; or that he or she
2030 knows would inure to the special private gain or loss of a
2031 relative or business associate of the public officer. Before the
2032 vote is taken, such member shall publicly state to the board the
2033 nature of his or her interest in the matter from which he or she
2034 is abstaining from voting and, within 15 days after the vote
2035 occurs, disclose the nature of his or her interest as a public
2036 record in a memorandum filed with the person responsible for
2037 recording the minutes of the meeting, who shall incorporate the
2038 memorandum in the minutes.
2039 (6) Notwithstanding s. 112.3148, s. 112.3149, or any other
2040 law, a board member may not knowingly accept, directly or
2041 indirectly, any gift or expenditure from a person or entity, or
2042 an employee or representative of such person or entity, which
2043 has a contractual relationship with the association or which is
2044 under consideration for a contract.
2045 (7) A board member who fails to comply with subsection (5)
2046 or subsection (6) is subject to the penalties provided under ss.
2047 112.317 and 112.3173.
2048 (8) All meetings of the board of directors are subject to
2049 the requirements of s. 286.011, and all books, records, and
2050 audits of the association are open to the public for reasonable
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2051 inspection, except that records of negotiations and meetings in
2052 which the association or its representatives discuss the
2053 activities of the association in carrying out its powers and
2054 duties may remain confidential and exempt from the provisions of
2055 s. 119.07(1) and s. 24(a), Art. I of the State Constitution
2056 until the termination of a delinquency proceeding, may remain
2057 confidential and exempt as otherwise provided by law.
2058 (9) Except in the case of emergency meetings, the
2059 association shall give notice of any board meeting by
2060 publication on the association's website at least 7 days before
2061 the meeting. The association shall prepare and publish a meeting
2062 agenda on its website, along with any meeting materials,
2063 excluding confidential and exempt information, at least 7 days
2064 before the meeting. The agenda shall contain the items to be
2065 considered in order of presentation and a telephone number for
2066 members of the public to participate telephonically at the board
2067 meeting, or login information for members of the public to
2068 participate in a live video conference of the board meeting.
2069 After the agenda has been made available, a change shall be made
2070 only for good cause, as determined by the person designated to
2071 preside, and must be stated in the record. Notification of such
2072 change shall be at the earliest practicable time.
2073 Section 43. Subsection (1) of section 631.816, Florida
2074 Statutes, is amended, and subsections (8) through (13) are added
2075 to that section, to read:
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2076 631.816 Board of directors.—
2077 (1) The board of directors of the plan shall consist of
2078 not less than five or more than nine persons serving terms as
2079 established in the plan of operation. The department shall
2080 approve and appoint to the board persons recommended by the
2081 member HMOs or other persons with experience in health insurance
2082 as determined by the Chief Financial Officer. In the event the
2083 department finds that any recommended person does not meet the
2084 qualifications for service on the board, the department shall
2085 request the member HMOs to recommend another person. Each member
2086 shall serve for a 4-year term and may be reappointed, except
2087 that terms may be staggered as defined in the plan of operation.
2088 No member shall serve more than 8 consecutive years. Vacancies
2089 on the board shall be filled for the remaining period of the
2090 term in the same manner as initial appointments. In determining
2091 voting rights, each HMO is entitled to vote on the basis of
2092 cumulative weighted voting based on the net written premium for
2093 non-Medicare and non-Medicaid policies.
2094 (8) The Chief Financial Officer may remove a board member
2095 from office for misconduct, malfeasance, misfeasance, or neglect
2096 of duty. Any vacancy so created shall be filled as provided in
2097 subsection (1).
2098 (9) Board members are subject to the code of ethics under
2099 part III of chapter 112, including, but not limited to, the code
2100 of ethics and public disclosure and reporting of financial
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2101 interests, pursuant to s. 112.3145. For purposes of applying
2102 part III of chapter 112 to activities of members of the board of
2103 directors, those persons are considered public officers and the
2104 plan is considered their agency. Notwithstanding s. 112.3143(2),
2105 a board member may not vote on any measure that he or she knows
2106 would inure to his or her special private gain or loss; that he
2107 or she knows would inure to the special private gain or loss of
2108 any principal by which he or she is retained, other than an
2109 agency as defined in s. 112.312; or that he or she knows would
2110 inure to the special private gain or loss of a relative or
2111 business associate of the public officer. Before the vote is
2112 taken, such member shall publicly state to the board the nature
2113 of his or her interest in the matter from which he or she is
2114 abstaining from voting and, within 15 days after the vote
2115 occurs, disclose the nature of his or her interest as a public
2116 record in a memorandum filed with the person responsible for
2117 recording the minutes of the meeting, who shall incorporate the
2118 memorandum in the minutes.
2119 (10) Notwithstanding s. 112.3148, s. 112.3149, or any
2120 other law, a board member may not knowingly accept, directly or
2121 indirectly, any gift or expenditure from a person or entity, or
2122 an employee or representative of such person or entity, which
2123 has a contractual relationship with the plan or which is under
2124 consideration for a contract.
2125 (11) A board member who fails to comply with subsection
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2126 (9) or subsection (10) is subject to the penalties provided
2127 under ss. 112.317 and 112.3173.
2128 (12) All meetings of the board of directors are subject to
2129 the requirements of s. 286.011, and all books, records, and
2130 audits of the plan are open to the public for reasonable
2131 inspection, except that records of an insolvent HMO in
2132 liquidation, rehabilitation, or revocation proceedings are
2133 confidential and exempt from the provisions of s. 119.07(1) and
2134 s. 24(a), Art. I of the State Constitution until termination of
2135 the liquidation, rehabilitation, or revocation proceedings.
2136 (13) Except in the case of emergency meetings, the plan
2137 shall give notice of any board meeting by publication on the
2138 plan's website at least 7 days before the meeting. The plan
2139 shall prepare and publish a meeting agenda on its website, along
2140 with any meeting materials, excluding confidential and exempt
2141 information, at least 7 days before the meeting. The agenda
2142 shall contain the items to be considered in order of
2143 presentation and a telephone number for members of the public to
2144 participate telephonically at the board meeting, or login
2145 information for members of the public to participate in a live
2146 video conference of the board meeting. After the agenda has been
2147 made available, a change shall be made only for good cause, as
2148 determined by the person designated to preside, and must be
2149 stated in the record. Notification of such change shall be at
2150 the earliest practicable time.
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2151 Section 44. Subsection (1) of section 631.912, Florida
2152 Statutes, is amended, and subsections (4) through (8) are added
2153 to that section, to read:
2154 631.912 Board of directors.—
2155 (1) The board of directors of the corporation shall
2156 consist of 11 persons, 1 of whom is the insurance consumer
2157 advocate appointed under s. 627.0613 or designee and 1 of whom
2158 is designated by the Chief Financial Officer. The department
2159 shall appoint to the board 6 persons selected by private
2160 carriers from among the 20 workers' compensation insurers with
2161 the largest amount of direct written premium as determined by
2162 the department, and 2 persons selected by the self-insurance
2163 funds or other persons with experience in workers' compensation
2164 insurance as determined by the Chief Financial Officer. The
2165 Governor shall appoint one person who has commercial insurance
2166 experience. At least two of the private carriers shall be
2167 foreign carriers authorized to do business in this state. The
2168 board shall elect a chairperson from among its members. The
2169 Chief Financial Officer may remove any board member for cause.
2170 Each board member shall be appointed to serve a 4-year term and
2171 may be reappointed, but no member shall serve more than 8
2172 consecutive years. A vacancy on the board shall be filled for
2173 the remaining period of the term in the same manner by which the
2174 original appointment was made.
2175 (4) Board members are subject to the code of ethics under
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2176 part III of chapter 112, including, but not limited to, the code
2177 of ethics and public disclosure and reporting of financial
2178 interests, pursuant to s. 112.3145. For purposes of applying
2179 part III of chapter 112 to activities of members of the board of
2180 directors, those persons are considered public officers and the
2181 corporation is considered their agency. Notwithstanding s.
2182 112.3143(2), a board member may not vote on any measure that he
2183 or she knows would inure to his or her special private gain or
2184 loss; that he or she knows would inure to the special private
2185 gain or loss of any principal by which he or she is retained,
2186 other than an agency as defined in s. 112.312; or that he or she
2187 knows would inure to the special private gain or loss of a
2188 relative or business associate of the public office r. Before the
2189 vote is taken, such member shall publicly state to the board the
2190 nature of his or her interest in the matter from which he or she
2191 is abstaining from voting and, within 15 days after the vote
2192 occurs, disclose the nature of his or her interest as a public
2193 record in a memorandum filed with the person responsible for
2194 recording the minutes of the meeting, who shall incorporate the
2195 memorandum in the minutes.
2196 (5) Notwithstanding s. 112.3148, s. 112.3149, or any other
2197 law, a board member may not knowingly accept, directly or
2198 indirectly, any gift or expenditure from a person or entity, or
2199 an employee or representative of such person or entity, which
2200 has a contractual relationship with the corporation or which is
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2201 under consideration for a contract.
2202 (6) A board member who fails to comply with subsection (4)
2203 or subsection (5) is subject to the penalties provided under ss.
2204 112.317 and 112.3173.
2205 (7) All meetings of the board of directors are subject to
2206 the requirements of s. 286.011, and all books and r ecords are
2207 open to the public for reasonable inspection, except that
2208 negotiations held between an insurer and the corporation are
2209 confidential and exempt from the provisions of s. 119.07(1) and
2210 s. 24(a), Art. I of the State Constitution and as otherwise
2211 provided by law.
2212 (8) Except in the case of emergency meetings, the
2213 corporation shall give notice of any board meeting by
2214 publication on the corporation's website at least 7 days before
2215 the meeting. The corporation shall prepare and publish a meeting
2216 agenda on its website, along with any meeting materials,
2217 excluding confidential and exempt information, at least 7 days
2218 before the meeting. The agenda shall contain the items to be
2219 considered in order of presentation and a telephone number for
2220 members of the public to participate telephonically at the board
2221 meeting, or login information for members of the public to
2222 participate in a live video conference of the board meeting.
2223 After the agenda has been made available, a change shall be made
2224 only for good cause, as determined by the person designated to
2225 preside, and must be stated in the record. Notification of such
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2226 change shall be at the earliest practicable time.
2227 Section 45. Section 633.1423, Florida Statutes, is created
2228 to read:
2229 633.1423 State Fire Marshal direct-support organization.—
2230 (1) DEFINITION.—As used in this section, the term
2231 "organization" means the direct-support organization established
2232 under this section.
2233 (2) ORGANIZATION ESTABLISHED.—The division may establish a
2234 direct-support organization, to be known as the "State Fire
2235 Marshal Safety and Training Force," whose sole purpose is to
2236 support the safety and training of firefighters and to recognize
2237 exemplary service. The organization must:
2238 (a) Be a not-for-profit corporation incorporated under
2239 chapter 617 and approved by the Department of State.
2240 (b) Be organized and operated to raise funds; request and
2241 receive grants, gifts, and bequests of money; conduct programs
2242 and activities; acquire, receive, hold, invest, and administer,
2243 in its own name, securities, funds, or property; and make grants
2244 and expenditures to or for the direct or indirect benefit of the
2245 division. Grants and expenditures may include the cost of
2246 education or training of firefighters, or the recognition of
2247 exemplary service of firefighters.
2248 (c) Be determined by the division to operate in a manner
2249 that is:
2250 1. Consistent with the goals of the division and laws
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2251 relating to the safety and training of firefighters.
2252 2. In the best interest of the state.
2253 3. In accordance with the adopted goals and mission of the
2254 division.
2255 (d) Use all of its grants and expenditures solely for the
2256 purpose of educating, training, and recognizing firefighters,
2257 and not for advertising using the likeness or name of any
2258 elected official nor for the purpose of lobbying as defined in
2259 s. 11.045(1).
2260 (e) Be subject to an annual financial audit in accordance
2261 with s. 215.981.
2262 (3) CONTRACT.—The organization shall operate under written
2263 contract with the division. The contract must provide for:
2264 (a) Certification by the division that the organization is
2265 complying with the terms of the contract and in a manner
2266 consistent with the goals and purposes of the department and in
2267 the best interest of the state. Such certification must be made
2268 annually and reported in the official minutes of a meeting of
2269 the organization.
2270 (b) The reversion of moneys and property held by the
2271 organization for firefighter safety, training, and recognition
2272 to the division if the organization is no longer approved to
2273 operate by the division or if the organization ceases to exist,
2274 or to the state if the division ceases to exist.
2275 (4) BOARD OF DIRECTORS.—The organization shall be governed
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2276 by a board of directors. The State Fire Marshal, or his or her
2277 designee, shall appoint a president of the board. The board of
2278 directors shall be appointed by the president of the board.
2279 (5) USE OF PROPERTY.—The division may authorize, without
2280 charge, appropriate use of fixed property and facilities of the
2281 division by the organization, subject to this subsection.
2282 (a) The department may prescribe any condition with which
2283 the organization must comply in order to use the division's
2284 property or facilities.
2285 (b) The department may not authorize the use of the
2286 division's property or facilities if the organization does not
2287 provide equal membership and employment opportunities to all
2288 persons regardless of race, religion, sex, age, or national
2289 origin.
2290 (c) The department shall adopt rules prescribing the
2291 procedures by which the organization is governed and any
2292 conditions with which the organization must comply to use the
2293 division's property or facilities.
2294 (6) DEPOSITORY ACCOUNT.—Any moneys received by the
2295 organization may be held in a separate depository account in the
2296 name of the organization and subject to the contract with the
2297 division.
2298 (7) ANNUAL BUDGETS AND REPORTS.—The organization shall
2299 submit to the division its annual budget and financial reports,
2300 its federal Internal Revenue Service Application for Recognition
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2301 of Exemption form (Form 1023), and its federal Internal Revenue
2302 Service Return of Organization Exempt from Income Tax form (Form
2303 990).
2304 (8) ANNUAL AUDIT.—The organization shall provide for an
2305 annual financial audit in accordance with s. 215.981.
2306 (9) DIVISION'S RECEIPT OF PROCEEDS.—Proceeds received by
2307 the division from the organization shall be deposited into the
2308 Insurance Regulatory Trust Fund.
2309 Section 46. Section 634.171, Florida Statutes, is amended
2310 to read:
2311 634.171 Salesperson to be licensed and appointed. —
2312 (1) Salespersons for motor vehicle service agreement
2313 companies and insurers shall be licensed, appointed, renewed,
2314 continued, reinstated, or terminated as prescribed in chapter
2315 626 for insurance representatives in general. However, they
2316 shall be exempt from all other provisions of chapter 626
2317 including fingerprinting, photo identification, education, and
2318 examination provisions. License, appointment, and other fees
2319 shall be those prescribed in s. 624.501. A licensed and
2320 appointed salesperson shall be directly responsible and
2321 accountable for all acts of her or his employees and other
2322 representatives. Each service agreement company or insurer
2323 shall, on forms prescribed by the department, within 30 days
2324 after termination of the appointment, notify the department of
2325 such termination. No employee or salesperson of a motor vehicle
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2326 service agreement company or insurer may directly or indirectly
2327 solicit or negotiate insurance contracts, or hold herself or
2328 himself out in any manner to be an insurance agent, unless so
2329 qualified, licensed, and appointed therefor under the Florida
2330 Insurance Code. A motor vehicle service agreement company is not
2331 required to be licensed as a salesperson to solicit, sell,
2332 issue, or otherwise transact the motor vehicle service
2333 agreements issued by the motor vehicle service agreement
2334 company.
2335 (2) The department may issue a license to a nonresident
2336 applicant if the applicant is licensed as a salesperson for
2337 motor vehicle service agreement companies and insurers in the
2338 applicant's home state and if the applicant's home state has
2339 entered into a reciprocal agreement with the department. A
2340 nonresident applicant must submit to the department a copy of a
2341 certificate or letter of authorization from the licensing
2342 authority of the applicant's home state stating that the
2343 applicant holds a current license to act as a salesperson for
2344 motor vehicle service agreement companies and insurers. A
2345 nonresident salesperson for motor vehicle service agreement
2346 companies and insurers shall, at all times while licensed in
2347 this state, maintain the salesperson's home state license as a
2348 salesperson for motor vehicle service agreement companies and
2349 insurers. A nonresident salesperson for motor vehicle service
2350 agreement companies and insurers shall notify the department of
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2351 any lapse, suspension, or revocation of the salesperson's home
2352 state license within 5 days after the lapse, suspension, or
2353 revocation.
2354 (3) Upon becoming a resident of this state, an individual
2355 who holds a Florida nonresident salesperson for motor vehicle
2356 service agreement companies and insurers license may, for a
2357 period not to exceed 90 days, continue to transact in this state
2358 under the nonresident license. Such individual must apply for
2359 resident licensure and must become licensed as a resident
2360 salesperson for motor vehicle service agreement companies and
2361 insurers within 90 days after becoming a resident of this state.
2362 Section 47. Section 634.181, Florida Statutes, is amended
2363 to read:
2364 634.181 Grounds for compulsory refusal, suspension, or
2365 revocation of license or appointment of salespersons.—
2366 (1) The department shall deny, suspend, revoke, or refuse
2367 to renew or continue the license or appointment of any such
2368 salesperson if it finds that as to the salesperson any one or
2369 more of the following applicable grounds exist:
2370 (a)(1) Material misstatement, misrepresentation, or fraud
2371 in obtaining or attempting to obtain the license or appointment.
2372 (b)(2) If the license or appointment is willfully used, or
2373 to be used, to circumvent any of the requirements or
2374 prohibitions of this part, any applicable provision of the
2375 Florida Insurance Code, or rule of the department or commission.
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2376 (c)(3) Willful misrepresentation of any service agreement
2377 or willful deception with regard to any agreement, done either
2378 in person or by any form of dissemination of information or
2379 advertising.
2380 (d)(4) If in the adjustment of claims arising out of
2381 service agreements, she or he has materially misrepresented to a
2382 service agreement holder or other interested party the terms and
2383 coverage of a service agreement with intent and for the purpose
2384 of effecting settlement of the claim on less favorable terms
2385 than those provided in and contemplated by the service
2386 agreement.
2387 (e)(5) For demonstrated lack of fitness or trustworthiness
2388 to engage in the service agreement business.
2389 (f)(6) For demonstrated lack of adequate knowledge and
2390 technical competence to engage in the transactions authori zed by
2391 the license or appointment.
2392 (g)(7) Fraudulent or dishonest practices in the conduct of
2393 business under the license or appointment.
2394 (h)(8) Misappropriation, conversion, or unlawful
2395 withholding of moneys belonging to a service agreement company,
2396 insurer, or service agreement holder or to others and received
2397 in the conduct of business under the license or appointment.
2398 (i)(9) For unlawfully rebating, or attempt thereat, or for
2399 unlawfully dividing or offering to divide her or his commission
2400 with another.
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2401 (j)(10) Willful failure to comply with, or willful
2402 violation of any proper order of the department or office, or
2403 willful violation of any provision of this part, or of any
2404 applicable provision of the insurance code, or applicable rule
2405 of the department or commission.
2406 (k)(11) Having been found guilty of, or having pleaded
2407 guilty or nolo contendere to, a felony or a crime punishable by
2408 imprisonment of 1 year or more under the law of the United
2409 States of America or any state thereof or under the law of any
2410 other country which involves moral turpitude, without regard to
2411 whether a judgment of conviction has been entered by the court
2412 having jurisdiction of the cases.
2413 (l)(12) Failure to refund unearned pro rata commission to
2414 the agreement holder or the service agreement company, if the
2415 service agreement company is making a full unearned pro rata
2416 refund to the agreement holder.
2417 (m) Having been the subject of, or having had a license,
2418 permit, appointment, registration, or other authority to conduct
2419 business subject to, any decision, finding, injunction,
2420 suspension, prohibition, revocation, denial, judgment, final
2421 agency action, or administrative order by any court of competent
2422 jurisdiction, administrative law proceeding, state agency,
2423 federal agency, national securities, commodities, or options
2424 exchange, or national securities, commodities, or options
2425 association involving a violation of any federal or state
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2426 securities or commodities law or any rule or regulation adopted
2427 thereunder, or a violation of any rule or regulation of any
2428 national securities, commodities, or options exchange or
2429 national securities, commodities, or options association.
2430 (2) When a licensee is charged with a felony enumerated in
2431 s. 626.207(2), the department shall, immediately upon re ceipt of
2432 information on or indictment for the felony, temporarily suspend
2433 a license or appointment issued under this chapter. Such
2434 suspension shall continue if the licensee is found guilty of, or
2435 pleads guilty or nolo contendere to, the crime, regardless o f
2436 whether a judgment or conviction is entered, during a pending
2437 appeal. A person may not transact insurance business after
2438 suspension of his or her license or appointment.
2439 (3) The department may adopt rules to administer this
2440 section.
2441 Section 48. Section 634.191, Florida Statutes, is amended
2442 to read:
2443 634.191 Grounds for discretionary refusal, suspension, or
2444 revocation of license or appointment of salespersons. —
2445 (1) The department may, in its discretion, deny, suspend,
2446 revoke, or refuse to renew or continue the license or
2447 appointment of any salesperson if it finds that as to the
2448 salesperson any one or more of the following applicable grounds
2449 exist under circumstances for which such denial, suspension,
2450 revocation, or refusal is not mandatory under s. 634.181:
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2451 (a)(1) For any cause for which granting of the license or
2452 appointment could have been refused had it then existed and been
2453 known to the department.
2454 (b)(2) Violation of any provision of this part or of any
2455 other law applicable to the business of service agreements in
2456 the course of dealings under the license or appointment.
2457 (c)(3) Violation of Has violated any lawful order or rule
2458 of the department or commission.
2459 (d)(4) Failure or refusal, upon demand, to pay over to any
2460 company or insurer the salesperson represents or has represented
2461 any money coming into her or his hands belonging to the company
2462 or insurer.
2463 (e)(5) If, in the conduct of business under the license or
2464 appointment, the salesperson has engaged in unfair methods of
2465 competition or in unfair or deceptive acts or practices, as such
2466 methods, acts, or practices are or may be defined under this
2467 part, or has otherwise shown herself or himself to be a source
2468 of injury or loss to the public or detrimental to the public
2469 interest.
2470 (f)(6) Failure to report to the department within 30 days
2471 the final disposition of an administrative action taken against
2472 a salesperson by a governmental agency or other reg ulatory
2473 agency in this state or any other state or jurisdiction relating
2474 to the business of insurance, the sale of securities, or an
2475 activity involving fraud, dishonesty, trustworthiness, or breach
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2476 of a fiduciary duty. The salesperson must submit a copy of the
2477 order, consent to order, or other relevant legal documents to
2478 the department Having been found guilty of, or having pleaded
2479 guilty or nolo contendere to, a felony or a crime punishable by
2480 imprisonment of 1 year or more under the law of the United
2481 States of America or any state thereof or under the law of any
2482 other country, without regard to whether a judgment of
2483 conviction has been entered by the court having jurisdiction of
2484 the cases.
2485 (2) The department may adopt rules to administer this
2486 section.
2487 Section 49. Section 634.320, Florida Statutes, is amended
2488 to read:
2489 634.320 Grounds for compulsory refusal, suspension, or
2490 revocation of license or appointment of sales representatives.—
2491 (1) The department shall deny, suspend, revoke, or refuse
2492 to renew or continue the license or appointment of any sales
2493 representative if it is found that any one or more of the
2494 following grounds applicable to the sales representative exist:
2495 (a)(1) Material misstatement, misrepresentation, or fraud
2496 in obtaining or attempting to obtain a license or appointment.
2497 (b)(2) The license or appointment is willfully used, or to
2498 be used, to circumvent any of the requirements or prohibitions
2499 of this part.
2500 (c)(3) Willful misrepresentation of any warranty contract
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2501 or willful deception with regard to any such contract, done
2502 either in person or by any form of dissemination of information
2503 or advertising.
2504 (d)(4) In the adjustment of claims arising out of
2505 warranties, material misrepresentation to a warranty holder or
2506 other interested party of the terms and coverage of a contract,
2507 with the intent and for the purpose of effecting settlement of
2508 such claim on less favorable terms than those provided in and
2509 contemplated by the contract.
2510 (e)(5) Demonstrated lack of fitness or trustworthiness to
2511 engage in the business of home warranty.
2512 (f)(6) Demonstrated lack of adequate knowledge and
2513 technical competence to engage in the transactions authorized by
2514 the license or appointment.
2515 (g)(7) Fraudulent or dishonest practices in the conduct of
2516 business under the license or appointment.
2517 (h)(8) Misappropriation, conversion, or unlawful
2518 withholding of moneys belonging to an association, insurer, or
2519 warranty holder, or to others, and received in the conduct of
2520 business under the license or appointment.
2521 (i)(9) Unlawfully rebating, or attempting to unlawfully
2522 rebate, or unlawfully dividing, or offering to divide, her or
2523 his commission with another.
2524 (j)(10) Willful failure to comply with, or willful
2525 violation of, any proper order or rule of the department or
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2526 commission or willful violation of any provision of this part.
2527 (k)(11) Being found guilty of or pleading guilty or nolo
2528 contendere to a felony or a crime punishable by imprisonment of
2529 1 year or more under the law of the United States of America or
2530 any state thereof or under the law of any other country
2531 involving moral turpitude, without regard to whether judgment of
2532 conviction has been entered by the court.
2533 (l) Having been the subject of, or having had a license,
2534 permit, appointment, registration, or other authority to conduct
2535 business subject to, any decision, finding, injunction,
2536 suspension, prohibition, revocation, denial, judgment, final
2537 agency action, or administrative order by any court of competent
2538 jurisdiction, administrative law proceeding, state agency,
2539 federal agency, national securities, commodities, or options
2540 exchange, or national securities, commodities, or options
2541 association involving a violation of any federal or state
2542 securities or commodities law or any rule or regulation adopted
2543 thereunder, or a violation of any rule or regulation of any
2544 national securities, commodities, or options exchange or
2545 national securities, commodities, or options association.
2546 (2) When a licensee is charged with a felony enumerated in
2547 s. 626.207(2), the department shall, immediately upon receipt of
2548 information on or indictment for the felony, temporarily suspend
2549 a license or appointment issued under this chapter. Such
2550 suspension shall continue if the licensee is found guilty of, or
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2551 pleads guilty or nolo contendere to, the crime, regardless of
2552 whether a judgment or conviction is entered, during a pending
2553 appeal. A person may not transact insurance business after
2554 suspension of his or her license or appointment.
2555 (3) The department may adopt rules to administer this
2556 section.
2557 Section 50. Section 634.321, Florida Statutes, is amended
2558 to read:
2559 634.321 Grounds for discretionary refusal, suspension, or
2560 revocation of license or appointment of sales representatives.—
2561 (1) The department may, in its discretion, deny, suspend,
2562 revoke, or refuse to renew or continue the license or
2563 appointment of any sales representative if it is found that any
2564 one or more of the following grounds applicable to the sales
2565 representative exist under circumstances for which such denial,
2566 suspension, revocation, or refusal is not mandatory under s.
2567 634.320:
2568 (a)(1) Any cause for which granting of the license or
2569 appointment could have been refused had it then existed and been
2570 known to the department.
2571 (b)(2) Violation of any provision of this part, or of any
2572 other law applicable to the business of warranties, in the
2573 course of dealings under the license or appointment.
2574 (c)(3) Violation of any lawful order or rule of the
2575 department or commission.
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2576 (d)(4) Failure or refusal to pay over, upon demand, to any
2577 home warranty association or insurer the sales representative
2578 represents or has represented any money coming into her or his
2579 hands which belongs to the association or insurer.
2580 (e)(5) In the conduct of business under the license or
2581 appointment, engaging in unfair methods of competition or in
2582 unfair or deceptive acts or practices, as such methods, acts, or
2583 practices are or may be defined under this part, or otherwise
2584 showing herself or himself to be a source of injury or loss to
2585 the public or detriment to the public interest.
2586 (f)(6) Failure to report to the department within 30 days
2587 the final disposition of an administrative action taken against
2588 a salesperson by a governmental agency or other regulatory
2589 agency in this state or any other state or jurisdiction relating
2590 to the business of insurance, the sale of securities, or an
2591 activity involving fraud, dishonesty, trustworthiness, or breach
2592 of a fiduciary duty. The sales representative must submit a copy
2593 of the order, consent to order, or other relevant legal
2594 documents to the department Being found guilty of or pleading
2595 guilty or nolo contendere to a felony or a crime punishable by
2596 imprisonment of 1 year or more under the law of the United
2597 States of America or any state thereof or under the law of any
2598 other country, without regard to whether a judgment of
2599 conviction has been entered by the court.
2600 (2) The department may adopt rules to administer this
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2601 section.
2602 Section 51. Paragraphs (d), (e), and (f) of subsection
2603 (17) of section 634.401, Florida Statutes, are amended to read:
2604 634.401 Definitions.—As used in this part, the term:
2605 (17) "Manufacturer" means any entity or its affiliate
2606 which:
2607 (d) Maintains outstanding debt obligations, if any, rated
2608 in the top four rating categories by a recognized rating
2609 service;
2610 (d)(e) Has and maintains at all times, a minimum net worth
2611 of at least $100 $10 million as evidenced by certified financial
2612 statements prepared by an independent certified public
2613 accountant in accordance with generally accepted accounting
2614 principles; and
2615 (e)(f) Is authorized to do business in this state.
2616 Section 52. Paragraph (a) of subsection (7) of section
2617 634.406, Florida Statutes, is amended to read:
2618 634.406 Financial requirements.—
2619 (7) An association licensed under this part and holding no
2620 other license under part I or part II of this chapter is not
2621 required to establish an unearned premium reserve or maintain
2622 contractual liability insurance and may allow its premiums to
2623 exceed the ratio to net assets limitation of this section if the
2624 association complies with the following:
2625 (a) The association or, if the association is a direct or
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2626 indirect wholly owned subsidiary of a parent corporation, its
2627 parent corporation has, and maintains at all times, a minimum
2628 net worth of at least $100 million and provides the office with
2629 the following:
2630 1. A copy of the association's annual audited financial
2631 statements or the audited consolidated financial statements of
2632 the association's parent corporation, prepared by an independent
2633 certified public accountant in accordance with generally
2634 accepted accounting principles, which clearly demonstrate the
2635 net worth of the association or its parent corporation to be
2636 $100 million and a quarterly written certification to the office
2637 that such entity continues to maintain the net worth required
2638 under this paragraph.
2639 2. The association's, or its parent corporation's, Form
2640 10-K, Form 10-Q, or Form 20-F as filed with the United States
2641 Securities and Exchange Commission or such other documents
2642 required to be filed with a recognized stock exchange, which
2643 shall be provided on a quarterly and annual basis within 10 days
2644 after the last date each such report must be filed with the
2645 Securities and Exchange Commission, the National Association of
2646 Security Dealers Automated Quotation system, or other recognized
2647 stock exchange.
2648
2649 Failure to timely file the documents required under this
2650 paragraph may, at the discretion of the office, subject the
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2651 association to suspension or revocation of its license under
2652 this part. An association or parent corporation demonstrating
2653 compliance with subparagraphs 1. and 2. must maintain
2654 outstanding debt obligations, if any, rated in the top four
2655 rating categories by a recognized rating service.
2656 Section 53. Section 634.422, Florida Statutes, is amended
2657 to read:
2658 634.422 Grounds for compulsory refusal, suspension, or
2659 revocation of license or appointment of sales representatives.—
2660 (1) The department shall deny, suspend, revoke, or refuse
2661 to renew or continue the license or appointment of any sales
2662 representative if it is found that any one or more of the
2663 following grounds applicable to the sales representative exist:
2664 (a)(1) Material misstatement, misrepresentation, or fraud
2665 in obtaining or attempting to obtain a license or appointment.
2666 (b)(2) The license or appointment is willfully used, or to
2667 be used, to circumvent any of the requirements or prohibitions
2668 of this part.
2669 (c)(3) Willful misrepresentation of any service warranty
2670 contract or willful deception with regard to any such contract,
2671 done either in person or by any form of dissemination of
2672 information or advertising.
2673 (d)(4) In the adjustment of claims arising out of
2674 warranties, material misrepresentation to a service warranty
2675 holder or other interested party of the terms and coverage of a
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2676 contract with the intent and for the purpose of effecting
2677 settlement of the claim on less favorable terms than those
2678 provided in and contemplated by the contract.
2679 (e)(5) Demonstrated lack of fitness or trustworthiness to
2680 engage in the business of service warranty.
2681 (f)(6) Demonstrated lack of adequate knowledge and
2682 technical competence to engage in the transactions authorized by
2683 the license or appointment.
2684 (g)(7) Fraudulent or dishonest practices in the conduct of
2685 business under the license or appointment.
2686 (h)(8) Misappropriation, conversion, or unlawful
2687 withholding of moneys belonging to an association, insurer, or
2688 warranty holder, or to others, and received in the conduct of
2689 business under the license or appointment.
2690 (i)(9) Unlawfully rebating, or attempting to unlawfully
2691 rebate, or unlawfully dividing, or offering to divide, her or
2692 his commission with another.
2693 (j)(10) Willful failure to comply with, or willful
2694 violation of, any proper order or rule of the department or
2695 commission, or willful violation of any provision of this part.
2696 (k)(11) Being found guilty of or pleading nolo contendere
2697 to a felony or a crime punishable by imprisonment of 1 year or
2698 more under the law of the United States of America or any state
2699 thereof or under the law of any other country involving moral
2700 turpitude, without regard to whether judgment of conviction has
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2701 been entered by the court having jurisdiction of the case.
2702 (l) Having been the subject of, or having had a license,
2703 permit, appointment, registration, or other authority to conduct
2704 business subject to, any decision, finding, injunction,
2705 suspension, prohibition, revocation, denial, judgment, final
2706 agency action, or administrative order by any court of competent
2707 jurisdiction, administrative law proceeding, state agency,
2708 federal agency, national securities, commodities, or options
2709 exchange, or national securities, commodities, or options
2710 association involving a violation of any federal or state
2711 securities or commodities law or any rule or regulation adopted
2712 thereunder, or a violation of any rule or regulation of any
2713 national securities, commodities, or options exchange or
2714 national securities, commodities, or options association.
2715 (2) When a licensee is charged with a felony enumerated in
2716 s. 626.207(2), the department shall, immediately upon receipt of
2717 information on or indictment for the felony, temporarily suspend
2718 a license or appointment issued under this chapter. Such
2719 suspension shall continue if the licensee is found guilty of, or
2720 pleads guilty or nolo contendere to, the crime, regardless of
2721 whether a judgment or conviction is entered, during a pending
2722 appeal. A person may not transact insurance business after
2723 suspension of his or her license or appointment.
2724 (3) The department may adopt rules to administer this
2725 section.
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2726 Section 54. Section 634.423, Florida Statutes, is amended
2727 to read:
2728 634.423 Grounds for discretionary refusal, suspension, or
2729 revocation of license or appointment of sales representatives.—
2730 (1) The department may deny, suspend, revoke, or refuse to
2731 renew or continue the license or appointment of any sales
2732 representative if it is found that any one or more of the
2733 following grounds applicable to the sales representative exist
2734 under circumstances for which such denial, suspension,
2735 revocation, or refusal is not mandatory under s. 634.422:
2736 (a)(1) Any cause for which granting of the license or
2737 appointment could have been refused had it then existed and been
2738 known to the department.
2739 (b)(2) Violation of any provision of this part, or of any
2740 other law applicable to the business of service warranties, in
2741 the course of dealings under the license or appointment.
2742 (c)(3) Violation of any lawful order or rule of the
2743 department or commission.
2744 (d)(4) Failure or refusal to pay over, upon demand, to any
2745 service warranty association or insurer the sales representative
2746 represents or has represented any money coming into her or h is
2747 hands which belongs to the association or insurer.
2748 (e)(5) In the conduct of business under the license or
2749 appointment, engaging in unfair methods of competition or in
2750 unfair or deceptive acts or practices, as such methods, acts, or
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2751 practices are or may be defined under this part, or otherwise
2752 showing herself or himself to be a source of injury or loss to
2753 the public or detriment to the public interest.
2754 (f)(6) Failure to report to the department within 30 days
2755 the final disposition of an administrative action taken against
2756 a salesperson by a governmental agency or other regulatory
2757 agency in this state or any other state or jurisdiction relating
2758 to the business of insurance, the sale of securities, or an
2759 activity involving fraud, dishonesty, trustworthiness, or breach
2760 of a fiduciary duty. The sales representative must submit a copy
2761 of the order, consent to order, or other relevant legal
2762 documents to the department Being found guilty of or pleading
2763 guilty or nolo contendere to a felony or a crime punishabl e by
2764 imprisonment of 1 year or more under the law of the United
2765 States of America or any state thereof or under the law of any
2766 other country, without regard to whether judgment of conviction
2767 has been entered by the court having jurisdiction of such case.
2768 (2) The department may adopt rules to administer this
2769 section.
2770 Section 55. Section 648.25, Florida Statutes, is amended
2771 to read:
2772 648.25 Definitions.—As used in this chapter, the term:
2773 (1) "Appointment" means the authority given by an insurer
2774 or the managing general agent of an insurer through the
2775 department to a licensee to transact insurance or adjust claims
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2776 on behalf of the insurer or managing general agent.
2777 (2)(1) "Bail bond agency" means:
2778 (a) The building where a licensee maintains an offic e and
2779 where all records required by ss. 648.34 and 648.36 are
2780 maintained; or
2781 (b) An entity that:
2782 1. Charges a fee or premium to release an accused
2783 defendant or detainee from jail; or
2784 2. Engages in or employs others to engage in any activity
2785 that may be performed only by a licensed and appointed bail bond
2786 agent.
2787 (3)(2) "Bail bond agent" means a limited surety agent or a
2788 professional bail bond agent as hereafter defined.
2789 (4) "Insurer" means any domestic, foreign, or alien surety
2790 company which has been authorized to transact surety business in
2791 this state.
2792 (5) "Limited surety agent" means any individual appointed
2793 by an insurer by power of attorney to execute or countersign
2794 bail bonds in connection with judicial proceedings who receives
2795 or is promised money or other things of value therefor.
2796 (6)(3) "Managing general agent" means any individual,
2797 partnership, association, or corporation appointed or employed
2798 by an insurer to supervise or manage the bail bond business
2799 written in this state by limited surety agents appointed by the
2800 insurer.
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2801 (7)(6) "Primary bail bond agent" means a licensed bail
2802 bond agent who is responsible for the overall operation and
2803 management of a bail bond agency location and whose
2804 responsibilities include hiring and supervising all individuals
2805 within that location. A bail bond agent may be designated as
2806 primary bail bond agent for only one bail bond agency location.
2807 (8)(7) "Professional bail bond agent" means any person who
2808 pledges United States currency, United States postal money
2809 orders, or cashier's checks as security for a bail bond in
2810 connection with a judicial proceeding and receives or is
2811 promised therefor money or other things of value.
2812 (9)(8) "Temporary bail bond agent" means a person licensed
2813 before January 1, 2024, who is employed by a bail bond agent or
2814 agency, insurer, or managing general agent, and such licensee
2815 has the same authority as a licensed bail bond agent, including
2816 presenting defendants in court; apprehending, arresting, and
2817 surrendering defendants to the proper authorities, while
2818 accompanied by a supervising bail bond agent or an agent from
2819 the same agency; and keeping defendants under necessary
2820 surveillance. However, a temporary licensee may not execute or
2821 sign bonds, handle collateral receipts, or deliver bonds to
2822 appropriate authorities. A temporary licensee may not operate an
2823 agency or branch agency separate from the location of the
2824 supervising bail bond agent, managing general agent, or insurer
2825 by whom the licensee is employed. This does not affect the right
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2826 of a bail bond agent or insurer to hire counsel or to obtain the
2827 assistance of law enforcement officers. A temporary bail bond
2828 agent license expires 18 months after issuance and is no longer
2829 valid on or after June 30, 2025.
2830 Section 56. Subsection (3) of section 648.26, Florida
2831 Statutes, is amended to read:
2832 648.26 Department of Financial Services; administration.—
2833 (3) The papers, documents, reports, or any other
2834 investigatory records of the department are confidential and
2835 exempt from the provisions of s. 119.07(1) until such
2836 investigation is completed or ceases to be active. For the
2837 purpose of this section, an investigation is considered active
2838 "active" while the investigation is being conducted by the
2839 department with a reasonable, good faith belief that it may lead
2840 to the filing of administrative, civil, or criminal proceedings.
2841 An investigation does not cease to be active if the depart ment
2842 is proceeding with reasonable dispatch and there is good faith
2843 belief that action may be initiated by the department or other
2844 administrative or law enforcement agency. This subsection does
2845 not prevent the department or office from disclosing the content
2846 of a complaint or such information as it deems necessary to
2847 conduct the investigation, to update the complainant as to the
2848 status and outcome of the complaint, or to share such
2849 information with any law enforcement agency or other regulatory
2850 body.
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2851 Section 57. Subsection (5) of section 648.27, Florida
2852 Statutes, is amended to read:
2853 648.27 Licenses and appointments; general.—
2854 (5)(a) The license of a bail bond agent shall continue in
2855 force, without further examination unless deemed necessary by
2856 the department, until suspended, revoked, or otherwise
2857 terminated.
2858 (b) The license of a temporary bail bond agent shall
2859 continue in force until suspended, revoked, or otherwise
2860 terminated.
2861 Section 58. Section 648.285, Florida Statutes, is amended
2862 to read:
2863 648.285 Bond agency; ownership requirements; applications
2864 for bail bond agency licenses.—
2865 (1) A person may not own, control, manage, or otherwise
2866 have a pecuniary interest in a bail bond agency unless such
2867 individual is a licensed pursuant to s. 648.27, and appointed
2868 through the department, and actively engaged as a bail bond
2869 agent for at least the preceding 24 months. Any agency that is
2870 not in compliance with this subsection is shall be subject to
2871 the issuance of an immediate final order of suspension of its
2872 license and all operations until the agency achieves compliance.
2873 (2) The department may issue a bail bond agency license to
2874 any person only after such person files a written application
2875 with the department and qualifies for such license.
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2876 (3) An application for a bail bond agency license must be
2877 signed by an individual required to be listed in the application
2878 under paragraph (a). A bail bond agency license may permit a
2879 third party to complete, submit, and sign an application on the
2880 bail bond agency's behalf; however, the bail bond agency is
2881 responsible for ensuring that the information on the application
2882 is true and correct, and the bail bond agency is accountable for
2883 any misstatements or misrepresentations. The application for a
2884 bail bond agency license must include:
2885 (a) The name and license number of each owner, partner,
2886 officer, director, president, senior vice president, secretary,
2887 treasurer, and limited liability company member who directs or
2888 participates in the management or control of the bail bond
2889 agency, whether through ownership of voting securities, by
2890 contract, by ownership of any agency bank account, or otherwise.
2891 (b) The residence address of each person required to be
2892 listed in the application under paragraph (a).
2893 (c) The name, principal business street address, and valid
2894 e-mail address of the bail bond agency and the name, address,
2895 and e-mail address of the agency's registered agent or person or
2896 company authorized to accept service on behalf of the bail bond
2897 agency.
2898 (d) The physical address of each branch bail bond agency,
2899 including its name, e-mail address, and telephone number, and
2900 the date that the branch location began transacting bail bond
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2901 business.
2902 (e) The name of the bail bond agent in full-time charge of
2903 the agency office, including branch locations, and his or her
2904 corresponding location.
2905 (f) The fingerprints, submitted in accordance with s.
2906 626.171(4), of each of the following:
2907 1. A sole proprietor.
2908 2. Each individual required to be listed in the
2909 application under paragraph (a).
2910 3. Each individual who directs or participates in the
2911 management or control of an incorporated agency whose shares are
2912 not traded on a securities exchange.
2913
2914 Fingerprints need not be filed for an individual who is
2915 currently licensed and appointed under this chapter. This
2916 paragraph does not apply to corporations whose voting shares are
2917 traded on a securities exchange.
2918 (g) Such additional information as the department requires
2919 by rule to ascertain the trustworthiness and competence of
2920 persons required to be listed on the application and to
2921 ascertain that such persons meet the requirements of this code.
2922 However, the department may not require that credit or character
2923 reports be submitted for persons required to be listed on the
2924 application.
2925 (4) The department must issue a license to each agency
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2926 upon approval of the application, and each agency location must
2927 display the license prominently in a manner that makes it
2928 clearly visible to any customer or potential customer who enters
2929 the agency location.
2930 (5) The provisions of s. 112.011 do not apply to bail bond
2931 agencies or to applicants for licensure as owners of bail bond
2932 agencies.
2933 (2) If the owner of a bail bond agency dies or becomes
2934 mentally incapacitated, a personal representative or legal
2935 guardian may be issued a temporary permit to manage the affairs
2936 of the bail bond agency. Such person must appoint or maintain
2937 the appointment of a primary bail bond agent, as provided in s.
2938 648.387, and may not engage in any activities as a licensed bail
2939 bond agent but must comply with s. 648.387 during the
2940 administration of the estate or guardianship. A temporary permit
2941 is valid for a maximum of 24 months.
2942 (3) Application for a temporary permit must be made by the
2943 personal representative or legal guardian upon statements and
2944 affidavits filed with the department on forms prescribed and
2945 furnished by it. The applicant must meet the qualifications for
2946 licensure as a bail bond agent, except for the residency,
2947 examination, education, and experience requirements.
2948 Section 59. Subsection (1) of section 648.30, Florida
2949 Statutes, is amended to read:
2950 648.30 Licensure and appointment required; prohibited
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2951 acts; penalties.—
2952 (1)(a) A person or entity may not act in the capacity of a
2953 bail bond agent or temporary bail bond agency agent or perform
2954 any of the functions, duties, or powers prescribed for bail bond
2955 agents or temporary bail bond agencies agents under this chapter
2956 unless that person or entity is qualified, licensed, and
2957 appointed as provided in this chapter and employed by a bail
2958 bond agency.
2959 (b) A bail bond agent may not sell a bail bond issued by
2960 an insurer for which the agent and the agent's bail bond agency
2961 do not hold a current appointment.
2962 (c) Except as otherwise provided in this part, a person or
2963 entity, other than a bail bond agency or an employee of a bail
2964 bond agency, may not perform any of the functions of a bail bond
2965 agency without a bail bond agency license.
2966 Section 60. Section 648.31, Florida Statutes, is amended
2967 to read:
2968 648.31 Appointment taxes and fees.—The department shall
2969 collect in advance all appointment taxes and fees for the
2970 issuance of any appointment to a bail bond agent or temporary
2971 bail bond agency agent, as provided in s. 624.501.
2972 Section 61. Subsection (2) of section 648.34, Florida
2973 Statutes, is amended to read:
2974 648.34 Bail bond agents; qualifications.—
2975 (2) To qualify as a bail bond agent, it must affirmatively
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2976 appear at the time of application and throughout the period of
2977 licensure that the applicant has complied with the provisions of
2978 s. 648.355 and has obtained a temporary license pursuant to such
2979 section and:
2980 (a) The applicant Is a natural person who has reached the
2981 age of 18 years and holds a high school diploma or its
2982 equivalent.
2983 (b) The applicant Is a United States citizen or legal
2984 alien who possesses work authorization from the United States
2985 Bureau of Citizenship and Immigration Services and is a resident
2986 of this state. An individual who is a resident of this state
2987 shall be deemed to meet the residence requirement of this
2988 paragraph, notwithstanding the existence, at the time of
2989 application for license, of a license in the applicant's name on
2990 the records of another state as a resident licensee of such
2991 other state, if the applicant furnishes a letter of clearance
2992 satisfactory to the department that his or her resident licenses
2993 have been canceled or changed to a nonresident basis and that he
2994 or she is in good standing.
2995 (c) Will maintain his or her The place of business of the
2996 applicant will be located in this state and in the county where
2997 the applicant will maintain his or her records and be actively
2998 engaged in the bail bond business and work with a licensed
2999 maintain an agency accessible to the public which is open for
3000 reasonable business hours.
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3001 (d) The applicant Is vouched for and recommended upon
3002 sworn statements filed with the department by at least three
3003 reputable citizens who are residents of the same counties in
3004 which the applicant proposes to engage in the bail bond
3005 business.
3006 (e) The applicant Is a person of high character and
3007 approved integrity and has not been convicted of or pleaded
3008 guilty or no contest to a felony, a crime involving moral
3009 turpitude, or a crime punishable by imprisonment of 1 year or
3010 more under the law of any state, territory, or country, whether
3011 or not a judgment or conviction has been entered.
3012 (f) Within 2 years immediately before applying for the
3013 license, has successfully completed a basic certification course
3014 in the criminal justice system which consists of at least 120
3015 hours of classroom instruction with a passing grade of 80
3016 percent or higher and has successfully completed a
3017 correspondence course for bail bond agents approved by the
3018 department.
3019 (g)(f) The applicant Has passed any required examination.
3020 Section 62. Section 648.355, Florida Statutes, is amended
3021 to read:
3022 648.355 Temporary limited license as Limited surety agents
3023 and agent or professional bail bond agents agent; qualifications
3024 pending examination.—
3025 (1) The department may, in its discretion, issue a
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3026 temporary license as a limited surety agent or professional bail
3027 bond agent, subject to the following conditions:
3028 (a) The applicant is a natural person at least 18 years of
3029 age and holds a high school diploma or its equivalent.
3030 (b) The applicant is a United States citizen or legal
3031 alien who possesses work authorization from the United States
3032 Bureau of Citizenship and Immigration Services and is a resident
3033 of this state. An individual who is a resident of this state
3034 shall be deemed to meet the residence requirement of this
3035 paragraph, notwithstanding the existence, at the time of
3036 application for a temporary license, of a license in the
3037 individual's name on the records of another state as a resident
3038 licensee of such other state, if the applicant furnishes a
3039 letter of clearance satisfactory to the department that the
3040 individual's resident licenses have been canceled or changed to
3041 a nonresident basis and that the individual is in good standing.
3042 (c) The applicant is a person of high character and
3043 approved integrity and has never been convicted of or pleaded
3044 guilty or no contest to a felony, a crime involving moral
3045 turpitude, or a crime punishable by imprisonment of 1 year or
3046 more under the law of any state, territory, or country, whether
3047 or not a judgment or conviction is entered.
3048 (d) Within 2 4 years immediately preceding prior to the
3049 date of application for a temporary license, the applicant has
3050 successfully completed a basic certification course in the
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3051 criminal justice system, consisting of not less than 120 hours
3052 of classroom instruction with a passing grade of 80 percent or
3053 higher, and has successfully completed a correspondence course
3054 for bail bond agents approved by the department within the same
3055 time period.
3056 (e) The applicant must be employed full time at the time
3057 of licensure, and at all times throughout the existence of the
3058 temporary license, by only one licensed and appointed
3059 supervising bail bond agent, who supervises the work of the
3060 applicant and is responsible for the licensee's conduct in t he
3061 bail bond business. The applicant must be appointed by the same
3062 insurers as the supervising bail bond agent. The supervising
3063 bail bond agent shall certify monthly to the department under
3064 oath, on a form prescribed by the department, the names and
3065 hours worked each week of all temporary bail bond agents. Filing
3066 a false certification is grounds for the immediate suspension of
3067 the license and imposition of a $5,000 administrative fine. The
3068 department may adopt rules that establish standards for the
3069 employment requirements.
3070 (e)(f) The application must be accompanied by an affidavit
3071 verifying proposed employment and a report as to the applicant's
3072 integrity and moral character on a form prescribed by the
3073 department and executed by the proposed employer.
3074 (g) The applicant must file with the department statements
3075 by at least three reputable citizens who are residents of the
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3076 same counties in which the applicant proposes to engage as a
3077 temporary licensee.
3078 (h) The applicant's employer is responsible for the bail
3079 bonding acts of any licensee under this section.
3080 (2) All applicable license fees, as prescribed in s.
3081 624.501, must be paid before issuance of the temporary license.
3082 (3) The temporary license shall be effective for 18
3083 months, subject to earlier termination at the request of the
3084 employer or if suspended or revoked by the department.
3085 (3)(4) The applicant shall furnish, with the application
3086 for temporary license, a complete set of the applicant's
3087 fingerprints in accordance with s. 626.171(4) and a r ecent
3088 credential-sized, fullface photograph of the applicant. The
3089 department may shall not issue a temporary license under this
3090 section until the department has received a report from the
3091 Department of Law Enforcement and the Federal Bureau of
3092 Investigation relative to the existence or nonexistence of a
3093 criminal history report based on the applicant's fingerprints.
3094 (4)(5) The department may collect a fee necessary to cover
3095 the cost of a character and credit report made by an established
3096 and reputable independent reporting service. The fee shall be
3097 deposited to the credit of the Insurance Regulatory Trust Fund.
3098 (5)(6) Effective July 1, 2023, any individual licensed by
3099 the department as a temporary bail bond agent may take the
3100 required bail bond agent's licensure examination and may file an
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3101 application for a bail bond agent's license if otherwise
3102 qualified for licensure After licensure as a temporary licensee
3103 for at least 12 months, such licensee may file an application
3104 for and become eligible for a regular bail bond agent's license
3105 based on the licensee's experience in the bail bond business and
3106 education pursuant to paragraph (1)(d) and, if otherwise
3107 qualified, take the required bail bond agent's licensure
3108 examination. The applicant and supervising bail bond agent must
3109 each file an affidavit under oath, on a form prescribed by the
3110 department, verifying the required employment of the temporary
3111 agent before issuance of the license.
3112 (7) In no event shall a temporary licensee licensed under
3113 this section perform any of the functions for which a bail bond
3114 agent's license is required after expiration of the temporary
3115 license without having passed the written examination as for a
3116 regular bail bond agent's license.
3117 (8)(a) A temporary licensee has the same authority as a
3118 licensed bail bond agent, including presenting defendants in
3119 court; apprehending, arresting, and surrendering defendants to
3120 the proper authorities; and keeping defendants under necessary
3121 surveillance. However, a temporary licensee must be accompanied
3122 by a supervising bail bond agent or an agent from the same
3123 agency when apprehending, arresting, or surrendering de fendants
3124 to authorities.
3125 (b) A temporary licensee may not execute or sign bonds,
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3126 handle collateral receipts, deliver bonds to appropriate
3127 authorities, or operate an agency or branch agency separate from
3128 the location of the supervising bail bond agent, ma naging
3129 general agent, or insurer by whom the licensee is employed.
3130 (6)(9) Effective July 1, 2023, the department may not
3131 issue a temporary bail bond agent's license. An individual
3132 currently licensed as a temporary bail bond agent may continue
3133 to be licensed in accordance with this chapter. A temporary bail
3134 bond agent's license may not be reinstated if the license
3135 expires or is terminated, suspended, or revoked The department
3136 shall not issue a temporary bail bond agent's license to any
3137 individual who has held such a temporary license in this state
3138 within 2 years after the expiration of such temporary bail bond
3139 agent's license.
3140 Section 63. Subsections (1) through (4) of section
3141 648.382, Florida Statutes, are amended to read:
3142 648.382 Appointment of bail bond agents and temporary bail
3143 bond agents; effective date of appointment.—
3144 (1) Each insurer or appointing a bail bond agent and each
3145 insurer, managing general agent, or bail bond agent appointing a
3146 temporary bail bond agent or bail bond agency in this state must
3147 file the appointment with the department and, at the same time,
3148 pay the applicable appointment fees and taxes. A person
3149 appointed under this section must hold a valid bail bond agent's
3150 or temporary bail bond agency's agent's license.
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3151 (2) Before Prior to any appointment, an appropriate
3152 officer or official of the appointing insurer in the case of a
3153 bail bond agent or an insurer, managing general agent, or bail
3154 bond agent in the case of a temporary bail bond agent must
3155 submit:
3156 (a) A certified statement or affidavit to the department
3157 stating what investigation has been made concerning the proposed
3158 appointee and the proposed appointee's background and the
3159 appointing person's opinion to the best of his or her knowledge
3160 and belief as to the moral character and reputation of the
3161 proposed appointee. In lieu of such certified statement or
3162 affidavit, by authorizing the effectuation of an appointment for
3163 a licensee, the appointing entity certifies to the department
3164 that such investigation has been made and that the results of
3165 the investigation and the appointing person's opinion is that
3166 the proposed appointee is a person of good moral character and
3167 reputation and is fit to engage in the bail bond business;
3168 (b) An affidavit under oath on a form prescribed by the
3169 department, signed by the proposed appointee, stating that
3170 premiums are not owed to any insurer and that the appointee will
3171 discharge all outstanding forfeitures and judgments on bonds
3172 previously written. If the appointee does not satisfy or
3173 discharge such forfeitures or judgments, the former insurer
3174 shall file a notice, with supporting documents, with the
3175 appointing insurer, the former agent or agency, and the
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3176 department, stating under oath that the licensee has failed to
3177 timely satisfy forfeitures and judgments on bonds written and
3178 that the insurer has satisfied the forfeiture or judgment from
3179 its own funds. Upon receipt of such notification and supporting
3180 documents, the appointing insurer shall immediately cancel the
3181 licensee's appointment. The licensee may be reappointed only
3182 upon certification by the former insurer that all forfeitures
3183 and judgments on bonds written by the licensee have been
3184 discharged. The appointing insurer or former agent or agency
3185 may, within 10 days, file a petition with the department seeking
3186 relief from this paragraph. Filing of the petition stays the
3187 duty of the appointing insurer to cancel the appointment until
3188 the department grants or denies the petition; and
3189 (c) Any other information that the department reasonably
3190 requires concerning the proposed appointee.
3191 (3) By authorizing the effectuation of an appointment for
3192 a licensee, the appointing insurer certifies to the department
3193 that the insurer will be bound by the acts of the bail bond
3194 agent or bail bond agency acting within the scope of the agent's
3195 or agency's his or her appointment, and, in the case of a
3196 temporary bail bond agent, the appointing insurer, managing
3197 general agent, or bail bond agent, as the case may be, must
3198 certify to the department that he or she will supervise the
3199 temporary bail bond agent's activities.
3200 (4) Each appointing insurer or, managing general agent, or
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3201 bail bond agent must advise the department in writing within 5
3202 days after receiving notice or learning that an appointee has
3203 been arrested for, pled guilty or nolo contendere to, or been
3204 found guilty of, a felony or other offense punishable by
3205 imprisonment of 1 year or more under the law of any
3206 jurisdiction, whether judgment was entered or withheld by the
3207 court.
3208 Section 64. Subsections (1) through (4) of section
3209 648.386, Florida Statutes, are renumbered as subsections (2)
3210 through (5), respectively, present subsection (2) of that
3211 section is amended, and a new subsection (1) is added to that
3212 section, to read:
3213 648.386 Qualifications for prelicensing and continuing
3214 education schools and instructors.—
3215 (1) DEFINITION OF "CLASSROOM INSTRUCTION".—As used in this
3216 section, the term "classroom instruction" means a course
3217 designed to be presented to a group of students by a live
3218 instructor using lecture, video, webcast, or virtual or other
3219 audio-video presentation.
3220 (3)(2) SCHOOLS AND CURRICULUM FOR CONTINUING EDUCATION
3221 SCHOOLS.—In order to be considered for approval and
3222 certification as an approved limited surety agent and
3223 professional bail bond agent continuing education school, such
3224 entity must:
3225 (a) Provide a minimum of three classroom-instruction
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3226 continuing education classes per calendar year.
3227 (b) Submit a course curriculum to the department for
3228 approval.
3229 (c) Offer continuing education classes that comprise which
3230 are comprised of a minimum of 2 hours of approved classroom-
3231 instruction coursework and are taught by an approved supervising
3232 instructor or guest lecturer approved by the entity or the
3233 supervising instructor.
3234 Section 65. Section 648.3875, Florida Statutes, is created
3235 to read:
3236 648.3875 Primary bail bond agents; qualifications.—
3237 (1) An application for designation as a primary bail bond
3238 agent must be submitted on forms prescribed by the department.
3239 The application must include the applicant's full name and the
3240 number and date of issuance of the applicant's license issued
3241 pursuant to s. 648.27.
3242 (2) To qualify as a primary bail bond agent, it must
3243 affirmatively appear that, at the time of application and
3244 throughout the period of licensure, the applicant has complied
3245 with s. 648.285 and that the applicant has been licensed as a
3246 bail bond agent for the 24 months immediately preceding the
3247 appointment as a primary bail bond agent.
3248 Section 66. Section 648.39, Florida Statutes, is amended
3249 to read:
3250 648.39 Termination of appointment of managing general
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3251 agents, bail bond agents, and temporary bail bond agencies
3252 agents.—
3253 (1) An insurer that who terminates the appointment of a
3254 managing general agent, bail bond agent, or temporary bail bond
3255 agency agent shall, within 10 days after such termination, file
3256 written notice thereof with the department together with a
3257 statement that it has given or mailed notice to the terminated
3258 agent or agency. Such notice filed with the department must
3259 state the reasons, if any, for such termination. Information so
3260 furnished to the department is confidential and exempt from the
3261 provisions of s. 119.07(1).
3262 (2) Each insurer shall, within 5 days after terminating
3263 the appointment of any managing general agent, bail bond agent,
3264 or temporary bail bond agency agent, give written notice thereof
3265 to each clerk of the circuit court and sheriff with whom such
3266 person is registered.
3267 (3) An insurer that terminates the appointment of a
3268 managing general agent, bail bond agent, or temporary bail bond
3269 agency agent may authorize such person to continue to attempt
3270 the arrest and surrender of a defendant for whom a surety bond
3271 had been written by the bail bond agent or bail bond agency
3272 before prior to termination and to seek discharge of forfeitures
3273 and judgments as provided in chapter 903.
3274 Section 67. Section 648.41, Florida Statutes, is repealed.
3275 Section 68. Section 648.42, Florida Statutes, is amended
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3276 to read:
3277 648.42 Registration of bail bond agents.—A bail bond agent
3278 may not become a surety on an undertaking unless he or she has
3279 registered in the office of the sheriff and with the clerk of
3280 the circuit court in the county in which the bail bond agent
3281 resides. The bail bond agent may register in a like manner in
3282 any other county, and any bail bond agent shall file a certified
3283 copy of his or her appointment by power of attorney from each
3284 insurer which he or she represents as a bail bond agent with
3285 each of such officers. Registration and filing of a certified
3286 copy of renewed power of attorney shall be performed by April 1
3287 of each odd-numbered year. The clerk of the circuit court and
3288 the sheriff may shall not permit the registration of a bail bond
3289 agent unless such bail bond agent is currently licensed by the
3290 department and appointed by an insurer the department. Nothing
3291 in this section shall prevent the registration of a temporary
3292 licensee at the jail for the purposes of enabling the licensee
3293 to perform the duties under such license as set forth in this
3294 chapter.
3295 Section 69. Subsections (1) and (2) and paragraphs (c) and
3296 (d) of subsection (8) of section 648.44, Florida Statutes, are
3297 amended to read:
3298 648.44 Prohibitions; penalty.—
3299 (1) A bail bond agent or temporary bail bond agency agent
3300 may not:
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3301 (a) Suggest or advise the employment of, or name for
3302 employment, any particular attorney or attorneys to represent
3303 his or her principal.
3304 (b) Directly or indirectly solicit business in or on the
3305 property or grounds of a jail, prison, or other place where
3306 prisoners are confined or in or on the property or grounds of
3307 any court. The term "solicitation" includes the distribution of
3308 business cards, print advertising, or other written or oral
3309 information directed to prisoners or potential indemnitors,
3310 unless a request is initiated by the prisoner or a potential
3311 indemnitor. Permissible print advertising in the jail is
3312 strictly limited to a listing in a telephone directory and the
3313 posting of the bail bond agent's or agency's name, address, e-
3314 mail address, web address, and telephone number in a designated
3315 location within the jail.
3316 (c) Initiate in-person or telephone solicitation after
3317 9:00 p.m. or before 8:00 a.m., in the case of domestic violence
3318 cases, at the residence of the detainee or the detainee's
3319 family. Any solicitation not prohibited by this chapter must
3320 comply with the telephone solicitation requirements in ss.
3321 501.059(2) and (4), 501.613, and 501.616(6).
3322 (d) Wear or display any identification other than the
3323 department issued or approved license or approved department
3324 identification, which includes a citation of the licensee's
3325 arrest powers, in or on the property or grounds of a jail,
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3326 prison, or other place where prisoners are confined or in or on
3327 the property or grounds of any court.
3328 (e) Pay a fee or rebate or give or promise anything of
3329 value to a jailer, police officer, peace officer, or committing
3330 trial court judge or any other person who has power to arrest or
3331 to hold in custody or to any public official or public employee
3332 in order to secure a settlement, compromise, remission, or
3333 reduction of the amount of any bail bond or estreatment there of.
3334 (f) Pay a fee or rebate or give anything of value to an
3335 attorney in a bail bond matter, except in defense of any action
3336 on a bond.
3337 (g) Pay a fee or rebate or give or promise anything of
3338 value to the principal or anyone in his or her behalf.
3339 (h) Participate in the capacity of an attorney at a trial
3340 or hearing of one on whose bond he or she is surety.
3341 (i) Loiter in or about a jail, courthouse, or where
3342 prisoners are confined.
3343 (j) Accept anything of value from a principal for
3344 providing a bail bond except the premium and transfer fee
3345 authorized by the office, except that the bail bond agent or
3346 bail bond agency may accept collateral security or other
3347 indemnity from the principal or another person in accordance
3348 with the provisions of s. 648.442, together with documentary
3349 stamp taxes, if applicable. No fees, expenses, or charges of any
3350 kind shall be permitted to be deducted from the collateral held
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3351 or any return premium due, except as authorized by this chapter
3352 or rule of the department or commission. A bail bond agent or
3353 bail bond agency may, upon written agreement with another party,
3354 receive a fee or compensation for returning to custody an
3355 individual who has fled the jurisdiction of the court or caused
3356 the forfeiture of a bond.
3357 (k) Write more than one power of attorney per charge on a
3358 bond, except in the case of a cosurety, unless the power of
3359 attorney prohibits a cosurety.
3360 (l) Execute a bond in this state on his or her own behalf.
3361 (m) Execute a bond in this state if a judgment has been
3362 entered on a bond executed by the bail bond agent or bail bond
3363 agency, which has remained unpaid for 35 days, unless the full
3364 amount of the judgment is deposited with the clerk in accordance
3365 with s. 903.27(5).
3366 (n) Make a statement or representation to a court, unless
3367 such statement or representation is under oath. Such statement
3368 or representation may not be false, misleading, or deceptive.
3369 (o) Attempt to collect, through threat or coercion,
3370 amounts due for the payment of any indebtedness related to the
3371 issuance of a bail bond in violation of s. 559.72.
3372 (p) Conduct bail bond business with any person, other than
3373 the defendant, on the grounds of the jail or courthouse for the
3374 purpose of executing a bond.
3375 (2) The following persons or classes may shall not be bail
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3376 bond agents, temporary bail bond agents, or employees of a bail
3377 bond agent or a bail bond agency business and may shall not
3378 directly or indirectly receive any benefits from the execution
3379 of any bail bond:
3380 (a) Jailers or persons employed in any jail.
3381 (b) Police officers or employees of any police department
3382 or law enforcement agency.
3383 (c) Committing trial court judges, employees of a court,
3384 or employees of the clerk of any court.
3385 (d) Sheriffs and deputy sheriffs or employees of any
3386 sheriff's department.
3387 (e) Attorneys.
3388 (f) Persons having the power to arrest or persons who have
3389 authority over or control of federal, state, county, or
3390 municipal prisoners.
3391 (8)
3392 (c) Any law enforcement agency, state attorney's office,
3393 court clerk, or insurer that is aware that a bail bond agent or
3394 temporary bail bond agent has been convicted of or who has
3395 pleaded guilty or no contest to a crime as described in
3396 paragraph (a) shall notify the department of this fact.
3397 (d) Upon the filing of an information or indictment
3398 against a bail bond agent or temporary bail bond agent, the
3399 state attorney or clerk of the circuit court shall immediately
3400 furnish the department a certified copy of the information or
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3401 indictment.
3402 Section 70. Subsection (1) of section 648.441, Florida
3403 Statutes, is amended to read:
3404 648.441 Furnishing supplies to unlicensed bail bond agent
3405 prohibited; civil liability and penalty.—
3406 (1) An insurer, managing general agent, bail bond agent,
3407 or temporary bail bond agency agent appointed under this chapter
3408 may not furnish to any person any blank forms, applications,
3409 stationery, business card, or other supplies to be used in
3410 soliciting, negotiating, or effecting bail bonds until such
3411 person has received from the department a license t o act as a
3412 bail bond agent and is appointed by the insurer. This section
3413 does not prohibit an unlicensed employee, under the direct
3414 supervision and control of a licensed and appointed bail bond
3415 agent, from possessing or executing in the bail bond agency, any
3416 forms, except for powers of attorney, bond forms, and collateral
3417 receipts, while acting within the scope of his or her
3418 employment.
3419 Section 71. Section 648.50, Florida Statutes, is amended
3420 to read:
3421 648.50 Effect of suspension, revocation upon assoc iated
3422 licenses and licensees.—
3423 (1) Upon the suspension, revocation, or refusal to renew
3424 or continue any license or appointment or the eligibility to
3425 hold a license or appointment of a bail bond agent or temporary
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3426 bail bond agency agent, the department shall at the same time
3427 likewise suspend or revoke all other licenses or appointments
3428 and the eligibility to hold any other such licenses or
3429 appointments which may be held by the licensee under the Florida
3430 Insurance Code.
3431 (2) In case of the suspension or revocation of the license
3432 or appointment, or the eligibility to hold a license or
3433 appointment, of any bail bond agent, the license, appointment,
3434 or eligibility of any and all bail bond agents who are members
3435 of a bail bond agency, whether incorporated or unincorporated,
3436 and any and all temporary bail bond agents employed by such bail
3437 bond agency, who knowingly are parties to the act which formed
3438 the ground for the suspension or revocation may likewise be
3439 suspended or revoked.
3440 (3) A No person whose license as a bail bond agent or
3441 temporary bail bond agent has been revoked or suspended may not
3442 shall be employed by any bail bond agent, have any ownership
3443 interest in any business involving bail bonds, or have any
3444 financial interest of any type in any bail bond business during
3445 the period of revocation or suspension.
3446 Section 72. Section 651.123, Florida Statutes, is
3447 repealed.
3448 Section 73. Paragraph (a) of subsection (4) of section
3449 843.021, Florida Statutes, is amended to read:
3450 843.021 Unlawful possession of a concealed handcuff key.—
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3451 (4)(a) It is a defense to a charge of violating this
3452 section that the person in custody and in possession of a
3453 concealed handcuff key is:
3454 1. A federal, state, or local law enforcement officer,
3455 including a reserve or auxiliary officer, a licensed security
3456 officer, or a private investigator as defined in s. 493.6101; or
3457 2. A professional bail bond agent, temporary bail bond
3458 agent, runner, or limited surety agent as defined in s. 648.25.
3459 Section 74. Section 903.28, Florida Statutes, is amended
3460 to read:
3461 903.28 Remission of forfeiture; conditions.—
3462 (1) On application within 2 years from forfeiture, the
3463 court shall order remission of the forfeiture if it determines
3464 that there was no breach of the bond.
3465 (2) If the defendant surrenders or is apprehended or
3466 deceased within 90 days after forfeiture, the court, on motion
3467 at a hearing upon notice having been given to the clerk of the
3468 circuit court and the state attorney as required in subsection
3469 (9) (8), shall direct remission of up to, but not more than, 100
3470 percent of a forfeiture if the surety apprehended and
3471 surrendered the defendant or if the apprehension or surrender of
3472 the defendant was substantially procured or caused by the
3473 surety;, or the surety has substantially attempted to procure or
3474 cause the apprehension or surrender of the defendant; or the
3475 defendant is deceased, and the delay has not thwarted the proper
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3476 prosecution of the defendant. In addition, remission shall be
3477 granted when the surety did not substantially participate or
3478 attempt to participate in the apprehension or surrender of the
3479 defendant when the costs of returning the defendant to the
3480 jurisdiction of the court, as provided in s. 903.21(3), have
3481 been deducted from the remission and when the delay has not
3482 thwarted the proper prosecution of the defendant.
3483 (3) If the defendant surrenders or is apprehended or
3484 deceased within 180 days after forfeiture, the court, on motion
3485 at a hearing upon notice having been given to the clerk of the
3486 circuit court and the state attorney as required in subsection
3487 (9) (8), shall direct remission of up to, but not more than, 95
3488 percent of a forfeiture if the surety apprehended and
3489 surrendered the defendant or if the apprehension or surrender of
3490 the defendant was substantially procured or caused by the
3491 surety;, or the surety has substantially attempted to procure or
3492 cause the apprehension or surrender of the defendant; or the
3493 defendant is deceased, and the delay has not thwarted the proper
3494 prosecution of the defendant. In addition, remission shall be
3495 granted when the surety did not substantially participate or
3496 attempt to participate in the apprehension or surrender of the
3497 defendant when the costs of returning the defendant to the
3498 jurisdiction of the court, as provided in s. 903.21(3), have
3499 been deducted from the remission and when the delay has not
3500 thwarted the proper prosecution of the defendant.
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3501 (4) If the defendant surrenders or is apprehended or
3502 deceased within 270 days after forfeiture, the court, on motion
3503 at a hearing upon notice having been given to the clerk of the
3504 circuit court and the state attorney as required in subsection
3505 (9) (8), shall direct remission of up to, but not more than, 90
3506 percent of a forfeiture if the surety apprehended and
3507 surrendered the defendant or if the apprehension or surrender of
3508 the defendant was substantially procured or caused by the
3509 surety;, or the surety has substantially attempted to procure or
3510 cause the apprehension or surrender of the defendant; or the
3511 defendant is deceased, and the delay has not thwarted the proper
3512 prosecution of the defendant. In addition, remission shall be
3513 granted when the surety did not substantially participate or
3514 attempt to participate in the apprehension or surrender of the
3515 defendant when the costs of returning the defendant to the
3516 jurisdiction of the court, as provided in s. 903.21(3), have
3517 been deducted from the remission and when the delay has not
3518 thwarted the proper prosecution of the defendant.
3519 (5) If the defendant surrenders or is apprehended or
3520 deceased within 1 year after forfeiture, the court, on motion at
3521 a hearing upon notice having been given to the clerk of the
3522 circuit court and the state attorney as required in subsection
3523 (9) (8), shall direct remission of up to, but not more than, 85
3524 percent of a forfeiture if the surety apprehended and
3525 surrendered the defendant or if the apprehension or surrender of
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3526 the defendant was substantially procured or caused by the
3527 surety;, or the surety has substantially attempted to procure or
3528 cause the apprehension or surrender of the defendant; or the
3529 defendant is deceased, and the delay has not thwarted the proper
3530 prosecution of the defendant. In addition, remission shall be
3531 granted when the surety did not substantially participate or
3532 attempt to participate in the apprehension or surrender of the
3533 defendant when the costs of returning the defendant to the
3534 jurisdiction of the court, as provided in s. 903.21(3), have
3535 been deducted from the remission and when the delay has not
3536 thwarted the proper prosecution of the defendant.
3537 (6) If the defendant surrenders or is apprehended or
3538 deceased within 2 years after forfeiture, the court, on motion
3539 at a hearing upon notice having been given to the clerk of the
3540 circuit court and the state attorney as required in subsection
3541 (9) (8), shall direct remission of up to, but not more than, 50
3542 percent of a forfeiture if the surety apprehended and
3543 surrendered the defendant or if the apprehension or surrender of
3544 the defendant was substantially procured or caused by the
3545 surety;, or the surety has substantially attempted to procure or
3546 cause the apprehension or surrender of the defendant; or the
3547 defendant is deceased, and the delay has not thwarted the proper
3548 prosecution of the defendant. In addition, remission shall be
3549 granted when the surety did not substantially participate or
3550 attempt to participate in the apprehension or surrender of the
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3551 defendant when the costs of returning the defendant to the
3552 jurisdiction of the court, as provided in s. 903.21(3), have
3553 been deducted from the remission and when the delay has not
3554 thwarted the proper prosecution of the defendant.
3555 (7) Within 2 years after the date of forfeiture, if the
3556 state is unwilling to seek extradition of the defendant from any
3557 jail or prison after a request by the surety agent or the surety
3558 company, and contingent upon the surety agent or surety company
3559 consenting to pay all costs incurred by an official in returning
3560 the defendant to the jurisdiction of the court, as provided in
3561 s. 903.21(3), up to the penal amount of the bond, the court
3562 shall direct remission of 100 percent of the forfeiture.
3563 (8) The remission of a forfeiture may not be ordered for
3564 any reason other than as specified herein.
3565 (9)(8) An application for remission must be accompanied by
3566 affidavits setting forth the facts on which it is founded;
3567 however, the surety must establish by further documentation or
3568 other evidence any claimed attempt at procuring or causing the
3569 apprehension or surrender of the defendant before the court may
3570 order remission based upon an attempt to procure or cause such
3571 apprehension or surrender. The clerk of the circuit court and
3572 the state attorney must be given 20 days' notice before a
3573 hearing on an application and be furnished copies of all papers,
3574 applications, and affidavits. Remission shall be granted on the
3575 condition of payment of costs, as provided in s. 903.21(3),
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3576 unless the ground for remission is that there was no breach of
3577 the bond.
3578 (10)(9) The clerk of the circuit court may enter into a
3579 contract with a private attorney or into an interagency
3580 agreement with a governmental agency to represent the clerk of
3581 the court in an action for the remission of a forfeiture under
3582 this section.
3583 (11)(10) The clerk of the circuit court is the real party
3584 in interest for all appeals arising from an action for the
3585 remission of a forfeiture under this section.
3586 Section 75. Paragraph (b) of subsection (6) of section
3587 28.2221, Florida Statutes, is amended to read:
3588 28.2221 Electronic access to official records.—
3589 (6)
3590 (b)1. For the purpose of conducting a title search, as
3591 defined in s. 627.7711(4), of the Official Records, as described
3592 in s. 28.222(2), and upon presentation of photo identification
3593 and affirmation by sworn affidavit consistent with s. 92.50 to
3594 the county recorder, information restricted from public display,
3595 inspection, or copying under paragraph (5)(a) pursuant to a
3596 request for removal made under s. 119.071(4)(d) may be disclosed
3597 to:
3598 a. A title insurer authorized pursuant to s. 624.401 and
3599 its affiliates as defined in s. 624.10;
3600 b. A title insurance agent or title insurance agency as
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3601 these terms are defined in s. 626.841 s. 626.841(1) and (2),
3602 respectively; or
3603 c. An attorney duly admitted to practice law in this state
3604 and in good standing with The Florida Bar.
3605 2. The photo identification and affirmation by sworn
3606 affidavit may be delivered in person, by mail, or by electronic
3607 transmission to the county recorder.
3608 3. The affiant requestor must attest to his or her
3609 authority and the authorized purpose to access exempt
3610 information pursuant to this section for the property specified
3611 within the sworn affidavit.
3612 4. The affiant requestor must identify the Official
3613 Records book and page number, instrument number, or the clerk's
3614 file number for each document requested within the sworn
3615 affidavit and must include a description of the lawful purpose
3616 and identify the individual or property that is the subject of
3617 the search within the sworn affidavit.
3618 5. Affidavits submitted by a title insurer, title
3619 insurance agent, or title insurance agency must include the
3620 Florida Company Code or the license number, as applicable, and
3621 an attestation to the affiant requestor's authorization to
3622 transact business in this state. Affidavits submitted by an
3623 attorney authorized under this section must include the affiant
3624 requestor's Florida Bar number and a statement that the affiant
3625 requestor has an agency agreement with a title insurer directly
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3626 or through his or her law firm.
3627 6. The county recorder must record such affidavit in the
3628 Official Records, as described in s. 28.222(2), but may not
3629 place the image or copy of the affidavit on a publicly available
3630 Internet website for general public display.
3631 7. Upon providing a document disclosing redacted
3632 information to an affiant requestor under this section, the
3633 county recorder must provide a copy of the affidavit requesting
3634 disclosure of the redacted information to each affected party at
3635 the address listed on the document or on the request for removal
3636 made by the affected party under s. 119.071. The county recorder
3637 must prepare a certificate of mailing to be affixed to the
3638 affidavit and must receive the statutory service charges as
3639 prescribed by s. 28.24 from the affiant requestor.
3640 8. Any party making a false attestation under this section
3641 is subject to the penalty of perjury under s. 837.012.
3642 Section 76. Paragraph (d) of subsection (4) of section
3643 119.071, Florida Statutes, is amended to read:
3644 119.071 General exemptions from inspection or copying of
3645 public records.—
3646 (4) AGENCY PERSONNEL INFORMATION.—
3647 (d)1. For purposes of this paragraph, the term:
3648 a. "Home addresses" means the dwelling location at which
3649 an individual resides and includes the physical address, mailing
3650 address, street address, parcel identification number, plot
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3651 identification number, legal property description, neighborhood
3652 name and lot number, GPS coordinates, and any other descriptive
3653 property information that may reveal the home address.
3654 b. "Telephone numbers" includes home telephone numbers,
3655 personal cellular telephone numbers, personal pager telephone
3656 numbers, and telephone numbers associated with personal
3657 communications devices.
3658 2.a. The home addresses, telephone numbers, dates of
3659 birth, and photographs of active or former sworn law enforcement
3660 personnel or of active or former civilian personnel employed by
3661 a law enforcement agency, including correctional and
3662 correctional probation officers, personnel of the Department of
3663 Children and Families whose duties include the investigation of
3664 abuse, neglect, exploitation, fraud, theft, or other criminal
3665 activities, personnel of the Department of Health whose duties
3666 are to support the investigation of child abuse or neglect, and
3667 personnel of the Department of Revenue or local governments
3668 whose responsibilities include revenue collection and
3669 enforcement or child support enforcement; the names, home
3670 addresses, telephone numbers, photographs, dates of birth, and
3671 places of employment of the spouses and children of such
3672 personnel; and the names and locations of schools and day care
3673 facilities attended by the children of such personnel are exempt
3674 from s. 119.07(1) and s. 24(a), Art. I of the State
3675 Constitution.
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3676 b. The home addresses, telephone numbers, dates of birth,
3677 and photographs of current or former nonsworn investigative
3678 personnel of the Department of Financial Services whose duties
3679 include the investigation of fraud, theft, workers' compensation
3680 coverage requirements and compliance, other related criminal
3681 activities, or state regulatory requirement violations; the
3682 names, home addresses, telephone numbers, dates of birth, and
3683 places of employment of the spouses and children of such
3684 personnel; and the names and locations of schools and day care
3685 facilities attended by the children of such personnel are exempt
3686 from s. 119.07(1) and s. 24(a), Art. I of the State
3687 Constitution.
3688 c. The home addresses, telephone numbers, dates of birth,
3689 and photographs of current or former nonsworn investigative
3690 personnel of the Office of Financial Regulation's Bureau of
3691 Financial Investigations whose duties include the investigation
3692 of fraud, theft, other related criminal activities, or state
3693 regulatory requirement violations; the names, home addresses,
3694 telephone numbers, dates of birth, and places of employment of
3695 the spouses and children of such personnel; and the nam es and
3696 locations of schools and day care facilities attended by the
3697 children of such personnel are exempt from s. 119.07(1) and s.
3698 24(a), Art. I of the State Constitution.
3699 d. The home addresses, telephone numbers, dates of birth,
3700 and photographs of current or former firefighters certified in
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3701 compliance with s. 633.408; the names, home addresses, telephone
3702 numbers, photographs, dates of birth, and places of employment
3703 of the spouses and children of such firefighters; and the names
3704 and locations of schools and day care facilities attended by the
3705 children of such firefighters are exempt from s. 119.07(1) and
3706 s. 24(a), Art. I of the State Constitution.
3707 e. The home addresses, dates of birth, and telephone
3708 numbers of current or former justices of the Supreme Court,
3709 district court of appeal judges, circuit court judges, and
3710 county court judges; the names, home addresses, telephone
3711 numbers, dates of birth, and places of employment of the spouses
3712 and children of current or former justices and judges; and the
3713 names and locations of schools and day care facilities attended
3714 by the children of current or former justices and judges are
3715 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3716 Constitution.
3717 f. The home addresses, telephone numbers, dates of birth,
3718 and photographs of current or former state attorneys, assistant
3719 state attorneys, statewide prosecutors, or assistant statewide
3720 prosecutors; the names, home addresses, telephone numbers,
3721 photographs, dates of birth, and places of employment of the
3722 spouses and children of current or former state attorneys,
3723 assistant state attorneys, statewide prosecutors, or assistant
3724 statewide prosecutors; and the names and locations of schools
3725 and day care facilities attended by the children of current or
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3726 former state attorneys, assistant state attorneys, statewide
3727 prosecutors, or assistant statewide prosecutors are exempt from
3728 s. 119.07(1) and s. 24(a), Art. I of the State Constitution.
3729 g. The home addresses, dates of birth, and telephone
3730 numbers of general magistrates, special magistrates, judges of
3731 compensation claims, administrative law judges of the Division
3732 of Administrative Hearings, and child support enforcement
3733 hearing officers; the names, home addresses, telephone numbers,
3734 dates of birth, and places of employment of the spouses and
3735 children of general magistrates, special magistrates, judges of
3736 compensation claims, administrative law judges of the Division
3737 of Administrative Hearings, and child support enforcement
3738 hearing officers; and the names and locations of school s and day
3739 care facilities attended by the children of general magistrates,
3740 special magistrates, judges of compensation claims,
3741 administrative law judges of the Division of Administrative
3742 Hearings, and child support enforcement hearing officers are
3743 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3744 Constitution.
3745 h. The home addresses, telephone numbers, dates of birth,
3746 and photographs of current or former human resource, labor
3747 relations, or employee relations directors, assistant directors,
3748 managers, or assistant managers of any local government agency
3749 or water management district whose duties include hiring and
3750 firing employees, labor contract negotiation, administration, or
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3751 other personnel-related duties; the names, home addresses,
3752 telephone numbers, dates of birth, and places of employment of
3753 the spouses and children of such personnel; and the names and
3754 locations of schools and day care facilities attended by the
3755 children of such personnel are exempt from s. 119.07(1) and s.
3756 24(a), Art. I of the State Constitution.
3757 i. The home addresses, telephone numbers, dates of birth,
3758 and photographs of current or former code enforcement officers;
3759 the names, home addresses, telephone numbers, dates of birth,
3760 and places of employment of the spouses and childre n of such
3761 personnel; and the names and locations of schools and day care
3762 facilities attended by the children of such personnel are exempt
3763 from s. 119.07(1) and s. 24(a), Art. I of the State
3764 Constitution.
3765 j. The home addresses, telephone numbers, places o f
3766 employment, dates of birth, and photographs of current or former
3767 guardians ad litem, as defined in s. 39.820; the names, home
3768 addresses, telephone numbers, dates of birth, and places of
3769 employment of the spouses and children of such persons; and the
3770 names and locations of schools and day care facilities attended
3771 by the children of such persons are exempt from s. 119.07(1) and
3772 s. 24(a), Art. I of the State Constitution.
3773 k. The home addresses, telephone numbers, dates of birth,
3774 and photographs of current or former juvenile probation
3775 officers, juvenile probation supervisors, detention
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3776 superintendents, assistant detention superintendents, juvenile
3777 justice detention officers I and II, juvenile justice detention
3778 officer supervisors, juvenile justice residential officers,
3779 juvenile justice residential officer supervisors I and II,
3780 juvenile justice counselors, juvenile justice counselor
3781 supervisors, human services counselor administrators, senior
3782 human services counselor administrators, rehabilitation
3783 therapists, and social services counselors of the Department of
3784 Juvenile Justice; the names, home addresses, telephone numbers,
3785 dates of birth, and places of employment of spouses and children
3786 of such personnel; and the names and locations of schools and
3787 day care facilities attended by the children of such personnel
3788 are exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3789 Constitution.
3790 l. The home addresses, telephone numbers, dates of birth,
3791 and photographs of current or former public defenders, assistant
3792 public defenders, criminal conflict and civil regional counsel,
3793 and assistant criminal conflict and civil regional counsel; the
3794 names, home addresses, telephone numbers, dates of birth, and
3795 places of employment of the spouses and children of current or
3796 former public defenders, assistant public defenders, criminal
3797 conflict and civil regional counsel, and assistant criminal
3798 conflict and civil regional counsel; and the names and locations
3799 of schools and day care facilities attended by the children of
3800 current or former public defenders, assistant public defenders,
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3801 criminal conflict and civil regional counsel, and assistant
3802 criminal conflict and civil regional counsel are exempt from s.
3803 119.07(1) and s. 24(a), Art. I of the State Constitution.
3804 m. The home addresses, telephone numbers, dates of birth,
3805 and photographs of current or former investigators or inspectors
3806 of the Department of Business and Professional Regulation; the
3807 names, home addresses, telephone numbers, dates of birth, and
3808 places of employment of the spouses and children of such current
3809 or former investigators and inspectors; and the names and
3810 locations of schools and day care facilities attended by the
3811 children of such current or former investigators and inspectors
3812 are exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3813 Constitution.
3814 n. The home addresses, telephone numbers, and dates of
3815 birth of county tax collectors; the names, home addresses,
3816 telephone numbers, dates of birth, and places of employment of
3817 the spouses and children of such tax collectors; and the names
3818 and locations of schools and day care facilities attended by the
3819 children of such tax collectors are exempt from s. 119.07(1) and
3820 s. 24(a), Art. I of the State Constitution.
3821 o. The home addresses, telephone numbers, dates of bir th,
3822 and photographs of current or former personnel of the Department
3823 of Health whose duties include, or result in, the determination
3824 or adjudication of eligibility for social security disability
3825 benefits, the investigation or prosecution of complaints file d
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3826 against health care practitioners, or the inspection of health
3827 care practitioners or health care facilities licensed by the
3828 Department of Health; the names, home addresses, telephone
3829 numbers, dates of birth, and places of employment of the spouses
3830 and children of such personnel; and the names and locations of
3831 schools and day care facilities attended by the children of such
3832 personnel are exempt from s. 119.07(1) and s. 24(a), Art. I of
3833 the State Constitution.
3834 p. The home addresses, telephone numbers, dates of birth,
3835 and photographs of current or former impaired practitioner
3836 consultants who are retained by an agency or current or former
3837 employees of an impaired practitioner consultant whose duties
3838 result in a determination of a person's skill and safety to
3839 practice a licensed profession; the names, home addresses,
3840 telephone numbers, dates of birth, and places of employment of
3841 the spouses and children of such consultants or their employees;
3842 and the names and locations of schools and day care facilities
3843 attended by the children of such consultants or employees are
3844 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3845 Constitution.
3846 q. The home addresses, telephone numbers, dates of birth,
3847 and photographs of current or former emergency medical
3848 technicians or paramedics certified under chapter 401; the
3849 names, home addresses, telephone numbers, dates of birth, and
3850 places of employment of the spouses and children of such
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3851 emergency medical technicians or paramedics; and the names and
3852 locations of schools and day care facilities attended by the
3853 children of such emergency medical technicians or paramedics are
3854 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3855 Constitution.
3856 r. The home addresses, telephone numbers, dates of birth,
3857 and photographs of current or former personnel employed in an
3858 agency's office of inspector general or internal audit
3859 department whose duties include auditing or investigating waste,
3860 fraud, abuse, theft, exploitation, or other activities that
3861 could lead to criminal prosecution or administrative discipline;
3862 the names, home addresses, telephone numbers, dates of birth,
3863 and places of employment of spouses and children of such
3864 personnel; and the names and locations of schools and day care
3865 facilities attended by the children of such personnel are exempt
3866 from s. 119.07(1) and s. 24(a), Art. I of the State
3867 Constitution.
3868 s. The home addresses, telephone numbers, dates of birth,
3869 and photographs of current or former directors, managers,
3870 supervisors, nurses, and clinical employees of an add iction
3871 treatment facility; the home addresses, telephone numbers,
3872 photographs, dates of birth, and places of employment of the
3873 spouses and children of such personnel; and the names and
3874 locations of schools and day care facilities attended by the
3875 children of such personnel are exempt from s. 119.07(1) and s.
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3876 24(a), Art. I of the State Constitution. For purposes of this
3877 sub-subparagraph, the term "addiction treatment facility" means
3878 a county government, or agency thereof, that is licensed
3879 pursuant to s. 397.401 and provides substance abuse prevention,
3880 intervention, or clinical treatment, including any licensed
3881 service component described in s. 397.311(26).
3882 t. The home addresses, telephone numbers, dates of birth,
3883 and photographs of current or former directors, managers,
3884 supervisors, and clinical employees of a child advocacy center
3885 that meets the standards of s. 39.3035(2) and fulfills the
3886 screening requirement of s. 39.3035(3), and the members of a
3887 Child Protection Team as described in s. 39.303 whose duties
3888 include supporting the investigation of child abuse or sexual
3889 abuse, child abandonment, child neglect, and child exploitation
3890 or to provide services as part of a multidisciplinary case
3891 review team; the names, home addresses, telephone numbers,
3892 photographs, dates of birth, and places of employment of the
3893 spouses and children of such personnel and members; and the
3894 names and locations of schools and day care facilities attended
3895 by the children of such personnel and members are exempt from s.
3896 119.07(1) and s. 24(a), Art. I of the State Constitution.
3897 u. The home addresses, telephone numbers, places of
3898 employment, dates of birth, and photographs of current or former
3899 staff and domestic violence advocates, as defined in s.
3900 90.5036(1)(b), of domestic violence centers certified by the
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3901 Department of Children and Families under chapter 39; the names,
3902 home addresses, telephone numbers, places of employment, dates
3903 of birth, and photographs of the spouses and children of such
3904 personnel; and the names and locations of schools and day care
3905 facilities attended by the children of such personnel are exempt
3906 from s. 119.07(1) and s. 24(a), Art. I of the State
3907 Constitution.
3908 3. An agency that is the custodian of the information
3909 specified in subparagraph 2. and that is not the em ployer of the
3910 officer, employee, justice, judge, or other person specified in
3911 subparagraph 2. must maintain the exempt status of that
3912 information only if the officer, employee, justice, judge, other
3913 person, or employing agency of the designated employee submits a
3914 written and notarized request for maintenance of the exemption
3915 to the custodial agency. The request must state under oath the
3916 statutory basis for the individual's exemption request and
3917 confirm the individual's status as a party eligible for exempt
3918 status.
3919 4.a. A county property appraiser, as defined in s.
3920 192.001(3), or a county tax collector, as defined in s.
3921 192.001(4), who receives a written and notarized request for
3922 maintenance of the exemption pursuant to subparagraph 3. must
3923 comply by removing the name of the individual with exempt status
3924 and the instrument number or Official Records book and page
3925 number identifying the property with the exempt status from all
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3926 publicly available records maintained by the property appraiser
3927 or tax collector. For written requests received on or before
3928 July 1, 2021, a county property appraiser or county tax
3929 collector must comply with this sub-subparagraph by October 1,
3930 2021. A county property appraiser or county tax collector may
3931 not remove the street address, legal description, or other
3932 information identifying real property within the agency's
3933 records so long as a name or personal information otherwise
3934 exempt from inspection and copying pursuant to this section are
3935 not associated with the property or otherwise displayed in the
3936 public records of the agency.
3937 b. Any information restricted from public display,
3938 inspection, or copying under sub-subparagraph a. must be
3939 provided to the individual whose information was removed.
3940 5. An officer, an employee, a justice, a judge, or other
3941 person specified in subparagraph 2. may submit a written request
3942 for the release of his or her exempt information to the
3943 custodial agency. The written request must be notarized and must
3944 specify the information to be released and the party authorized
3945 to receive the information. Upon receipt of the written request,
3946 the custodial agency must release the specified information to
3947 the party authorized to receive such information.
3948 6. The exemptions in this paragraph apply to information
3949 held by an agency before, on, or after the effective date of the
3950 exemption.
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3951 7. Information made exempt under this paragraph may be
3952 disclosed pursuant to s. 28.2221 to a title insurer authorized
3953 pursuant to s. 624.401 and its affiliates as defined in s.
3954 624.10; a title insurance agent or title insurance agency as
3955 these terms are defined in s. 626.841 s. 626.841(1) or (2),
3956 respectively; or an attorney duly admitted to practice law in
3957 this state and in good standing with The Florida Bar.
3958 8. The exempt status of a home address contained in the
3959 Official Records is maintained only during the period when a
3960 protected party resides at the dwelling location. Upon
3961 conveyance of real property after October 1, 2021, and when such
3962 real property no longer constitutes a protected party's home
3963 address as defined in sub-subparagraph 1.a., the protected party
3964 must submit a written request to release the removed information
3965 to the county recorder. The written request to release the
3966 removed information must be notarized, must confirm that a
3967 protected party's request for release is pursuant to a
3968 conveyance of his or her dwelling location, and must specify the
3969 Official Records book and page, instrument number, or clerk's
3970 file number for each document containing the information to be
3971 released.
3972 9. Upon the death of a protected party as verified by a
3973 certified copy of a death certificate or court order, any party
3974 can request the county recorder to release a protected
3975 decedent's removed information unless there is a related request
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3976 on file with the county recorder for continued removal of the
3977 decedent's information or unless such removal is otherwise
3978 prohibited by statute or by court order. The written request to
3979 release the removed information upon the death of a protected
3980 party must attach the certified copy of a death certificate or
3981 court order and must be notarized, must confirm the request for
3982 release is due to the death of a protected party, and must
3983 specify the Official Records book and page number, instrument
3984 number, or clerk's file number for each document containing the
3985 information to be released. A fee may not be charged for the
3986 release of any document pursuant to such request.
3987 10. This paragraph is subject to the Open Government
3988 Sunset Review Act in accordance with s. 119.15 and shall stand
3989 repealed on October 2, 2024, unless reviewed and saved from
3990 repeal through reenactment by the Legislature.
3991 Section 77. Subsection (4) of section 631.152, Florida
3992 Statutes, is amended to read:
3993 631.152 Conduct of delinquency proceeding; foreign
3994 insurers.—
3995 (4) Section 631.141(10)(b) 631.141(9)(b) applies to
3996 ancillary delinquency proceedings opened for the purpose of
3997 obtaining records necessary to adjudicate the covered claims of
3998 Florida policyholders.
3999 Section 78. Paragraph (b) of subsection (3) of section
4000 631.398, Florida Statutes, is amended to read:
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4001 631.398 Prevention of insolvencies.—To aid in the
4002 detection and prevention of insurer insolvencies or impairments:
4003 (3)
4004 (b) For an insolvency involving a domestic property
4005 insurer, the department shall:
4006 1. Begin an analysis of the history and causes of the
4007 insolvency once the department is appointed by the court as
4008 receiver.
4009 2. Submit an initial report analyzing the history and
4010 causes of the insolvency to the Governor, the Preside nt of the
4011 Senate, the Speaker of the House of Representatives, and the
4012 office. The initial report must be submitted no later than 4
4013 months after the department is appointed as receiver. The
4014 initial report shall be updated at least annually until the
4015 submission of the final report. The report may not be used as
4016 evidence in any proceeding brought by the department or others
4017 to recover assets on behalf of the receivership estate as part
4018 of its duties under s. 631.141(9) s. 631.141(8). The submission
4019 of a report under this subparagraph shall not be considered a
4020 waiver of any evidentiary privilege the department may assert
4021 under state or federal law.
4022 3. Provide a special report to the Governor, the President
4023 of the Senate, the Speaker of the House of Representa tives, and
4024 the office, within 10 days upon identifying any condition or
4025 practice that may lead to insolvency in the property insurance
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4026 marketplace.
4027 4. Submit a final report analyzing the history and causes
4028 of the insolvency and the review of the Office of Insurance
4029 Regulation's regulatory oversight of the insurer to the
4030 Governor, the President of the Senate, the Speaker of the House
4031 of Representatives, and the office within 30 days of the
4032 conclusion of the insolvency proceeding.
4033 5. Review the Office of Insurance Regulation's regulatory
4034 oversight of the insurer.
4035 Section 79. Subsection (2) of section 903.09, Florida
4036 Statutes, is amended to read:
4037 903.09 Justification of sureties.—
4038 (2) A bond agent, as defined in s. 648.25 s. 648.25(2),
4039 shall justify her or his suretyship by attaching a copy of the
4040 power of attorney issued by the company to the bond or by
4041 attaching to the bond United States currency, a United States
4042 postal money order, or a cashier's check in the amount of the
4043 bond; but the United States currency, United States postal money
4044 order, or cashier's check cannot be used to secure more than one
4045 bond. Nothing herein shall prohibit two or more qualified
4046 sureties from each posting any portion of a bond amount, and
4047 being liable for only that amount, so long as the total posted
4048 by all cosureties is equal to the amount of bond required.
4049 Section 80. (1) The following rule is ratified for the
4050 sole and exclusive purpose of satisfying any condition on the
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4051 effectiveness imposed under s. 120.541(3), Florida Statutes:
4052 Rule 69L-7.020, Florida Administrative Code, titled "Florida
4053 Workers' Compensation Health Care Provider Reimbursement Manual"
4054 as filed for adoption with the Department of State pursuant to
4055 the certification package dated October 22, 2021.
4056 (2) This section serves no other purpose and may not be
4057 codified in the Florida Statutes. After this section becomes
4058 law, its enactment and effective dates shall be noted in the
4059 Florida Administrative Code, the Florida Administrative
4060 Register, or both, as appropriate. This section does not alter
4061 rulemaking additions delegated by prior law, does not constitute
4062 legislative preemption of or exception to any provision of law
4063 governing adoption or enforcement of the rule cited, and is
4064 intended to preserve the status of any cited rule as a rule
4065 under chapter 120, Florida Statutes. This section does not cure
4066 any rulemaking defect or preempt any challenge based on a lack
4067 of authority or a violation of the legal requirements governing
4068 the adoption of any rule cited.
4069 (3) This section takes effect July 1, 2023.
4070 Section 81. Except as otherwise expressly provided in this
4071 act, this act shall take effect upon becoming a law.
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HB 487 by Rep. Salzman
Department of Financial Services
AMENDMENT SUMMARY
March 21, 2023
Amendment 1 by Rep. Salzman (Strike-all): The amendment:
• Removes various sections of the bill to address single subject concerns.
• Sunsets the State Fire Marshal Direct Service Organization created by the bill,
consistent with applicable statute. It will sunset on October 1, 2028, unless saved
from repeal by the Legislature.
• Significant additions to the bill include:
o Requires the Deferred Compensation Plan to be at least partially self-funded.
o Requires Workers’ Compensation Proof of Coverage to include certain data
to help control for fraudulent use of check cashing business.
o Creates a limited lines agent license for Preneed Funeral Agreement
Insurance.
o Increases certain regulatory authority over licensed insurance agents and
agencies.
o Reduces the standard for receipt of anti-fraud rewards by no longer requiring
a conviction in the reported case.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 487 (2023)
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 Salzman offered the following:
4
5 Amendment
6 Remove everything after the enacting clause and insert:
7 Section 1. Paragraph (e) of subsection (2) and subsection
8 (6) of section 20.121, Florida Statutes, are amended to read:
9 20.121 Department of Financial Services.—There is created
10 a Department of Financial Services.
11 (2) DIVISIONS.—The Department of Financial Services shall
12 consist of the following divisions and office:
13 (e) The Division of Investigative and Forensic Services,
14 which shall function as a criminal justice agency for purposes
15 of ss. 943.045-943.08. The division may initiate and conduct
16 investigations into any matter under the jurisdiction of the
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Amendment No. 1
17 Chief Financial Officer and Fire Marshal within or outside of
18 this state as it deems necessary. If, during an investigation,
19 the division has reason to believe that any criminal law of this
20 state or the United States has or may have been violated, it
21 shall refer any records tending to show such violation to state
22 or federal law enforcement and, if applicable, federal or
23 prosecutorial agencies and shall provide investigative
24 assistance to those agencies as appropriate required. The
25 division shall include the following bureaus and office:
26 1. The Bureau of Forensic Services;
27 2. The Bureau of Fire, Arson, and Explosives
28 Investigations;
29 3. The Office of Fiscal Integrity, which shall have a
30 separate budget;
31 4. The Bureau of Insurance Fraud; and
32 5. The Bureau of Workers' Compensation Fraud.
33 (6) STRATEGIC MARKETS RESEARCH AND ASSESSMENT UNIT.—The
34 Strategic Markets Research and Assessment Unit is established
35 within the Department of Financial Services. The Chief Financial
36 Officer or his or her designee shall report on September 1,
37 2008, and quarterly thereafter, to the Cabinet, the President of
38 the Senate, and the Speaker of the House of Representatives on
39 the status of the state's financial services markets. At a
40 minimum, the report must include a summary of issues, trends,
41 and threats that broadly impact the condition of the financial
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Bill No. HB 487 (2023)
Amendment No. 1
42 services industries, along with the effect of such conditions on
43 financial institutions, the securities industries, other
44 financial entities, and the credit market. The Chief Financial
45 Officer shall also provide findings and recommendations
46 regarding regulatory and policy changes to the Cabinet, the
47 President of the Senate, and the Speaker of the House o f
48 Representatives.
49 Section 2. Subsections (2) and (4), paragraph (a) of
50 subsection (8), and subsection (12) of section 112.215, Florida
51 Statutes, are amended to read:
52 112.215 Government employees; deferred compensation
53 program.—
54 (2) For the purposes of this section, the term "government
55 employee" means any person employed, whether appointed, elected,
56 or under contract, by providing services for the state or any
57 governmental unit of the state, including, but not limited to,;
58 any state agency; any or county, municipality, or other
59 political subdivision of the state; any special district or
60 water management district, as the terms are defined in s.
61 189.012 municipality; any state university or Florida College
62 System institution, as the terms are defined in s. 1000.21(6)
63 and (3), respectively board of trustees; or any constitutional
64 county officer under s. 1(d), Art. VIII of the State
65 Constitution for which compensation or statutory fees are paid.
66 (4)(a) The Chief Financial Officer, with the approval of
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Bill No. HB 487 (2023)
Amendment No. 1
67 the State Board of Administration, shall establish a state such
68 plan or plans of deferred compensation for government state
69 employees and may include persons employed by a state university
70 as defined in s. 1000.21, a special district as defined in s.
71 189.012, or a water management district as defined in s.
72 189.012, including all such investment vehicles or products
73 incident thereto, as may be available through, or offered by,
74 qualified companies or persons, and may approve one or more such
75 plans for implementation by and on behalf of the state and its
76 agencies and employees.
77 (b) If the Chief Financial Officer deems it advisable, he
78 or she shall have the power, with the approval of the State
79 Board of Administration, to create a trust or other special
80 funds for the segregation of funds or assets resulting from
81 compensation deferred at the request of government employees
82 participating in of the state plan or its agencies and for the
83 administration of such program.
84 (c) The Chief Financial Officer, with the approval of the
85 State Board of Administration, may delegate responsibility for
86 administration of the state plan to a person the Chief Financial
87 Officer determines to be qualified, compensate such person, and,
88 directly or through such person or pursuant to a collective
89 bargaining agreement, contract with a private corporation or
90 institution to provide such services as may be part of any such
91 plan or as may be deemed necessary or proper by the Chief
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Amendment No. 1
92 Financial Officer or such person, including, but not limited to,
93 providing consolidated billing, individual and collective
94 recordkeeping and accountings, asset purchase, control, and
95 safekeeping, and direct disbursement of funds to employees or
96 other beneficiaries. The Chief Financial Officer may authorize a
97 person, private corporation, or institution to make direct
98 disbursement of funds under the state plan to an employee or
99 other beneficiary.
100 (d) In accordance with such approved plan, and upon
101 contract or agreement with an eligible government employee,
102 deferrals of compensation may be accomplished by payroll
103 deductions made by the appropriate officer or officers of the
104 state, with such funds being thereafter held and administered in
105 accordance with the plan.
106 (e) The administrative costs of the deferred compe nsation
107 plan must be wholly or partially self-funded. Fees for such
108 self-funding of the plan shall be paid by investment providers
109 and may be recouped from their respective plan participants.
110 Such fees shall be deposited in the Deferred Compensation Trust
111 Fund.
112 (8)(a) There is created a Deferred Compensation Advisory
113 Council composed of eight seven members.
114 1. One member shall be appointed by the Speaker of the
115 House of Representatives and the President of the Senate jointly
116 and shall be an employee of the legislative branch.
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Amendment No. 1
117 2. One member shall be appointed by the Chief Justice of
118 the Supreme Court and shall be an employee of the judicial
119 branch.
120 3. One member shall be appointed by the chair of the
121 Public Employees Relations Commission and shall be a nonexempt
122 public employee.
123 4. The remaining five four members shall be employed by
124 the executive branch and shall be appointed as follows:
125 a. One member shall be appointed by the Chancellor of the
126 State University System and shall be an employee of t he
127 university system.
128 b. One member shall be appointed by the Chief Financial
129 Officer and shall be an employee of the Chief Financial Officer.
130 c. One member shall be appointed by the Governor and shall
131 be an employee of the executive branch.
132 d. One member shall be appointed by the Executive Director
133 of the State Board of Administration and shall be an employee of
134 the State Board of Administration.
135 e. One member shall be appointed by the Chancellor of the
136 Florida College System and shall be an employee of the Florida
137 College System.
138 (12) The Chief Financial Officer may adopt any rule
139 necessary to administer and implement this act with respect to
140 the state deferred compensation plan or plans for state
141 employees and persons employed by a state university as defined
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Amendment No. 1
142 in s. 1000.21, a special district as defined in s. 189.012, or a
143 water management district as defined in s. 189.012.
144 Section 3. Subsection (1) of section 274.01, Florida
145 Statutes, is amended to read:
146 274.01 Definitions.—The following words as used in this
147 act have the meanings set forth in the below subsections, unless
148 a different meaning is required by the context:
149 (1) "Governmental unit" means the governing board,
150 commission, or authority of a county, a county agency, a
151 municipality, a special district as defined in s. 189.012 or
152 taxing district of the state, or the sheriff of the county.
153 Section 4. Subparagraph (c) of subsection (9) and
154 Subsections (12) and (14) of section 440.13, Florida Statutes,
155 are amended to read:
156 440.13 Medical services and supplies; penalty for
157 violations; limitations.—
158 (9) EXPERT MEDICAL ADVISORS.—
159 (c) If there is disagreement in the opinions of the health
160 care providers, if two health care providers disagree on medical
161 evidence supporting the employee's complaints or the need for
162 additional medical treatment, or if two health care providers
163 disagree that the employee is able to return to work, the
164 department may, and the judge of compensation claims shall may,
165 upon his or her own motion or within 15 days after receipt of a
166 written request by either the injured employee, the employer, or
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Amendment No. 1
167 the carrier, order the injured employee to be evaluated by an
168 expert medical advisor. The injured employee and the employer or
169 carrier may agree on the health care provider to serve as an
170 expert medical advisor. If the parties do not agree, the judge
171 of compensation claims shall select an expert medical advisor
172 from the department's list of certified expert medical advisors.
173 If a certified medical advisor within the relevant medical
174 specialty is unavailable, the judge of compensation claims shall
175 appoint any otherwise qualified health care provider to serve as
176 an expert medical advisor without obtaining the department's
177 certification. The opinion of the expert medical adviso r is
178 presumed to be correct unless there is clear and convincing
179 evidence to the contrary as determined by the judge of
180 compensation claims. The expert medical advisor appointed to
181 conduct the evaluation shall have free and complete access to
182 the medical records of the employee. An employee who fails to
183 report to and cooperate with such evaluation forfeits
184 entitlement to compensation during the period of failure to
185 report or cooperate.
186 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
187 REIMBURSEMENT ALLOWANCES.—
188 (a) A three-member panel is created, consisting of the
189 Chief Financial Officer, or the Chief Financial Officer's
190 designee, and two members to be appointed by the Governor,
191 subject to confirmation by the Senate, one member who, on
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Amendment No. 1
192 account of present or previous vocation, employment, or
193 affiliation, shall be classified as a representative of
194 employers, the other member who, on account of previous
195 vocation, employment, or affiliation, shall be classified as a
196 representative of employees. The panel shall determine statewide
197 schedules of maximum reimbursement allowances for medically
198 necessary treatment, care, and attendance provided by
199 physicians, hospitals and, ambulatory surgical centers, work-
200 hardening programs, pain programs, and durable medica l
201 equipment. The maximum reimbursement allowances for inpatient
202 hospital care shall be based on a schedule of per diem rates, to
203 be approved by the three-member panel no later than March 1,
204 1994, to be used in conjunction with a precertification manual
205 as determined by the department, including maximum hours in
206 which an outpatient may remain in observation status, which
207 shall not exceed 23 hours. All compensable charges for hospital
208 outpatient care shall be reimbursed at 75 percent of usual and
209 customary charges, except as otherwise provided by this
210 subsection. Annually, the three-member panel shall adopt
211 schedules of maximum reimbursement allowances for physicians,
212 hospital inpatient care, hospital outpatient care, and
213 ambulatory surgical centers, work-hardening programs, and pain
214 programs. A An individual physician, hospital or, ambulatory
215 surgical center, pain program, or work-hardening program shall
216 be reimbursed the agreed-upon contract price or the maximum
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Amendment No. 1
217 reimbursement allowance in the appropriate schedule.
218 (b) It is the intent of the Legislature to increase the
219 schedule of maximum reimbursement allowances for selected
220 physicians effective January 1, 2004, and to pay for the
221 increases through reductions in payments to hospitals. Revisions
222 developed pursuant to this subsection are limited to the
223 following:
224 1. Payments for outpatient physical, occupational, and
225 speech therapy provided by hospitals shall be reduced to the
226 schedule of maximum reimbursement allowances for these services
227 which applies to nonhospital providers.
228 (c)2. Payments for scheduled outpatient nonemergency
229 radiological and clinical laboratory services that are not
230 provided in conjunction with a surgical procedure shall be
231 reduced to the schedule of maximum reimbursement allowances for
232 these services which applies to nonhospital providers.
233 (d)3. Outpatient reimbursement for scheduled surgeries
234 shall be reduced from 75 percent of charges to 60 percent of
235 charges.
236 (e)1. By July 1 of each year, the department shall notify
237 carriers and self-insurers of the physician and nonhospital
238 services schedule of maximum reimbursement allowances. The
239 notice must include publication of this schedule of maximum
240 reimbursement allowances on the division's website. This
241 schedule is not subject to approval by the three-member panel
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Amendment No. 1
242 and does not include reimbursement for prescription medication.
243 2. Subparagraph 1. shall take effect January 1, following
244 the July 1, 2024, notice of the physician and nonhospital
245 services schedule of maximum reimbursement allowances which the
246 department provides to carriers and self-insurers.
247 (f)4. Maximum reimbursement for a physician licensed under
248 chapter 458 or chapter 459 shall be increased to 110 percent of
249 the reimbursement allowed by Medicare, using appropriate codes
250 and modifiers or the medical reimbursement level adopted by the
251 three-member panel as of January 1, 2003, whichever is greater.
252 (g)5. Maximum reimbursement for surgical procedures shall
253 be increased to 140 percent of the reimbursement allowed by
254 Medicare or the medical reimbursement level adopted by the
255 three-member panel as of January 1, 2003, whichever is greater.
256 (h)(c) As to reimbursement for a prescription medication,
257 the reimbursement amount for a prescription shall be the average
258 wholesale price plus $4.18 for the dispensing fee. For
259 repackaged or relabeled prescription medications dispensed by a
260 dispensing practitioner as provided in s. 465.0276, the fee
261 schedule for reimbursement shall be 112.5 percent of the average
262 wholesale price, plus $8.00 for the dispensing fee. For purposes
263 of this subsection, the average wholesale price shall be
264 calculated by multiplying the number of units dispensed times
265 the per-unit average wholesale price set by the original
266 manufacturer of the underlying drug dispensed by the
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267 practitioner, based upon the published manufacturer's average
268 wholesale price published in the Medi-Span Master Drug Database
269 as of the date of dispensing. All pharmaceutical claims
270 submitted for repackaged or relabeled prescription medications
271 must include the National Drug Code of the original
272 manufacturer. Fees for pharmaceuticals and pharmaceutical
273 services shall be reimbursable at the applicable fee sch edule
274 amount except where the employer or carrier, or a service
275 company, third party administrator, or any entity acting on
276 behalf of the employer or carrier directly contracts with the
277 provider seeking reimbursement for a lower amount.
278 (i)(d) Reimbursement for all fees and other charges for
279 such treatment, care, and attendance, including treatment, care,
280 and attendance provided by any hospital or other health care
281 provider, ambulatory surgical center, work-hardening program, or
282 pain program, must not exceed the amounts provided by the
283 uniform schedule of maximum reimbursement allowances as
284 determined by the panel or as otherwise provided in this
285 section. This subsection also applies to independent medical
286 examinations performed by health care providers under this
287 chapter. In determining the uniform schedule, the panel shall
288 first approve the data which it finds representative of
289 prevailing charges in the state for similar treatment, care, and
290 attendance of injured persons. Each health care provider, health
291 care facility, ambulatory surgical center, work-hardening
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292 program, or pain program receiving workers' compensation
293 payments shall maintain records verifying their usual charges.
294 In establishing the uniform schedule of maximum reimbursement
295 allowances, the panel must consider:
296 1. The levels of reimbursement for similar treatment,
297 care, and attendance made by other health care programs or
298 third-party providers;
299 2. The impact upon cost to employers for providing a level
300 of reimbursement for treatment, care, and attendance which will
301 ensure the availability of treatment, care, and attendance
302 required by injured workers; and
303 3. The financial impact of the reimbursement allowances
304 upon health care providers and health care facilities, including
305 trauma centers as defined in s. 395.4001, and its effect upon
306 their ability to make available to injured workers such
307 medically necessary remedial treatment, care, and attendance.
308 The uniform schedule of maximum reimbursement allowances must be
309 reasonable, must promote health care cost containment and
310 efficiency with respect to the workers' compensation health care
311 delivery system, and must be sufficient to ensure availability
312 of such medically necessary remedial treatment, care, and
313 attendance to injured workers; and
314 4. The most recent average maximum allowable rate of
315 increase for hospitals determined by the Health Care Board under
316 chapter 408.
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317 (j)(e) In addition to establishing the uniform schedule of
318 maximum reimbursement allowances, the panel shall:
319 1. Take testimony, receive records, and collect data to
320 evaluate the adequacy of the workers' compensation fee schedule,
321 nationally recognized fee schedules and alternative methods of
322 reimbursement to health care providers and health care
323 facilities for inpatient and outpatient treatment and care.
324 2. Survey health care providers and health care facilities
325 to determine the availability and accessibility of workers'
326 compensation health care delivery systems for injured workers.
327 3. Survey carriers to determine the estimated impact on
328 carrier costs and workers' compensation premium rates by
329 implementing changes to the carrier reimbursement schedule or
330 implementing alternative reimbursement methods.
331 4. Submit recommendations on or before January 15, 2017,
332 and biennially thereafter, to the President of the Senate and
333 the Speaker of the House of Representatives on methods to
334 improve the workers' compensation health care delivery system.
335
336 The department, as requested, shall provide data to the panel,
337 including, but not limited to, utilization trends in the
338 workers' compensation health care delivery system. The
339 department shall provide the panel with an annual report
340 regarding the resolution of medical reimbursement disputes and
341 any actions pursuant to subsection (8). The department shall
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342 provide administrative support and service to the panel to the
343 extent requested by the panel. For prescription medication
344 purchased under the requirements of this subsection, a
345 dispensing practitioner shall not possess such medication unl ess
346 payment has been made by the practitioner, the practitioner's
347 professional practice, or the practitioner's practice management
348 company or employer to the supplying manufacturer, wholesaler,
349 distributor, or drug repackager within 60 days of the dispensing
350 practitioner taking possession of that medication.
351 (14) PRACTICE PARAMETERS.—The practice parameters and
352 protocols mandated under this chapter shall be the practice
353 parameters and protocols adopted by the United States Agency for
354 Healthcare Research and Quality in effect on January 1, 2003.
355 Section 5. Subsection (8) of section 440.38, Florida
356 Statutes, is created to read:
357 440.38 Security for compensation; insurance carriers and
358 self-insurers.—
359 (8) Any form used by the department to evidence an
360 employer's workers' compensation coverage under paragraph (1)(a)
361 must contain the following:
362 (a) The governing class code or codes;
363 (b) Payroll information; and
364 (c) The total number of employees covered by the workers'
365 compensation insurance policy.
366 Section 6. Effective January 1, 2024, subsection (2) of
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367 section 440.385, Florida Statutes, is amended to read:
368 440.385 Florida Self-Insurers Guaranty Association,
369 Incorporated.—
370 (2) BOARD OF DIRECTORS.—The board of directors of the
371 association shall consist of nine persons and shall be organized
372 as established in the plan of operation. Each director must All
373 board members shall be experienced in self-insurance in this
374 state. Each director shall serve for a 4-year term and may be
375 reappointed. Appointments after January 1, 2002, shall be made
376 by the department upon recommendation of members of the
377 association or other persons with experience in self-insurance
378 as determined by the Chief Financial Officer. Any vacancy on the
379 board shall be filled for the remaining period of the term in
380 the same manner as appointments other than initial appointments
381 are made. Each director shall be reimbursed for expenses
382 incurred in carrying out the duties of the board on behalf of
383 the association.
384 (a) The Chief Financial Officer may remove a director from
385 office for misconduct, malfeasance, misfeasance, or neglect of
386 duty. Any vacancy so created shall be filled as provided in this
387 subsection.
388 (b) Directors are subject to the code of ethics under part
389 III of chapter 112, including, but not limited to, the code of
390 ethics and public disclosure and reporting of financial
391 interests, pursuant to s. 112.3145. For purposes of applying
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392 part III of chapter 112 to activities of members of the board of
393 directors, those persons are considered public officers and the
394 association is considered their agency. Notwithstanding s.
395 112.3143(2), a director may not vote on any measure that he or
396 she knows would inure to his or her special private gain or
397 loss; that he or she knows would inure to the special private
398 gain or loss of any principal by which he or she is retained,
399 other than an agency as defined in s. 112.312; or that he or she
400 knows would inure to the special private gain or loss of a
401 relative or business associate of the public officer. Before the
402 vote is taken, such director shall publicly state to the board
403 the nature of his or her interest in the matter from which he or
404 she is abstaining from voting and, within 15 days after the vote
405 occurs, disclose the nature of his or her interest as a public
406 record in a memorandum filed with the person responsible for
407 recording the minutes of the meeting, who shall incorporate the
408 memorandum in the minutes.
409 (c) Notwithstanding s. 112.3148, s. 112.3149, or any other
410 law, an employee of the association or a director may not
411 knowingly accept, directly or indirectly, any gift or
412 expenditure from a person or entity, or an employee or
413 representative of such person or entity, which has a contractual
414 relationship with the association or which is under
415 consideration for a contract.
416 (d) A director who fails to comply with paragraph (b) or
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417 paragraph (c) is subject to the penalties provided under ss.
418 112.317 and 112.3173.
419 Section 7. Subsection (25) of section 624.501, Florida
420 Statutes, is amended to read:
421 624.501 Filing, license, appointment, and miscellaneous
422 fees.—The department, commission, or office, as appropriate,
423 shall collect in advance, and persons so served shall pay to it
424 in advance, fees, licenses, and miscellaneous charges as
425 follows:
426 (25) Reinsurance intermediary:
427 (a) Application filing and license fee $50.00
428 (b) Original appointment and biennial renewal or
429 continuation thereof, appointment fee $60.00
430 Section 8. Subsection (5) of section 626.015, Florida
431 Statutes, is amended to read:
432 626.015 Definitions.—As used in this part:
433 (5) "Association" includes the Florida Association of
434 Insurance Agents (FAIA), the National Association of Insurance
435 and Financial Advisors (NAIFA), the National Association of
436 Benefits and Insurance Professionals Florida Chapter (NABIP
437 Florida) Florida Association of Health Underwriters (FAHU), the
438 Latin American Association of Insurance Agencies (LAAIA), the
439 Florida Association of Public Insurance Adjusters (FAPIA), the
440 Florida Bail Agents Association (FBAA), or the Professional Bail
441 Agents of the United States (PBUS).
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442 Section 9. Subsection (4) of section 626.171, Florida
443 Statutes, is amended to read:
444 626.171 Application for license as an agent, customer
445 representative, adjuster, service representative, or reinsurance
446 intermediary.—
447 (4) An applicant for a license issued by the department
448 under this chapter must submit a set of the individual
449 applicant's fingerprints, or, if the applicant is not an
450 individual, a set of the fingerprints of the sole proprietor,
451 majority owner, partners, officers, and directors, to the
452 department and must pay the fingerprint processing fee set forth
453 in s. 624.501. Fingerprints must be processed in ac cordance with
454 s. 624.34 and used to investigate the applicant's qualifications
455 pursuant to s. 626.201. The fingerprints must be taken by a law
456 enforcement agency, designated examination center, or other
457 department-approved entity. The department shall require all
458 designated examination centers to have fingerprinting equipment
459 and to take fingerprints from any applicant or prospective
460 applicant who pays the applicable fee. The department may not
461 approve an application for licensure as an agent, customer
462 service representative, adjuster, service representative, or
463 reinsurance intermediary if fingerprints have not been
464 submitted.
465 Section 10. Paragraph (c) of subsection (1) of section
466 626.173, Florida Statutes, is amended to read:
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467 626.173 Insurance agency closure; cancellation of
468 licenses.—
469 (1) If a licensed insurance agency permanently ceases the
470 transacting of insurance or ceases the transacting of insurance
471 for more than 30 days, the agent in charge, the director of the
472 agency, or other officer listed on the original application for
473 licensure must, within 35 days after the agency first ceases the
474 transacting of insurance, do all of the following:
475 (c) Notify all policyholders currently insured by a policy
476 written, produced, or serviced by the agency of the agency's
477 cessation of operations; the date on which operations ceased;
478 and the identity of the agency or agent to which the agency's
479 current book of business has been transferred or, if no transfer
480 has occurred, a statement directing the policyholder to contact
481 the insurance company for assistance in locating a licensed
482 agent to service the policy. This paragraph does not apply to
483 title insurance, life insurance, or annuity contracts.
484 Section 11. Subsection (8) of section 626.207, Florida
485 Statutes, is amended to read:
486 626.207 Disqualification of applicants and licensees;
487 penalties against licensees; rulemaking authority.—
488 (8) The department shall adopt rules establishing specific
489 penalties against licensees in accordance with ss. 626.641 and
490 626.651 for violations of s. 626.112(7) or (9), s. 626.611, s.
491 626.6115, s. 626.621, s. 626.6215, s. 626.7451, s. 626.8437, s.
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492 626.844, s. 626.8695, s. 626.8697, s. 626.8698, s. 626.935, s.
493 634.181, s. 634.191, s. 634.320, s. 634.321, s. 634.422, s.
494 634.423, s. 642.041, or s. 642.043. The purpose of the
495 revocation or suspension is to provide a sufficient penalty to
496 deter future violations of the Florida Insurance Code. The
497 imposition of a revocation or the length of suspension shall be
498 based on the type of conduct and the probability that the
499 propensity to commit further illegal conduct has been overcome
500 at the time of eligibility for relicensure. The length of
501 suspension may be adjusted based on aggravating or mitigating
502 factors, established by rule and consistent with this purpose.
503 Section 12. Paragraph (j) of subsection (2) of section
504 626.221, Florida Statutes, is amended to read:
505 626.221 Examination requirement; exemptions.—
506 (2) However, an examination is not necessary for any of
507 the following:
508 (j) An applicant for license as an all-lines adjuster who
509 has the designation of Accredited Claims Adjuster (ACA) from a
510 regionally accredited postsecondary institution in this state;
511 Certified All Lines Adjuster (CALA) from Kaplan Financial
512 Education; Associate in Claims (AIC) from the Insurance
513 Institute of America; Professional Claims Adjuster (PCA) from
514 the Professional Career Institute; Professional Property
515 Insurance Adjuster (PPIA) from the HurriClaim Training Academy;
516 Certified Adjuster (CA) from ALL LINES Training; Certified
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517 Claims Adjuster (CCA) from AE21 Incorporated; Claims Adjuster
518 Certified Professional (CACP) from WebCE, Inc.; Accredited
519 Insurance Claims Specialist (AICS) from Encore Claim Services;
520 Professional in Claims (PIC) from 2021 Training, LLC; or
521 Universal Claims Certification (UCC) from Claims and Litigation
522 Management Alliance (CLM) whose curriculum has been approved by
523 the department and which includes comprehensive analysis of
524 basic property and casualty lines of insurance and testing at
525 least equal to that of standard department testing for the all-
526 lines adjuster license. The department shall adopt rules
527 establishing standards for the approval of curriculum.
528 Section 13. Paragraphs (c) and (f) of subsection (3) of
529 section 626.2815, Florida Statutes, are amended to read:
530 626.2815 Continuing education requirements.—
531 (3) Each licensee except a title insurance agent must
532 complete a 4-hour update course every 2 years which is specific
533 to the license held by the licensee. The course must be
534 developed and offered by providers and approved by the
535 department. The content of the course must address all lines of
536 insurance for which examination and licensure are required and
537 include the following subject areas: insurance law updates,
538 ethics for insurance professionals, disciplinary trends and case
539 studies, industry trends, premium discounts, determining
540 suitability of products and services, and other similar
541 insurance-related topics the department determines are relevant
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542 to legally and ethically carrying out the responsibilities of
543 the license granted. A licensee who holds multiple insurance
544 licenses must complete an update course that is specific to at
545 least one of the licenses held. Except as otherwise specified,
546 any remaining required hours of continuing education are
547 elective and may consist of any continuing education course
548 approved by the department under this section.
549 (c) A licensee who has been licensed for 25 years or more
550 and is a CLU or a CPCU or has a Bachelor of Science degree or
551 higher in risk management or insurance with evidence of 18 or
552 more semester hours in insurance-related courses must also
553 complete a minimum of 6 hours of elective continuing education
554 courses every 2 years.
555 (f) Elective continuing education courses for public
556 adjusters may must be any course related to commercial and
557 residential property coverages, claim adjusting practices, and
558 any other adjuster elective courses specifically designed for
559 public adjusters and approved by the department. Notwithstanding
560 this subsection, public adjusters for workers' compensation
561 insurance or health insurance are not required to take
562 continuing education courses pursuant to this section.
563 Section 14. Paragraphs (a), (b), and (e) of subsection (1)
564 of section 626.321, Florida Statutes, are amended, and paragraph
565 (i) is added to that subsection, to read:
566 626.321 Limited licenses and registration.—
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567 (1) The department shall issue to a qualified applicant a
568 license as agent authorized to transact a limited class of
569 business in any of the following categories of limited lines
570 insurance:
571 (a) Motor vehicle physical damage and mechanical breakdown
572 insurance.—License covering insurance against only the loss of
573 or damage to a motor vehicle that is designed for use upon a
574 highway, including trailers and semitrailers designed for use
575 with such vehicles. Such license also covers insurance against
576 the failure of an original or replacement part to perform any
577 function for which it was designed. A licensee under this
578 paragraph may not hold a license as an agent for any other or
579 additional kind or class of insurance coverage except a limited
580 license for credit insurance as provided in paragraph (e).
581 Effective October 1, 2012, all licensees holding such limited
582 license and appointment may renew the license and appointment,
583 but no new or additional licenses may be issued pursuant to this
584 paragraph, and a licensee whose limited license under this
585 paragraph has been terminated, suspended, or revoked may not
586 have such license reinstated.
587 (b) Industrial fire insurance or burglary insurance.—
588 License covering only industrial fire insurance or burglary
589 insurance. A licensee under this paragraph may not hold a
590 license as an agent for any other or additional kind or class of
591 insurance coverage except for life insurance and health
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592 insurance. Effective July 1, 2019, all licensees holding such
593 limited license and appointment may renew the license and
594 appointment, but no new or additional licenses may be issued
595 pursuant to this paragraph, and a licensee whose limited license
596 under this paragraph has been terminated, suspended, or revoked
597 may not have such license reinstated.
598 (e) Credit insurance.—License covering credit life, credit
599 disability, credit property, credit unemployment, involuntary
600 unemployment, mortgage life, mortgage guaranty, mortgage
601 disability, guaranteed automobile protection (GAP) insurance,
602 and any other form of insurance offered in connection with an
603 extension of credit which is limited to partially or wholly
604 extinguishing a credit obligation that the department determines
605 should be designated a form of limited line credit insurance.
606 Effective October 1, 2012, all valid licenses held by persons
607 for any of the lines of insurance listed in this paragraph shall
608 be converted to a credit insurance license. Licensees who wish
609 to obtain a new license reflecting such change must request a
610 duplicate license and pay a $5 fee as specified in s.
611 624.501(15). The license may be issued only to an individual
612 employed by a life or health insurer as an officer or other
613 salaried or commissioned representative, to an individual
614 employed by or associated with a lending or financial
615 institution or creditor, or to a lending or financial
616 institution or creditor, and may authorize the sale of such
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617 insurance only with respect to borrowers or debtors of such
618 lending or financing institution or creditor. However, only the
619 individual or entity whose tax identification number is used in
620 receiving or is credited with receiving the commission from the
621 sale of such insurance shall be the licensed agent of the
622 insurer. No individual while so licensed shall hold a license as
623 an agent as to any other or additional kind or class of life or
624 health insurance coverage.
625 (i) Preneed funeral agreement insurance.—Limited license
626 for insurance covering only prearranged funeral, cremation, or
627 cemetery agreements, or any combination thereof, funded by
628 insurance and offered in connection with an establishment that
629 holds a preneed license pursuant to s. 497.452. Such license may
630 be issued without examination only to an individual who has
631 filed with the department an application for a license in a form
632 and manner prescribed by the department, who currently holds a
633 valid preneed sales agent license pursuant to s. 497.466, who
634 paid the applicable fees for a license as prescribed in s.
635 624.501, who has been appointed under s. 626.112, and who paid
636 the prescribed appointment fee under s. 624.501.
637 Section 15. Paragraph (n) of subsection (1) of section
638 626.611, Florida Statutes, is amended to read:
639 626.611 Grounds for compulsory refusal, suspension, or
640 revocation of agent's, title agency's, adjuster's, cust omer
641 representative's, service representative's, or managing general
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642 agent's license or appointment.—
643 (1) The department shall deny an application for, suspend,
644 revoke, or refuse to renew or continue the license or
645 appointment of any applicant, agent, title agency, adjuster,
646 customer representative, service representative, or managing
647 general agent, and it shall suspend or revoke the eligibility to
648 hold a license or appointment of any such person, if it finds
649 that as to the applicant, licensee, or appointee any one or more
650 of the following applicable grounds exist:
651 (n) Having been found guilty of or having pleaded guilty
652 or nolo contendere to a misdemeanor directly related to the
653 financial services business, any felony, or any a crime
654 punishable by imprisonment of 1 year or more under the law of
655 the United States of America or of any state thereof or under
656 the law of any other country, without regard to whether a
657 judgment of conviction has been entered by the court having
658 jurisdiction of such cases.
659 Section 16. Subsection (18) is added to section 626.621,
660 Florida Statutes, to read:
661 626.621 Grounds for discretionary refusal, suspension, or
662 revocation of agent's, adjuster's, customer representative's,
663 service representative's, or managing general agent's license or
664 appointment.—The department may, in its discretion, deny an
665 application for, suspend, revoke, or refuse to renew or continue
666 the license or appointment of any applicant, agent, adjuster,
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667 customer representative, service representative, or managing
668 general agent, and it may suspend or revoke the eligibility to
669 hold a license or appointment of any such person, if it finds
670 that as to the applicant, licensee, or appointee any one or more
671 of the following applicable grounds exist under circumstances
672 for which such denial, suspension, revocation, or refusal is not
673 mandatory under s. 626.611:
674 (18) Cancellation of the applicant's, licensee's, or
675 appointee's resident license in a state other than Florida.
676 Section 17. Paragraphs (d) and (g) of subsection (2) and
677 paragraphs (a), (b), and (e) through (j) of subsection (3) of
678 section 626.7492, Florida Statutes, are amended to read:
679 626.7492 Reinsurance intermediaries.—
680 (2) DEFINITIONS.—As used in this section:
681 (d) "Producer" means a licensed an agent, broker, or
682 insurance agency that is appointed as a reinsurance intermediary
683 licensed pursuant to the applicable provision of the Florida
684 Insurance Code.
685 (g) "Reinsurance intermediary manager" means any person
686 who has authority to bind, or manages all or part of, the
687 assumed reinsurance business of a reinsurer, including the
688 management of a separate division, department, or underwriting
689 office, and acts as a representative an agent for the reinsurer
690 whether known as a reinsurance intermediary manager, ma nager, or
691 other similar term. Notwithstanding the above, none of the
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692 following persons is a reinsurance intermediary manager with
693 respect to the reinsurer for the purposes of this section:
694 1. An employee of the reinsurer;
695 2. A manager of the United States branch of an alien
696 reinsurer;
697 3. An underwriting manager which, pursuant to contract,
698 manages all the reinsurance operations of the reinsurer, is
699 under common control with the reinsurer, subject to the holding
700 company act, and whose compensation is not based on the volume
701 of premiums written.
702 4. The manager of a group, association, pool, or
703 organization of insurers which engage in joint underwriting or
704 joint reinsurance and who are subject to examination by the
705 insurance regulatory authority of the state in which the
706 manager's principal business office is located.
707 (3) LICENSURE.—
708 (a) No person shall act as a reinsurance intermediary
709 broker in this state if the reinsurance intermediary broker
710 maintains an office either directly or as a member or employee
711 of a firm or association, or an officer, director, or employee
712 of a corporation:
713 1. In this state, unless the reinsurance intermediary
714 broker is a licensed producer in this state; or
715 2. In another state, unless the reinsurance intermediary
716 broker is a licensed producer in this state or in another state
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717 having a law substantially similar to this section or the
718 reinsurance intermediary broker is licensed in this state as an
719 insurance agency and appointed as a nonresident reinsurance
720 intermediary.
721 (b) No person shall act as a reinsurance intermediary
722 manager:
723 1. For a reinsurer domiciled in this state, unless the
724 reinsurance intermediary manager is a licensed producer in this
725 state;
726 2. In this state, if the reinsurance intermediary manager
727 maintains an office either directly or as a member or employee
728 of a firm or association, or an officer, director, or employee
729 of a corporation in this state, unless the reinsurance
730 intermediary manager is a licensed producer in this state;
731 3. In another state for a nondomestic insurer, unless the
732 reinsurance intermediary manager is a licensed producer in this
733 state or another state having a law substantially similar to
734 this section, or the person is licensed in this state as a
735 producer nonresident reinsurance intermediary.
736 (e) If the applicant for a reinsurance intermediary
737 appointment license is a nonresident, the applicant, as a
738 condition precedent to receiving or holding an appointment a
739 license, must designate the Chief Financial Officer as agent for
740 service of process in the manner, and with the same legal
741 effect, provided for by this section for designation of service
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742 of process upon unauthorized insurers. Such applicant shall also
743 furnish the department with the name and address of a resident
744 of this state upon whom notices or orders of the department or
745 process affecting the nonresident reinsurance intermediary may
746 be served. The licensee shall promptly notify the department in
747 writing of each change in its designated agent for service of
748 process, and the change shall not become effective until
749 acknowledged by the department.
750 (f) The department may refuse to issue a reinsurance
751 intermediary license if, in its judgment, the applicant, anyone
752 named on the application, or any member, principal, officer, or
753 director of the applicant, has demonstrated a lack of fitness
754 and trustworthiness, or that any controlling person of the
755 applicant is not fit or trustworthy to act as a reinsurance
756 intermediary, or that any of the foregoing has given cause for
757 revocation or suspension of the license, or has failed to comply
758 with any prerequisite for the issuance of the license.
759 (g) Reinsurance intermediaries shall be licensed,
760 appointed, renewed, continued, reinstated, or terminated as
761 prescribed in this chapter for insurance representatives in
762 general, except that they shall be exempt from the photo,
763 education, and examination provisions. License, Appointment, and
764 other fees shall be those prescribed in s. 624.501.
765 (g)(h) The grounds and procedures for refusal of an a
766 license or appointment or suspension or revocation of a license
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767 or appointment issued to a reinsurance intermediary under this
768 section are as set forth in ss. 626.611-626.691 for insurance
769 representatives in general.
770 (h)(i) An attorney licensed in this state, when acting in
771 a professional capacity, is exempt from this subsection.
772 (i)(j) The department may develop necessary rules to carry
773 out this section.
774 Section 18. Subsection (5) of section 626.752, Florida
775 Statutes, is amended to read:
776 626.752 Exchange of business.—
777 (5) Within 15 days after the last day of each month, any
778 insurer accepting business under this section shall report to
779 the department the name, address, telephone number, and social
780 security number of each agent from which the insurer received
781 more than four personal lines risks during the calendar year,
782 except for risks being removed from the Citizens Property
783 Insurance Corporation and placed with that insurer by a
784 brokering agent. Once the insurer has reported pursuant to this
785 subsection an agent's name to the department, additional reports
786 on the same agent shall not be required. However, the fee set
787 forth in s. 624.501 must be paid for the agent by the insurer
788 for each year until the insurer notifies the department that the
789 insurer is no longer accepting business from the agent pursuant
790 to this section. The insurer may require that the agent
791 reimburse the insurer for the fee. If the insurer or employer
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792 does not pay the fees and taxes due pursuant to this subsection
793 within 21 days after notice by the department, the department
794 must suspend the insurer's or employer's authority to appoint
795 licensees until all outstanding fees and taxes have been paid.
796 Section 19. Subsection (3) of section 626.785, Florida
797 Statutes, is amended to read:
798 626.785 Qualifications for license.—
799 (3) Notwithstanding any other provisions of this chapter,
800 a funeral director, a direct disposer, or an employee of a
801 funeral establishment that holds a preneed license pursuant to
802 s. 497.452 may obtain an agent's license or a limited license to
803 sell only policies of life insurance covering the expense of a
804 prearrangement for funeral services or merchandise so as to
805 provide funds at the time the services and merchandise are
806 needed. The face amount of insurance covered by any such policy
807 shall not exceed $21,000, plus an annual percentage increase
808 based on the Annual Consumer Price Index compiled by the United
809 States Department of Labor, beginning with the Annual Consumer
810 Price Index announced by the United States Department of Labor
811 for 2016.
812 Section 20. Subsection (4) of section 626.793, Florida
813 Statutes, is amended to read:
814 626.793 Excess or rejected business.—
815 (4) Within 15 days after the last day of each month, any
816 insurer accepting business under this section shall report to
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817 the department the name, address, telephone number, and social
818 security number of each agent from which the insurer received
819 more than four risks during the calendar year. Once the insurer
820 has reported an agent's name to the department pursuant to this
821 subsection, additional reports on the same agent shall not be
822 required. However, the fee set forth in s. 624.501 must be paid
823 for the agent by the insurer for each year until the insurer
824 notifies the department that the insurer is no longer accepting
825 business from the agent pursuant to this section. The insurer
826 may require that the agent reimburse the insurer for the fee. If
827 the insurer or employer does not pay the fees and taxes due
828 pursuant to this subsection within 21 days after notice by the
829 department, the department must suspend the insurer's or
830 employer's authority to appoint licensees until all outstanding
831 fees and taxes have been paid.
832 Section 21. Subsection (5) of section 626.837, Florida
833 Statutes, is amended to read:
834 626.837 Excess or rejected business.—
835 (5) Within 15 days after the last day of each month, any
836 insurer accepting business under this section shall report to
837 the department the name, address, telephone number, and social
838 security number of each agent from which the insurer received
839 more than four risks during the calendar year. Once the insurer
840 has reported pursuant to this subsection an agent's name to the
841 department, additional reports on the same agent shall not be
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842 required. However, the fee set forth in s. 624.501 must be paid
843 for the agent by the insurer for each year until the insurer
844 notifies the department that the insurer is no longer accepting
845 business from the agent pursuant to this section. The insurer
846 may require that the agent reimburse the insurer for the fee. If
847 the insurer or employer does not pay the fees and taxes due
848 pursuant to this subsection within 21 days after notice by the
849 department, the department must suspend the insurer's or
850 employer's authority to appoint licensees until all outstandi ng
851 fees and taxes have been paid.
852 Section 22. Paragraph (e) is added to subsection (2) of
853 section 626.8411, Florida Statutes, to read:
854 626.8411 Application of Florida Insurance Code provisions
855 to title insurance agents or agencies.—
856 (2) The following provisions of part I do not apply to
857 title insurance agents or title insurance agencies:
858 (e) Section 626.173(1)(c), relating to notifying
859 policyholders of the agency closure.
860 Section 23. Present subsections (8) through (11) of
861 section 626.8437, Florida Statutes, are redesignated as
862 subsections (9) through (12), respectively, and a new subsection
863 (8) and subsection (13) are added to that section, read:
864 626.8437 Grounds for denial, suspension, revocation, or
865 refusal to renew license or appointment.—The department shall
866 deny, suspend, revoke, or refuse to renew or continue the
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867 license or appointment of any title insurance agent or agency,
868 and it shall suspend or revoke the eligibility to hold a license
869 or appointment of such person, if it finds that as to the
870 applicant, licensee, appointee, or any principal thereof, any
871 one or more of the following grounds exist:
872 (8) Misappropriation, conversion, or improper withholding
873 of funds not being legally entitled thereto and received in a
874 fiduciary capacity and held as part of an escrow agreement, real
875 estate sales contract, or as provided on a settlement statement
876 in a real estate transaction.
877 (13) Revocation or cancellation of a licensee's resident
878 license in a jurisdiction other than this state.
879 Section 24. Subsections (7) and (8) are added to section
880 626.844, Florida Statutes, to read:
881 626.844 Grounds for discretionary refusal, suspension, or
882 revocation of license or appointment.—The department may, in its
883 discretion, deny, suspend, revoke, or refuse to renew or
884 continue the license or appointment of any title insurance agent
885 or agency, and it may suspend or revoke the eligibility to hold
886 a license or appointment of any such title insurance agent or
887 agency if it finds that as to the applicant or licensee or
888 appointee, or any principal thereof, any one or more of the
889 following grounds exist under circumstances for which such
890 denial, suspension, revocation, or refusal is not mandatory
891 under s. 626.8437:
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892 (7) Having been the subject of, or having had a license,
893 permit, appointment, registration, or other authority to conduct
894 business subject to, any decision, finding, injunction,
895 suspension, prohibition, revocation, denial, judgment, final
896 agency action, or administrative order by any court of competen t
897 jurisdiction, administrative law proceeding, state agency,
898 federal agency, national securities, commodities, or option
899 exchange, or national securities, commodities, or option
900 association involving a violation of any federal or state
901 securities or commodities law or any rule or regulation adopted
902 thereunder, or a violation of any rule or regulation of any
903 national securities, commodities, or options exchange or
904 national securities, commodities, or options association.
905 (8) Revocation or cancellation of a licensee's resident
906 license in a jurisdiction other than this state.
907 Section 25. Section 626.8473, Florida Statutes, is amended
908 to read:
909 626.8473 Escrow; trust fund.—
910 (1) A title insurance agency agent may engage in business
911 as an escrow agent as to funds received from others to be
912 subsequently disbursed by the title insurance agent in
913 connection with real estate closing transactions involving the
914 issuance of title insurance binders, commitments, policies of
915 title insurance, or guarantees of title, provided that a
916 licensed and appointed title insurance agency agent complies
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917 with the requirements of s. 626.8419 s. 626.8417, including such
918 requirements added after the initial licensure of the agency
919 agent.
920 (2) All funds received by a title insurance agency agent
921 as described in subsection (1) shall be trust funds received in
922 a fiduciary capacity by the title insurance agency agent and
923 shall be the property of the person or persons entitled thereto.
924 (3) All funds received by a title insurance agency agent
925 to be held in trust shall be immediately placed in a financial
926 institution that is located within this state and is a member of
927 the Federal Deposit Insurance Corporation or the National Credit
928 Union Share Insurance Fund. These funds shall be invested in an
929 escrow account in accordance with the investment requirements
930 and standards established for deposits and investments of state
931 funds in s. 17.57, where the funds shall be kept until
932 disbursement thereof is properly authorized.
933 (4) Funds required to be maintained in escrow trust
934 accounts pursuant to this section shall not be subject to any
935 debts of the title insurance agency agent and shall be used only
936 in accordance with the terms of the individual, escrow,
937 settlement, or closing instructions under which the funds were
938 accepted.
939 (5) The title insurance agency agents shall maintain
940 separate records of all receipts and disbursements of escrow,
941 settlement, or closing funds.
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942 (6) In the event that the department promulgates rules
943 necessary to implement the requirements of this section pursuant
944 to s. 624.308, the department shall consider reasonable
945 standards necessary for the protection of funds held in trust,
946 including, but not limited to, standards for accounting of
947 funds, standards for receipt and disbursement of funds, and
948 protection for the person or persons to whom the funds are to be
949 disbursed.
950 (7) A title insurance agency agent, or any officer,
951 director, or employee thereof, or any person associated
952 therewith as an independent contractor for bookkeeping or
953 similar purposes, who converts or misappropriates funds received
954 or held in escrow or in trust by such title insurance agency
955 agent, or any person who knowingly receives or conspires to
956 receive such funds, commits:
957 (a) If the funds converted or misappropriated are $300 or
958 less, a misdemeanor of the first degree, punishable as provided
959 in s. 775.082 or s. 775.083.
960 (b) If the funds converted or misappropriated are more
961 than $300, but less than $20,000, a felony of the third degree,
962 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
963 (c) If the funds converted or misappropriated are $20,000
964 or more, but less than $100,000, a felony of the second degree,
965 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
966 (d) If the funds converted or misappropriated are $100,000
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967 or more, a felony of the first degree, punishable as provided in
968 s. 775.082, s. 775.083, or s. 775.084.
969 (8) An attorney shall deposit and maintain all funds
970 received in connection with transactions in which the attorney
971 is serving as a title or real estate settlement agent into a
972 separate trust account that is maintained exclusively for funds
973 received in connection with such transactions and permit the
974 account to be audited by its title insurers, unless mai ntaining
975 funds in the separate account for a particular client would
976 violate applicable rules of The Florida Bar.
977 Section 26. Subsection (19) of section 626.854, Florida
978 Statutes, is amended to read:
979 626.854 "Public adjuster" defined; prohibitions.—The
980 Legislature finds that it is necessary for the protection of the
981 public to regulate public insurance adjusters and to prevent the
982 unauthorized practice of law.
983 (19) Except as otherwise provided in this chapter, no
984 person, except an attorney at law or a licensed and appointed
985 public adjuster, may for money, commission, or any other thing
986 of value, directly or indirectly:
987 (a) Prepare, complete, or file an insurance claim for an
988 insured or a third-party claimant;
989 (b) Act on behalf of or aid an insured or a third-party
990 claimant in negotiating for or effecting the settlement of a
991 claim for loss or damage covered by an insurance contract;
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992 (c) Offer to initiate or negotiate a claim on behalf of an
993 insured;
994 (d) Advertise services that require a license as a public
995 adjuster; or
996 (e) Solicit, investigate, or adjust a claim on behalf of a
997 public adjuster, an insured, or a third-party claimant.
998 Section 27. Section 626.874, Florida Statutes, is amended
999 to read:
1000 626.874 Catastrophe or emergency adjusters.—
1001 (1) In the event of a catastrophe or emergency, the
1002 department may issue a license, for the purposes and under the
1003 conditions and for the period of emergency as it shall
1004 determine, to persons who are residents or nonresidents of this
1005 state, who are at least 18 years of age, who are United States
1006 citizens or legal aliens who possess work authorization from the
1007 United States Bureau of Citizenship and Immigration Services,
1008 and who are not licensed adjusters under this part but who have
1009 been designated and certified to it as qualified to act as
1010 adjusters by an authorized insurer to adjust claims, losses, or
1011 damages under policies or contracts of insurance issued by such
1012 insurers, or by a licensed the primary adjuster of an
1013 independent adjusting firm contracted with an authorized insurer
1014 to adjust claims on behalf of the insurer. The fee for the
1015 license is as provided in s. 624.501(12)(c).
1016 (2) If any person not a licensed adjuster who has been
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1017 permitted to adjust such losses, claims, or damages under the
1018 conditions and circumstances set forth in subsection (1),
1019 engages in any of the misconduct described in or contemplated by
1020 chapter 626 ss. 626.611 and 626.621, the department, without
1021 notice and hearing, shall be authorized to issue its order
1022 denying such person the privileges granted under this section;
1023 and thereafter it shall be unlawful for any such person to
1024 adjust any such losses, claims, or damages in this state.
1025 Section 28. Subsection (2) of section 626.9892, Florida
1026 Statutes, is amended to read:
1027 626.9892 Anti-Fraud Reward Program; reporting of insurance
1028 fraud.—
1029 (2) The department may pay rewards of up to $25,000 to
1030 persons providing information leading to the arrest and
1031 conviction of persons committing crimes investigated by the
1032 department arising from violations of s. 400.9935, s. 440.105,
1033 s. 624.15, s. 626.112, s. 626.8473, s. 626.8738, s. 626.9541, s.
1034 626.989, s. 790.164, s. 790.165, s. 790.166, s. 806.01, s.
1035 806.031, s. 806.10, s. 806.111, s. 812.014, s. 817.034, s.
1036 817.233, or s. 817.234, s. 817.236, s. 817.2361, s. 817.505, s.
1037 817.568, s. 831.01, s. 895.03, s. 895.04, or s. 896.101 .
1038 Section 29. Present subsections (7) through (12) of
1039 section 626.9957, Florida Statutes, are redesignated as
1040 subsections (8) through (13), respectively, and a new subsection
1041 (7) is added to that section, to read:
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1042 626.9957 Conduct prohibited; denial, revocation,
1043 termination, expiration, or suspension of registration.—
1044 (7) If a navigator registered under this part fails to
1045 maintain an active, valid navigator's registration status with
1046 the Federal Government or an exchange, the navigator's
1047 registration issued under this part shall expire by operation of
1048 law. A navigator with an expired registration may not be granted
1049 subsequent registration until the navigator qualifies as a
1050 first-time applicant.
1051 Section 30. Paragraph (c) of subsection (4) of section
1052 627.351, Florida Statutes, is amended to read:
1053 627.351 Insurance risk apportionment plans.—
1054 (4) MEDICAL MALPRACTICE RISK APPORTIONMENT.—
1055 (c) The Joint Underwriting Association shall operate
1056 subject to the supervision and approval of a board of governors
1057 consisting of representatives of five of the insurers
1058 participating in the Joint Underwriting Association, an attorney
1059 named by The Florida Bar, a physician named by the Florida
1060 Medical Association, a dentist named by the Florida Dental
1061 Association, and a hospital representative named by the Florida
1062 Hospital Association. The Chief Financial Officer shall select
1063 the representatives of the five insurers or other persons with
1064 experience in medical malpractice insurance as determined by the
1065 Chief Financial Officer. One insurer representative shall be
1066 selected from recommendations of the American Insurance
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1067 Association. One insurer representative shall be selected from
1068 recommendations of the Property Casualty Insurers Association of
1069 America. One insurer representative shall be selected from
1070 recommendations of the Florida Insurance Council. Two insurer
1071 representatives shall be selected to represent insurers that are
1072 not affiliated with these associations. Vacancies on the board
1073 shall be filled for the remaining period of the term in the same
1074 manner as the initial appointments. During the first meeting of
1075 the board after June 30 of each year, the board shall choose one
1076 of its members to serve as chair of the board and another member
1077 to serve as vice chair of the board. There is no liability on
1078 the part of, and no cause of action shall arise against, any
1079 member insurer, self-insurer, or its agents or employees, the
1080 Joint Underwriting Association or its agents or employees,
1081 members of the board of governors, or the office or its
1082 representatives for any action taken by them in the performance
1083 of their powers and duties under this subsection.
1084 1. The Chief Financial Officer may remove a board member
1085 from office for misconduct, malfeasance, misfeasance, or neglect
1086 of duty. Any vacancy so created shall be filled as provided in
1087 this paragraph.
1088 2. Board members are subject to the code of ethics under
1089 part III of chapter 112, including, but not limited to, the code
1090 of ethics and public disclosure and reporting of financial
1091 interests, pursuant to s. 112.3145. For purposes of applying
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1092 part III of chapter 112 to activities of members of the board of
1093 governors, those persons are considered public officers and the
1094 Joint Underwriting Association is considered their agency.
1095 Notwithstanding s. 112.3143(2), a board member may not vote on
1096 any measure that he or she knows would inure to his or her
1097 special private gain or loss; that he or she knows would inure
1098 to the special private gain or loss of any principal by which he
1099 or she is retained, other than an agency as defined in s.
1100 112.312; or that he or she knows would inure to the special
1101 private gain or loss of a relative or business associate of t he
1102 public officer. Before the vote is taken, such board member
1103 shall publicly state to the board the nature of his or her
1104 interest in the matter from which he or she is abstaining from
1105 voting and, within 15 days after the vote occurs, disclose the
1106 nature of his or her interest as a public record in a memorandum
1107 filed with the person responsible for recording the minutes of
1108 the meeting, who shall incorporate the memorandum in the
1109 minutes.
1110 3. Notwithstanding s. 112.3148, s. 112.3149, or any other
1111 law, an board member may not knowingly accept, directly or
1112 indirectly, any gift or expenditure from a person or entity, or
1113 an employee or representative of such person or entity, which
1114 has a contractual relationship with the Joint Underwriting
1115 Association or which is under consideration for a contract.
1116 4. A board member who fails to comply with subparagraph 2.
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1117 or subparagraph 3. is subject to the penalties provided under
1118 ss. 112.317 and 112.3173.
1119 Section 31. Subsections (2) and (3) of section 627.7015,
1120 Florida Statutes, are amended to read:
1121 627.7015 Alternative procedure for resolution of disputed
1122 property insurance claims.—
1123 (2) At the time of issuance and renewal of a policy or at
1124 the time a first-party claim within the scope of this section is
1125 filed by the policyholder, the insurer shall notify the
1126 policyholder of its right to participate in the mediation
1127 program under this section. A claim is not eligible for
1128 mediation until an insurer has made a claim determination or
1129 elected to repair pursuant to s. 627.70131. The department shall
1130 prepare a consumer information pamphlet for distribution to
1131 persons participating in mediation.
1132 (3) The costs of mediation must be reasonable, and the
1133 insurer must bear all of the cost of conducting mediation
1134 conferences, except as otherwise provided in this section. If a
1135 policyholder fails to appear at the conference, the conference
1136 must be rescheduled upon the policyholder's payment of the costs
1137 of a rescheduled conference. If the insurer fails to appear at
1138 the conference, the insurer must pay the policyholder's actual
1139 cash expenses incurred in attending the conference if the
1140 insurer's failure to attend was not due to a good cause
1141 acceptable to the department. An insurer will be deemed to have
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1142 failed to appear if the insurer's representative lacks authority
1143 to settle the full value of the claim. The insurer shall incur
1144 an additional fee for a rescheduled conference necessitated by
1145 the insurer's failure to appear at a scheduled conference. The
1146 fees assessed by the department administrator must include a
1147 charge necessary to defray the expenses of the department
1148 related to its duties under this section and must be deposited
1149 in the Insurance Regulatory Trust Fund. The department may
1150 suspend the insurer's authority to appoint licensees if the
1151 insurer does not timely pay the required fees.
1152 Section 38. Subsection (18) is added to section 627.7074,
1153 Florida Statutes, to read:
1154 627.7074 Alternative procedure for resolution of disputed
1155 sinkhole insurance claims.—
1156 (18) The department may designate an entity or person to serve
1157 as administrator to carry out any of the provisions of this
1158 section and may take this action by means of a written contract
1159 or agreement.
1160 Section 32. Section 627.745, Florida Statutes, is amended
1161 to read:
1162 627.745 Mediation of claims.—
1163 (1)(a) In any claim filed with an insurer for personal
1164 injury in an amount of $10,000 or less or any claim for property
1165 damage in any amount, arising out of the ownership, operation,
1166 use, or maintenance of a motor vehicle, either party may demand
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1167 mediation of the claim prior to the institution of litigation.
1168 (b) The costs of mediation must be reasonable, and the
1169 insurer must bear all of the cost of conducting mediation
1170 conferences, except as otherwise provided in this section. If a
1171 policyholder fails to appear at the conference, the conference
1172 must be rescheduled upon the policyholder's payment of the costs
1173 of a rescheduled conference. If the insurer fails to appear at
1174 the conference, the insurer must pay the policyholder's actual
1175 cash expenses incurred in attending the conference if the
1176 insurer's failure to attend was not due to a good cause
1177 acceptable to the department. An insurer is deemed to have
1178 failed to appear if the insurer's representative lacks authority
1179 to settle the full value of the claim. The insurer shall incur
1180 an additional fee, paid to the mediator, for a rescheduled
1181 conference necessitated by the insurer's failure to appear at a
1182 scheduled conference. The fees assessed by the department or
1183 administrator must include a charge necessary to defray the
1184 expenses of the department related to its duties under this
1185 section and must be deposited in the Insurance Regulatory Trust
1186 Fund. The department or administrator may request that the
1187 department suspend the insurer's authority to appoint licensees
1188 if the insurer does not timely pay the per-mediation-event
1189 administrative fee.
1190 (b) A request for mediation shall be filed with the
1191 department on a form approved by the department. The request for
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1192 mediation shall state the reason for the request for mediation
1193 and the issues in dispute which are to be mediated. The filing
1194 of a request for mediation tolls the applicable time
1195 requirements for filing suit for a period of 60 days following
1196 the conclusion of the mediation process or the time prescribed
1197 in s. 95.11, whichever is later.
1198 (c) The insurance policy must specify in detail the terms
1199 and conditions for mediation of a first-party claim.
1200 (d) The mediation shall be conducted as an informal
1201 process in which formal rules of evidence and procedure need not
1202 be observed. Any party participating in a mediation must have
1203 the authority to make a binding decision. All parties must
1204 mediate in good faith.
1205 (e) The department shall randomly select mediators. Each
1206 party may once reject the mediator selected, either originally
1207 or after the opposing side has exercised its option to reject a
1208 mediator.
1209 (f) Costs of mediation shall be borne equally by both
1210 parties unless the mediator determines that one party has not
1211 mediated in good faith.
1212 (g) Only one mediation may be requested for each claim,
1213 unless all parties agree to further mediation.
1214 (2) Upon receipt of a request for mediation, the
1215 department shall refer the request to a mediator. The mediator
1216 shall notify the applicant and all interested parties, as
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1217 identified by the applicant, and any other parties the mediator
1218 believes may have an interest in the mediation, of the date,
1219 time, and place of the mediation conference. The conference may
1220 be held by telephone, if feasible. The mediation conference
1221 shall be held within 45 days after the request for mediation.
1222 (2)(a)(3)(a) The department shall approve mediators to
1223 conduct mediations pursuant to this section. All mediators must
1224 file an application under oath for approval as a mediator.
1225 (b) To qualify for approval as a mediator, an individual
1226 must meet one of the following qualifications:
1227 1. Possess an active certification as a Florida Supreme
1228 Court certified circuit court mediator. A Florida Supreme Court
1229 certified circuit court mediator in a lapsed, suspended,
1230 sanctioned, or decertified status is not eligible to participate
1231 in the mediation program.
1232 2. Be an approved department mediator as of July 1, 2014,
1233 and have conducted at least one mediation on behalf of the
1234 department within 4 years immediately preceding that date.
1235 (3)(4) The department shall deny an application, or
1236 suspend or revoke its approval, of a mediator to serve in such
1237 capacity if the department finds that one or more of the
1238 following grounds exist:
1239 (a) Lack of one or more of the qualifications specified in
1240 this section for approval.
1241 (b) Material misstatement, misrepresentation, or fraud in
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1242 obtaining or attempting to obtain the approval.
1243 (c) Demonstrated lack of fitness or trustworthiness to act
1244 as a mediator.
1245 (d) Fraudulent or dishonest practices in the conduct of
1246 mediation or in the conduct of business in the financial
1247 services industry.
1248 (e) Violation of any provision of this code or of a lawful
1249 order or rule of the department, violation of the Florida Rules
1250 for Certified and Court-Appointed Mediators, or aiding,
1251 instructing, or encouraging another party in committing such a
1252 violation.
1253
1254 The department may adopt rules to administer this subsection.
1255 (4) The department shall adopt by rule a motor vehicle
1256 claims insurance mediation program to be administered by the
1257 department or its designee. The department may also adopt
1258 special rules that are applicable in cases of an emergency
1259 within the state. The rules shall be modeled after practices and
1260 procedures set forth in mediation rules of procedure adopted by
1261 the Supreme Court. The rules must include:
1262 (a) Reasonable requirements for processing and scheduling
1263 of requests for mediation.
1264 (b) Provisions governing who may attend mediation
1265 conferences.
1266 (c) Selection of mediators.
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1267 (d) Criteria for the conduct of mediation conferences.
1268 (e) Right to legal counsel.
1269 (5) The department must adopt rules of procedure for
1270 claims mediation, taking into consideration a system which:
1271 (a) Is fair.
1272 (b) Promotes settlement.
1273 (c) Avoids delay.
1274 (d) Is nonadversarial.
1275 (e) Uses a framework for modern mediating technique.
1276 (f) Controls of costs and expenses of mediation.
1277 (5) The department may designate an entity or person to
1278 serve as an administrator to carry out any of the provisions of
1279 this section and may take this action by means of a written
1280 contract or agreement.
1281 (6) Disclosures and information divulged in the mediation
1282 process are not admissible in any subsequent action or
1283 proceeding relating to the claim or to the cause of action
1284 giving rise to the claim. A person demanding mediation under
1285 this section may not demand or request mediation after a suit is
1286 filed relating to the same facts already mediated.
1287 Section 33. Present subsections (7) through (12) of
1288 section 631.141, Florida Statutes, are redesignated as
1289 subsections (8) through (13), respectively, and a new subsection
1290 (7) is added to that section, to read:
1291 631.141 Conduct of delinquency proceeding; domestic and
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1292 alien insurers.—
1293 (7) In order to preserve as much as possible the right and
1294 interest of the policyholders whose insurance policies or
1295 similar contracts are affected by the receivership proceedings,
1296 the department as a domiciliary receiver may:
1297 (a) Use the property of the estate of the insurer to
1298 transfer the insurer's book of business, policies, or similar
1299 contracts of coverage, in whole or in part, to a solvent
1300 assuming insurer or insurers.
1301 (b) Notwithstanding s. 631.195, share records of the
1302 insurer with the prospective solvent assuming insurer or
1303 insurers, but only to the extent necessary to undertake due
1304 diligence for a transfer contemplated under this section.
1305 Section 34. Subsections (1) and (3) of section 631.252,
1306 Florida Statutes, are amended to read:
1307 631.252 Continuation of coverage.—
1308 (1) Unless another insurer, with approval of the
1309 receivership court, assumes or otherwise provides coverage for
1310 the policies of the insolvent insurer, all insurance policies or
1311 similar contracts of coverage, other than coverages defined in
1312 s. 631.713 or health maintenance organization coverage under
1313 part IV, issued by the insurer shall be canceled upon the
1314 earlier earliest to occur of the following:
1315 (a) The date of entry of the liquidation or, if the court
1316 so provides in its order, the expiration of 30 days from the
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1317 date of entry of the liquidation order;
1318 (b) The normal expiration of the policy or contract
1319 coverage;
1320 (c) The replacement of the coverage by the insured, or the
1321 replacement of the policy or contract of coverage, with a policy
1322 or contract acceptable to the insured by the receiver with
1323 another insurer; or
1324 (d) The date proposed by the receiver and approved by the
1325 receivership court to cancel coverage; or
1326 (e)(d) The termination of the coverage by the insured.
1327 (3) The 30-day coverage continuation period provided in
1328 paragraph (1)(a) and s. 631.57(1)(a)1. may not be extended
1329 unless the Chief Financial Officer office determines, based on a
1330 reasonable belief, that market conditions are such that policies
1331 of residential property insurance coverage cannot be placed with
1332 an authorized insurer within 30 days and that an additional 15
1333 days is needed to place such coverage.; and Failure of actual
1334 notice to the policyholder of the insolvency of the insurer, of
1335 commencement of a delinquency proceeding, or of expiration of
1336 the extension period does not affect such expiration.
1337 Section 35. Subsection (1) of section 631.56, Florida
1338 Statutes, is amended, and subsections (5) through (8) are added
1339 to that section, to read:
1340 631.56 Board of directors.—
1341 (1) The board of directors of the association shall
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1342 consist of not less than five or more than nine persons serving
1343 terms as established in the plan of operation. Three members of
1344 the board must be representatives from domestic insurers,
1345 appointed by the Chief Financial Officer. The department shall
1346 approve and appoint to the board persons recommended by the
1347 member insurers or other persons with experience in property and
1348 casualty insurance or motor vehicle insurance as determined by
1349 the Chief Financial Officer. In the event the department finds
1350 that any recommended person does not meet the qualifications for
1351 service on the board, the department shall request the member
1352 insurers to recommend another person. Each member shall serve
1353 for a 4-year term and may be reappointed. Vacancies on the board
1354 shall be filled for the remaining period of the term in the same
1355 manner as initial appointments.
1356 (5) The Chief Financial Officer may remove a board member
1357 from office for misconduct, malfeasance, misfeasance, or neglect
1358 of duty. Any vacancy so created shall be filled as provided in
1359 subsection (1).
1360 (6) Board members are subject to the code of ethics under
1361 part III of chapter 112, including, but not limited to, the code
1362 of ethics and public disclosure and reporting of financial
1363 interests, pursuant to s. 112.3145. For purposes of applying
1364 part III of chapter 112 to activities of members of the board of
1365 directors, those persons are considered public officers and the
1366 association is considered their agency. Notwithstanding s.
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1367 112.3143(2), a board member may not vote on any measure that he
1368 or she knows would inure to his or her special private gain or
1369 loss; that he or she knows would inure to the special private
1370 gain or loss of any principal by which he or she is retained,
1371 other than an agency as defined in s. 112.312; or that he or she
1372 knows would inure to the special private gain or loss of a
1373 relative or business associate of the public officer. Before the
1374 vote is taken, such member shall publicly state to the board the
1375 nature of his or her interest in the matter from which he or she
1376 is abstaining from voting and, within 15 days after the vote
1377 occurs, disclose the nature of his or her interest as a public
1378 record in a memorandum filed with the person responsible for
1379 recording the minutes of the meeting, who shall incorporate the
1380 memorandum in the minutes.
1381 (7) Notwithstanding s. 112.3148, s. 112.3149, or any other
1382 law, a board member may not knowingly accept, directly or
1383 indirectly, any gift or expenditure from a person or entity, or
1384 an employee or representative of such person or entity, which
1385 has a contractual relationship with the association or which is
1386 under consideration for a contract.
1387 (8) A board member who fails to comply with subsection (6)
1388 or subsection (7) is subject to the penalties provided under ss.
1389 112.317 and 112.3173.
1390 Section 36. Paragraph (a) of subsection (1) of section
1391 631.716, Florida Statutes, is amended, and subsections (4)
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1392 through (7) are added to that section, to read:
1393 631.716 Board of directors.—
1394 (1)(a) The board of directors of the association shall
1395 have at least 9, but no more than 11, members. The members shall
1396 consist be comprised of member insurers serving terms as
1397 established in the plan of operation and 1 Florida Health
1398 Maintenance Organization Consumer Assistance Plan director
1399 confirmed pursuant to paragraph (b), or other persons with
1400 experience in life and annuity or accident and health insurance
1401 as determined by the Chief Financial Officer. At all times, at
1402 least 1 member of the board member must be a domestic insurer as
1403 defined in s. 624.06(1). The members of the board members who
1404 are member insurers shall be elected by member insurers, subject
1405 to the approval of the department. Each board member shall serve
1406 for a 4-year term and may be reappointed.
1407 (4) The Chief Financial Officer may remove a board member
1408 from office for misconduct, malfeasance, misfeasance, or neglect
1409 of duty. Any vacancy so created shall be filled as provided in
1410 subsection (1).
1411 (5) Board members are subject to the code of ethics under
1412 part III of chapter 112, including, but not limited to, the c ode
1413 of ethics and public disclosure and reporting of financial
1414 interests, pursuant to s. 112.3145. For purposes of applying
1415 part III of chapter 112 to activities of members of the board of
1416 directors, those persons are considered public officers and the
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1417 association is considered their agency. Notwithstanding s.
1418 112.3143(2), a board member may not vote on any measure that he
1419 or she knows would inure to his or her special private gain or
1420 loss; that he or she knows would inure to the special private
1421 gain or loss of any principal by which he or she is retained,
1422 other than an agency as defined in s. 112.312; or that he or she
1423 knows would inure to the special private gain or loss of a
1424 relative or business associate of the public officer. Before the
1425 vote is taken, such member shall publicly state to the board the
1426 nature of his or her interest in the matter from which he or she
1427 is abstaining from voting and, within 15 days after the vote
1428 occurs, disclose the nature of his or her interest as a public
1429 record in a memorandum filed with the person responsible for
1430 recording the minutes of the meeting, who shall incorporate the
1431 memorandum in the minutes.
1432 (6) Notwithstanding s. 112.3148, s. 112.3149, or any other
1433 law, a board member may not knowingly accept, directly or
1434 indirectly, any gift or expenditure from a person or entity, or
1435 an employee or representative of such person or entity, which
1436 has a contractual relationship with the association or which is
1437 under consideration for a contract.
1438 (7) A board member who fails to comply with subsection (5)
1439 or subsection (6) is subject to the penalties provided under ss.
1440 112.317 and 112.3173.
1441 Section 37. Subsection (1) of section 631.816, Florida
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1442 Statutes, is amended, and subsections (8) through (11) are added
1443 to that section, to read:
1444 631.816 Board of directors.—
1445 (1) The board of directors of the plan shall consist of
1446 not less than five or more than nine persons serving terms as
1447 established in the plan of operation. The department shall
1448 approve and appoint to the board persons recommended by the
1449 member HMOs or other persons with experience in health insurance
1450 as determined by the Chief Financial Officer. In the event the
1451 department finds that any recommended person does not meet the
1452 qualifications for service on the board, the department shall
1453 request the member HMOs to recommend another person. Each member
1454 shall serve for a 4-year term and may be reappointed, except
1455 that terms may be staggered as defined in the plan of operation.
1456 Vacancies on the board shall be filled for the remaining period
1457 of the term in the same manner as initial appointments. In
1458 determining voting rights, each HMO is entitled to vote on the
1459 basis of cumulative weighted voting based on the net written
1460 premium for non-Medicare and non-Medicaid policies.
1461 (8) The Chief Financial Officer may remove a board member
1462 from office for misconduct, malfeasance, misfeasance, or neglect
1463 of duty. Any vacancy so created shall be filled as provided in
1464 subsection (1).
1465 (9) Board members are subject to the code of ethics un der
1466 part III of chapter 112, including, but not limited to, the code
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1467 of ethics and public disclosure and reporting of financial
1468 interests, pursuant to s. 112.3145. For purposes of applying
1469 part III of chapter 112 to activities of members of the board of
1470 directors, those persons are considered public officers and the
1471 plan is considered their agency. Notwithstanding s. 112.3143(2),
1472 a board member may not vote on any measure that he or she knows
1473 would inure to his or her special private gain or loss; that he
1474 or she knows would inure to the special private gain or loss of
1475 any principal by which he or she is retained, other than an
1476 agency as defined in s. 112.312; or that he or she knows would
1477 inure to the special private gain or loss of a relative or
1478 business associate of the public officer. Before the vote is
1479 taken, such member shall publicly state to the board the nature
1480 of his or her interest in the matter from which he or she is
1481 abstaining from voting and, within 15 days after the vote
1482 occurs, disclose the nature of his or her interest as a public
1483 record in a memorandum filed with the person responsible for
1484 recording the minutes of the meeting, who shall incorporate the
1485 memorandum in the minutes.
1486 (10) Notwithstanding s. 112.3148, s. 112.3149, or any
1487 other law, a board member may not knowingly accept, directly or
1488 indirectly, any gift or expenditure from a person or entity, or
1489 an employee or representative of such person or entity, which
1490 has a contractual relationship with the plan or which is under
1491 consideration for a contract.
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1492 (11) A board member who fails to comply with subsection
1493 (9) or subsection (10) is subject to the penalties provided
1494 under ss. 112.317 and 112.3173.
1495 Section 38. Subsection (1) of section 631.912, Florida
1496 Statutes, is amended, and subsections (4), (5), and (6) are
1497 added to that section, to read:
1498 631.912 Board of directors.—
1499 (1) The board of directors of the corporation shall
1500 consist of 11 persons, 1 of whom is the insurance consumer
1501 advocate appointed under s. 627.0613 or designee and 1 of whom
1502 is designated by the Chief Financial Officer. The department
1503 shall appoint to the board 6 persons selected by private
1504 carriers from among the 20 workers' compensation insurers with
1505 the largest amount of direct written premium as determined by
1506 the department, and 2 persons selected by the self-insurance
1507 funds or other persons with experience in workers' compensation
1508 insurance as determined by the Chief Financial Officer. The
1509 Governor shall appoint one person who has commercial insurance
1510 experience. At least two of the private carriers shall be
1511 foreign carriers authorized to do business in this state. The
1512 board shall elect a chairperson from among its members. The
1513 Chief Financial Officer may remove any board member for cause.
1514 Each board member shall be appointed to serve a 4-year term and
1515 may be reappointed. A vacancy on the board shall be filled for
1516 the remaining period of the term in the same manner by which the
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1517 original appointment was made.
1518 (4) Board members are subject to the code of ethics under
1519 part III of chapter 112, including, but not limited to, the code
1520 of ethics and public disclosure and reporting of financial
1521 interests, pursuant to s. 112.3145. For purposes of applying
1522 part III of chapter 112 to activities of members of the board of
1523 directors, those persons are considered public officers and the
1524 corporation is considered their agency. Notwithstanding s.
1525 112.3143(2), a board member may not vote on any measure that he
1526 or she knows would inure to his or her special private gain or
1527 loss; that he or she knows would inure to the special private
1528 gain or loss of any principal by which he or she is retained,
1529 other than an agency as defined in s. 112.312; or that he or she
1530 knows would inure to the special private gain or loss of a
1531 relative or business associate of the public officer. Before the
1532 vote is taken, such member shall publicly state to the board the
1533 nature of his or her interest in the matter from which he or she
1534 is abstaining from voting and, within 15 days after the vote
1535 occurs, disclose the nature of his or her interest as a public
1536 record in a memorandum filed with the person responsible for
1537 recording the minutes of the meeting, who shall incorporate the
1538 memorandum in the minutes.
1539 (5) Notwithstanding s. 112.3148, s. 112.3149, or any other
1540 law, a board member may not knowingly accept, directly or
1541 indirectly, any gift or expenditure from a person or entity, or
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1542 an employee or representative of such person or entity, which
1543 has a contractual relationship with the corporation or which is
1544 under consideration for a contract.
1545 (6) A board member who fails to comply with subsection (4)
1546 or subsection (5) is subject to the penalties provided under ss.
1547 112.317 and 112.3173.
1548 Section 39. Section 633.1423, Florida Statutes, is created
1549 to read:
1550 633.1423 State Fire Marshal direct-support organization.—
1551 (1) DEFINITION.—As used in this section, the term
1552 "organization" means the direct-support organization established
1553 under this section.
1554 (2) ORGANIZATION ESTABLISHED.—The division may establish a
1555 direct-support organization, to be known as the "State Fire
1556 Marshal Safety and Training Force," whose sole purpose is to
1557 support the safety and training of firefighters and to recognize
1558 exemplary service. The organization must:
1559 (a) Be a not-for-profit corporation incorporated under
1560 chapter 617 and approved by the Department of State.
1561 (b) Be organized and operated to raise funds; request and
1562 receive grants, gifts, and bequests of money; conduct programs
1563 and activities; acquire, receive, hold, invest, and administer,
1564 in its own name, securities, funds, or property; and make grants
1565 and expenditures to or for the direct or indirect benefit of the
1566 division. Grants and expenditures may include the cost of
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1567 education or training of firefighters, or the recogni tion of
1568 exemplary service of firefighters.
1569 (c) Be determined by the division to operate in a manner
1570 that is:
1571 1. Consistent with the goals of the division and laws
1572 relating to the safety and training of firefighters.
1573 2. In the best interest of the state.
1574 3. In accordance with the adopted goals and mission of the
1575 division.
1576 (d) Use all of its grants and expenditures solely for the
1577 purpose of educating, training, and recognizing firefighters,
1578 and not for advertising using the likeness or name of any
1579 elected official nor for the purpose of lobbying as defined in
1580 s. 11.045(1).
1581 (e) Be subject to an annual financial audit in accordance
1582 with s. 215.981.
1583 (3) CONTRACT.—The organization shall operate under written
1584 contract with the division. The contract must provide for:
1585 (a) Certification by the division that the organization is
1586 complying with the terms of the contract and in a manner
1587 consistent with the goals and purposes of the department and in
1588 the best interest of the state. Such certification must be made
1589 annually and reported in the official minutes of a meeting of
1590 the organization.
1591 (b) The reversion of moneys and property held by the
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1592 organization for firefighter safety, training, and recognition
1593 to the division if the organization is no longer ap proved to
1594 operate by the division or if the organization ceases to exist,
1595 or to the state if the division ceases to exist.
1596 (4) BOARD OF DIRECTORS.—The organization shall be governed
1597 by a board of directors. The State Fire Marshal, or his or her
1598 designee, shall appoint a president of the board. The board of
1599 directors shall be appointed by the president of the board.
1600 (5) USE OF PROPERTY.—The division may authorize, without
1601 charge, appropriate use of fixed property and facilities of the
1602 division by the organization, subject to this subsection.
1603 (a) The department may prescribe any condition with which
1604 the organization must comply in order to use the division's
1605 property or facilities.
1606 (b) The department may not authorize the use of the
1607 division's property or facilities if the organization does not
1608 provide equal membership and employment opportunities to all
1609 persons regardless of race, religion, sex, age, or national
1610 origin.
1611 (c) The department shall adopt rules prescribing the
1612 procedures by which the organization is governed and any
1613 conditions with which the organization must comply to use the
1614 division's property or facilities.
1615 (6) DEPOSITORY ACCOUNT.—Any moneys received by the
1616 organization may be held in a separate depository account in the
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1617 name of the organization and subject to the contract with the
1618 division.
1619 (7) ANNUAL BUDGETS AND REPORTS.—The organization shall
1620 submit to the division its annual budget and financial reports,
1621 its federal Internal Revenue Service Application for Recognition
1622 of Exemption Form 1023, and its federal Internal Revenue Service
1623 Return of Organization Exempt from Income Tax Form 990.
1624 (8) ANNUAL AUDIT.—The organization shall provide for an
1625 annual financial audit in accordance with s. 215.981.
1626 (9) DIVISION'S RECEIPT OF PROCEEDS.—Proceeds received by
1627 the division from the organization shall be deposited into the
1628 Insurance Regulatory Trust Fund.
1629 (10) This section is repealed October 1, 2028, unless
1630 reviewed and saved from repeal by the Legislature.
1631 Section 40. Section 634.181, Florida Statutes, is amended
1632 to read:
1633 634.181 Grounds for compulsory refusal, suspension, or
1634 revocation of license or appointment of salespersons. —
1635 (1) The department shall deny, suspend, revoke, or refuse
1636 to renew or continue the license or appointment of any such
1637 salesperson if it finds that as to the salesperson any one or
1638 more of the following applicable grounds exist:
1639 (a)(1) Material misstatement, misrepresentation, or fraud
1640 in obtaining or attempting to obtain the license or appointment.
1641 (b)(2) If the license or appointment is willfully used, or
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1642 to be used, to circumvent any of the requirements or
1643 prohibitions of this part, any applicable provision of the
1644 Florida Insurance Code, or rule of the department or commission.
1645 (c)(3) Willful misrepresentation of any service agreement
1646 or willful deception with regard to any agreement, done either
1647 in person or by any form of dissemination of information or
1648 advertising.
1649 (d)(4) If in the adjustment of claims arising out of
1650 service agreements, she or he has materially misrepresented to a
1651 service agreement holder or other interested party the terms and
1652 coverage of a service agreement with intent and for the purpose
1653 of effecting settlement of the claim on less favorable terms
1654 than those provided in and contemplated by the service
1655 agreement.
1656 (e)(5) For demonstrated lack of fitness or trustworthiness
1657 to engage in the service agreement business.
1658 (f)(6) For demonstrated lack of adequate knowledge and
1659 technical competence to engage in the transactions authorized by
1660 the license or appointment.
1661 (g)(7) Fraudulent or dishonest practices in the conduct of
1662 business under the license or appointment.
1663 (h)(8) Misappropriation, conversion, or unlawful
1664 withholding of moneys belonging to a service agreement company,
1665 insurer, or service agreement holder or to others and received
1666 in the conduct of business under the license or appointment.
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1667 (i)(9) For unlawfully rebating, or attempt thereat, or for
1668 unlawfully dividing or offering to divide her or his commission
1669 with another.
1670 (j)(10) Willful failure to comply with, or willful
1671 violation of any proper order of the department or office, or
1672 willful violation of any provision of this part, or of any
1673 applicable provision of the insurance code, or applicable rule
1674 of the department or commission.
1675 (k)(11) Having been found guilty of, or having pleaded
1676 guilty or nolo contendere to, a felony or a crime punishable by
1677 imprisonment of 1 year or more under the law of the United
1678 States of America or any state thereof or under the law of any
1679 other country which involves moral turpitude, without regard to
1680 whether a judgment of conviction has been entered by the court
1681 having jurisdiction of the cases.
1682 (l)(12) Failure to refund unearned pro rata commission to
1683 the agreement holder or the service agreement company, if the
1684 service agreement company is making a full unearned pro rata
1685 refund to the agreement holder.
1686 (m) Having been the subject of, or having had a license,
1687 permit, appointment, registration, or other authority to conduct
1688 business subject to, any decision, finding, injunction,
1689 suspension, prohibition, revocation, denial, judgment, final
1690 agency action, or administrative order by any court of competent
1691 jurisdiction, administrative law proceeding, state agency,
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1692 federal agency, national securities, commodities, or options
1693 exchange, or national securities, commodities, or options
1694 association involving a violation of any federal or state
1695 securities or commodities law or any rule or regulation adopted
1696 thereunder, or a violation of any rule or regulation of any
1697 national securities, commodities, or options exchange or
1698 national securities, commodities, or options association.
1699 (2) When a licensee is charged with a felony enumerated in
1700 s. 626.207(2), the department shall, immediately upon receipt of
1701 information on or indictment for the felony, temporarily suspend
1702 a license or appointment issued under this chapter. Such
1703 suspension shall continue if the licensee is found guilty of, or
1704 pleads guilty or nolo contendere to, the crime, regardless of
1705 whether a judgment or conviction is entered, during a pending
1706 appeal. A person may not transact insurance business after
1707 suspension of his or her license or appointment.
1708 (3) The department may adopt rules to administer this
1709 section.
1710 Section 41. Section 634.191, Florida Statutes, is amended
1711 to read:
1712 634.191 Grounds for discretionary refusal, suspension, or
1713 revocation of license or appointment of salespersons.—
1714 (1) The department may, in its discretion, deny, suspend,
1715 revoke, or refuse to renew or continue the license or
1716 appointment of any salesperson if it finds that as to the
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1717 salesperson any one or more of the following applicable grounds
1718 exist under circumstances for which such denial, suspension,
1719 revocation, or refusal is not mandatory under s. 634.181:
1720 (a)(1) For any cause for which granting of the license or
1721 appointment could have been refused had it then existed and been
1722 known to the department.
1723 (b)(2) Violation of any provision of this part or of any
1724 other law applicable to the business of service agreements in
1725 the course of dealings under the license or appointment.
1726 (c)(3) Violation of Has violated any lawful order or rule
1727 of the department or commission.
1728 (d)(4) Failure or refusal, upon demand, to pay over to any
1729 company or insurer the salesperson represents or has represented
1730 any money coming into her or his hands belonging to the company
1731 or insurer.
1732 (e)(5) If, in the conduct of business under the license or
1733 appointment, the salesperson has engaged in unfair methods of
1734 competition or in unfair or deceptive acts or practices, as such
1735 methods, acts, or practices are or may be defined under this
1736 part, or has otherwise shown herself or himself to be a source
1737 of injury or loss to the public or detrimental to the public
1738 interest.
1739 (f)(6) Failure to report to the department within 30 days
1740 the final disposition of an administrative action taken against
1741 a salesperson by a governmental agency or other regulatory
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1742 agency in this state or any other state or jurisdiction relating
1743 to the business of insurance, the sale of securities, or an
1744 activity involving fraud, dishonesty, trustworthiness, or breach
1745 of a fiduciary duty. The salesperson must submit a copy of the
1746 order, consent to order, or other relevant legal documents to
1747 the department Having been found guilty of, or having pleaded
1748 guilty or nolo contendere to, a felony or a crime punishable by
1749 imprisonment of 1 year or more under the law of the United
1750 States of America or any state thereof or under the law of any
1751 other country, without regard to whether a judgment of
1752 conviction has been entered by the court having jurisdiction of
1753 the cases.
1754 (2) The department may adopt rules to administer this
1755 section.
1756 Section 42. Section 634.320, Florida Statutes, is amended
1757 to read:
1758 634.320 Grounds for compulsory refusal, suspension, or
1759 revocation of license or appointment of sales representatives.—
1760 (1) The department shall deny, suspend, revoke, or refuse
1761 to renew or continue the license or appointment of any sales
1762 representative if it is found that any one or more of the
1763 following grounds applicable to the sales representative exist:
1764 (a)(1) Material misstatement, misrepresentation, or fraud
1765 in obtaining or attempting to obtain a license or appointment.
1766 (b)(2) The license or appointment is willfully used, or to
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1767 be used, to circumvent any of the requirements or prohibitions
1768 of this part.
1769 (c)(3) Willful misrepresentation of any warranty contract
1770 or willful deception with regard to any such contract, done
1771 either in person or by any form of dissemination of information
1772 or advertising.
1773 (d)(4) In the adjustment of claims arising out of
1774 warranties, material misrepresentation to a warranty holder or
1775 other interested party of the terms and coverage of a contract,
1776 with the intent and for the purpose of effecting settlement of
1777 such claim on less favorable terms than those provided in and
1778 contemplated by the contract.
1779 (e)(5) Demonstrated lack of fitness or trustworthiness to
1780 engage in the business of home warranty.
1781 (f)(6) Demonstrated lack of adequate knowledge and
1782 technical competence to engage in the transactions authorized by
1783 the license or appointment.
1784 (g)(7) Fraudulent or dishonest practices in the conduct of
1785 business under the license or appointment.
1786 (h)(8) Misappropriation, conversion, or unlawful
1787 withholding of moneys belonging to an association, insurer, or
1788 warranty holder, or to others, and received in the conduct of
1789 business under the license or appointment.
1790 (i)(9) Unlawfully rebating, or attempting to unlawfully
1791 rebate, or unlawfully dividing, or offering to divide, her or
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1792 his commission with another.
1793 (j)(10) Willful failure to comply with, or willful
1794 violation of, any proper order or rule of the department or
1795 commission or willful violation of any provision of this part.
1796 (k)(11) Being found guilty of or pleading guilty or nolo
1797 contendere to a felony or a crime punishable by imprisonment of
1798 1 year or more under the law of the United States of America or
1799 any state thereof or under the law of any other country
1800 involving moral turpitude, without regard to whether judgment of
1801 conviction has been entered by the court.
1802 (l) Having been the subject of, or having had a license,
1803 permit, appointment, registration, or other authority to conduct
1804 business subject to, any decision, finding, injunction,
1805 suspension, prohibition, revocation, denial, judgment, final
1806 agency action, or administrative order by any court of competent
1807 jurisdiction, administrative law proceeding, state agency,
1808 federal agency, national securities, commodities, or options
1809 exchange, or national securities, commodities, or options
1810 association involving a violation of any federal or state
1811 securities or commodities law or any rule or regulation adopted
1812 thereunder, or a violation of any rule or regulation of any
1813 national securities, commodities, or options exchange or
1814 national securities, commodities, or options association.
1815 (2) When a licensee is charged with a felony enumerated in
1816 s. 626.207(2), the department shall, immediately upon receipt of
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1817 information on or indictment for the felony, temporarily suspend
1818 a license or appointment issued under this chapter. Such
1819 suspension shall continue if the licensee is found guilty of, or
1820 pleads guilty or nolo contendere to, the crime, regardless of
1821 whether a judgment or conviction is entered, during a pending
1822 appeal. A person may not transact insurance business after
1823 suspension of his or her license or appointment.
1824 (3) The department may adopt rules to administer this
1825 section.
1826 Section 43. Section 634.321, Florida Statutes, is amended
1827 to read:
1828 634.321 Grounds for discretionary refusal, suspension, or
1829 revocation of license or appointment of sales representatives.—
1830 (1) The department may, in its discretion, deny, suspend,
1831 revoke, or refuse to renew or continue the license or
1832 appointment of any sales representative if it is found that any
1833 one or more of the following grounds applicable to the sales
1834 representative exist under circumstances for which such denial,
1835 suspension, revocation, or refusal is not mandatory under s.
1836 634.320:
1837 (a)(1) Any cause for which granting of the license or
1838 appointment could have been refused had it then existed and been
1839 known to the department.
1840 (b)(2) Violation of any provision of this part, or of any
1841 other law applicable to the business of warranties, in the
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1842 course of dealings under the license or appointment.
1843 (c)(3) Violation of any lawful order or rule of the
1844 department or commission.
1845 (d)(4) Failure or refusal to pay over, upon demand, to any
1846 home warranty association or insurer the sales representative
1847 represents or has represented any money coming into her or his
1848 hands which belongs to the association or insurer.
1849 (e)(5) In the conduct of business under the license or
1850 appointment, engaging in unfair methods of competition or in
1851 unfair or deceptive acts or practices, as such methods, acts, or
1852 practices are or may be defined under this part, or otherwise
1853 showing herself or himself to be a source of injury or loss to
1854 the public or detriment to the public interest.
1855 (f)(6) Failure to report to the department within 30 days
1856 the final disposition of an administrative action taken against
1857 a sales representative by a governmental agency or other
1858 regulatory agency in this state or any other state or
1859 jurisdiction relating to the business of insurance, the sale of
1860 securities, or an activity involving fraud, dishonesty,
1861 trustworthiness, or breach of a fiduciary duty. The sales
1862 representative must submit a copy of the order, consent to
1863 order, or other relevant legal documents to the dep artment Being
1864 found guilty of or pleading guilty or nolo contendere to a
1865 felony or a crime punishable by imprisonment of 1 year or more
1866 under the law of the United States of America or any state
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1867 thereof or under the law of any other country, without regard to
1868 whether a judgment of conviction has been entered by the court.
1869 (2) The department may adopt rules to administer this
1870 section.
1871 Section 44. Section 634.419, Florida Statutes, is amended
1872 to read:
1873 634.419 License and appointment required.—No person or
1874 entity shall solicit, negotiate, advertise, or effectuate
1875 service warranty contracts in this state unless such person or
1876 entity is licensed and appointed as a sales representative.
1877 Sales representatives shall be responsible for the actions of
1878 persons under their supervision. However, a service warranty
1879 association licensed as such under this part shall not be
1880 required to be licensed and appointed as a sales representative
1881 to solicit, negotiate, advertise, or effectuate its products.
1882 Sections 501.021-501.055 do not apply to persons or entities
1883 licensed and appointed under this section, or their affiliates,
1884 that solicit the sale of a service warranty or related service
1885 or product in connection with a prearranged appointment at the
1886 request of the consumer.
1887 Section 45. Section 634.422, Florida Statutes, is amended
1888 to read:
1889 634.422 Grounds for compulsory refusal, suspension, or
1890 revocation of license or appointment of sales representatives.—
1891 (1) The department shall deny, suspend, revoke, or refuse
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1892 to renew or continue the license or appointment of any sales
1893 representative if it is found that any one or more of the
1894 following grounds applicable to the sales representative exist:
1895 (a)(1) Material misstatement, misrepresentation, or fraud
1896 in obtaining or attempting to obtain a license or appointment.
1897 (b)(2) The license or appointment is willfully used, or to
1898 be used, to circumvent any of the requirements or prohibitions
1899 of this part.
1900 (c)(3) Willful misrepresentation of any service warranty
1901 contract or willful deception with regard to any such contract,
1902 done either in person or by any form of dissemination of
1903 information or advertising.
1904 (d)(4) In the adjustment of claims arising out of
1905 warranties, material misrepresentation to a service warranty
1906 holder or other interested party of the terms and coverage of a
1907 contract with the intent and for the purpose of effecting
1908 settlement of the claim on less favorable terms than those
1909 provided in and contemplated by the contract.
1910 (e)(5) Demonstrated lack of fitness or trustworthiness to
1911 engage in the business of service warranty.
1912 (f)(6) Demonstrated lack of adequate knowledge and
1913 technical competence to engage in the transactions authorized by
1914 the license or appointment.
1915 (g)(7) Fraudulent or dishonest practices in the conduct of
1916 business under the license or appointment.
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1917 (h)(8) Misappropriation, conversion, or unlawful
1918 withholding of moneys belonging to an association, insurer, or
1919 warranty holder, or to others, and received in the conduct of
1920 business under the license or appointment.
1921 (i)(9) Unlawfully rebating, or attempting to unlawfully
1922 rebate, or unlawfully dividing, or offering to divide, her or
1923 his commission with another.
1924 (j)(10) Willful failure to comply with, or willful
1925 violation of, any proper order or rule of the department or
1926 commission, or willful violation of any provision of this part.
1927 (k)(11) Being found guilty of or pleading nolo contendere
1928 to a felony or a crime punishable by imprisonment of 1 year or
1929 more under the law of the United States of America or any state
1930 thereof or under the law of any other country involving moral
1931 turpitude, without regard to whether judgment of conviction has
1932 been entered by the court having jurisdiction of the case.
1933 (l) Having been the subject of, or having had a license,
1934 permit, appointment, registration, or other authority to conduct
1935 business subject to, any decision, finding, injunction,
1936 suspension, prohibition, revocation, denial, judgment, final
1937 agency action, or administrative order by any court of competent
1938 jurisdiction, administrative law proceeding, state agency,
1939 federal agency, national securities, commodities, or options
1940 exchange, or national securities, commodities, or options
1941 association involving a violation of any federal or state
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1942 securities or commodities law or any rule or regulation adopted
1943 thereunder, or a violation of any rule or regulation of any
1944 national securities, commodities, or options exchange or
1945 national securities, commodities, or options association.
1946 (2) When a licensee is charged with a felony enumerated in
1947 s. 626.207(2), the department shall, immediately upon receipt of
1948 information on or indictment for the felony, temporarily suspend
1949 a license or appointment issued under this chapter. Such
1950 suspension shall continue if the licensee is found guilty of, or
1951 pleads guilty or nolo contendere to, the crime, regardless of
1952 whether a judgment or conviction is entered, during a pending
1953 appeal. A person may not transact insurance business after
1954 suspension of his or her license or appointment.
1955 (3) The department may adopt rules to administer this
1956 section.
1957 Section 46. Section 634.423, Florida Statutes, is amended
1958 to read:
1959 634.423 Grounds for discretionary refusal, suspension, or
1960 revocation of license or appointment of sales representatives.—
1961 (1) The department may deny, suspend, revoke, or refuse to
1962 renew or continue the license or appointment of any sales
1963 representative if it is found that any one or more of the
1964 following grounds applicable to the sales representative exist
1965 under circumstances for which such denial, suspension,
1966 revocation, or refusal is not mandatory under s. 634.422:
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1967 (a)(1) Any cause for which granting of the license or
1968 appointment could have been refused had it then existed and been
1969 known to the department.
1970 (b)(2) Violation of any provision of this part, or of any
1971 other law applicable to the business of service warranties, in
1972 the course of dealings under the license or appointment.
1973 (c)(3) Violation of any lawful order or rule of the
1974 department or commission.
1975 (d)(4) Failure or refusal to pay over, upon demand, to any
1976 service warranty association or insurer the sales representative
1977 represents or has represented any money coming into her or his
1978 hands which belongs to the association or insurer.
1979 (e)(5) In the conduct of business under the license or
1980 appointment, engaging in unfair methods of competition or in
1981 unfair or deceptive acts or practices, as such methods, acts, or
1982 practices are or may be defined under this part, or otherwise
1983 showing herself or himself to be a source of injury or loss to
1984 the public or detriment to the public interest.
1985 (f)(6) Failure to report to the department within 30 days
1986 the final disposition of an administrative action taken against
1987 a sales representative by a governmental agency or other
1988 regulatory agency in this state or any other state or
1989 jurisdiction relating to the business of insurance, the sale of
1990 securities, or an activity involving fraud, dishonesty,
1991 trustworthiness, or breach of a fiduciary duty. The sales
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1992 representative must submit a copy of the order, conse nt to
1993 order, or other relevant legal documents to the department Being
1994 found guilty of or pleading guilty or nolo contendere to a
1995 felony or a crime punishable by imprisonment of 1 year or more
1996 under the law of the United States of America or any state
1997 thereof or under the law of any other country, without regard to
1998 whether judgment of conviction has been entered by the court
1999 having jurisdiction of such case.
2000 (2) The department may adopt rules to administer this
2001 section.
2002 Section 47. Section 648.25, Florida Statutes, is reordered
2003 and amended to read:
2004 648.25 Definitions.—As used in this chapter, the term:
2005 (1) "Appointment" means the authority given by an insurer
2006 or the managing general agent of an insurer through the
2007 department to a licensee to transact insurance or adjust claims
2008 on behalf of the insurer or managing general agent.
2009 (2)(1) "Bail bond agency" means:
2010 (a) The building where a licensee maintains an office and
2011 where all records required by ss. 648.34 and 648.36 are
2012 maintained; or
2013 (b) An entity that:
2014 1. Charges a fee or premium to release an accused
2015 defendant or detainee from jail; or
2016 2. Engages in or employs others to engage in any activity
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2017 that may be performed only by a licensed and appointed bail bond
2018 agent.
2019 (3)(2) "Bail bond agent" means a limited surety agent or a
2020 professional bail bond agent as hereafter defined.
2021 (7)(3) "Managing general agent" means any individual,
2022 partnership, association, or corporation appointed or employed
2023 by an insurer to supervise or manage the bail bond business
2024 written in this state by limited surety agents appointed by the
2025 insurer.
2026 (5)(4) "Insurer" means any domestic, foreign, or alien
2027 surety company which has been authorized to transact surety
2028 business in this state.
2029 (6)(5) "Limited surety agent" means any individual
2030 appointed by an insurer by power of attorney to execute or
2031 countersign bail bonds in connection with judicial proceedings
2032 who receives or is promised money or other things of value
2033 therefor.
2034 (4)(6) "Primary Bail bond agent in charge" means a
2035 licensed bail bond agent who is responsible for the overall
2036 operation and management of a bail bond agency location and
2037 whose responsibilities include hiring and supervising all
2038 individuals within that location. A bail bond agent may be
2039 designated as the primary bail bond agent in charge for only one
2040 bail bond agency location.
2041 (8)(7) "Professional bail bond agent" means any person who
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2042 pledges United States currency, United States postal money
2043 orders, or cashier's checks as security for a bail bond in
2044 connection with a judicial proceeding and receives or is
2045 promised therefor money or other things of value.
2046 (9)(8) "Temporary bail bond agent" means a person licensed
2047 before January 1, 2024, who is employed by a bail bond agent or
2048 agency, insurer, or managing general agent, and such licensee
2049 has the same authority as a licensed bail bond agent, including
2050 presenting defendants in court; apprehending, arresting, and
2051 surrendering defendants to the proper authorities, while
2052 accompanied by a supervising bail bond agent or an agent from
2053 the same agency; and keeping defendants under necessary
2054 surveillance. However, a temporary licensee may not execute or
2055 sign bonds, handle collateral receipts, or deliver bonds to
2056 appropriate authorities. A temporary licensee may not operate an
2057 agency or branch agency separate from the location of the
2058 supervising bail bond agent, managing general agent, or insurer
2059 by whom the licensee is employed. This does not affect the right
2060 of a bail bond agent or insurer to hire counsel or to obtain the
2061 assistance of law enforcement officers. A temporary bail bond
2062 agent license expires 18 months after issuance and is no longer
2063 valid on or after June 30, 2025.
2064 Section 48. Subsection (3) of section 648.26, Florida
2065 Statutes, is amended to read:
2066 648.26 Department of Financial Services; administration.—
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2067 (3) The papers, documents, reports, or any other
2068 investigatory records of the department are confidential and
2069 exempt from the provisions of s. 119.07(1) until such
2070 investigation is completed or ceases to be active. For the
2071 purpose of this section, an investigation is considered active
2072 "active" while the investigation is being conducted by the
2073 department with a reasonable, good faith belief that it may lead
2074 to the filing of administrative, civil, or criminal proceedings.
2075 An investigation does not cease to be active if the department
2076 is proceeding with reasonable dispatch and there is good faith
2077 belief that action may be initiated by the department or other
2078 administrative or law enforcement agency. This subsection does
2079 not prevent the department or office from disclosing the content
2080 of a complaint or such information as it deems necessary to
2081 conduct the investigation, to update the complainant as to the
2082 status and outcome of the complaint, or to share such
2083 information with any law enforcement agency or other regulatory
2084 body.
2085 Section 49. Subsection (5) of section 648.27, Florida
2086 Statutes, is amended to read:
2087 648.27 Licenses and appointments; general.—
2088 (5)(a) The license of a bail bond agent shall continue in
2089 force, without further examination unless deemed necessary by
2090 the department, until suspended, revoked, or otherwise
2091 terminated.
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2092 (b) The license of a temporary bail bond agent shall
2093 continue in force until suspended, revoked, or otherwise
2094 terminated.
2095 Section 50. Section 648.285, Florida Statutes, is amended
2096 to read:
2097 648.285 Bond agency; ownership requirements; applications
2098 for bail bond agency licenses.—
2099 (1) A person may not own, control, manage, or otherwise
2100 have a pecuniary interest in a bail bond agency unless such
2101 individual is a licensed pursuant to s. 648.27, and appointed
2102 through the department, and actively engaged as a bail bond
2103 agent for at least the preceding 24 months. Any agency that is
2104 not in compliance with this subsection is shall be subject to
2105 the issuance of an immediate final order of suspension of its
2106 license and all operations until the agency achieves compliance.
2107 (2) Effective January 1, 2024, the department may issue a
2108 bail bond agency license to any person only after such person
2109 files a written application with the department and qualifies
2110 for such license.
2111 (3) An application for a bail bond agency license must be
2112 signed by an individual required to be listed in the appli cation
2113 under paragraph (a). A bail bond agency license may permit a
2114 third party to complete, submit, and sign an application on the
2115 bail bond agency's behalf; however, the bail bond agency is
2116 responsible for ensuring that the information on the application
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2117 is true and correct, and the bail bond agency is accountable for
2118 any misstatements or misrepresentations. The application for a
2119 bail bond agency license must include:
2120 (a) The name and license number of each owner, partner,
2121 officer, director, president, senior vice president, secretary,
2122 treasurer, and limited liability company member who directs or
2123 participates in the management or control of the bail bond
2124 agency, whether through ownership of voting securities, by
2125 contract, by ownership of any agency bank account, or otherwise.
2126 (b) The residence address of each person required to be
2127 listed in the application under paragraph (a).
2128 (c) The name, principal business street address, and valid
2129 e-mail address of the bail bond agency and the name, address,
2130 and e-mail address of the agency's registered agent or person or
2131 company authorized to accept service on behalf of the bail bond
2132 agency.
2133 (d) The physical address of each branch bail bond agency,
2134 including its name, e-mail address, and telephone number, and
2135 the date that the branch location began transacting bail bond
2136 business.
2137 (e) The name of the full-time bail bond agent in charge of
2138 the agency office, including branch locations, and his or her
2139 corresponding location.
2140 (f) Such additional information as the department requires
2141 by rule to ascertain the trustworthiness and competence of
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2142 persons required to be listed on the application and to
2143 ascertain that such persons meet the requirements of this code.
2144 However, the department may not require that credit or character
2145 reports be submitted for persons required to be listed on the
2146 application.
2147 (4) The department must issue a license to each agency
2148 upon approval of the application, and each agency location must
2149 display the license prominently in a manner that makes it
2150 clearly visible to any customer or potential customer who enters
2151 the agency location.
2152 (5) A bail bond agency that holds a current and valid
2153 registration number with the department shall have its
2154 registration automatically converted to a license on July 1,
2155 2024.
2156 (6) Section 112.011 does not apply to bail bond agencies
2157 or to applicants for licensure as owners of bail bond agencies.
2158 (7)(2) If the owner of a bail bond agency dies or becomes
2159 mentally incapacitated, a personal representative or legal
2160 guardian may be issued a temporary permit to manage the affairs
2161 of the bail bond agency. Such person must appoint or maintain
2162 the appointment of a primary bail bond agent in charge, as
2163 provided in s. 648.387, and may not engage in any activities as
2164 a licensed bail bond agent but must comply with s. 648.387
2165 during the administration of the estate or guardianship. A
2166 temporary permit is valid for a maximum of 24 months.
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2167 (8)(3) Application for a temporary permit must be made by
2168 the personal representative or legal guardian upon statements
2169 and affidavits filed with the department on forms prescribed and
2170 furnished by it. The applicant must meet the qualifications for
2171 licensure as a bail bond agent, except for the residency,
2172 examination, education, and experience requirements.
2173 Section 51. Subsection (1) of section 648.30, Florida
2174 Statutes, is amended to read:
2175 648.30 Licensure and appointment required; prohibited
2176 acts; penalties.—
2177 (1)(a) A person or entity may not act in the capacity of a
2178 bail bond agent or temporary bail bond agency agent or perform
2179 any of the functions, duties, or powers prescribed for bail bond
2180 agents or temporary bail bond agencies agents under this chapter
2181 unless that person or entity is qualified, licensed, and
2182 appointed as provided in this chapter and employed by a bail
2183 bond agency.
2184 (b) A bail bond agent may not sell a bail bond issued by
2185 an insurer for which the agent and the agent's bail bond agency
2186 do not hold a current appointment.
2187 (c) Except as otherwise provided in this part, a person or
2188 entity, other than a bail bond agency or an employee of a bail
2189 bond agency, may not perform any of the functions of a bail bond
2190 agency without a bail bond agency license.
2191 Section 52. Section 648.31, Florida Statutes, is amended
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2192 to read:
2193 648.31 Appointment taxes and fees.—The department shall
2194 collect in advance all appointment taxes and fees for the
2195 issuance of any appointment to a bail bond agent or temporary
2196 bail bond agent, as provided in s. 624.501.
2197 Section 53. Subsection (2) of section 648.34, Florida
2198 Statutes, is amended to read:
2199 648.34 Bail bond agents; qualifications.—
2200 (2) To qualify as a bail bond agent, it must affirma tively
2201 appear at the time of application and throughout the period of
2202 licensure that the applicant has complied with the provisions of
2203 s. 648.355 and has obtained a temporary license pursuant to such
2204 section and:
2205 (a) The applicant Is a natural person who has reached the
2206 age of 18 years and holds a high school diploma or its
2207 equivalent.
2208 (b) The applicant Is a United States citizen or legal
2209 alien who possesses work authorization from the United States
2210 Bureau of Citizenship and Immigration Services and is a resident
2211 of this state. An individual who is a resident of this state
2212 shall be deemed to meet the residence requirement of this
2213 paragraph, notwithstanding the existence, at the time of
2214 application for license, of a license in the applicant's name on
2215 the records of another state as a resident licensee of such
2216 other state, if the applicant furnishes a letter of clearance
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2217 satisfactory to the department that his or her resident licenses
2218 have been canceled or changed to a nonresident basis and that he
2219 or she is in good standing.
2220 (c) Will maintain his or her The place of business of the
2221 applicant will be located in this state and in the county where
2222 the applicant will maintain his or her records and be actively
2223 engaged in the bail bond business and work with a licensed
2224 maintain an agency accessible to the public which is open for
2225 reasonable business hours.
2226 (d) The applicant Is vouched for and recommended upon
2227 sworn statements filed with the department by at least three
2228 reputable citizens who are residents of the same counties in
2229 which the applicant proposes to engage in the bail bond
2230 business.
2231 (e) The applicant Is a person of high character and
2232 approved integrity and has not been convicted of or pleaded
2233 guilty or no contest to a felony, a crime involving moral
2234 turpitude, or a crime punishable by imprisonment of 1 year or
2235 more under the law of any state, territory, or countr y, whether
2236 or not a judgment or conviction has been entered.
2237 (f) Within 2 years immediately before applying for the
2238 license, has successfully completed a basic certification course
2239 in the criminal justice system which consists of at least 120
2240 hours of classroom instruction with a passing grade of 80
2241 percent or higher and has successfully completed a
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2242 correspondence course for bail bond agents approved by the
2243 department.
2244 (g)(f) The applicant Has passed any required examination.
2245 Section 54. Section 648.355, Florida Statutes, is amended
2246 to read:
2247 648.355 Temporary limited license as Limited surety agents
2248 and agent or professional bail bond agents agent; qualifications
2249 pending examination.—
2250 (1) The department may, in its discretion, issue a
2251 temporary license as a limited surety agent or professional bail
2252 bond agent, subject to the following conditions:
2253 (a) The applicant is a natural person at least 18 years of
2254 age and holds a high school diploma or its equivalent.
2255 (b) The applicant is a United States citizen or legal
2256 alien who possesses work authorization from the United States
2257 Bureau of Citizenship and Immigration Services and is a resident
2258 of this state. An individual who is a resident of this state
2259 shall be deemed to meet the residence requirement o f this
2260 paragraph, notwithstanding the existence, at the time of
2261 application for temporary license, of a license in the
2262 individual's name on the records of another state as a resident
2263 licensee of such other state, if the applicant furnishes a
2264 letter of clearance satisfactory to the department that the
2265 individual's resident licenses have been canceled or changed to
2266 a nonresident basis and that the individual is in good standing.
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2267 (c) The applicant is a person of high character and
2268 approved integrity and has never been convicted of or pleaded
2269 guilty or no contest to a felony, a crime involving moral
2270 turpitude, or a crime punishable by imprisonment of 1 year or
2271 more under the law of any state, territory, or country, whether
2272 or not a judgment or conviction is entered.
2273 (d) Within 4 years prior to the date of application for a
2274 temporary license, the applicant has successfully completed a
2275 basic certification course in the criminal justice system,
2276 consisting of not less than 120 hours of classroom instruction
2277 with a passing grade of 80 percent or higher and has
2278 successfully completed a correspondence course for bail bond
2279 agents approved by the department.
2280 (e) The applicant must be employed full time at the time
2281 of licensure, and at all times throughout the existen ce of the
2282 temporary license, by only one licensed and appointed
2283 supervising bail bond agent, who supervises the work of the
2284 applicant and is responsible for the licensee's conduct in the
2285 bail bond business. The applicant must be appointed by the same
2286 insurers as the supervising bail bond agent. The supervising
2287 bail bond agent shall certify monthly to the department under
2288 oath, on a form prescribed by the department, the names and
2289 hours worked each week of all temporary bail bond agents. Filing
2290 a false certification is grounds for the immediate suspension of
2291 the license and imposition of a $5,000 administrative fine. The
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2292 department may adopt rules that establish standards for the
2293 employment requirements.
2294 (f) The application must be accompanied by an affidavit
2295 verifying proposed employment and a report as to the applicant's
2296 integrity and moral character on a form prescribed by the
2297 department and executed by the proposed employer.
2298 (g) The applicant must file with the department statements
2299 by at least three reputable citizens who are residents of the
2300 same counties in which the applicant proposes to engage as a
2301 temporary licensee.
2302 (h) The applicant's employer is responsible for the bail
2303 bonding acts of any licensee under this section.
2304 (2) All applicable license fees, as prescribed in s.
2305 624.501, must be paid before issuance of the temporary license.
2306 (3) The temporary license shall be effective for 18
2307 months, subject to earlier termination at the request of the
2308 employer or if suspended or revoked by the department.
2309 (4) The applicant shall furnish, with the application for
2310 temporary license, a complete set of the applicant's
2311 fingerprints in accordance with s. 626.171(4) and a recent
2312 credential-sized, fullface photograph of the applicant. The
2313 department may shall not issue a temporary license under this
2314 section until the department has received a report from the
2315 Department of Law Enforcement and the Federal Bureau of
2316 Investigation relative to the existence or nonexistence of a
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2317 criminal history report based on the applicant's fingerprints.
2318 (2)(5) The department may collect a fee necessary to cover
2319 the cost of a character and credit report made by an established
2320 and reputable independent reporting service. The fee shall be
2321 deposited to the credit of the Insurance Regulatory Trust Fund.
2322 (3)(6) Effective July 1, 2023, any individual licensed by
2323 the department as a temporary bail bond agent may take the
2324 required bail bond agent's licensure examination, may file an
2325 application for a bail bond agent's license if otherwise
2326 qualified for licensure, and may take the required bail bond
2327 agent's licensure examination After licensure as a temporary
2328 licensee for at least 12 months, such licensee may file an
2329 application for and become eligible for a regular bail bond
2330 agent's license based on the licensee's experience in the bail
2331 bond business and education pursuant to paragraph (1)(d) and, if
2332 otherwise qualified, take the required bail bond agent's
2333 licensure examination. The applicant and supervising bail bond
2334 agent must each file an affidavit under oath, on a form
2335 prescribed by the department, verifying the required employment
2336 of the temporary agent before issuance of the license .
2337 (7) In no event shall a temporary licensee licensed under
2338 this section perform any of the functions for which a bail bond
2339 agent's license is required after expiration of the temporary
2340 license without having passed the written examination as for a
2341 regular bail bond agent's license.
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2342 (8)(a) A temporary licensee has the same authority as a
2343 licensed bail bond agent, including presenting defendants in
2344 court; apprehending, arresting, and surrendering defendants to
2345 the proper authorities; and keeping defendants under necessary
2346 surveillance. However, a temporary licensee must be accompanied
2347 by a supervising bail bond agent or an agent from the same
2348 agency when apprehending, arresting, or surrendering defendants
2349 to authorities.
2350 (b) A temporary licensee may not execute or sign bonds,
2351 handle collateral receipts, deliver bonds to appropriate
2352 authorities, or operate an agency or branch agency separate from
2353 the location of the supervising bail bond agent, managing
2354 general agent, or insurer by whom the licensee is employed.
2355 (4)(9) Effective July 1, 2023, the department may not
2356 issue a temporary bail bond agent's license. An individual
2357 currently licensed as a temporary bail bond agent may continue
2358 to be licensed in accordance with this chapter. A temporary bail
2359 bond agent's license may not be reinstated if the license
2360 expires or is terminated, suspended, or revoked The department
2361 shall not issue a temporary bail bond agent's license to any
2362 individual who has held such a temporary license in this state
2363 within 2 years after the expiration of such temporary bail bond
2364 agent's license.
2365 Section 55. Subsections (1) through (4) of section
2366 648.382, Florida Statutes, are amended to read:
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2367 648.382 Appointment of bail bond agents and bail bond
2368 agencies temporary bail bond agents; effective date of
2369 appointment.—
2370 (1)(a) Each insurer or appointing a bail bond agent and
2371 each insurer, managing general agent, or bail bond agent
2372 appointing a temporary bail bond agent or bail bond agency in
2373 this state must file the appointment with the department and, at
2374 the same time, pay the applicable appointment fees and taxes. A
2375 person appointed under this section must hold a valid bail bond
2376 agent's or temporary bail bond agency's agent's license.
2377 (b) Effective July 1, 2025, each insurer or managing
2378 general agent appointing a bail bond agency in this state must
2379 file the appointment with the department. An entity appointed
2380 under this section must hold a valid bail bond agency's license.
2381 (2) Before Prior to any appointment, an appropriate
2382 officer or official of the appointing insurer in the case of a
2383 bail bond agent or an insurer, managing general agent, or bail
2384 bond agent in the case of a temporary bail bond agent must
2385 submit:
2386 (a) A certified statement or affidavit to the department
2387 stating what investigation has been made concerning the proposed
2388 appointee and the proposed appointee's background and the
2389 appointing person's opinion to the best of his or her knowledge
2390 and belief as to the moral character and reputation of the
2391 proposed appointee. In lieu of such certified statement or
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2392 affidavit, by authorizing the effectuation of an appointment for
2393 a licensee, the appointing entity certifies to the department
2394 that such investigation has been made and that the results of
2395 the investigation and the appointing person's opinion is that
2396 the proposed appointee is a person of good moral character and
2397 reputation and is fit to engage in the bail bond business;
2398 (b) An affidavit under oath on a form prescribed by the
2399 department, signed by the proposed appointee, stating that
2400 premiums are not owed to any insurer and that the appointee will
2401 discharge all outstanding forfeitures and judgments on bonds
2402 previously written. If the appointee does not satisfy or
2403 discharge such forfeitures or judgments, the former insurer
2404 shall file a notice, with supporting documents, with the
2405 appointing insurer, the former agent or agency, and the
2406 department, stating under oath that the licensee has failed to
2407 timely satisfy forfeitures and judgments on bonds written and
2408 that the insurer has satisfied the forfeiture or judgment from
2409 its own funds. Upon receipt of such notification and supporting
2410 documents, the appointing insurer shall immediately cancel the
2411 licensee's appointment. The licensee may be reappointed only
2412 upon certification by the former insurer that all forfeitures
2413 and judgments on bonds written by the licensee have been
2414 discharged. The appointing insurer or former agent or agency
2415 may, within 10 days, file a petition with the department seeking
2416 relief from this paragraph. Filing of the petition stays the
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2417 duty of the appointing insurer to cancel the appointment until
2418 the department grants or denies the petition; and
2419 (c) Any other information that the department reasonably
2420 requires concerning the proposed appointee; and
2421 (d) Effective January 1, 2025, a certification that the
2422 appointing entity obtained from each appointee the following
2423 sworn statement:
2424
2425 Pursuant to section 648.382(2)(b), Florida Statutes, I
2426 do solemnly swear that I owe no premium to any insurer
2427 and that I will discharge all outstanding forfeitures
2428 and judgments on bonds that have been previously
2429 written. I acknowledge that failure to do this will
2430 result in my active appointments being canceled.
2431
2432 An appointed bail bond agency must have the attestation under
2433 this paragraph signed by its owner.
2434 (3) By authorizing the effectuation of an appointment for
2435 a licensee, the appointing insurer certifies to the department
2436 that the insurer will be bound by the acts of the bai l bond
2437 agent or bail bond agency acting within the scope of the agent's
2438 or agency's his or her appointment, and, in the case of a
2439 temporary bail bond agent, the appointing insurer, managing
2440 general agent, or bail bond agent, as the case may be, must
2441 certify to the department that he or she will supervise the
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2442 temporary bail bond agent's activities.
2443 (4) Each appointing insurer or, managing general agent, or
2444 bail bond agent must advise the department in writing within 5
2445 days after receiving notice or learning that an appointee has
2446 been arrested for, pled guilty or nolo contendere to, or been
2447 found guilty of, a felony or other offense punishable by
2448 imprisonment of 1 year or more under the law of any
2449 jurisdiction, whether judgment was entered or withheld by the
2450 court.
2451 Section 56. Present subsections (1) through (4) of section
2452 648.386, Florida Statutes, are redesignated as subsections (2)
2453 through (5), respectively, a new subsection (1) is added to that
2454 section, and present subsection (2) of that section is amended,
2455 to read:
2456 648.386 Qualifications for prelicensing and continuing
2457 education schools and instructors.—
2458 (1) DEFINITION OF "CLASSROOM INSTRUCTION".—As used in this
2459 section, the term "classroom instruction" means a course
2460 designed to be presented to a group of students by a live
2461 instructor using lecture, video, webcast, or virtual or other
2462 audio-video presentation.
2463 (3)(2) SCHOOLS AND CURRICULUM FOR CONTINUING EDUCATION
2464 SCHOOLS.—In order to be considered for approval and
2465 certification as an approved limited surety agent and
2466 professional bail bond agent continuing education school, such
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2467 entity must:
2468 (a) Provide a minimum of three classroom-instruction
2469 continuing education classes per calendar year.
2470 (b) Submit a course curriculum to the department for
2471 approval.
2472 (c) Offer continuing education classes that comprise which
2473 are comprised of a minimum of 2 hours of approved classroom-
2474 instruction coursework and are taught by an approved supervising
2475 instructor or guest lecturer approved by the entity or the
2476 supervising instructor.
2477 Section 57. Section 648.387, Florida Statutes, is amended
2478 to read:
2479 648.387 Primary Bail bond agent in charge agents; duties.—
2480 (1) The owner or operator of a bail bond agency shall
2481 designate a primary bail bond agent in charge for each location,
2482 and shall file with the department the name and license number
2483 of the person and the address of the location on a form approved
2484 by the department. The designation of the primary bail bond
2485 agent in charge may be changed if the department is notified
2486 immediately. Failure to notify the department within 10 working
2487 days after such change is grounds for disciplinary action
2488 pursuant to s. 648.45.
2489 (2) The primary bail bond agent in charge is responsible
2490 for the overall operation and management of a bail bond agency
2491 location, whose responsibilities may include, without
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2492 limitations, hiring and supervising of all individuals within
2493 the location, whether they deal with the public in the
2494 solicitation or negotiation of bail bond contracts or in the
2495 collection or accounting of moneys. A person may be designated
2496 as the primary bail bond agent in charge for only one agency and
2497 location.
2498 (3) The department may suspend or revoke the license of
2499 the owner, bail bond agent in charge operator, and primary bail
2500 bond agency agent if the a bail bond agency employs, contracts
2501 with, or uses the services of a person who has had a license
2502 denied or whose license is currently suspended or revoked.
2503 However, a person who has been denied a license for failure to
2504 pass a required examination may be employed to perform clerical
2505 or administrative functions for which licensure is not required.
2506 (4) An owner, a bail bond agent in charge operator, or a
2507 bail bond agency primary agent may not employ, contract with, or
2508 use the services of any person in a bail bond agency who has
2509 been charged with, found guilty of, or pled guilty or nolo
2510 contendere to a felony or a crime punishable by imprisonment of
2511 1 year or more under the law of any jurisdiction, without regard
2512 to whether judgment was entered or withheld by the court.
2513 (5) A bail bond agency location may not conduct surety
2514 business unless a primary bail bond agent in charge is
2515 designated by, and provides services to, the bail bond agency at
2516 all times. If the bail bond agent in charge designated with the
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2517 department ends his or her affiliation with the bail bond agency
2518 for any reason, and the bail bond agency fails to designate
2519 another bail bond agent in charge within the 10-day period under
2520 subsection (1) and such failure continues for 90 days, the bail
2521 bond agency license automatically expires on the 91st day after
2522 the date the designated bail bond agent in charge ended his or
2523 her affiliation with the agency The failure to designate a
2524 primary agent on a form prescribed by the department, within 10
2525 working days after an agency's inception or a change of primary
2526 agent, is a violation of this chapter, punishable as provided in
2527 s. 648.45.
2528 Section 58. Section 648.3875, Florida Statutes, is created
2529 to read:
2530 648.3875 Bail bond agent in charge; qualifications.—
2531 (1) An application for designation as a bail bond agent in
2532 charge must be submitted on forms prescribed by the department.
2533 The application must include the applicant's full name and the
2534 applicant's license number issued pursuant to s. 648.27.
2535 (2) To qualify as a bail bond agent in charge, it must
2536 affirmatively appear that, at the time of application and
2537 throughout the period of licensure, the applicant has complied
2538 with s. 648.285 and that the applicant has been licensed as a
2539 bail bond agent for the 24 months immediately preceding the
2540 appointment as the bail bond agent in charge.
2541 Section 59. Section 648.39, Florida Statutes, is amended
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Amendment No. 1
2542 to read:
2543 648.39 Termination of appointment of managing general
2544 agents, bail bond agents, and temporary bail bond agencies
2545 agents.—
2546 (1) An insurer that who terminates the appointment of a
2547 managing general agent, bail bond agent, or temporary bail bond
2548 agency agent shall, within 10 days after such termination, file
2549 written notice thereof with the department together with a
2550 statement that it has given or mailed notice to the terminated
2551 agent or agency. Such notice filed with the department must
2552 state the reasons, if any, for such termination. Information so
2553 furnished to the department is confidential and exempt from the
2554 provisions of s. 119.07(1).
2555 (2) Each insurer shall, within 5 days after terminating
2556 the appointment of any managing general agent, bail bond agent,
2557 or temporary bail bond agency agent, give written notice thereof
2558 to each clerk of the circuit court and sheriff with whom such
2559 person is registered.
2560 (3) An insurer that terminates the appointment of a
2561 managing general agent, or bail bond agent, or temporary bail
2562 bond agency agent may authorize such person to continue to
2563 attempt the arrest and surrender of a defendant for whom a
2564 surety bond had been written by the bail bond agent before prior
2565 to termination and to seek discharge of forfeitures and
2566 judgments as provided in chapter 903.
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Amendment No. 1
2567 Section 60. Section 648.41, Florida Statutes, is repealed.
2568 Section 61. Section 648.42, Florida Statutes, is amended
2569 to read:
2570 648.42 Registration of bail bond agents.—A bail bond agent
2571 may not become a surety on an undertaking unless he or she has
2572 registered in the office of the sheriff and with the clerk of
2573 the circuit court in the county in which the bail bond agent
2574 resides. The bail bond agent may register in a like manner in
2575 any other county, and any bail bond agent shall file a certified
2576 copy of his or her appointment by power of attorney from each
2577 insurer which he or she represents as a bail bond agent with
2578 each of such officers. Registration and filing of a certified
2579 copy of renewed power of attorney shall be performed by April 1
2580 of each odd-numbered year. The clerk of the circuit court and
2581 the sheriff may shall not permit the registration of a bail bond
2582 agent unless such bail bond agent is currently licensed by the
2583 department and appointed by an insurer the department. Nothing
2584 in this section shall prevent the registration of a temporary
2585 licensee at the jail for the purposes of enabling the licensee
2586 to perform the duties under such license as set forth in this
2587 chapter.
2588 Section 62. Subsections (1) and (2) and paragraphs (c) and
2589 (d) of subsection (8) of section 648.44, Florida Statutes, are
2590 amended to read:
2591 648.44 Prohibitions; penalty.—
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Amendment No. 1
2592 (1) A bail bond agent or temporary bail bond agency agent
2593 may not:
2594 (a) Suggest or advise the employment of, or name for
2595 employment, any particular attorney or attorneys to represent
2596 his or her principal.
2597 (b) Directly or indirectly solicit business in or on the
2598 property or grounds of a jail, prison, or other place where
2599 prisoners are confined or in or on the property or grounds of
2600 any court. The term "solicitation" includes the distribution of
2601 business cards, print advertising, or other written or oral
2602 information directed to prisoners or potential indemnitors,
2603 unless a request is initiated by the prisoner or a potential
2604 indemnitor. Permissible print advertising in the jail is
2605 strictly limited to a listing in a telephone director y and the
2606 posting of the bail bond agent's or agency's name, address, e-
2607 mail address, web address, and telephone number in a designated
2608 location within the jail.
2609 (c) Initiate in-person or telephone solicitation after
2610 9:00 p.m. or before 8:00 a.m., in the case of domestic violence
2611 cases, at the residence of the detainee or the detainee's
2612 family. Any solicitation not prohibited by this chapter must
2613 comply with the telephone solicitation requirements in ss.
2614 501.059(2) and (4), 501.613, and 501.616(6).
2615 (d) Wear or display any identification other than the
2616 department issued or approved license or approved department
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Amendment No. 1
2617 identification, which includes a citation of the licensee's
2618 arrest powers, in or on the property or grounds of a jail,
2619 prison, or other place where prisoners are confined or in or on
2620 the property or grounds of any court.
2621 (e) Pay a fee or rebate or give or promise anything of
2622 value to a jailer, police officer, peace officer, or committing
2623 trial court judge or any other person who has power to arrest or
2624 to hold in custody or to any public official or public employee
2625 in order to secure a settlement, compromise, remission, or
2626 reduction of the amount of any bail bond or estreatment thereof.
2627 (f) Pay a fee or rebate or give anything of value to an
2628 attorney in a bail bond matter, except in defense of any action
2629 on a bond.
2630 (g) Pay a fee or rebate or give or promise anything of
2631 value to the principal or anyone in his or her behalf.
2632 (h) Participate in the capacity of an attorney at a trial
2633 or hearing of one on whose bond he or she is surety.
2634 (i) Loiter in or about a jail, courthouse, or where
2635 prisoners are confined.
2636 (j) Accept anything of value from a principal for
2637 providing a bail bond except the premium and transfer fee
2638 authorized by the office, except that the bail bond agent or
2639 bail bond agency may accept collateral security or other
2640 indemnity from the principal or another person in accordance
2641 with the provisions of s. 648.442, together with documentary
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Amendment No. 1
2642 stamp taxes, if applicable. No fees, expenses, or charges of any
2643 kind shall be permitted to be deducted from the collateral held
2644 or any return premium due, except as authorized by this chapter
2645 or rule of the department or commission. A bail bond agent or
2646 bail bond agency may, upon written agreement with another party,
2647 receive a fee or compensation for returning to custody an
2648 individual who has fled the jurisdiction of the court or caused
2649 the forfeiture of a bond.
2650 (k) Write more than one power of attorney per charge on a
2651 bond, except in the case of a cosurety, unless the power of
2652 attorney prohibits a cosurety.
2653 (l) Execute a bond in this state on his or her own behalf.
2654 (m) Execute a bond in this state if a judgment has been
2655 entered on a bond executed by the bail bond agent or bail bond
2656 agency is a named party on the judgement, which has remained
2657 unpaid for 35 days, unless the full amount of the judgment is
2658 deposited with the clerk in accordance with s. 903.27(5).
2659 (n) Make a statement or representation to a court, unless
2660 such statement or representation is under oath. Such statement
2661 or representation may not be false, misleading, or deceptive.
2662 (o) Attempt to collect, through threat or coercion,
2663 amounts due for the payment of any indebtedness related to the
2664 issuance of a bail bond in violation of s. 559.72.
2665 (p) Conduct bail bond business with any person, other than
2666 the defendant, on the grounds of the jail or courthouse for the
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Amendment No. 1
2667 purpose of executing a bond.
2668 (2) The following persons or classes may shall not be bail
2669 bond agents, temporary bail bond agents, or employees of a bail
2670 bond agent or a bail bond agency business and may shall not
2671 directly or indirectly receive any benefits from the execution
2672 of any bail bond:
2673 (a) Jailers or persons employed in any jail.
2674 (b) Police officers or employees of any police department
2675 or law enforcement agency.
2676 (c) Committing trial court judges, employees of a court,
2677 or employees of the clerk of any court.
2678 (d) Sheriffs and deputy sheriffs or employees of any
2679 sheriff's department.
2680 (e) Attorneys.
2681 (f) Persons having the power to arrest or persons who have
2682 authority over or control of federal, state, county, or
2683 municipal prisoners.
2684 (8)
2685 (c) Any law enforcement agency, state attorney's office,
2686 court clerk, or insurer that is aware that a bail bond agent or
2687 temporary bail bond agent has been convicted of or who has
2688 pleaded guilty or no contest to a crime as described in
2689 paragraph (a) shall notify the department of this fact.
2690 (d) Upon the filing of an information or indictment
2691 against a bail bond agent or temporary bail bond agent, the
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Amendment No. 1
2692 state attorney or clerk of the circuit court shall immediately
2693 furnish the department a certified copy of the information or
2694 indictment.
2695 Section 63. Subsection (1) of section 648.441, Florida
2696 Statutes, is amended to read:
2697 648.441 Furnishing supplies to unlicensed bail bond agent
2698 prohibited; civil liability and penalty.—
2699 (1) An insurer, managing general agent, bail bond agent,
2700 or temporary bail bond agency agent appointed under this chapter
2701 may not furnish to any person any blank forms, applications,
2702 stationery, business card, or other supplies to be used in
2703 soliciting, negotiating, or effecting bail bonds until such
2704 person has received from the department a license to act as a
2705 bail bond agent and is appointed by the insurer. This section
2706 does not prohibit an unlicensed employee, under the direct
2707 supervision and control of a licensed and appointed bail bond
2708 agent, from possessing or executing in the bail bond agency, any
2709 forms, except for powers of attorney, bond forms, and collateral
2710 receipts, while acting within the scope of his or her
2711 employment.
2712 Section 64. Subsection (3) of section 648.46, Florida
2713 Statutes, is amended to read:
2714 648.46 Procedure for disciplinary action against
2715 licensees.—
2716 (3) The complaint and all information obtained pursuant to
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Amendment No. 1
2717 the investigation of the department are confidential and exempt
2718 from the provisions of s. 119.07(1) until such investigation is
2719 completed or ceases to be active. For the purpose of this
2720 section, an investigation is considered "active" while the
2721 investigation is being conducted by the department with a
2722 reasonable, good faith belief that it may lead to the filing of
2723 administrative, civil, or criminal proceedings. An investigation
2724 does not cease to be active if the department is proceeding with
2725 reasonable dispatch and there is good faith belief that action
2726 may be initiated by the department or other administrative or
2727 law enforcement agency. This subsection does not prevent the
2728 department or office from disclosing the complaint or such
2729 information as it deems necessary to conduct the investigation,
2730 to update the complainant as to the status and outcome of the
2731 complaint, or to share such information with any law enforcement
2732 agency or other regulatory body.
2733 Section 65. Section 648.50, Florida Statutes, is amended
2734 to read:
2735 648.50 Effect of suspension, revocation upon associated
2736 licenses and licensees.—
2737 (1) Upon the suspension, revocation, or refusal to renew
2738 or continue any license or appointment or the eligibility to
2739 hold a license or appointment of a bail bond agent or temporary
2740 bail bond agency agent, the department shall at the same time
2741 likewise suspend or revoke all other licenses or appointments
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Bill No. HB 487 (2023)
Amendment No. 1
2742 and the eligibility to hold any other such licenses or
2743 appointments which may be held by the licensee under the Florida
2744 Insurance Code.
2745 (2) In case of the suspension or revocation of the license
2746 or appointment, or the eligibility to hold a license or
2747 appointment, of any bail bond agent, the license, appointment,
2748 or eligibility of any and all bail bond agents who are members
2749 of a bail bond agency, whether incorporated or unincorporated,
2750 and any and all temporary bail bond agents employed by such bail
2751 bond agency, who knowingly are parties to the act which formed
2752 the ground for the suspension or revocation may likewise be
2753 suspended or revoked.
2754 (3) A No person whose license as a bail bond agent or
2755 temporary bail bond agent has been revoked or suspended may not
2756 shall be employed by any bail bond agent, have any ownership
2757 interest in any business involving bail bonds, or have any
2758 financial interest of any type in any bail bond business during
2759 the period of revocation or suspension.
2760 Section 66. Subsections (4), (5), and (6) of section
2761 717.135, Florida Statutes, is amended to read:
2762 717.135 Recovery agreements and purchase agreements for
2763 claims filed by a claimant's representative; fees and costs. —
2764 (4) A claimant's representative must use the Unclaimed
2765 Property Recovery Agreement or the Unclaimed Property Purchase
2766 Agreement as the exclusive means of engaging into an agreement
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Amendment No. 1
2767 or contract with a claimant or seller to file a claim with the
2768 department.
2769 (5) Fees and costs may be owed or paid to, or received by,
2770 a claimant's representative only after a filed claim has been
2771 approved and if the claimant's representative used an agreement
2772 authorized by this section.
2773 (6) A claimant's representative may not use or distribute
2774 any other agreement of any type, conveyed by any method, form,
2775 or other media with respect to the claimant or seller which
2776 relates, directly or indirectly, to unclaimed property accounts
2777 held by the department or the Chief Financial Officer other than
2778 the agreements authorized by this section. Any engagement,
2779 authorization, recovery, or fee agreement that is not authorized
2780 by this section is void. A claimant's representative is subject
2781 to administrative and civil enforcement under s. 717.1322 if he
2782 or she uses an agreement that is not authorized by this section.
2783 Nothing herein is intended to inhibit lawful non-agreement, non-
2784 contractual or advertising communications between or among the
2785 parties.
2786 Section 67. Paragraph (a) of subsection (4) of section
2787 843.021, Florida Statutes, is amended to read:
2788 843.021 Unlawful possession of a concealed handcuff key.—
2789 (4)(a) It is a defense to a charge of violating this
2790 section that the person in custody and in possession of a
2791 concealed handcuff key is:
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Amendment No. 1
2792 1. A federal, state, or local law enforcement officer,
2793 including a reserve or auxiliary officer, a licensed security
2794 officer, or a private investigator as defined in s. 493.6101; or
2795 2. A professional bail bond agent, temporary bail bond
2796 agent, runner, or limited surety agent as defined in s. 648.25.
2797 Section 68. Paragraph (b) of subsection (6) of section
2798 28.2221, Florida Statutes, is amended to read:
2799 28.2221 Electronic access to official records.—
2800 (6)
2801 (b)1. For the purpose of conducting a title search, as
2802 defined in s. 627.7711(4), of the Official Records, as described
2803 in s. 28.222(2), and upon presentation of photo identificatio n
2804 and affirmation by sworn affidavit consistent with s. 92.50 to
2805 the county recorder, information restricted from public display,
2806 inspection, or copying under paragraph (5)(a) pursuant to a
2807 request for removal made under s. 119.071(4)(d) may be disclosed
2808 to:
2809 a. A title insurer authorized pursuant to s. 624.401 and
2810 its affiliates as defined in s. 624.10;
2811 b. A title insurance agent or title insurance agency as
2812 these terms are defined in s. 626.841 s. 626.841(1) and (2),
2813 respectively; or
2814 c. An attorney duly admitted to practice law in this state
2815 and in good standing with The Florida Bar.
2816 2. The photo identification and affirmation by sworn
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Amendment No. 1
2817 affidavit may be delivered in person, by mail, or by electronic
2818 transmission to the county recorder.
2819 3. The affiant requestor must attest to his or her
2820 authority and the authorized purpose to access exempt
2821 information pursuant to this section for the property specified
2822 within the sworn affidavit.
2823 4. The affiant requestor must identify the Official
2824 Records book and page number, instrument number, or the clerk's
2825 file number for each document requested within the sworn
2826 affidavit and must include a description of the lawful purpose
2827 and identify the individual or property that is the subject of
2828 the search within the sworn affidavit.
2829 5. Affidavits submitted by a title insurer, title
2830 insurance agent, or title insurance agency must include the
2831 Florida Company Code or the license number, as applicable, and
2832 an attestation to the affiant requestor's authorization to
2833 transact business in this state. Affidavits submitted by an
2834 attorney authorized under this section must include the affiant
2835 requestor's Florida Bar number and a statement that the affiant
2836 requestor has an agency agreement with a title insurer directly
2837 or through his or her law firm.
2838 6. The county recorder must record such affidavit in the
2839 Official Records, as described in s. 28.222(2), but may not
2840 place the image or copy of the affidavit on a publicly available
2841 Internet website for general public display.
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Amendment No. 1
2842 7. Upon providing a document disclosing redacted
2843 information to an affiant requestor under this section, the
2844 county recorder must provide a copy of the affidavit requesting
2845 disclosure of the redacted information to each affected party at
2846 the address listed on the document or on the request for removal
2847 made by the affected party under s. 119.071. The county recorder
2848 must prepare a certificate of mailing to be affixed to the
2849 affidavit and must receive the statutory service charges as
2850 prescribed by s. 28.24 from the affiant requestor.
2851 8. Any party making a false attestation under this section
2852 is subject to the penalty of perjury under s. 837.012.
2853 Section 69. Paragraph (d) of subsection (4) of section
2854 119.071, Florida Statutes, is amended to read:
2855 119.071 General exemptions from inspection or copying of
2856 public records.—
2857 (4) AGENCY PERSONNEL INFORMATION.—
2858 (d)1. For purposes of this paragraph, the term:
2859 a. "Home addresses" means the dwelling location at which
2860 an individual resides and includes the physical address, mailing
2861 address, street address, parcel identification number, plot
2862 identification number, legal property description, neighborhood
2863 name and lot number, GPS coordinates, and any other descriptive
2864 property information that may reveal the home address.
2865 b. "Telephone numbers" includes home telephone numbers,
2866 personal cellular telephone numbers, personal pager telephone
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Amendment No. 1
2867 numbers, and telephone numbers associated with personal
2868 communications devices.
2869 2.a. The home addresses, telephone numbers, dates of
2870 birth, and photographs of active or former sworn law enforcement
2871 personnel or of active or former civilian personnel employed by
2872 a law enforcement agency, including correctional and
2873 correctional probation officers, personnel of the Department of
2874 Children and Families whose duties include the investigation of
2875 abuse, neglect, exploitation, fraud, theft, or other criminal
2876 activities, personnel of the Department of Health whose duties
2877 are to support the investigation of child abuse or neglect, and
2878 personnel of the Department of Revenue or local governments
2879 whose responsibilities include revenue collection and
2880 enforcement or child support enforcement; the names, home
2881 addresses, telephone numbers, photographs, dates of birth, and
2882 places of employment of the spouses and children of such
2883 personnel; and the names and locations of schools and day care
2884 facilities attended by the children of such personnel are exempt
2885 from s. 119.07(1) and s. 24(a), Art. I of the State
2886 Constitution.
2887 b. The home addresses, telephone numbers, dates of birth,
2888 and photographs of current or former nonsworn investigative
2889 personnel of the Department of Financial Services whose duties
2890 include the investigation of fraud, theft, workers' compensation
2891 coverage requirements and compliance, other related criminal
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Amendment No. 1
2892 activities, or state regulatory requirement violations; the
2893 names, home addresses, telephone numbers, dates of birth, and
2894 places of employment of the spouses and children of such
2895 personnel; and the names and locations of schools and day care
2896 facilities attended by the children of such personnel are exempt
2897 from s. 119.07(1) and s. 24(a), Art. I of the State
2898 Constitution.
2899 c. The home addresses, telephone numbers, dates of birth,
2900 and photographs of current or former nonsworn investigative
2901 personnel of the Office of Financial Regulation's Bureau of
2902 Financial Investigations whose duties include the investigation
2903 of fraud, theft, other related criminal activities, or state
2904 regulatory requirement violations; the names, home addresses,
2905 telephone numbers, dates of birth, and places of employment of
2906 the spouses and children of such personnel; and the names and
2907 locations of schools and day care facilities attended by the
2908 children of such personnel are exempt from s. 119.07(1) and s.
2909 24(a), Art. I of the State Constitution.
2910 d. The home addresses, telephone numbers, dates of birth,
2911 and photographs of current or former firefighters certified in
2912 compliance with s. 633.408; the names, home addresses, telephone
2913 numbers, photographs, dates of birth, and places of employment
2914 of the spouses and children of such firefighters; and the names
2915 and locations of schools and day care facilities attended by the
2916 children of such firefighters are exempt from s. 119.07(1) and
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Amendment No. 1
2917 s. 24(a), Art. I of the State Constitution.
2918 e. The home addresses, dates of birth, and telephone
2919 numbers of current or former justices of the Supreme Court,
2920 district court of appeal judges, circuit court judges, and
2921 county court judges; the names, home addresses, telephone
2922 numbers, dates of birth, and places of employment of the spouses
2923 and children of current or former justices and judges; and the
2924 names and locations of schools and day care facilities attended
2925 by the children of current or former justices and judges are
2926 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
2927 Constitution.
2928 f. The home addresses, telephone numbers, dates of birth,
2929 and photographs of current or former state attorneys, assistant
2930 state attorneys, statewide prosecutors, or assistant statewide
2931 prosecutors; the names, home addresses, telephone numbers,
2932 photographs, dates of birth, and places of employment of the
2933 spouses and children of current or former state attorneys,
2934 assistant state attorneys, statewide prosecutors, or assistant
2935 statewide prosecutors; and the names and locations of schools
2936 and day care facilities attended by the children of current or
2937 former state attorneys, assistant state attorneys, statewide
2938 prosecutors, or assistant statewide prosecutors are exempt from
2939 s. 119.07(1) and s. 24(a), Art. I of the State Constitution.
2940 g. The home addresses, dates of birth, and telephone
2941 numbers of general magistrates, special magistrates, judges of
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Amendment No. 1
2942 compensation claims, administrative law judges of the Division
2943 of Administrative Hearings, and child support enforcemen t
2944 hearing officers; the names, home addresses, telephone numbers,
2945 dates of birth, and places of employment of the spouses and
2946 children of general magistrates, special magistrates, judges of
2947 compensation claims, administrative law judges of the Division
2948 of Administrative Hearings, and child support enforcement
2949 hearing officers; and the names and locations of schools and day
2950 care facilities attended by the children of general magistrates,
2951 special magistrates, judges of compensation claims,
2952 administrative law judges of the Division of Administrative
2953 Hearings, and child support enforcement hearing officers are
2954 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
2955 Constitution.
2956 h. The home addresses, telephone numbers, dates of birth,
2957 and photographs of current or former human resource, labor
2958 relations, or employee relations directors, assistant directors,
2959 managers, or assistant managers of any local government agency
2960 or water management district whose duties include hiring and
2961 firing employees, labor contract negotiation, administration, or
2962 other personnel-related duties; the names, home addresses,
2963 telephone numbers, dates of birth, and places of employment of
2964 the spouses and children of such personnel; and the names and
2965 locations of schools and day care facilities attended by the
2966 children of such personnel are exempt from s. 119.07(1) and s.
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Amendment No. 1
2967 24(a), Art. I of the State Constitution.
2968 i. The home addresses, telephone numbers, dates of birth,
2969 and photographs of current or former code enforcement officers;
2970 the names, home addresses, telephone numbers, dates of birth,
2971 and places of employment of the spouses and children of such
2972 personnel; and the names and locations of schools and day care
2973 facilities attended by the children of such personnel are exempt
2974 from s. 119.07(1) and s. 24(a), Art. I of the State
2975 Constitution.
2976 j. The home addresses, telephone numbers, places of
2977 employment, dates of birth, and photographs of current or former
2978 guardians ad litem, as defined in s. 39.820; the names, home
2979 addresses, telephone numbers, dates of birth, and places of
2980 employment of the spouses and children of such persons; and the
2981 names and locations of schools and day care facilities attended
2982 by the children of such persons are exempt from s. 119.07(1) and
2983 s. 24(a), Art. I of the State Constitution.
2984 k. The home addresses, telephone numbers, dates of birth,
2985 and photographs of current or former juvenile probation
2986 officers, juvenile probation supervisors, detention
2987 superintendents, assistant detention superintendents, juvenile
2988 justice detention officers I and II, juvenile justice detention
2989 officer supervisors, juvenile justice residential officers,
2990 juvenile justice residential officer supervisors I and II,
2991 juvenile justice counselors, juvenile justice counselor
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Bill No. HB 487 (2023)
Amendment No. 1
2992 supervisors, human services counselor administrators, senior
2993 human services counselor administrators, rehabilitation
2994 therapists, and social services counselors of the Department of
2995 Juvenile Justice; the names, home addresses, telephone numbers,
2996 dates of birth, and places of employment of spouses and children
2997 of such personnel; and the names and locations of schools and
2998 day care facilities attended by the children of such personnel
2999 are exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3000 Constitution.
3001 l. The home addresses, telephone numbers, dates of birth,
3002 and photographs of current or former public defenders, assistant
3003 public defenders, criminal conflict and civil regional counsel,
3004 and assistant criminal conflict and civil regional counsel; the
3005 names, home addresses, telephone numbers, dates of birth, and
3006 places of employment of the spouses and children of current or
3007 former public defenders, assistant public defenders, criminal
3008 conflict and civil regional counsel, and assistant criminal
3009 conflict and civil regional counsel; and the names and locations
3010 of schools and day care facilities attended by the children of
3011 current or former public defenders, assistant public defenders,
3012 criminal conflict and civil regional counsel, and assistant
3013 criminal conflict and civil regional counsel are exempt from s.
3014 119.07(1) and s. 24(a), Art. I of the State Constitution.
3015 m. The home addresses, telephone numbers, dates of birth,
3016 and photographs of current or former investigators or inspectors
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Bill No. HB 487 (2023)
Amendment No. 1
3017 of the Department of Business and Professional Regulation; the
3018 names, home addresses, telephone numbers, dates of birth, and
3019 places of employment of the spouses and children of such current
3020 or former investigators and inspectors; and the names and
3021 locations of schools and day care facilities attended by the
3022 children of such current or former investigators and inspectors
3023 are exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3024 Constitution.
3025 n. The home addresses, telephone numbers, and dates of
3026 birth of county tax collectors; the names, home addresses,
3027 telephone numbers, dates of birth, and places of employment of
3028 the spouses and children of such tax collectors; and the names
3029 and locations of schools and day care facilities attended by the
3030 children of such tax collectors are exempt from s. 119. 07(1) and
3031 s. 24(a), Art. I of the State Constitution.
3032 o. The home addresses, telephone numbers, dates of birth,
3033 and photographs of current or former personnel of the Department
3034 of Health whose duties include, or result in, the determination
3035 or adjudication of eligibility for social security disability
3036 benefits, the investigation or prosecution of complaints filed
3037 against health care practitioners, or the inspection of health
3038 care practitioners or health care facilities licensed by the
3039 Department of Health; the names, home addresses, telephone
3040 numbers, dates of birth, and places of employment of the spouses
3041 and children of such personnel; and the names and locations of
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 487 (2023)
Amendment No. 1
3042 schools and day care facilities attended by the children of such
3043 personnel are exempt from s. 119.07(1) and s. 24(a), Art. I of
3044 the State Constitution.
3045 p. The home addresses, telephone numbers, dates of birth,
3046 and photographs of current or former impaired practitioner
3047 consultants who are retained by an agency or current or former
3048 employees of an impaired practitioner consultant whose duties
3049 result in a determination of a person's skill and safety to
3050 practice a licensed profession; the names, home addresses,
3051 telephone numbers, dates of birth, and places of employment of
3052 the spouses and children of such consultants or their employees;
3053 and the names and locations of schools and day care facilities
3054 attended by the children of such consultants or employees are
3055 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3056 Constitution.
3057 q. The home addresses, telephone numbers, dates of birth,
3058 and photographs of current or former emergency medical
3059 technicians or paramedics certified under chapter 401; the
3060 names, home addresses, telephone numbers, dates of birth, and
3061 places of employment of the spouses and children of such
3062 emergency medical technicians or paramedics; and the names and
3063 locations of schools and day care facilities attended by the
3064 children of such emergency medical technicians or paramedics are
3065 exempt from s. 119.07(1) and s. 24(a), Art. I of the State
3066 Constitution.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 487 (2023)
Amendment No. 1
3067 r. The home addresses, telephone numbers, dates of birth,
3068 and photographs of current or former personnel employed in an
3069 agency's office of inspector general or internal audit
3070 department whose duties include auditing or investi gating waste,
3071 fraud, abuse, theft, exploitation, or other activities that
3072 could lead to criminal prosecution or administrative discipline;
3073 the names, home addresses, telephone numbers, dates of birth,
3074 and places of employment of spouses and children of suc h
3075 personnel; and the names and locations of schools and day care
3076 facilities attended by the children of such personnel are exempt
3077 from s. 119.07(1) and s. 24(a), Art. I of the State
3078 Constitution.
3079 s. The home addresses, telephone numbers, dates of birth,
3080 and photographs of current or former directors, managers,
3081 supervisors, nurses, and clinical employees of an addiction
3082 treatment facility; the home addresses, telephone numbers,
3083 photographs, dates of birth, and places of employment of the
3084 spouses and children of such personnel; and the names and
3085 locations of schools and day care facilities attended by the
3086 children of such personnel are exempt from s. 119.07(1) and s.
3087 24(a), Art. I of the State Constitution. For purposes of this
3088 sub-subparagraph, the term "addiction treatment facility" means
3089 a county government, or agency thereof, that is licensed
3090 pursuant to s. 397.401 and provides substance abuse prevention,
3091 intervention, or clinical treatment, including any licensed
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 487 (2023)
Amendment No. 1
3092 service component described in s. 397.311(26).
3093 t. The home addresses, telephone numbers, dates of birth,
3094 and photographs of current or former directors, managers,
3095 supervisors, and clinical employees of a child advocacy center
3096 that meets the standards of s. 39.3035(2) and fulfills the
3097 screening requirement of s. 39.3035(3), and the members of a
3098 Child Protection Team as described in s. 39.303 whose duties
3099 include supporting the investigation of child abuse or sexual
3100 abuse, child abandonment, child neglect, and child exploitation
3101 or to provide services as part of a multidisciplinary case
3102 review team; the names, home addresses, telephone numbers,
3103 photographs, dates of birth, and places of employment of the
3104 spouses and children of such personnel and members; and the
3105 names and locations of schools and day care facilities attended
3106 by the children of such personnel and members are exempt from s.
3107 119.07(1) and s. 24(a), Art. I of the State Constitution.
3108 u. The home addresses, telephone numbers, places of
3109 employment, dates of birth, and photographs of current or former
3110 staff and domestic violence advocates, as defined in s.
3111 90.5036(1)(b), of domestic violence centers certified by the
3112 Department of Children and Families under chapter 39; the names,
3113 home addresses, telephone numbers, places of employment, dates
3114 of birth, and photographs of the spouses and children of such
3115 personnel; and the names and locations of schools and day care
3116 facilities attended by the children of such personnel are exempt
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 487 (2023)
Amendment No. 1
3117 from s. 119.07(1) and s. 24(a), Art. I of the State
3118 Constitution.
3119 3. An agency that is the custodian of the information
3120 specified in subparagraph 2. and that is not the employer of the
3121 officer, employee, justice, judge, or other person specified in
3122 subparagraph 2. must maintain the exempt status of that
3123 information only if the officer, employee, justice, judge, other
3124 person, or employing agency of the designated employee submits a
3125 written and notarized request for maintenance of the exemption
3126 to the custodial agency. The request must state under oath the
3127 statutory basis for the individual's exemption request and
3128 confirm the individual's status as a party eligible for exempt
3129 status.
3130 4.a. A county property appraiser, as defined in s.
3131 192.001(3), or a county tax collector, as defined in s.
3132 192.001(4), who receives a written and notarized request for
3133 maintenance of the exemption pursuant to subparagraph 3. must
3134 comply by removing the name of the individual with exempt status
3135 and the instrument number or Official Records book and page
3136 number identifying the property with the exempt status from all
3137 publicly available records maintained by the property appraiser
3138 or tax collector. For written requests received on or before
3139 July 1, 2021, a county property appraiser or county tax
3140 collector must comply with this sub-subparagraph by October 1,
3141 2021. A county property appraiser or county tax collector may
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Amendment No. 1
3142 not remove the street address, legal description, or other
3143 information identifying real property within the agency's
3144 records so long as a name or personal information otherwise
3145 exempt from inspection and copying pursuant to this section are
3146 not associated with the property or otherwise displayed in the
3147 public records of the agency.
3148 b. Any information restricted from public display,
3149 inspection, or copying under sub-subparagraph a. must be
3150 provided to the individual whose information was removed.
3151 5. An officer, an employee, a justice, a judge, or other
3152 person specified in subparagraph 2. may submit a written request
3153 for the release of his or her exempt information to the
3154 custodial agency. The written request must be notarized and must
3155 specify the information to be released and the party authorized
3156 to receive the information. Upon receipt of the written request,
3157 the custodial agency must release the specified information to
3158 the party authorized to receive such information.
3159 6. The exemptions in this paragraph apply to information
3160 held by an agency before, on, or after the effective date of the
3161 exemption.
3162 7. Information made exempt under this paragraph may be
3163 disclosed pursuant to s. 28.2221 to a title insurer authorized
3164 pursuant to s. 624.401 and its affiliates as defined in s.
3165 624.10; a title insurance agent or title insurance agency as
3166 these terms are defined in s. 626.841 s. 626.841(1) or (2),
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Bill No. HB 487 (2023)
Amendment No. 1
3167 respectively; or an attorney duly admitted to practice law in
3168 this state and in good standing with The Florida Bar.
3169 8. The exempt status of a home address contained in the
3170 Official Records is maintained only during the period when a
3171 protected party resides at the dwelling location. Upon
3172 conveyance of real property after October 1, 2021, and when such
3173 real property no longer constitutes a protected party's home
3174 address as defined in sub-subparagraph 1.a., the protected party
3175 must submit a written request to release the removed information
3176 to the county recorder. The written request to release the
3177 removed information must be notarized, must confirm that a
3178 protected party's request for release is pursuant to a
3179 conveyance of his or her dwelling location, and must specify the
3180 Official Records book and page, instrument number, or clerk's
3181 file number for each document containing the information to be
3182 released.
3183 9. Upon the death of a protected party as verified by a
3184 certified copy of a death certificate or court order, any party
3185 can request the county recorder to release a protected
3186 decedent's removed information unless there is a related request
3187 on file with the county recorder for continued removal of the
3188 decedent's information or unless such removal is otherwise
3189 prohibited by statute or by court order. The written request to
3190 release the removed information upon the death of a protected
3191 party must attach the certified copy of a death certificate or
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Amendment No. 1
3192 court order and must be notarized, must confirm the request for
3193 release is due to the death of a protected party, and must
3194 specify the Official Records book and page number, instrument
3195 number, or clerk's file number for each document containing the
3196 information to be released. A fee may not be charged for the
3197 release of any document pursuant to such request.
3198 10. This paragraph is subject to the Open Government
3199 Sunset Review Act in accordance with s. 119.15 and shall stand
3200 repealed on October 2, 2024, unless reviewed and saved from
3201 repeal through reenactment by the Legislature.
3202 Section 70. Subsection (4) of section 631.152, Florida
3203 Statutes, is amended to read:
3204 631.152 Conduct of delinquency proceeding; foreign
3205 insurers.—
3206 (4) Section 631.141(10)(b) 631.141(9)(b) applies to
3207 ancillary delinquency proceedings opened for the purpose of
3208 obtaining records necessary to adjudicate the covered claims of
3209 Florida policyholders.
3210 Section 71. Paragraph (b) of subsection (3) of section
3211 631.398, Florida Statutes, is amended to read:
3212 631.398 Prevention of insolvencies.—To aid in the
3213 detection and prevention of insurer insolvencies or impairments:
3214 (3)
3215 (b) For an insolvency involving a domestic property
3216 insurer, the department shall:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 487 (2023)
Amendment No. 1
3217 1. Begin an analysis of the history and causes of the
3218 insolvency once the department is appointed by the court as
3219 receiver.
3220 2. Submit an initial report analyzing the history and
3221 causes of the insolvency to the Governor, the President of the
3222 Senate, the Speaker of the House of Representatives, and the
3223 office. The initial report must be submitted no later than 4
3224 months after the department is appointed as receiver. The
3225 initial report shall be updated at least annually until the
3226 submission of the final report. The report may not be used as
3227 evidence in any proceeding brought by the department or others
3228 to recover assets on behalf of the receivership estate as part
3229 of its duties under s. 631.141(9) s. 631.141(8). The submission
3230 of a report under this subparagraph shall not be considered a
3231 waiver of any evidentiary privilege the department may assert
3232 under state or federal law.
3233 3. Provide a special report to the Governor, the President
3234 of the Senate, the Speaker of the House of Representatives, and
3235 the office, within 10 days upon identifying any condition or
3236 practice that may lead to insolvency in the property insurance
3237 marketplace.
3238 4. Submit a final report analyzing the history and causes
3239 of the insolvency and the review of the Office of Insurance
3240 Regulation's regulatory oversight of the insurer to the
3241 Governor, the President of the Senate, the Speaker of the House
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Amendment No. 1
3242 of Representatives, and the office within 30 days of the
3243 conclusion of the insolvency proceeding.
3244 5. Review the Office of Insurance Regulation's regulatory
3245 oversight of the insurer.
3246 Section 72. Subsection (2) of section 903.09, Florida
3247 Statutes, is amended to read:
3248 903.09 Justification of sureties.—
3249 (2) A bond agent, as defined in s. 648.25 s. 648.25(2),
3250 shall justify her or his suretyship by attaching a copy of the
3251 power of attorney issued by the company to the bond or by
3252 attaching to the bond United States currency, a United States
3253 postal money order, or a cashier's check in the amount of the
3254 bond; but the United States currency, United States postal money
3255 order, or cashier's check cannot be used to secure more than one
3256 bond. Nothing herein shall prohibit two or more qualified
3257 sureties from each posting any portion of a bond amount, and
3258 being liable for only that amount, so long as the total posted
3259 by all cosureties is equal to the amount of bond required.
3260 Section 73. (1) The following rule is ratified for the
3261 sole and exclusive purpose of satisfying any condition on the
3262 effectiveness imposed under s. 120.541(3), Florida Statutes:
3263 Rule 69L-7.020, Florida Administrative Code, titled "Florida
3264 Workers' Compensation Health Care Provider Reimbursement Manual"
3265 as filed for adoption with the Department of State pursuant to
3266 the certification package dated October 22, 2021.
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Bill No. HB 487 (2023)
Amendment No. 1
3267 (2) This section serves no other purpose and may not be
3268 codified in the Florida Statutes. After this section becomes
3269 law, its enactment and effective dates shall be noted in the
3270 Florida Administrative Code, the Florida Administrative
3271 Register, or both, as appropriate. This section does not alter
3272 rulemaking additions delegated by prior law, does not constitute
3273 legislative preemption of or exception to any provision of law
3274 governing adoption or enforcement of the rule cited, and is
3275 intended to preserve the status of any cited rule as a rule
3276 under chapter 120, Florida Statutes. This section does not cure
3277 any rulemaking defect or preempt any challenge base d on a lack
3278 of authority or a violation of the legal requirements governing
3279 the adoption of any rule cited.
3280 (3) This section takes effect July 1, 2023.
3281 Section 74. Except as otherwise expressly provided in this
3282 act, this act shall take effect upon becoming a law.
3283
3284
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HB 743
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 743 Estoppel Letters
SPONSOR(S):Fabricio
TIED BILLS: IDEN./SIM. BILLS: SB 708
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Fletcher Lloyd
2) Civil Justice Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
A mortgagor selling collateralized property, refinancing a mortgage, or paying off a mortgage may
request an estoppel letter from the mortgagee or mortgage servicer (lender). Florida law currently
defines an “estoppel letter” as a statement of the amount of the unpaid balance of a loan secured by
a mortgage, including principal, interest, and any other charges due under or secured by the
mortgage, and the interest on a per-day basis for the unpaid balance.
In some estoppel letters, lenders expressly reserve the right to change the amounts listed and
disclaim the reliance of others on the letter. Further, if after sending an estoppel letter the lender
determines the mortgagor owes additional funds than those stated in the letter, some lenders return
payments made in reliance on the letter. Until the discrepancy in amounts owed is resolved, interest
and potential fees continue to accrue and title to the property remains unclear.
Among other things, the bill:
Reduces from 14 days to 10 days the timeframe within which a lender must send a requested
estoppel letter;
Prohibits a lender from qualifying, reserving the right to change, or conditioning or disclaiming
the reliance of others on information provided in an estoppel letter;
Allows a lender to send a corrected estoppel letter to supersede prior estoppel letters if the
corrected letter is received by 3 p.m. at least one business day before any payment is made in
reliance on a previous estoppel letter;
Prohibits a lender from denying the accuracy of an estoppel letter against anyone who relied
on it, but permits recovery of the sum owed from the mortgagor;
Requires a lender to accept payment received in reliance on an estoppel letter and promptly
apply such payment to the unpaid balance of the loan;
Requires a lender to execute and record an instrument confirming release of the mortgage in
the official records of the proper county, and send the recorded instrument to the mortgagor,
within 60 days of receiving full payment of the loan secured by the mortgage; and
Revises the definition of “estoppel letter.”
The bill has no fiscal impact on state or local governments and has an indeterminate fiscal impact on
the private sector.
The bill provides an effective date of October 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0743.IBS
DATE: 3/20/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Florida law currently defines an “estoppel letter” as a statement of the amount of the unpaid
balance of a loan secured by a mortgage, including principal, interest, and any other charges due
under or secured by the mortgage, and the interest on a per-day basis for the unpaid balance.1 An
estoppel letter is often requested when selling property that is collateral for a mortgage,
refinancing a mortgage, or paying off a mortgage. The request may be made by the mortgagor,2
the record title owner of the property, a fiduciary or trustee lawfully acting on behalf of the record
title owner, or any other person lawfully authorized to act on behalf of the mortgagor or record title
owner.3
Depending on who requests the estoppel letter, the following information must be included:
If the requesting party is the mortgagor or someone lawfully authorized to act on behalf of
the mortgagor, the estoppel letter must include an itemization of the principal, interest, and
any other charges properly due under or secured by the mortgage and interest on a per-
day basis for the unpaid balance.4
If the requesting party is the record title owner of the property or someone lawfully
authorized to act on behalf of the record title owner, the estoppel letter may include the
itemization of the information required above, but at a minimum must include the total
unpaid balance due under or secured by the mortgage on a per-day basis.5
Where the amount of money owed on a mortgage loan has been fully paid, the mortgagee or
mortgage servicer (lender) must execute in writing an instrument confirming release of the
mortgage, have the instrument acknowledged, and record the executed, acknowledged instrument
in the official records of the property county.6 Within 60 days of receiving full payment of the
mortgage loan, the lender must send the recorded release to the person who made the full
payment.7 In the case of a civil action arising out of this requirement, the prevailing party is entitled
to attorney fees and costs.8
Some estoppel letters include language reserving the lender’s right to change the amounts listed
in the estoppel letter and disclaiming the reliance of others on the information included in the
estoppel letter. If the lender determines after sending the estoppel letter that the mortgagor owes
additional money, some lenders return the funds received from the closing which were sent i n
reliance on the amount stated in the estoppel letter. This results in the continued accrual of
interest and potential fees during the time period it takes to resolve the discrepancy in amount
owed. Further, prior to resolution of the discrepancy, there is not clear title to the property.
Effect of the Bill
1 S. 701.041(1)(a), F.S.
2 Mortgagor means “[s]omeone who mortgages property; the mortgage-debtor or borrower.” Black’s Law Dictionary (11th
ed. 2019).
3 S. 701.04(1), F.S.
4 S. 704.04(1)(a), F.S.
5 S. 704.04(1)(b), F.S.
6 S. 704.04(2), F.S.
7 Id.
8 Id.
STORAGE NAME: h0743.IBS PAGE: 2
DATE: 3/20/2023
The bill reduces from 14 days to 10 days the timeframe within which a lender must send a
requested estoppel letter setting forth the unpaid balance of the mortgage loan. If the request for
an estoppel letter is made by a person other than the mortgagor, the request must include a copy
of the instrument showing such person’s title in the property or other lawful authorization, and the
lender must notify the mortgagor of the request.
The bill standardizes the information that must be contained in the estoppel letter, regardless of
whether the requestor is the mortgagor, a record title owner, or a person lawfully authorized to act
on behalf of the mortgagor or record title owner. The letter must at a minimum include:
The unpaid balance of the loan secured by the mortgage as of the date specified in the
letter, including an itemization of the principal, interest, and any other charges comprising
the unpaid balance; and
Interest accruing on a per-day basis for the unpaid balance, if applicable.
The bill prohibits the lender from qualifying, reserving the right to change, or conditioning or
disclaiming the reliance of others on the information provided in an estoppel letter, and any
attempt to do so is void and unenforceable. However, this prohibition does not apply to mortgages
for which a notice of lis pendens in a foreclosure action or a suggestion of bankruptcy has been
properly filed and recorded.
If the lender determines that any of the information in the estoppel letter was inaccurate, the
lender may send a corrected estoppel letter. The corrected estoppel letter will supersede any prior
estoppel letter so long as the corrected estoppel is received by 3 p.m. at least one business day
before payment is made in reliance on the estoppel letter.
If any of the information in the estoppel letter was inaccurate and there was not a timely corrected
estoppel letter, the bill prohibits the lender from denying the accuracy of the estoppel letter as
against any person who relied on it. However, this does not affect the lender’s right to recover any
sum not included in the estoppel letter, nor does it limit any claim or defense to recovery that the
borrower may have.
If a payment is received at the location and in the manner specified by the lender, the lender must
accept and may not return any payment received in reliance on the estoppel letter, and the lender
must promptly apply such payment to the unpaid balance of the mortgage loan. This will prevent
accrual of interest and potential fees while the lender and the borrower work through any
discrepancy as to the amount owed.
The bill specifies the process for requesting an estoppel letter. A written request for a mortgage
payoff letter must be sent to the lender by first-class mail, postage prepaid; by common carrier
delivery service; or by e-mail, facsimile, or other electronic means at the address made available
by the mortgage lender or servicer for such purpose, or through an automated system provided by
the lender for requesting an estoppel letter. The request is considered received:
Five days after the request sent by first-class mail is deposited with the United States
Postal Service;
The day the request is delivered by a common carrier delivery service; or
The day the request is sent by e-mail, facsimile, or other electronic means or through an
automated system provided by the lender for requesting an estoppel letter.
If any of the foregoing days fall on a Saturday, Sunday, or holiday, the request for an estoppel
letter is considered timely received by the lender on the next business day.
STORAGE NAME: h0743.IBS PAGE: 3
DATE: 3/20/2023
The bill also specifies the process by which an estoppel letter may be sent. The lender or servicer
must send an estoppel letter by first-class mail; by common carrier delivery service; or by e-mail,
facsimile, or other electronic means, as directed in the written request, or through an automated
system provided by the lender for this purpose. However, the lender is not required to pay for a
common carrier delivery service. If the 10-day period after a written request is received by the
lender ends on a Saturday, Sunday, or holiday, the estoppel letter is considered timely if it is sent
by the close of business on the next business day.
The bill requires the lender, within 60 days after the mortgage loan has been fully paid or paid
pursuant to the estoppel letter, to execute, have duly entered in the official records of the proper
county, and send to the mortgagor or record title owner an instrument acknowledging release of
the mortgage (i.e., a satisfaction of mortgage or a release of mortgage). The prevailing party in a
civil action brought against the mortgage lender or servicer to enforce this requirement is entitled
to reasonable attorney fees and costs. The recorded release of the mortgage does not relieve the
mortgagor, or the mortgagor’s successors or assigns, from any personal liability on the mortgage
loan. In the event of a discrepancy in the amount owed on the mortgage loan, this provision will
ensure clear title to the property while maintaining the mortgage lender’s or servicer’s ability to
recover sums properly owed under the mortgage loan.
The bill conforms the definition of “estoppel letter” in s. 701.041, F.S., to the estoppel letter
requirements in s. 701.04, F.S.
The bill provides an effective date of October 1, 2023.
B. SECTION DIRECTORY:
Section 1. Amends s. 701.04, F.S., relating to cancellation of mortgages, liens, and
judgments.
Section 2. Amends s. 701.041, F.S., relating to title insurer; mortgage release certificate.
Section 3. Provides legislative findings.
Section 4. Provides the bill applies to all mortgages, and all loans secured by such
mortgages, existing as of, or entered into on or after, October 1, 2023.
Section 5. Provides an effective date of October 1, 2023.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
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1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill has an indeterminate impact on the private sector. The bill may lead to smoother real
estate closings to the extent that lenders provide more accurate information in estoppel letters.
In the event of a discrepancy in the amount owed on the mortgage loan, the bill will prevent
accrual of interest and potential fees while the lender and the borrower work through the issue.
Additionally, the bill will ensure clear title to the property while maintaining the lender’s ability to
recover sums properly owed under the mortgage loan.
D. FISCAL COMMENTS:
None.
III. 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:
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 743 2023
1 A bill to be entitled
2 An act relating to estoppel letters; amending s.
3 701.04, F.S.; revising the timeframe within which a
4 mortgagee or mortgage servicer must send or cause to
5 be sent an estoppel letter containing specified
6 information; revising the circumstances under which a
7 copy of the instrument showing title in the property
8 or other lawful authorization must be included in a
9 request for an estoppel letter; requiring notice to
10 the mortgagor of a request for an estoppel letter
11 under certain circumstances; revising requirements for
12 an estoppel letter; prohibiting certain actions by the
13 mortgagee or mortgage servicer; authorizing the
14 mortgagee or mortgage servicer to send a corrected
15 estoppel letter under certain circumstances; requiring
16 a mortgagee or mortgage servicer to provide a copy of
17 a corrected estoppel letter to a mortgagor under
18 certain circumstances; providing that a corrected
19 estoppel letter supersedes any previous estoppel
20 letter under certain circumstances; prohibiting the
21 mortgagee or mortgage servicer from denying the
22 accuracy of certain information provided in an
23 estoppel letter under certain circumstances; providing
24 construction; prohibiting payments received pursuant
25 to an estoppel letter from being returned and
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26 requiring such payments to be promptly applied to any
27 unpaid balance of the loan properly due under or
28 secured by a mortgage; providing methods for sending a
29 written request for an estoppel letter and for sending
30 an estoppel letter; providing that the mortgagee or
31 mortgage servicer is not required to pay for a common
32 carrier delivery service; requiring the mortgagee or
33 mortgage servicer to take certain actions within a
34 specified time after the unpaid balance of a loan
35 properly secured by a mortgage has been fully paid or
36 paid pursuant to an estoppel letter; authorizing
37 reasonable attorney fees and costs for specified
38 parties in certain civil actions; providing that
39 certain persons may still be personally liable for a
40 loan or other obligation after the recording of a
41 release of a mortgage; conforming provisions to
42 changes made by the act; amending s. 701.041, F.S.;
43 revising the definition of the term "estoppel letter";
44 conforming provisions to changes made by the act;
45 providing legislative findings; providing for
46 retroactive applicability; providing an effective
47 date.
48
49 Be It Enacted by the Legislature of the State of Florida:
50
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51 Section 1. Section 701.04, Florida Statutes, is amended to
52 read:
53 701.04 Cancellation of mortgages, liens, and judgments. —
54 (1)(a) Within 10 14 days after receipt of the written
55 request of a mortgagor, a record title owner of the property, a
56 fiduciary or trustee lawfully acting on behalf of a record title
57 owner, or any other person lawfully authorized to act on behalf
58 of a mortgagor or record title owner of the property, the
59 mortgagee holder of a mortgage shall deliver or mortgage cause
60 the servicer shall send or cause to be sent of the mortgage to
61 deliver to the person making the request at a place designated
62 in the written request an estoppel letter setting forth the
63 unpaid balance of the loan secured by the mortgage. If the
64 written request is made by a person other than the mortgagor,
65 the request must include a copy of the instrument showing such
66 person's title in the property or other lawful authorization,
67 and the mortgagee or mortgage servicer must notify the mortgagor
68 of the request.
69 (a) If the mortgagor, or any person lawfully authorized to
70 act on behalf of the mortgagor, makes the request, the estoppel
71 letter must include an itemization of the principal, interest,
72 and any other charges properly due under or secured by the
73 mortgage and interest on a per-day basis for the unpaid balance.
74 (b) If a record title owner of the property, or any person
75 lawfully authorized to act on behalf of a mortgagor or record
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76 title owner of the property, makes the request:
77 1. The request must include a copy of the instrument
78 showing title in the property or lawful authorization.
79 2. The estoppel letter may include the itemization of
80 information required under paragraph (a), but must at a minimum
81 include:
82 1. The total unpaid balance of the loan due under or
83 secured by the mortgage as of the date specified in the estoppel
84 letter, including an itemization of the principal, interest, and
85 any other charges comprising the unpaid balance; and
86 2. Interest accruing on a per-day basis for the unpaid
87 balance from and after the date specified in the estoppel
88 letter, if applicable.
89 (c)1. Except for mortgages for which a notice of lis
90 pendens in a foreclosure action or a suggestion of bankruptcy
91 has been properly filed and recorded, the mortgagee or mortgage
92 servicer may not qualify, reserve the right to change, or
93 condition or disclaim the reliance of others on the information
94 provided in an estoppel letter under paragraph (b), and any
95 attempt to do so is void and unenforceable. However, if the
96 mortgagee or mortgage servicer determines that any of the
97 information provided in the estoppel letter under paragraph (b)
98 was inaccurate, the mortgagee or mortgage servicer may send a
99 corrected estoppel letter to the person who requested the
100 estoppel letter in the same manner as used to respond to the
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101 original written request. If the original written request is
102 made by a person other than the mortgagor, the mortgagee or
103 mortgage servicer must also provide a copy of any corrected
104 estoppel letter to the mortgagor.
105 2. If the person who requested the original estoppel
106 letter under paragraph (a) receives a corrected estoppel letter
107 by 3 p.m. in such person's time zone at least 1 business day
108 before a payment is issued in reliance on the previous estoppel
109 letter, the corrected estoppel letter supersedes all prior
110 estoppel letters.
111 3. If any of the information provided in the estoppel
112 letter under paragraph (b) was inaccurate, but the person who
113 requested the estoppel letter did not timely receive a corrected
114 estoppel letter as provided in subparagraph 2., the mortgagee or
115 mortgage servicer may not deny the accuracy of such information
116 as against any person who relied on it. This subparagraph does
117 not affect the right of a mortgagee to recover any sum that it
118 did not include in an estoppel letter from any person liable for
119 payment of the loan or other obligations secured by the
120 mortgage, nor does it limit any claim or defense to recovery
121 which such person may have at law or in equity on a per-day
122 basis.
123 (d)3. The mortgagee or mortgage servicer of the mortgagee
124 acting in accordance with a request in substantial compliance
125 with this subsection paragraph is expressly discharged from any
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126 obligation or liability to any person on account of the release
127 of the requested information, other than the obligation to
128 comply with the terms of the estoppel letter.
129 (e) If a payment is received at the location and in the
130 manner specified by the mortgagee or mortgage servicer, the
131 mortgagee or mortgage servicer must accept and may not return
132 any payment received in reliance on an estoppel letter and must
133 promptly apply such payment to the unpaid balance of the loan
134 properly due under or secured by the mortgage.
135 (f)1. A written request for an estoppel letter under
136 paragraph (a) must be sent to the mortgagee or mortgage servicer
137 by first-class mail, postage prepaid; by common carrier delivery
138 service; or by e-mail, facsimile, or other electronic means at
139 the address made available by the mortgagee or mortgage servicer
140 for such purpose or through an automated system provided by the
141 mortgagee or mortgage servicer for requesting an estoppel
142 letter. The written request is considered received by the
143 mortgagee or mortgage servicer:
144 a. Five business days after the request sent by first-
145 class mail is deposited with the United States Postal Service;
146 b. The day the request is delivered by a common carrier
147 delivery service; or
148 c. The day the request is sent by e-mail, facsimile, or
149 other electronic means or through an automated system provided
150 by the mortgagee or mortgage servicer for requesting an estoppel
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151 letter.
152
153 If any of the days in sub-subparagraph a., sub-subparagraph b.,
154 or sub-subparagraph c. fall on a Saturday, Sunday, or holiday
155 specified in s. 110.117(1) or the laws of the United States, the
156 request for an estoppel letter is considered timely received by
157 the mortgagee or mortgage servicer on the next business day.
158 2. The mortgagee or mortgage servicer must send an
159 estoppel letter by first-class mail, postage prepaid; by common
160 carrier delivery service; or by e-mail, facsimile, or other
161 electronic means, as directed in the written request, or through
162 an automated system provided by the mortgagee or mortgage
163 servicer for this purpose. However, the mortgagee or mortgage
164 servicer is not required to pay for a common carrier delivery
165 service. If the 10-day period after a written request is
166 received by the mortgagee or mortgage servicer ends on a
167 Saturday, Sunday, or holiday specified in s. 110.117(1) or the
168 laws of the United States, the estoppel letter is considered
169 timely if it is sent by the close of business on the next
170 business day.
171 (g)(c) Notwithstanding s. 655.059, a mortgagee or mortgage
172 servicer mortgage holder may provide the financial information
173 required under this subsection to a person authorized under this
174 subsection to request the financial information notwithstanding
175 s. 655.059.
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176 (2)(a) Within 60 days after the unpaid balance of a loan
177 secured by a mortgage has been fully paid or paid pursuant to an
178 estoppel letter under subsection (1), whichever is earlier, the
179 mortgagee or mortgage servicer shall execute in writing an
180 instrument acknowledging release of the mortgage; have the
181 instrument acknowledged, or proven, and send it or cause it to
182 be sent for recording in the official records of the proper
183 county; and send or cause to be sent the recorded release to the
184 mortgagor or record title owner of the property. The prevailing
185 party in a civil action brought against the mortgagee or
186 mortgage servicer to enforce the requirements of this paragraph
187 is entitled to reasonable attorney fees and costs.
188 (b) The recorded release of the mortgage does not relieve
189 the mortgagor, or the mortgagor's successors or assigns, from
190 any personal liability on the loan or other obligations
191 previously secured by the mortgage.
192 (3)(2) Within 60 days after the unpaid balance Whenever
193 the amount of money due on a any mortgage, lien, or judgment has
194 been fully paid to the person or party entitled to the payment
195 thereof, the mortgagee, creditor, or assignee, or the attorney
196 of record in the case of a judgment, to whom the payment was
197 made, shall execute in writing an instrument acknowledging
198 satisfaction of the mortgage, lien, or judgment; and have the
199 instrument acknowledged, or proven, and send it or cause it to
200 be sent for recording duly entered in the official records of
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201 the proper county; and. Within 60 days after the date of receipt
202 of the full payment of the mortgage, lien, or judgment, the
203 person required to acknowledge satisfaction of the mortgage,
204 lien, or judgment shall send or cause to be sent the recorded
205 satisfaction to the person who has made the full payment. In the
206 case of a civil action arising out of this section, The
207 prevailing party in a civil action brought against the creditor
208 or assignee, or the attorney of record in the case of a
209 judgment, to enforce the requirements of this subsection is
210 entitled to reasonable attorney fees and costs.
211 (4)(3) When Whenever a writ of execution has been issued,
212 docketed, and indexed with a sheriff and the judgment upon which
213 it was issued has been fully paid, it is the responsibility of
214 the person party receiving payment to request, in writing,
215 addressed to the sheriff, return of the writ of execution as
216 fully satisfied.
217 Section 2. Paragraph (a) of subsection (1) and subsection
218 (2) of section 701.041, Florida Statutes, are amended to read:
219 701.041 Title insurer; mortgage release certificate. —
220 (1) DEFINITIONS.—For purposes of this section:
221 (a) "Estoppel letter" means a statement containing, at a
222 minimum, the information required in s. 701.04(1)(b) of the
223 amount of:
224 1. The unpaid balance of a loan secured by a mortgage,
225 including principal, interest, and any other charges properly
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226 due under or secured by the mortgage.
227 2. Interest on a per-day basis for the unpaid balance.
228 (2) CERTIFICATE OF RELEASE.—An officer or duly appointed
229 agent of a title insurer may, on behalf of a mortgagor or a
230 person who acquired from the mortgagor title to all or a part of
231 the property described in a mortgage, execute a certificate of
232 release that complies with the requirements of this section and
233 record the certificate of release in the real property records
234 of each county in which the mortgage is recorded if a
235 satisfaction or release of the mortgage has not been executed
236 and recorded after the date payment in full of the loan properly
237 due under or secured by the mortgage was made in accordance with
238 an estoppel letter a payoff statement furnished by the mortgagee
239 or the mortgage servicer.
240 Section 3. The Legislature finds that the timeliness and
241 accuracy of an estoppel letter is critical because the parties
242 to a real estate transaction must rely on the estoppel letter to
243 establish the loan payoff amount necessary to release the
244 mortgage, which in turn will allow the owner to confer clean
245 title to a buyer or to refinance the property. The Legislature
246 further finds that estoppel letters increasingly contain
247 conditional language disclaiming the ability of an owner to rely
248 on the stated loan payoff amounts, extending even to the return
249 of such payments submitted by owners. These practices create
250 unnecessary delays in the efficient operation of this state's
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251 real estate market, which is a vital economic contributor to
252 this state, and impose needless costs and burdens on property
253 owners and buyers. In addition, the Legislature finds that real
254 estate lending, mortgages, real estate transactions, and
255 estoppel letters are extensively regulated under both Florida
256 and federal law. The Legislature finds and determines that this
257 act makes changes to state law which appropriately balance the
258 parties' interests, are reasonable and necessary to serve and
259 achieve an important state interest, are necessary for the
260 prosperity and welfare of the state and its property owners and
261 inhabitants, and must be applied to existing mortgages in order
262 to provide effective relief.
263 Section 4. This act applies to all mortgages, and all
264 loans secured by such mortgages, existing as of, or entered into
265 on or after, October 1, 2023.
266 Section 5. This act shall take effect October 1, 2023.
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HB 901
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 901 Secured Transactions
SPONSOR(S): Fabricio
TIED BILLS: IDEN./SIM. BILLS: SB 978
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice Subcommittee 18 Y, 0 N Mawn Jones
2) Insurance & Banking Subcommittee Fletcher Lloyd
3) Judiciary Committee
SUMMARY ANALYSIS
A security interest arises when, in exchange for a loan, a borrower pledges as collateral in a security
agreement specified assets he or she owns that the lender may take if the borrower defaults on the loan. A
security interest also assures the lender that, if the borrower enters bankruptcy, the lender may be able to
recover the loan’s value by taking the asset. Under Florida law, a description of an asset, whether or not the
description is specific, is sufficient to pledge the asset under a security agreement if it reasonably identifies
what is described. However, a description of assets in general terms, such as “all the debtor’s assets,” “all the
debtor’s personal property,” or similar phrasing, does not sufficiently identify the collateral for purposes of a
security interest.
Florida Law protects certain assets from legal process so that they remain out of a creditor’s reach, including:
Funds held in individual retirement accounts (“IRA”) and other tax-exempt accounts.
The cash surrender value of a life insurance policy and the proceeds of an annuity contract.
Funds held in qualified tuition programs and medical, Coverdell education, and hurricane savings
accounts.
Disability income benefits.
A deceased person’s wages and unemployment compensation benefits.
Homestead property and certain personal property items.
Social security benefits; unemployment compensation, or public assistance benefits; veterans’ benefits;
alimony, support, or separate maintenance; and stock or pension plans under specified circumstances.
Historically, exempt assets not specifically pledged in a security agreement remained exempt from a creditor’s
reach. However, a recent Eleventh Circuit Court of Appeals decision broke with this rule by holding that a
security agreement granting a security interest in “all assets and rights of the Pledgor” pledged the debtor’s
IRA as collateral for a loan even though the IRA was not specifically identified in the agreement. This decision
may have significant federal tax consequences for Floridians, as the use of certain tax-exempt accounts as
collateral for a loan is considered distribution of the funds to the owner, who then owes federal income tax on
the money and may owe a tax penalty for early distribution.
HB 901 provides that a general description only by type of collateral is an insufficient description to pledge
certain statutorily-exempt assets for the purposes of a security agreement.
The bill does not appear to have a fiscal impact on state or local governments.
The bill provides an effective date of upon becoming a law.
This docum ent 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
Security Interests
A security interest arises when, in exchange for a loan, a borrower pledges as collateral 1 in a security
agreement2 specified assets owned by the borrower that the lender may take if the borrower defaults
on the loan.3 A security interest also assures the lender that, if the borrower enters bankruptcy, the
lender may be able to recover the loan’s value by taking possession of the pledged assets.4
Under Florida law, a description of personal or real property, whether or not it is specific, is sufficient for
the purposes of a security agreement if it reasonably identifies what is described. 5 An effective
description of collateral pledged in a security agreement identifies the asset by:
Specific listing;
Category;
Type of collateral;
Quantity;
Computational or allocational formula or procedure; or
Any method under which the collateral’s identity is objectively determinable.6
However, a general description of collateral as “all the debtor’s assets,” “all the debtor’s personal
property,” or similar phraseology does not sufficiently identify the collateral for purposes of creating a
security interest.7 Further, a description only by type of collateral is an insufficient description of:
A commercial tort claim;
In a consumer transaction, consumer goods, a security entitlement, a securities account, or a
commodity account; or
An account consisting of a right to payment of a monetary obligation for the sale of real property
that is the debtor’s homestead under Florida law. 8
Asset Exemptions
Florida law protects certain assets from legal process so that they generally remain out of a creditor’s
reach, including:
Funds held in an individual retirement account (“IRA”) and other tax-exempt accounts.9
A life insurance policy’s proceeds.10
A life insurance policy’s cash surrender value.11
An annuity contract’s proceeds.12
Funds held in qualified tuition programs, medical savings accounts, Coverdell education
accounts, and hurricane savings accounts.13
1 “Collateral” means the property subject to a security interest. The term includes proceeds to which a security interest attac hes;
accounts, chattel paper, payment intangibles, and promissory notes that have been sold; and goods that are the subject of
consignment. S. 679.1021(1)(l), F.S.
2 “Security agreement” means an agreement that creates or provides for a security interest. S. 679.1021(1)(uuu), F.S.
3 Legal Information Institute, Secured Transactions, https://www.law.cornell.edu/wex/secured_transactions (last visited March 9, 2023).
4 Id.
5 S. 679.1081(1), F.S.
6 S. 679.1081(2), F.S.
7 S. 679.1081(3), F.S.
8 S. 679.1081(5), F.S.
9 S. 222.21, F.S.
10 S. 222.13, F.S.
11 S. 222.14, F.S.
12 Id.
13 S. 222.22, F.S.
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Disability income benefits.14
A deceased person’s wages, travel expenses, and reemployment assistance or unemployment
compensation payments.15
Homestead property.16
Certain personal property items.17
A debtor’s interest in a motor vehicle, up to $1,000 in value, and any professionally prescribed
health aides.18
Social security benefits; unemployment compensation, or public assistance benefits; veterans’
benefits; alimony, support, or separate maintenance; and stock or pension plans under
specified circumstances.19
The purpose behind such exemptions is to prevent a debtor from being left destitute, and therefore
unable to participate productively in society, or from being unable to meet specified medical,
educational, housing, and other needs, after defaulting on a loan or owing on a judgment. 20 Historically,
exempt assets have remained exempt from a creditor’s reach unless specifically pledged as collateral
in a security agreement.21
Recent Case Law
In Kearney Constr. Co., LLC v. Travelers Casualty & Surety Co. of America, the federal Eleventh Circuit
Court of Appeals broke with the historic tradition of maintaining asset exemptions unless the asset is
specifically pledged.22 In Kearney, the debtor obtained a line of credit and pledged the following
collateral in the security agreement:
[A]ll assets and rights of the Pledgor, wherever located, whether now owned or hereafter
acquired or arising, and all proceeds and products thereof, all goods (including
inventory, equipment and any accessories thereto), instruments (including promissory
notes)[,] documents, accounts, chattel paper, deposit accounts, letters of credit, rights,
securities and all other investment property, supporting obligation[s], and contract or
contract rights or rights to the payment of money, insurance claims, and proceeds, and
general intangibles.23
The Court held that this language was an “unambiguous pledge” of “all assets and rights” of the debtor,
including the debtor’s IRA, even though the IRA was not specifically identified in the agreement. 24
Practically speaking, the Kearney decision makes it possible for a borrower to inadvertently pledge as
collateral for a security agreement an asset historically exempt from the reach of creditors under Florida
law.25 This may affect Florida consumers with security agreements containing general language similar
to the language at issue in Kearney.
14 S. 222.18, F.S.
15 Ss. 225.15 and 225.16, F.S.
16
Ss. 222.01-222.05, F.S.; Art. X, s. 4, Fla. Const.
17 S. 222.061, F.S.
18 S. 222.25, F.S.
19 Ss. 222.201 and 222.21(1), F.S.
20 National Bankruptcy Review Commission, Property Exemptions, https://govinfo.library.unt.edu/nbrc/report/05ccons.html (last visited
March 9, 2023).
21 Real Property, Probate, and Trust Law Section of the Florida Bar (“RPPTL”), White Paper (Jan. 26, 2021); see, e.g., Havoco of Am.
Ltd. v. Hill, 790 So. 2d 1018 (Fla. 2001); Connor v. Seaside Nat’l Bank , 135 So. 3d 508 (Fla. 5th DCA 2014); Killian v. Lawson, 387 So.
2d 960 (Fla. 1980).
22 See 795 Fed. Appx. 671 (11th Cir. 2019). The Kearney case is an unpublished opinion of the Federal Court of Appeals for the
Eleventh Circuit. Opinions that the Eleventh Circuit’s panel of judges believes to have no precedential value are not published. Although
unpublished opinions may be cited as persuasive authority, they are not considered binding precedent. Fed. Re. App. P. 36, Internal
Operating Procedure 6; see also 11th Cir. R. 36-2.
23 795 Fed. Appx. at 673-74.
24 Id. at 674. The borrower testified that he did not intend to pledge the IRA; however, the lower court rejected such testimony because
it was inconsistent with the borrower’s earlier court filings. Id.
25 The exception is homestead property, as a waiver of such rights must be “knowing, voluntary, and intelligent” to have any effect. See
RPPTL, supra note 21; see also Chames v. DeMayo, 972 So. 2d 850 (Fla. 2007) (citing State v. Upton, 658 So. 2d 86 (Fla. 1995)).
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The decision could also have significant federal tax implications, as the use of certain tax-exempt
accounts as collateral for a loan is considered a distribution of the funds in the account to the owner,
who then may owe federal income tax on the distribution. 26 The Tax Code also imposes a 10 percent
tax penalty for early distributions from certain tax-exempt accounts.27
Effect of Proposed Changes
HB 901 provides that a general description only by type of collateral is an insufficient description to
pledge as collateral, for the purposes of a security agreement, accounts and other entitlements set forth
in ss. 222.13-222.16, 222.18, and 222.201-222.22, F.S. These include:
Funds held in an IRA and other tax-exempt accounts.
A life insurance policy’s proceeds or cash surrender value.
An annuity contract’s proceeds.
Funds held in qualified tuition programs, medical savings accounts, Coverdell education
accounts, and hurricane savings accounts.
Disability income benefits.
A deceased person’s wages, travel expenses, and reemployment assistance or unemployment
compensation payments.
Social security benefits; unemployment compensation; public assistance benefits; veterans’
benefits; alimony, support, or separate maintenance; and stock or pension plans under
specified circumstances.
The bill also:
Specifies that the changes made by the bill are meant to clarify existing law.
Provides an effective date of upon becoming a law.
B. SECTION DIRECTORY:
Section 1: Amends s. 679.1081, F.S., relating to sufficiency of description.
Section 2: Provides that the amendment made by the bill is meant to clarify existing law.
Section 3: Provides an effective date of upon becoming a 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:
26 I.R.C. 408(e)(4) and (d)(1); I.R.C. 72(p)(1)(B).
27 I.R.C. 72(t).
STORAGE NAME: h0901b.IBS PAGE: 4
DATE: 3/20/2023
The bill may prevent Floridians from inadvertently pledging as security specified exempt assets and
suffering any related federal tax consequences.
D. FISCAL COMMENTS:
None.
III. 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:
Not applicable.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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DATE: 3/20/2023
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 901 2023
1 A bill to be entitled
2 An act relating to secured transactions; amending s.
3 679.1081, F.S.; providing that a description of
4 certain accounts and entitlements by a certain type of
5 collateral is insufficient for the purpose of security
6 agreements; providing applicability; providing an
7 effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (5) of section 679.1081, Florida
12 Statutes, is amended to read:
13 679.1081 Sufficiency of description.—
14 (5) A description only by type of collateral defined in
15 this chapter is an insufficient description of:
16 (a) A commercial tort claim;
17 (b) In a consumer transaction, consumer goods, a security
18 entitlement, a securities account, or a commodity account; or
19 (c) An account consisting of a right to payment of a
20 monetary obligation for the sale of real property that is the
21 debtor's homestead under the laws of this state; or
22 (d) Accounts and other entitlements set forth in ss.
23 222.13-222.16, s. 222.18, and ss. 222.201-222.22.
24 Section 2. The amendment made by this act to s. 679.1081,
25 Florida Statutes, is intended to clarify existing law.
Page 1 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0901-00
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 901 2023
26 Section 3. This act shall take effect upon becoming a law.
Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0901-00
HB 1185
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1185 Consumer Protection
SPONSOR(S): Giallombardo
TIED BILLS: IDEN./SIM. BILLS: SB 1398
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Fortenberry Lloyd
2) State Administration & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The bill makes changes related to consumer protection, including:
Mortgage lender locations: Adds remote location to the definition of a mortgage broker’s or lender’s
branch office; allows loan originators to work from a remote location if certain criteria are met .
Crowd-funding campaigns: creates a statutory framework for unlawful acts and practices regarding online
crowd-funding campaigns.
Distributed energy generation system (DEGS) disclosures: adds to the information and disclosures that
must be provided to customers when they purchase or lease DEGS.
Insurance agent address changes: requires that a licensed insurance agent notify DFS of changes to his
or her name, address, telephone number, or other contact information within five days after the change,
rather than within the 30-day period currently specified in law.
Insurance Agency and Adjusting Firm names: Department of Financial Services may disapprove
adjusting firm names on the same grounds under which it can disapprove of insurance agency names
Public adjusters: significantly alters the requirements for contracts between public adjusters and insureds
or claimants; provides for additional disclosures to accompany such contracts; provides for recordkeeping
requirements for public adjusters; changes the methods for insurers to issue payment when an insured has
a contract with a public adjuster.
Insurer advertisements: establishes it is an unfair method of competition, or an unfair or deceptive act or
practice if an insurer fails to disclose a third party that receives royalties, referral fees, or other money for
sponsorship, marketing, or use of third-party branding for a health insurance contract.
Insurance Coverage for Hurricanes: reduces the statutory timeframe for the duration of a hurricane;
defines hurricane deductible as the deductible applicable to loss caused by a hurricane.
Insurer underwriting timeframes: reduces the time that an insurer has to cancel a policy for reasons other
than material misstatement, nonpayment of premium, or failure to comply with underwriting requirements
from 90 days to 60 days.
Annuities: revises the statutory framework for the issuance of annuities in Florida to reflect the most recent
changes to the National Association of Insurance Commissioners’ Annuity Transactions Model Regulation.
Service agreements: a service agreement policy that maintains a contractual liability insurance policy in
lieu of maintaining unearned premium reserve may pay 100 percent of claims as they are incurred or 100
percent of claims due in the event of the failure of the service agreement company to pay claims when due.
The bill has no impact on local or state government revenues or expenditures. It has an indeterminate positive and
negative direct economic impact on the private sector.
Except as otherwise provided, the bill is effective upon becoming law.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 3/20/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Mortgage Lender Locations
Background
The Office of Financial Regulation (OFR) is responsible for the regulation of banks, credit unions, and
other financial institutions, finance companies, and the security industry. 1 OFR is responsible for the
administration an enforcement of ch. 494, F.S., relating to loan originators and mortgage brokers. OFR
licenses and regulates the practice of these individuals.
A loan originator is an individual who, directly or indirectly: 2
Solicits or offers to solicit a mortgage loan;
Accepts or offers to accept an application for a mortgage loan;
Negotiates or offers to negotiate the terms or conditions of a new or existing mortgage loan on
behalf of a borrower or lender; or
Negotiates or offers to negotiate the sale of an existing mortgage loan to a noninstitutional
investor for compensation or gain.
The term loan originator does not include an employee of a mortgage broker or lender who only
handles a completed application form or transmits a completed application form to a lender on behalf of
a prospective borrower.3
A mortgage broker conducts loan originator activities through one or more licensed loan originators
employed by the mortgage broker or as independent contractors to the mortgage broker.4 In contrast, a
mortgage lender makes a mortgage loan or services a mortgage loan for others, or, for compensation
or gain, directly or indirectly, sells or offers to sell a mortgage loan to a noninstitutional investor. 5 A
mortgage lender may act as a mortgage broker.6
Each mortgage broker and lender must maintain, and transact business from, a principal place of
business,7 which is a primary office with a street address or physical location designated on a licensure
application.8 A mortgage broker or lender may also operate out of a branch office, 9 but each branch
office must be separately licensed10 and operated by a branch manager11 who must be licensed as a
loan originator. Currently, mortgage brokers and lenders are not legally authorized to work from remote
locations and doing so may result in administrative action by OFR.
1 S. 20.121(3)(a)2., F.S.
2 S. 494.001(18), F.S.
3 Id.
4 S. 494.001(23), F.S.
5 S. 494.001(24), F.S.
6 See s. 494.0073, F.S.
7 Ss. 494.0039, and 494.0073, F.S.
8 S. 494.001(31), F.S.
9 See s. 494.001(3), F.S.
10 Ss. 494.0036(1) and 494.0066(1), F.S.
11 Ss. 494.0035(2) and 494.00665(2), F.S.
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Effect of the Bill
The bill adds a remote location to the definition of a mortgage broker’s or lender’s branch office. It
defines a remote location as:
A location, other than a principal place of business or a branch office;
At which a loan originator of a licensee may conduct business.
Licensees may allow loan originators to work from a remote location if:
The licensee has written policies and procedures for supervision of loan originators working
from a remote location;
Access to company platforms and customer information meets the licensee’s comprehensive
written information security plan;
An in-person customer interaction does not occur at a loan originator’s residence, unless the
residence is a licensed location;
Physical records are not maintained at a remote location;
Customer interactions and conversations about consumers comply with federal and state
information security requirements;
Loan originators working at a remote location access the company’s secure systems via a
virtual private network or comparable system;
The licensee ensures that appropriate security updates, patches, or other security alterations
used at remote locations are installed and maintained;
The licensee has the ability to remotely lock or erase company-related contents of any device or
remotely limit access to secure systems; and
The Nationwide Multistate Licensing System and Registry’s 12 record of a loan originator who
works from a remote location designates the principal place of business as the loan originator’s
registered location or the loan originator has elected a licensed branch office as a registered
location.
The bill changes the locations where a mortgage lender may lawfully conduct business to include a
branch office or remote location in addition to a principal place of business.
Crowd-funding Campaigns
Background information
Responses to natural disasters, including hurricanes, often include crowd-funding campaigns to raise
money to help those who have been affected.13 Unfortunately, some of these campaigns are scams
that prey on people’s willingness to help disaster victims. 14 Online crowd-funding platforms receive
donations and distribute them without oversight and may be unable to determine whether the funds
received were used appropriately.15
Effect of the Bill
The bill creates a statutory framework for unlawful acts and practices regarding online crowd-funding
campaigns. It provides relevant definitions for crowd-funding campaign, crowd-funding platform,
disaster, and organizer. The bill defines crowd-funding campaign as an online fundraising initiative that
is:
Intended to receive monetary donations; and
Created by an organizer in the interest of a beneficiary.
12 The Nationwide Multistate Licensing System is centralized online database that is used by mortgage and finance
regulatory agencies to maintain state licensing programs. Rocket Mortgage, What is NMLS?,
https://www.rocketmortgage.com/learn/what-is-nmls (last visited Mar. 19, 2023).
13 Florida Department of Financial Services (DFS), Agency Analysis of 2023 House Bill 1185, p. 2 (Feb. 27, 2023).
14 Id.
15 Id. at p. 3.
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A disaster must satisfy all of the following criteria to meet the statutory definition of disaster set forth in
the bill:
Natural, technological, or civil emergency;
Occurs in Florida; and
Causes damage of sufficient severity and magnitude to result in a declaration of a state of
emergency by a county, the Governor, or the President of the United States.
The bill requires that, when an organizer arranges a crowd-funding campaign related to a disaster, the
organizer must produce to the crowd-funding platform a complete and accurate accounting of all the
donations received and expended by the campaign. The crowd-funding platform must publish all of
these accountings on its website.
Distributed Energy Generation System Disclosures
Background
Under current law, when a customer purchases or leases a distributed energy generation system
(DEGS), including solar panels, certain information and disclosures must be provided to the customer,
including contact information for the installer, cost and rebate information, and financial
considerations.16 However, contact information for the regulator of the system installer is not
included.17 Disclosures about how these DEGS may impact a customer’s homeowners’ insurance
premiums and coverage or the life of their roof is also not provided. 18
Effect of the Bill
The bill adds to the information and disclosures that must be provided to customers when they
purchase or lease DEGS. The customer must be given phone number for the Department of Business
and Professional Regulation’s customer contact center.
Customers must be informed that they should consider the age and remaining life of their roofs before
installing DEGS and that replacement of their roofs may require reinstallation of the DEGS. The bill also
requires that customers be given a statement informing them that:
Placing DEGS on their roof may impact their future insurance premiums; and
Customers are responsible for contacting their insurers prior to entering a purchase or lease
agreement for the DEGS to determine whether their current policy or coverage needs
modification upon installing the DEGS onto their dwelling.
Insurance Agent Address Changes
Background
Insurance agents are currently required to notify the Department of Financial Services (DFS), in writing,
of changes to their name, residential address, principal business street address, mailing address,
contact telephone numbers, and email address within 30 days of a change.19
Effect of the Bill
The bill requires that a licensed insurance agent notify DFS of changes to his or her name, address,
telephone number, or other contact information within five days after the change, rather than within the
30-day period currently specified in law.
16 S. 520.23, F.S.
17 DFS, supra, note 13 at p. 3.
18 Id.
19 S. 626.551, F.S.
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Insurance Agency and Adjusting Firm names
Background
DFS recently began licensing adjusting firms.20 However, unlike the authority to disapprove names of
insurance agencies, DFS does not have the authority to disapprove misleading names of adjusting
firms.21 If the adjusting firm name contains certain words, such as a city, county, or government name,
that could lead customers to believe they are doing business with a governmental entity. 22
Current law allows insurance agencies to use the words “Medicare” and “Medicaid” in their names. 23
However, the provision of law allowing the use of those words is set to expire on June 30, 2023.24
Effect of the Bill
The bill establishes that DFS may disapprove the use of adjusting firm names on the same grounds
under which it can disapprove of insurance agency names. As of July 1, 2023, the bill also repeals the
statutory provision that allows an insurance agency to use the word “Medicare” or “Medicaid” in its
name, because the provision allowing the use of those words is set to expire.
Public adjusters
Background
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. 25 In general, a claimant executes a
contract for the public adjuster to provide claims adjusting services.26 At present, such a contract may
only be canceled within ten days after the date the contract was executed.27
Public adjusters who have contracted with claimants must also provide to the claimant a written
estimate of loss to assist the claimant with obtaining a claim payment from the insurance company.
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.28
Effect of the Bill
The bill clarifies that certain actions constitute the practice of public adjusting regardless of how a public
adjuster describes or presents his or her services. The bill establishes that, after July 1, 2023, whether
a public adjuster enters a contract to provide public adjusting services, the public adjuster is prohibited
from contracting with anyone other than a named insured unless the named insured provides written
consent. If a public adjuster contracts with a third party in settling the named insured’s claim, without
first obtaining the insured’s written consent, the third party must be paid from the public adjuster’s fees.
20 DFS, supra, note 13 at p. 3.
21 See s. 626.602, F.S.
22 DFS, supra, note 13 at p. 3.
23 S. 626.602(4)(b), F.S.
24 Id.
25 S. 626.854, F.S.
26 See id.
27 Id.
28 DFS, Agency Analysis of 2021 House Bill 717, p. 3 (Feb. 25, 2021).
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The bill allows an insured or claimant to cancel a contract with a public adjuster without penalty or
obligation within 30 days after signing the contract if the insured or claimant signed the contract based
on events that were the subject of an emergency declaration by the Governor. The public adjuster’s
contract must contain information regarding the 30-day cancellation period and must also notify the
insured or claimant that he or she may cancel the contract if the public adjuster fails to provide the
insured or claimant and the insurer a copy of a written estimate of damages within 45 days of the
execution of the contract.
The bill changes many of the requirements for the contracts for services between public adjusters and
insureds or claimants, including the following:
The contract must be titled “Public Adjuster Contract” in at least 12-point font.
The anti-fraud statement required in the contract must be in at least 18-point bold font and
placed in the space above the insured or claimant’s signature.
A copy of the executed contract must be provided to the insured or claimant at the time of
execution and to the insurer within three days thereafter.
The public adjuster shall not provide services until both the insured and insurer have been
provided with unaltered copies of the executed contract.
Before signing the contract, the public adjuster must provide the insured with a separate
disclosure that the insured must sign that does the following:
o Defines the types of adjusters who may be involved in the claims process, including
company adjuster, independent adjuster, and public adjuster.
o Explains that the public adjuster is not a representative or employee of the insurer.
o Explains that the insured is not required to hire a public adjuster.
o Explains that the insured has the right to communicate directly with the insured’s
attorney, the insurer, the company adjuster, the insurer’s attorney, or any person
regarding the settlement of the claim.
o Explains that public adjuster’s salary, fee, commission, or other consideration to be paid
to the public adjuster is the insured’s responsibility.
Any public adjuster contract that does not comply with these requirements is invalid and unenforceable.
Under the bill, if the insurer, no later than 14 days after the date on which the loss is reported to the
insurer, pays or commits in writing to pay the insured the policy limit of the insurance policy, the public
adjuster shall:
Inform the insured that, due to the insurer’s payment or commitment to pay the policy limit, the
loss recovery amount might not be increased by the insurer.
Not receive a commission consisting of a percentage of the total amount that the insurer paid to
resolve the claim.
Be entitled only to reasonable compensation from the insured for the time spent and expenses
that the public adjuster incurred on the claim until the claim is paid or the insurer provided a
written agreement to pay.
The bill establishes that if a public adjuster enters into a contract with an insured or claimant after the
insured or claimant unsuccessfully negotiates an insurance claim payment and the public adjuster
successfully obtains a higher insurance claim payment, the public adjuster shall receive a commission
consisting of 10 percent of:
the difference between the initial insurance claim payment offer made to the insured; and
the final insurance claim payment obtained through the public adjuster’s work after the insured
or claimant signed the public adjuster’s contract.
The bill alters the way in which insurers issue claims payments when a public adjuster is involved.
When a claim is settled while the insured is represented by a public adjuster, the insurer must issue the
payment in check form. The insurer must issue one check made payable to the public adjuster for the
amount of his or her fee. The second check issued by the insurer must be for the balance of the
proceeds and payable to the insured.
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The bill clarifies that the statutory exemption that allows attorneys at law to adjust claims without being
licensed as adjusters does not extend to the employees, interns, volunteers, or contractors of an
attorney or law firm.
The bill prohibits anyone who has been found guilty of, or pleaded guilty or nolo contendere to, any
crime involving theft or dishonesty, regardless of adjudication within ten years of application from
becoming licensed as a public adjuster. It requires that an applicant for a public adjuster’s license must
file with DFS a current certificate of an errors and omissions policy issued by an authorized insurer with
a minimum coverage of $500,000 per occurrence.
The bill states that appointed independent adjusters and licensed public adjusters must post their
licenses in a conspicuous place in their principal places of business or have the licenses in their
possession if they are conducting business away from the principal places of business. It mandates that
adjusters have their records available for inspection by DFS at all times.
The bill also requires that adjusters maintain the following records for at least five years:
The name, address, phone number, and email address of the insured, and name of the
insured’s attorney if applicable.
The date, location, and amount of the loss.
An unaltered copy of the signed document containing the disclosures that the public adjuster is
required to give the insured.
A copy of the estimate of damages provided to the insurer.
Name of the insurer, claims representative, amount, expiration date, and number of each policy
under which the loss is covered.
An itemized statement of all compensation received by the public adjuster in connection with the
loss.
A register of all money received, deposited, disbursed, and withdrawn in connection with a
transaction with the insured, including fees, transfer, and disbursements in connection with the
loss.
Insurer Advertisements
Background
The Unfair Insurance Trade Practices Act (Act),29 among other things, defines unfair methods of
competition and unfair or deceptive acts in the business of insurance. 30 It provides an extensive list of
prohibited methods and acts. Among these are prohibitions on certain advertisements, inducements to
the purchase of insurance, including rebates, dividends, stock, and contracts that promise to return
profits to the prospective insurance purchaser. An insurer is prohibited from knowingly making, iss uing,
circulating any estimate, illustration, circular, statement, sales presentation, omission, comparison, or
altered property or casualty insurance certificate that falsely advertises insurance policies. 31
Effect of the Bill
The bill establishes that it is an unfair method of competition, or an unfair or deceptive act or practice,
by misrepresentation or false advertising of an insurance policy, if an insurer fails to disclose a third
party that receives royalties, referral fees, or other money for sponsorship, marketing, or use of third-
party branding for a health insurance contract.32
Insurance Coverage for Hurricanes
29 Ch. 626, F.S., part IX.
30 S. 626.9541, F.S.
31 S. 626.9541(1)(a), F.S.
32 The health insurance contract is definedin s. 624.603, F.S., as “insurance of human beings against bodily injury,
disablement, or death by accident or accidental means, or the expense thereof, or against disablement or expense
resulting from sickness, and every insurance appertaining thereto.” It does not include workers’ compensation insurance.
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Background
Property insurance policies in Florida typically include a separate deductible applicable to hurricane
losses.33 Hurricane deductibles are often higher than the deductibles applicable to all other covered
losses. Current law provides a broad timeframe under which a hurricane is considered to be affecting
the state.34 A hurricane deductible can be applied during this timeframe, which may lead to significant
out-of-pocket expenditures by policyholders.
The timeframe for a hurricane begins when a hurricane watch or warning is issued anywhere in Florida
and ends 72 hours after the termination of the last hurricane watch or warning.35 A hurricane watch may
be issued up to 48 hours before the anticipated onset of tropical-storm-force winds in an area.36
Effect of the Bill
The bill reduces the statutory timeframe for the duration of a hurricane as follows:
It excludes a hurricane watch.
It deletes the provision that a hurricane continues for the time period during which hurricane
conditions exist anywhere in Florida.
It reduces the timeframe during which a hurricane exists to 24 hours following the termination of
the last hurricane watch or warning issued for any part of Florida.
Based upon these changes, a hurricane deductible would apply from the issuance of a hurricane
warning until 24 hours past the issuance of the last hurricane warning issued for the state.
The bill also defines hurricane deductible as the deductible applicable to loss caused by a hurricane.
Insurer Underwriting Timeframes
Background
Once coverage has been bound37 and a premium is quoted and paid, an insurer issuing property or
casualty insurance has 90 days to complete its underwriting process to determine whether an applicant
meets its guidelines.38 Coverage is extended to the policyholder during the underwriting period and the
insurer has earned the premium for the number of days that the coverage was available during that
period.39 Once the underwriting period is complete, the insurer will either accept or decline the risk. 40
After the conclusion of the underwriting period, an insurer may only cancel the policy for the following
reasons:41
Material misstatement.
Nonpayment of premium.
Failure to comply with underwriting requirements established within 90 days of the effective date
of coverage.
Substantial change in the risk covered by the policy.
33 See s. 627.701, F.S.
34 See s. 627.4025(2), F.S.
35 S. 627.4025(2), F.S.; DFS, supra, note 13 at p. 3.
36 National Ocean Service, What is the Difference Between a Hurricane Watch and Hurricane Warning?,
https://oceanservice.noaa.gov/ facts/watch-
warning.html#:~:text=A%20hurricane%20watch% 20is%20issued,to%20instructions%20from% 20local% 20officials (last
visited Mar. 20, 2023). A hurricane watch means that hurricane conditions (sustained winds of 74 miles per hour or
greater) are possible within a specified area. A hurricane warning means that hurricane conditions are expected
somewhere within the specified area.
37 The term bound refers to confirmation that coverage is in place.
38 DFS, supra, note 13 at p. 3.
39 Id.
40 Id.
41 S. 627.4133, F.S.
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When the cancellation is for all insureds in a given class. 42
Of the 50 states: 38 have a homeowners’ insurance underwriting period of 60 days; five have less than
60-day periods; one has a 70-day period; five states, including Florida, have 90-day periods; and one
state has a period greater than 90 days.43
Effect of the Bill
The bill reduces the time that an insurer has to cancel a property or casualty policy for reasons other
than those detailed immediately above from 90 days to 60 days.
Motor Vehicle Service Agreements
Background
Motor vehicle service agreements provide vehicle owners with protection when a manufacturer’s
warranty has run out. Companies that sell such agreements are regulated by the Office of Insurance
Regulation (OIR), and must currently establish and maintain an unearned premium reserve equal to a
minimum of 50 percent of the unearned gross written premium on each service agreement. 44
Additionally, these companies must maintain net assets of at least $500,000. 45 In lieu of maintaining an
unearned premium reserve, the company may secure and maintain a contractual liability insurance
policy (CLIP),46 which protects business owners against the financial consequences of liabilities
assumed from entering a contract.47
Effect of the Bill
The bill establishes that a service agreement policy that maintains a CLIP in lieu of maintaining
unearned premium reserve may either pay 100 percent of claims as they are incurred or 100 percent of
claims due in the event of the failure of the service agreement company to pay claims when due.
Annuities
Background48
An annuity is a contract between a buyer and an insurance company that provides guaranteed
payments over a period of time. Annuities are designed to meet retirement and long-range planning
goals and are long-term contracts that typically restrict an investor’s ability to access his/her money.
42 A class is a group of insureds with similar exposures and experience that are grouped together for rating purposes.
IRMI, Class, https://www.irmi.com/term/insurance-
definitions/class#:~:text=A%20class%20is%20a%20group,grouped%20together%20for%20rating%20purposes (last
visited Mar. 20, 2023).
43 DFS, supra, note 13 at p. 4.
44 S. 634.041, F.S.
45 Id.
46 Id.
47 The Hartford, Contractual Liability Insurance, https://www.thehartford.com/general -liability-insurance/cont ractual -
liability-
insurance#:~:text=Contractual%20liability%20insurance% 20helps%20cover,wit h%20contracts%2C% 20such%20as%20c
ontractors (last visited Mar. 20, 2023).
48 See Annuities a Guide for Consumers, https://www.myfloridacfo.com/docs-sf/consumer-services-
libraries/consumerservices-documents/understanding-coverage/consumer-guides/annuities-guide. pdf?sfvrsn=93c f03d5_2
(last visited Mar. 20, 2023); See also National Association of Insurance Commissioners (NAIC), Annuities,
https://content.naic.org/cipr-
topics/annuities#:~:text=The%20NAIC%20Suit ability%20in% 20Annuity,the%20time%20of% 20the%20t ransaction . (last
visited Mar. 20, 2023).
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There are two basic types of annuities, fixed and variable. Fixed annuities guarantee both the rate of
return and the amount of payout. Variable annuities do not guarantee the rate of return, which can
fluctuate based on the performance of underlying investment options chosen by the purchaser. Another
product, equity indexed annuities, is considered a hybrid of both fixed and variable annuities.
Annuities can be either immediate or deferred. With immediate annuities, the premium is paid in a
single lump sum, and the purchaser receives an immediate and regular stream of payments for a
period of time. By contrast, purchasers of deferred annuities pay one or more premiums over time (the
accumulation period) and begin to receive annuity payments at a future point in time (the payout period
or annuitization phase).
Fixed annuities are considered insurance contracts because of the mortality risk associated with payout
options, and are regulated by state insurance departments. With a variable annuity, premium dollars
are placed into a variety of investment options called subaccounts. Because variable annuities involve
risk and provide no guarantee of principal, they are considered investments and fall within the
jurisdiction of both securities regulators and state insurance departments. Agents selling variable
annuities must hold a variable annuity license from the state and also possess a securities license and
hold an active securities registration with a broker dealer. As investments, variable annuities also have
accompanying prospectuses with disclosures regarding risk. All sales of variable annuities are subject
to suitability standards established by the Financial Industry Regulatory Authority (FINRA). 49 Variable
annuities generally involve an accumulation phase and a payout phase.
Equity indexed annuities provide a minimum guaranteed interest rate in combination with an index-
linked component. A guaranteed minimum interest rate may still create a loss of principal if the
guarantee is based on an amount less than the amount of premium or initial payment. Investors who
find it necessary to cancel an annuity to access funds prior to maturity of the contract may also lose
principal through detrimental features such as surrender charges, hidden penalties, costs, fees, and
massive multi-year surrender charges.
In 2003, the National Association of Insurance Commissioners (NAIC) adopted “Senior Protection in
Annuity Transactions Model Regulation” (Senior Protection Model Regulation), designed to help protect
senior citizens when they purchase or exchange annuity products. In 2004, Florida adopted the Senior
Protection Model Regulation in s. 627.4554, F.S. This section provides protection for senior citizens in
annuity transactions, requiring insurance companies and agents offering these products to clearly
document the basis for selling the product, including consideration of a senior citizen’s financ ial and tax
status, as well as investment objectives. In 2006, the NAIC removed the age restriction from its Model
Regulation, extending the annuity protections to consumers of any age.
In 2008, Florida amended s. 627.4554, F.S. Although the legislation did not incorporate the 2006
change to the Senior Protection Model Regulation, it provided additional safeguards for senior
consumers, including:
Requiring insurers and agents to have an “objectively” reasonable basis for recommending a
particular annuity product.
Specifying the minimum information that an insurer or agent must obtain and use to determine
the suitability of a recommendation before executing a purchase or exchange of a policy.
Requiring suitability information obtained from a consumer to be recorded on a Department of
Financial Services’ (DFS) form, which must be completed and signed by the applicant and the
agent, with a copy given to the consumer.
Requiring the insurer or agent, in exchange situations, to provide the consumer with specified
information on a DFS form concerning differences between the policy being recommended for
purchase and an existing policy that would be surrendered or replaced.
Increasing the “free look” refund period.
49 The Financial IndustryRegulatory Authority (FINRA) is the largest independent regulator for all securities firms doing
business in the United States.
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Authorizing the OIR to rescind an annuity and provide a full refund of premiums paid or the
accumulation value, whichever is greater, when a consumer is harmed by a violation of the
suitability statute.
In 2010, the Legislature also increased the unconditional refund period for senior consumers in annuity
transactions to 21 days and required insurers to attach a cover page with specified information,
including notice of the refund period, contact information, and the name of the issuing company and
selling agent, to each annuity sold.50
In March 2010, the NAIC revised its Senior Protection Model Regulation to clarify that insurers are
responsible for compliance with the model’s requirements, even if the insurer contracts with a third
party; requiring insurers to review all annuity transactions; and establishing both general and product-
specific training requirements for insurance agents. The Legislature incorporated these changes to the
Senior Protection Model Regulation in 2013.
In 2020, the NAIC issued the Suitability in Annuity Transactions Model Regulation (Suitability Model
Regulation), to set forth standards and procedures for recommendations to consumers that result in an
annuity transaction.51
Effect of the Bill
The bill revises the statutory framework for the issuance of annuities in Florida, based upon the
Suitability Model Regulation. It requires that agents act in consumers’ best interests when
recommending an annuity to a consumer and that insurers establish and maintain a s ystem of
supervision over agents to make sure that the consumers’ insurance needs and financial objectives are
effectively addressed.
The bill defines an agent as a person or entity required to be licensed under Florida law to sell, solicit,
or negotiate insurance, including annuities. It defines cash compensation as any discount, concession,
fee, service fee, commission, sales charge, loan, override, or cash benefit that an agent receives in
connection with the recommendation or sale of an annuity from an insurer, intermediary, or directly from
a consumer. The bill defines consumer profile information, which includes various information about the
consumer’s financial needs, net worth and financial resources, and risk tolerance.
The bill defines intermediary as an entity contracted directly with an insurer or with another entity
contracted with an insurer to facilitate the sale of the insurer’s annuities by agents. It defines material
conflict of interest as financial interest of the agent in the sale of an annuity that a reasonable person
would expect to influence the impartiality of a recommendation, but it does not include cash or noncash
compensation.
Under the bill nonguaranteed elements means the premiums, credited interest rates, including any
bonus, benefits, values, dividends, noninterest based credits, charges, or elements of formulas used to
determine any of these. Such nonguaranteed elements are subject to company discretion and are not
guaranteed at issue.
The bill revises the statutory definition of recommendation so that it refers to advice provided by an
agent to an individual consumer that was intended to result, or does result, in a purchase, an exchange,
or a replacement of an annuity. Recommendation does not include general communication to the
public, generalized customer services, assistance or administrative support, general educational
information and tools, prospectuses, or other product and sales material. The bill also provides
additional definitions, clarification of existing definitions, and deletes unnecessary definitions, related to
annuities.
50 Section 626.99, F.S.
51 NAIC, Annuities, https://content.naic.org/cipr-
topics/annuities#:~:text=The%20NAIC%20Suit ability%20in% 20Annuity,the%20time% 20of% 20the%20t ransaction (last
visited Mar. 20, 2023); NAIC, Suitability in Annuity Transactions Model Regulation,
https://content.naic.org/sites/default/files/inline-files/MDL-275.pdf (last visited Mar. 20, 2023).
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The bill requires that, when recommending an annuity, an agent must act in the best interests of the
consumer under the circumstances known at the time the recommendation is made, without placing the
agent’s or insurer’s financial interest ahead of the consumer’s interest. The bill considers an agent to
have acted in the consumer’s best interest if the agent has met the following obligations and
documentation requirements:
The agent exercised reasonable diligence, care, and skill to:
o Know the consumer’s financial situation, insurance needs, and financial objectives.
o Understand the available options after making a reasonable inquiry into the options
available to the agent.
o Have a reasonable basis to believe the recommended option effectively addresses the
consumer’s financial situation, insurance needs, and financial objectives over the life of
the product.
o Communicate the reasons for the recommendation.
The agent must also:
o Make reasonable efforts to obtain consumer profile information from the consumer
before recommending an annuity.
o Consider the types of products the agent may recommend or sell that address the
consumer’s financial situation, insurance needs, and financial objectives.
o Have a reasonable basis to believe the consumer would benefit from certain features of
the annuity recommended.
If an annuity is being exchanged or replaced, the agent must consider whether:
o The consumer will incur a surrender charge; be subject to a new surrender period; lose
existing benefits; or be subject to increased fees or charges.
o The replacement annuity would substantially benefit the consumer in comparison to the
replaced product.
o The consumer has had another annuity exchange or replacement, including one within
the preceding 60 months.
Before the recommendation or sale of an annuity, the agent must disclose the following:
o A description of the scope and terms of the relationship with the consumer and the role
of the agent in the transaction.
o A statement regarding the types of annuities and other products that the agent is
licensed and authorized to sell.
o A statement describing the insurers for which the agent is authorized, contracted or
appointed, or otherwise able to sell insurance products.
o A description of the sources and types of cash and noncash compensation the agent
will receive.
o A notice of the consumer’s right to request additional information regarding the cash
compensation to be received by the agent.
The bill requires that an agent identify and avoid or reasonably manage and disclose material conflicts
of interest, including those related to an ownership interest. At the time of recommendation or sale, an
agent shall:
Make a written record of any recommendation and the basis for it.
Obtain a statement signed by a consumer documenting the following, as applicable:
o A consumer’s refusal to provide consumer profile information; and
o A consumer’s understanding of the ramifications of not providing sufficient consumer
profile information.
o If an annuity transaction is not based on the agent’s recommendation, a consumer’s
acknowledgment that the annuity transaction is not recommended.
The bill obligates an insurer to establish and maintain reasonable procedures to:
Assess, prior to, or upon issuance and delivery of, an annuity, whether the agent provided the
required information to the consumer.
Identify and address suspicious consumer refusals to provide consumer profile information.
Identify and eliminate any sales contests, sales quotas, bonuses, and noncash compensation
based on the sales of specific annuities within a limited time period.
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While an insurer is required to have a system to supervise agents, the system is not required to include
consideration of, or comparison to, options available to the agent or other products offered by the
insurer. However, an insurer’s supervision system must include supervision of contractual performance.
The bill provides a safe harbor for recommendations made by an agent in compliance with business
rules, controls, and procedures that satisfy a comparable standard even if such standard would not
otherwise apply to the product or recommendation at issue. However, OIR or DFS can still investigate
potential violations of the statutes relating to the sales of annuities.
The bill defines comparable standards as:
With respect to broker-dealers and registered representatives of broker-dealers, applicable
Securities and Exchange Commission and FINRA rules related to best interest obligations and
supervision of annuity recommendations;
With respect to investment advisers registered under federal or state securities laws or
investment adviser representatives, the fiduciary duties and all other requirements imposed on
such investment adviser representatives; and
With respect to plan fiduciaries, the duties, obligations, prohibitions and all other requirements
attendant to such status under ERISA,52 or the Internal Revenue Code.
Under the bill, the insurer is responsible for monitoring registered financial professionals and providing
the information gathered to others who are responsible for supervising financial professionals. Financial
professional is defined as an agent that is regulated and acting as:
A broker dealer registered under federal or state securities laws or a registered representative
of a broker dealer;
An investment adviser registered under federal or state securities laws or an investment
adviser representative associated with the registered adviser;
A plan fiduciary under ERISA or fiduciary under the Internal Revenue Code.
The bill establishes detailed training requirements for agents who sell annuities. An agent is prohibited
from selling an annuity product unless the agent has adequate knowledge of the produce to
recommend the annuity and the agent is compliant with the insurer’s product knowledge training
standards.
The bill requires that an agent who sells annuity products must complete a one-time four-hour training
course separate from an agent’s continuing education requirements. Under the bill, agents who hold life
insurance sales authority, and who wish to sell annuities, must complete the annuity training course, as
well. Agents who completed an OIR-approved training course prior to the four-hour course requirement
set forth in the bill must either complete a new four-hour training course approved by OIR, or an
additional one-time one-credit course approved by OIR.
The required training course must include information on the following topics:
Types and classifications of annuities.
Identification of the parties to an annuity.
How product-specific annuity contract features affect consumers.
The application of income taxation of qualified and nonqualified annuities.
The primary use of annuities.
Appropriate standard of conduct, sales practices, replacement, and disclosure requirements.
Providers of the annuity training course must register with the state as a continuing education provider
and comply with the applicable rules and guidelines set forth for continuing education providers in the
52 ERISA is the Employee Retirement Income Security Act of 1974, but is commonly referred to by its acronym. It sets
minimum standards for most voluntarily established retirement and health plans in private industry to provide protection
for individuals in these plans. United States Department of Labor, Employee Retirement Income Security Act (ERISA),
https://www.dol.gov/general/topic/retirement/erisa#:~:text=The%20Employee%20Retirement%20Income% 20Sec urity,for
%20individuals%20in%20these% 20plans (last visited Mar. 19, 2023).
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Florida Insurance Code. Annuity training courses may be completed in a classroom or by self-study.
Other courses, including those from other states, that are substantially similar to the four-hour training
course described in the bill may satisfy the training requirements established by the bill.
The bill requires that the insurer verify that an agent has completed the required annuity training course
before allowing the agent to sell an annuity product for that insurer. An insurer may satisfy this
requirement by obtaining certificates of completion of the training course by an agent or by obtaining
reports provided by approved continuing education providers.
B. SECTION DIRECTORY:
Section 1. Amends s. 494.001, F.S. relating to definitions.
Section 2. Amends s. 494.0067, F.S., relating to requirements of mortgage lenders.
Section 3. Creates s. 501.2042, F.S., relating to unlawful acts and practices by online crowd-funding
campaigns.
Section 4. Amends s. 520.23, F.S., relating to disclosures required.
Section 5. Amends s. 626.551, F.S., relating to notice of change of address, name.
Section 6. Amends s. 626.602, F.S., relating to insurance agency names.
Section 7. Amends s. 626.854, F.S., relating to “public adjuster” defined; prohibitions.
Section 8. Amends s. 626.850, F.S., relating to attorneys at law; exemption.
Section 9. Amends s. 626.865, F.S., relating to public adjuster’s qualifications; bond.
Section 10. Amends s. 626.875, F.S. relating to office and records.
Section 11. Creates s. 626.8751, F.S. relating to payment of claim.
Section 12. Amends s. 626.8796, F.S. relating to public adjuster contracts; fraud statement.
Section 13. Amends s. 626.8797, F.S. relating to proof of loss; fraud statement.
Section 14. Amends s. 626.9541, F.S. relating to unfair methods of competition and unfair or
deceptive acts or practices defined.
Section 15. Amends s. 627.4025, F.S. relating to residential coverage and hurricane coverage
defined.
Section 16. Amends s. 627.4133, F.S. relating to notice of cancellation, nonrenewal, or renewal
premium.
Section 17. Amends s. 627.4554, F.S. relating to annuity investments.
Section 18. Amends s. 634.041, F.S. relating to qualifications for license.
Section 19. Provides uncoded directory language.
Section 20. 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:
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 has an indeterminate positive and negative direct economic impact on the private sector. As a
result of the public adjuster provisions set forth in the bill, public adjusters may receive less
compensation for their services. As such, consumers who use the services of public adjusters may
save money on those services.
D. FISCAL COMMENTS:
None.
III. 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:
The bill provides DFS with the authority necessary to implement rules to administer the portions of the
bill where rulemaking is required, including the changes to the requirements for a public adjuster’s
contract with an insured.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
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DATE: 3/20/2023
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 1185 2023
1 A bill to be entitled
2 An act relating to consumer protection; amending s.
3 494.001, F.S.; providing and revising definitions;
4 amending s. 494.0067, F.S.; revising the locations
5 mortgage lenders may transact business; creating s.
6 501.2042, F.S.; providing definitions; providing
7 requirements for crowd-funding campaigns relating to
8 disasters; amending s. 520.23, F.S.; providing
9 additional requirements for distributed energy
10 systems; amending s. 626.551, F.S.; reducing the time
11 in which licensees must notify the department of
12 changes in specified information; amending s. 626.602,
13 F.S.; providing requirements for the names of
14 adjusting firms; amending s. 626.854, F.S.; revising
15 the definition of the term "public adjuster";
16 prohibiting certain contracts by public adjusters;
17 providing requirements for public adjuster contracts;
18 prohibiting certain public adjuster contracts until
19 demonstrated to the insured that it will not issue a
20 satisfactory claims payment within a specified period;
21 providing duties of a public adjuster if an insurer
22 either pays or commits in writing to pay to the
23 insured the policy limit within a specified period;
24 providing requirements for public adjuster
25 commissions; providing for cancellation of public
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26 adjuster contracts without fee or penalty in certain
27 circumstances; amending s. 626.860, F.S.; limiting the
28 application of an exemption of regulation for
29 attorneys in the negotiation of insurance claims;
30 amending s. 626.865, F.S.; providing an additional
31 requirement for a public adjuster's license; requiring
32 public adjusters to have a specified minimum amount of
33 errors and omissions insurance; amending s. 626.875,
34 F.S.; requiring the posting of public adjuster
35 licenses in principal places of business; requiring
36 such licensees to have a specified license in his or
37 her possession at certain times; providing additional
38 recordkeeping requirements for adjusters; creating s.
39 626.8751, F.S.; providing requirements for payment of
40 claims settled by public adjusters; amending s.
41 626.8796, F.S.; providing requirements for public
42 adjuster contracts; authorizing recession of the
43 contract by the insured in certain circumstances;
44 requiring specified disclosures by a public adjuster;
45 authorizing rulemaking; amending s. 626.8797, F.S.;
46 providing additional requirements for proof of loss
47 statements; amending s. 626.9541, F.S.; specifying
48 additional conduct that constitutes unfair methods of
49 competition and unfair or deceptive acts or practices;
50 amending s. 627.4025, F.S.; revising provisions
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51 relating to hurricane deductibles; amending s.
52 627.4133, F.S.; reducing the period in which an
53 insurer may cancel a property insurance policy in
54 certain circumstances; amending s. 627.4554, F.S.;
55 providing and revising definitions; revising the
56 duties of insurers and agents concerning the sale of
57 annuities; requiring insurers to maintain certain
58 procedures; providing training and education
59 requirements for agents; amending s. 634.041, F.S.;
60 providing additional requirements for a service
61 agreement policy; providing a directive to the
62 Division of Law Revision; providing an effective date.
63
64 Be It Enacted by the Legislature of the State of Florida:
65
66 Section 1. Subsections (35) through (38) of section
67 494.001, Florida Statutes, are renumbered as subsections (36)
68 through (39), respectively, subsection (3) is amended, and a new
69 subsection (35) is added to that section, to read:
70 494.001 Definitions.—As used in this chapter, the term:
71 (3) "Branch office" means a location, other than a
72 mortgage broker's or mortgage lender's principal place of
73 business: or a remote location
74 (a) The address of which appears on business cards,
75 stationery, or advertising used by the licensee in connection
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76 with business conducted under this chapter;
77 (b) At which the licensee's name, advertising or
78 promotional materials, or signage suggests that mortgage loans
79 are originated, negotiated, funded, or serviced; or
80 (c) At which mortgage loans are originated, negotiated,
81 funded, or serviced by a licensee.
82 (35) "Remote location" means a location, other than a
83 principal place of business or a branch office, at which a loan
84 originator of a licensee may conduct business. Licensees may
85 allow loan originators to work from a remote location if:
86 (a) The licensee has written policies and procedures for
87 supervision of loan originators working from a remote location.
88 (b) Access to company platforms and customer information
89 is in accordance with the licensee's comprehensive written
90 information security plan.
91 (c) An in-person customer interaction does not occur at a
92 loan originator's residence, unless such residence is a licensed
93 location.
94 (d) Physical records are not maintained at a remote
95 location.
96 (e) Customer interactions and conversations about
97 consumers will be in compliance with federal and state
98 information security requirements, including applicable
99 provisions under the Gramm-Leach-Bliley Act and the Safeguards
100 Rule established by the Federal Trade Commission, set forth at
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101 16 CFR Part 314, as such requirements may be amended from time
102 to time.
103 (f) Loan originators working at a remote location access
104 the company's secure systems, including a cloud-based system,
105 directly from any out-of-office device such employee uses,
106 including a laptop, telephones desktop computer, and tablet, via
107 a virtual private network (VPN) or comparable system that
108 ensures secure connectivity and requires passwords or other
109 forms of authentication to access.
110 (g) Licensee ensures that appropriate security updates,
111 patches, or other alterations to the security of all devices
112 used at remote locations are installed and maintained.
113 (h) Licensee has an ability to remotely lock or erase
114 company-related contents of any device or otherwise remotely
115 limit all access to a company's secure systems.
116 (i) The Nationwide Multistate Licensing System and
117 Registry's record of a loan originator who works from a remote
118 location designates the principal place of business as the loan
119 originator's registered location or the loan originator has
120 elected a licensed branch office as a registered location.
121 Section 2. Subsection (1) of section 494.0067, Florida
122 Statutes, is amended to read:
123 494.0067 Requirements of mortgage lenders.—
124 (1) A mortgage lender that makes mortgage loans on real
125 estate in this state shall transact business from a principal
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126 place of business, branch office, or remote location. Each
127 principal place of business, and each branch office, and remote
128 location shall be operated under the full charge, control, and
129 supervision of the licensee pursuant to this part.
130 Section 3. Section 501.2042, Florida Statutes, is created
131 to read:
132 501.2042 Unlawful acts and practices by online crowd -
133 funding campaigns.—
134 (1) As used in this section, the term:
135 (a) "Crowd-funding campaign" means an online fundraising
136 initiative that is intended to receive monetary donations from
137 donors and is created by an organizer in the interest of a
138 beneficiary.
139 (b) "Crowd-funding platform" means an entity doing
140 business in this state and that provides an online medium for
141 the creation and facilitation of a crowd-funding campaign.
142 (c) "Disaster" means any natural, technological, or civil
143 emergency that occurs in this state and that causes damage of
144 sufficient severity and magnitude to result in a declaration of
145 a state of emergency by a county, the Governor, or the Presiden t
146 of the United States.
147 (d) "Organizer" means a person who:
148 1. Resides or is domiciled in this state.
149 2. Has an account on a crowd-funding platform and has
150 created a crowd-funding campaign either as a beneficiary or on
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151 behalf of a beneficiary, regardless of whether the beneficiary
152 or the crowd-funding campaign has received donations.
153 (2) When an organizer arranges a crowd-funding campaign
154 related to a disaster, the organizer must produce to the crowd-
155 funding platform a complete and accurate accounting of all
156 donations received and expended by the crowd-funding campaign.
157 The crowd-funding platform must publish all received accountings
158 on its website.
159 Section 4. Section 520.23, Florida Statutes, is amended to
160 read:
161 520.23 Disclosures required.—Each agreement governing the
162 sale or lease of a distributed energy generation system shall,
163 at a minimum, include a written statement printed in at least
164 12-point type that is separate from the agreement, is separately
165 acknowledged by the buyer or lessee, and includes the following
166 information and disclosures, if applicable:
167 (1) The name, address, telephone number, and e-mail
168 address of the buyer or lessee.
169 (2) The name, address, telephone number, e-mail address,
170 and valid state contractor license number of the person
171 responsible for installing the distributed energy generation
172 system.
173 (3) The name, address, telephone number, e-mail address,
174 and valid state contractor license number of the distributed
175 energy generation system maintenance provider, if d ifferent from
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176 the person responsible for installing the distributed energy
177 generation system.
178 (4) The customer contact center phone number for the
179 Department of Business and Professional Regulation.
180 (5)(4) A written statement indicating whether the
181 distributed energy generation system is being purchased or
182 leased.
183 (a) If the distributed energy generation system will be
184 leased, the written statement must include a disclosure in
185 substantially the following form: "You are entering into an
186 agreement to lease a distributed energy generation system. You
187 will lease (not own) the system installed on your property."
188 (b) If the distributed energy generation system will be
189 purchased, the written statement must include a disclosure in
190 substantially the following form: "You are entering into an
191 agreement to purchase a distributed energy generation system.
192 You will own (not lease) the system installed on your property."
193 (6)(5) The total cost to be paid by the buyer or lessee,
194 including any interest, installation fees, document preparation
195 fees, service fees, or other fees.
196 (7)(6) A payment schedule, including any amounts owed at
197 contract signing, at the commencement of installation, at the
198 completion of installation, and any final payments. If the
199 distributed energy generation system is being leased, the
200 written statement must include the frequency and amount of each
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201 payment due under the lease and the total estimated lease
202 payments over the term of the lease.
203 (8)(7) Each state or federal tax incentive or rebate, if
204 any, relied upon by the seller in determining the price of the
205 distributed energy generation system.
206 (9)(8) A description of the assumptions used to calculate
207 any savings estimates provided to the buyer or lessee, and if
208 such estimates are provided, a statement in substantially the
209 following form: "It is important to understand that future
210 electric utility rates are estimates only. Your future electric
211 utility rates may vary."
212 (10)(9) A description of any one-time or recurring fees,
213 including, but not limited to, estimated system removal fees,
214 maintenance fees, Internet connection fees, and automated
215 clearinghouse fees. If late fees may apply, the description must
216 describe the circumstances triggering such late fees.
217 (11)(10) A statement notifying the buyer whether the
218 distributed energy generation system is being financed and, if
219 so, a statement in substantially the following form: "If your
220 system is financed, carefully read any agreements and/or
221 disclosure forms provided by your lender. This statement does
222 not contain the terms of your financing agreement. If you have
223 any questions about your financing agreement, contact your
224 finance provider before signing a contract."
225 (12)(11) A statement notifying the buyer whether the
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226 seller is assisting in arranging financing of the distributed
227 energy generation system and, if so, a statement in
228 substantially the following form: "If your system is financed,
229 carefully read any agreements and/or disclosure forms provided
230 by your lender. This statement does not contain the terms of
231 your financing agreement. If you have any questions about your
232 financing agreement, contact your finance provider before
233 signing a contract."
234 (13)(12) A provision notifying the buyer or lessee of the
235 right to rescind the agreement for a period of at least 3
236 business days after the agreement is signed. This subsection
237 does not apply to a contract to sell or lease a distributed
238 energy generation system in a solar community in which the
239 entire community has been marketed as a solar community and all
240 of the homes in the community are intended to have a distributed
241 energy generation system, or a solar community in which the
242 developer has incorporated solar technology for purposes of
243 meeting the Florida Building Code in s. 553.73.
244 (14)(13) A description of the distributed energy
245 generation system design assumptions, including the make and
246 model of the major components, system size, estimated first-year
247 energy production, and estimated annual energy production
248 decreases, including the overall percentage degradation over the
249 estimated life of the distributed energy generation system, and
250 the status of utility compensation for excess energy generated
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251 by the system at the time of contract signing. A seller who
252 provides a warranty or guarantee of the energy production output
253 of the distributed energy generation system may provide a
254 description of such warranty or guarantee in lieu of a
255 description of the system design and components.
256 (15)(14) A description of any performance or production
257 guarantees.
258 (16)(15) A description of the ownership and
259 transferability of any tax credits, rebates, incentives, or
260 renewable energy certificates associated with the distribute d
261 energy generation system, including a disclosure as to whether
262 the seller will assign or sell any associated renewable energy
263 certificates to a third party.
264 (17)(16) A statement in substantially the following form:
265 "You are responsible for property taxes on property you own.
266 Consult a tax professional to understand any tax liability or
267 eligibility for any tax credits that may result from the
268 purchase of your distributed energy generation system."
269 (18)(17) The approximate start and completion dates for
270 the installation of the distributed energy generation system.
271 (19)(18) A disclosure as to whether maintenance and
272 repairs of the distributed energy generation system are included
273 in the purchase price.
274 (20)(19) A disclosure as to whether any warranty or
275 maintenance obligations related to the distributed energy
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276 generation system may be sold or transferred by the seller to a
277 third party and, if so, a statement in substantially the
278 following form: "Your contract may be assigned, sold, or
279 transferred without your consent to a third party who will be
280 bound to all the terms of the contract. If a transfer occurs,
281 you will be notified if this will change the address or phone
282 number to use for system maintenance or repair requests."
283 (21)(20) If the distributed energy generation system will
284 be purchased, a disclosure notifying the buyer of the
285 requirements for interconnecting the system to the utility
286 system.
287 (22)(21) A disclosure notifying the buyer or lessee of the
288 party responsible for obtaining interconnection approval.
289 (23)(22) A description of any roof warranties.
290 (24) A statement in substantially the following form: "You
291 should consider the age and remaining life of your roof prior to
292 installing a distributed energy generation system. Replacement
293 of your roof may require re-installment of the distributed
294 energy generation system."
295 (25)(23) A disclosure notifying the lessee whether the
296 seller will insure a leased distributed energy generation system
297 against damage or loss and, if applicable, the circ umstances
298 under which the seller will not insure the system against damage
299 or loss.
300 (26)(24) A statement, if applicable, in substantially the
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301 following form: "You are responsible for obtaining insurance
302 policies or coverage for any loss of or damage to t he system.
303 Consult an insurance professional to understand how to protect
304 against the risk of loss or damage to the system."
305 (27) A statement in substantially the following form:
306 "Placing a distributed energy generation system on your roof may
307 impact your future insurance premiums. You are responsible for
308 contacting your insurance carrier, prior to entering into a
309 purchase or lease agreement, to confirm whether your current
310 policy or coverage will need to be modified upon installing the
311 distributed energy generation system onto your dwelling."
312 (28)(25) A disclosure notifying the buyer or lessee
313 whether the seller or lessor will place a lien on the buyer's or
314 lessee's home or other property as a result of entering into a
315 purchase or lease agreement for the distributed energy
316 generation system.
317 (29)(26) A disclosure notifying the buyer or lessee
318 whether the seller or lessor will file a fixture filing or a
319 State of Florida Uniform Commercial Code Financing Statement
320 Form (UCC-1) on the distributed energy generation system.
321 (30)(27) A disclosure identifying whether the agreement
322 contains any restrictions on the buyer's or lessee's ability to
323 modify or transfer ownership of a distributed energy generation
324 system, including whether any modification or transfer is
325 subject to review or approval by a third party.
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326 (31)(28) A disclosure as to whether the lease agreement
327 may be transferred to a purchaser upon sale of the home or real
328 property to which the system is affixed, and any conditions for
329 such transfer.
330 (32)(29) A blank section that allows the seller to provide
331 additional relevant disclosures or explain disclosures made
332 elsewhere in the disclosure form.
333
334 The requirement to provide a written statement under this
335 section may be satisfied by the electronic delivery of a
336 document within 24 hours of execution of the written statement
337 containing the required statement if the intended recipient of
338 the electronic document affirmatively acknowledges its receipt.
339 An electronic document satisfies the font and other formatting
340 standards required for the written statement if the format and
341 the relative size of characters of the electronic document are
342 reasonably similar to those required in the written document or
343 if the information is otherwise displayed in a reasonab ly
344 conspicuous manner.
345 Section 5. Section 626.551, Florida Statutes, is amended
346 to read:
347 626.551 Notice of change of address, name.—A licensee must
348 notify the department, in writing, within 5 30 days after a
349 change of name, residence address, principal business street
350 address, mailing address, contact telephone numbers, including a
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351 business telephone number, or e-mail address. A licensee who has
352 moved his or her principal place of residence and principal
353 place of business from this state shall have his or her license
354 and all appointments immediately terminated by the department.
355 Failure to notify the department within the required time shall
356 result in a fine not to exceed $250 for the first offense and a
357 fine of at least $500 or suspension or revocation of the license
358 pursuant to s. 626.611, s. 626.6115, s. 626.621, or s. 626.6215
359 for a subsequent offense. The department may adopt rules to
360 administer and enforce this section.
361 Section 6. Section 626.602, Florida Statutes, is amended
362 to read:
363 626.602 Insurance agency and adjusting firm names;
364 disapproval.—The department may disapprove the use of any true
365 or fictitious name, other than the bona fide natural name of an
366 individual, by any insurance agency or adjusting firm on any of
367 the following grounds:
368 (1) The name interferes with or is too similar to a name
369 already filed and in use by another agency, or adjusting firm,
370 or insurer.
371 (2) The use of the name may mislead the public in any
372 respect.
373 (3) The name states or implies that the agency or
374 adjusting firm is an insurer, motor club, hospital service plan,
375 state or federal agency, charitable organization, or entity that
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376 primarily provides advice and counsel rather than sells or
377 solicits insurance, settles claims, or is entitled to engage in
378 insurance activities not permitted under licenses held or
379 applied for. This provision does not prohibit the use of the
380 word "state" or "states" in the name of the agency. The use of
381 the word "state" or "states" in the name of an agency or
382 adjusting firm does not in and of itself imply that the agency
383 or adjusting firm is a state agency.
384 (4)(a) The name contains the word "Medicare" or
385 "Medicaid."
386 (b) An insurance agency whose name contains the word
387 "Medicare" or "Medicaid" but which is licensed as of July 1,
388 2021, may continue to use that name until June 30, 2023,
389 provided that the agency's license remains valid. If the
390 agency's license expires or is suspended or revoked, the agency
391 may not be relicensed using that name. Licenses for agencies
392 with names containing either of these words automatically expire
393 on July 1, 2023, unless these words are removed from the name.
394 This paragraph is repealed July 1, 2023.
395 Section 7. Section 626.854, Florida Statutes, is amended
396 to read:
397 626.854 "Public adjuster" defined; prohibitions.—The
398 Legislature finds that it is necessary for the protection of the
399 public to regulate public insurance adjusters and to prevent the
400 unauthorized practice of law.
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401 (1) A "public adjuster" is any person, except a duly
402 licensed attorney at law as exempted under s. 626.860, who, for
403 money, commission, or any other thing of value, directly or
404 indirectly prepares, completes, or files an insurance claim for
405 an insured or third-party claimant, regardless of how that
406 person describes or presents his or her services, or who, for
407 money, commission, or any other thing of value, acts on behalf
408 of, or aids an insured or third-party claimant in negotiating
409 for or effecting the settlement of a claim or claims for loss or
410 damage covered by an insurance contract, regardless of how that
411 person describes or presents his or her services, or who
412 advertises for employment as an adjuster of such claims. The
413 term also includes any person who, for money, commission, or any
414 other thing of value, directly or indirectly solicits,
415 investigates, or adjusts such claims on behalf of a public
416 adjuster, an insured, or a third-party claimant. The term does
417 not include a person who photographs or inventories damaged
418 personal property or business personal property or a pe rson
419 performing duties under another professional license, if such
420 person does not otherwise solicit, adjust, investigate, or
421 negotiate for or attempt to effect the settlement of a claim.
422 (2) This definition does not apply to:
423 (a) A licensed health care provider or employee thereof
424 who prepares or files a health insurance claim form on behalf of
425 a patient.
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426 (b) A licensed health insurance agent who assists an
427 insured with coverage questions, medical procedure coding
428 issues, balance billing issues, understanding the claims filing
429 process, or filing a claim, as such assistance relates to
430 coverage under a health insurance policy.
431 (c) A person who files a health claim on behalf of another
432 and does so without compensation.
433 (3) A public adjuster may not give legal advice or act on
434 behalf of or aid any person in negotiating or settling a claim
435 relating to bodily injury, death, or noneconomic damages.
436 (4) For purposes of this section, the term "insured"
437 includes only the policyholder and any beneficiaries named or
438 similarly identified in the policy.
439 (5) A public adjuster may not directly or indirectly
440 through any other person or entity solicit an insured or
441 claimant by any means except on Monday through Saturday of each
442 week and only between the hours of 8 a.m. and 8 p.m. on those
443 days.
444 (6)(a) When entering a contract for adjuster services
445 after July 1, 2023, a public adjuster is prohibited from
446 contracting with anyone other than the named insured unless the
447 named insured provides written consent, subsequent to entering a
448 contract for public adjusting services.
449 (b) In the event a public adjuster contracts with a third
450 party in settling the named insured's claim, without first
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451 obtaining the insured's written consent, payment of the third
452 party's fees shall be made from the public adjuster's fee.
453 (7)(6) An insured or claimant may cancel a public
454 adjuster's contract to adjust a claim without penalty or
455 obligation within 10 days after the date on which the contract
456 is executed. If the contract was entered into based on events
457 that are the subject of a declaration of a state of emergency by
458 the Governor, an insured or claimant may cancel the public
459 adjuster's contract to adjust a claim without penalty or
460 obligation within 30 days after the date on which the contract
461 is executed. The public adjuster's contract must contain the
462 following language in minimum 18-point bold type immediately
463 before the space reserved in the contract for the signature of
464 the insured or claimant: "You, the insured, may cancel this
465 contract for any reason without penalty or obligation to you
466 within 10 days after the date of this contract. If this contract
467 was entered into based on events that are the subject of a
468 declaration of a state of emergency by the Governor, you may
469 cancel this contract for any reason without penalty or
470 obligation to you within 30 days after the date of this
471 contract. You may also cancel the contract without penalty or
472 obligation to you if I, as your public adjuster, fail to provide
473 you and your insurer a copy of a written estimate within 45 days
474 of the execution of the contract in accordance with s.
475 626.854(15)(b), Florida Statutes." The by providing notice of
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476 cancellation shall be provided to ...(name of public
477 adjuster)..., submitted in writing and sent by cert ified mail,
478 return receipt requested, or other form of mailing that provides
479 proof thereof, at the address specified in the contract.
480 (8)(7) It is an unfair and deceptive insurance trade
481 practice pursuant to s. 626.9541 for a public adjuster or any
482 other person to circulate or disseminate any advertisement,
483 announcement, or statement containing any assertion,
484 representation, or statement with respect to the business of
485 insurance which is untrue, deceptive, or misleading.
486 (a) The following statements, made in any public
487 adjuster's advertisement or solicitation, are considered
488 deceptive or misleading:
489 1. A statement or representation that invites an insured
490 policyholder to submit a claim when the policyholder does not
491 have covered damage to insured property.
492 2. A statement or representation that invites an insured
493 policyholder to submit a claim by offering monetary or other
494 valuable inducement.
495 3. A statement or representation that invites an insured
496 policyholder to submit a claim by stating that ther e is "no
497 risk" to the policyholder by submitting such claim.
498 4. A statement or representation, or use of a logo or
499 shield, that implies or could mistakenly be construed to imply
500 that the solicitation was issued or distributed by a
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501 governmental agency or is sanctioned or endorsed by a
502 governmental agency.
503 (b) For purposes of this paragraph, the term "written
504 advertisement" includes only newspapers, magazines, flyers, and
505 bulk mailers. The following disclaimer, which is not required to
506 be printed on standard size business cards, must be added in
507 bold print and capital letters in typeface no smaller than the
508 typeface of the body of the text to all written advertisements
509 by a public adjuster:
510 "THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD A
511 CLAIM FOR AN INSURED PROPERTY LOSS OR DAMAGE AND YOU ARE
512 SATISFIED WITH THE PAYMENT BY YOUR INSURER, YOU MAY
513 DISREGARD THIS ADVERTISEMENT."
514 (9)(8) A public adjuster, a public adjuster apprentice, or
515 any person or entity acting on behalf of a public adjuster or
516 public adjuster apprentice may not give or offer to give a
517 monetary loan or advance to a client or prospective client.
518 (10)(9) A public adjuster, public adjuster apprentice, or
519 any individual or entity acting on behalf of a public adjuster
520 or public adjuster apprentice may not give or offer to give,
521 directly or indirectly, any article of merchandise having a
522 value in excess of $25 to any individual for the purpose of
523 advertising or as an inducement to entering into a contract with
524 a public adjuster.
525 (11) If the insurer, not later than 14 days after the date
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526 on which the loss is reported to the insurer, either pays or
527 commits in writing to pay to the insured the policy limit of the
528 insurance policy, the public adjuster shall:
529 (a) Inform the insured that, due to the insurer's payment
530 or commitment to pay the policy limit, the loss recovery amount
531 might not be increased by the insurer.
532 (b) Not receive a commission consisting of a percentage of
533 the total amount paid by an insurer to resolve the claim.
534 (c) Be entitled only to reasonable compensation from the
535 insured for the time spent and expenses incurred on the claim by
536 the public adjuster, until the claim is paid or the insured
537 receives a written commitment to pay from the insurer.
538 (12) If the public adjuster enters into a contract with an
539 insured or claimant after the insured or claimant unsuccessfully
540 negotiates an insurance claim payment and the public adjuster is
541 successful in obtaining a higher insurance claim payment, the
542 public adjuster shall receive a commission consisting of 10
543 percent of the difference between the initial insurance claim
544 payment offer made to the insured and the final insurance claim
545 payment obtained through the work of the public adjuster after
546 entering into the contract with the insured or claimant.
547 (13)(10)(a) If a public adjuster enters into a contract
548 with an insured or claimant to reopen a claim or file a
549 supplemental claim that seeks additional payments for a claim
550 that has been previously paid in part or in full or settled by
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551 the insurer, the public adjuster may not charge, agree to, or
552 accept from any source compensation, payment, commission, fee,
553 or any other thing of value based on a previous settlement or
554 previous claim payments by the insurer for the same c ause of
555 loss. The charge, compensation, payment, commission, fee, or any
556 other thing of value must be based only on the claim payments or
557 settlements paid to the insured, exclusive of attorney fees and
558 costs, obtained through the work of the public adjuster after
559 entering into the contract with the insured or claimant.
560 Compensation for the reopened or supplemental claim may not
561 exceed 20 percent of the reopened or supplemental claim payment.
562 In no event shall the contracts described in this paragraph
563 exceed the limitations in paragraph (b).
564 (b) A public adjuster may not charge, agree to, or accept
565 from any source compensation, payment, commission, fee, or any
566 other thing of value in excess of:
567 1. Ten percent of the amount of insurance claim payments
568 or settlements, exclusive of attorney fees and costs, paid to
569 the insured by the insurer for claims based on events that are
570 the subject of a declaration of a state of emergency by the
571 Governor. This provision applies to claims made during the year
572 after the declaration of emergency. After that year, the
573 limitations in subparagraph 2. apply.
574 2. Twenty percent of the amount of insurance claim
575 payments or settlements, exclusive of attorney fees and costs,
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576 paid to the insured by the insurer for claims that are n ot based
577 on events that are the subject of a declaration of a state of
578 emergency by the Governor.
579 (c) Insurance claim payments made by the insurer do not
580 include policy deductibles, and public adjuster compensation may
581 not be based on the deductible portion of a claim.
582 (d) Public adjuster compensation may not be based on
583 amounts attributable to additional living expenses, unless such
584 compensation is affirmatively agreed to in a separate agreement
585 that includes a disclosure in substantially the following form:
586 "I agree to retain and compensate the public adjuster for
587 adjusting my additional living expenses and securing payment
588 from my insurer for amounts attributable to additional living
589 expenses payable under the policy issued on my (home/mobile
590 home/condominium unit)."
591 (e) Public adjuster rate of compensation may not be
592 increased based solely on the fact that the claim is litigated.
593 (f) Any maneuver, shift, or device through which the
594 limits on compensation set forth in this subsection are exceeded
595 is a violation of this chapter punishable as provided under s.
596 626.8698.
597 (14)(a)(11) Each public adjuster must provide to the
598 claimant or insured a written estimate of the loss to assist in
599 the submission of a proof of loss or any other claim for payment
600 of insurance proceeds within 60 days after the date of the
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601 contract. The written estimate must include an itemized, per -
602 unit estimate of the repairs, including itemized information on
603 equipment, materials, labor, and supplies, in accordance with
604 accepted industry standards. The public adjuster shall retain
605 such written estimate for at least 5 years and shall make the
606 estimate available to the claimant or insured, the insurer, and
607 the department upon request.
608 (b) An insured may cancel the contract with no additional
609 penalties or fees charged by the public adjuster if such an
610 estimate is not provided within 45 days, subject to the
611 cancellation notice requirement in this section.
612 (15)(12) A public adjuster, public adjuster apprentice, or
613 any person acting on behalf of a public adjuster or apprentice
614 may not accept referrals of business from any person with whom
615 the public adjuster conducts business if there is any form or
616 manner of agreement to compensate the person, directly or
617 indirectly, for referring business to the public adjuster. A
618 public adjuster may not compensate any person, except for
619 another public adjuster, directly or indirectly, for the
620 principal purpose of referring business to the public adjuster.
621 (16)(13) A company employee adjuster, independent
622 adjuster, attorney, investigator, or other persons acting on
623 behalf of an insurer that needs access to an insured or claimant
624 or to the insured property that is the subject of a claim must
625 provide at least 48 hours' notice to the insured or claimant ,
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626 public adjuster, or legal representative before scheduling a
627 meeting with the claimant or an onsite inspection of the insured
628 property. The insured or claimant may deny access to the
629 property if the notice has not been provided. The insured or
630 claimant may waive the 48-hour notice.
631 (17)(14) The public adjuster must ensure that prompt
632 notice is given of the claim to the insurer, the public
633 adjuster's contract is provided to the insurer, the property is
634 available for inspection of the loss or damage by the insurer,
635 and the insurer is given an opportunity to interview the insured
636 directly about the loss and claim. The insurer must be allowed
637 to obtain necessary information to investigate and respond to
638 the claim.
639 (a) The insurer may not exclude the public adjuster from
640 its in-person meetings with the insured. The insurer shall meet
641 or communicate with the public adjuster in an effort to reach
642 agreement as to the scope of the covered loss under the
643 insurance policy. The public adjuster shall meet or communicate
644 with the insurer in an effort to reach agreement as to the scope
645 of the covered loss under the insurance policy. This section
646 does not impair the terms and conditions of the insurance policy
647 in effect at the time the claim is filed.
648 (b) A public adjuster may not restrict or prevent an
649 insurer, company employee adjuster, independent adjuster,
650 attorney, investigator, or other person acting on behalf of the
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651 insurer from having reasonable access at reasonable times to any
652 insured or claimant or to the insured property that is the
653 subject of a claim.
654 (c) A public adjuster may not act or fail to reasonably
655 act in any manner that obstructs or prevents an insurer or
656 insurer's adjuster from timely conducting an inspection of any
657 part of the insured property for which there is a claim for loss
658 or damage. The public adjuster representing the insureds may be
659 present for the insurer's inspection, but if the unavailability
660 of the public adjuster otherwise delays the insurer's timely
661 inspection of the property, the public adjuster or the insureds
662 must allow the insurer to have access to the property without
663 the participation or presence of the public adjuster or insureds
664 in order to facilitate the insurer's prompt inspection of the
665 loss or damage.
666 (18)(15) A licensed contractor under part I of chapter
667 489, or a subcontractor of such licensee, may not advertise,
668 solicit, offer to handle, handle, or perform public adjuster
669 services as provided in subsection (1) unless licensed and
670 compliant as a public adjuster under this chapter. The
671 prohibition against solicitation does not preclude a contractor
672 from suggesting or otherwise recommending to a consumer that the
673 consumer consider contacting his or her insurer to determine if
674 the proposed repair is covered under the consumer's insurance
675 policy, except as it relates to solicitation prohibited in s.
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676 489.147. In addition, the contractor may discuss or explain a
677 bid for construction or repair of covered property with the
678 residential property owner who has suffered loss or damage
679 covered by a property insurance policy, or the insurer of such
680 property, if the contractor is doing so for the usual and
681 customary fees applicable to the work to be performed as stated
682 in the contract between the contractor and the insured.
683 (19)(16) A public adjuster shall not acquire any interest
684 in salvaged property, except with the written consent and
685 permission of the insured through a signed affidavit.
686 (20)(17) A public adjuster, a public adjuster apprentice,
687 or a person acting on behalf of an adjuster or apprentice may
688 not enter into a contract or accept a power of attorney that
689 vests in the public adjuster, the public adjuster apprentice, or
690 the person acting on behalf of the adjuster or apprentice the
691 effective authority to choose the persons or entities that will
692 perform repair work in a property insurance claim or provide
693 goods or services that will require the insured or third -party
694 claimant to expend funds in excess of those payable to the
695 public adjuster under the terms of the contract for adjusting
696 services.
697 (21)(18) Subsections (5)-(20) (5)-(17) apply only to
698 residential property insurance policies and condominium unit
699 owner policies as described in s. 718.111(11).
700 (22)(19) Except as otherwise provided in this chapter, no
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701 person, except an attorney at law or a licensed public adjuster,
702 may for money, commission, or any other thing of value, directly
703 or indirectly:
704 (a) Prepare, complete, or file an insurance claim for an
705 insured or a third-party claimant;
706 (b) Act on behalf of or aid an insured or a third-party
707 claimant in negotiating for or effecting the settlement of a
708 claim for loss or damage covered by an insurance contract;
709 (c) Offer to initiate or negotiate a claim on behalf of an
710 insured;
711 (d) Advertise services that require a license as a public
712 adjuster; or
713 (e) Solicit, investigate, or adjust a claim on behalf of a
714 public adjuster, an insured, or a third-party claimant.
715 (23)(20) The department may take administrative actions
716 and impose fines against any persons performing claims
717 adjusting, soliciting, or any other services described in this
718 section without the licensure required under this section or s.
719 626.112.
720 (24)(21) A public adjuster, public adjuster apprentice, or
721 public adjusting firm that solicits a claim and does not enter
722 into a contract with an insured or a third-party claimant
723 pursuant to paragraph (13)(a) (10)(a) may not charge an insured
724 or a third-party claimant or receive payment by any other source
725 for any type of service related to the insured or third-party
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726 claimant's claim.
727 (25)(22)(a) Any following act by a public adjuster, a
728 public adjuster apprentice, or a person acting on behalf of a
729 public adjuster or public adjuster apprentice is prohibited and
730 shall result in discipline as applicable under this part:
731 1. Offering to a residential property owner a rebate,
732 gift, gift card, cash, coupon, waiver of any insurance
733 deductible, or any other thing of value in exchange for:
734 a. Allowing a contractor, a public adjuster, a public
735 adjuster apprentice, or a person acting on behalf of a public
736 adjuster or public adjuster apprentice to conduct an inspection
737 of the residential property owner's roof; or
738 b. Making an insurance claim for damage to the residential
739 property owner's roof.
740 2. Offering, delivering, receiving, or accepting any
741 compensation, inducement, or reward for the referral of any
742 services for which property insurance proceeds would be used for
743 roofing repairs or replacement.
744 (b) Notwithstanding the fine set forth in s. 626.8698, a
745 public adjuster or public adjuster apprentice may be subject to
746 a fine not to exceed $10,000 per act for a violation of this
747 subsection and a fine not to exceed $20,000 per act for a
748 violation of this subsection that occurs during a state of
749 emergency declared by executive order or proclamation of the
750 Governor pursuant to s. 252.36.
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751 (c) A person who engages in an act prohibited by this
752 subsection and who is not a public adjuster or a public adjuster
753 apprentice, or is not otherwise exempt from licensure, is guilty
754 of the unlicensed practice of public adjusting and may be:
755 1. Subject to all applicable penalties set forth in this
756 part.
757 2. Notwithstanding subparagraph 1., subject to a fine not
758 to exceed $10,000 per act for a violation of this subsection and
759 a fine not to exceed $20,000 per act for a violation of this
760 subsection that occurs during a state of emergency declared by
761 executive order or proclamation of the Governor pursuant to s.
762 252.36.
763 Section 8. Section 626.860, Florida Statutes, is amended
764 to read:
765 626.860 Attorneys at law; exemption.—Attorneys at law duly
766 licensed to practice law in the courts of this state, and in
767 good standing with The Florida Bar, shall not be required to be
768 licensed under the provisions of this code to authorize them to
769 adjust or participate in the adjustment of any claim, loss, or
770 damage arising under policies or contracts of insurance. This
771 exemption does not extend to the employees, interns, volunteers,
772 or contractors of an attorney or of a law firm.
773 Section 9. Section 626.865, Florida Statutes, is amended
774 to read:
775 626.865 Public adjuster's qualifications;, bond; errors
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776 and omissions insurance.—
777 (1) The department shall issue a license to an applicant
778 for a public adjuster's license upon determining that the
779 applicant has paid the applicable fees specified in s. 624.501
780 and possesses the following qualifications:
781 (a) Is a natural person at least 18 years of age.
782 (b) Is a United States citizen or legal alien who
783 possesses work authorization from the United States Bureau of
784 Citizenship and Immigration Services.
785 (c) Is trustworthy and has such business reputation as
786 would reasonably assure that the applicant will conduct his or
787 her business as insurance adjuster fairly and in good faith and
788 without detriment to the public.
789 (d) Has not been found guilty of or has not pleaded guilty
790 or nolo contendere to any crime involving theft or dishonesty,
791 regardless of adjudication, within the last 10 years.
792 (e)(d) Has had sufficient experience, training, or
793 instruction concerning the adjusting of damages or losses under
794 insurance contracts, other than life and annuity contracts, is
795 sufficiently informed as to the terms and effects of the
796 provisions of those types of insurance contracts, and possesses
797 adequate knowledge of the laws of this state relating to such
798 contracts as to enable and qualify him or her to engage in the
799 business of insurance adjuster fairly and without injury to the
800 public or any member thereof with whom the applicant may have
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801 business as a public adjuster.
802 (f)(e) Has been licensed and appointed in this state as a
803 nonresident public adjuster on a continual basis for the
804 previous 6 months, or has been licensed as an all-lines
805 adjuster, and has been appointed on a continual basis for the
806 previous 6 months as a public adjuster apprentice under s.
807 626.8561, as an independent adjuster under s. 626.855, or as a
808 company employee adjuster under s. 626.856.
809 (2) At the time of application for license as a public
810 adjuster, the applicant shall file with the department a bond
811 executed and issued by a surety insurer authorized to transact
812 such business in this state, in the amount of $50,000,
813 conditioned for the faithful performance of his or her duties as
814 a public adjuster under the license for which the appli cant has
815 applied, and thereafter maintain the bond unimpaired throughout
816 the existence of the license.
817 (a) The bond must be in favor of the department and must
818 specifically authorize recovery by the department of the damages
819 sustained in case the licensee is guilty of fraud or unfair
820 practices in connection with his or her business as public
821 adjuster.
822 (b) The bond must remain in effect for 1 year after the
823 expiration or termination of the license.
824 (c) The aggregate liability of the surety for all such
825 damages may not exceed the amount of the bond. The bond may not
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826 be terminated unless at least 30 days' written notice is given
827 to the licensee and filed with the department.
828 (3) At the time of application for license as a public
829 adjuster, the applicant must file with the department a current
830 certificate of an errors and omissions policy executed by and
831 issued by an admitted insurer authorized to issue errors and
832 omissions policies in this state, which shall be in the minimum
833 amount of $500,000 per occurrence.
834 (4)(3) The department may not issue a license as a public
835 adjuster to any individual who has not passed the examination
836 for a public adjuster's license. Any individual who is applying
837 for reinstatement of a license after completion of a period of
838 suspension and any individual who is applying for a new license
839 after termination, cancellation, revocation, or expiration of a
840 prior license as a public adjuster must pass the examination
841 required for licensure as a public adjuster after approval of
842 the application for reinstatement or for a new license
843 regardless of whether the applicant passed an examination prior
844 to issuance of the license that was suspended, terminated,
845 canceled, revoked, or expired.
846 Section 10. Section 626.875, Florida Statutes, is amended
847 to read:
848 626.875 Office and records.—
849 (1)(a) Each appointed independent adjuster and licensed
850 public adjuster must maintain a place of business in this state
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851 which is accessible to the public and keep therein the usual and
852 customary records pertaining to transactions under the license.
853 This provision does not prohibit maintenance of such an office
854 in the home of the licensee.
855 (b) A license issued under this chapter must at all times
856 be posted in a conspicuous place in the principal place of
857 business of the license holder. If the licensee is conducting
858 business away from the place of business such that the license
859 cannot be posted, the licensee shall have such license in his or
860 her actual possession at the time of carrying on such business.
861 (2) The records of the adjuster relating to a particular
862 claim or loss shall be so retained in the adjuster's place of
863 business for a period of not less than 5 years after completion
864 of the adjustment and shall be available for inspection by the
865 department at all times. This provision shall not be deemed to
866 prohibit return or delivery to the insurer or insured of
867 documents furnished to or prepared by the adjuster and required
868 by the insurer or insured to be returned or delivered thereto.
869 At a minimum, the following records must be maintained for a
870 period of not less than 5 years:
871 (a) Name, address, telephone number, and e-mail address of
872 the insured, and the name of the attorney representing the
873 insured, if applicable.
874 (b) The date, location, and amount of the loss.
875 (c) An unaltered copy of the executed disclosure document
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876 required by s. 626.8796.
877 (d) An unaltered copy of the executed public adjuster
878 contract required by s. 626.8796.
879 (e) A copy of the estimate of damages provided to the
880 insurer.
881 (f) The name of the insurer; the name of the claims
882 representative of the insurer; and the amount, expiration date,
883 and number of each policy under which the loss is covered.
884 (g) An itemized statement of the recoveries by the insured
885 from the sources known to the adjuster.
886 (h) An itemized statement of all compensation received by
887 the public adjuster from any source, in connection with the
888 loss.
889 (i) A register of all money received, deposited,
890 disbursed, and withdrawn in connection with a transaction with
891 the insured, including fees, transfers, and disbursements in
892 connection with the loss.
893 Section 11. Section 626.8751, Florida Statutes, is created
894 to read:
895 626.8751 Payment of claim.—When a claim is settled while
896 the insured is represented by a public adjuster, the insurer
897 shall issue the payment in check form. A total of two checks
898 shall be issued. The first check shall be made payable to the
899 public adjuster as payee, but not in excess of the amount of the
900 public adjuster's fee, as indicated in the executed public
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901 adjuster contract signed by the insured and submitted to the
902 insurer. The second check must reflect the balance of the
903 proceeds and be payable to the insured as the payee in the form
904 of a separate check.
905 Section 12. Section 626.8796, Florida Statutes, is amended
906 to read:
907 626.8796 Public adjuster contracts; disclosure statement;
908 fraud statement.—
909 (1) All contracts for public adjuster services must be in
910 writing in at least 12-point font, titled "Public Adjuster
911 Contract" and prominently display the following statement on the
912 contract in minimum 18-point bold type before the space reserved
913 for in the contract for the signature of the insured: "Pursuant
914 to s. 817.234, Florida Statutes, any person who, with the intent
915 to injure, defraud, or deceive an insurer or insured, prepares,
916 presents, or causes to be presented a proof of loss or estimate
917 of cost or repair of damaged property in support of a claim
918 under an insurance policy knowing that the proof of loss or
919 estimate of claim or repairs contains false, incomplete, or
920 misleading information concerning any fact or thing material to
921 the claim commits a felony of the third degree, punishable as
922 provided in s. 775.082, s. 775.083, or s. 775.084, Florida
923 Statutes."
924 (2) A public adjuster contract relating to a property and
925 casualty claim must contain the full name, permanent business
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926 address, phone number, e-mail address, and license number of the
927 public adjuster; the full name of the public adjusting firm; and
928 the insured's full name, and street address, phone number, and
929 e-mail address, together with a brief description of the loss.
930 The contract must state the percentage of compensation for the
931 public adjuster's services in minimum 18-point bold type before
932 the space reserved for in the contract for the signature of the
933 insured; the type of claim, including an emergency claim,
934 nonemergency claim, or supplemental claim; the initials of the
935 named insured on each page that does not contain the insured's
936 signature; the signatures of the public adjuster and all named
937 insureds; and the signature date. If all of the named insureds'
938 signatures are not available, the public adjuster must submit an
939 affidavit signed by the available named insureds attesting that
940 they have authority to enter into the contract and settle all
941 claim issues on behalf of the named insureds. An unaltered copy
942 of the executed contract must be remitted to the insured at the
943 time of execution and to the insurer within 3 30 days after
944 execution. A public adjusting firm that adjusts claims pri marily
945 for commercial entities with operations in more than one state
946 and that does not directly or indirectly perform adjusting
947 services for insurers or individual homeowners is deemed to
948 comply with the requirements of this subsection if, at the time
949 a proof of loss is submitted, the public adjusting firm remits
950 to the insurer an affidavit signed by the public adjuster or
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951 public adjuster apprentice that identifies:
952 (a) The full name, permanent business address, phone
953 number, e-mail address, and license number of the public
954 adjuster or public adjuster apprentice.
955 (b) The full name of the public adjusting firm.
956 (c) The insured's full name, and street address, phone
957 number, and e-mail address together with a brief description of
958 the loss.
959 (d) An attestation that the compensation for public
960 adjusting services will not exceed the limitations provided by
961 law.
962 (e) The type of claim, including an emergency claim,
963 nonemergency claim, or supplemental claim.
964 (3) The public adjuster shall not provide services until
965 both the insured and insurer have been provided with unaltered
966 copies of the executed contract.
967 (4) The insured may rescind the contract for public
968 adjuster services if the public adjuster has not submitted a
969 written estimate to the insurer within 45 days of executing the
970 contract.
971 (5) Before the signing of the contract, the public
972 adjuster shall provide the insured with a separate disclosure
973 document to be signed by the insured, on a form adopted by the
974 department, regarding the claim process that accomplishes the
975 following:
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976 (a) Defines the following types of adjusters who may be
977 involved in the claim process: company adjuster, independent
978 adjuster, and public adjuster.
979 (b) Explains that the public adjuster is not a
980 representative or employee of the insurer.
981 (c) Explains that the insured is not required to hire a
982 public adjuster, but has a right to do so.
983 (d) Explains that an insured has a right to initiate
984 direct communications with the insured's attorney, the insurer,
985 the company adjuster, the insurer's attorney, or any person
986 regarding the settlement of the insured's claim.
987 (e) Explains that the public adjuster's salary, fee,
988 commission, or other consideration to be paid to a public
989 adjuster is the insured's responsibility.
990 (f) Explains that the public adjuster is required to
991 provide the insured an unaltered copy of the executed contract
992 at the time of execution.
993 (g) Explains that if the contract was entered based on
994 events that are the subject of a declaration of a state of
995 emergency by the Governor, the insured has a right to rescind
996 the contract within 30 days.
997 (h) The public adjuster shall provide an unaltered copy of
998 the executed disclosure document to the insured at the time of
999 execution.
1000 (6) A contract that does not comply with this section is
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1001 invalid and unenforceable.
1002 (7) The department may adopt rules pursuant to ss.
1003 120.536(1) and 120.54 to implement this section, including rules
1004 to adopt forms required by this section.
1005 Section 13. Section 626.8797, Florida Statutes, is amended
1006 to read:
1007 626.8797 Proof of loss; fraud statement.—All proof-of-loss
1008 statements must prominently display the following statement in
1009 minimum 18-point bold type before the space reserved in the
1010 contract for the signature of the insured: "Pursuant to s.
1011 817.234, Florida Statutes, any person who, with the intent to
1012 injure, defraud, or deceive any insurer or insured, prepares,
1013 presents, or causes to be presented a proof of loss or estimate
1014 of cost or repair of damaged property in support of a claim
1015 under an insurance policy knowing that the proof of loss or
1016 estimate of claim or repairs contains any false, incomplete, or
1017 misleading information concerning any fact or thing material to
1018 the claim commits a felony of the third degree, punis hable as
1019 provided in s. 775.082, s. 775.083, or s. 775.084, Florida
1020 Statutes."
1021 Section 14. Paragraph (a) of subsection (1) of section
1022 626.9541, Florida Statutes, is amended to read:
1023 626.9541 Unfair methods of competition and unfair or
1024 deceptive acts or practices defined.—
1025 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
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1026 ACTS.—The following are defined as unfair methods of competition
1027 and unfair or deceptive acts or practices:
1028 (a) Misrepresentations and false advertising of insurance
1029 policies.—Knowingly making, issuing, circulating, or causing to
1030 be made, issued, or circulated, any estimate, illustration,
1031 circular, statement, sales presentation, omission, comparison,
1032 or property and casualty certificate of insurance altered after
1033 being issued, which:
1034 1. Misrepresents the benefits, advantages, conditions, or
1035 terms of any insurance policy.
1036 2. Misrepresents the dividends or share of the surplus to
1037 be received on any insurance policy.
1038 3. Makes any false or misleading statements as to the
1039 dividends or share of surplus previously paid on any insurance
1040 policy.
1041 4. Is misleading, or is a misrepresentation, as to the
1042 financial condition of any person or as to the legal reserve
1043 system upon which any life insurer operates.
1044 5. Uses any name or title of any insurance policy or class
1045 of insurance policies misrepresenting the true nature thereof.
1046 6. Is a misrepresentation for the purpose of inducing, or
1047 tending to induce, the lapse, forfeiture, exchange, conversion,
1048 or surrender of any insurance policy.
1049 7. Is a misrepresentation for the purpose of effecting a
1050 pledge or assignment of, or effecting a loan against, any
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1051 insurance policy.
1052 8. Misrepresents any insurance policy as being shares of
1053 stock or misrepresents ownership interest in the compan y.
1054 9. Uses any advertisement that would mislead or otherwise
1055 cause a reasonable person to believe mistakenly that the state
1056 or the Federal Government is responsible for the insurance sales
1057 activities of any person or stands behind any person's credit or
1058 that any person, the state, or the Federal Government guarantees
1059 any returns on insurance products or is a source of payment of
1060 any insurance obligation of or sold by any person.
1061 10. Fails to disclose a third party that receives
1062 royalties, referral fees, or other remuneration for sponsorship,
1063 marketing, or use of third-party branding for a health insurance
1064 contract as defined in s. 624.603.
1065 Section 15. Paragraph (c) of subsection (2) of section
1066 627.4025, Florida Statutes, is amended, and paragraph (d) is
1067 added to that subsection, to read:
1068 627.4025 Residential coverage and hurricane coverage
1069 defined.—
1070 (2) As used in policies providing residential coverage:
1071 (c) "Hurricane" for purposes of paragraphs (a) and (b)
1072 means a storm system that has been declared to be a hurricane by
1073 the National Hurricane Center of the National Weather Service.
1074 The duration of the hurricane includes the time period, in
1075 Florida:
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1076 1. Beginning at the time a hurricane watch or hurricane
1077 warning is issued for any part of Florida by the National
1078 Hurricane Center of the National Weather Service; and
1079 2. Continuing for the time period during which the
1080 hurricane conditions exist anywhere in Florida; and
1081 2.3. Ending 24 72 hours following the termination of the
1082 last hurricane watch or hurricane warning issued for any part of
1083 Florida by the National Hurricane Center of the National Weather
1084 Service.
1085 (d) "Hurricane deductible" means the deductible applicable
1086 to loss caused by a hurricane.
1087 Section 16. Paragraph (b) of subsection (1) and paragraph
1088 (b) of subsection (2) of section 627.4133, Florida Statutes, are
1089 amended to read:
1090 627.4133 Notice of cancellation, nonrenewal, or renewal
1091 premium.—
1092 (1) Except as provided in subsection (2):
1093 (b) An insurer issuing a policy providing coverage for
1094 property, casualty, except mortgage guaranty, surety, or marine
1095 insurance, other than motor vehicle insurance subject to s.
1096 627.728 or s. 627.7281, shall give the first-named insured
1097 written notice of cancellation or termination other than
1098 nonrenewal at least 45 days prior to the effective date of the
1099 cancellation or termination, including in the written notice the
1100 reason or reasons for the cancellation or termination, except
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1101 that:
1102 1. When cancellation is for nonpayment of premium, at
1103 least 10 days' written notice of cancellation accompanied by the
1104 reason therefor shall be given. As used in this subparagraph and
1105 s. 440.42(3), the term "nonpayment of premium" means failure of
1106 the named insured to discharge when due any of her or his
1107 obligations in connection with the payment of premiums on a
1108 policy or any installment of such premium, whether the premium
1109 is payable directly to the insurer or its agent or indirectly
1110 under any premium finance plan or extension of credit, or
1111 failure to maintain membership in an organization if such
1112 membership is a condition precedent to insurance coverage.
1113 "Nonpayment of premium" also means the failure of a financial
1114 institution to honor an insurance applicant's check after
1115 delivery to a licensed agent for payment of a premium, even if
1116 the agent has previously delivered or transferred the premium to
1117 the insurer. If a dishonored check represents the initial
1118 premium payment, the contract and all contractual obligations
1119 shall be void ab initio unless the nonpayment is cured within
1120 the earlier of 5 days after actual notice by certified mail is
1121 received by the applicant or 15 days after notice is sent to the
1122 applicant by certified mail or registered mail, and if the
1123 contract is void, any premium received by the insurer fr om a
1124 third party shall be refunded to that party in full; and
1125 2. When such cancellation or termination occurs during the
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1126 first 90 days during which the insurance is in force and the
1127 insurance is canceled or terminated for reasons other than
1128 nonpayment of premium, at least 20 days' written notice of
1129 cancellation or termination accompanied by the reason therefor
1130 shall be given except where there has been a material
1131 misstatement or misrepresentation or failure to comply with the
1132 underwriting requirements established by the insurer.
1133
1134 After the policy has been in effect for 60 90 days, no such
1135 policy shall be canceled by the insurer except when there has
1136 been a material misstatement, a nonpayment of premium, a failure
1137 to comply with underwriting requirements established by the
1138 insurer within 90 days of the date of effectuation of coverage,
1139 or a substantial change in the risk covered by the policy or
1140 when the cancellation is for all insureds under such policies
1141 for a given class of insureds. This subsection does not apply to
1142 individually rated risks having a policy term of less than 90
1143 days.
1144 (2) With respect to any personal lines or commercial
1145 residential property insurance policy, including, but not
1146 limited to, any homeowner, mobile home owner, farmowner,
1147 condominium association, condominium unit owner, apartment
1148 building, or other policy covering a residential structure or
1149 its contents:
1150 (b) The insurer shall give the first-named insured written
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1151 notice of nonrenewal, cancellation, or termination at least 120
1152 days before the effective date of the nonrenewal, cancellation,
1153 or termination. The notice must include the reason for the
1154 nonrenewal, cancellation, or termination, except that:
1155 1. If cancellation is for nonpayment of premium, at least
1156 10 days' written notice of cancellation accompanied by the
1157 reason therefor must be given. As used in this subparagraph, the
1158 term "nonpayment of premium" means failure of the named insured
1159 to discharge when due her or his obligations for paying the
1160 premium on a policy or an installment of such premium, whether
1161 the premium is payable directly to the insurer or its agent or
1162 indirectly under a premium finance plan or extension of credit,
1163 or failure to maintain membership in an organization if such
1164 membership is a condition precedent to insurance coverage. The
1165 term also means the failure of a financial institution to honor
1166 an insurance applicant's check after delivery to a licensed
1167 agent for payment of a premium even if the agent has previously
1168 delivered or transferred the premium to the insurer. If a
1169 dishonored check represents the initial premium payment, the
1170 contract and all contractual obligations are void ab initio
1171 unless the nonpayment is cured within the earlier of 5 days
1172 after actual notice by certified mail is received by the
1173 applicant or 15 days after notice is sent to the applicant by
1174 certified mail or registered mail. If the contract is void, any
1175 premium received by the insurer from a third party must be
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1176 refunded to that party in full.
1177 2. If cancellation or termination occurs during the first
1178 90 days the insurance is in force and the insurance is canceled
1179 or terminated for reasons other than nonpayment of premium, at
1180 least 20 days' written notice of cancellation or termination
1181 accompanied by the reason therefor must be given unless there
1182 has been a material misstatement or misrepresentation or a
1183 failure to comply with the underwriting requirements established
1184 by the insurer.
1185 3. After the policy has been in effect for 60 90 days, the
1186 policy may not be canceled by the insurer unless there has been
1187 a material misstatement; a nonpayment of premium; a failure to
1188 comply, within 90 days after the date of effectuation of
1189 coverage, with underwriting requirements established by the
1190 insurer before the date of effectuation of coverage; or a
1191 substantial change in the risk covered by the policy or unless
1192 the cancellation is for all insureds under such policies for a
1193 given class of insureds. This subparagraph does not apply to
1194 individually rated risks that have a policy term of less tha n 90
1195 days.
1196 4. After a policy or contract has been in effect for more
1197 than 90 days, the insurer may not cancel or terminate the policy
1198 or contract based on credit information available in public
1199 records.
1200 5. A policy that is nonrenewed by Citizens Proper ty
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1201 Insurance Corporation, pursuant to s. 627.351(6), for a policy
1202 that has been assumed by an authorized insurer offering
1203 replacement coverage to the policyholder is exempt from the
1204 notice requirements of paragraph (a) and this paragraph. In such
1205 cases, the corporation must give the named insured written
1206 notice of nonrenewal at least 45 days before the effective date
1207 of the nonrenewal.
1208 6. Notwithstanding any other provision of law, an insurer
1209 may cancel or nonrenew a property insurance policy after at
1210 least 45 days' notice if the office finds that the early
1211 cancellation of some or all of the insurer's policies is
1212 necessary to protect the best interests of the public or
1213 policyholders and the office approves the insurer's plan for
1214 early cancellation or nonrenewal of some or all of its policies.
1215 The office may base such finding upon the financial condition of
1216 the insurer, lack of adequate reinsurance coverage for hurricane
1217 risk, or other relevant factors. The office may condition its
1218 finding on the consent of the insurer to be placed under
1219 administrative supervision pursuant to s. 624.81 or to the
1220 appointment of a receiver under chapter 631.
1221 7. A policy covering both a home and a motor vehicle may
1222 be nonrenewed for any reason applicable to the property or motor
1223 vehicle insurance after providing 90 days' notice.
1224 Section 17. Section 627.4554, Florida Statutes, is amended
1225 to read:
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1226 627.4554 Annuity investments.—
1227 (1) PURPOSE.—The purpose of this section is to require
1228 agents to act in the best interest of the consumer when making
1229 a recommendation of an annuity and to require insurers to
1230 establish and maintain a system to supervise so set forth
1231 standards and procedures for making recommendations to consumers
1232 which result in transactions involving annuity prod ucts, and to
1233 establish a system for supervising such recommendations in order
1234 to ensure that the insurance needs and financial objectives of
1235 consumers are effectively appropriately addressed at the time of
1236 the transaction.
1237 (2) SCOPE.—This section applies to any sale or
1238 recommendation of made to a consumer to purchase, exchange, or
1239 replace an annuity by an insurer or its agent, and which results
1240 in the purchase, exchange, or replacement recommended .
1241 (3) DEFINITIONS.—As used in this section, the term:
1242 (a) "Agent" means a person or entity required to be
1243 licensed under the laws of this state to sell, solicit, or
1244 negotiate insurance, including annuities. For purposes of this
1245 section, the term includes an insurer where no agent is involved
1246 has the same meaning as provided in s. 626.015.
1247 (b) "Annuity" means an insurance product under state law
1248 which is individually solicited, whether classified as an
1249 individual or group annuity.
1250 (c) "Cash compensation" means any discount, concession,
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1251 fee, service fee, commission, sales charge, loan, override, or
1252 cash benefit received by an agent in connection with the
1253 recommendation or sale of an annuity from an insurer,
1254 intermediary, or directly from the consumer.
1255 (d) "Consumer profile information" means information that
1256 is reasonably appropriate to determine whether a recommendation
1257 addresses the consumer's financial situation, insurance needs
1258 and financial objectives, including, at a minimum, the
1259 following:
1260 1. Age.
1261 2. Annual income.
1262 3. Financial situation and needs, including debts and
1263 other obligations.
1264 4. Financial experience.
1265 5. Insurance needs.
1266 6. Financial objectives.
1267 7. Intended use of the annuity.
1268 8. Financial time horizon.
1269 9. Existing assets or financial products, including
1270 investment, annuity, and insurance holdings.
1271 10. Liquidity needs.
1272 11. Liquid net worth.
1273 12. Risk tolerance, including, but not limited to,
1274 willingness to accept nonguaranteed elements in the annuity.
1275 13. Financial resources used to fund the annuity.
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1276 14. Tax status.
1277 (e)(c) "FINRA" means the Financial Industry Regulatory
1278 Authority or a succeeding agency.
1279 (f)(d) "Insurer" has the same meaning as provided in s.
1280 624.03.
1281 (g) "Intermediary" means an entity contracted directly
1282 with an insurer or with another entity contracted with an
1283 insurer to facilitate the sale of the insurer's annuities by
1284 agents.
1285 (h) "Material conflict of interest" means a financial
1286 interest of the agent in the sale of an annuity that a
1287 reasonable person would expect to influence the impartia lity of
1288 a recommendation. The term does not include cash compensation or
1289 noncash compensation.
1290 (i) "Noncash compensation" means any form of compensation
1291 that is not cash compensation, including, but not limited to,
1292 health insurance, office rent, office support, and retirement
1293 benefits.
1294 (j) "Nonguaranteed elements" means the premiums, credited
1295 interest rates, including any bonus; benefits; values;
1296 dividends; noninterest based credits; charges; or elements of
1297 formulas used to determine any of these, that are subject to
1298 company discretion and are not guaranteed at issue. An element
1299 is considered nonguaranteed if any of the underlying
1300 nonguaranteed elements are used in its calculation.
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1301 (k)(e) "Recommendation" means advice provided by an
1302 insurer or its agent to an individual a consumer that was
1303 intended to result or does result which would result in a the
1304 purchase, an exchange, or a replacement of an annuity in
1305 accordance with that advice. The term does not include general
1306 communication to the public, generalized customer services,
1307 assistance or administrative support, general educational
1308 information and tools, prospectuses, or other product and sales
1309 material.
1310 (l)(f) "Replacement" means a transaction in which a new
1311 annuity policy or contract is to be purchased and it is known or
1312 should be known to the proposing insurer or its agent, or to the
1313 proposing insurer whether or not an agent is involved, that by
1314 reason of such transaction an existing annuity or other
1315 insurance policy has been or is to be any of the following or
1316 contract will be:
1317 1. Lapsed, forfeited, surrendered or partially
1318 surrendered, assigned to the replacing insurer, or otherwise
1319 terminated;
1320 2. Converted to reduced paid-up insurance, continued as
1321 extended term insurance, or otherwise reduced in value due to
1322 the use of nonforfeiture benefits or other policy values;
1323 3. Amended so as to effect a reduction in benefits or the
1324 term for which coverage would otherwise remain in force or for
1325 which benefits would be paid;
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1326 4. Reissued with a reduction in cash value; or
1327 5. Used in a financed purchase.
1328 (m) "SEC" means the United States Securities and Exchange
1329 Commission.
1330 (g) "Suitability information" means information related to
1331 the consumer which is reasonably appropriate to determine the
1332 suitability of a recommendation made to the consumer, including
1333 the following:
1334 1. Age;
1335 2. Annual income;
1336 3. Financial situation and needs, including the financial
1337 resources used for funding the annuity;
1338 4. Financial experience;
1339 5. Financial objectives;
1340 6. Intended use of the annuity;
1341 7. Financial time horizon;
1342 8. Existing assets, including investment and life
1343 insurance holdings;
1344 9. Liquidity needs;
1345 10. Liquid net worth;
1346 11. Risk tolerance; and
1347 12. Tax status.
1348 (4) EXEMPTIONS.—Unless otherwise specifically included,
1349 this section does not apply to transactions involving:
1350 (a) Direct-response solicitations where there is no
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1351 recommendation based on information collected from the consumer
1352 pursuant to this section;
1353 (b) Contracts used to fund:
1354 1. An employee pension or welfare benefit plan that is
1355 covered by the federal Employee Retirement and Income Security
1356 Act;
1357 2. A plan described by s. 401(a), s. 401(k), s. 403(b), s.
1358 408(k), or s. 408(p) of the Internal Revenue Code, if
1359 established or maintained by an employer;
1360 3. A government or church plan defined in s. 414 of the
1361 Internal Revenue Code, a government or church welfare benefit
1362 plan, or a deferred compensation plan of a state or local
1363 government or tax-exempt organization under s. 457 of the
1364 Internal Revenue Code; or
1365 4. A nonqualified deferred compensation arrangement
1366 established or maintained by an employer or plan sponsor;
1367 (c)5. Settlements or assumptions of liabilities associated
1368 with personal injury litigation or a dispute or claim-resolution
1369 process; or
1370 (d)6. Formal prepaid funeral contracts.
1371 (5) DUTIES OF INSURERS AND AGENTS.—
1372 (a) An agent, when making a recommendation of an annuity,
1373 shall act in the best interest of the consumer under the
1374 circumstances known at the time the recommendation is made,
1375 without placing the financial interest of the agent or insurer
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1376 ahead of the consumer's interest. An agent has acted in the best
1377 interest of the consumer if the agent has satisfied the
1378 following obligations regarding care, disclosure, conflict of
1379 interest, and documentation:
1380 1. a. The agent, in making a recommendation, shall
1381 exercise reasonable diligence, care, and skill to:
1382 (I) Know the financial situation, insurance needs, and
1383 financial objectives of the customer.
1384 (II) Understand the available options after making a
1385 reasonable inquiry into options available to the agent.
1386 (III) Have a reasonable basis to believe the recommended
1387 option effectively addresses the consumer's financial situation,
1388 insurance needs, and financial objectives over the life of the
1389 product, as evaluated in light of the consumer profile
1390 information.
1391 (IV) Communicate the reason or reasons for the
1392 recommendation.
1393 b. The requirements of subparagraph a. include:
1394 (I) Making reasonable efforts to obtain consumer profile
1395 information from the consumer before the recommendation of an
1396 annuity.
1397 (II) Requiring an agent to consider the types of products
1398 the agent is authorized and licensed to recommend or sell that
1399 address the consumer's financial situation, insurance needs and
1400 financial objectives. This does not require analysis or
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1401 consideration of any products outside the authority and license
1402 of the agent or other possible alternative products or
1403 strategies available in the market at the time of the
1404 recommendation. Agents shall be held to standards applicable to
1405 agents with similar authority and licensure.
1406 (III) Having a reasonable basis to believe the consumer
1407 would benefit from certain features of the annuity, such as
1408 annuitization, death or living benefit or other insurance-
1409 related features.
1410 c. The requirements of this subsection do not create a
1411 fiduciary obligation or relationship and only create a
1412 regulatory obligation as provided in this section.
1413 d. The consumer profile information, characteristics of
1414 the insurer and product costs, rates, benefits and features are
1415 those factors generally relevant in making a determination
1416 whether an annuity effectively addresses the consumer's
1417 financial situation, insurance needs, and financial o bjectives
1418 but the level of importance of each factor under the care
1419 obligation of this paragraph may vary depending on the facts and
1420 circumstances of a particular case. However, each factor may not
1421 be considered in isolation.
1422 e. The requirements under subparagraph a. apply to the
1423 particular annuity as a whole and the underlying subaccounts to
1424 which funds are allocated at the time of purchase or exchange of
1425 an annuity, and riders and similar product enhancements, if any.
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1426 f. Subparagraph a. does not require that the annuity with
1427 the lowest one-time occurrence compensation structure or
1428 multiple occurrence compensation structure shall necessarily be
1429 recommended.
1430 g. Subparagraph a. does require the agent to have ongoing
1431 monitoring obligations under the care obligation, although such
1432 an obligation may be separately owed under the terms of a
1433 fiduciary, consulting, investment, advising, or financial
1434 planning agreement between the consumer and the agent.
1435 h. In the case of an exchange or replacement of an
1436 annuity, the agent shall consider the whole transaction, which
1437 includes taking into consideration whether:
1438 (I) The consumer will incur a surrender charge; be subject
1439 to the commencement of a new surrender period; lose existing
1440 benefits, such as death, living or other contractual benefits;
1441 or be subject to increased fees, investment advisory fees, or
1442 charges for riders and similar product enhancements.
1443 (II) The replacing product would substantially benefit the
1444 consumer in comparison to the replaced product over the life of
1445 the product.
1446 (III) The consumer has had another annuity exchange or
1447 replacement and, in particular, an exchange or replacement
1448 within the preceding 60 months.
1449 i. This section does not require an agent to obtain any
1450 license other than an agent license with the appropriate line of
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1451 authority to sell, solicit, or negotiate insurance in this
1452 state, including, but not limited to, any securities license, in
1453 order to fulfill the duties and obligations contained in this
1454 section; provided the agent does not give advice or provide
1455 services that are otherwise subject to securities laws or engage
1456 in any other activity requiring other professional licenses.
1457 2. Disclosure obligation.
1458 a. Before the recommendation or sale of an annuity, the
1459 agent shall prominently disclose to the consumer on a form
1460 substantially similar to that posted on the office website as
1461 Appendix A:
1462 (I) A description of the scope and terms of the
1463 relationship with the consumer and the role of the agent in the
1464 transaction.
1465 (II) An affirmative statement on whether the agent is
1466 licensed and authorized to sell the following products:
1467 (A) Fixed annuities.
1468 (B) Fixed indexed annuities.
1469 (C) Variable annuities.
1470 (D) Life insurance.
1471 (E) Mutual funds.
1472 (F) Stocks and bonds.
1473 (G) Certificates of deposit.
1474 (III) An affirmative statement describing the insurers for
1475 which the agent is authorized, contracted or appointed, or
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1476 otherwise able to sell insurance products, using the following
1477 descriptions:
1478 (A) From one insurer;
1479 (B) From two or more insurers; or
1480 (C) From two or more insurers, although primarily
1481 contracted with one insurer.
1482 (IV) A description of the sources and types of cash
1483 compensation and noncash compensation to be received by the
1484 agent, including whether the agent is to be compensated for the
1485 sale of a recommended annuity by commission as part of premium
1486 or other remuneration received from the insurer, intermediary or
1487 other agent, or by fee as a result of a contract for advice or
1488 consulting services; and
1489 (V) A notice of the consumer's right to request additional
1490 information regarding cash compensation described in
1491 subparagraph b.
1492 b. Upon request of the consumer or the consumer's
1493 designated representative, the agent shall disclose:
1494 (I) A reasonable estimate of the amount of cash
1495 compensation to be received by the agent, which may be stated as
1496 a range of amounts or percentages.
1497 (II) Whether the cash compensation is a one-time or
1498 multiple occurrence amount, and if a multiple occurrence amount,
1499 the frequency and amount of the occurrence, which may be stated
1500 as a range of amounts or percentages; and When recommending the
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1501 purchase or exchange of an annuity to a consumer which results
1502 in an insurance transaction or series of insurance transactions,
1503 the agent, or the insurer where no agent is involved, must have
1504 reasonable grounds for believing that the recommendation is
1505 suitable for the consumer, based on the consumer's suitability
1506 information, and that there is a reasonable basis to believe all
1507 of the following:
1508 c.1. Before or at the time of the recommendation or sale
1509 of an annuity, the agent shall have a reasonable basis to
1510 believe the consumer has been reasonably informed of various
1511 features of the annuity, such as the potential surrender period
1512 and surrender charge; potential tax penalty if the consumer
1513 sells, exchanges, surrenders, or annuitizes the annuity;
1514 mortality and expense fees; any annual fees; investment advisory
1515 fees; potential charges for and features of riders or other
1516 options of the annuity; limitations on interest returns;
1517 potential changes in nonguaranteed elements of the annuity;
1518 insurance and investment components; and market risk.
1519 2. The consumer would benefit from certain features of the
1520 annuity, such as tax-deferred growth, annuitization, or the
1521 death or living benefit.
1522 3. An agent shall identify and avoid or reasonably manage
1523 and disclose material conflicts of interest, including material
1524 conflicts of interest related to an ownership interest.
1525 4. An agent shall at the time of the recommendation or
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1526 sale:
1527 a. Make a written record of any recommendation and the
1528 basis for the recommendation, subject to this section.
1529 b. Obtain a consumer signed statement on a form
1530 substantially similar to that posted on the office website as
1531 Appendix B, documenting:
1532 (I) A customer's refusal to provide the consumer profile
1533 information, if any.
1534 (II) A customer's understanding of the ramifications of
1535 not providing his or her consumer profile information or
1536 providing insufficient consumer profile information.
1537 c. Obtain a consumer signed statement on a form
1538 substantially similar to that posted on the office website as
1539 Appendix C, acknowledging the annuity transaction is not
1540 recommended if a customer decides to enter into an annuity
1541 transaction that is not based on the agent's recommendation.
1542 5. Application of the best interest obligation. Any
1543 requirement applicable to an agent under this subsection shall
1544 apply to every agent who has exercised material control or
1545 influence in the making of a recommendation and has received
1546 direct compensation as a result of the recommendation or sale,
1547 regardless of whether the agent has had any direct contact with
1548 the consumer. Activities such as providing or delivering
1549 marketing or education materials, product wholesaling or other
1550 back office product support, and general supervision of an agent
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1551 do not, in and of themselves, constitute material control or
1552 influence.
1553 3. The particular annuity as a whole, the underlying
1554 subaccounts to which funds are allocated at the time of purchase
1555 or exchange of the annuity, and riders and similar product
1556 enhancements, if any, are suitable; and, in the case of an
1557 exchange or replacement, the transaction as a whole is suitable
1558 for the particular consumer based on his or her suitability
1559 information.
1560 4. In the case of an exchange or replacement of an
1561 annuity, the exchange or replacement is suitable after
1562 considering whether the consumer:
1563 a. Will incur a surrender charge; be subject to the
1564 commencement of a new surrender period; lose existing benefits,
1565 such as death, living, or other contractual benefits; or be
1566 subject to increased fees, investment advisory fees, or charges
1567 for riders and similar product enhancements;
1568 b. Would benefit from product enhancements and
1569 improvements; and
1570 c. Has had another annuity exchange or replacement,
1571 including an exchange or replacement within the preceding 36
1572 months.
1573 (b) Before executing a purchase, exchange, or replacement
1574 of an annuity resulting from a recommendation, an insurer or its
1575 agent must make reasonable efforts to obtain the consumer's
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1576 suitability information. The information shall be collected on
1577 form DFS-H1-1980, which is hereby incorporated by reference, and
1578 completed and signed by the applicant and agent. Questions
1579 requesting this information must be presented in at least 12-
1580 point type and be sufficiently clear so as to be readily
1581 understandable by both the agent and the consumer. A true and
1582 correct executed copy of the form must be provided by the agent
1583 to the insurer, or to the person or entity that has contracted
1584 with the insurer to perform this function as authorized by this
1585 section, within 10 days after execution of the form, and shall
1586 be provided to the consumer no later than the date of delivery
1587 of the contract or contracts.
1588 (c) Except as provided under paragraph (d), an insurer may
1589 not issue an annuity recommended to a consumer unless there is a
1590 reasonable basis to believe the annuity is suitable based on the
1591 consumer's suitability information.
1592 (b)(d) 1. Except as provided under subparagraph 2, An
1593 insurer's issuance of an annuity must be reasonable based on all
1594 the circumstances actually known to the insurer at the time the
1595 annuity is issued. However, an insurer or its agent shall not
1596 have does not have an obligation to a consumer related to an
1597 annuity transaction under paragraph (a)1.(a) or paragraph (c)
1598 if:
1599 a.1. A recommendation has not been made;
1600 b.2. A recommendation was made and is later found to have
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1601 been based on materially inaccurate information provided by the
1602 consumer;
1603 c.3. A consumer refuses to provide relevant suitability
1604 information and the annuity transaction is not recommended; or
1605 d.4. A consumer decides to enter into an annuity
1606 transaction that is not based on a recommendation of an insurer
1607 or its agent.
1608 2. An insurer's issuance of an annuity subject to
1609 subparagraph 1. shall be reasonable under all the circumstances
1610 actually known to the insurer at the time the annuity is issued.
1611 (c)1. Except as permitted under paragraph (b), an insurer
1612 may not issue an annuity recommended to a consumer unless there
1613 is a reasonable basis to believe the annuity would effectively
1614 address the particular consumer's financial situation, insurance
1615 needs, and financial objectives based on the consumer's consumer
1616 profile information.
1617 (e) At the time of sale, the agent or the agent's
1618 representative must:
1619 1. Make a record of any recommendation made to the
1620 consumer pursuant to paragraph (a);
1621 2. Obtain the consumer's signed statement documenting his
1622 or her refusal to provide suitability information, if
1623 applicable; and
1624 3. Obtain the consumer's signed statement acknowledging
1625 that an annuity transaction is not recommended if he or she
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1626 decides to enter into an annuity transaction that is not based
1627 on the insurer's or its agent's recommendation, if applicable.
1628 (f) Before executing a replacement or exchange of an
1629 annuity contract resulting from a recommendation, the agent must
1630 provide on form DFS-H1-1981, which is hereby incorporated by
1631 reference, information that compares the differences between the
1632 existing annuity contract and the annuity contract being
1633 recommended in order to determine the suitability of the
1634 recommendation and its benefit to the consumer. A true and
1635 correct executed copy of this form must be provided by the ag ent
1636 to the insurer, or to the person or entity that has contracted
1637 with the insurer to perform this function as authorized by this
1638 section, within 10 days after execution of the form, and must be
1639 provided to the consumer no later than the date of delivery of
1640 the contract or contracts.
1641 2.(g) An insurer shall establish and maintain a
1642 supervision system that is reasonably designed to achieve the
1643 insurer's and its agent's compliance with this section
1644 including, but not limited to, the following:.
1645 1. Such system must include, but is not limited to:
1646 a. The insurer shall establish and maintain Maintaining
1647 reasonable procedures to inform its agents of the requirements
1648 of this section and incorporating those requirements into
1649 relevant agent training manuals.;
1650 b. The insurer shall establish and maintain Establishing
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1651 standards for agent product training and shall establish and
1652 maintain reasonable procedures to require its agents to comply
1653 with the requirements of subsection (6).;
1654 c. The insurer shall provide Providing product-specific
1655 training and training materials that explain all material
1656 features of its annuity products to its agents.;
1657 d. The insurer shall establish and maintain Maintaining
1658 procedures for the review of each recommendation before issuance
1659 of an annuity which are designed to ensure that there is a
1660 reasonable basis to determine the recommended annuity would
1661 effectively address the particular consumer's financial
1662 situation, insurance needs, and financial objectives for
1663 determining that a recommendation is suitable. Such review
1664 procedures may use a screening system for identifying selected
1665 transactions for additional review and may be accomplished
1666 electronically or through other means, including, but not
1667 limited to, physical review. Such electronic or other system may
1668 be designed to require additional review only of those
1669 transactions identified for additional review using established
1670 selection criteria.;
1671 e. The insurer shall establish and maintain Maintaining
1672 reasonable procedures to detect recommendations that are not in
1673 compliance with paragraphs (a), (b), (d), and (e). This may
1674 include, but is not limited to suitable, such as confirmation of
1675 consumer suitability information, systematic customer surveys,
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1676 agent and consumer interviews, confirmation letters, agent
1677 statements or attestations, and internal monitoring programs.
1678 This sub-subparagraph does not prevent an insurer from using
1679 sampling procedures or from confirming the consumer profile
1680 suitability information after the issuance or delivery of the
1681 annuity.; and
1682 f. The insurer shall establish and maintain reasonable
1683 procedures to assess, prior to, or upon issuance or delivery of,
1684 an annuity, whether an agent has provided to the consumer the
1685 information required to be provided under this subsection.
1686 g. The insurer shall establish and maintain reasonable
1687 procedures to identify and address suspicious consumer refusals
1688 to provide consumer profile information.
1689 h. The insurer shall establish and maintain reasonable
1690 procedures to identify and eliminate any sales contests, sales
1691 quotas, bonuses, and noncash compensation that are based on the
1692 sales of specific annuities within a limited period of time. The
1693 requirements of this subparagraph are not intended to prohibit
1694 the receipt of health insurance, office rents, office support,
1695 retirement benefits, or other employee benefits by employees as
1696 long as those benefits are not based upon the volume of sales of
1697 a specific annuity within a limited period of time.
1698 i.f. The insurer shall annually provide providing a
1699 written report to senior managers, including the senior manager
1700 who is responsible for audit functions, which details a review,
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1701 along with appropriate testing, which is reasonably designed to
1702 determine the effectiveness of the supervision system, the
1703 exceptions found, and corrective action taken or recommended, if
1704 any.
1705 3.2. An insurer is not required to include in its
1706 supervision system:
1707 a. Agent recommendations to consumers of products other
1708 than the annuities offered by the insurer;
1709 b. Consideration of or comparison to options available to
1710 the agent or compensation relating to those options other than
1711 annuities or other products offered by the insurer.
1712 4.3. An insurer may contract for performance of a
1713 function, including maintenance of procedures, required under
1714 subparagraph 1.
1715 a. An insurer's supervision system under this subsection
1716 shall include supervision of contractual performance under this
1717 subsection If an insurer contracts for the performance of a
1718 function, the insurer must include the supervision of
1719 contractual performance as part of those procedures listed in
1720 subparagraph 1. These include, but are not limited to:
1721 (I) Monitoring and, as appropriate, conducting audits to
1722 ensure that the contracted function is properly per formed; and
1723 (II) Annually obtaining a certification from a senior
1724 manager who has responsibility for the contracted function that
1725 the manager has a reasonable basis to represent, and does not
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1726 represent for representing that the function is being properly
1727 performed.
1728 b. An insurer is responsible for taking appropriate
1729 corrective action and may be subject to sanctions and penalties
1730 pursuant to subsection (8) (7) regardless of whether the insurer
1731 contracts for performance of a function and regardless of the
1732 insurer's compliance with sub-subparagraph a.
1733 (d)(h) Neither an agent nor an insurer shall may not
1734 dissuade, or attempt to dissuade, a consumer from:
1735 1. Truthfully responding to an insurer's request for
1736 confirmation of consumer profile suitability information;
1737 2. Filing a complaint; or
1738 3. Cooperating with the investigation of a complaint.
1739 (e)1.(i) Recommendations and sales made in compliance with
1740 comparable standards shall FINRA requirements pertaining to the
1741 suitability and supervision of annuity transactions satisfy the
1742 requirements of this section. This applies to all
1743 recommendations and FINRA broker-dealer sales of variable
1744 annuities made by financial professionals in compliance with
1745 business rules, controls, and procedures that satisfy a
1746 comparable standard even if such standard would not otherwise
1747 apply to the product or recommendation at issue and fixed
1748 annuities if the suitability and supervision is similar to those
1749 applied to variable annuity sales. However, this paragraph does
1750 not limit the ability of the office or the department to
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1751 investigate and enforce, including investigate, the provisions
1752 of this section.
1753 2. Subparagraph 1. shall not limit the insurer's
1754 obligation to comply with subsection (5)(c)1., although the
1755 insurer may base its analysis on information received from
1756 either the financial professional or the entity supervising the
1757 financial professional.
1758 3. For this paragraph to apply, an insurer shall must:
1759 a.1. Monitor relevant conduct of the financial
1760 professional seeking to rely on subparagraph 1. or the entity
1761 responsible for supervising the financial professional, such as
1762 the financial professional's broker-dealer or an investment
1763 adviser registered under federal or state securities law, the
1764 FINRA member broker-dealer using information collected in the
1765 normal course of an insurer's business; and
1766 b.2. Provide to the entity responsible for supervising the
1767 financial professional seeking to rely on subparagraph 1., such
1768 as the financial professional's broker dealer or investment
1769 adviser registered under federal or state securities laws, FINRA
1770 member broker-dealer information and reports that are reasonably
1771 appropriate to assist such entity the FINRA member broker-dealer
1772 in maintaining its supervision system.
1773 4. For purposes of this paragraph, the term:
1774 a. "Comparable standards" means:
1775 (I) With respect to broker-dealers and registered
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1776 representatives of broker-dealers, applicable SEC and FINRA
1777 rules pertaining to best interest obligations and supervision of
1778 annuity recommendations and sales including, but not limited to,
1779 Regulation Best Interest, 17 C.F.R. s. 240.15l–1, and any
1780 amendments or successor regulations thereto;
1781 (II) With respect to investment advisers registered under
1782 federal or state securities laws or investment adviser
1783 representatives, the fiduciary duties and all other requirements
1784 imposed on such investment advisers or investment adviser
1785 representatives by contract or under the Investment Advisers Act
1786 of 1940 or applicable state securities laws, including, but not
1787 limited to, Form ADV and interpretations; and
1788 (III) With respect to plan fiduciaries or fiduciaries, the
1789 duties, obligations, prohibitions and all other requirements
1790 attendant to such status under ERISA, or the IRC and any
1791 amendments or successor statutes thereto.
1792 b. "Financial professional" means an agent that is
1793 regulated and acting as:
1794 (I) A broker dealer registered under federal or state
1795 securities laws or a registered representative of a broker -
1796 dealer;
1797 (II) An investment adviser registered under federal or
1798 state securities laws or an investment adviser representative
1799 associated with the federal or state registered investment
1800 adviser; or
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1801 (III) A plan fiduciary under Section 3(21) of the Employee
1802 Retirement Income Security Act of 1974 (ERISA) or fiduciary
1803 under Section 4975(e)(3) of the Internal Revenue Code (IRC) or
1804 any amendments or successor statutes thereto.
1805 (6) AGENT TRAINING.—
1806 (a) An agent shall not solicit the sale of an annuity
1807 product unless the agent has adequate knowledge of the product
1808 to recommend the annuity and the agent is in compliance with the
1809 insurer's standards for product training. An agent may rely on
1810 insurer-provided product-specific training standards and
1811 materials to comply with this subsection.
1812 (b)1.a. An agent who engages in the sale of annuity
1813 products shall complete a one-time 4 hour training course. This
1814 requirement is not part of an agent's continuing education
1815 requirement in s. 626.2815; however, if a course provider
1816 submits and receives approval from the Department of Financial
1817 Services, then the course could also be eligible for continuing
1818 education credit pursuant to s. 626.2815.
1819 b. Agents who hold a life insurance line of authority on
1820 the effective date of this act and who desire to sell an nuities
1821 shall complete the requirements of this subsection within 6
1822 months after the effective date of this act. Individuals who
1823 obtain a life insurance line of authority after the effective
1824 date of this act may not engage in the sale of annuities until
1825 the annuity training course required under this subsection has
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1826 been completed.
1827 2. The minimum length of the training required under this
1828 subsection is 4 hours.
1829 3. The training required under this subsection shall
1830 include information on the following topics:
1831 a. The types of annuities and various classifications of
1832 annuities.
1833 b. Identification of the parties to an annuity.
1834 c. How product-specific annuity contract features affect
1835 consumers.
1836 d. The application of income taxation of qualified and
1837 nonqualified annuities.
1838 e. The primary uses of annuities.
1839 f. Appropriate standard of conduct, sales practices,
1840 replacement, and disclosure requirements.
1841 4. Providers of courses intended to comply with this
1842 subsection shall cover all topics listed in the prescribed
1843 outline and shall not present any marketing information or
1844 provide training on sales techniques or provide specific
1845 information about a particular insurer's products. Additional
1846 topics may be offered in conjunction with and in addition to the
1847 required outline.
1848 5. A provider of an annuity training course intended to
1849 comply with this subsection shall register as a continuing
1850 education provider in this state and comply with the rules and
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1851 guidelines applicable to agent continuing education courses as
1852 set forth in s. 626.2815.
1853 6. An agent who has completed an annuity training course
1854 approved by the Office of Insurance Regulation prior to the
1855 effective date of this act shall, within 6 months after the
1856 effective date of this act, complete either:
1857 a. A new four credit training course approved by Office of
1858 Insurance Regulation after the effective date of this act; or
1859 b. An additional one-time one credit training course
1860 approved by Office of Insurance Regulation and provided by the
1861 Office of Insurance Regulation-approved education provider on
1862 appropriate sales practices, replacement and disclosure
1863 requirements under this section.
1864 7. Annuity training courses may be conducted and completed
1865 by classroom or self-study methods in accordance with s.
1866 626.2815.
1867 8. Providers of annuity training shall comply with the
1868 reporting requirements and shall issue certificates of
1869 completion in accordance with s. 626.2815.
1870 9. The satisfaction of the training requirements of
1871 another state that are substantially similar to the provisions
1872 of this subsection shall be deemed to satisfy the training
1873 requirements of this subsection in this state.
1874 10. The satisfaction of the training requirements of any
1875 course or courses with components substantially similar to the
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1876 provisions of this subsection shall be deemed to satisfy the
1877 training requirements of this subsection in this state.
1878 11. An insurer shall verify that an agent has completed
1879 the annuity training course required under this subsection
1880 before allowing the agent to sell an annuity product for that
1881 insurer. An insurer may satisfy its responsibility under this
1882 subsection by obtaining certificates of completion of the
1883 training course or obtaining reports provided by commissioner -
1884 sponsored database systems or vendors or from a reasonably
1885 reliable commercial database vender that has a reporting
1886 arrangement with approved insurance education providers.
1887 (7)(6) RECORDKEEPING.—
1888 (a) Insurers and agents must maintain or be able to make
1889 available to the office or department records of the information
1890 collected from the consumer and other information used in making
1891 the recommendations that were the basis for insurance
1892 transactions for 5 years after the insurance transaction is
1893 completed by the insurer. An insurer may maintain the
1894 documentation on behalf of its agent.
1895 (b) Records required to be maintained under this
1896 subsection may be maintained in paper, photographic,
1897 microprocess, magnetic, mechanical, or electronic media, or by
1898 any process that accurately reproduces the actual document.
1899 (8)(7) COMPLIANCE MITIGATION; PENALTIES.—
1900 (a) An insurer is responsible for compliance with this
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1901 section. If a violation occurs because of the action or inaction
1902 of the insurer or its agent which results in harm to a consumer,
1903 the office may order the insurer to take reasonably appropriate
1904 corrective action for the consumer and may impose appropriate
1905 penalties and sanctions.
1906 (b) The department may order:
1907 1. An insurance agent to take reasonably appropriate
1908 corrective action for a consumer harmed by a violation of this
1909 section by the insurance agent, including monetary restitution
1910 of penalties or fees incurred by the consumer, and impose
1911 appropriate penalties and sanctions.
1912 2. A managing general agency or insurance agency that
1913 employs or contracts with an insurance agent to sell or solicit
1914 the sale of annuities to consumers to take reasonably
1915 appropriate corrective action for a consumer harmed by a
1916 violation of this section by the insurance agent.
1917 (c) In addition to any other penalty authorized under
1918 chapter 626, the department shall order an insurance agent to
1919 pay restitution to a consumer who has been deprived of money by
1920 the agent's misappropriation, conversion, or unlawful
1921 withholding of moneys belonging to the consumer in the course of
1922 a transaction involving annuities. The amount of restitution
1923 required to be paid may not exceed the amount misappropriated,
1924 converted, or unlawfully withheld. This paragraph does not limit
1925 or restrict a person's right to seek other remedies as provided
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1926 by law.
1927 (d) Any applicable penalty under the Florida Insurance
1928 Code for a violation of this section shall be reduced or
1929 eliminated according to a schedule adopted by the office or the
1930 department, as appropriate, if corrective action for the
1931 consumer was taken promptly after a violation was discovered.
1932 (e) A violation of this section does not create or imply a
1933 private cause of action.
1934 (9)(8) PROHIBITED CHARGES.—An annuity contract issued to a
1935 senior consumer age 65 or older may not contain a surrender or
1936 deferred sales charge for a withdrawal of money from an annuity
1937 exceeding 10 percent of the amount withdrawn. The charge shall
1938 be reduced so that no surrender or deferred sales charge exists
1939 after the end of the 10th policy year or 10 years after the date
1940 of each premium payment if multiple premiums are paid, whichever
1941 is later. This subsection does not apply to annuities purchased
1942 by an accredited investor, as defined in Regulation D as adopted
1943 by the United States Securities and Exchange Commission, or to
1944 those annuities specified in paragraph (4)(b).
1945 (10)(9) RULES.—The department and the commission may adopt
1946 rules to administer this section.
1947 Section 18. Paragraph (b) of subsection (8) of section
1948 634.041, Florida Statutes, is amended to read:
1949 634.041 Qualifications for license.—To qualify for and
1950 hold a license to issue service agreements in this state, a
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1951 service agreement company must be in compliance with this part,
1952 with applicable rules of the commission, with related sections
1953 of the Florida Insurance Code, and with its charter powers and
1954 must comply with the following:
1955 (8)
1956 (b) A service agreement company does not have to establish
1957 and maintain an unearned premium reserve if it secures and
1958 maintains contractual liability insurance in accordance with the
1959 following:
1960 1. Coverage of 100 percent of the claim exposure is
1961 obtained from an insurer approved by the office, which holds a
1962 certificate of authority under s. 624.401 to do business within
1963 this state, or secured through a risk retention gro up, which is
1964 authorized to do business within this state under s. 627.943 or
1965 s. 627.944. Such insurer or risk retention group must maintain a
1966 surplus as regards policyholders of at least $15 million.
1967 2. If the service agreement company does not meet its
1968 contractual obligations, the contractual liability insurance
1969 policy binds its issuer to pay or cause to be paid to the
1970 service agreement holder all legitimate claims and cancellation
1971 refunds for all service agreements issued by the service
1972 agreement company while the policy was in effect. This
1973 requirement also applies to those service agreements for which
1974 no premium has been remitted to the insurer.
1975 3. If the issuer of the contractual liability policy is
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1976 fulfilling the service agreements covered by the co ntractual
1977 liability policy and the service agreement holder cancels the
1978 service agreement, the issuer must make a full refund of
1979 unearned premium to the consumer, subject to the cancellation
1980 fee provisions of s. 634.121(3). The sales representative and
1981 agent must refund to the contractual liability policy issuer
1982 their unearned pro rata commission.
1983 4. The policy may not be canceled, terminated, or
1984 nonrenewed by the insurer or the service agreement company
1985 unless a 90-day written notice thereof has been given to the
1986 office by the insurer before the date of the cancellation,
1987 termination, or nonrenewal.
1988 5. The service agreement company must provide the office
1989 with the claims statistics.
1990 6. A policy issued in compliance with this subparagraph
1991 may either pay 100 percent of claims as they are incurred, or
1992 100 percent of claims due in the event of the failure of the
1993 service agreement company to pay such claims when due.
1994
1995 All funds or premiums remitted to an insurer by a motor vehicle
1996 service agreement company under this part shall remain in the
1997 care, custody, and control of the insurer and shall be counted
1998 as an asset of the insurer; provided, however, this requirement
1999 does not apply when the insurer and the motor vehicle service
2000 agreement company are affiliated companies and members of an
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2001 insurance holding company system. If the motor vehicle service
2002 agreement company chooses to comply with this paragraph but also
2003 maintains a reserve to pay claims, such reserve shall only be
2004 considered an asset of the covered motor vehicle service
2005 agreement company and may not be simultaneously counted as an
2006 asset of any other entity.
2007 Section 19. The Division of Law Revision is directed to
2008 replace the phrase "the effective date of this act" wherever it
2009 occurs in this act with the date this act becomes a law.
2010 Section 20. This act shall take effect upon becoming a
2011 law.
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COMMERCE COMMITTEE
HB 1185 by Rep. Giallombardo
Consumer Protection
AMENDMENT SUMMARY
March 21, 2023
Amendment 1 by Giallombardo (Strike-all): The strike-all amendment makes the following
modifications and clarifications to the bill as filed:
• Prohibits certain acts by check-cashing businesses.
• Changes the timeframes for cancellation public adjuster contracts consumers entered
into based on events that were the subject of a declared state of emergency.
• Changes the commission that a public adjuster can collect for services rendered when
an insurer agrees to pay policy limits to an insured to a flat fee of $1,000, rather than
reasonable compensation, because reasonable is an undefined term.
• Increases the proposed number of days that a public adjuster has to provide an estimate
to an insured and an insurer from 45 days to 60 days to conform with other statutory
provisions regarding public adjusters.
• Removes a proposed prohibition on the issuance of a public adjuster license to someone
who has pleaded guilty or nolo contendere to a crime involving theft or dishonesty within
the ten years preceding application. Current prohibitions are retained.
• Deletes the proposed requirement that an applicant for a public adjuster’s license
provide proof of an errors and omissions policy in the amount of $500,000 at the time of
application.
• Removes the proposed requirement that an insurer issue separate checks to an insured
and a public adjuster when a public adjuster is involved in the resolution of a claim.
• Increases the proposed number of days that a public adjuster has to provide an
executed contract to an insurer from three days to ten days.
• Changes solvency requirements for motor vehicle manufacturers who sell service
warranties.
• Establishes that the annuity-related portions of the bill are effective January 1, 2024.
• Changes the bill from being effective upon becoming law to being effective July 1, 2023,
except as otherwise provided.
• Makes other clarifying changes and technical changes to conform with bill drafting
conventions.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1185 (2023)
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 Giallombardo offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Subsections (35) through (38) of section
8 494.001, Florida Statutes, are renumbered as subsections (36)
9 through (39), respectively, subsection (3) is amended, and a new
10 subsection (35) is added to that section, to read:
11 494.001 Definitions.—As used in this chapter, the term:
12 (3) "Branch office" means a location, other than a
13 mortgage broker's or mortgage lender's principal place of
14 business or a remote location:
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Amendment No. 1
15 (a) The address of which appears on business cards,
16 stationery, or advertising used by the licensee in connection
17 with business conducted under this chapter;
18 (b) At which the licensee's name, advertising or
19 promotional materials, or signage suggests that mortgage loans
20 are originated, negotiated, funded, or serviced; or
21 (c) At which mortgage loans are originated, negotiated,
22 funded, or serviced by a licensee.
23 (35) "Remote location" means a location, other than a
24 principal place of business or a branch office, at which a loan
25 originator of a licensee may conduct business. Licensees may
26 allow loan originators to work from remote locations if:
27 (a) The licensee has written policies and procedures for
28 supervision of loan originators working from remote locations.
29 (b) Access to company platforms and customer information
30 is in accordance with the licensee's comprehensive written
31 information security plan.
32 (c) An in-person customer interaction does not occur at a
33 loan originator's residence, unless such residence is a li censed
34 location.
35 (d) Physical records are not maintained at a remote
36 location.
37 (e) Customer interactions and conversations about
38 consumers will be in compliance with federal and state
39 information security requirements, including applicable
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Bill No. HB 1185 (2023)
Amendment No. 1
40 provisions under the Gramm-Leach-Bliley Act and the Safeguards
41 Rule established by the Federal Trade Commission, set forth at
42 16 CFR Part 314, as such requirements may be amended from time
43 to time.
44 (f) Loan originators working at remote locations access
45 the company's secure systems, including a cloud-based system,
46 directly from any out-of-office device such employee uses,
47 including a laptop, telephones desktop computer, and tablet, via
48 a virtual private network or comparable system that ensures
49 secure connectivity and requires passwords or other forms of
50 authentication to access.
51 (g) Licensee ensures that appropriate security updates,
52 patches, or other alterations to the security of all devices
53 used at remote locations are installed and maintained.
54 (h) Licensee has an ability to remotely lock or erase
55 company-related contents of any device or otherwise remotely
56 limit all access to a company's secure systems.
57 (i) The Nationwide Multistate Licensing System and
58 Registry's record of a loan originator who works from a remote
59 location designates the principal place of business as the loan
60 originator's registered location or the loan originator has
61 elected a licensed branch office as a registered location.
62 Section 2. Subsection (1) of section 494.0067, Florida
63 Statutes, is amended to read:
64 494.0067 Requirements of mortgage lenders.—
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Bill No. HB 1185 (2023)
Amendment No. 1
65 (1) A mortgage lender that makes mortgage loans on real
66 estate in this state shall transact business from a principal
67 place of business, branch office, or remote location. Each
68 principal place of business, and each branch office, and remote
69 location shall be operated under the full charge, control, and
70 supervision of the licensee pursuant to this part.
71 Section 3. Section 501.2042, Florida Statutes, is created
72 to read:
73 501.2042 Unlawful acts and practices by online crowd-
74 funding campaigns.—
75 (1) As used in this section, the term:
76 (a) "Crowd-funding campaign" means an online fundraising
77 initiative that is intended to receive monetary donations from
78 donors and is created by an organizer in the interest of a
79 beneficiary.
80 (b) "Crowd-funding platform" means an entity doing
81 business in this state and that provides an online medium for
82 the creation and facilitation of a crowd-funding campaign.
83 (c) "Disaster" means any natural, technological, or civil
84 emergency that occurs in this state and that causes damage of
85 sufficient severity and magnitude to result in a declaration of
86 a state of emergency by a county, the Governor, or the President
87 of the United States.
88 (d) "Organizer" means a person who:
89 1. Resides or is domiciled in this state.
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90 2. Has an account on a crowd-funding platform and has
91 created a crowd-funding campaign either as a beneficiary or on
92 behalf of a beneficiary who resides in the state, regardless of
93 whether the beneficiary or the crowd-funding campaign has
94 received donations.
95 (2) When an organizer arranges a crowd-funding campaign
96 related to a disaster, the organizer must produce to the crowd-
97 funding platform a complete and accurate accounting of all
98 donations received and expended by the crowd-funding campaign
99 for the benefit of state residents. The crowd-funding platform
100 must publish all received accountings on its website.
101 Section 4. Section 520.23, Florida Statutes, is amended to
102 read:
103 520.23 Disclosures required.—Each agreement governing the
104 sale or lease of a distributed energy generation system shall,
105 at a minimum, include a written statement printed in at least
106 12-point type that is separate from the agreement, is separately
107 acknowledged by the buyer or lessee, and includes the following
108 information and disclosures, if applicable:
109 (1) The name, address, telephone number, and e-mail
110 address of the buyer or lessee.
111 (2) The name, address, telephone number, e-mail address,
112 and valid state contractor license number of the person
113 responsible for installing the distributed energy generation
114 system.
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115 (3) The name, address, telephone number, e-mail address,
116 and valid state contractor license number of the distributed
117 energy generation system maintenance provider, if different from
118 the person responsible for installing the distributed energy
119 generation system.
120 (4) The customer contact center phone number for the
121 Department of Business and Professional Regulation.
122 (5)(4) A written statement indicating whether the
123 distributed energy generation system is being purchased or
124 leased.
125 (a) If the distributed energy generation system will be
126 leased, the written statement must include a disclosure in
127 substantially the following form: "You are entering into an
128 agreement to lease a distributed energy generation system. You
129 will lease (not own) the system installed on your property."
130 (b) If the distributed energy generation system will be
131 purchased, the written statement must include a disclosure in
132 substantially the following form: "You are entering into an
133 agreement to purchase a distributed energy generation system.
134 You will own (not lease) the system installed on your property."
135 (6)(5) The total cost to be paid by the buyer or lessee,
136 including any interest, installation fees, document preparation
137 fees, service fees, or other fees.
138 (7)(6) A payment schedule, including any amounts owed at
139 contract signing, at the commencement of installation, at the
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140 completion of installation, and any final payments. If the
141 distributed energy generation system is being leased, the
142 written statement must include the frequency and amount of each
143 payment due under the lease and the total estimated lease
144 payments over the term of the lease.
145 (8)(7) Each state or federal tax incentive or rebate, if
146 any, relied upon by the seller in determining the price of the
147 distributed energy generation system.
148 (9)(8) A description of the assumptions used to calculate
149 any savings estimates provided to the buyer or lessee, and if
150 such estimates are provided, a statement in substantially the
151 following form: "It is important to understand that future
152 electric utility rates are estimates only. Your future electric
153 utility rates may vary."
154 (10)(9) A description of any one-time or recurring fees,
155 including, but not limited to, estimated system removal fees,
156 maintenance fees, Internet connection fees, and automated
157 clearinghouse fees. If late fees may apply, the description must
158 describe the circumstances triggering such late fees.
159 (11)(10) A statement notifying the buyer whether the
160 distributed energy generation system is being financed and, if
161 so, a statement in substantially the following form: "If your
162 system is financed, carefully read any agreements and/or
163 disclosure forms provided by your lender. This statement does
164 not contain the terms of your financing agreement. If you have
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165 any questions about your financing agreement, contact your
166 finance provider before signing a contract."
167 (12)(11) A statement notifying the buyer whether the
168 seller is assisting in arranging financing of the distributed
169 energy generation system and, if so, a statement in
170 substantially the following form: "If your system is financed,
171 carefully read any agreements and/or disclosure forms provided
172 by your lender. This statement does not contain the terms of
173 your financing agreement. If you have any questions about your
174 financing agreement, contact your finance provider before
175 signing a contract."
176 (13)(12) A provision notifying the buyer or lessee of the
177 right to rescind the agreement for a period of at least 3
178 business days after the agreement is signed. This subsection
179 does not apply to a contract to sell or lease a distributed
180 energy generation system in a solar community in which the
181 entire community has been marketed as a solar community and all
182 of the homes in the community are intended to have a distributed
183 energy generation system, or a solar community in which the
184 developer has incorporated solar technology for purposes of
185 meeting the Florida Building Code in s. 553.73.
186 (14)(13) A description of the distributed energy
187 generation system design assumptions, including the make and
188 model of the major components, system size, estimated first-year
189 energy production, and estimated annual energy production
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190 decreases, including the overall percentage degradation over the
191 estimated life of the distributed energy generation system, and
192 the status of utility compensation for excess energy generated
193 by the system at the time of contract signing. A seller who
194 provides a warranty or guarantee of the energy production output
195 of the distributed energy generation system may provide a
196 description of such warranty or guarantee in lieu of a
197 description of the system design and components.
198 (15)(14) A description of any performance or production
199 guarantees.
200 (16)(15) A description of the ownership and
201 transferability of any tax credits, rebates, incentives, or
202 renewable energy certificates associated with the distributed
203 energy generation system, including a disclosure as to whe ther
204 the seller will assign or sell any associated renewable energy
205 certificates to a third party.
206 (17)(16) A statement in substantially the following form:
207 "You are responsible for property taxes on property you own.
208 Consult a tax professional to understand any tax liability or
209 eligibility for any tax credits that may result from the
210 purchase of your distributed energy generation system."
211 (18)(17) The approximate start and completion dates for
212 the installation of the distributed energy generation system.
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213 (19)(18) A disclosure as to whether maintenance and
214 repairs of the distributed energy generation system are included
215 in the purchase price.
216 (20)(19) A disclosure as to whether any warranty or
217 maintenance obligations related to the distributed energy
218 generation system may be sold or transferred by the seller to a
219 third party and, if so, a statement in substantially the
220 following form: "Your contract may be assigned, sold, or
221 transferred without your consent to a third party who will be
222 bound to all the terms of the contract. If a transfer occurs,
223 you will be notified if this will change the address or phone
224 number to use for system maintenance or repair requests."
225 (21)(20) If the distributed energy generation system will
226 be purchased, a disclosure notifying the buyer of the
227 requirements for interconnecting the system to the utility
228 system.
229 (22)(21) A disclosure notifying the buyer or lessee of the
230 party responsible for obtaining interconnection approval.
231 (23)(22) A description of any roof warranties.
232 (24) A statement in substantially the following form: "You
233 should consider the age and remaining life of your roof prior to
234 installing a distributed energy generation system. Replacement
235 of your roof may require reinstallation of the distributed
236 energy generation system."
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237 (25)(23) A disclosure notifying the lessee whether the
238 seller will insure a leased distributed energy generation system
239 against damage or loss and, if applicable, the circumstances
240 under which the seller will not insure the system against damage
241 or loss.
242 (26)(24) A statement, if applicable, in substantially the
243 following form: "You are responsible for obtaining insurance
244 policies or coverage for any loss of or damage to the system.
245 Consult an insurance professional to understand how to protect
246 against the risk of loss or damage to the system."
247 (27) A statement in substantially the following form:
248 "Placing a distributed energy generation system on your roof may
249 impact your future insurance premiums. You are responsible for
250 contacting your insurance carrier, prior to entering into a
251 purchase or lease agreement, to confirm whether your current
252 policy or coverage will need to be modified upon installing the
253 distributed energy generation system onto your dwelling."
254 (28)(25) A disclosure notifying the buyer or lessee
255 whether the seller or lessor will place a lien on the buyer's or
256 lessee's home or other property as a result of entering into a
257 purchase or lease agreement for the distributed energy
258 generation system.
259 (29)(26) A disclosure notifying the buyer or lessee
260 whether the seller or lessor will file a fixture filing or a
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261 State of Florida Uniform Commercial Code Financing Statement
262 Form (UCC-1) on the distributed energy generation system.
263 (30)(27) A disclosure identifying whether the agreement
264 contains any restrictions on the buyer's or lessee's ability to
265 modify or transfer ownership of a distributed energy generation
266 system, including whether any modification or transfer is
267 subject to review or approval by a third party.
268 (31)(28) A disclosure as to whether the lease agreement
269 may be transferred to a purchaser upon sale of the home or real
270 property to which the system is affixed, and any conditions for
271 such transfer.
272 (32)(29) A blank section that allows the seller to provide
273 additional relevant disclosures or explain disclosures made
274 elsewhere in the disclosure form.
275
276 The requirement to provide a written statement under this
277 section may be satisfied by the electronic delivery of a
278 document within 24 hours after execution of the written
279 statement containing the required statement if the intended
280 recipient of the electronic document affirmatively acknowledges
281 its receipt. An electronic document satisfies the font and other
282 formatting standards required for the written statement if the
283 format and the relative size of characters of the electronic
284 document are reasonably similar to those required in the written
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285 document or if the information is otherwise displayed in a
286 reasonably conspicuous manner.
287 Section 5. Subsection (6) of section 560.111, Florida
288 Statutes, is amended to read:
289 560.111 Prohibited acts.—
290 (6) A person who knowingly and willfully violates s.
291 560.309(11), s. 560.310(2)(d) commits a felony of the third
292 degree, punishable as provided in s. 775.082, s. 775.083, or
293 s. 775.084.
294 Section 6. Subsection (11) of section 560.309, Florida
295 Statutes, is amended to read:
296 560.309 Conduct of business.—
297 (11) A licensee shall not cash corporate checks where the
298 aggregate face amount of all corporate check(s) cashed for each
299 payee exceeds 200% of the payee's workers' compensation policy
300 coverage amount during the same dates as the workers'
301 compensation policy coverage period.
302 Section 7. Section 626.551, Florida Statutes, is amended
303 to read:
304 626.551 Notice of change of address, name.—A licensee must
305 notify the department, in writing, within 5 30 days after a
306 change of name, residence address, principal business street
307 address, mailing address, contact telephone numbers, including a
308 business telephone number, or e-mail address. A licensee who has
309 moved his or her principal place of residence and principal
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310 place of business from this state shall have his or her license
311 and all appointments immediately terminated by the department.
312 Failure to notify the department within the required time shall
313 result in a fine not to exceed $250 for the first offense and a
314 fine of at least $500 or suspension or revocation of the license
315 pursuant to s. 626.611, s. 626.6115, s. 626.621, or s. 626.6215
316 for a subsequent offense. The department may adopt rules to
317 administer and enforce this section.
318 Section 8. Section 626.602, Florida Statutes, is amended
319 to read:
320 626.602 Insurance agency and adjusting firm names;
321 disapproval.—The department may disapprove the use of any true
322 or fictitious name, other than the bona fide natural name of an
323 individual, by any insurance agency or adjusting firm on any of
324 the following grounds:
325 (1) The name interferes with or is too similar to a name
326 already filed and in use by another agency, or adjusting firm,
327 or insurer.
328 (2) The use of the name may mislead the public in any
329 respect.
330 (3) The name states or implies that the agency or
331 adjusting firm is an insurer, motor club, hospital service plan,
332 state or federal agency, charitable organization, or entity that
333 primarily provides advice and counsel rather than sells or
334 solicits insurance, settles claims, or is entitled to engage in
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Amendment No. 1
335 insurance activities not permitted under licenses held or
336 applied for. This provision does not prohibit the use of the
337 word "state" or "states" in the name of the agency. The use of
338 the word "state" or "states" in the name of an agency or
339 adjusting firm does not in and of itself imply that the agency
340 or adjusting firm is a state agency.
341 (4)(a) The name contains the word "Medicare" or
342 "Medicaid."
343 (b) An insurance agency whose name contains the word
344 "Medicare" or "Medicaid" but which is licensed as of Jul y 1,
345 2021, may continue to use that name until June 30, 2023,
346 provided that the agency's license remains valid. If the
347 agency's license expires or is suspended or revoked, the agency
348 may not be relicensed using that name. Licenses for agencies
349 with names containing either of these words automatically expire
350 on July 1, 2023, unless these words are removed from the name.
351 This paragraph is repealed July 1, 2023.
352 Section 9. Section 626.854, Florida Statutes, is amended
353 to read:
354 626.854 "Public adjuster" defined; prohibitions.—The
355 Legislature finds that it is necessary for the protection of the
356 public to regulate public insurance adjusters and to prevent the
357 unauthorized practice of law.
358 (1) A "public adjuster" is any person, except a duly
359 licensed attorney at law as exempted under s. 626.860, who, for
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360 money, commission, or any other thing of value, directly or
361 indirectly prepares, completes, or files an insurance claim for
362 an insured or third-party claimant, regardless of how that
363 person describes or presents his or her services, or who, for
364 money, commission, or any other thing of value, acts on behalf
365 of, or aids an insured or third-party claimant in negotiating
366 for or effecting the settlement of a claim or claims for loss or
367 damage covered by an insurance contract, regardless of how that
368 person describes or presents his or her services, or who
369 advertises for employment as an adjuster of such claims. The
370 term also includes any person who, for money, commission, or any
371 other thing of value, directly or indirectly solicits,
372 investigates, or adjusts such claims on behalf of a public
373 adjuster, an insured, or a third-party claimant. The term does
374 not include a person who photographs or inventories damaged
375 personal property or business personal property or a perso n
376 performing duties under another professional license, if such
377 person does not otherwise solicit, adjust, investigate, or
378 negotiate for or attempt to effect the settlement of a claim.
379 (2) This definition does not apply to:
380 (a) A licensed health care provider or employee thereof
381 who prepares or files a health insurance claim form on behalf of
382 a patient.
383 (b) A licensed health insurance agent who assists an
384 insured with coverage questions, medical procedure coding
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Amendment No. 1
385 issues, balance billing issues, understanding the claims filing
386 process, or filing a claim, as such assistance relates to
387 coverage under a health insurance policy.
388 (c) A person who files a health claim on behalf of another
389 and does so without compensation.
390 (3) A public adjuster may not give legal advice or act on
391 behalf of or aid any person in negotiating or settling a claim
392 relating to bodily injury, death, or noneconomic damages.
393 (4) For purposes of this section, the term "insured"
394 includes only the policyholder and any beneficiaries nam ed or
395 similarly identified in the policy.
396 (5) A public adjuster may not directly or indirectly
397 through any other person or entity solicit an insured or
398 claimant by any means except on Monday through Saturday of each
399 week and only between the hours of 8 a.m. and 8 p.m. on those
400 days.
401 (6)(a) When entering a contract for adjuster services
402 after July 1, 2023, a public adjuster is prohibited from
403 contracting with anyone other than the named insured unless the
404 named insured provides written consent, subsequent to entering a
405 contract for public adjusting services.
406 (b) In the event a public adjuster contracts with a third
407 party in settling the named insured's claim, without first
408 obtaining the insured's written consent, payment of the third
409 party's fees shall be made from the public adjuster's fee.
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Amendment No. 1
410 (7)(6) An insured or claimant may cancel a public
411 adjuster's contract to adjust a claim without penalty or
412 obligation within 10 days after the date on which the contract
413 is executed. If the contract was entered into based on events
414 that are the subject of a declaration of a state of emergency by
415 the Governor, an insured or claimant may cancel the public
416 adjuster's contract to adjust a claim without penalty or
417 obligation within 30 days after the date of the event, or 10
418 days after the date on which the contract is executed, whichever
419 is longer. The public adjuster's contract must contain the
420 following language in minimum 18-point bold type immediately
421 before the space reserved in the contract for the signature of
422 the insured or claimant: "You, the insured, may cancel this
423 contract for any reason without penalty or obligation to you
424 within 10 days after the date of this contract. If this contract
425 was entered into based on events that are the subject of a
426 declaration of a state of emergency by the Governor, you may
427 cancel this contract for any reason without penalty or
428 obligation to you within 30 days after the date of the event, or
429 10 days after the date on which the contract is executed,
430 whichever is longer. You may also cancel the contract without
431 penalty or obligation to you if I, as your public adjuster, fail
432 to provide you and your insurer a copy of a written estimate
433 within 60 days of the execution of the contract in accordance
434 with s. 626.854(14)(b), Florida Statutes." The by providing
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Amendment No. 1
435 notice of cancellation shall be provided to ...(name of public
436 adjuster)..., submitted in writing and sent by certified mail,
437 return receipt requested, or other form of mailing that provides
438 proof thereof, at the address specified in the contract.
439 (8)(7) It is an unfair and deceptive insurance trade
440 practice pursuant to s. 626.9541 for a public adjuster or any
441 other person to circulate or disseminate any advertisement,
442 announcement, or statement containing any assertion,
443 representation, or statement with respect to the business of
444 insurance which is untrue, deceptive, or misleading.
445 (a) The following statements, made in any public
446 adjuster's advertisement or solicitation, are considered
447 deceptive or misleading:
448 1. A statement or representation that invites an insured
449 policyholder to submit a claim when the policyholder does not
450 have covered damage to insured property.
451 2. A statement or representation that invites an insured
452 policyholder to submit a claim by offering monetary or o ther
453 valuable inducement.
454 3. A statement or representation that invites an insured
455 policyholder to submit a claim by stating that there is "no
456 risk" to the policyholder by submitting such claim.
457 4. A statement or representation, or use of a logo or
458 shield, that implies or could mistakenly be construed to imply
459 that the solicitation was issued or distributed by a
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Bill No. HB 1185 (2023)
Amendment No. 1
460 governmental agency or is sanctioned or endorsed by a
461 governmental agency.
462 (b) For purposes of this paragraph, the term "written
463 advertisement" includes only newspapers, magazines, flyers, and
464 bulk mailers. The following disclaimer, which is not required to
465 be printed on standard size business cards, must be added in
466 bold print and capital letters in typeface no smaller than the
467 typeface of the body of the text to all written advertisements
468 by a public adjuster:
469 "THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD A
470 CLAIM FOR AN INSURED PROPERTY LOSS OR DAMAGE AND YOU ARE
471 SATISFIED WITH THE PAYMENT BY YOUR INSURER, YOU MAY
472 DISREGARD THIS ADVERTISEMENT."
473 (9)(8) A public adjuster, a public adjuster apprentice, or
474 any person or entity acting on behalf of a public adjuster or
475 public adjuster apprentice may not give or offer to give a
476 monetary loan or advance to a client or prospective client.
477 (10)(9) A public adjuster, public adjuster apprentice, or
478 any individual or entity acting on behalf of a public adjuster
479 or public adjuster apprentice may not give or offer to give,
480 directly or indirectly, any article of merchandise having a
481 value in excess of $25 to any individual for the purpose of
482 advertising or as an inducement to entering into a contract with
483 a public adjuster.
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Amendment No. 1
484 (11) If the insurer, not later than 14 days after the date
485 on which the loss is reported to the insurer, either pays or
486 commits in writing to pay to the insured the policy limit of the
487 insurance policy, the public adjuster shall:
488 (a) Inform the insured that, due to the insurer's payment
489 or commitment to pay the policy limit, the loss recovery amount
490 might not be increased by the insurer.
491 (b) Not receive a commission consisting of a percentage of
492 the total amount of the paid by an insurer to resolve the claim.
493 (c) Be entitled only to $1,000 from the insured for the
494 time spent and expenses incurred on the claim by the public
495 adjuster, until the claim is paid or the insured receives a
496 written commitment to pay from the insurer.
497 (12) If the public adjuster enters into a contract with an
498 insured or claimant after the insured or claimant unsuccessfully
499 negotiates an insurance claim payment and the public adjuster is
500 successful in obtaining a higher insurance claim payment, the
501 public adjuster shall receive a commission consisting of 10
502 percent of the difference between the last insurance claim
503 payment offer made to the insured before the insured signed a
504 contract with the public adjuster and the final insurance claim
505 payment obtained through the work of the public adjuster after
506 entering into the contract with the insured or claimant.
507 (13)(10)(a) If a public adjuster enters into a contract
508 with an insured or claimant to reopen a claim or file a
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Bill No. HB 1185 (2023)
Amendment No. 1
509 supplemental claim that seeks additional payments for a claim
510 that has been previously paid in part or in full or settled by
511 the insurer, the public adjuster may not charge, agree to, or
512 accept from any source compensation, payment, commission, fee,
513 or any other thing of value based on a previous settlement or
514 previous claim payments by the insurer for the same cause of
515 loss. The charge, compensation, payment, commission, fee, or any
516 other thing of value must be based only on the claim payments or
517 settlements paid to the insured, exclusive of attorney fees and
518 costs, obtained through the work of the public adjuster after
519 entering into the contract with the insured or claimant.
520 Compensation for the reopened or supplemental claim may not
521 exceed 20 percent of the reopened or supplemental claim payment.
522 In no event shall the contracts described in this paragraph
523 exceed the limitations in paragraph (b).
524 (b) A public adjuster may not charge, agree to, or accept
525 from any source compensation, payment, commission, fee, or any
526 other thing of value in excess of:
527 1. Ten percent of the amount of insurance claim payments
528 or settlements, exclusive of attorney fees and costs, paid to
529 the insured by the insurer for claims based on events that are
530 the subject of a declaration of a state of emergency by the
531 Governor. This provision applies to claims made during the year
532 after the declaration of emergency. After that year, the
533 limitations in subparagraph 2. apply.
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534 2. Twenty percent of the amount of insurance claim
535 payments or settlements, exclusive of attorney fees and costs,
536 paid to the insured by the insurer for claims that are not based
537 on events that are the subject of a declaration of a state of
538 emergency by the Governor.
539 (c) Insurance claim payments made by the insurer do not
540 include policy deductibles, and public adjuster compensation may
541 not be based on the deductible portion of a claim.
542 (d) Public adjuster compensation may not be based on
543 amounts attributable to additional living expenses, unless such
544 compensation is affirmatively agreed to in a separate agreement
545 that includes a disclosure in substantially the following form:
546 "I agree to retain and compensate the public adjuster for
547 adjusting my additional living expenses and securing payment
548 from my insurer for amounts attributable to additional living
549 expenses payable under the policy issued on my (home/mobile
550 home/condominium unit)."
551 (e) Public adjuster rate of compensation may not be
552 increased based solely on the fact that the claim is litigated.
553 (f) Any maneuver, shift, or device through which the
554 limits on compensation set forth in this subsection are exceeded
555 is a violation of this chapter punishable as provided under s.
556 626.8698.
557 (14)(a)(11) Each public adjuster must provide to the
558 claimant or insured a written estimate of the loss to assist in
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Amendment No. 1
559 the submission of a proof of loss or any other claim for payment
560 of insurance proceeds within 60 days after the date of the
561 contract. The written estimate must include an itemized, per -
562 unit estimate of the repairs, including itemized information on
563 equipment, materials, labor, and supplies, in accordance with
564 accepted industry standards. The public adjuster shall retain
565 such written estimate for at least 5 years and shall make the
566 estimate available to the claimant or insured, the insurer, and
567 the department upon request.
568 (b) An insured may cancel the contract with no additional
569 penalties or fees charged by the public adjuster if such an
570 estimate is not provided within 60 days after executing the
571 contract, subject to the cancellation notice requirement in this
572 section.
573 (15)(12) A public adjuster, public adjuster apprentice, or
574 any person acting on behalf of a public adjuster or apprentice
575 may not accept referrals of business from any person with whom
576 the public adjuster conducts business if there is any form or
577 manner of agreement to compensate the person, directly or
578 indirectly, for referring business to the public adjuster. A
579 public adjuster may not compensate any person, except for
580 another public adjuster, directly or indirectly, for the
581 principal purpose of referring business to the public adjuster.
582 (16)(13) A company employee adjuster, independent
583 adjuster, attorney, investigator, or other persons acting on
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Bill No. HB 1185 (2023)
Amendment No. 1
584 behalf of an insurer that needs access to an insured or claimant
585 or to the insured property that is the subject of a claim must
586 provide at least 48 hours' notice to the insured or claimant,
587 public adjuster, or legal representative before scheduling a
588 meeting with the claimant or an onsite inspection of the insured
589 property. The insured or claimant may deny access to the
590 property if the notice has not been provided. The insured or
591 claimant may waive the 48-hour notice.
592 (17)(14) The public adjuster must ensure that prompt
593 notice is given of the claim to the insurer, the public
594 adjuster's contract is provided to the insurer, the property is
595 available for inspection of the loss or damage by the insurer,
596 and the insurer is given an opportunity to interview the insured
597 directly about the loss and claim. The insurer must be allowed
598 to obtain necessary information to investigate and respond to
599 the claim.
600 (a) The insurer may not exclude the public adjuster from
601 its in-person meetings with the insured. The insurer shall meet
602 or communicate with the public adjuster in an effort to reach
603 agreement as to the scope of the covered loss under the
604 insurance policy. The public adjuster shall meet or communicate
605 with the insurer in an effort to reach agreement as to the scope
606 of the covered loss under the insurance policy. This section
607 does not impair the terms and conditions of the insurance policy
608 in effect at the time the claim is filed.
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Amendment No. 1
609 (b) A public adjuster may not restrict or prevent an
610 insurer, company employee adjuster, independent adjuster,
611 attorney, investigator, or other person acting on behalf of the
612 insurer from having reasonable access at reasonable times to any
613 insured or claimant or to the insured property that is the
614 subject of a claim.
615 (c) A public adjuster may not act or fail to reasonably
616 act in any manner that obstructs or prevents an insurer or
617 insurer's adjuster from timely conducting an inspection of any
618 part of the insured property for which there is a claim for loss
619 or damage. The public adjuster representing the insureds may be
620 present for the insurer's inspection, but if the unavailability
621 of the public adjuster otherwise delays the insurer's timely
622 inspection of the property, the public adjuster or the insureds
623 must allow the insurer to have access to the property without
624 the participation or presence of the public adjuster or insureds
625 in order to facilitate the insurer's prompt inspection of the
626 loss or damage.
627 (18)(15) A licensed contractor under part I of chapter
628 489, or a subcontractor of such licensee, may not advertise,
629 solicit, offer to handle, handle, or perform public adjuster
630 services as provided in subsection (1) unless licensed and
631 compliant as a public adjuster under this chapter. The
632 prohibition against solicitation does not preclude a contractor
633 from suggesting or otherwise recommending to a consumer that the
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Bill No. HB 1185 (2023)
Amendment No. 1
634 consumer consider contacting his or her insurer to determine if
635 the proposed repair is covered under the consumer's insurance
636 policy, except as it relates to solicitation prohibited in s.
637 489.147. In addition, the contractor may discuss or explain a
638 bid for construction or repair of covered property with the
639 residential property owner who has suffered loss or damage
640 covered by a property insurance policy, or the insurer of such
641 property, if the contractor is doing so for the usual and
642 customary fees applicable to the work to be performed as stated
643 in the contract between the contractor and the insured.
644 (19)(16) A public adjuster shall not acquire any interest
645 in salvaged property, except with the written consent and
646 permission of the insured through a signed affidavit.
647 (20)(17) A public adjuster, a public adjuster apprentice,
648 or a person acting on behalf of an adjuster or apprentice may
649 not enter into a contract or accept a power of attorney that
650 vests in the public adjuster, the public adjuster apprentice, or
651 the person acting on behalf of the adjuster or apprentice the
652 effective authority to choose the persons or entities that will
653 perform repair work in a property insurance claim or provide
654 goods or services that will require the insured or third -party
655 claimant to expend funds in excess of those payable to the
656 public adjuster under the terms of the contract for adjusting
657 services.
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Bill No. HB 1185 (2023)
Amendment No. 1
658 (21)(18) Subsections (5)-(20) (5)-(17) apply only to
659 residential property insurance policies and condominium unit
660 owner policies as described in s. 718.111(11).
661 (22)(19) Except as otherwise provided in this chapter, no
662 person, except an attorney at law or a licensed public adjuster,
663 may for money, commission, or any other thing of value, directly
664 or indirectly:
665 (a) Prepare, complete, or file an insurance claim for an
666 insured or a third-party claimant;
667 (b) Act on behalf of or aid an insured or a third -party
668 claimant in negotiating for or effecting the settlement of a
669 claim for loss or damage covered by an insurance contract;
670 (c) Offer to initiate or negotiate a claim on behalf of an
671 insured;
672 (d) Advertise services that require a license as a public
673 adjuster; or
674 (e) Solicit, investigate, or adjust a claim on behalf of a
675 public adjuster, an insured, or a third-party claimant.
676 (23)(20) The department may take administrative actions
677 and impose fines against any persons performing claims
678 adjusting, soliciting, or any other services described in this
679 section without the licensure required under this section or s.
680 626.112.
681 (24)(21) A public adjuster, public adjuster apprentice, or
682 public adjusting firm that solicits a claim and does not enter
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Bill No. HB 1185 (2023)
Amendment No. 1
683 into a contract with an insured or a third-party claimant
684 pursuant to paragraph (13)(a) (10)(a) may not charge an insured
685 or a third-party claimant or receive payment by any other source
686 for any type of service related to the insured or third -party
687 claimant's claim.
688 (25)(22)(a) Any following act by a public adjuster, a
689 public adjuster apprentice, or a person acting on behalf of a
690 public adjuster or public adjuster apprentice is prohibited and
691 shall result in discipline as applicable under this part:
692 1. Offering to a residential property owner a rebate,
693 gift, gift card, cash, coupon, waiver of any insurance
694 deductible, or any other thing of value in exchange for:
695 a. Allowing a contractor, a public adjuster, a public
696 adjuster apprentice, or a person acting on behalf of a public
697 adjuster or public adjuster apprentice to conduct an inspection
698 of the residential property owner's roof; or
699 b. Making an insurance claim for damage to the residential
700 property owner's roof.
701 2. Offering, delivering, receiving, or accepting any
702 compensation, inducement, or reward for the referral of any
703 services for which property insurance proceeds would be used for
704 roofing repairs or replacement.
705 (b) Notwithstanding the fine set forth in s. 626.8698, a
706 public adjuster or public adjuster apprentice may be subject to
707 a fine not to exceed $10,000 per act for a violation of this
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Bill No. HB 1185 (2023)
Amendment No. 1
708 subsection and a fine not to exceed $20,000 per act for a
709 violation of this subsection that occurs during a state of
710 emergency declared by executive order or proclamation of the
711 Governor pursuant to s. 252.36.
712 (c) A person who engages in an act prohibited by this
713 subsection and who is not a public adjuster or a public adjuster
714 apprentice, or is not otherwise exempt from licensure, is guilty
715 of the unlicensed practice of public adjusting and may be:
716 1. Subject to all applicable penalties set forth in this
717 part.
718 2. Notwithstanding subparagraph 1., subject to a fine not
719 to exceed $10,000 per act for a violation of this subsection and
720 a fine not to exceed $20,000 per act for a violation of this
721 subsection that occurs during a state of emergency declared by
722 executive order or proclamation of the Governor pursuant to s.
723 252.36.
724 Section 10. Section 626.860, Florida Statutes, is amended
725 to read:
726 626.860 Attorneys at law; exemption.—Attorneys at law duly
727 licensed to practice law in the courts of this state, and in
728 good standing with The Florida Bar, shall not be required to be
729 licensed under the provisions of this code to authorize them to
730 adjust or participate in the adjustment of any claim, loss, or
731 damage arising under policies or contracts of insurance. This
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Bill No. HB 1185 (2023)
Amendment No. 1
732 exemption does not extend to the employees, interns, volunteers,
733 or contractors of an attorney or of a law firm.
734 Section 11. Section 626.875, Florida Statutes, is amended
735 to read:
736 626.875 Office and records.—
737 (1)(a) Each appointed independent adjuster and licensed
738 public adjuster must maintain a place of business in this state
739 which is accessible to the public and keep therein the usual and
740 customary records pertaining to transactions under the license.
741 This provision does not prohibit maintenance of such an office
742 in the home of the licensee.
743 (b) A license issued under this chapter must at all times
744 be posted in a conspicuous place in the principal place of
745 business of the license holder. If the licensee is conducting
746 business away from the place of business such that the license
747 cannot be posted, the licensee shall have such license in his or
748 her actual possession at the time of carrying on such business.
749 (2) The records of the adjuster relating to a particular
750 claim or loss shall be so retained in the adjuster's place of
751 business for a period of not less than 5 years after completion
752 of the adjustment and shall be available for inspection by the
753 department at all times. This provision shall not be deemed to
754 prohibit return or delivery to the insurer or insured of
755 documents furnished to or prepared by the adjuster and required
756 by the insurer or insured to be returned or delivered thereto.
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Amendment No. 1
757 At a minimum, the following records must be maintained for a
758 period of not less than 5 years:
759 (a) Name, address, telephone number, and e-mail address of
760 the insured, and the name of the attorney representing the
761 insured, if applicable.
762 (b) The date, location, and amount of the loss.
763 (c) An unaltered copy of the executed disclosure document
764 required by s. 626.8796.
765 (d) An unaltered copy of the executed public adjuster
766 contract required by s. 626.8796.
767 (e) A copy of the estimate of damages provided to the
768 insurer.
769 (f) The name of the insurer; the name of the claims
770 representative of the insurer; and the amount, expiration date,
771 and number of each policy under which the loss is covered.
772 (g) An itemized statement of the recoveries by the insured
773 from the sources known to the adjuster.
774 (h) An itemized statement of all compensation received by
775 the public adjuster from any source, in connection with the
776 loss.
777 (i) A register of all money received, deposited,
778 disbursed, and withdrawn in connection with a transaction with
779 the insured, including fees, transfers, and disbursements in
780 connection with the loss.
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Amendment No. 1
781 Section 12. Section 626.8796, Florida Statutes, is amended
782 to read:
783 626.8796 Public adjuster contracts; disclosure statement;
784 fraud statement.—
785 (1) All contracts for public adjuster services must be in
786 writing in at least 12-point font, titled "Public Adjuster
787 Contract" and prominently display the following statement on the
788 contract in minimum 18-point bold type before the space reserved
789 for in the contract for the signature of the insured: "Pursuant
790 to s. 817.234, Florida Statutes, any person who, with the intent
791 to injure, defraud, or deceive an insurer or insured, prepares,
792 presents, or causes to be presented a proof of loss or estimate
793 of cost or repair of damaged property in support of a claim
794 under an insurance policy knowing that the proof of loss or
795 estimate of claim or repairs contains false, incomplete, or
796 misleading information concerning any fact or thing material to
797 the claim commits a felony of the third degree, punishable as
798 provided in s. 775.082, s. 775.083, or s. 775.084, Florida
799 Statutes."
800 (2) A public adjuster contract relating to a property and
801 casualty claim must contain the full name, permanent business
802 address, phone number, e-mail address, and license number of the
803 public adjuster; the full name of the public adjusting firm; and
804 the insured's full name, and street address, phone number, and
805 e-mail address, together with a brief description of the loss.
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Amendment No. 1
806 The contract must state the percentage of compensation for the
807 public adjuster's services in minimum 18-point bold type before
808 the space reserved for in the contract for the signature of the
809 insured; the type of claim, including an emergency claim,
810 nonemergency claim, or supplemental claim; the initials of the
811 named insured on each page that does not contain the insured's
812 signature; the signatures of the public adjuster and all named
813 insureds; and the signature date. If all of the named insureds'
814 signatures are not available, the public adjuster must submit an
815 affidavit signed by the available named insureds attesting that
816 they have authority to enter into the contract and settle all
817 claim issues on behalf of the named insureds. An unaltered copy
818 of the executed contract must be remitted to the insured at the
819 time of execution and to the insurer within 10 30 days after
820 execution. A public adjusting firm that adjusts claims primarily
821 for commercial entities with operations in more than one state
822 and that does not directly or indirectly perform adjusting
823 services for insurers or individual homeowners is deemed to
824 comply with the requirements of this subsection if, at the time
825 a proof of loss is submitted, the public adjusting firm remits
826 to the insurer an affidavit signed by the public adjuster or
827 public adjuster apprentice that identifies:
828 (a) The full name, permanent business address, phone
829 number, e-mail address, and license number of the public
830 adjuster or public adjuster apprentice.
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Bill No. HB 1185 (2023)
Amendment No. 1
831 (b) The full name of the public adjusting firm.
832 (c) The insured's full name, and street address, phone
833 number, and e-mail address, together with a brief description of
834 the loss.
835 (d) An attestation that the compensation for public
836 adjusting services will not exceed the limitations provided by
837 law.
838 (e) The type of claim, including an emergency claim,
839 nonemergency claim, or supplemental claim.
840 (3) The public adjuster shall not provide services until
841 both the insured and insurer have been provided with unaltered
842 copies of the executed contract.
843 (4) The insured may rescind the contract for public
844 adjuster services if the public adjuster has not submitted a
845 written estimate to the insurer within 60 days of executing the
846 contract.
847 (5) Before the signing of the contract, the public
848 adjuster shall provide the insured with a separate disclosure
849 document to be signed by the insured, on a form adopted by the
850 department, regarding the claim process that accomplishes the
851 following:
852 (a) Defines the following types of adjusters who may be
853 involved in the claim process: company adjuster, independent
854 adjuster, and public adjuster.
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Amendment No. 1
855 (b) Explains that the public adjuster is not a
856 representative or employee of the insurer.
857 (c) Explains that the insured is not required to hire a
858 public adjuster, but has a right to do so.
859 (d) Explains that an insured has a right to initiate
860 direct communications with the insured's attorney, the insurer,
861 the company adjuster, the insurer's attorney, or any person
862 regarding the settlement of the insured's claim.
863 (e) Explains that the public adjuster's salary, fee,
864 commission, or other consideration to be paid to a public
865 adjuster is the insured's responsibility.
866 (f) Explains that the public adjuster is required to
867 provide the insured an unaltered copy of the executed contract
868 at the time of execution.
869 (g) Explains that if the contract was entered based on
870 events that are the subject of a declaration of a state of
871 emergency by the Governor, the insured has a right to rescind
872 the contract within 30 days.
873 (6) A contract that does not comply with this section is
874 invalid and unenforceable.
875 (7) The department may adopt rules pursuant to ss.
876 120.536(1) and 120.54 to implement this section, including rules
877 to adopt forms required by this section.
878 Section 13. Section 626.8797, Florida Statutes, is amended
879 to read:
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Amendment No. 1
880 626.8797 Proof of loss; fraud statement.—All proof-of-loss
881 statements must prominently display the following statement in
882 minimum 18-point bold type before the space reserved in the
883 contract for the signature of the insured: "Pursuant to s.
884 817.234, Florida Statutes, any person who, with the intent to
885 injure, defraud, or deceive any insurer or insured, prepares,
886 presents, or causes to be presented a proof of loss or estimate
887 of cost or repair of damaged property in support of a claim
888 under an insurance policy knowing that the proof of loss or
889 estimate of claim or repairs contains any false, incomplete, or
890 misleading information concerning any fact or thing material to
891 the claim commits a felony of the third degree, punishable as
892 provided in s. 775.082, s. 775.083, or s. 775.084, Florida
893 Statutes."
894 Section 14. Paragraph (a) of subsection (1) of section
895 626.9541, Florida Statutes, is amended to read:
896 626.9541 Unfair methods of competition and unfair or
897 deceptive acts or practices defined.—
898 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
899 ACTS.—The following are defined as unfair methods of competition
900 and unfair or deceptive acts or practices:
901 (a) Misrepresentations and false advertising of insurance
902 policies.—Knowingly making, issuing, circulating, or causing to
903 be made, issued, or circulated, any estimate, illustration,
904 circular, statement, sales presentation, omission, comparison,
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Bill No. HB 1185 (2023)
Amendment No. 1
905 or property and casualty certificate of insurance altered after
906 being issued, which:
907 1. Misrepresents the benefits, advantages, conditions, or
908 terms of any insurance policy.
909 2. Misrepresents the dividends or share of the surplus to
910 be received on any insurance policy.
911 3. Makes any false or misleading statements as to the
912 dividends or share of surplus previously paid on any insurance
913 policy.
914 4. Is misleading, or is a misrepresentation, as to the
915 financial condition of any person or as to the legal reserve
916 system upon which any life insurer operates.
917 5. Uses any name or title of any insurance policy or class
918 of insurance policies misrepresenting the true nature thereof.
919 6. Is a misrepresentation for the purpose of inducing, or
920 tending to induce, the lapse, forfeiture, exchange, conversion,
921 or surrender of any insurance policy.
922 7. Is a misrepresentation for the purpose of effecting a
923 pledge or assignment of, or effecting a loan against, any
924 insurance policy.
925 8. Misrepresents any insurance policy as being shares of
926 stock or misrepresents ownership interest in the company.
927 9. Uses any advertisement that would mislead or otherwise
928 cause a reasonable person to believe mistakenly that the state
929 or the Federal Government is responsible for the insurance sales
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Bill No. HB 1185 (2023)
Amendment No. 1
930 activities of any person or stands behind any person's credit or
931 that any person, the state, or the Federal Government guarantees
932 any returns on insurance products or is a source of payment of
933 any insurance obligation of or sold by any person.
934 10. Fails to disclose a third party that receives
935 royalties, referral fees, or other remuneration for sponsorship,
936 marketing, or use of third-party branding for a policy of health
937 insurance as defined in s. 624.603.
938 Section 15. Paragraph (c) of subsection (2) of section
939 627.4025, Florida Statutes, is amended, and paragraph (d) is
940 added to that subsection, to read:
941 627.4025 Residential coverage and hurricane coverage
942 defined.—
943 (2) As used in policies providing residential coverage:
944 (c) "Hurricane" for purposes of paragraphs (a) and (b)
945 means a storm system that has been declared to be a hurricane by
946 the National Hurricane Center of the National Weather Service.
947 The duration of the hurricane includes the time period, in
948 Florida:
949 1. Beginning at the time a hurricane watch or hurricane
950 warning is issued for any part of Florida by the National
951 Hurricane Center of the National Weather Service; and
952 2. Continuing for the time period during which the
953 hurricane conditions exist anywhere in Florida; and
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Amendment No. 1
954 3. Ending 24 72 hours following the termination of the
955 last hurricane watch or hurricane warning issued for any part of
956 Florida by the National Hurricane Center of the National Weather
957 Service.
958 (d) "Hurricane deductible" means the deductible applicable
959 to loss caused by a hurricane.
960 Section 16. Paragraph (b) of subsection (1) and paragraph
961 (b) of subsection (2) of section 627.4133, Florida Statutes, are
962 amended to read:
963 627.4133 Notice of cancellation, nonrenewal, or renewal
964 premium.—
965 (1) Except as provided in subsection (2):
966 (b) An insurer issuing a policy providing coverage for
967 property, casualty, except mortgage guaranty, surety, or marine
968 insurance, other than motor vehicle insurance subject to s.
969 627.728 or s. 627.7281, shall give the first-named insured
970 written notice of cancellation or termination other than
971 nonrenewal at least 45 days prior to the effective date of the
972 cancellation or termination, including in the written notice the
973 reason or reasons for the cancellation or termination, except
974 that:
975 1. When cancellation is for nonpayment of premium, at
976 least 10 days' written notice of cancellation accompanied by the
977 reason therefor shall be given. As used in this subparagraph and
978 s. 440.42(3), the term "nonpayment of premium" means failure of
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Amendment No. 1
979 the named insured to discharge when due any of her or his
980 obligations in connection with the payment of premiums on a
981 policy or any installment of such premium, whether the premium
982 is payable directly to the insurer or its agent or indirectly
983 under any premium finance plan or extension of credit, or
984 failure to maintain membership in an organization if such
985 membership is a condition precedent to insurance coverage.
986 "Nonpayment of premium" also means the failure of a financial
987 institution to honor an insurance applicant's check after
988 delivery to a licensed agent for payment of a premium, even if
989 the agent has previously delivered or transferred the premium to
990 the insurer. If a dishonored check represents the initial
991 premium payment, the contract and all contractual obligations
992 shall be void ab initio unless the nonpayment is cured within
993 the earlier of 5 days after actual notice by certified mail is
994 received by the applicant or 15 days after notice is sent to the
995 applicant by certified mail or registered mail, and if the
996 contract is void, any premium received by the insurer from a
997 third party shall be refunded to that party in full; and
998 2. When such cancellation or termination occurs during the
999 first 90 days during which the insurance is in force and the
1000 insurance is canceled or terminated for reasons other than
1001 nonpayment of premium, at least 20 days' written notice of
1002 cancellation or termination accompanied by the reason th erefor
1003 shall be given except where there has been a material
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Amendment No. 1
1004 misstatement or misrepresentation or failure to comply with the
1005 underwriting requirements established by the insurer.
1006
1007 After the policy has been in effect for 60 90 days, no such
1008 policy shall be canceled by the insurer except when there has
1009 been a material misstatement, a nonpayment of premium, a failure
1010 to comply with underwriting requirements established by the
1011 insurer within 90 days of the date of effectuation of coverage,
1012 or a substantial change in the risk covered by the policy or
1013 when the cancellation is for all insureds under such policies
1014 for a given class of insureds. This subsection does not apply to
1015 individually rated risks having a policy term of less than 90
1016 days.
1017 (2) With respect to any personal lines or commercial
1018 residential property insurance policy, including, but not
1019 limited to, any homeowner, mobile home owner, farmowner,
1020 condominium association, condominium unit owner, apartment
1021 building, or other policy covering a residential structure or
1022 its contents:
1023 (b) The insurer shall give the first-named insured written
1024 notice of nonrenewal, cancellation, or termination at least 120
1025 days before the effective date of the nonrenewal, cancellation,
1026 or termination. The notice must include the reason for the
1027 nonrenewal, cancellation, or termination, except that:
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Amendment No. 1
1028 1. If cancellation is for nonpayment of premium, at least
1029 10 days' written notice of cancellation accompanied by the
1030 reason therefor must be given. As used in this subparagraph, the
1031 term "nonpayment of premium" means failure of the named insured
1032 to discharge when due her or his obligations for paying the
1033 premium on a policy or an installment of such premium, whether
1034 the premium is payable directly to the insurer or its agent or
1035 indirectly under a premium finance plan or extension of credit,
1036 or failure to maintain membership in an organization if such
1037 membership is a condition precedent to insurance coverage. The
1038 term also means the failure of a financial institution to honor
1039 an insurance applicant's check after delivery to a licensed
1040 agent for payment of a premium even if the agent has previously
1041 delivered or transferred the premium to the insurer. If a
1042 dishonored check represents the initial premium payment, the
1043 contract and all contractual obligations are void ab initio
1044 unless the nonpayment is cured within the earlier of 5 days
1045 after actual notice by certified mail is received by the
1046 applicant or 15 days after notice is sent to the applicant by
1047 certified mail or registered mail. If the contract is void, any
1048 premium received by the insurer from a third party must be
1049 refunded to that party in full.
1050 2. If cancellation or termination occurs during the first
1051 90 days the insurance is in force and the insurance is canceled
1052 or terminated for reasons other than nonpayment of premium, at
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1053 least 20 days' written notice of cancellation or termination
1054 accompanied by the reason therefor must be given unless there
1055 has been a material misstatement or misrepresentation or a
1056 failure to comply with the underwriting requirements established
1057 by the insurer.
1058 3. After the policy has been in effect for 60 90 days, the
1059 policy may not be canceled by the insurer unless there has been
1060 a material misstatement; a nonpayment of premium; a failure to
1061 comply, within 90 days after the date of effectuation of
1062 coverage, with underwriting requirements established by the
1063 insurer before the date of effectuation of coverage; or a
1064 substantial change in the risk covered by the policy or unless
1065 the cancellation is for all insureds under such policies for a
1066 given class of insureds. This subparagraph does not apply to
1067 individually rated risks that have a policy term of less than 90
1068 days.
1069 4. After a policy or contract has been in effect for more
1070 than 90 days, the insurer may not cancel or terminate the policy
1071 or contract based on credit information available in public
1072 records.
1073 5. A policy that is nonrenewed by Citizens Property
1074 Insurance Corporation, pursuant to s. 627.351(6), for a policy
1075 that has been assumed by an authorized insurer offering
1076 replacement coverage to the policyholder is exempt from the
1077 notice requirements of paragraph (a) and this paragraph. In such
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1078 cases, the corporation must give the named insured written
1079 notice of nonrenewal at least 45 days before the effective date
1080 of the nonrenewal.
1081 6. Notwithstanding any other provision of law, an insurer
1082 may cancel or nonrenew a property insurance policy after at
1083 least 45 days' notice if the office finds that the early
1084 cancellation of some or all of the insurer's policies is
1085 necessary to protect the best interests of the public or
1086 policyholders and the office approves the insurer's plan for
1087 early cancellation or nonrenewal of some or all of its policies.
1088 The office may base such finding upon the financial condition of
1089 the insurer, lack of adequate reinsurance coverage for hurricane
1090 risk, or other relevant factors. The office may condition its
1091 finding on the consent of the insurer to be placed under
1092 administrative supervision pursuant to s. 624.81 or to the
1093 appointment of a receiver under chapter 631.
1094 7. A policy covering both a home and a motor vehicle may
1095 be nonrenewed for any reason applicable to the property or motor
1096 vehicle insurance after providing 90 days' notice.
1097 Section 17. Effective January 1, 2024, section 627.4554,
1098 Florida Statutes, is amended to read:
1099 627.4554 Suitability in Annuity Transactions.—
1100 (1) PURPOSE.—The purpose of this section is to require
1101 agents to act in the best interest of the consumer when making
1102 a recommendation of an annuity and to require insurers to
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1103 establish and maintain a system to supervise so set forth
1104 standards and procedures for making recommendations to consumers
1105 which result in transactions involving annuity products, and to
1106 establish a system for supervising such recommendations in order
1107 to ensure that the insurance needs and financial objectives of
1108 consumers are effectively appropriately addressed at the time of
1109 the transaction.
1110 (2) SCOPE.—This section applies to any sale or
1111 recommendation of made to a consumer to purchase, exchange, or
1112 replace an annuity by an insurer or its agent, and which results
1113 in the purchase, exchange, or replacement recommended .
1114 (3) DEFINITIONS.—As used in this section, the term:
1115 (a) "Agent" means a person or entity required to be
1116 licensed under the laws of this state to sell, solicit, or
1117 negotiate insurance, including annuities. For purposes of this
1118 section, the term includes an insurer where no agent is involved
1119 has the same meaning as provided in s. 626.015.
1120 (b) "Annuity" means an insurance product under state law
1121 which is individually solicited, whether classified as an
1122 individual or group annuity.
1123 (c) "Cash compensation" means any discount, concession,
1124 fee, service fee, commission, sales charge, loan, override, or
1125 cash benefit received by an agent in connection with the
1126 recommendation or sale of an annuity from an insurer,
1127 intermediary, or directly from the consumer.
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1128 (d) "Consumer profile information" means information that
1129 is reasonably appropriate to determine whether a recommendation
1130 addresses the consumer's financial situation, insurance needs
1131 and financial objectives, including, at a minimum, the
1132 following:
1133 1. Age.
1134 2. Annual income.
1135 3. Financial situation and needs, including debts and
1136 other obligations.
1137 4. Financial experience.
1138 5. Insurance needs.
1139 6. Financial objectives.
1140 7. Intended use of the annuity.
1141 8. Financial time horizon.
1142 9. Existing assets or financial products, including
1143 investment, annuity, and insurance holdings.
1144 10. Liquidity needs.
1145 11. Liquid net worth.
1146 12. Risk tolerance, including, but not limited to,
1147 willingness to accept nonguaranteed elements in the annuity.
1148 13. Financial resources used to fund the annuity.
1149 14. Tax status.
1150 (e)(c) "FINRA" means the Financial Industry Regulatory
1151 Authority or a succeeding agency.
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1152 (f)(d) "Insurer" has the same meaning as provided in s.
1153 624.03.
1154 (g) "Intermediary" means an entity contracted directly
1155 with an insurer or with another entity contracted with an
1156 insurer to facilitate the sale of the insurer's annuities by
1157 agents.
1158 (h) "Material conflict of interest" means a financial
1159 interest of the agent in the sale of an annuity that a
1160 reasonable person would expect to influence the impartiality of
1161 a recommendation. The term does not include cash compensation or
1162 noncash compensation.
1163 (i) "Noncash compensation" means any form of compensation
1164 that is not cash compensation, including, but not limited to,
1165 health insurance, office rent, office support, and retirement
1166 benefits.
1167 (j) "Nonguaranteed elements" means the premiums, credi ted
1168 interest rates, including any bonus; benefits; values;
1169 dividends; noninterest based credits; charges; or elements of
1170 formulas used to determine any of these, that are subject to
1171 company discretion and are not guaranteed at issue. An element
1172 is considered nonguaranteed if any of the underlying
1173 nonguaranteed elements are used in its calculation.
1174 (k)(e) "Recommendation" means advice provided by an
1175 insurer or its agent to an individual a consumer that was
1176 intended to result or does result which would result in a the
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1177 purchase, an exchange, or a replacement of an annuity in
1178 accordance with that advice. The term does not include general
1179 communication to the public, generalized customer services,
1180 assistance or administrative support, general educational
1181 information and tools, prospectuses, or other product and sales
1182 material.
1183 (l)(f) "Replacement" means a transaction in which a new
1184 annuity policy or contract is to be purchased and it is known or
1185 should be known to the proposing insurer or its agent, or to the
1186 proposing insurer whether or not an agent is involved, that by
1187 reason of such transaction an existing annuity or other
1188 insurance policy has been or is to be any of the following or
1189 contract will be:
1190 1. Lapsed, forfeited, surrendered or partially
1191 surrendered, assigned to the replacing insurer, or otherwise
1192 terminated;
1193 2. Converted to reduced paid-up insurance, continued as
1194 extended term insurance, or otherwise reduced in value due to
1195 the use of nonforfeiture benefits or other policy values;
1196 3. Amended so as to effect a reduction in benefits or the
1197 term for which coverage would otherwise remain in force or for
1198 which benefits would be paid;
1199 4. Reissued with a reduction in cash value; or
1200 5. Used in a financed purchase.
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1201 (m) "SEC" means the United States Securities and Exchange
1202 Commission.
1203 (g) "Suitability information" means information related to
1204 the consumer which is reasonably appropriate to determine the
1205 suitability of a recommendation made to the consumer, including
1206 the following:
1207 1. Age;
1208 2. Annual income;
1209 3. Financial situation and needs, including the financial
1210 resources used for funding the annuity;
1211 4. Financial experience;
1212 5. Financial objectives;
1213 6. Intended use of the annuity;
1214 7. Financial time horizon;
1215 8. Existing assets, including investment and life
1216 insurance holdings;
1217 9. Liquidity needs;
1218 10. Liquid net worth;
1219 11. Risk tolerance; and
1220 12. Tax status.
1221 (4) EXEMPTIONS.—Unless otherwise specifically included,
1222 this section does not apply to transactions involving:
1223 (a) Direct-response solicitations where there is no
1224 recommendation based on information collected from the consumer
1225 pursuant to this section;
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1226 (b) Contracts used to fund:
1227 1. An employee pension or welfare benefit plan that is
1228 covered by the federal Employee Retirement and Income Security
1229 Act;
1230 2. A plan described by s. 401(a), s. 401(k), s. 403(b), s.
1231 408(k), or s. 408(p) of the Internal Revenue Code, if
1232 established or maintained by an employer;
1233 3. A government or church plan defined in s. 414 of the
1234 Internal Revenue Code, a government or church welfare benefit
1235 plan, or a deferred compensation plan of a state or local
1236 government or tax-exempt organization under s. 457 of the
1237 Internal Revenue Code; or
1238 4. A nonqualified deferred compensation arrangement
1239 established or maintained by an employer or plan sponsor;
1240 (c)5. Settlements or assumptions of liabilities associated
1241 with personal injury litigation or a dispute or claim -resolution
1242 process; or
1243 (d)6. Formal prepaid funeral contracts.
1244 (5) DUTIES OF INSURERS AND AGENTS.—
1245 (a) An agent, when making a recommendation of an annuity,
1246 shall act in the best interest of the consumer under the
1247 circumstances known at the time the recommendation is made,
1248 without placing the financial interest of the agent or insur er
1249 ahead of the consumer's interest. An agent has acted in the best
1250 interest of the consumer if the agent has satisfied the
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1251 following obligations regarding care, disclosure, conflict of
1252 interest, and documentation:
1253 1.a. The agent, in making a recommendation, shall exercise
1254 reasonable diligence, care, and skill to:
1255 (I) Know the financial situation, insurance needs, and
1256 financial objectives of the consumer.
1257 (II) Understand the available options after making a
1258 reasonable inquiry into options available to the agent.
1259 (III) Have a reasonable basis to believe the recommended
1260 option effectively addresses the consumer's financial situation,
1261 insurance needs, and financial objectives over the life of the
1262 product, as evaluated in light of the consumer profile
1263 information.
1264 (IV) Communicate the reason or reasons for the
1265 recommendation.
1266 b. The requirements of subparagraph a. include:
1267 (I) Making reasonable efforts to obtain consumer profile
1268 information from the consumer before the recommendation of an
1269 annuity.
1270 (II) Requiring an agent to consider the types of products
1271 the agent is authorized and licensed to recommend or sell
1272 address the consumer's financial situation, insurance needs, and
1273 financial objectives. This does not require analysis or
1274 consideration of any products outside the authority and license
1275 of the agent or other possible alternative products or
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1276 strategies available in the market at the time of the
1277 recommendation. Agents shall be held to standards applicable to
1278 agents with similar authority and licensure.
1279 (III) Having a reasonable basis to believe the consumer
1280 would benefit from certain features of the annuity, such as
1281 annuitization, death or living benefit or other insurance-
1282 related features.
1283 c. The requirements of this subsection do not create a
1284 fiduciary obligation or relationship and only create a
1285 regulatory obligation as provided in this section.
1286 d. The consumer profile information, characteristics of
1287 the insurer and product costs, rates, benefits and features are
1288 those factors generally relevant in making a determination
1289 whether an annuity effectively addresses the consumer's
1290 financial situation, insurance needs, and financial objectives
1291 but the level of importance of each factor under the care
1292 obligation of this paragraph may vary depending on the facts and
1293 circumstances of a particular case. However, each factor may not
1294 be considered in isolation.
1295 e. The requirements under subparagraph a. apply to the
1296 particular annuity as a whole and the underlying subaccounts to
1297 which funds are allocated at the time of purchase or exchange of
1298 an annuity, and riders and similar product enhancements, if any.
1299 f. Subparagraph a. does not require that the annuity with
1300 the lowest one-time occurrence compensation structure or
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1301 multiple occurrence compensation structure shall necessarily be
1302 recommended.
1303 g. Subparagraph a. does not require the agent to have
1304 ongoing monitoring obligations under the care obligation,
1305 although such an obligation may be separately owed under the
1306 terms of a fiduciary, consulting, investment, advising, or
1307 financial planning agreement between the consumer and the agent.
1308 h. In the case of an exchange or replacement of an
1309 annuity, the agent shall consider the whole transaction, which
1310 includes taking into consideration whether:
1311 (I) The consumer will incur a surrender charge; be subject
1312 to the commencement of a new surrender period; lose existing
1313 benefits, such as death, living or other contractual benefits;
1314 or be subject to increased fees, investment advisory fees, or
1315 charges for riders and similar product enhancements.
1316 (II) The replacing product would substantially benefit the
1317 consumer in comparison to the replaced product over the life of
1318 the product.
1319 (III) The consumer has had another annuity exchange or
1320 replacement and, in particular, an exchange or replacement
1321 within the preceding 60 months.
1322 i. This section does not require an agent to obtain any
1323 license other than an agent license with the appropriate line of
1324 authority to sell, solicit, or negotiate insurance in this
1325 state, including, but not limited to, any securities license, in
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1326 order to fulfill the duties and obligations contained in this
1327 section; provided, the agent does not give advice or provide
1328 services that are otherwise subject to securities laws or engage
1329 in any other activity requiring other professional licenses.
1330 2.a. Before the recommendation or sale of an annuity, the
1331 agent shall prominently disclose to the consumer on a form
1332 substantially similar to that posted on the office website as
1333 Appendix A:
1334 (I) A description of the scope and terms of the
1335 relationship with the consumer and the role of the agent in the
1336 transaction.
1337 (II) An affirmative statement on whether the agent is
1338 licensed and authorized to sell the following products:
1339 (A) Fixed annuities.
1340 (B) Fixed indexed annuities.
1341 (C) Variable annuities.
1342 (D) Life insurance.
1343 (E) Mutual funds.
1344 (F) Stocks and bonds.
1345 (G) Certificates of deposit.
1346 (III) An affirmative statement describing the insurers for
1347 which the agent is authorized, contracted or appointed, or
1348 otherwise able to sell insurance products, using the following
1349 descriptions:
1350 (A) From one insurer;
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1351 (B) From two or more insurers; or
1352 (C) From two or more insurers, although primarily
1353 contracted with one insurer.
1354 (IV) A description of the sources and types of cash
1355 compensation and noncash compensation to be received by the
1356 agent, including whether the agent is to be compensated for the
1357 sale of a recommended annuity by commission as part of premium
1358 or other remuneration received from the insurer, intermediary or
1359 other agent, or by fee as a result of a contract for advice or
1360 consulting services; and
1361 (V) A notice of the consumer's right to request additional
1362 information regarding cash compensation described in
1363 subparagraph b.
1364 b. Upon request of the consumer or the consumer's
1365 designated representative, the agent shall disclose:
1366 (I) A reasonable estimate of the amount of cash
1367 compensation to be received by the agent, which may be stated as
1368 a range of amounts or percentages.
1369 (II) Whether the cash compensation is a one-time or
1370 multiple occurrence amount, and if a multiple occurrence amount,
1371 the frequency and amount of the occurrence, which may be stated
1372 as a range of amounts or percentages; and When recommending the
1373 purchase or exchange of an annuity to a consumer which results
1374 in an insurance transaction or series of insurance transactions,
1375 the agent, or the insurer where no agent is involved, must have
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1376 reasonable grounds for believing that the recommendation is
1377 suitable for the consumer, based on the consumer's suitability
1378 information, and that there is a reasonable basis to believe all
1379 of the following:
1380 c.1. Before or at the time of the recommendation or sale
1381 of an annuity, the agent shall have a reasonable basis to
1382 believe the consumer has been reasonably informed of various
1383 features of the annuity, such as the potential surrender period
1384 and surrender charge; potential tax penalty if the consumer
1385 sells, exchanges, surrenders, or annuitizes the annuity;
1386 mortality and expense fees; any annual fees; investment advisory
1387 fees; potential charges for and features of riders or other
1388 options of the annuity; limitations on interest returns;
1389 potential changes in nonguaranteed elements of the annuity;
1390 insurance and investment components; and market risk.
1391 2. The consumer would benefit from certain features of the
1392 annuity, such as tax-deferred growth, annuitization, or the
1393 death or living benefit.
1394 3. An agent shall identify and avoid or reasonably manage
1395 and disclose material conflicts of interest, including material
1396 conflicts of interest related to an ownership interest.
1397 4. An agent shall at the time of the recommendation or
1398 sale:
1399 a. Make a written record of any recommendation and the
1400 basis for the recommendation, subject to this section .
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1401 b. Obtain a consumer signed statement on a form
1402 substantially similar to that posted on the office website as
1403 Appendix B, documenting:
1404 (I) A consumer's refusal to provide the consumer profile
1405 information, if any.
1406 (II) A consumer's understanding of the ramifications of
1407 not providing his or her consumer profile information or
1408 providing insufficient consumer profile information.
1409 c. Obtain a consumer signed statement on a form
1410 substantially similar to that posted on the office website as
1411 Appendix C, acknowledging the annuity transaction is not
1412 recommended if a consumer decides to enter into an annuity
1413 transaction that is not based on the agent's recommendation.
1414 5. Application of the best interest obligation. Any
1415 requirement applicable to an agent under this subsection shall
1416 apply to every agent who has exercised material control or
1417 influence in the making of a recommendation and has received
1418 direct compensation as a result of the recommendation or sale,
1419 regardless of whether the agent has had any direct contact with
1420 the consumer. Activities such as providing or delivering
1421 marketing or education materials, product wholesaling or other
1422 back office product support, and general supervision of an agent
1423 do not, in and of themselves, constitute material contr ol or
1424 influence.
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1425 3. The particular annuity as a whole, the underlying
1426 subaccounts to which funds are allocated at the time of purchase
1427 or exchange of the annuity, and riders and similar product
1428 enhancements, if any, are suitable; and, in the case of an
1429 exchange or replacement, the transaction as a whole is suitable
1430 for the particular consumer based on his or her suitability
1431 information.
1432 4. In the case of an exchange or replacement of an
1433 annuity, the exchange or replacement is suitable after
1434 considering whether the consumer:
1435 a. Will incur a surrender charge; be subject to the
1436 commencement of a new surrender period; lose existing benefits,
1437 such as death, living, or other contractual benefits; or be
1438 subject to increased fees, investment advisory fees, or charges
1439 for riders and similar product enhancements;
1440 b. Would benefit from product enhancements and
1441 improvements; and
1442 c. Has had another annuity exchange or replacement,
1443 including an exchange or replacement within the preceding 36
1444 months.
1445 (b) Before executing a purchase, exchange, or replacement
1446 of an annuity resulting from a recommendation, an insurer or its
1447 agent must make reasonable efforts to obtain the consumer's
1448 suitability information. The information shall be collected on
1449 form DFS-H1-1980, which is hereby incorporated by reference, and
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1450 completed and signed by the applicant and agent. Questions
1451 requesting this information must be presented in at least 12 -
1452 point type and be sufficiently clear so as to be readily
1453 understandable by both the agent and the consumer. A true and
1454 correct executed copy of the form must be provided by the agent
1455 to the insurer, or to the person or entity that has contracted
1456 with the insurer to perform this function as authorized by this
1457 section, within 10 days after execution of the form, and shall
1458 be provided to the consumer no later than the date of delivery
1459 of the contract or contracts.
1460 (c) Except as provided under paragraph (d), an insurer may
1461 not issue an annuity recommended to a consumer unless there is a
1462 reasonable basis to believe the annuity is suitable based on the
1463 consumer's suitability information.
1464 (b)(d) 1. Except as provided under subparagraph 2, An
1465 insurer's issuance of an annuity must be reasonable based on all
1466 the circumstances actually known to the insurer at the time the
1467 annuity is issued. However, an insurer or its agent shall not
1468 have does not have an obligation to a consumer related to an
1469 annuity transaction under paragraph (a)1.(a) or paragraph (c)
1470 if:
1471 a.1. A recommendation has not been made;
1472 b.2. A recommendation was made and is later found to have
1473 been based on materially inaccurate information provided by the
1474 consumer;
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1475 c.3. A consumer refuses to provide relevant consumer
1476 profile suitability information and the annuity transaction is
1477 not recommended; or
1478 d.4. A consumer decides to enter into an annuity
1479 transaction that is not based on a recommendation of an insurer
1480 or its agent.
1481 2. An insurer's issuance of an annuity subject to
1482 subparagraph 1. shall be reasonable under all the circumstances
1483 actually known to the insurer at the time the annuity is issued.
1484 (c)1. Except as permitted under paragraph (b), an insurer
1485 may not issue an annuity recommended to a consumer unless there
1486 is a reasonable basis to believe the annuity would effectively
1487 address the particular consumer's financial situation, insurance
1488 needs, and financial objectives based on the consumer's consumer
1489 profile information.
1490 (e) At the time of sale, the agent or the agent's
1491 representative must:
1492 1. Make a record of any recommendation made to the
1493 consumer pursuant to paragraph (a);
1494 2. Obtain the consumer's signed statement documenting his
1495 or her refusal to provide suitability information, if
1496 applicable; and
1497 3. Obtain the consumer's signed statement acknowledging
1498 that an annuity transaction is not recommended if he or she
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1499 decides to enter into an annuity transaction that is not based
1500 on the insurer's or its agent's recommendation, if applicable.
1501 (f) Before executing a replacement or exchange of an
1502 annuity contract resulting from a recommendation, the agent must
1503 provide on form DFS-H1-1981, which is hereby incorporated by
1504 reference, information that compares the differences between the
1505 existing annuity contract and the annuity contract being
1506 recommended in order to determine the suitability of the
1507 recommendation and its benefit to the consumer. A true and
1508 correct executed copy of this form must be provided by the agent
1509 to the insurer, or to the person or entity that has contracted
1510 with the insurer to perform this function as authorized by this
1511 section, within 10 days after execution of the form, and must be
1512 provided to the consumer no later than the date of delivery of
1513 the contract or contracts.
1514 2.(g) An insurer shall establish and maintain a
1515 supervision system that is reasonably designed to achieve the
1516 insurer's and its agent's compliance with this section
1517 including, but not limited to, the following:.
1518 1. Such system must include, but is not limited to:
1519 a. The insurer shall establish and maintain Maintaining
1520 reasonable procedures to inform its agents of the requirements
1521 of this section and incorporating those requirements into
1522 relevant agent training manuals.;
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1523 b. The insurer shall establish and maintain Establishing
1524 standards for agent product training and shall establish and
1525 maintain reasonable procedures to require its agents to comply
1526 with the requirements of subsection (6).;
1527 c. The insurer shall provide Providing product-specific
1528 training and training materials that explain all material
1529 features of its annuity products to its agents.;
1530 d. The insurer shall establish and maintain Maintaining
1531 procedures for the review of each recommendation before issuance
1532 of an annuity which are designed to ensure that there is a
1533 reasonable basis to determine the recommended annuity would
1534 effectively address the particular consumer's financial
1535 situation, insurance needs, and financial objectives for
1536 determining that a recommendation is suitable. Such review
1537 procedures may use a screening system for identifying selected
1538 transactions for additional review and may be accomplished
1539 electronically or through other means, including, but not
1540 limited to, physical review. Such electronic or other system may
1541 be designed to require additional review only of those
1542 transactions identified for additional review using established
1543 selection criteria.;
1544 e. The insurer shall establish and maintain Maintaining
1545 reasonable procedures to detect recommendations that are not in
1546 compliance with paragraphs (a), (b), (d), and (e). This may
1547 include, but is not limited to suitable, such as confirmation of
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1548 consumer profile information, systematic customer surveys, agent
1549 and consumer interviews, confirmation letters, agent statements
1550 or attestations, and internal monitoring programs. This sub-
1551 subparagraph does not prevent an insurer from using sampling
1552 procedures or from confirming the consumer profile suitability
1553 information after the issuance or delivery of the annuity.; and
1554 f. The insurer shall establish and maintain reasonable
1555 procedures to assess, prior to, or upon issuance or delivery of,
1556 an annuity, whether an agent has provided to the consumer the
1557 information required to be provided under this subsection.
1558 g. The insurer shall establish and maintain reasonable
1559 procedures to identify and address suspicious consumer refusals
1560 to provide consumer profile information.
1561 h. The insurer shall establish and maintain reasonable
1562 procedures to identify and eliminate any sales contests, sales
1563 quotas, bonuses, and noncash compensation that are based on the
1564 sales of specific annuities within a limited period of time. The
1565 requirements of this subparagraph are not intended to prohibit
1566 the receipt of health insurance, office rents, office support,
1567 retirement benefits, or other employee benefits by employees as
1568 long as those benefits are not based upon the volume of sales of
1569 a specific annuity within a limited period of time.
1570 i.f. The insurer shall annually provide providing a
1571 written report to senior managers, including the senior manager
1572 who is responsible for audit functions, which details a review,
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1573 along with appropriate testing, which is reasonably designed to
1574 determine the effectiveness of the supervision system, the
1575 exceptions found, and corrective action taken or recommended, if
1576 any.
1577 3.2. An insurer is not required to include in its
1578 supervision system:
1579 a. Agent recommendations to consumers of products other
1580 than the annuities offered by the insurer;
1581 b. Consideration of or comparison to options available to
1582 the agent or compensation relating to those options other than
1583 annuities or other products offered by the insurer.
1584 4.3. An insurer may contract for performance of a
1585 function, including maintenance of procedures, required under
1586 subparagraph 1.
1587 a. An insurer's supervision system under this subsection
1588 shall include supervision of contractual performance under this
1589 subsection If an insurer contracts for the performance of a
1590 function, the insurer must include the supervision of
1591 contractual performance as part of those procedures listed in
1592 subparagraph 1. These include, but are not limited to:
1593 (I) Monitoring and, as appropriate, conducting audits to
1594 ensure that the contracted function is properly performed; and
1595 (II) Annually obtaining a certification from a senior
1596 manager who has responsibility for the contracted function that
1597 the manager has a reasonable basis to represent, and does not
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1598 represent for representing that the function is being properly
1599 performed.
1600 b. An insurer is responsible for taking appropriate
1601 corrective action and may be subject to sanctions and penalties
1602 pursuant to subsection (8) (7) regardless of whether the insurer
1603 contracts for performance of a function and regardless of the
1604 insurer's compliance with sub-subparagraph a.
1605 (d)(h) Neither an agent nor an insurer shall may not
1606 dissuade, or attempt to dissuade, a consumer from:
1607 1. Truthfully responding to an insurer's request for
1608 confirmation of consumer profile suitability information;
1609 2. Filing a complaint; or
1610 3. Cooperating with the investigation of a complaint.
1611 (e)1.(i) Recommendations and sales made in compliance with
1612 comparable standards shall FINRA requirements pertaining to the
1613 suitability and supervision of annuity transactions satisfy the
1614 requirements of this section. This applies to all
1615 recommendations and FINRA broker-dealer sales of variable
1616 annuities made by financial professionals in compliance with
1617 business rules, controls, and procedures that satisfy a
1618 comparable standard even if such standard would not otherwise
1619 apply to the product or recommendation at issue and fixed
1620 annuities if the suitability and supervision is similar to those
1621 applied to variable annuity sales. However, this paragraph does
1622 not limit the ability of the office or the department to
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1623 investigate and enforce, including investigate, the provisions
1624 of this section.
1625 2. Subparagraph 1. shall not limit the insurer's
1626 obligation to comply with subsection (5)(c)1., although the
1627 insurer may base its analysis on information received from
1628 either the financial professional or the entity supervising the
1629 financial professional.
1630 3. For this paragraph to apply, an insurer shall must:
1631 a.1. Monitor relevant conduct of the financial
1632 professional seeking to rely on subparagraph 1. or the entity
1633 responsible for supervising the financial professional, such as
1634 the financial professional's broker-dealer or an investment
1635 adviser registered under federal or state securities law, the
1636 FINRA member broker-dealer using information collected in the
1637 normal course of an insurer's business; and
1638 b.2. Provide to the entity responsible for supervising the
1639 financial professional seeking to rely on subparagraph 1., such
1640 as the financial professional's broker dealer or investment
1641 adviser registered under federal or state securities laws, FINRA
1642 member broker-dealer information and reports that are reasonably
1643 appropriate to assist such entity the FINRA member broker-dealer
1644 in maintaining its supervision system.
1645 4. For purposes of this paragraph, the term:
1646 a. "Comparable standards" means:
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1647 (I) With respect to broker-dealers and registered
1648 representatives of broker-dealers, applicable SEC and FINRA
1649 rules pertaining to best interest obligations and supervision of
1650 annuity recommendations and sales including, but not limited to,
1651 Regulation Best Interest, 17 C.F.R. s. 240.15l–1, and any
1652 amendments or successor regulations thereto;
1653 (II) With respect to investment advisers registered under
1654 federal or state securities laws or investment adviser
1655 representatives, the fiduciary duties and all other requirements
1656 imposed on such investment advisers or investment adviser
1657 representatives by contract or under the Investment Advisers Act
1658 of 1940 or applicable state securities laws, including, but not
1659 limited to, Form ADV and interpretations; and
1660 (III) With respect to plan fiduciaries or fiduciaries, the
1661 duties, obligations, prohibitions and all other requirements
1662 attendant to such status under ERISA, or the IRC and any
1663 amendments or successor statutes thereto.
1664 b. "Financial professional" means an agent that is
1665 regulated and acting as:
1666 (I) A broker dealer registered under federal or state
1667 securities laws or a registered representative of a broker -
1668 dealer;
1669 (II) An investment adviser registered under federal or
1670 state securities laws or an investment adviser representative
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Amendment No. 1
1671 associated with the federal or state registered investment
1672 adviser; or
1673 (III) A plan fiduciary under Section 3(21) of the Employee
1674 Retirement Income Security Act of 1974 (ERISA) or fiduciary
1675 under Section 4975(e)(3) of the Internal Revenue Code (IRC) or
1676 any amendments or successor statutes thereto.
1677 (6) AGENT TRAINING.—
1678 (a) An agent shall not solicit the sale of an annuity
1679 product unless the agent has adequate knowledge of the product
1680 to recommend the annuity and the agent is in compliance with the
1681 insurer's standards for product training. An agent may rely on
1682 insurer-provided product-specific training standards and
1683 materials to comply with this subsection.
1684 (b)1.a. An agent who engages in the sale of annuity
1685 products shall complete a one-time 4 hour training course. This
1686 requirement is not part of an agent's continuing ed ucation
1687 requirement in s. 626.2815; however, if a course provider
1688 submits and receives approval from the Department of Financial
1689 Services, then the course could also be eligible for continuing
1690 education credit pursuant to s. 626.2815.
1691 b. Agents who hold a life insurance line of authority on
1692 the effective date of this act and who desire to sell annuities
1693 shall complete the requirements of this subsection within 6
1694 months after the effective date of this act. Individuals who
1695 obtain a life insurance line of authority after the effective
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1696 date of this act may not engage in the sale of annuities until
1697 the annuity training course required under this subsection has
1698 been completed.
1699 2. The minimum length of the training required under this
1700 subsection is 4 hours.
1701 3. The training required under this subsection shall
1702 include information on the following topics:
1703 a. The types of annuities and various classifications of
1704 annuities.
1705 b. Identification of the parties to an annuity.
1706 c. How product-specific annuity contract features affect
1707 consumers.
1708 d. The application of income taxation of qualified and
1709 nonqualified annuities.
1710 e. The primary uses of annuities.
1711 f. Appropriate standard of conduct, sales practices,
1712 replacement, and disclosure requirements.
1713 4. Providers of courses intended to comply with this
1714 subsection shall cover all topics listed in the prescribed
1715 outline and shall not present any marketing information or
1716 provide training on sales techniques or provide specific
1717 information about a particular insurer's products. Additional
1718 topics may be offered in conjunction with and in addition to the
1719 required outline.
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1720 5. An agent who has completed an annuity training course
1721 prior to the effective date of this act shall, within 6 months
1722 after the effective date of this act, complete either:
1723 a. A new 4-hour training course; or
1724 b. An additional one-hour training course on appropriate
1725 sales practices, replacement, and disclosure requirements under
1726 this section.
1727 6. Annuity training courses may be conducted and completed
1728 by classroom or self-study methods.
1729 7. Providers of annuity training shall issue certificates
1730 of completion.
1731 8. The satisfaction of the training requirements of
1732 another state that are substantially similar to the provisions
1733 of this subsection shall be deemed to satisfy the training
1734 requirements of this subsection in this state.
1735 9. The satisfaction of the training requirements of any
1736 course or courses with components substantially similar to the
1737 provisions of this subsection shall be deemed to satisfy the
1738 training requirements of this subsection in this state.
1739 10. An insurer shall verify that an agent has completed
1740 the annuity training course required under this subsection
1741 before allowing the agent to sell an annuity product for t hat
1742 insurer.
1743 (7)(6) RECORDKEEPING.—
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1744 (a) Insurers and agents must maintain or be able to make
1745 available to the office or department records of the information
1746 collected from the consumer and other information used in making
1747 the recommendations that were the basis for insurance
1748 transactions for 5 years after the insurance transaction is
1749 completed by the insurer. An insurer may maintain the
1750 documentation on behalf of its agent.
1751 (b) Records required to be maintained under this
1752 subsection may be maintained in paper, photographic,
1753 microprocess, magnetic, mechanical, or electronic media, or by
1754 any process that accurately reproduces the actual document.
1755 (8)(7) COMPLIANCE MITIGATION; PENALTIES.—
1756 (a) An insurer is responsible for compliance with this
1757 section. If a violation occurs because of the action or inaction
1758 of the insurer or its agent which results in harm to a consumer,
1759 the office may order the insurer to take reasonably appropriate
1760 corrective action for the consumer and may impose appropriate
1761 penalties and sanctions.
1762 (b) The department may order:
1763 1. An insurance agent to take reasonably appropriate
1764 corrective action for a consumer harmed by a violation of this
1765 section by the insurance agent, including monetary restitution
1766 of penalties or fees incurred by the consumer, and impose
1767 appropriate penalties and sanctions.
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1768 2. A managing general agency or insurance agency that
1769 employs or contracts with an insurance agent to sell or solicit
1770 the sale of annuities to consumers to take reasonably
1771 appropriate corrective action for a consumer harmed by a
1772 violation of this section by the insurance agent.
1773 (c) In addition to any other penalty authorized under
1774 chapter 626, the department shall order an insurance agent to
1775 pay restitution to a consumer who has been deprived of money by
1776 the agent's misappropriation, conversion, or unlawful
1777 withholding of moneys belonging to the consumer in the course of
1778 a transaction involving annuities. The amount of restitution
1779 required to be paid may not exceed the amount misappropriated,
1780 converted, or unlawfully withheld. This paragraph does not limit
1781 or restrict a person's right to seek other remedies as provided
1782 by law.
1783 (d) Any applicable penalty under the Florida Insurance
1784 Code for a violation of this section shall be reduced or
1785 eliminated according to a schedule adopted by the office or the
1786 department, as appropriate, if corrective action for the
1787 consumer was taken promptly after a violation was discovered.
1788 (e) A violation of this section does not create or imply a
1789 private cause of action.
1790 (9)(8) PROHIBITED CHARGES.—An annuity contract issued to a
1791 senior consumer age 65 or older may not contain a surrender or
1792 deferred sales charge for a withdrawal of money from an annuity
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1793 exceeding 10 percent of the amount withdrawn. The charge shall
1794 be reduced so that no surrender or deferred sales charge exists
1795 after the end of the 10th policy year or 10 years after the date
1796 of each premium payment if multiple premiums are paid, whichever
1797 is later. This subsection does not apply to annuities purchased
1798 by an accredited investor, as defined in Regulation D as adopted
1799 by the United States Securities and Exchange Commission, or to
1800 those annuities specified in paragraph (4)(b).
1801 (10)(9) RULES.—The department and the commission may adopt
1802 rules to administer this section.
1803 (11) The Department is authorized to adopt by rulemaking
1804 the three forms prescribed in Appendix A through C of the
1805 National Association of Insurance Commissioners Suitability in
1806 Annuity Transactions Model Regulation as follows:
1807 INSURANCE AGENT (PRODUCER) DISCLOSURE FOR ANNUITIES;
1808 CONSUMER REFUSAL TO PROVIDE INFORMATION; and
1809 Consumer Decision to Purchase an Annuity NOT Based on a
1810 Recommendation.
1811 Section 18. Paragraph (b) of subsection (8) of section
1812 634.041, Florida Statutes, is amended to read:
1813 634.041 Qualifications for license.—To qualify for and
1814 hold a license to issue service agreements in this state, a
1815 service agreement company must be in compliance with this part,
1816 with applicable rules of the commission, with related sections
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1817 of the Florida Insurance Code, and with its charter powers and
1818 must comply with the following:
1819 (8)
1820 (b) A service agreement company does not have to establish
1821 and maintain an unearned premium reserve if it secures and
1822 maintains contractual liability insurance in accordance with the
1823 following:
1824 1. Coverage of 100 percent of the claim exposure is
1825 obtained from an insurer approved by the office, which holds a
1826 certificate of authority under s. 624.401 to do business within
1827 this state, or secured through a risk retention group, which is
1828 authorized to do business within this state under s. 627.943 or
1829 s. 627.944. Such insurer or risk retention group must maintain a
1830 surplus as regards policyholders of at least $15 million.
1831 2. If the service agreement company does not meet its
1832 contractual obligations, the contractual liability insurance
1833 policy binds its issuer to pay or cause to be paid to the
1834 service agreement holder all legitimate claims and cancellation
1835 refunds for all service agreements issued by the service
1836 agreement company while the policy was in effect. This
1837 requirement also applies to those service agreements for which
1838 no premium has been remitted to the insurer.
1839 3. If the issuer of the contractual liability policy is
1840 fulfilling the service agreements covered by the contractual
1841 liability policy and the service agreement holder cancels the
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1842 service agreement, the issuer must make a full refund of
1843 unearned premium to the consumer, subject to the cancellation
1844 fee provisions of s. 634.121(3). The sales representative and
1845 agent must refund to the contractual liability policy issuer
1846 their unearned pro rata commission.
1847 4. The policy may not be canceled, terminated, or
1848 nonrenewed by the insurer or the service agreement company
1849 unless a 90-day written notice thereof has been given to the
1850 office by the insurer before the date of the cancellation,
1851 termination, or nonrenewal.
1852 5. The service agreement company must provide the office
1853 with the claims statistics.
1854 6. A policy issued in compliance with this subparagraph
1855 may either pay 100 percent of claims as they are incurred, or
1856 100 percent of claims due in the event of the failure of the
1857 service agreement company to pay such claims when due.
1858
1859 All funds or premiums remitted to an insurer by a motor vehicle
1860 service agreement company under this part shall remain in the
1861 care, custody, and control of the insurer and shall be counted
1862 as an asset of the insurer; provided, however, this requirement
1863 does not apply when the insurer and the motor vehicle service
1864 agreement company are affiliated companies and members of an
1865 insurance holding company system. If the motor vehicle service
1866 agreement company chooses to comply with this paragraph but also
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1867 maintains a reserve to pay claims, such reserve shall only be
1868 considered an asset of the covered motor vehicle service
1869 agreement company and may not be simultaneously counted as an
1870 asset of any other entity.
1871 Section 19. Paragraphs (d), (e), and (f) of subsection
1872 (17) of section 634.401, Florida Statutes, are amended to read:
1873 634.401 Definitions.—As used in this part, the term:
1874 (17) "Manufacturer" means any entity or its affiliate
1875 which:
1876 (d) Maintains outstanding debt obligations, if any, rated
1877 in the top four rating categories by a recognized rating
1878 service;
1879 (d)(e) Has and maintains at all times, a minimum net worth
1880 of at least $100 $10 million as evidenced by certified financial
1881 statements prepared by an independent certified public
1882 accountant in accordance with generally accepted accounting
1883 principles; and
1884 (e)(f) Is authorized to do business in this state.
1885 Section 20. The Division of Law Revision is directed to
1886 replace the phrase "the effective date of this act" wherever it
1887 occurs in this act with the date this act becomes a law.
1888 Section 21. Except as otherwise expressly provided, this
1889 act shall take effect July 1, 2023.
1890
1891
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Amendment No. 1
1892 -----------------------------------------------------
1893 T I T L E A M E N D M E N T
1894 Remove everything before the enacting clause and insert:
1895 An act relating to consumer protection; amending s. 494.001,
1896 F.S.; revising the definition of the term "branch office";
1897 defining the term "remote location"; authorizing a licensee
1898 under ch. 494, F.S., to allow loan originators to work from
1899 remote locations if specified conditions are met; amending s.
1900 494.0067, F.S.; specifying that mortgage lenders may transact
1901 business from branch offices and remote locations; providing a
1902 requirement for operating remote locations; creating s.
1903 501.2042, F.S.; defining terms; providing requirements for
1904 organizers of crowd-funding campaigns related to disasters and
1905 for crowd-funding platforms; amending s. 520.23, F.S.; revising
1906 disclosure requirements for agreements governing the sale or
1907 lease of a distributed energy generation system; amending s.
1908 626.551, F.S.; revising the timeframe in which an insurance
1909 representative must notify the Department of Financial Services
1910 of certain changes in information; amending s. 626.602, F.S.;
1911 providing applicability of provisions relating to the
1912 disapproval of insurance agency names to adjusting firms;
1913 revising grounds on which such names may be disapproved by the
1914 department; providing for repeal of a provision upon becoming
1915 obsolete; amending s. 626.854, F.S.; revising the definition of
1916 "public adjuster"; prohibiting public adjusters from contracting
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1917 with anyone other than the named insured without the insured's
1918 written consent; specifying a penalty for noncompliance;
1919 specifying timeframes in which an insured or a claimant may
1920 cancel a public adjuster's contract without penalty or contract
1921 under certain circumstances; revising requirements for public
1922 adjuster's contracts; specifying requirements for public
1923 adjusters if the insurer, within a certain timeframe, pays or
1924 commits in writing to pay to the insured the policy limit of the
1925 policy; specifying the commission a public adjuster receives
1926 under certain circumstances; amending s. 626.860, F.S.;
1927 providing that an attorney's exemption from public adjuster
1928 licensure requirements do not apply to certain persons; amending
1929 s. 626.875, F.S.; revising recordkeeping requirements for
1930 appointed independent adjusters and licensed public adjusters;
1931 amending s. 626.8796, F.S.; revising requirements for public
1932 adjuster contracts; specifying requirements for and prohibitions
1933 on public adjusters relating to such contracts; providing
1934 construction; authorizing the department to adopt rules;
1935 amending s. 626.8797, F.S.; revising a fraud statement
1936 requirement in proof-of-loss statements; amending s. 626.9541,
1937 F.S.; adding a unfair or deceptive insurance act relating to
1938 health insurance contracts; amending s. 627.4025, F.S.; revising
1939 the definition of the term "hurricane," and defining the term
1940 "hurricane deductible," as used in policies providing
1941 residential coverage; amending s. 627.4133, F.S.; revising the
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1942 timeframe after which certain insurers may not cancel policies
1943 except for specified reasons; amending s. 627.4554, F.S.;
1944 revising legislative purpose; revising applicability; revising
1945 and defining terms; revising and specifying duties of insurers
1946 and agents relating to the recommendation and sale of annuity
1947 investments; specifying comparable standards that comply with
1948 such requirements; specifying agent training requirements;
1949 providing and revising construction; amending s. 634.041, F.S.;
1950 specifying authorized methods of paying claims for motor vehicle
1951 service agreements; amending s. 634.401, F.S.; revising the
1952 definition of the term "manufacturer"; providing a directive to
1953 the Division of Law Revision; providing an effective date.
1954
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HB 1575
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1575 Public Safety Emergency Communications Systems
SPONSOR(S): Brackett
TIED BILLS: IDEN./SIM. BILLS: SB 1614
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Fortenberry Lloyd
2) Local Administration, Federal Affairs & Special
Districts Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The State Fire Marshal (SFM), within the Department of Financial Services (DFS), enforc es the provisions of ch.
633, F.S., and all other applicable laws relating to fire safety. The SFM adopts by rule the Florida Fire Prevention
Code (FFPC), which is the minimum fire prevention code deemed adopted in each municipality, county, and special
district with firesafety responsibilities. Local authorities having jurisdiction (LAHJs) set standards for radio signal
strength in buildings within their jurisdiction to ensure consistent fire and rescue communication capabilities. Two-
way radio communication enhancement systems (enhancement systems) are post-construction systems installed
that accept and amplify radio signals used by first responders so that the radio signal strength at ground level,
where a fire rescue operation might be based, is equal to the radio signal strength in all locations throughout the
building.
LAHJs must determine minimum radio signal strength for fire department communications in all new and existing
high-rise buildings. The FFPC defines a high-rise building as a building where the floor of an occupiable story is
greater than 75 feet above the lowest level of fire department vehicle access. In 2022, the Legislature clarified that
the LAHJ has jurisdiction over buildings of any height, not just high-rise buildings. Enhancement systems, or
equivalent systems may be used to comply with the minimum radio signal strength requirements for fire department
communications, but systems are not required in apartment buildings that are 75 feet or less in height that also meet
all of the following criteria: constructed using wood framing; has 150 or less dwelling units; and all dwelling units
discharge to the exterior or to a corridor that leads directly to an exit as defined in the Florida Building Code (Code).
The bill creates a framework for determining whether an enhancement system must be installed in a new or existing
building. Before an LAHJ may require an assessment of the need for, or the installation of, a enhancement system
in a new or existing building (assessment), a qualified third party must certify that the LAHJ’s public safety
emergency communications systems meets or exceeds the minimum radio coverage design criteria for emergency
services communications systems in the current edition of the NFPA. The certification is valid until the next triennial
adoption of the FFPC, which will incorporate changes made to the NFPA.
The bill establishes that, if an LAHJ has a valid radio coverage design certification, the LAHJ may only require an
assessment to determine the need for an enhancement system once: every three years for high-rise buildings; or
every 5 years for all other buildings. If an assessment determines that the installation of enhancement system is
required, the LAHJ may not withhold the issuance of a certificate of occupancy for the building if the registered
architect or professional engineer who designed the building determined that a enhancement system is not
necessary for the building to meet the minimum standards for interior radio coverage and signal strength. Finally,
the bill prohibits an LAHJ from requiring the installation of a enhancement system until at least 90 days after the
building’s interior radio coverage and signal strength assessment report is completed.
The bill has no impact on state government revenues or expenditures or local government revenues. It has an
indeterminate effect on local government expenditures and an indeterminate direct economic impact on the privat e
sector.
The bill is effective on July 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1575.IBS
DATE: 3/20/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
State Fire Marshal
Chapter 633, F.S., Fire Prevention and Control, designates the Chief Financial Officer (CFO) as the
State Fire Marshal (SFM). The SFM, through the Division of the State Fire Marshal within the
Department of Financial Services (DFS), is charged with enforcing the provisions of ch. 633, F.S., and
all other applicable laws relating to fire safety.1 The SFM also has the responsibility to minimize the
loss of life and property due to fire.2 Pursuant to this authority, the SFM regulates, trains, and certifies
fire service personnel and firesafety inspectors; investigates the causes of fires; enforces arson laws;
regulates the installation of fire equipment; conducts firesafety inspections of state property; and
operates the Florida State Fire College.
Florida Fire Prevention Code
The SFM adopts by rule the Florida Fire Prevention Code (FFPC), which contains all fire safety laws
and rules that pertain to the design, construction, erection, alteration, modification, repair, and
demolition of public and private buildings, structures, and facilities and the enforcement of such fire
safety laws and rules.3 The SFM adopts a new edition of the FFPC every three years 4 and the 7th
edition of the FFPC took effect on December 31, 2020. 5 The FFPC is largely based on the National Fire
Protection Association’s (NFPA) Standard 1, Fire Prevention Code, along with the current edition of the
NFPA’s Life Safety Code, NFPA 101.6
The FFPC is the minimum fire prevention code deemed adopted in each municipality, county, and
special district with firesafety responsibilities, and applies to every building and structure throughout the
state with few exceptions.7 Municipalities, counties, and special districts with firesafety responsibilities
may supplement the FFPC with more stringent standards. 8 Local fire authorities (authorities having
jurisdiction or LAHJs) set standards for radio signal strength throughout buildings within their
jurisdiction to ensure consistent fire and rescue communication capabilities.
Radio Signal Strength for Fire Department Communications
The life safety of firefighters and citizens depends on reliable, functional communication tools that work
in the harshest and most hostile of environments.9 “All firefighters, professional and volunteer, operate
in extreme environments that are markedly different from those of any other radio users.”10 The radio
connects the firefighters to command and outside assistance in the most desperate of situations. 11 The
focus on radio signal strength stems from difficulties firefighters experienced when attempting rescue
1 S. 633.104 F.S.
2 Id.
3 Ch. 69A, F.A.C.
4 S. 633.202, F.S.
5 See Florida Fire Prevention Code (FFPC), https://www.myfloridacfo.com/division/sfm/bfp/florida-fire-prevention-code
(last visited Mar. 17, 2023).
6 S. 633.202(2), F.S.
7 S. 633.208, F.S. and R. 69A-60.002(1), F.A.C.
8 S. 633.208(3), F.S., and R. 69A-60.002(2), F.A.C.
9 U.S. Fire Administration, Voice Radio Communications Guide for the Fire Service (June 2016),
https://www.usfa.fema.gov/ downloads/pdf/publications/Voice_Radio_Communications_Guide_for_the_Fire_S ervice.pdf
(last visited Mar. 18, 2023).
10 Id.
11 Id.
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operations on September 11, 2001, in the World Trade Center Towers.12 These firefighters found that in
certain areas of the buildings their radio signal degraded, making live communications difficult or
impossible.13
Two-way radio communication enhancement systems (enhancement systems) are devices installed
after a building is constructed that accept, and then amplify, radio signals used by first responders. A
radio frequency site survey may be conducted in a building to determine areas where radio signal
strength drops due to materials used in construction, such as thick walls, metal construction,
underground structures, and low-emissivity glass windows. The generally desired effect is that the radio
signal strength at ground level, where a fire rescue operation might be based, is equal to the radio
signal strength in all locations throughout the building, to ensure consistent communication. Several
devices are available to boost signal strength to meet required radio signal strength. These include bi-
directional amplifiers and networks of indoor antennae, referred to collectively as a distributed antenna
system.14
Florida Fire Code Minimum Radio Signal Strength
Amendments to the FFPC, effective January 1, 2018, provided that all new and existing buildings must
maintain minimum radio signal strength at a level determined by the local authority having jurisdiction
(LAHJ).15 Where required by a local fire authority, signal enhancement systems must comply with
federal standards for installation and upkeep.16 Additionally, if an enhancement system would have a
negative impact on the operations of a facility, the local fire authority may accept an automatically
activated emergency responder radio coverage system in the alternative. 17
Minimum Radio Signal Strength for High-Rise Buildings
Section 633.202(18), F.S., enacted in 2016,18 provides that local LAHJ have to determine minimum
radio signal strength for fire department communications in all new and existing high-rise buildings. The
FFPC defines a high-rise building as a building where the floor of an occupiable story is greater than 75
feet above the lowest level of fire department vehicle access. 19 Existing high-rise buildings are not
required to comply with minimum radio strength for fire department communications and enhancement
systems as required by the FFPC until January 1, 2025.20 By January 1, 2024, an existing building that
is not in compliance with the requirements for minimum radio strength for fire department
communications must apply to the local government agency having jurisdiction for an appropriate
permit for the required system installation.21 Such an existing building must demonstrate that the
building will become compliant with the FFPC by January 1, 2025. 22
2022 Changes to the FFPC
12 See National Fire Protection Association, Assessment of Total Evacuation Systems for Tall Buildings: Literature
Review, evacsystemstallbuildingsliteraturereviewexecsum.ashx (nfpa.org) (last visited Mar. 17, 2023).
13 Id.
14 See City of Treasure Island, Florida, Enhancement Radio Communications Enhancement Systems Requirements (Apr.
20, 2019), High-Rise Public Safety System Integrators (mytreasureisland.org) (last visited Mar. 17, 2023); see also East
Lake Tarpon Special Fire Control District, Information Bulletin: Enhancement Radio Communication Enhancement
System Requirements, Bulletin+East+Lake+Two+Way+Communications.pdf (elfr.org) (last visited Mar. 17, 2023).
15 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.1, https://www.nfpa.org/codes-and-standards/all-codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Mar. 17, 2023).
16 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.2, https://www.nfpa.org/codes-and-standards/all-codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Mar. 17, 2023).
17 Florida Fire Prevention Code (7th ed. 2020) s. 11.10.3, https://www.nfpa.org/codes-and-standards/all-codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Mar. 17, 2023).
18 Ch. 2016-129, s. 27, Laws of Fla.
19 Florida Fire Prevention Code (7th ed. 2020) s. 3.3.29.6, https://www.nfpa.org/codes-and-standards/all -codes-and-
standards/codes-and-standards/free-access?mode= view (last visited Mar. 17, 2023).
20 Prior to July 1, 2022, the compliance dates for existing apartment buildings were the same as those for all other high-
rise buildings.
21 Id.
22 Id.
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During the 2022 session, the Legislature clarified that the LAHJ has jurisdiction over buildings of any
height, not just high-rise buildings. It established that enhancement systems, or equivalent systems,
may be used to comply with the minimum radio signal strength requirements for fire department
communications. It also established that these systems are not required in apartment buildings that are
75 feet or less in height that also meet all of the following criteria:
Constructed using wood framing;
Has 150 or less dwelling units; and
All dwelling units discharge to the exterior or to a corridor that leads directly to an exit as defined
in the Florida Building Code (Code).
Evidence of wood frame construction is shown by the property owner providing building permit
documentation that confirms this type of construction. Existing high-rise buildings, as defined in the
Code, are not required to comply with minimum radio signal strength for fire department
communications and enhancement systems until January 1, 2025, but they must apply for the
appropriate permit for installation by January 1, 2024. However, existing high-rise apartment buildings
are subject to the same installation deadlines as all other existing high-rise buildings.
Effect of the Bill
The bill creates a framework for determining whether an enhancement system but be installed in a new
or existing building. Before an LAHJ may require an assessment of the need for, or the installation of, a
enhancement system in a new or existing building (assessment), a qualified third party must certify that
the LAHJ’s public safety emergency communications systems meets or exceeds the minimum radio
coverage design criteria for emergency services communications systems in the current edition of the
NFPA. The certification is valid until the next triennial adoption of the FFPC, which will incorporate
changes made to the NFPA.
The bill establishes that, if an LAHJ has a valid radio coverage design certification, the LAHJ may only
require an assessment to determine the need for an enhancement system once:
Every three years for high-rise buildings; or
Every five years for all other buildings.
If an assessment determines that the installation of an enhancement system is required, the LAHJ may
not withhold the issuance of a certificate of occupancy for the building if the registered architect or
professional engineer who designed the building determined that a enhancement system is not
necessary for the building to meet the minimum standards for interior radio coverage and signal
strength. Finally, the bill prohibits an LAHJ from requiring the installation of a enhancement system until
at least 90 days after the building’s interior radio coverage and signal strength assessment report is
completed.
B. SECTION DIRECTORY:
Section 1. Amends s. 633.202, F.S. relating to Florida Fire Prevention Code.
Section 2. Provides an effective date of July 1, 2023.
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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:
Indeterminate. LAHJs may need to spend money to hire a third parties to certify that the public
safety emergency communications system meets or exceeds the minimum radio coverage design
criteria. The specific cost of the certification process has not been determined.
Additionally, LAHJs with noncompliant systems must upgrade their systems if they wish to use
assessments to require installation of signal enhancement systems. System upgrades would
require the expenditure of funds.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill has an indeterminate, but potentially positive impact on the private sector. If it is determined
that certain apartment buildings are exempt from putting in enhancement systems, they save the
money that would have been spent to install the systems.
D. FISCAL COMMENTS:
None.
III. 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 expenditures 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:
The bill neither authorizes nor requires administrative rulemaking.
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DATE: 3/20/2023
C. DRAFTING ISSUES OR OTHER COMMENTS:
Line 43: This line states that a “qualified third party” must certify that an LAHJ’s public safety
emergency communications system meets or exceeds minimum radio coverage design criteria, but
does not describe the qualifications necessary for the third party. Consideration should be given to
specifying the qualifications within the bill.
Lines 67-68: These lines mention the minimum standards for interior radio coverage and signal
strength. However, the FFPC does not set minimum standards for enhancement radio strength.
Consideration should be given to amending the bill to be more specific about the minimum signal
strength required. Alternatively, the bill could specify that the minimum standards mentioned in those
lines will be set by the LAHJ.
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 1575 2023
1 A bill to be entitled
2 An act relating to public safety emergency
3 communications systems; amending s. 633.202, F.S.;
4 requiring a qualified third party to make a specified
5 certification before a local authority having
6 jurisdiction may require an assessment of the need for
7 or the installation of a two-way radio communications
8 enhancement system in certain buildings; specifying
9 the length of time such certification is valid;
10 limiting the number of times, under certain
11 circumstances, that the local authority having
12 jurisdiction may require a specified assessment;
13 prohibiting the local authority having jurisdiction
14 from withholding a certificate of occupancy under
15 certain circumstances and from requiring the
16 installation of a specified system within a certain
17 time period after completion of a specified report;
18 providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsection (18) of section 633.202, Florida
23 Statutes, is amended to read:
24 633.202 Florida Fire Prevention Code.—
25 (18)(a) The authority having jurisdiction shall determine
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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 1575 2023
26 the minimum radio signal strength for fire department
27 communications in all new and existing buildings.
28 (b) Two-way radio communication enhancement systems or
29 equivalent systems may be used to comply with the minimum radio
30 signal strength requirements. However, two-way radio
31 communication enhancement systems or equivalent systems are not
32 required in apartment buildings 75 feet or less in height that
33 are constructed using wood framing, provided that the building
34 has less than 150 dwelling units and that all dwelling units
35 discharge to the exterior or to a corridor that leads directly
36 to an exit as defined by the Florida Building Code. Evidence of
37 wood frame construction shall be shown by the owner providing
38 building permit documentation which identifies the construction
39 type as wood frame.
40 (c) Before a local authority having jurisdiction may
41 require an assessment of the need for or the installation of a
42 two-way radio communications enhancement system in a new or
43 existing building, a qualified third party must certify that the
44 jurisdiction's public safety emergency communications system
45 meets or exceeds the minimum radio coverage design criteria for
46 emergency services communications systems in the current edition
47 of the National Fire Protection Association (NFPA) 1221:
48 Standard for the Installation, Maintenance, and Use of Emergency
49 Services Communications Systems. Such certification is valid
50 until the next triennial adoption of the Florida Fire Prevention
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HB 1575 2023
51 Code which incorporates any changes made to NFPA 1221.
52 (d) If a jurisdiction has a valid radio coverage design
53 certification under paragraph (c), the local authority having
54 jurisdiction may only require an assessment of a new or existing
55 building's interior radio coverage and signal strength in such
56 building once every 3 years for high-rise buildings or once
57 every 5 years for any other buildings in order to determine the
58 need for a two-way radio communications enhancement system.
59 (e)1. If an assessment of a new building's interior radio
60 coverage and signal strength determines that installation of a
61 two-way radio communications enhancement system is required, th e
62 local authority having jurisdiction may not withhold the
63 issuance of a certificate of occupancy for the building if the
64 registered architect or professional engineer who designed the
65 building determines, in his or her professional judgment, that a
66 two-way radio communications enhancement system is not necessary
67 in order for the building to meet the minimum standards for
68 interior radio coverage and signal strength.
69 2. The local authority having jurisdiction may not require
70 the installation of a two-way radio communications enhancement
71 system until at least 90 days after the building's interior
72 radio coverage and signal strength assessment report is
73 completed.
74 (f) Existing high-rise buildings as defined by the Florida
75 Building Code are not required to comply with minimum radio
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76 strength for fire department communications and two -way radio
77 communication enhancement systems as required by the Florida
78 Fire Prevention Code until January 1, 2025. However, by January
79 1, 2024, an existing high-rise building that is not in
80 compliance with the requirements for minimum radio strength for
81 fire department communications must apply for an appropriate
82 permit for the required installation with the local government
83 agency having jurisdiction and must demonstrate that the
84 building will become compliant by January 1, 2025. Existing
85 high-rise apartment buildings are not required to comply until
86 January 1, 2025. However, existing high-rise apartment buildings
87 are required to apply for the appropriate permit for the
88 required communications installation by January 1, 2024.
89 Section 2. This act shall take effect July 1, 2023.
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hb1575-00
PCS for HB 253
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for HB 253 Regulation of Securities
SPONSOR(S): Insurance & Banking Subcommittee
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Insurance & Banking Subcommittee Fletcher Lloyd
SUMMARY ANALYSIS
In Florida, the Securities and Investor Protection Act, ch. 517, F.S. (Act), regulates securities issued, offered,
and sold in the state of Florida. The Florida Office of Financial Regulation’s (OFR) Division of Securities
regulates and registers the offer and sale of securities in, to, or from Florida by firms, branch offices, and
individuals affiliated with these firms. The Act currently prohibits dealers, associated persons, and issuers from
offering or selling securities in this state unless registered with the OFR or specifically exempted. Additionally,
all securities in Florida must be registered with the OFR unless they meet one of the exemptions in ss. 517.051
or 517.061, F.S., or are federally covered (i.e., under the exclusive jurisdiction of the United States Securities
Exchange Commission (SEC)).
The bill eliminates the requirement for an issuer to register with OFR when selling securities. The bill also
eliminates the escrow agreement section of ch. 517, F.S. Additionally, the bill reduces the issuer filing fee for
security offerings below a certain monetary value, as determined by the SEC.
The bill creates a continuing education requirement, based on the North American Securities Administration
Association (NASAA) model rule, for associated persons of investment advisers and federal covered advisers.
Under this new section an associated person for an investment adviser is required to take twelve (12) credits of
continuing education annually. Six (6) of these credits must be on ethics and regulatory obligations while the
remaining six (6) credits must focus on knowledge and skills relating to financial products. Currently, 12 states
have adopted continuing education rules based on the NASAA model rule.
Various sections throughout ch. 517, F.S. have been updated to provide technical updates, clarity, and the
modernization of the language used within the Chapter. Definitions have been introduced and amended, in
part, to account for these changes. Limited liability companies have been expressly included throughout the
statute and have been provided parallel descriptions to corporations when relevant.
The bill has no impact on local governments, an insignificant negative impact on state government, and an
indeterminate fiscal impact on the private sector.
The bill provides an effective date of October 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs0253.IBS
DATE: 3/20/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Federal Securities Regulation
The federal Securities Exchange Act of 1934 (1934 Act) requires registration of securities market
participants like broker-dealers and exchanges.1 Generally, any person acting as “broker” or “dealer” as
defined in the 1934 Act must be registered with the United States Securities and Exchange
Commission (SEC) and join a self-regulatory organization (SRO), like the Financial Industry Regulatory
Authority (FINRA) or a national securities exchange. The 1934 Act broadly defines “broker” as “any
person engaged in the business of effecting transactions in securities for the account of others,” which
the SEC has interpreted to include involvement in any of the key aspects of a securities transaction,
including solicitation, negotiation, and execution.2 A “dealer” is “any person engaged in the business of
buying and selling securities for such person’s own account through a broker or otherwise. 3
Certain entities in the securities industry are often referred to as “broker-dealers” because such entities
are considered “brokers” when executing trades on behalf of customers, but are “dealers” when
executing trades for their own account. In addition to being registered with the SEC, broker-dealers
must comply with state registration requirements.
State Securities Regulation
In addition to federal securities laws, “Blue Sky Laws” are state laws that protect the investing public
from fraudulent sales practices and activities.4 In Florida, the Securities and Investor Protection Act, ch.
517, F.S. (Act), regulates securities issued, offered, and sold in the state of Florida. The Florida Office
of Financial Regulation’s (OFR) Division of Securities (Division) regulates and registers the offer and
sale of securities in, to, or from Florida by firms, branch offices, and individuals affiliated with these
firms in accordance with the Act and Rule Chapter 69W, Florida Administrative Code. 5
As of December 31, 2022, the Division had total registrants in the following areas:
Dealers: 2,421
Investment advisers: 8,096
Branch offices: 11,435
Associated Persons: 361,2006
The Act prohibits dealers, associated persons, and issuers from offering or selling securities in this
state unless registered with OFR or specifically exempted. 7 Additionally, all securities in Florida must
be registered with OFR unless they meet one of the exemptions in ss. 517.051 or 517.061, F.S., or are
federally covered (i.e., under the exclusive jurisdiction of the SEC).8 Failure to meet the precise
1
15 U.S.C. §§ 78c(a)(4) and 78o; U.S. Securities and Exchange Commission, Guide to Brok er-Dealer Registration,
http://www.sec.gov/divisions/mark etreg/bdguide.htm#II (last visited Mar. 19, 2023).
2 Id.
3 15 U.S.C. § 78c(a)(5).
4 U.S. S ECURITIES & E XCHANGE COMMISSION, Blue Sk y Laws, http://www.sec.gov/answers/bluesky.htm (last visited Mar. 19,
2023).
5 Pursuant to s. 20.121(3), F.S., the Financial Services Commission (the Governor and Cabinet) serves as th e OFR’s
agency head for purposes of rulemaking and appoints the OFR’s Commissioner, who serves as the agency head for
purposes of final agency action for all areas within the OFR’s regulatory authority.
6 Office of Financial Regulation, Agency Analysis of 2023 House Bill 253, p. 2 (Mar. 1, 2023).
7 s. 517.12, F.S.
8 S. 517.07, F.S. If a security is registered with the SEC, s. 517.082, F.S., requires the broker or issuer to notify OFR that
the security is registered with the SEC.
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requirements of these exemptions can subject the issuer to civil, criminal, and administrative liability for
the sale of unregistered securities, which is a third-degree felony in Florida.9 Civil remedies under the
Act include rescission and damages.10 In addition, issuers must comply with disclosure requirements in
state and federal laws that provide potential investors with full and fair disclosures regarding the
securities.
The Act requires the following individuals or businesses to be registered with OFR under s. 517.12,
F.S., before selling or offering to sell any securities in or from offices in this state, or selling securities to
persons in this state from offices outside this state:11
Dealers, which include:12
o Any person, other than an associated person registered under ch. 517, F.S., who
engages as a broker or principal in the business of offering, buying, selling, or otherwise
dealing or trading in securities issued by another person.
o Any issuer who through persons directly compensated or controlled by the issuer
engages in the business of offering or selling securities which are issued (or proposed to
be issued) by the issuer.
Investment advisers, which include any person who receives compensation and engages in the
business of advising others as to the value of securities or as to the advisability of investments
in, purchasing of, or selling of securities, except a dealer whose performance of these services
is solely incidental to the conduct their business as a dealer and who receives no special
compensation for such services.13 Investment advisors do not include a “federal covered
adviser.”14
Associated persons, which include:15
o With respect to a dealer or investment adviser, any of the following:
Any partner, officer, director, or branch manager of a dealer or investment
adviser or any person occupying a similar status or performing similar functions;
Any individual directly or indirectly controlling or controlled by such dealer or
investment adviser, other than an employee whose function is only clerical or
ministerial; or
Any individual, other than a dealer, employed, appointed, or authorized by a
dealer, investment adviser, or issuer to sell securities in any manner or act as an
investment adviser as defined in s. 517.021, F.S.
o With respect to a federal covered adviser, any person who is an investment adviser
representative and who has a place of business in this state.
Self-Regulatory Organizations
Formed as a result of a 2007 merger between the National Association of Securities Dealers and
certain operational arms of the New York Stock Exchange, 16 FINRA is the largest private self-regulatory
organization for all securities firms doing business in the United States. 17 In addition to operating the
largest securities arbitration forum in the United States, FINRA operates the Central Registration
Depository and the Investment Adviser Registration Depository, both which are central databases for
registration, reporting, and disclosure information for the securities industry.18
9 S. 517.302(1), F.S.
10 S. 517.211(3-5), F.S.
11 S. 517.12(1), F.S.
12 S. 517.021(6)(a), F.S. The term “dealer”, as defined under Florida law, encompasses the definitions of “broker” and
“dealer” under federal law.
13 S. 517.021(14)(a), F.S.
14 S. 517.021(9), (14)(b)9., F.S. A federal covered adviser must be registered under federal law and must provide a
notice-filing to OFR. Ss. 517.021 and 517.1201, F.S.
15 S. 517.021(2), F.S.
16 FINRA, NASD and NYSE Member Regulation Combine to Form the Financial Industry Regulatory Authority,
https://www.finra.org/media-center/news-releases/2007/nasd-and-nyse-member-regulation-combine-form-financial-
industry (last visited Mar. 19, 2023).
17 FINRA, https://www.finra.org/#/ (last visited Mar. 19, 2023).
18 NASAA, CRD & IARD, https://www.nasaa.org/industry-resourc es/crd-iard/ (last visited Mar. 19, 2023).
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DATE: 3/20/2023
NASAA’s Model Rule on Investment Adviser Representative Continuing Education
The North American Securities Administrators Association (NASAA) is a voluntary, international,
association whose membership consists of 67 state, provincial, and territorial securities
administrators.19 Formed in 1919, NASAA is the “oldest international organization devoted to investor
protection.”20 NASAA advocates on behalf of state securities agencies in the United States that are
responsible for capital formation and investor protection. 21 NASAA also coordinates training and
education seminars for securities agency staff22 and creates model rules for implementation amongst
its members.23
On November 30, 2020, NASAA adopted a model rule for the implementation of continuing education
(CE) programs for investment adviser representatives (IARs). 24 Among other things, the model rule:
Requires IARs of both state-registered and federal covered investment advisers seeking
registration or renewal of IAR registration to complete 12 CE credits each year;
Provides IARs must complete six credits of regulatory and ethics content and six credits of
compliance and practice content;
Allows IARs to select courses that appeal to their interests and suit their business models, so
long as such courses meet the credit requirements and are approved content for the CE
program;
Permits IARs to satisfy either some or all of the model rule’s CE requirements through
completion of the IAR’s home state’s CE requirements and completion of CE courses required
to be completed by IARs who maintain certain professional designations and those required to
be completed for registration as an agent of a dealer, provided certain criteria are met; and
Provides course providers and course content must be approved by NASAA;
Requires an IAR who does not complete the CE requirement by the annual deadline to renew
as “CE inactive;”
Under the model rule, IARs are responsible for ensuring that completed CE credits are reported to
FINRA, NASAA’s vendor for program tracking. NASAA has implemented a course reporting fee of $3
per credit hour. Individual course costs will vary depending on the course and provider selected.
Currently, 12 NASAA member jurisdictions have adopted CE requirements similar to those proposed in
the rule, namely, Arkansas, Colorado, Kentucky, Maryland, Michigan, Mississippi, Oklahoma, Oregon,
South Carolina, Vermont, Washington, D.C., and Wisconsin. 25
Effect of the Bill
Definitions
The bill creates the following definitions:
“Accredited investor” has the same definition as that in SEC Rule 501, 17 C.F.R. s. 230.501,
which includes:
o Any bank, savings and loan associations, other institutions defined in section 3(a) of the
federal Securities Act of 1933 (1933 Act), brokers or dealers, investment advisers,
insurance companies, or investment companies;
19 NASAA, Welcome to NASAA, https://www.nasaa.org/about-us/ (last visited Mar. 19, 2023).
20 Id.
21 Id.
22 Id.
23 See NASAA, NASAA Model Rule on Investment Adviser Representative Continuing Education (Model Rule 2002-
411(h) or 1956-204(B)(6)-CE ), https://www.nasaa.org/wp-content/uploads/2020/10/ NASAA-IAR-CE-Model-Rule.pdf (last
visited, Mar. 19, 2023).
24 Id.
25 NASAA, https://www.nasaa.org/industry-resources/investment-advisers/investment-adviser-representative-continuing-
education/iar-ce-map/ (last visited, Mar. 19, 2023).
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o Any private business development company as defined in section 202(a)(22) of the
Investment Advisers Act of 1940;
o Any organization described in section 501(c)(3) of the Internal Revenue Code that is not
formed for the specific purpose of acquiring securities offered with total assets in excess
of $5,000,000;
o Any director, executive officer, or general partner of the issuer of the securities being
offered or sold, or any director, executive officer, or general partner of a general partner
of that issuer; or
o Any natural person whose individual net worth, or joint net worth with that person’s
spouse or spousal equivalent, exceeds $1,000,000 (subject to specific calculation
restrictions).
“Control Person” means, with respect to a money services business, any of the following:
o A person who holds the title of president, treasurer, chief executive officer, chief
financial officer, chief operations officer, chief legal officer, or compliance officer;
o A person who holds any of the officer, general partner, manager, or managing member
positions named in the money services business’s governing documents;
o A director of the money services business’s board of directors;
o A shareholder whose name shares are registered in the records of a corporation for
profit who owns 25% or more of a class of the company’s equity securities;
o A general, limited, or special partner who has a 25% or greater interest of a limited
partnership, limited liability limited partnership, foreign limited partnership, or foreign
limited liability limited partnership;
o A member who holds 25% or greater membership interest in a limited liability company
or a foreign limited liability company;
o A beneficial owner of any legal entity referred to above.
“Natural person” is defined as an individual.
The bill amends the following definitions:
“Associated person” is now defined by a party’s relation to a dealer or to an investment adviser.
o With respect to a dealer, an associated person is a natural person who is employed,
appointed, or authorized by a dealer and who represents the dealer in effecting the
purchase or sale of a security.
The term does not include a dealer or a partner, officer, or director of a dealer
unless such person is specified in the group above. The term also does not
include a dealer’s employee whose function is only clerical or ministerial.
o With respect to an investment adviser, an associated person is an individual, including,
but not limited to, a partner, officer, director, or branch manager who is employed by or
associated with, or is subject to the supervision or control of an investment adviser
registered under this chapter, and such person:
Makes recommendations or otherwise gives investment advice regarding
securities;
Manages client accounts or portfolios;
Determines which recommendations or advice regarding securities should be
given;
Receives compensation to solicit, offer, or negotiate for the sale of investment
advisory services; or
Supervises employees who perform a function outlined above.
o With respect to an investment adviser, associated person does not include an
investment adviser or an employee whose function is only clerical or ministerial.
“Control” is amended to replace “under common control with” with “under control with.”
“Dealer” is defined as any person, other than an associated person of a dealer, that engages,
for all or part of the person’s time, directly or indirectly, as agent or principal in the business of
offering, buying, selling, or otherwise dealing or trading in securities issued by another person.
The term does not include the following:
o A licensed practicing attorney who renders or performs any services in connection with
the regular practice of the attorney’s profession.
o A bank authorized to do business in the state, except a nonbank subsidiary of a bank.
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o A trust company having trust powers that it is authorized to exercise in this state, which
renders or performs services in a fiduciary capacity incidental to the exercise of its trust
powers.
o A wholesaler selling exclusively to dealers.
o A person buying and selling for the person’s own account exclusively through a
registered dealer or stock exchange.
o An issuer.
o A natural person representing an issuer in the purchase, sale, or distribution of the
issuer’s own securities if such person meets certain criteria.
“Guaranty” is amended to clarify that a “writing” means “an agreement in writing.”
“Intermediary” is amended to clarify that an intermediary facilitates an offer or sale of a security
of an issuer with a principal place of business in Florida through the intermediary’s website.
“Investment adviser” is amended to have a parallel structure to the new definition of “dealer.”
The bill also amends various definitions to include the use of gender-neutral terms, to provide inclusion
of any amendments to referenced federal securities law, and to specifically include references to limited
liability companies.
Viatical Settlements
The bill amends s. 517.072, F.S. to include provisions relating to viatical settlements for organizational
purposes that use to reside in s. 517.081, F.S. The provisions were not substantially changed.
Registration Procedure
The bill amends s. 517.081, F.S. to allow for all issuers meeting certain criteria, instead of just
corporations, to use simplified offering circular to register securities. The bill reduces the issuer filling
fee of $1,000 to $200 for offerings that are below the amount provided in s. 3(b) of the 1933 Act. The
bill also provides that the office shall deem an application to register a security abandoned if the issuer
has failed to complete a timely application, as specified by commission rule.
Registration by Notification; Federal Registration Statements
The bill provides that the office will consider an application for registration by notification abandoned if
the SEC has not declared effective the applicant’s federal registration statement within 180 days after
the applicant’s filing.
Revocation or Denial of Registration of Securities
The bill amends this section to include “investigations” in addition to “examinations” in various
provisions as these provisions are applicable to both examinations and investigations conducted by the
office.
The bill replaces the “demonstrated any evidence of unworthiness” standard for revocation or denial of
a securities registration with the “engaged in any action that would be grounds for revocation, denial, or
suspension under s. 517.161(1), F.S.” standard.
The bill removes the standard of “is in any other way dishonest.” The bill also removes the standard of
revoking or denying a registration based on an issuer failing to timely complete any application for
registration filed with the office. This provision is, instead, incorporated within ss. 517.081 and 517.082,
F.S.
The bill requires that the office must provide notice of the entry of an order suspending the rights to sell
securities to the issuer personally or by mail. This amendment eliminates the ability of the office to
provide such notice by telephone confirmed in writing or by telegraph.
Registration of Dealers, Associated Persons, Intermediaries, and Investment Advisers
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The bill eliminates the requirement that issuers register with the office to sell securities. The bill also
clarifies which exempt transactions the registration requirement applies to as well as the meaning of
“securities business.”
The bill eliminates the requirement that the office finds the applicant to be of “good repute and
character.” Instead, the office is tasked with finding that the applicant complied with the “applicable
registration provisions.” The bill provides the office shall register the application “unless the applicant is
otherwise disqualified for registration pursuant to law.”
Continuing Education Requirements for Associated Persons of Investment Advisers and Federal
Covered Advisers
The bill creates s. 517.1214, F.S. which provides a continuing education requirement for the associated
persons of an investment adviser or a federally covered adviser. Starting in the year ending December
31, 2024, the associated person of an investment adviser or a federal covered investment adviser shall
complete continuing educational content offered by a person that NASAA or NASAA’s designee has
authorized to provide the continuing education content required. The continuing education requirement
follows an annual reporting period that starts on January 1 and ends on December 31. An associated
person’s initial reporting period commences the first day of the first full reporting period after the
individual is required to be registered with the state.
The continuing education requirement consists of a total of 12 hours of continuing education content
split into two broad categories:
Six credits of approved continuing education content that addresses ethical and regulatory
obligations, with at least 3 hours of the content covering the topic of ethics; and
Six credits of approved continuing educational content that addresses an associated person’s
skills and knowledge regarding financial products, investment features, and practices in the
investment advisory industry.
An associated person who is also a registered associated person of a FINRA member dealer and is in
compliance with FINRA’s continuing education requirements will be considered to be in compliance
with the continuing education requirements of this section provided that the FINRA continuing
education content is approved by NASAA.
Credits of continuing education completed by an associated person who currently holds a credential
that qualifies for an examination waiver by passing any test prescribed in s. 15(b)(7) of the Securities
Exchange Act of 1934 will be found to comply with the continuing education requirement upon meeting
certain conditions. This condition entails that the associated person completes the credits of continuing
education as a condition for maintaining the credential during the relevant reporting period; the credits
of continuing education completed were mandatory to maintain the credential; and the continuing
education content provided by the credentialing organization during the relevant reporting period is
approved by NASAA.
The bill provides that an associated person is responsible for ensuring that the provider of continuing
education content reports the associated person’s completion of the requirements. Additionally,
completed continuing education content that exceeds the requirements of this section cannot be carried
over into a following year.
An associated person that fails to comply with this section by the end of a reporting period must register
as “CE Inactive” and must complete the continuing education content requirements for the year they
failed to comply with the requirements and the current reporting year in order to register as an
associated person again. If the associated person renews as “CE Inactive” at the close of the calendar
year and fails to complete and report all required CE credits for all reporting periods required by the
close of the next calendar year, the associated person becomes unregistered.
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An associated person required to be registered in Florida who is registered as an associated person in
the individual’s home state is considered to be in compliance with this section if the associated person
meets Florida’s annual 12-hour CE requirements explained above and such person is in compliance
with the home state’s CE requirements.
An associated person who was previously registered under s. 517.12, F.S. and became unregistered
must complete the continuing education requirements for all reporting periods that occurred between
the time that the associated person become unregistered and when the person became registered
again under s. 517.12, F.S. unless the associated person takes and passes the required examinations
or the examination requirements are waived in connection with the subsequent application for
registration.
Rules of Conduct and Prohibited Business Practices for Dealers, Dealers’ Associated Persons and
Intermediaries
The bill amends this section to include intermediaries.
Revocation, Denial, or Suspension of Registration of Dealer, Investment Adviser, Intermediary, or
Associated Person
The bill amends this section to add failure to pay, or attempting to avoid paying, certain final judgments,
arbitration awards, fines, civil penalties, orders of restitution and disgorgement, or similar monetary
payment obligations as grounds for denying, suspending, or revoking a registration.
Escrow Agreement
The bill repeals s. 517.181, F.S. which allowed the office to require an escrow agreement for securities
that had been issued for certain intangible assets. The escrow agreement would require that the
security be delivered in escrow to the office or other depository satisfactory to the office. The security
would be released from escrow upon showing that the issuer is currently operating a sound business.
Criminal Punishment Code; Offense Severity Ranking Chart
The bill removes issuers from the listed parties that would face felony charges for violating s. 517.12(1),
F.S. as issuers are no longer required to register with the office.
Miscellaneous
The bill eliminates the bad business repute and the unworthiness standard from various sections of the
chapter. The bill also eliminates the use of the term “small loan companies” in various sections of the
chapter.
The bill amends various sections to:
Replace the term “insolvent” with “cannot pay its debts as they become due in the usual course
of business;”
Replace “person directly or indirectly controlling” with “control person;”
Replace the term “advisors” with “advisers” and gendered language with gender-neutral
language;
Provide clarity by specifically including limited liabilities companies in the regulations throughout
ch. 517, F.S.; and
Update cross-references.
B. SECTION DIRECTORY:
Section 1: Amends s. 517.021, F.S., relating to definitions.
Section 2: Amends s. 517.072, F.S., relating to viatical settlement investment.
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Section 3: Amends s. 517.081, F.S., relating to registration procedure.
Section 4: Amends s. 517.082, F.S., relating to registration by notification; federal registration
statements.
Section 5: Amends s. 517.111, F.S., relating to revocation or denial of registration of securities.
Section 6: Amends s. 517.12, F.S., relating to registration of dealers, associated persons,
intermediaries, and investment advisers.
Section 7: Creates s. 517.1214, F.S., relating to continuing education requirements for associated
persons of investment advisers and federal covered advisers.
Section 8: Amends s. 517.1217, F.S., relating to rules of conduct and prohibited business practices
for dealers and their associated persons and for intermediaries.
Section 9: Amends s. 517.161, F.S., relating to revocation, denial, or suspension of registration of
dealer, investment adviser, intermediary, or associated person.
Section 10: Amends s. 517.1611, F.S., relating to guidelines.
Section 11: Repeals s. 517.181, F.S., relating to escrow agreement.
Section 12: Amends s. 517.201, F.S., relating to investigations; examinations; subpoenas; hearings;
witnesses.
Section 13: Amends s. 921.0022, F.S., relating to Criminal Punishment Code; offense severity
ranking chart.
Section 14: Amends s. 517.1215, F.S., relating to requirements, rules of conduct, and prohibited
business practices for investment advisers and their associated persons.
Section 15: Amends s. 517.075, F.S., relating to Cuba, prospectus disclosure of doing business with,
required.
.
Section 16: Amends s. 517.131, F.S., relating to Securities Guaranty Fund.
Section 17: Amends s. 517.211, F.S., relating to remedies available in cases of unlawful sale.
Section 18: Amends s. 517.315, F.S., relating to fees.
Section 19: Amends s. 626.9911, F.S., relating to definitions.
Section 20: Amends s. 744.351, F.S., relating to bond of guardian.
Section 21: Amends s. 517.1205, F.S., relating to registration of associated persons specific as to
securities dealer, investment adviser, or federal covered adviser identified at time of
registration approval.
Section 22: Provides an effective date of October 1, 2023.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
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1. Revenues:
The bill would have a negative, although insignificant, fiscal effect on state government as the bill
reduces the issuer fee for certain transactions.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill has an indeterminate fiscal impact on the private sector. Specifically, the bill requires
associated persons of investment advisers and federal covered advisers to complete continuing
education requirements on an annual basis. Costs incurred by associated persons who are required to
comply with the requirement will vary. NASAA has implemented a course reporting fee of $3 per credit
hour. Therefore, an associated person will be required to pay a minimum of $36 per year in addition to
any training costs to meet the CE requirements. Training costs are indeterminable and will vary
depending on the selected continuing education course and provider, whether the associated person is
in compliance with FINRA CE requirements, and whether the associated person holds and maintains
certain professional designations.26
D. FISCAL COMMENTS:
None.
III. 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:
None.
26 Florida Office of Financial Regulation, Agency Analysis of 2023 House Bill 253, p. 7 (Mar. 1, 2023).
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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
PCS for HB 253 2023
1 A bill to be entitled
2 An act relating to regulation of securities;
3 reordering and amending s. 517.021, F.S.; adding and
4 revising definitions; requiring the Financial Services
5 Commission to define the term "accredited investor";
6 amending s. 517.072, F.S.; authorizing the commission
7 to adopt certain rules relating to viatical settlement
8 investments; conforming a provision to changes made by
9 the act; amending s. 517.081, F.S.; revising
10 requirements for the registration of securities;
11 revising application fees for certain securities
12 registrations; requiring the office to deem an
13 application abandoned under certain circumstances;
14 conforming provisions to changes made by the act;
15 amending s. 517.082, F.S.; requiring the office to
16 deem applications for registration by notification
17 abandoned under certain circumstances; making
18 technical changes; amending s. 517.111, F.S.; revising
19 grounds on which the office may revoke, suspend, or
20 deny the registration of securities; specifying the
21 office's powers in investigations of issuers; revising
22 the methods by which the office may enter an order
23 suspending an issuer's right to sell securities;
24 amending s. 517.12, F.S.; revising applicability of
25 registration requirements; revising requirements for
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26 applying for registration as a dealer, an associated
27 person of a dealer, or an investment adviser;
28 conforming provisions to changes made by the act;
29 making technical changes; creating s. 517.1214, F.S.;
30 defining terms; specifying continuing education
31 requirements for associated persons of investment
32 advisers and federal covered advisers; providing t hat
33 certain education credits satisfy such requirements if
34 certain conditions are met; prohibiting associated
35 persons from carrying forward credits to subsequent
36 reporting periods; specifying a restriction on
37 associated persons who fail to meet such requirements;
38 specifying requirements for certain previously
39 registered associated persons; amending s. 517.1217,
40 F.S.; revising the commission's rulemaking authority
41 as to rules of conduct and prohibited business
42 practices of dealers, associated persons, and
43 intermediaries; amending s. 517.161, F.S.; revising
44 grounds on which the office may deny, revoke,
45 restrict, or suspend registrations of dealers,
46 investment advisers, intermediaries, or associated
47 persons; amending s. 517.1611, F.S.; conforming a
48 provision to changes made by the act; repealing s.
49 517.181, F.S., relating to escrow agreements; amending
50 s. 517.201, F.S.; conforming a provision to changes
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51 made by the act; amending s. 921.0022, F.S.; revising
52 applicability of a criminal penalty for certain
53 registration violations; amending 517.1215, F.S.;
54 making technical changes; amending ss. 517.075,
55 517.131, 517.211, 517.315, 626.9911, and 744.351,
56 F.S.; conforming cross-references and making technical
57 changes; amending s. 517.1205, F.S.; revising a
58 statement of legislative intent; providing an
59 effective date.
60
61 Be It Enacted by the Legislature of the State of Florida:
62
63 Section 1. Section 517.021, Florida Statutes, is reordered
64 and amended to read:
65 517.021 Definitions.—When used in this chapter, unless the
66 context otherwise indicates, the following terms have the
67 following respective meanings:
68 (1) "Accredited investor" shall be defined by rule of the
69 commission in accordance with Securities and Exchange Commission
70 Rule 501 (17 C.F.R. s. 230.501).
71 (2) "Affiliate" means a person that directly, or
72 indirectly through one or more intermediaries, controls, is
73 controlled by, or is under common control with an applicant or
74 registrant.
75 (3)(2) "Associated person" means:
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76 (a)1. With respect to a dealer, an individual who is
77 employed, appointed, or authorized by a dealer and who
78 represents the dealer in effecting or attempting to effect
79 purchases or sales of securities.
80 2. The term does not include the following:
81 a. A dealer.
82 b. A partner, officer, or director of a dealer or a person
83 having a similar status or performing similar functions as a
84 dealer, unless such person is specified in subparagraph 1.
85 c. A dealer's employee whose function is only clerical or
86 ministerial.
87 d. A person whose transactions in this state are limited
88 to those transactions described in s. 15(i)(3) of the Securities
89 Exchange Act of 1934, as amended.
90 (b)1. With respect to an investment adviser, an
91 individual, including, but not limited to, a partner, officer,
92 director, or branch manager, or a person occupying a similar
93 status or performing similar functions, who:
94 a. Is employed by or associated with, or is subject to the
95 supervision and control of, an investment adviser registered or
96 required to be registered under this chapter; and
97 b. Does any of the following:
98 (I) Makes any recommendation or otherwise gives investment
99 advice regarding securities.
100 (II) Manages accounts or portfolios of clients.
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101 (III) Determines which recommendation or advice regarding
102 securities should be given.
103 (IV) Receives compensation to solicit, offer, or negotiate
104 for the sale of investment advisory services.
105 (V) Supervises employees who perform a function under this
106 sub-subparagraph.
107 2. The term does not include the following:
108 a. An investment adviser.
109 b. An employee whose function is only clerical or
110 ministerial
111 or investment adviser, any of the following:
112 1. Any partner, officer, director, or branch manager of a
113 dealer or investment adviser or any person occupying a similar
114 status or performing similar functions;
115 2. Any natural person directly or indirectly controlling
116 or controlled by such dealer or investment adviser, other than
117 an employee whose function is only clerical or ministerial; or
118 3. Any natural person, other than a dealer, employed,
119 appointed, or authorized by a dealer, investment adviser, or
120 issuer to sell securities in any manner or act as an investment
121 adviser as defined in this section.
122
123 The partners of a partnership and the executive officers of a
124 corporation or other association registered as a dealer, and any
125 person whose transactions in this state are limited to those
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126 transactions described in s. 15(h)(2) of the Securities Exchange
127 Act of 1934, are not "associated persons" within the meaning of
128 this definition.
129 (c)(b) With respect to a federal covered adviser, a
130 natural any person who is an investment adviser representative
131 and who has a place of business in this state, as such terms are
132 defined in Rule 203A-3 of the Securities and Exchange Commission
133 adopted under the Investment Advisers Act of 1940, as amended.
134 (4)(3) "Boiler room" means an enterprise in which two or
135 more persons engage in telephone communications with members of
136 the public using two or more telephones at one location, or at
137 more than one location in a common scheme or enterprise.
138 (5)(4) "Branch office" means any location in this state of
139 a dealer or investment adviser at which one or more associated
140 persons regularly conduct the business of rendering investment
141 advice or effecting any transactions in, or inducing or
142 attempting to induce the purchase or sale of, any security or
143 any location that is held out as such. The commission may adopt
144 by rule exceptions to this definition for dealers in order to
145 maintain consistency with the definition of a branch office used
146 by self-regulatory organizations authorized by the Securities
147 and Exchange Commission, including, but not limited to, the
148 Financial Industry Regulatory Authority. The commission may
149 adopt by rule exceptions to this definition for investment
150 advisers.
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151 (6)(5) "Control," including the terms "controlling,"
152 "controlled by," or "under control with" and "under common
153 control with," means the possession, directly or indirectly, of
154 the power to direct or cause the direction of the management or
155 policies of a person, whether through the ownership of voting
156 securities, by contract, or otherwise.
157 (7) "Control person" means, with respect to a money
158 services business, any of the following:
159 (a) A person who holds the title of president, treasurer,
160 chief executive officer, chief financial officer, chief
161 operations officer, chief legal officer, or compliance officer
162 for a money services business.
163 (b) A person who holds any of the officer, general
164 partner, manager, or managing member positions named in the
165 money services business's governing documents. As used in this
166 paragraph, the term "governing documents" includes bylaws,
167 articles of incorporation or organization, partnership
168 agreements, shareholder agreements, and management or operating
169 agreements.
170 (c) A director of the money services business's b oard of
171 directors.
172 (d) A shareholder whose name shares are registered in the
173 records of a corporation for profit, whether incorporated under
174 the laws of this state or organized under the laws of any other
175 jurisdiction and existing in that legal form, who owns 25
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176 percent or more of a class of the company's equity securities.
177 (e) A general partner or a limited partner, as those terms
178 are defined in s. 620.1102, or a special partner who has a 25
179 percent or greater transferable interest, as defined in s.
180 620.1102, of a limited partnership, limited liability limited
181 partnership, foreign limited partnership, or foreign limited
182 liability limited partnership, as those terms are defined in s.
183 620.1102. For purposes of this paragraph, a special partner has
184 the same meaning as a person that has rights, powers, and
185 obligations similar to those of a limited partner, as defined in
186 s. 620.1102, in a limited partnership.
187 (f) A member, as defined in s. 605.0102, who holds a 25
188 percent or greater membership interest in a limited liability
189 company or a foreign limited liability company, as those terms
190 are defined in s. 605.0102. As used in this subsection, the term
191 "membership interest" means a member's right to receive
192 distributions or other rights, such as voting rights or
193 management rights, under the articles of organization.
194 (g) A beneficial owner of any legal entity referred to in
195 paragraphs (d)-(f). As used in this paragraph, the term
196 "beneficial owner" means each individual, if any, who, directly
197 or indirectly, through any contract, arrangement, understanding,
198 or relationship other than a revocable proxy, owns 25 percent or
199 more of the shares or stock interest, transferable interest as
200 defined in s. 620.1102, or membership interest of a legal
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201 entity.
202 (8)(6)(a) "Dealer" includes, unless otherwise specified,
203 any of the following:
204 1. Any person, other than an associated person registered
205 under this chapter, who engages, either for all or part of her
206 or his time, directly or indirectly, as broker or principal in
207 the business of offering, buying, selling, or otherwise dealing
208 or trading in securities issued by another person.
209 2. Any issuer who through persons directly compensated or
210 controlled by the issuer engages, either for all or part of her
211 or his time, directly or indirectly, in the business of offering
212 or selling securities which are issued or are proposed to be
213 issued by the issuer. a person, other than an associated person
214 of a dealer, that engages, for all or part of the person's time,
215 directly or indirectly, as agent or principal in the business of
216 offering, buying, selling, or otherwise dealing or trading in
217 securities issued by another person.
218 (b) The term "dealer" does not include the following:
219 (a) A licensed practicing attorney who renders or perfo rms
220 any such services in connection with the regular practice of the
221 attorney's profession.
222 (b) A bank authorized to do business in this state, except
223 nonbank subsidiaries of a bank.
224 (c) A trust company having trust powers that it is
225 authorized to exercise in this state, which renders or performs
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226 services in a fiduciary capacity incidental to the exercise of
227 its trust powers.
228 (d) A wholesaler selling exclusively to dealers.
229 (e) A person buying and selling for the person's own
230 account exclusively through a registered dealer or stock
231 exchange.
232 (f) An issuer.
233 (g) An individual representing an issuer in the purchase,
234 sale, or distribution of the issuer's own securities if such
235 person:
236 1. Is an officer, a director, a limited liability company
237 manager or managing member, or a bona fide employee of the
238 issuer;
239 2. Has not participated in the distribution or sale of
240 securities for any issuer for which such person was, within the
241 preceding 12 months, an officer, a director, a limited liability
242 company manager or managing member, or a bona fide employee;
243 3. Primarily performs, or is intended to perform at the
244 end of the distribution, substantial duties for, or on behalf
245 of, the issuer other than in connection with transactions in
246 securities; and
247 4. Does not receive a commission, compensation, or other
248 consideration for the completed sale of the issuer's securities
249 apart from the compensation received for regular duties to the
250 issuer.
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251 1. Any licensed practicing attorney who renders or
252 performs any of such services in connection with the regular
253 practice of her or his profession;
254 2. Any bank authorized to do business in this state,
255 except nonbank subsidiaries of a bank;
256 3. Any trust company having trust powers which it is
257 authorized to exercise in this state, which renders or performs
258 services in a fiduciary capacity incidental to the exercise of
259 its trust powers;
260 4. Any wholesaler selling exclusively to dealers;
261 5. Any person buying and selling for her or his own
262 account exclusively through a registered dealer or stock
263 exchange; or
264 6. Pursuant to s. 517.061(11), any person associated with
265 an issuer of securities if such person is a bona fide employee
266 of the issuer who has not participated in the distribution or
267 sale of any securities within the preceding 12 months and who
268 primarily performs, or is intended to perform at the end of the
269 distribution, substantial duties for, or on behalf of, the
270 issuer other than in connection with transactions in securities.
271 (9)(7) "Commission" means the Financial Services
272 Commission.
273 (10)(8) "Office" means the Office of Financial Regulation
274 of the commission.
275 (11)(9) "Federal covered adviser" means a person that who
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276 is registered or required to be registered under s. 203 of the
277 Investment Advisers Act of 1940, as amended. The term "federal
278 covered adviser" does not include any person that who is
279 excluded from the definition of investment adviser under
280 subparagraphs (18)(b)1.-8. (14)(b)1.-8.
281 (12)(10) "Federal covered security" means a any security
282 that is a covered security under s. 18(b) of the Securities Act
283 of 1933, as amended, or rules and regulations adopted
284 thereunder.
285 (13)(11) "Guarantor" means a person that who agrees in
286 writing, or that who holds itself out to the public as agreeing,
287 to pay the indebtedness of another when due, including, without
288 limitation, payments of principal and interest on a bond,
289 debenture, note, or other evidence of indebtedness, without
290 resort by the holder to any other obligor, whether or not such
291 writing expressly states that the person signing is signing as a
292 guarantor. The obligation of a guarantor hereunder shall be a
293 continuing, absolute, and unconditional guaranty of payment,
294 without regard to the validity, regularity, or enforceability of
295 the underlying indebtedness.
296 (14)(12) "Guaranty" means an agreement in a writing in
297 which one party either agrees, or holds itself out to the public
298 as agreeing, to pay the indebtedness of another when due,
299 including, without limitation, payments of principal and
300 interest on a bond, debenture, note, or other evidence of
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301 indebtedness, without resort by the holder to any other obligor,
302 whether or not such writing expressly states that the person
303 signing is signing as a guarantor. An agreement that is not
304 specifically denominated as a guaranty shall nevertheless
305 constitute a guaranty if the holder of the underlying
306 indebtedness or the holder's her or his representative or
307 trustee has the right to sue to enforce the guarantor's
308 obligations under the guaranty. Words of guaranty or equivalent
309 words that which otherwise do not specify guaranty of payment
310 create a presumption that payment, rather than collection, is
311 guaranteed by the guarantor. Any guaranty in writing is
312 enforceable notwithstanding any statute of frauds.
313 (15)(13) "Intermediary" means a natural person residing in
314 this the state or a corporation, trust, partnership, limited
315 liability company, association, or other legal entity registered
316 with the Secretary of State to do business in this the state,
317 which facilitates through its website the offer or sale of
318 securities of an issuer with a principal place of business in
319 this state under s. 517.0611.
320 (16)(a)(14)(a) "Investment adviser" means a includes any
321 person, other than an associated person of an investment adviser
322 or a federal covered adviser, that who receives compensation,
323 directly or indirectly, and engages for all or part of the
324 person's her or his time, directly or indirectly, or through
325 publications or writings, in the business of advising others as
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326 to the value of securities or as to the advisability of
327 investments in, purchasing of, or selling of securities , except
328 a dealer whose performance of these services is solely
329 incidental to the conduct of her or his business as a dealer and
330 who receives no special compensation for such services.
331 (b) The term "investment adviser" does not include the
332 following:
333 1. A dealer or associated person of a dealer whose
334 performance of services in paragraph (a) is solely incidental to
335 the conduct of the dealer's or associated person's business as a
336 dealer and who does not receive special compensation for those
337 services.
338 2. A Any licensed practicing attorney or certified public
339 accountant whose performance of such services is solely
340 incidental to the practice of the attorney's or accountant's her
341 or his profession.;
342 2. Any licensed certified public accountant whose
343 performance of such services is solely incidental to the
344 practice of her or his profession;
345 3. A Any bank authorized to do business in this state.;
346 4. A Any bank holding company as defined in the Bank
347 Holding Company Act of 1956, as amended, authorized to do
348 business in this state.;
349 5. A Any trust company having trust powers, as defined in
350 s. 658.12, which it is authorized to exercise in this the state,
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351 which trust company renders or performs investment advisory
352 services in a fiduciary capacity incidental to the exercise of
353 its trust powers.;
354 6. A Any person that who renders investment advice
355 exclusively to insurance or investment companies.;
356 7. A Any person that who does not hold itself herself or
357 himself out to the general public as an investment adviser and
358 has no more than 15 clients within 12 consecutive months in this
359 state.;
360 8. A Any person whose transactions in this state are
361 limited to those transactions described in s. 222(d) of the
362 Investment Advisers Act of 1940, as amended. Those clients
363 listed in subparagraph 6. may not be included when determining
364 the number of clients of an investment adviser for purposes of
365 s. 222(d) of the Investment Advisers Act of 1940, as amended.;
366 or
367 9. A federal covered adviser.
368 (17)(15) "Issuer" means a any person that who proposes to
369 issue, has issued, or shall hereafter issue any security. A Any
370 person that who acts as a promoter for and on behalf of a
371 corporation, trust, or unincorporated association or
372 partnership, limited liability company, association, or other
373 legal entity of any kind to be formed shall be deemed an issuer.
374 (18) "Natural person" means an individual.
375 (19)(16) "Offer to sell," "offer for sale," or "offer"
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376 means an any attempt or offer to dispose of, or solicitation of
377 an offer to buy, a security or interest in a security, or an
378 investment or interest in an investment, for value.
379 (20)(17) "Predecessor" means a person whose the major
380 portion of whose assets has have been acquired directly or
381 indirectly by an issuer.
382 (21)(18) "Principal" means an executive officer of a
383 corporation, partner of a partnership, sole proprietor o f a sole
384 proprietorship, trustee of a trust, or any other person with
385 similar supervisory functions with respect to any organization,
386 whether incorporated or unincorporated.
387 (22)(19) "Promoter" includes the following:
388 (a) A Any person that who, acting alone or in conjunction
389 with one or more other persons, directly or indirectly takes the
390 initiative in founding and organizing the business or enterprise
391 of an issuer.
392 (b) A Any person that who, in connection with the founding
393 or organizing of the business or enterprise of an issuer,
394 directly or indirectly receives in consideration of services or
395 property, or both services and property, 10 percent or more of
396 any class of securities of the issuer or 10 percent or more of
397 the proceeds from the sale of any class of securities. However,
398 a person that who receives such securities or proceeds either
399 solely as underwriting commissions or solely in connection with
400 property shall not be deemed a promoter if such person does not
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401 otherwise take part in founding and organizing the enterprise.
402 (23)(20) "Qualified institutional buyer" means a any
403 qualified institutional buyer, as defined in United States
404 Securities and Exchange Commission Rule 144A, 17 C.F.R. s.
405 230.144A(a), under the Securities Act of 1933, as amended, or
406 any foreign buyer that satisfies the minimum financial
407 requirements set forth in such rule.
408 (24)(21) "Sale" or "sell" means a any contract of sale or
409 disposition of an any investment, security, or interest in a
410 security, for value. With respect to a security or interest in a
411 security, the term defined in this subsection does not include
412 preliminary negotiations or agreements between an issuer or any
413 person on whose behalf an offering is to be made and any
414 underwriter or among underwriters who are or are to be in
415 privity of contract with an issuer. Any security given or
416 delivered with, or as a bonus on account of, any purchase of
417 securities or any other thing shall be conclusively presumed to
418 constitute a part of the subject of such purchase and to have
419 been offered and sold for value. Every sale or offer of a
420 warrant or right to purchase or subscribe to another security of
421 the same or another issuer, as well as every sale or offer of a
422 security which gives the holder a present or future right or
423 privilege to convert into another security or another issuer, is
424 considered to include an offer of the other security.
425 (25)(22) "Security" includes any of the following:
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426 (a) A note.
427 (b) A stock.
428 (c) A treasury stock.
429 (d) A bond.
430 (e) A debenture.
431 (f) An evidence of indebtedness.
432 (g) A certificate of deposit.
433 (h) A certificate of deposit for a security.
434 (i) A certificate of interest or participation.
435 (j) A whiskey warehouse receipt or other commodity
436 warehouse receipt.
437 (k) A certificate of interest in a profit-sharing
438 agreement or the right to participate therein.
439 (l) A certificate of interest in an oil, gas, petroleum,
440 mineral, or mining title or lease or the right to participate
441 therein.
442 (m) A collateral trust certificate.
443 (n) A reorganization certificate.
444 (o) A preorganization subscription.
445 (p) A Any transferable share.
446 (q) An investment contract.
447 (r) A beneficial interest in title to property, profits,
448 or earnings.
449 (s) An interest in or under a profit-sharing or
450 participation agreement or scheme.
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451 (t) An Any option contract that which entitles the holder
452 to purchase or sell a given amount of the underlying security at
453 a fixed price within a specified period of time.
454 (u) Any other instrument commonly known as a security,
455 including an interim or temporary bond, debenture, note, or
456 certificate.
457 (v) A Any receipt for a security, or for subscription to a
458 security, or a any right to subscribe to or purchase any
459 security.
460 (w) A viatical settlement investment.
461 (26)(23) "Underwriter" means a person that who has
462 purchased from an issuer or an affiliate of an issuer with a
463 view to, or offers or sells for an issuer or an affiliate of an
464 issuer in connection with, the distribution of any security, or
465 participates or has a direct or indirect participation in any
466 such undertaking, or participates or has a participation in the
467 direct or indirect underwriting of any such undertaking; except
468 that a person is shall be presumed not to be an underwriter with
469 respect to any security which it she or he has owned
470 beneficially for at least 1 year; and, further, a dealer is
471 shall not be considered an underwriter with respect to any
472 securities which do not represent part of an unsold allotment to
473 or subscription by the dealer as a participant in the
474 distribution of such securities by the issuer or an affiliate of
475 the issuer; and, further, in the case of securities acquired on
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476 the conversion of another security without payment of additional
477 consideration, the length of time such securities have been
478 beneficially owned by a person includes the period during which
479 the convertible security was beneficially owned and the period
480 during which the security acquired on conversion has been
481 beneficially owned.
482 (27)(24) "Viatical settlement investment" means an
483 agreement for the purchase, sale, assignment, transfer, devise,
484 or bequest of all or any portion of a legal or equitable
485 interest in a viaticated policy as defined in chapter 626.
486 Section 2. Paragraph (d) of subsection (3) of sectio n
487 517.072, Florida Statutes, is amended, and subsection (4) is
488 added to that section, to read:
489 517.072 Viatical settlement investments.—
490 (3) The registration provisions of ss. 517.07 and 517.12
491 do not apply to any of the following transactions in viati cal
492 settlement investments; however, such transactions in viatical
493 settlement investments are subject to the provisions of ss.
494 517.301, 517.311, and 517.312:
495 (d) The transfer or assignment of a viaticated policy to a
496 bank, trust company, savings institution, insurance company,
497 dealer, investment company as defined in the Investment Company
498 Act of 1940, as amended, pension or profit-sharing trust, or
499 qualified institutional buyer as defined in United States
500 Securities and Exchange Commission Rule 144A, 17 C.F.R. s.
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501 230.144A(a), or to an accredited investor as defined by Rule 501
502 of Regulation D of the Securities Act Rules, provided such
503 transfer or assignment is not for the direct or indirect
504 promotion of any scheme or enterprise with the intent of
505 violating or evading any provision of this chapter.
506 (4) The commission may establish by rule requirements and
507 standards for disclosures to purchasers of viatical settlement
508 investments and recordkeeping requirements for sellers of
509 viatical settlement investments.
510 Section 3. Paragraphs (a), (g), and (n) of subsection (3)
511 and subsections (6) and (8) of section 517.081, Florida
512 Statutes, are amended to read:
513 517.081 Registration procedure.—
514 (3) The office may require the applicant to submit to the
515 office the following information concerning the issuer and such
516 other relevant information as the office may in its judgment
517 deem necessary to enable it to ascertain whether such securities
518 shall be registered pursuant to the provisions of this section:
519 (a) The names and addresses of:
520 1. All the directors, trustees, and officers, if the
521 issuer is be a corporation, association, or trust.
522 2. All the managers or managing members, if the issuer is
523 a limited liability company.
524 3. ; of All the partners, if the issuer is be a
525 partnership.
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526 4. ; or of The issuer, if the issuer is a sole
527 proprietorship or individual be an individual.
528 (g)1. A specimen copy of the securities certificate, if
529 applicable, security and a copy of any circular, prospectus,
530 advertisement, or other description of such securities.
531 2. The commission shall adopt a form for a simplified
532 offering circular to be used solely by corporations to register,
533 under this section, securities of the corporation that are sold
534 in offerings in which the aggregate offering price in any
535 consecutive 12-month period does not exceed the amount provided
536 in s. 3(b) of the Securities Act of 1933, as amended. The
537 following issuers shall not be eligible to submit a simplified
538 offering circular adopted pursuant to this subparagraph:
539 a. An issuer seeking to register securities for resale by
540 persons other than the issuer.
541 b. An issuer that who is subject to any of the
542 disqualifications described in 17 C.F.R. s. 230.262, adopted
543 pursuant to the Securities Act of 1933, as amended, or that who
544 has been or is engaged or is about to engage in an activity that
545 would be grounds for denial, revocation, or suspension under s.
546 517.111. For purposes of this subparagraph, an issuer includes
547 an issuer's director, officer, manager or managing member, or
548 equity owner shareholder who owns at least 10 percent of the
549 ownership interests shares of the issuer, promoter, or selling
550 agent of the securities to be offered or any officer, d irector,
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551 or partner of such selling agent.
552 c. An issuer that who is a development-stage company that
553 either has no specific business plan or purpose or has indicated
554 that its business plan is to merge with an unidentified company
555 or companies.
556 d. An issuer of offerings in which the specific business
557 or properties cannot be described.
558 e. Any issuer the office determines is ineligible because
559 if the form does would not provide full and fair disclosure of
560 material information for the type of offering to be registered
561 by the issuer.
562 f. Any issuer that corporation which has failed to provide
563 the office the reports required for a previous offering
564 registered pursuant to this subparagraph.
565
566 As a condition precedent to qualifying for use of the simplified
567 offering circular, an issuer a corporation shall agree to
568 provide the office with an annual financial report containing a
569 balance sheet as of the end of the issuer's fiscal year and a
570 statement of income for such year, prepared in accordance with
571 United States generally accepted accounting principles and
572 accompanied by an independent accountant's report. If the issuer
573 has more than 100 security holders at the end of a fiscal year,
574 the financial statements must be audited. Annual financial
575 reports must be filed with the office within 90 days after the
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576 close of the issuer's fiscal year for each of the first 5 years
577 following the effective date of the registration.
578 (n) If the issuer is a corporation, there shall be filed
579 with the application a copy of its articles of incorporation
580 with all amendments and of its existing bylaws, if not already
581 on file in the office. If the issuer is a limited liability
582 company, there shall be filed with the application a copy of the
583 articles of organization with all the amendments and a copy of
584 the company's operating agreement, if not already on file with
585 the office. If the issuer is a trustee, there shall be filed
586 with the application a copy of all instruments by which the
587 trust is created or declared and in which it is accepted and
588 acknowledged. If the issuer is a partnership, unincorporated
589 association, joint-stock company, or any other form of
590 organization whatsoever, there shall be filed with the
591 application a copy of its articles of partnership or association
592 and all other papers pertaining to its organization, if not
593 already on file in the office.
594 (6) An issuer filing an application under this section
595 shall, at the time of filing, pay the office a nonreturn able fee
596 of $1,000 per application for each offering that exceeds the
597 amount provided in s. 3(b) of the Securities Act of 1933 , as
598 amended, or $200 per application for each offering that does not
599 exceed the amount provided in s. 3(b) of the Securities Act of
600 1933, as amended.
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601 (8) The office shall deem an application to register
602 securities filed with the office abandoned if the issuer or any
603 person acting on behalf of the issuer has failed to timely
604 complete an application specified by commsion rule. The
605 commission may by rule establish requirements and standards for:
606 (a) Disclosures to purchasers of viatical settlement
607 investments.
608 (b) Recordkeeping requirements for sellers of viatical
609 settlement investments.
610 Section 4. Section 517.082, Florida Statutes, is amended
611 to read:
612 517.082 Notification Registration by notification; federal
613 registration statements.—
614 (1) Except as provided in subsection (3), Securities
615 offered or sold pursuant to a registration statement filed under
616 the Securities Act of 1933, as amended, are shall be entitled to
617 registration by notification in the manner provided in
618 subsection (2), provided that before prior to the offer or sale
619 the registration statement has become effective.
620 (2) An application for registration by notification shall
621 be filed with the office, shall contain the following
622 information, and shall be accompanied by all of the following:
623 (a) An application to sell executed by the issuer, any
624 person on whose behalf the offering is made, a dealer registered
625 under this chapter, or any duly authorized agent of any such
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626 person, setting forth the name and address of the applicant, the
627 name and address of the issuer, and the title of the securities
628 to be offered and sold.;
629 (b) Copies of such documents filed with the Securities and
630 Exchange Commission as the Financial Services Commission may by
631 rule require.;
632 (c) An irrevocable written consent to service as required
633 by s. 517.101.; and
634 (d) A nonreturnable fee of $1,000 per application.
635
636 A registration under this section becomes effective when the
637 federal registration statement becomes effective or as of the
638 date the application is filed with the office, whichever is
639 later, provided that, in addition to the items listed in
640 paragraphs (a)-(d), the office has received written notification
641 of effective registration under the Securities Act of 1933 , as
642 amended, or the Investment Company Act of 1940, as amended,
643 within 10 business days after from the date federal registration
644 is granted. Failure to provide all the information required by
645 this subsection to the office within 60 days after of the date
646 the registration statement becomes effective with the Securities
647 and Exchange Commission shall be a violation of this chapter.
648 (3) Except for units of limited partnership interests or
649 such other securities as the commission describes by rule as
650 exempt from this subsection due to high investment quality, the
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651 provisions of this section may not be used to register
652 securities if the offering price at the time of effectiveness
653 with the Securities and Exchange Commission is $5 or less per
654 share, unless such securities are listed or designated, or
655 approved for listing or designation upon notice of issuance, on
656 a stock exchange registered pursuant to the Securities Exchange
657 Act of 1934, as amended, or on the National Association of
658 Securities Dealers Automated Quotation (NASDAQ) System, or
659 unless such securities are of the same issuer and of senior or
660 substantially equal rank to securities so listed or designated.
661 (4) In lieu of filing with the office the application,
662 fees, and documents for registration required by subsection (2),
663 the commission may establish, by rule, procedures for depositing
664 fees and filing documents by electronic means, provided such
665 procedures provide the office with the information and data
666 required by this section.
667 (5) If the Securities and Exchange Commission has not
668 declared effective the applicant's federal registration
669 statement within 180 days after the applicant's filing with the
670 office of an application for registration by notification, the
671 office must deem the application abandoned.
672 Section 5. Subsections (1) through (4) of section 517.111,
673 Florida Statutes, are amended to read:
674 517.111 Revocation or denial of registration of
675 securities.—
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676 (1) The office may revoke or suspend the registration of
677 any security, or may deny any application to register
678 securities, if, upon examination or investigation into the
679 affairs of the issuer of such security, the office determines it
680 shall appear that:
681 (a) The issuer cannot pay its debts as they become due in
682 the usual course of business is insolvent;
683 (b) The issuer or any officer, director, manager or
684 managing member, or control person of the issuer has violated
685 any provision of this chapter or any rule made hereunder or any
686 order of the office of which such issuer has notice;
687 (c) The issuer or any officer, director, manager or
688 managing member, or control person of the issuer has been or is
689 engaged or is about to engage in fraudulent transactions;
690 (d) The issuer or any officer, director, manager or
691 managing member, or control person of the issuer has been found
692 guilty of a fraudulent act in connection with any sale of
693 securities, has engaged, is engaged, or is about to engage, in
694 making a fictitious sale or purchase of any security, or in any
695 practice or sale of any security which is fraudulent or a
696 violation of any law;
697 (e) The issuer or any officer, director, manager or
698 managing member, or control person of the issuer has had a final
699 judgment entered against such issuer or person in a civil action
700 on the grounds of fraud, embezzlement, misrepresentation, or
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701 deceit;
702 (f) The issuer or any officer, director, manager or
703 managing member, or control person of the issuer has engaged in
704 any action that would be grounds for revocation, denial, or
705 suspension under s. 517.161(1) demonstrated any evidence of
706 unworthiness;
707 (g) The issuer or any officer, director, manager or
708 managing member, or control person of the issuer is in any other
709 way dishonest or has made any fraudulent representations or
710 failed to disclose any material information in any prospectus or
711 in any circular or other literature that has been distributed
712 concerning the issuer or its securities;
713 (h) The security registered or sought to be registered is
714 the subject of an injunction entered by a court of competent
715 jurisdiction or is the subject of an administrative stop -order
716 or similar order prohibiting the offer or sale of the security;
717 or
718 (i) For any security for which registration has been
719 applied pursuant to s. 517.081, the terms of the offer or sale
720 of such securities would not be fair, just, or equitable ; or
721 (j) The issuer or any person acting on behalf of the
722 issuer has failed to timely complete any application for
723 registration filed with the office pursuant to the provisions of
724 s. 517.081 or s. 517.082 or any rule adopted under such
725 sections.
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726 (2) In making such examination or investigation, the office
727 shall have access to and may compel the production of all the
728 books and papers of such issuer and may administer oaths to and
729 examine the officers of such issuer or any other person
730 connected therewith as to its business and affairs and may also
731 require a balance sheet exhibiting the assets and liabilities of
732 any such issuer or its income statement, or both, to be
733 certified to by a public accountant either of this state or of
734 any other state where the issuer's business is located. Whenever
735 the office deems it necessary, it may also require such balance
736 sheet or income statement, or both, to be made more specific in
737 such particulars as the office may require.
738 (3)(2) If any issuer refuses shall refuse to permit an
739 examination or investigation to be made by the office, it shall
740 be proper ground for revocation of registration.
741 (4)(3) If the office deems it necessary, it may enter an
742 order suspending the right to sell securities pending any
743 examination or investigation, provided that the order shall
744 state the office's grounds for taking such action.
745 (5)(4) Notice of the entry of such order shall be given
746 personally or by mail, personally, by telephone confirmed in
747 writing, or by telegraph to the issuer. Before such order is
748 made final, the issuer applying for registration shall, on
749 application, be entitled to a hearing.
750 Section 6. Subsections (1), (2), and (3), paragraph (b) of
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751 subsection (6), subsections (7) and (11), paragraph (b) of
752 subsection (15), and subsections (20) and (21) of section
753 517.12, Florida Statutes, are amended to read:
754 517.12 Registration of dealers, associated persons,
755 intermediaries, and investment advisers.—
756 (1) No dealer or associated person shall No dealer,
757 associated person, or issuer of securities shall sell or offer
758 for sale any securities in or from offices in this state , or
759 sell securities to persons in this state from offices outside
760 this state, by mail or otherwise, unless the person is has been
761 registered with the office as a dealer or as an associated
762 person of a dealer pursuant to the provisions of this section.
763 The office shall not register any person as an associated person
764 of a dealer unless the dealer with which the applicant seeks
765 registration is lawfully registered with the office pursuant to
766 this chapter.
767 (2) The registration requirements of this section do not
768 apply to the issuers of securities exempted by s. 517.051(1) -(8)
769 and (10).
770 (3) Except as otherwise provided in s. 517.061(11)(a)4.,
771 (13), (16), (17), or (19), The registration requirements of this
772 section do not apply in a transaction exempted by s. 517.061(1)-
773 (10) and (12), s. 517.061(1)-(12), (14), and (15).
774 (5)(6) A dealer, associated person, or investment adviser,
775 in order to obtain registration, must file with the office a
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776 written application, on a form which the commission may by rule
777 prescribe. The commission may establish, by rule, procedures for
778 depositing fees and filing documents by electronic means
779 provided such procedures provide the office with the information
780 and data required by this section. Each dealer or investment
781 adviser must also file an irrevocable written consent to service
782 of civil process similar to that provided for in s. 517.101. The
783 application shall contain such information as the commission or
784 office may require concerning such matters as:
785 (b) The applicant's form and place of organization; and,
786 if the applicant is:
787 1. A corporation, a copy of its articles of incorporation
788 and amendments to the articles of incorporation;
789 2. A limited liability company, a copy of its articles of
790 organization with amendments to its articles; or
791 3. , if A partnership, a copy of the partnership
792 agreement.
793 (6)(7) The application must also contain such information
794 as the commission or office may require about the applicant; any
795 member, principal, or director of the applicant or any person
796 having a similar status or performing similar functions; any
797 control person of directly or indirectly controlling the
798 applicant; or any employee of a dealer or of an investment
799 adviser rendering investment advisory services. Each applicant
800 and any direct owners, principals, or indirect owners that are
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801 required to be reported on Form BD or Form ADV pursuant to
802 subsection (14) (15) shall submit fingerprints for live-scan
803 processing in accordance with rules adopted by the commission.
804 The fingerprints may be submitted through a third-party vendor
805 authorized by the Department of Law Enforcement to provide live-
806 scan fingerprinting. The costs of fingerprint processing shall
807 be borne by the person subject to the background check. The
808 Department of Law Enforcement shall conduct a state criminal
809 history background check, and a federal criminal history
810 background check must be conducted through the Federal Bureau of
811 Investigation. The office shall review the results of the state
812 and federal criminal history background checks and determine
813 whether the applicant meets licensure requirements. The
814 commission may waive, by rule, the requirement that applicants,
815 including any direct owners, principals, or indirect owners that
816 are required to be reported on Form BD or Form ADV pursuant to
817 subsection (14) (15), submit fingerprints or the requirement
818 that such fingerprints be processed by the Department of Law
819 Enforcement or the Federal Bureau of Investigation. The
820 commission or office may require information about any such
821 applicant or person concerning such matters as:
822 (a) The applicant's or person's His or her full name, and
823 any other names by which the applicant or person he or she may
824 have been known, and the applicant's or person's his or her age,
825 social security number, photograph, qualifications, and
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826 educational and business history.
827 (b) Any injunction or administrative order by a state or
828 federal agency, national securities exchange, or national
829 securities association involving a security or any aspect of a
830 dealer's or investment adviser's regulated the securities
831 business and any injunction or administrative order by a state
832 or federal agency regulating banking, insurance, finance, or
833 small loan companies, real estate, mortgage brokers, or other
834 related or similar industries, which injunctions or
835 administrative orders relate to such person.
836 (c) The applicant's or person's His or her conviction of,
837 or plea of nolo contendere to, a criminal offense or his or her
838 commission of any acts which would be grounds for refusal of an
839 application under s. 517.161.
840 (d) The names and addresses of other persons of whom the
841 office may inquire as to his or her character, reputation, and
842 financial responsibility.
843 (10)(a)(11)(a) If the office finds that the applicant is
844 of good repute and character and has complied with the
845 applicable registration provisions of this chapter and the rules
846 made pursuant hereto, it shall register the applicant unless the
847 applicant is otherwise disqualified for registration pursuant to
848 law. The registration of each dealer, investment adviser, and
849 associated person expires on December 31 of the year the
850 registration became effective unless the registrant has renewed
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851 its his or her registration on or before that date. Registration
852 may be renewed by furnishing such information as the commission
853 may require, together with payment of the fee required in
854 paragraph (9)(a) (10)(a) for dealers, investment advisers, or
855 associated persons and the payment of any amount lawfully due
856 and owing to the office pursuant to any order of the office or
857 pursuant to any agreement with the office. Any deal er,
858 investment adviser, or associated person who has not renewed a
859 registration by the time the current registration expires may
860 request reinstatement of such registration by filing with the
861 office, on or before January 31 of the year following the year
862 of expiration, such information as may be required by the
863 commission, together with payment of the fee required in
864 paragraph (9)(a) (10)(a) for dealers, investment advisers, or
865 associated persons and a late fee equal to the amount of such
866 fee. Any reinstatement of registration granted by the office
867 during the month of January shall be deemed effective
868 retroactive to January 1 of that year.
869 (b) The office shall waive the $50 assessment fee for an
870 associated person required by paragraph (9)(a) (10)(a) for a
871 registrant renewing his or her registration who:
872 1. Is an active duty member of the United States Armed
873 Forces or the spouse of such member;
874 2. Is or was a member of the United States Armed Forces
875 and served on active duty within the 2 years preceding t he
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876 expiration date of the registration pursuant to paragraph (a).
877 To qualify for the fee waiver, a registrant who is a former
878 member of the United States Armed Forces who served on active
879 duty within the 2 years preceding the expiration date of the
880 registration must have received an honorable discharge upon
881 separation or discharge from the United States Armed Forces; or
882 3. Is the surviving spouse of a member of the United
883 States Armed Forces if the member was serving on active duty at
884 the time of death and died within the 2 years preceding the
885 surviving spouse's registration expiration date pursuant to
886 paragraph (a).
887
888 A registrant seeking such fee waiver must submit proof, in a
889 form prescribed by commission rule, that the registrant meets
890 one of the qualifications in this paragraph.
891 (14)(15)
892 (b) In lieu of filing with the office the applications
893 specified in subsection (5) (6), the fees required by subsection
894 (9) (10), the renewals required by subsection (10) (11), and the
895 termination notices required by subsection (11) (12), the
896 commission may by rule establish procedures for the deposit of
897 such fees and documents with the Central Registration Depository
898 or the Investment Adviser Registration Depository of the
899 Financial Industry Regulatory Authority, as developed under
900 contract with the North American Securities Administrators
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901 Association, Inc.
902 (19)(20) An intermediary may not engage in business in
903 this state unless the intermediary is registered as a dealer or
904 as an intermediary with the office pursuant to this section to
905 facilitate the offer or sale of securities in accordance with s.
906 517.0611. An intermediary, in order to obtain registration, must
907 file with the office a written application on a form prescribed
908 by commission rule and pay a registration fee of $200. The fees
909 under this subsection shall be deposited into the Regulatory
910 Trust Fund of the office. The commission may establish by rule
911 procedures for depositing fees and filing documents by
912 electronic means if such procedures provide the office with the
913 information and data required by this section. Each intermediary
914 must also file an irrevocable written consent to service of
915 civil process, as provided in s. 517.101.
916 (a) The application must contain such information as the
917 commission or office may require concerning:
918 1. The name of the applicant and address of its principal
919 office and each office in this state.
920 2. The applicant's form and place of organization; and, if
921 the applicant is:
922 a. A corporation, a copy of its articles of incorporation
923 and amendments to the articles of incorporation;
924 b. A limited liability company, a copy of its articles of
925 organization and amendments to the articles and a copy of the
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926 company's operating agreement; or
927 c. , if A partnership, a copy of the partnership
928 agreement.
929 3. The website address where securities of the issuer will
930 be offered.
931 4. Contact information.
932 (b) The application must also contain such information as
933 the commission may require by rule about the applicant; any
934 member, principal, or director of the applicant or any person
935 having a similar status or performing similar functions; or any
936 control person of persons directly or indirectly controlling the
937 applicant. Each applicant and any direct owners, principals, or
938 indirect owners that are required to be reported on a form
939 adopted by commission rule shall submit fingerprints for live -
940 scan processing in accordance with rules adopted by the
941 commission. The fingerprints may be submitted through a third-
942 party vendor authorized by the Department of Law Enforcement to
943 provide live-scan fingerprinting. The costs of fingerprint
944 processing shall be borne by the person subject to the
945 background check. The Department of Law Enforcement shall
946 conduct a state criminal history background check, and a federal
947 criminal history background check must be conducted through the
948 Federal Bureau of Investigation. The office shall review the
949 results of the state and federal criminal history background
950 checks and determine whether the applicant meets registration
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951 requirements. The commission may waive, by rule, the requirement
952 that applicants, including any direct owners, principals, or
953 indirect owners, which are required to be reported on a form
954 adopted by commission rule, submit fingerprints or the
955 requirement that such fingerprints be processed by the
956 Department of Law Enforcement or the Federal Bureau of
957 Investigation. The commission, by rule, or the office may
958 require information about any applicant or person, including:
959 1. The applicant's or person's His or her full name and
960 any other names by which the applicant or person he or she may
961 have been known and the applicant's or person's his or her age,
962 social security number, photograph, qualifications, and
963 educational and business history.
964 2. Any injunction or administrative order by a state or
965 federal agency, national securities exchange, or national
966 securities association involving a security or any aspect of an
967 intermediary's regulated the securities business and any
968 injunction or administrative order by a state or federal agency
969 regulating banking, insurance, finance, or small loan companies,
970 real estate, mortgage brokers, or other related or similar
971 industries, which relate to such person.
972 3. The applicant's or person's His or her conviction of,
973 or plea of nolo contendere to, a criminal offense or the
974 applicant's or person's his or her commission of any acts that
975 would be grounds for refusal of an application under s. 517.161.
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976 (c) The application must be amended within 30 days if any
977 information contained in the form becomes inaccurate for any
978 reason.
979 (d) An intermediary or persons affiliated with the
980 intermediary are not subject to any disqualification described
981 in s. 517.1611 or United States Securities and Exchange
982 Commission Rule 506(d), 17 C.F.R. 230.506(d), adopted pursuant
983 to the Securities Act of 1933, as amended. Each director,
984 officer, manager or managing member, control person of the
985 issuer, any person occupying a similar status or performing a
986 similar function, and each person holding more than 20 percent
987 of the ownership interests shares of the intermediary is subject
988 to this requirement.
989 (e) If the office finds that the applicant is of good
990 repute and character and has complied with the applicable
991 registration provisions of this chapter and the rules adopted
992 thereunder, it shall register the applicant. The registration of
993 each intermediary expires on December 31 of the year the
994 registration became effective unless the registrant renews his
995 or her registration on or before that date. Registration may be
996 renewed by furnishing such information as the commission may
997 require by rule, together with payment of a $200 fee and the
998 payment of any amount due to the office pursuant to any order of
999 the office or pursuant to any agreement with the office. An
1000 intermediary who has not renewed a registration by the time that
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1001 the current registration expires may request reinstatement of
1002 such registration by filing with the office, on or before
1003 January 31 of the year following the year of expiration, such
1004 information as required by the commission, together with payment
1005 of the $200 fee and a late fee of $200. Any reinstatement of
1006 registration granted by the office during the month of January
1007 is deemed effective retroactive to January 1 of that year.
1008 (20)(21) The registration requirements of this section do
1009 not apply to any general lines insurance agent or life insurance
1010 agent licensed under chapter 626, for the sale of a security as
1011 defined in s. 517.021(28)(g) s. 517.021(22)(g), if the
1012 individual is directly authorized by the issuer to offer or sell
1013 the security on behalf of the issuer and the issuer is a
1014 federally chartered savings bank subject to regulation by the
1015 Federal Deposit Insurance Corporation. Actions under this
1016 subsection shall constitute activity under the insurance agent's
1017 license for purposes of ss. 626.611 and 626.621.
1018 Section 7. Section 517.1214, Florida Statutes, is created
1019 to read:
1020 517.1214 Continuing education requirements for associated
1021 persons of investment advisers and federal covered advisers. —
1022 (1) As used in this section, the term:
1023 (a) "Approved continuing education content" means the
1024 materials, written, oral, or otherwise, which have been approved
1025 by NASAA or its designee and which make up the educational
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1026 program provided to an associated person under this section.
1027 (b) "Credit" means a unit designated by NASAA or its
1028 designee as at least 50 minutes of educational instruction.
1029 (c) "Home state" means the state in which an assoc iated
1030 person of an investment adviser or a federal covered adviser has
1031 his or her principal office and place of business.
1032 (d) "NASAA" means the North American Securities
1033 Administrators Association, Inc.
1034 (e) "Reporting period" means one 12-month period beginning
1035 January 1 and ending December 31. An associated person's initial
1036 reporting period with this state commences the first day of the
1037 first full reporting period after the individual is registered
1038 or required to be registered with this state.
1039 (2) By December 31, 2024, and each December 31 thereafter,
1040 each associated person of an investment adviser or a federal
1041 covered adviser shall complete the following continuing
1042 education content requirements offered by a person that NASAA or
1043 its designee has authorized to provide the continuing education
1044 content required by this section:
1045 (a) Six credits of approved continuing education content
1046 that addresses an associated person's ethical and regulatory
1047 obligations, with at least 3 hours covering the topic of ethics;
1048 and
1049 (b) Six credits of approved continuing education content
1050 that addresses an associated person's skills and knowledge
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1051 regarding financial products, investment features, and practices
1052 in the investment advisory industry.
1053 (3) An associated person of an investment adviser or
1054 federal covered adviser who is also registered as an associated
1055 person of a Financial Industry Regulatory Authority (FINRA)
1056 member dealer and who complies with FINRA's continuing education
1057 requirements is considered to be in compliance with this
1058 section's products and practice requirement for each applicable
1059 reporting period, provided that the FINRA continuing education
1060 content is approved continuing education content.
1061 (4) Credits of continuing education completed by an
1062 associated person who was awarded and currently holds a
1063 credential that qualifies for examination waiver by passing any
1064 tests as prescribed in s. 15(b)(7) of the Securities Exchange
1065 Act of 1934, as amended, comply with paragraphs (2)(a) and (b),
1066 provided all of the following conditions are met:
1067 (a) The associated person completes the credits of
1068 continuing education as a condition of maintaining the
1069 credential for the relevant reporting period.
1070 (b) The credits of continuing education completed during
1071 the relevant reporting period by the associated person are
1072 mandatory to maintain the credential.
1073 (c) The continuing education content provided by the
1074 credentialing organization during the relevant reporting period
1075 is approved continuing education content.
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1076 (5) Each associated person is responsible for ensuring
1077 that the authorized provider reports the associated person's
1078 completion of the applicable continuing education requirements.
1079 (6) An associated person who completes credits of
1080 continuing education in excess of the credits required for the
1081 reporting period may not carry forward excess credits to a
1082 subsequent reporting period.
1083 (7) An associated person who fails to comply with this
1084 section by the end of a reporting period shall renew as "CE
1085 inactive" at the close of the calendar year in this state until
1086 the associated person completes and reports all required
1087 continuing education credits for all reporting periods as
1088 required by this section. If an associated person renews as “CE
1089 inactive” at the close of the calendar year and fails to
1090 complete and report all required continuing education credits
1091 for all reporting periods as required by this section by the
1092 close of the next calendar year, the associated person becomes
1093 unregistered for purposes of this chapter.
1094 (8) An associated person registered or required to be
1095 registered in this state who is registered as an associated
1096 person of an investment adviser or federal covered adviser in
1097 the individual's home state is considered to be in compliance
1098 with this section if:
1099 (a) By December 24, 2024, and each December 31 thereafter,
1100 the associated person completes the continuing education
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1101 requirements set forth in s. 517.1214(2); and
1102 (b) The associated person is in compliance with the home
1103 state's associated person of an investment adviser or federal
1104 covered adviser continuing education requirements.
1105 (9) An associated person who was previously registered
1106 under s. 517.12 and became unregistered must complete continuing
1107 education for all reporting periods that occurred between the
1108 time that the associated person became unregistered and when the
1109 person became registered again under s. 517.12, unless the
1110 associated person takes and passes the required examinations or
1111 the examination requirements are waived in connection with the
1112 subsequent application for registration.
1113 Section 8. Section 517.1217, Florida Statutes, is amended
1114 to read:
1115 517.1217 Rules of conduct and prohibited business
1116 practices for dealers and their associated persons and for
1117 intermediaries.—
1118 The commission by rule may establish rules of conduct and
1119 prohibited business practices for dealers and their associated
1120 persons and for intermediaries. In adopting the rules, the
1121 commission shall consider general industry standards as
1122 expressed in the rules and regulations of the various federal
1123 and self-regulatory agencies and regulatory associations,
1124 including, but not limited to, the United States Securities and
1125 Exchange Commission, the Financial Industry Regulatory
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1126 Authority, and the North American Securities Administrators
1127 Association, Inc.
1128 Section 9. Subsections (1), (4), and (5) of section
1129 517.161, Florida Statutes, are amended to read:
1130 517.161 Revocation, denial, or suspension of registration
1131 of dealer, investment adviser, intermediary, or associated
1132 person.—
1133 (1) Registration under s. 517.12 may be denied or any
1134 registration granted may be revoked, restricted, or suspended by
1135 the office if the office determines that such applicant or
1136 registrant; any member, principal, or director of the ap plicant
1137 or registrant or any person having a similar status or
1138 performing similar functions; or any control person of directly
1139 or indirectly controlling the applicant or registrant:
1140 (a) Has violated any provision of this chapter or any rule
1141 or order made under this chapter;
1142 (b) Has made a material false statement in the application
1143 for registration;
1144 (c) Has been guilty of a fraudulent act in connection with
1145 rendering investment advice or in connection with any sale of
1146 securities, has been or is engaged or is about to engage in
1147 making fictitious or pretended sales or purchases of any such
1148 securities or in any practice involving the rendering of
1149 investment advice or the sale of securities which is fraudulent
1150 or in violation of the law;
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1151 (d) Has made a misrepresentation or false statement to, or
1152 concealed any essential or material fact from, any person in the
1153 rendering of investment advice or the sale of a security to such
1154 person;
1155 (e) Has failed to account to persons interested for all
1156 money and property received;
1157 (f) Has not delivered, after a reasonable time, to persons
1158 entitled thereto securities held or agreed to be delivered by
1159 the dealer, broker, or investment adviser, as and when paid for,
1160 and due to be delivered;
1161 (g) Is rendering investment advice or selling or offering
1162 for sale securities through any associated person not registered
1163 in compliance with the provisions of this chapter;
1164 (h) Has demonstrated unworthiness to transact the business
1165 of dealer, investment adviser, intermediary, or associated
1166 person;
1167 (i) Has exercised management or policy control over or
1168 owned 10 percent or more of the securities of any dealer,
1169 intermediary, or investment adviser that has been declared
1170 bankrupt, or had a trustee appointed under the Securities
1171 Investor Protection Act; or is, in the case of a dealer,
1172 intermediary, or investment adviser, unable to pay its debts as
1173 they become due in the usual course of business insolvent;
1174 (i)(j) Has been convicted of, or has entered a plea of
1175 guilty or nolo contendere to, regardless of whether adjudication
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1176 was withheld, a crime against the laws of this state or any
1177 other state or of the United States or of any other country or
1178 government which relates to registration as a dealer, investment
1179 adviser, issuer of securities, intermediary, or associated
1180 person; which relates to the application for such registration;
1181 or which involves moral turpitude or fraudulent or dishonest
1182 dealing;
1183 (j)(k) Has had a final judgment entered against her or him
1184 in a civil action upon grounds of fraud, embezzlement,
1185 misrepresentation, or deceit;
1186 (l) Is of bad business repute;
1187 (k)(m) Has been the subject of any decision, finding,
1188 injunction, suspension, prohibition, revocation, denial,
1189 judgment, or administrative order by any court of compet ent
1190 jurisdiction, administrative law judge, or by any state or
1191 federal agency, national securities, commodities, or option
1192 exchange, or national securities, commodities, or option
1193 association, involving a violation of any federal or state
1194 securities or commodities law or any rule or regulation
1195 promulgated thereunder, or any rule or regulation of any
1196 national securities, commodities, or options exchange or
1197 national securities, commodities, or options association, or has
1198 been the subject of any injunction or adverse administrative
1199 order by a state or federal agency regulating banking,
1200 insurance, finance or small loan companies, real estate,
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1201 mortgage brokers or lenders, money transmitters, or other
1202 related or similar industries. For purposes of this subsection,
1203 the office may not deny registration to any applicant who has
1204 been continuously registered with the office for 5 years after
1205 the date of entry of such decision, finding, injunction,
1206 suspension, prohibition, revocation, denial, judgment, or
1207 administrative order provided such decision, finding,
1208 injunction, suspension, prohibition, revocation, denial,
1209 judgment, or administrative order has been timely reported to
1210 the office pursuant to the commission's rules; or
1211 (l)(n) Made payment to the office for a registration with
1212 a check or electronic transmission of funds that is dishonored
1213 by the applicant's or registrant's financial institution ;
1214 (m) Failed to pay and fully satisfy any final judgment or
1215 arbitration award resulting from an investment-related, client-
1216 or customer-initiated arbitration or court proceeding, unless
1217 alternative payment arrangements are agreed to in writing
1218 between the client or customer and the investment adviser,
1219 dealer, or associated person and the investment adviser, dealer,
1220 or associated person complies with the terms of the alternative
1221 payment arrangement;
1222 (n) Attempted to avoid payment of any final judgment or
1223 arbitration award resulting from an investment-related, client-
1224 or customer-initiated arbitration or court proceeding, unless
1225 alternative payment arrangements are agreed to in writing
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1226 between the client or customer and the investment adviser,
1227 dealer, or associated person and the investment adviser, dealer,
1228 or associated person complies with the terms of the alternative
1229 payment arrangements; or
1230 (o) Failed to pay and fully satisfy any fine, civil
1231 penalty, order of restitution, order of disgorgement, or similar
1232 monetary payment obligation imposed upon the investment adviser,
1233 dealer, or associated person by the Securities and Exchange
1234 Commission, the securities regulator or other financial services
1235 regulator of any state or province, or any securities industry
1236 self-regulatory organization.
1237 (4) It shall be sufficient cause for denial of an
1238 application or revocation of registration, in the case of a
1239 partnership, corporation, limited liability company, or
1240 unincorporated association, if any member of the partnership ,
1241 any manager or managing member of the limited liability company,
1242 or any officer, director, or ultimate equitable owner of the
1243 corporation or association has committed any act or omission
1244 which would be cause for denying, revoking, restricting, or
1245 suspending the registration of an individual dealer, investment
1246 adviser, intermediary, or associated person. As used in this
1247 subsection, the term "ultimate equitable owner" means a natural
1248 person who directly or indirectly owns or controls an ownership
1249 interest in the corporation, partnership, association, or other
1250 legal entity however organized, regardless of whether such
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1251 natural person owns or controls such ownership interest through
1252 one or more proxies, powers of attorney, nominees, corporations,
1253 associations, partnerships, trusts, joint stock companies, or
1254 other entities or devices, or any combination thereof.
1255 (5) The office may deny any request to terminate or
1256 withdraw any application or registration if the office believes
1257 that an act that which would be a ground for denial, suspension,
1258 restriction, or revocation under this chapter has been
1259 committed.
1260 Section 10. Subsection (2) of section 517.1611, Florida
1261 Statutes, is amended to read:
1262 517.1611 Guidelines.—
1263 (2) The commission shall adopt by rule disqualifying
1264 periods pursuant to which an applicant will be disqualified from
1265 eligibility for registration based upon criminal convictions,
1266 pleas of nolo contendere, or pleas of guilt, regardless of
1267 whether adjudication was withheld, by the applicant; any
1268 partner, member, officer, or director of the applicant or any
1269 person having a similar status or performing similar functions;
1270 or any control person of directly or indirectly controlling the
1271 applicant.
1272 (a) The disqualifying periods shall be 15 years for a
1273 felony and 5 years for a misdemeanor.
1274 (b) The disqualifying periods shall be related to crimes
1275 involving registration as a dealer, investment adviser, issuer
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1276 of securities, or associated person or the application for such
1277 registration or involving moral turpitude or fraudulent or
1278 dishonest dealing.
1279 (c) The rules may also address mitigating factors, an
1280 additional waiting period based upon dates of imprisonment or
1281 community supervision, an additional waiting period based upon
1282 commitment of multiple crimes, and other factors reasonably
1283 related to the consideration of an applicant's criminal history.
1284 (d) An applicant is not eligible for registration until
1285 the expiration of the disqualifying period set by rule. Section
1286 112.011 does not apply to the registration provisions under this
1287 chapter. Nothing in this section changes or amends the grounds
1288 for denial under s. 517.161.
1289 Section 11. Section 517.181, Florida Statutes, is
1290 repealed.
1291 Section 12. Paragraph (a) of subsection (4) of section
1292 517.201, Florida Statutes, is amended to read:
1293 517.201 Investigations; examinations; subpoenas; hearings;
1294 witnesses.—
1295 (4)(a) In the event of substantial noncompliance with a
1296 subpoena or subpoena duces tecum issued or caused to be issued
1297 by the office pursuant to this section, the office may petition
1298 the circuit court of the county in which the person subpoenaed
1299 resides or has its principal place of business for an order
1300 requiring the subpoenaed person to appear and testify and to
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1301 produce such books, records, and documents as are specified in
1302 such subpoena duces tecum. The court may grant injunctive relief
1303 restraining the issuance, sale or offer for sale, purchase or
1304 offer to purchase, promotion, negotiation, advertisement, or
1305 distribution in or from offices in this state of securities or
1306 investments in or from this state by the noncompliant a person
1307 or its agent, employee, broker, partner, officer, director,
1308 manager, managing member, control person, or equity holder
1309 stockholder thereof, and may grant such other relief, including,
1310 but not limited to, the restraint, by injunction or appointment
1311 of a receiver, of any transfer, pledge, assignment, or other
1312 disposition of such person's assets or any concealment,
1313 alteration, destruction, or other disposition of subpoenaed
1314 books, records, or documents, as the court deems appropriate,
1315 until such person has fully complied with such subpoena or
1316 subpoena duces tecum and the office has completed its
1317 investigation or examination. The office is entitled to the
1318 summary procedure provided in s. 51.011, and the court shall
1319 advance the cause on its calendar. Costs incurred by the office
1320 to obtain an order granting, in whole or in part, such petition
1321 for enforcement of a subpoena or subpoena duces tecum shall be
1322 taxed against the subpoenaed person, and failure to comply with
1323 such order shall be a contempt of court.
1324 Section 13. Paragraph (d) of subsection (3) of section
1325 921.0022, Florida Statutes, is amended to read:
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1326 921.0022 Criminal Punishment Code; offense severity
1327 ranking chart.—
1328 (3) OFFENSE SEVERITY RANKING CHART
1329 (d) LEVEL 4
1330
Florida Felony
Statute Degree Description
1331
316.1935(3)(a) 2nd Driving at high speed
or with wanton
disregard for safety
while fleeing or
attempting to elude law
enforcement officer who
is in a patrol vehicle
with siren and lights
activated.
1332
499.0051(1) 3rd Failure to maintain or
deliver transaction
history, transaction
information, or transaction
statements.
1333
499.0051(5) 2nd Knowing sale or delivery,
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or possession with intent
to sell, contraband
prescription drugs.
1334
517.07(1) 3rd Failure to register
securities.
1335
517.12(1) 3rd Failure of dealer or,
associated person of a
dealer, or issuer of
securities to register.
1336
784.07(2)(b) 3rd Battery of law enforcement
officer, firefighter, etc.
1337
784.074(1)(c) 3rd Battery of sexually
violent predators
facility staff.
1338
784.075 3rd Battery on detention or
commitment facility staff.
1339
784.078 3rd Battery of facility employee
by throwing, tossing, or
expelling certain fluids or
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materials.
1340
784.08(2)(c) 3rd Battery on a person
65 years of age or
older.
1341
784.081(3) 3rd Battery on specified
official or employee.
1342
784.082(3) 3rd Battery by detained
person on visitor or
other detainee.
1343
784.083(3) 3rd Battery on code
inspector.
1344
784.085 3rd Battery of child by throwing,
tossing, projecting, or
expelling certain fluids or
materials.
1345
787.03(1) 3rd Interference with custody;
wrongly takes minor from
appointed guardian.
1346
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787.04(2) 3rd Take, entice, or remove child
beyond state limits with
criminal intent pending
custody proceedings.
1347
787.04(3) 3rd Carrying child beyond
state lines with criminal
intent to avoid producing
child at custody hearing
or delivering to
designated person.
1348
787.07 3rd Human smuggling.
1349
790.115(1) 3rd Exhibiting firearm or
weapon within 1,000 feet
of a school.
1350
790.115(2)(b) 3rd Possessing electric
weapon or device,
destructive device, or
other weapon on school
property.
1351
790.115(2)(c) 3rd Possessing firearm on
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school property.
1352
794.051(1) 3rd Indecent, lewd, or
lascivious touching of
certain minors.
1353
800.04(7)(c) 3rd Lewd or lascivious
exhibition; offender less
than 18 years.
1354
806.135 2nd Destroying or demolishing a
memorial or historic property.
1355
810.02(4)(a) 3rd Burglary, or attempted
burglary, of an
unoccupied structure;
unarmed; no assault or
battery.
1356
810.02(4)(b) 3rd Burglary, or attempted
burglary, of an
unoccupied conveyance;
unarmed; no assault or
battery.
1357
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810.06 3rd Burglary; possession of tools.
1358
810.08(2)(c) 3rd Trespass on property,
armed with firearm or
dangerous weapon.
1359
812.014(2)(c)3. 3rd Grand theft, 3rd
degree $10,000 or
more but less than
$20,000.
1360
812.014 3rd Grand theft, 3rd degree;
(2)(c)4.-10. specified items.
1361
812.0195(2) 3rd Dealing in stolen
property by use of the
Internet; property
stolen $300 or more.
1362
817.505(4)(a) 3rd Patient brokering.
1363
817.563(1) 3rd Sell or deliver substance
other than controlled
substance agreed upon,
excluding s. 893.03(5)
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drugs.
1364
817.568(2)(a) 3rd Fraudulent use of personal
identification information.
1365
817.625(2)(a) 3rd Fraudulent use of
scanning device,
skimming device, or
reencoder.
1366
817.625(2)(c) 3rd Possess, sell, or
deliver skimming
device.
1367
828.125(1) 2nd Kill, maim, or cause
great bodily harm or
permanent breeding
disability to any
registered horse or
cattle.
1368
836.14(2) 3rd Person who commits
theft of a sexually
explicit image with
intent to promote it.
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1369
836.14(3) 3rd Person who willfully
possesses a sexually
explicit image with
certain knowledge, intent,
and purpose.
1370
837.02(1) 3rd Perjury in official
proceedings.
1371
837.021(1) 3rd Make contradictory statements
in official proceedings.
1372
838.022 3rd Official misconduct.
1373
839.13(2)(a) 3rd Falsifying records of
an individual in the
care and custody of a
state agency.
1374
839.13(2)(c) 3rd Falsifying records of
the Department of
Children and Families.
1375
843.021 3rd Possession of a concealed
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handcuff key by a person in
custody.
1376
843.025 3rd Deprive law enforcement,
correctional, or correctional
probation officer of means of
protection or communication.
1377
843.15(1)(a) 3rd Failure to appear while
on bail for felony
(bond estreature or
bond jumping).
1378
847.0135(5)(c) 3rd Lewd or lascivious
exhibition using
computer; offender
less than 18 years.
1379
870.01(3) 2nd Aggravated rioting.
1380
870.01(5) 2nd Aggravated inciting a
riot.
1381
874.05(1)(a) 3rd Encouraging or recruiting
another to join a
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criminal gang.
1382
893.13(2)(a)1. 2nd Purchase of cocaine (or
other s. 893.03(1)(a),
(b), or (d), (2)(a),
(2)(b), or (2)(c)5.
drugs).
1383
914.14(2) 3rd Witnesses accepting
bribes.
1384
914.22(1) 3rd Force, threaten, etc.,
witness, victim, or
informant.
1385
914.23(2) 3rd Retaliation against a
witness, victim, or
informant, no bodily injury.
1386
916.1085 3rd Introduction of specified
(2)(c)1. contraband into certain DCF
facilities.
1387
918.12 3rd Tampering with jurors.
1388
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934.215 3rd Use of two-way communications
device to facilitate commission
of a crime.
1389
944.47(1)(a)6. 3rd Introduction of
contraband (cellular
telephone or other
portable communication
device) into correctional
institution.
1390
951.22(1)(h), 3rd Intoxicating drug,
(j) & (k) instrumentality or other
device to aid escape, or
cellular telephone or other
portable communication
device introduced into
county detention facility.
1391
1392 Section 14. Section 517.1215, Florida Statutes, is amended
1393 to read:
1394 517.1215 Requirements, rules of conduct, and prohibited
1395 business practices for investment advisers advisors and their
1396 associated persons.—
1397 (1) The commission shall specify by rule requirements for
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1398 investment advisers advisors deemed to have custody of client
1399 funds which concern the following:
1400 (a) Notification of custody of, maintenance of, and
1401 safeguards for client funds.
1402 (b) Communications with clients and independent
1403 representatives.
1404 (c) Requirements for investment advisers who have custody
1405 of pooled investments.
1406 (d) Exceptions to the custody requirements.
1407
1408 In adopting the rules, the commission shall consider the rules
1409 and regulations of the federal regulatory authority and the
1410 North American Securities Administrators Association, Inc.
1411 (2) The commission shall by rule establish rules of
1412 conduct and prohibited business practices for investment
1413 advisers and their associated persons. In adopting the rules,
1414 the commission shall consider general industry standards as
1415 expressed in the rules and regulations of the various federal
1416 and self-regulatory agencies and regulatory associations,
1417 including, but not limited to, the United States Securities and
1418 Exchange Commission, the Financial Industry Regulatory
1419 Authority, and the North American Securities Administrators
1420 Association, Inc.
1421 Section 15. Subsection (1) of section 517.075, Florida
1422 Statutes, is amended to read:
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1423 517.075 Cuba, prospectus disclosure of doing business
1424 with, required.—
1425 (1) Any issuer of securities that will be sold in this
1426 state pursuant to a prospectus must disclose in the prospectus
1427 if the issuer or any affiliate thereof, as defined in s.
1428 517.021(1), does business with the government of Cuba or with
1429 any person or affiliate located in Cuba. The prospectus
1430 disclosure required by this subsection does not apply with
1431 respect to prospectuses prepared before April 10, 1992.
1432 Section 16. Paragraph (a) of subsection (1) of section
1433 517.131, Florida Statutes, is amended to read:
1434 517.131 Securities Guaranty Fund.—
1435 (1)(a) The Chief Financial Officer shall establish a
1436 Securities Guaranty Fund. An amount not exceeding 20 percent of
1437 all revenues received as assessment fees pursuant to s.
1438 517.12(9) and (10) s. 517.12(10) and (11) for dealers and
1439 investment advisers or s. 517.1201 for federal covered advisers
1440 and an amount not exceeding 10 percent of all revenues received
1441 as assessment fees pursuant to s. 517.12(9) and (10) s.
1442 517.12(10) and (11) for associated persons shall be part of the
1443 regular license fee and shall be transferred to or deposited in
1444 the Securities Guaranty Fund.
1445 Section 17. Subsection (1) of section 517.211, Florida
1446 Statutes, is amended to read:
1447 517.211 Remedies available in cases of unlawful sale.—
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1448 (1) Every sale made in violation of either s. 517.07 or s.
1449 517.12(1), (3), (4), (8), (10), (12), (15), or (17) (4), (5),
1450 (9), (11), (13), (16), or (18) may be rescinded at the election
1451 of the purchaser, except a sale made in violation of the
1452 provisions of s. 517.1202(3) relating to a renewal of a bran ch
1453 office notification shall not be subject to this section, and a
1454 sale made in violation of the provisions of s. 517.12(12) s.
1455 517.12(13) relating to filing a change of address amendment
1456 shall not be subject to this section. Each person making the
1457 sale and every director, officer, partner, or agent of or for
1458 the seller, if the director, officer, partner, or agent has
1459 personally participated or aided in making the sale, is jointly
1460 and severally liable to the purchaser in an action for
1461 rescission, if the purchaser still owns the security, or for
1462 damages, if the purchaser has sold the security. No purchaser
1463 otherwise entitled will have the benefit of this subsection who
1464 has refused or failed, within 30 days of receipt, to accept an
1465 offer made in writing by the seller, if the purchaser has not
1466 sold the security, to take back the security in question and to
1467 refund the full amount paid by the purchaser or, if the
1468 purchaser has sold the security, to pay the purchaser an amount
1469 equal to the difference between the amount paid for the security
1470 and the amount received by the purchaser on the sale of the
1471 security, together, in either case, with interest on the full
1472 amount paid for the security by the purchaser at the legal rate,
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1473 pursuant to s. 55.03, for the period from the date of payment by
1474 the purchaser to the date of repayment, less the amount of any
1475 income received by the purchaser on the security.
1476 Section 18. Section 517.315, Florida Statutes, is amended
1477 to read:
1478 517.315 Fees.—All fees of any nature collected by the
1479 office pursuant to this chapter shall be disbursed as follows:
1480 (1) The office shall transfer the amount of fees required
1481 to be deposited into the Securities Guaranty Fund pursuant to s.
1482 517.131.;
1483 (2) After the transfer required in subsection (1) , the
1484 office shall transfer the $50 assessment fee collected from each
1485 associated person under s. 517.12(9) and (10) s. 517.12(10) and
1486 (11) and 30.44 percent of the $100 assessment fee paid by
1487 dealers and investment advisers advisors for each office in the
1488 state under s. 517.12(9) and (10) s. 517.12(10) and (11) to the
1489 Regulatory Trust Fund.; and
1490 (3) All remaining fees shall be deposited into the General
1491 Revenue Fund.
1492 Section 19. Subsection (5) of section 626.9911, Florida
1493 Statutes, is amended to read:
1494 626.9911 Definitions.—As used in this act, the term:
1495 (5) "Life expectancy provider" means a person who
1496 determines, or holds himself or herself out as determining, life
1497 expectancies or mortality ratings used to determine life
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1498 expectancies:
1499 (a) On behalf of a viatical settlement provider, viatical
1500 settlement broker, life agent, or person engaged in the business
1501 of viatical settlements;
1502 (b) In connection with a viatical settlement investment as
1503 defined in s. 517.021, pursuant to s. 517.021(24); or
1504 (c) On residents of this state in connection with a
1505 viatical settlement contract or viatical settlement investment.
1506 Section 20. Subsection (6) of section 744.351, Florida
1507 Statutes, is amended to read:
1508 744.351 Bond of guardian.—
1509 (6) When it is expedient in the judgment of any court
1510 having jurisdiction of any guardianship property, because the
1511 size of the bond required of the guardian is burdensome, or for
1512 other cause, the court may order, in lieu of a bond or in
1513 addition to a lesser bond, that the guardian place all or part
1514 of the property of the ward in a designated financial
1515 institution under the same conditions and limitations as are
1516 contained in s. 69.031. A designated financial institution shall
1517 also include a dealer, as defined in s. 517.021 s. 517.021(6),
1518 if the dealer is a member of the Security Investment Protection
1519 Corporation and is doing business in the state.
1520 Section 21. Section 517.1205, Florida Statutes, is amended
1521 to read:
1522 517.1205 Registration of associated persons specific as to
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1523 securities dealer, investment adviser, or federal covered
1524 adviser identified at time of registration approval.—Inasmuch as
1525 this chapter is intended to protect investors in securities
1526 offerings and other investment transactions regulated by that
1527 chapter, its provisions are to be construed to require full and
1528 fair disclosure of all, but only, those matters material to the
1529 investor's evaluation of the offering or other transaction. It
1530 should, furthermore, be construed to impose the standards
1531 provided by law on all those seeking to participate in the
1532 state's securities industry through registration as a securities
1533 dealer, investment adviser, or associated person. To this end,
1534 it is declared to be the intent of the Legislature that the
1535 registration of associated persons required by law is specific
1536 to the securities dealer, investment adviser, or federal covered
1537 adviser identified at the time such registration is approved.
1538 Notwithstanding any interpretation of law to the contrary, the
1539 historical practice of the Department of Banking and Finance,
1540 reflected in its rules, that requires a new application for
1541 registration from a previously registered associated person when
1542 that person seeks to be associated with a new securities dealer
1543 or investment adviser is hereby ratified and approved as
1544 consistent with legislative intent. It is, finally, declared to
1545 be the intent of the Legislature that while approval of an
1546 application for registration of a securities dealer, investment
1547 adviser, or associated person requires a finding of compliance
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1548 with the applicable registration provisions of this chapter and
1549 applicable rules the applicant's good repute and character, such
1550 finding is precluded by a determination that the applicant may
1551 be denied registration on grounds provided by law.
1552 Section 22. This act shall take effect October 1, 2023.
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INSURANCE & BANKING SUBCOMMITTEE
HB 253 by Rep. Barnaby
Relating to Regulation of Securities
AMENDMENT SUMMARY
March 21, 2023
Amendment 1 by Rep. Barnaby (Line 76): The amendment:
• Removes a proposed change to the definition of “control” and reverts this to the statutory
definition.
• Removes a proposed definition of the term “control person” from the bill.
• Regarding the terms “natural person” and “individual” the wording is reverted to the
language used in the bill as originally filed.
• Reverts certain continuing education-related language to the bill as originally filed.
• Provides technical and grammatical corrections, as needed.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 253 (2023)
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 Barnaby offered the following:
4
5 Amendment
6 Remove lines 76-1308 and insert:
7 (a)1. With respect to a dealer, a natural person who is
8 employed, appointed, or authorized by a dealer and who
9 represents the dealer in effecting or attempting to effect
10 purchases or sales of securities.
11 2. The term does not include the following:
12 a. A dealer.
13 b. A partner, officer, or director of a dealer or a person
14 having a similar status or performing similar functions as a
15 dealer, unless such person is specified in subparagraph 1.
16 c. A dealer's employee whose function is only clerical or
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17 ministerial.
18 d. A person whose transactions in this state are limited
19 to those transactions described in s. 15(i)(3) of the Securities
20 Exchange Act of 1934, as amended.
21 (b)1. With respect to an investment adviser, a natural
22 person, including, but not limited to, a partner, officer,
23 director, or branch manager, or a person occupying a similar
24 status or performing similar functions, who:
25 a. Is employed by or associated with, or is subject to the
26 supervision and control of, an investment adviser registered or
27 required to be registered under this chapter; and
28 b. Does any of the following:
29 (I) Makes any recommendation or otherwise gives investment
30 advice regarding securities.
31 (II) Manages accounts or portfolios of clients.
32 (III) Determines which recommendation or advice regarding
33 securities should be given.
34 (IV) Receives compensation to solicit, offer, or negotiate
35 for the sale of investment advisory services.
36 (V) Supervises employees who perform a function under this
37 sub-subparagraph.
38 2. The term does not include the following:
39 a. An investment adviser.
40 b. An employee whose function is only clerical or
41 ministerial
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42 or investment adviser, any of the following:
43 1. Any partner, officer, director, or branch manager of a
44 dealer or investment adviser or any person occupying a similar
45 status or performing similar functions;
46 2. Any natural person directly or indirectly controlling
47 or controlled by such dealer or investment adviser, other than
48 an employee whose function is only clerical or mini sterial; or
49 3. Any natural person, other than a dealer, employed,
50 appointed, or authorized by a dealer, investment adviser, or
51 issuer to sell securities in any manner or act as an investment
52 adviser as defined in this section.
53
54 The partners of a partnership and the executive officers of a
55 corporation or other association registered as a dealer, and any
56 person whose transactions in this state are limited to those
57 transactions described in s. 15(h)(2) of the Securities Exchange
58 Act of 1934, are not "associated persons" within the meaning of
59 this definition.
60 (c)(b) With respect to a federal covered adviser, a
61 natural any person who is an investment adviser representative
62 and who has a place of business in this state, as such terms are
63 defined in Rule 203A-3 of the Securities and Exchange Commission
64 adopted under the Investment Advisers Act of 1940, as amended.
65 (4)(3) "Boiler room" means an enterprise in which two or
66 more persons engage in telephone communications with members of
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67 the public using two or more telephones at one location, or at
68 more than one location in a common scheme or enterprise.
69 (5)(4) "Branch office" means any location in this state of
70 a dealer or investment adviser at which one or more associated
71 persons regularly conduct the business of rendering investment
72 advice or effecting any transactions in, or inducing or
73 attempting to induce the purchase or sale of, any security or
74 any location that is held out as such. The commission may adopt
75 by rule exceptions to this definition for dealers in order to
76 maintain consistency with the definition of a branch office used
77 by self-regulatory organizations authorized by the Securities
78 and Exchange Commission, including, but not limited to, the
79 Financial Industry Regulatory Authority. The commission may
80 adopt by rule exceptions to this definition for investment
81 advisers.
82 (6)(5) "Control," including the terms "controlling,"
83 "controlled by," and "under common control with," means the
84 possession, directly or indirectly, of the power to direct or
85 cause the direction of the management or policies of a person,
86 whether through the ownership of voting securities, by contra ct,
87 or otherwise.
88 (7)(6)(a) "Dealer" includes, unless otherwise specified,
89 any of the following:
90 1. Any person, other than an associated person registered
91 under this chapter, who engages, either for all or part of her
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92 or his time, directly or indirectly, as broker or principal in
93 the business of offering, buying, selling, or otherwise dealing
94 or trading in securities issued by another person.
95 2. Any issuer who through persons directly compensated or
96 controlled by the issuer engages, either for all or part of her
97 or his time, directly or indirectly, in the business of offering
98 or selling securities which are issued or are proposed to be
99 issued by the issuer. a person, other than an associated person
100 of a dealer, that engages, for all or part of the per son's time,
101 directly or indirectly, as agent or principal in the business of
102 offering, buying, selling, or otherwise dealing or trading in
103 securities issued by another person.
104 (b) The term "dealer" does not include the following:
105 (a) A licensed practicing attorney who renders or performs
106 any such services in connection with the regular practice of the
107 attorney's profession.
108 (b) A bank authorized to do business in this state, except
109 nonbank subsidiaries of a bank.
110 (c) A trust company having trust powers that it is
111 authorized to exercise in this state, which renders or performs
112 services in a fiduciary capacity incidental to the exercise of
113 its trust powers.
114 (d) A wholesaler selling exclusively to dealers.
115 (e) A person buying and selling for the person's own
116 account exclusively through a registered dealer or stock
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117 exchange.
118 (f) An issuer.
119 (g) A natural person representing an issuer in the
120 purchase, sale, or distribution of the issuer's own securities
121 if such person:
122 1. Is an officer, a director, a limited liability company
123 manager or managing member, or a bona fide employee of the
124 issuer;
125 2. Has not participated in the distribution or sale of
126 securities for any issuer for which such person was, within the
127 preceding 12 months, an officer, a director, a limited liability
128 company manager or managing member, or a bona fide employee;
129 3. Primarily performs, or is intended to perform at the
130 end of the distribution, substantial duties for, or on behalf
131 of, the issuer other than in connection with transactions in
132 securities; and
133 4. Does not receive a commission, compensation, or other
134 consideration for the completed sale of the issuer's securities
135 apart from the compensation received for regular duties to the
136 issuer.
137 1. Any licensed practicing attorney who renders or
138 performs any of such services in connection with the regular
139 practice of her or his profession;
140 2. Any bank authorized to do business in this state,
141 except nonbank subsidiaries of a bank;
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142 3. Any trust company having trust powers which it is
143 authorized to exercise in this state, which renders or performs
144 services in a fiduciary capacity incidental to the exercise of
145 its trust powers;
146 4. Any wholesaler selling exclusively to dealers;
147 5. Any person buying and selling for her or his own
148 account exclusively through a registered dealer or stock
149 exchange; or
150 6. Pursuant to s. 517.061(11), any person associated with
151 an issuer of securities if such person is a bona fide employee
152 of the issuer who has not participated in the distributi on or
153 sale of any securities within the preceding 12 months and who
154 primarily performs, or is intended to perform at the end of the
155 distribution, substantial duties for, or on behalf of, the
156 issuer other than in connection with transactions in securities.
157 (8)(7) "Commission" means the Financial Services
158 Commission.
159 (9)(8) "Office" means the Office of Financial Regulation
160 of the commission.
161 (10)(9) "Federal covered adviser" means a person that who
162 is registered or required to be registered under s. 203 of the
163 Investment Advisers Act of 1940, as amended. The term "federal
164 covered adviser" does not include any person that who is
165 excluded from the definition of investment adviser under
166 subparagraphs (18)(b)1.-8. (14)(b)1.-8.
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167 (11)(10) "Federal covered security" means a any security
168 that is a covered security under s. 18(b) of the Securities Act
169 of 1933, as amended, or rules and regulations adopted
170 thereunder.
171 (12)(11) "Guarantor" means a person that who agrees in
172 writing, or that who holds itself out to the public as agreeing,
173 to pay the indebtedness of another when due, including, without
174 limitation, payments of principal and interest on a bond,
175 debenture, note, or other evidence of indebtedness, without
176 resort by the holder to any other obligor, whether or not such
177 writing expressly states that the person signing is signing as a
178 guarantor. The obligation of a guarantor hereunder shall be a
179 continuing, absolute, and unconditional guaranty of payment,
180 without regard to the validity, regularity, or enforceability of
181 the underlying indebtedness.
182 (13)(12) "Guaranty" means an agreement in a writing in
183 which one party either agrees, or holds itself out to the public
184 as agreeing, to pay the indebtedness of another when due,
185 including, without limitation, payments of principal and
186 interest on a bond, debenture, note, or other evidence of
187 indebtedness, without resort by the holder to any other obligor,
188 whether or not such writing expressly states that the person
189 signing is signing as a guarantor. An agreement that is not
190 specifically denominated as a guaranty shall nevertheless
191 constitute a guaranty if the holder of the underlying
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192 indebtedness or the holder's her or his representative or
193 trustee has the right to sue to enforce the guarantor's
194 obligations under the guaranty. Words of guaranty or equivalent
195 words that which otherwise do not specify guaranty of payment
196 create a presumption that payment, rather than collection, is
197 guaranteed by the guarantor. Any guaranty in writing is
198 enforceable notwithstanding any statute of frauds.
199 (14)(13) "Intermediary" means a natural person residing in
200 this the state or a corporation, trust, partnership, limited
201 liability company, association, or other legal entity registered
202 with the Secretary of State to do business in this the state,
203 which facilitates through its website the offer or sale of
204 securities of an issuer with a principal place of business in
205 this state under s. 517.0611.
206 (15)(a)(14)(a) "Investment adviser" means a includes any
207 person, other than an associated person of an investment adviser
208 or a federal covered adviser, that who receives compensation,
209 directly or indirectly, and engages for all or part of the
210 person's her or his time, directly or indirectly, or through
211 publications or writings, in the business of advising others as
212 to the value of securities or as to the advisability of
213 investments in, purchasing of, or selling of securities , except
214 a dealer whose performance of these services is solely
215 incidental to the conduct of her or his business as a dealer and
216 who receives no special compensation for such services.
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217 (b) The term "investment adviser" does not include the
218 following:
219 1. A dealer or associated person of a dealer whose
220 performance of services in paragraph (a) is solely incidental to
221 the conduct of the dealer's or associated person's business as a
222 dealer and who does not receive special compensation for those
223 services.
224 2. A Any licensed practicing attorney or certified public
225 accountant whose performance of such services is solely
226 incidental to the practice of the attorney's or accountant's her
227 or his profession.;
228 2. Any licensed certified public accountant whose
229 performance of such services is solely incidental to the
230 practice of her or his profession;
231 3. A Any bank authorized to do business in this state.;
232 4. A Any bank holding company as defined in the Bank
233 Holding Company Act of 1956, as amended, authorized to do
234 business in this state.;
235 5. A Any trust company having trust powers, as defined in
236 s. 658.12, which it is authorized to exercise in this the state,
237 which trust company renders or performs investment advisory
238 services in a fiduciary capacity incidental to the exercise of
239 its trust powers.;
240 6. A Any person that who renders investment advice
241 exclusively to insurance or investment companies.;
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242 7. A Any person that who does not hold itself herself or
243 himself out to the general public as an investment adviser and
244 has no more than 15 clients within 12 consecutive months in this
245 state.;
246 8. A Any person whose transactions in this state are
247 limited to those transactions described in s. 222(d) of the
248 Investment Advisers Act of 1940, as amended. Those clients
249 listed in subparagraph 6. may not be included when determining
250 the number of clients of an investment adviser for purposes of
251 s. 222(d) of the Investment Advisers Act of 1940, as amended.;
252 or
253 9. A federal covered adviser.
254 (16)(15) "Issuer" means a any person that who proposes to
255 issue, has issued, or shall hereafter issue any security. A Any
256 person that who acts as a promoter for and on behalf of a
257 corporation, trust, or unincorporated association or
258 partnership, limited liability company, association, or other
259 legal entity of any kind to be formed shall be deemed an issuer.
260 (17)(16) "Offer to sell," "offer for sale," or "offer"
261 means an any attempt or offer to dispose of, or solicitation of
262 an offer to buy, a security or interest in a security, or an
263 investment or interest in an investment, for value.
264 (18)(17) "Predecessor" means a person whose the major
265 portion of whose assets has have been acquired directly or
266 indirectly by an issuer.
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267 (19)(18) "Principal" means an executive officer of a
268 corporation, partner of a partnership, sole proprietor of a sole
269 proprietorship, trustee of a trust, or any other person with
270 similar supervisory functions with respect to any organization,
271 whether incorporated or unincorporated.
272 (20)(19) "Promoter" includes the following:
273 (a) A Any person that who, acting alone or in conjunction
274 with one or more other persons, directly or indirectly takes the
275 initiative in founding and organizing the business or enterprise
276 of an issuer.
277 (b) A Any person that who, in connection with the founding
278 or organizing of the business or enterprise of an issuer,
279 directly or indirectly receives in consideration of services or
280 property, or both services and property, 10 percent or more of
281 any class of securities of the issuer or 10 percent or more of
282 the proceeds from the sale of any class of securities. However,
283 a person that who receives such securities or proceeds either
284 solely as underwriting commissions or solely in connection with
285 property shall not be deemed a promoter if such person does not
286 otherwise take part in founding and organizing the enterprise.
287 (21)(20) "Qualified institutional buyer" means a any
288 qualified institutional buyer, as defined in United States
289 Securities and Exchange Commission Rule 144A, 17 C.F.R. s.
290 230.144A(a), under the Securities Act of 1933, as amended, or
291 any foreign buyer that satisfies the minimum financ ial
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292 requirements set forth in such rule.
293 (22)(21) "Sale" or "sell" means a any contract of sale or
294 disposition of an any investment, security, or interest in a
295 security, for value. With respect to a security or interest in a
296 security, the term defined in this subsection does not include
297 preliminary negotiations or agreements between an issuer or any
298 person on whose behalf an offering is to be made and any
299 underwriter or among underwriters who are or are to be in
300 privity of contract with an issuer. Any security given or
301 delivered with, or as a bonus on account of, any purchase of
302 securities or any other thing shall be conclusively presumed to
303 constitute a part of the subject of such purchase and to have
304 been offered and sold for value. Every sale or offer of a
305 warrant or right to purchase or subscribe to another security of
306 the same or another issuer, as well as every sale or offer of a
307 security which gives the holder a present or future right or
308 privilege to convert into another security or another issuer, is
309 considered to include an offer of the other security.
310 (23)(22) "Security" includes any of the following:
311 (a) A note.
312 (b) A stock.
313 (c) A treasury stock.
314 (d) A bond.
315 (e) A debenture.
316 (f) An evidence of indebtedness.
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317 (g) A certificate of deposit.
318 (h) A certificate of deposit for a security.
319 (i) A certificate of interest or participation.
320 (j) A whiskey warehouse receipt or other commodity
321 warehouse receipt.
322 (k) A certificate of interest in a profit-sharing
323 agreement or the right to participate therein.
324 (l) A certificate of interest in an oil, gas, petroleum,
325 mineral, or mining title or lease or the right to participate
326 therein.
327 (m) A collateral trust certificate.
328 (n) A reorganization certificate.
329 (o) A preorganization subscription.
330 (p) A Any transferable share.
331 (q) An investment contract.
332 (r) A beneficial interest in title to property, profits,
333 or earnings.
334 (s) An interest in or under a profit-sharing or
335 participation agreement or scheme.
336 (t) An Any option contract that which entitles the holder
337 to purchase or sell a given amount of the underlying security at
338 a fixed price within a specified period of time.
339 (u) Any other instrument commonly known as a security,
340 including an interim or temporary bond, debenture, note, or
341 certificate.
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342 (v) A Any receipt for a security, or for subscription to a
343 security, or a any right to subscribe to or purchase any
344 security.
345 (w) A viatical settlement investment.
346 (24)(23) "Underwriter" means a person that who has
347 purchased from an issuer or an affiliate of an issuer with a
348 view to, or offers or sells for an issuer or an affiliate of an
349 issuer in connection with, the distribution of any security, or
350 participates or has a direct or indirect participation in any
351 such undertaking, or participates or has a participation in the
352 direct or indirect underwriting of any such undertaking; except
353 that a person is shall be presumed not to be an underwriter with
354 respect to any security which it she or he has owned
355 beneficially for at least 1 year; and, further, a dealer is
356 shall not be considered an underwriter with respect to any
357 securities which do not represent part of an unsold allotment to
358 or subscription by the dealer as a participant in the
359 distribution of such securities by the issuer or an affiliate of
360 the issuer; and, further, in the case of securities acquired on
361 the conversion of another security without payment of additional
362 consideration, the length of time such securities have been
363 beneficially owned by a person includes the period during which
364 the convertible security was beneficially owned and the period
365 during which the security acquired on conversion has been
366 beneficially owned.
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367 (25)(24) "Viatical settlement investment" means an
368 agreement for the purchase, sale, assignment, transfer, devise,
369 or bequest of all or any portion of a legal or equitable
370 interest in a viaticated policy as defined in chapter 626.
371 Section 2. Paragraph (d) of subsection (3) of section
372 517.072, Florida Statutes, is amended, and subsection (4) is
373 added to that section, to read:
374 517.072 Viatical settlement investments.—
375 (3) The registration provisions of ss. 517.07 and 517.12
376 do not apply to any of the following transactions in viatical
377 settlement investments; however, such transactions in viatical
378 settlement investments are subject to the provisions of ss.
379 517.301, 517.311, and 517.312:
380 (d) The transfer or assignment of a viaticated policy to a
381 bank, trust company, savings institution, insurance company,
382 dealer, investment company as defined in the Investment Company
383 Act of 1940, as amended, pension or profit-sharing trust, or
384 qualified institutional buyer as defined in United States
385 Securities and Exchange Commission Rule 144A, 17 C.F.R. s.
386 230.144A(a), or to an accredited investor as defined by Rule 501
387 of Regulation D of the Securities Act Rules, provided such
388 transfer or assignment is not for the direct or indirect
389 promotion of any scheme or enterprise with the intent of
390 violating or evading any provision of this chapter.
391 (4) The commission may establish by rule requirements and
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392 standards for disclosures to purchasers of viatical settlement
393 investments and recordkeeping requirements for sellers of
394 viatical settlement investments.
395 Section 3. Paragraphs (a), (g), and (n) of subsection (3)
396 and subsections (6) and (8) of section 517.081, Florida
397 Statutes, are amended to read:
398 517.081 Registration procedure.—
399 (3) The office may require the applicant to submit to the
400 office the following information concerning the issuer and such
401 other relevant information as the office may in its judgment
402 deem necessary to enable it to ascertain whether such securities
403 shall be registered pursuant to the provisions of this section:
404 (a) The names and addresses of:
405 1. All the directors, trustees, and officers, if the
406 issuer is be a corporation, association, or trust.
407 2. All the managers or managing members, if the issuer is
408 a limited liability company.
409 3. ; of All the partners, if the issuer is be a
410 partnership.
411 4. ; or of The issuer, if the issuer is a sole
412 proprietorship or natural person be an individual.
413 (g)1. A specimen copy of the securities certificate, if
414 applicable, security and a copy of any circular, prospectus,
415 advertisement, or other description of such securities.
416 2. The commission shall adopt a form for a simplified
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417 offering circular to be used solely by corporations to register,
418 under this section, securities of the corporation that are sold
419 in offerings in which the aggregate offering price in any
420 consecutive 12-month period does not exceed the amount provided
421 in s. 3(b) of the Securities Act of 1933, as amended. The
422 following issuers shall not be eligible to submit a simplified
423 offering circular adopted pursuant to this subparagraph:
424 a. An issuer seeking to register securities for resale by
425 persons other than the issuer.
426 b. An issuer that who is subject to any of the
427 disqualifications described in 17 C.F.R. s. 230.262, adopted
428 pursuant to the Securities Act of 1933, as amended, or that who
429 has been or is engaged or is about to engage in an activity that
430 would be grounds for denial, revocation, or suspension under s.
431 517.111. For purposes of this subparagraph, an issuer includes
432 an issuer's director, officer, manager or managing member, or
433 equity owner shareholder who owns at least 10 percent of the
434 ownership interests shares of the issuer, promoter, or selling
435 agent of the securities to be offered or any officer, director,
436 or partner of such selling agent.
437 c. An issuer that who is a development-stage company that
438 either has no specific business plan or purpose or has indicated
439 that its business plan is to merge with an unidentified company
440 or companies.
441 d. An issuer of offerings in which the specific business
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442 or properties cannot be described.
443 e. Any issuer the office determines is ineligible because
444 if the form does would not provide full and fair disclosure of
445 material information for the type of offering to be registered
446 by the issuer.
447 f. Any issuer that corporation which has failed to provide
448 the office the reports required for a previous offering
449 registered pursuant to this subparagraph.
450
451 As a condition precedent to qualifying for use of the simplified
452 offering circular, an issuer a corporation shall agree to
453 provide the office with an annual financial report containing a
454 balance sheet as of the end of the issuer's fiscal year and a
455 statement of income for such year, prepared in accordance with
456 United States generally accepted accounting princip les and
457 accompanied by an independent accountant's report. If the issuer
458 has more than 100 security holders at the end of a fiscal year,
459 the financial statements must be audited. Annual financial
460 reports must be filed with the office within 90 days after t he
461 close of the issuer's fiscal year for each of the first 5 years
462 following the effective date of the registration.
463 (n) If the issuer is a corporation, there shall be filed
464 with the application a copy of its articles of incorporation
465 with all amendments and of its existing bylaws, if not already
466 on file in the office. If the issuer is a limited liability
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467 company, there shall be filed with the application a copy of the
468 articles of organization with all the amendments and a copy of
469 the company's operating agreement, if not already on file with
470 the office. If the issuer is a trustee, there shall be filed
471 with the application a copy of all instruments by which the
472 trust is created or declared and in which it is accepted and
473 acknowledged. If the issuer is a partnership, unincorporated
474 association, joint-stock company, or any other form of
475 organization whatsoever, there shall be filed with the
476 application a copy of its articles of partnership or association
477 and all other papers pertaining to its organization, if not
478 already on file in the office.
479 (6) An issuer filing an application under this section
480 shall, at the time of filing, pay the office a nonreturnable fee
481 of $1,000 per application for each offering that exceeds the
482 amount provided in s. 3(b) of the Securities Act of 1933, as
483 amended, or $200 per application for each offering that does not
484 exceed the amount provided in s. 3(b) of the Securities Act of
485 1933, as amended.
486 (8) The office shall deem an application to register
487 securities filed with the office abandoned if the issuer or any
488 person acting on behalf of the issuer has failed to timely
489 complete an application specified by commission rule. The
490 commission may by rule establish requirements and standards for:
491 (a) Disclosures to purchasers of viatical settlement
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492 investments.
493 (b) Recordkeeping requirements for sellers of viatical
494 settlement investments.
495 Section 4. Section 517.082, Florida Statutes, is amended
496 to read:
497 517.082 Notification Registration by notification; federal
498 registration statements.—
499 (1) Except as provided in subsection (3), Securities
500 offered or sold pursuant to a registration statement filed under
501 the Securities Act of 1933, as amended, are shall be entitled to
502 registration by notification in the manner provided in
503 subsection (2), provided that before prior to the offer or sale
504 the registration statement has become effective.
505 (2) An application for registration by notification shall
506 be filed with the office, shall contain the following
507 information, and shall be accompanied by all of the following:
508 (a) An application to sell executed by the issuer, any
509 person on whose behalf the offering is made, a dealer registered
510 under this chapter, or any duly authorized agent of any such
511 person, setting forth the name and address of the applicant, the
512 name and address of the issuer, and the title of the securities
513 to be offered and sold.;
514 (b) Copies of such documents filed with the Securities and
515 Exchange Commission as the Financial Services Commission may by
516 rule require.;
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517 (c) An irrevocable written consent to service as required
518 by s. 517.101.; and
519 (d) A nonreturnable fee of $1,000 per application.
520
521 A registration under this section becomes effective when the
522 federal registration statement becomes effective or as of the
523 date the application is filed with the office, whichever is
524 later, provided that, in addition to the items listed in
525 paragraphs (a)-(d), the office has received written notification
526 of effective registration under the Securities Act of 1933 , as
527 amended, or the Investment Company Act of 1940, as amended,
528 within 10 business days after from the date federal registration
529 is granted. Failure to provide all the information required by
530 this subsection to the office within 60 days after of the date
531 the registration statement becomes effective with the Securities
532 and Exchange Commission shall be a violation of this chapter.
533 (3) Except for units of limited partnership interests or
534 such other securities as the commission describes by rule as
535 exempt from this subsection due to high investment quality, the
536 provisions of this section may not be used to register
537 securities if the offering price at the time of effectiveness
538 with the Securities and Exchange Commission is $5 or less per
539 share, unless such securities are listed or designated, or
540 approved for listing or designation upon notice of issuance, on
541 a stock exchange registered pursuant to the Securities Exchange
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542 Act of 1934, as amended, or on the National Association of
543 Securities Dealers Automated Quotation (NASDAQ) System, or
544 unless such securities are of the same issuer and of senior or
545 substantially equal rank to securities so listed or designated.
546 (4) In lieu of filing with the office the application,
547 fees, and documents for registration required by subsection (2),
548 the commission may establish, by rule, procedures for depositing
549 fees and filing documents by electronic means, provided such
550 procedures provide the office with the information and data
551 required by this section.
552 (5) If the Securities and Exchange Commission has not
553 declared effective the applicant's federal registration
554 statement within 180 days after the applicant's filing with the
555 office of an application for registration by notification, the
556 office must deem the application abandoned.
557 Section 5. Subsections (1) through (4) of section 517.111,
558 Florida Statutes, are amended to read:
559 517.111 Revocation or denial of registration of
560 securities.—
561 (1) The office may revoke or suspend the registration of
562 any security, or may deny any application to register
563 securities, if, upon examination or investigation into the
564 affairs of the issuer of such security, the office determines it
565 shall appear that:
566 (a) The issuer cannot pay its debts as they become due in
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567 the usual course of business is insolvent;
568 (b) The issuer or any officer, director, manager or
569 managing member, or control person of the issuer has violated
570 any provision of this chapter or any rule made hereunder or any
571 order of the office of which such issuer has notice;
572 (c) The issuer or any officer, director, manager or
573 managing member, or control person of the issuer has been or is
574 engaged or is about to engage in fraudulent transactions;
575 (d) The issuer or any officer, director, manager or
576 managing member, or control person of the issuer has been found
577 guilty of a fraudulent act in connection with any sale of
578 securities, has engaged, is engaged, or is about to engage, in
579 making a fictitious sale or purchase of any security, or in any
580 practice or sale of any security which is fraudulent or a
581 violation of any law;
582 (e) The issuer or any officer, director, manager or
583 managing member, or control person of the issuer has had a final
584 judgment entered against such issuer or person in a civil action
585 on the grounds of fraud, embezzlement, misrepresentation, or
586 deceit;
587 (f) The issuer or any officer, director, manager or
588 managing member, or control person of the issuer has engaged in
589 any action that would be grounds for revocation, denial, or
590 suspension under s. 517.161(1) demonstrated any evidence of
591 unworthiness;
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592 (g) The issuer or any officer, director, manager or
593 managing member, or control person of the issuer is in any other
594 way dishonest or has made any fraudulent representations or
595 failed to disclose any material information in any prospectus o r
596 in any circular or other literature that has been distributed
597 concerning the issuer or its securities;
598 (h) The security registered or sought to be registered is
599 the subject of an injunction entered by a court of competent
600 jurisdiction or is the subject of an administrative stop-order
601 or similar order prohibiting the offer or sale of the security;
602 or
603 (i) For any security for which registration has been
604 applied pursuant to s. 517.081, the terms of the offer or sale
605 of such securities would not be fair, just, or equitable; or
606 (j) The issuer or any person acting on behalf of the
607 issuer has failed to timely complete any application for
608 registration filed with the office pursuant to the provisions of
609 s. 517.081 or s. 517.082 or any rule adopted under such
610 sections.
611 (2) In making such examination or investigation, the office
612 shall have access to and may compel the production of all the
613 books and papers of such issuer and may administer oaths to and
614 examine the officers of such issuer or any other person
615 connected therewith as to its business and affairs and may also
616 require a balance sheet exhibiting the assets and liabilities of
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617 any such issuer or its income statement, or both, to be
618 certified to by a public accountant either of this state or of
619 any other state where the issuer's business is located. Whenever
620 the office deems it necessary, it may also require such balance
621 sheet or income statement, or both, to be made more specific in
622 such particulars as the office may require.
623 (3)(2) If any issuer refuses shall refuse to permit an
624 examination or investigation to be made by the office, it shall
625 be proper ground for revocation of registration.
626 (4)(3) If the office deems it necessary, it may enter an
627 order suspending the right to sell securities pending any
628 examination or investigation, provided that the order shall
629 state the office's grounds for taking such action.
630 (5)(4) Notice of the entry of such order shall be given
631 personally or by mail, personally, by telephone confirmed in
632 writing, or by telegraph to the issuer. Before such order is
633 made final, the issuer applying for registration shall, on
634 application, be entitled to a hearing.
635 Section 6. Subsections (1), (2), and (3), paragraph (b) of
636 subsection (6), subsections (7) and (11), paragraph (b) of
637 subsection (15), and subsections (20) and (21) of section
638 517.12, Florida Statutes, are amended to read:
639 517.12 Registration of dealers, associated persons,
640 intermediaries, and investment advisers.—
641 (1) No dealer or associated person shall No dealer,
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642 associated person, or issuer of securities shall sell or offer
643 for sale any securities in or from offices in this state , or
644 sell securities to persons in this state from offices outside
645 this state, by mail or otherwise, unless the person is has been
646 registered with the office as a dealer or as an associated
647 person of a dealer pursuant to the provisions of this section.
648 The office shall not register any person as an associated person
649 of a dealer unless the dealer with which the applicant seeks
650 registration is lawfully registered with the office pursuant to
651 this chapter.
652 (2) The registration requirements of this section do not
653 apply to the issuers of securities exempted by s. 517.051(1) -(8)
654 and (10).
655 (3) Except as otherwise provided in s. 517.061(11 )(a)4.,
656 (13), (16), (17), or (19), The registration requirements of this
657 section do not apply in a transaction exempted by s. 517.061(1)-
658 (10) and (12), s. 517.061(1)-(12), (14), and (15).
659 (5)(6) A dealer, associated person, or investment adviser,
660 in order to obtain registration, must file with the office a
661 written application, on a form which the commission may by rule
662 prescribe. The commission may establish, by rule, procedures for
663 depositing fees and filing documents by electronic means
664 provided such procedures provide the office with the information
665 and data required by this section. Each dealer or investment
666 adviser must also file an irrevocable written consent to service
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667 of civil process similar to that provided for in s. 517.101. The
668 application shall contain such information as the commission or
669 office may require concerning such matters as:
670 (b) The applicant's form and place of organization; and,
671 if the applicant is:
672 1. A corporation, a copy of its articles of incorporation
673 and amendments to the articles of incorporation;
674 2. A limited liability company, a copy of its articles of
675 organization with amendments to its articles; or
676 3. , if A partnership, a copy of the partnership
677 agreement.
678 (6)(7) The application must also contain such information
679 as the commission or office may require about the applicant; any
680 member, principal, or director of the applicant or any person
681 having a similar status or performing similar functions; any
682 person directly or indirectly controlling the applicant; or any
683 employee of a dealer or of an investment adviser rendering
684 investment advisory services. Each applicant and any direct
685 owners, principals, or indirect owners that are required to be
686 reported on Form BD or Form ADV pursuant to subsection (14) (15)
687 shall submit fingerprints for live-scan processing in accordance
688 with rules adopted by the commission. The fingerprints may be
689 submitted through a third-party vendor authorized by the
690 Department of Law Enforcement to provide live-scan
691 fingerprinting. The costs of fingerprint processing shall be
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692 borne by the person subject to the background check. The
693 Department of Law Enforcement shall conduct a state criminal
694 history background check, and a federal criminal history
695 background check must be conducted through the Fede ral Bureau of
696 Investigation. The office shall review the results of the state
697 and federal criminal history background checks and determine
698 whether the applicant meets licensure requirements. The
699 commission may waive, by rule, the requirement that applicant s,
700 including any direct owners, principals, or indirect owners that
701 are required to be reported on Form BD or Form ADV pursuant to
702 subsection (14) (15), submit fingerprints or the requirement
703 that such fingerprints be processed by the Department of Law
704 Enforcement or the Federal Bureau of Investigation. The
705 commission or office may require information about any such
706 applicant or person concerning such matters as:
707 (a) The applicant's or person's His or her full name, and
708 any other names by which the applicant or person he or she may
709 have been known, and the applicant's or person's his or her age,
710 social security number, photograph, qualifications, and
711 educational and business history.
712 (b) Any injunction or administrative order by a state or
713 federal agency, national securities exchange, or national
714 securities association involving a security or any aspect of a
715 dealer's or investment adviser's regulated the securities
716 business and any injunction or administrative order by a state
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717 or federal agency regulating banking, insurance, finance, or
718 small loan companies, real estate, mortgage brokers, or other
719 related or similar industries, which injunctions or
720 administrative orders relate to such person.
721 (c) The applicant's or person's His or her conviction of,
722 or plea of nolo contendere to, a criminal offense or his or her
723 commission of any acts which would be grounds for refusal of an
724 application under s. 517.161.
725 (d) The names and addresses of other persons of whom the
726 office may inquire as to his or her character, reputation, and
727 financial responsibility.
728 (10)(a)(11)(a) If the office finds that the applicant is
729 of good repute and character and has complied with the
730 applicable registration provisions of this chapter and the rules
731 made pursuant hereto, it shall register the applicant unless the
732 applicant is otherwise disqualified for registration pursuant to
733 law. The registration of each dealer, investment adviser, and
734 associated person expires on December 31 of the year the
735 registration became effective unless the registrant has renewed
736 its his or her registration on or before that date. Registration
737 may be renewed by furnishing such information as the commission
738 may require, together with payment of the fee required in
739 paragraph (9)(a) (10)(a) for dealers, investment advisers, or
740 associated persons and the payment of any amount lawfully due
741 and owing to the office pursuant to any order of the office or
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742 pursuant to any agreement with the office. Any dealer,
743 investment adviser, or associated person who has not renewed a
744 registration by the time the current registration expires may
745 request reinstatement of such registration by filing with the
746 office, on or before January 31 of the year following the year
747 of expiration, such information as may be required by the
748 commission, together with payment of the fee required in
749 paragraph (9)(a) (10)(a) for dealers, investment advisers, or
750 associated persons and a late fee equal to the amount of such
751 fee. Any reinstatement of registration granted by the office
752 during the month of January shall be deemed effective
753 retroactive to January 1 of that year.
754 (b) The office shall waive the $50 assessment fee for an
755 associated person required by paragraph (9)(a) (10)(a) for a
756 registrant renewing his or her registration who:
757 1. Is an active duty member of the United States Armed
758 Forces or the spouse of such member;
759 2. Is or was a member of the United States Armed Forces
760 and served on active duty within the 2 years preceding the
761 expiration date of the registration pursuant to paragraph (a).
762 To qualify for the fee waiver, a registrant who is a former
763 member of the United States Armed Forces who served on active
764 duty within the 2 years preceding the expiration date of the
765 registration must have received an honorable discharge upon
766 separation or discharge from the United States Armed Forces; or
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767 3. Is the surviving spouse of a member of the United
768 States Armed Forces if the member was serving on active duty at
769 the time of death and died within the 2 years preceding the
770 surviving spouse's registration expiration date pursuant to
771 paragraph (a).
772
773 A registrant seeking such fee waiver must submit proof, in a
774 form prescribed by commission rule, that the registrant meets
775 one of the qualifications in this paragraph.
776 (14)(15)
777 (b) In lieu of filing with the office the applications
778 specified in subsection (5) (6), the fees required by subsection
779 (9) (10), the renewals required by subsection (10) (11), and the
780 termination notices required by subsection (11) (12), the
781 commission may by rule establish procedures for the deposit of
782 such fees and documents with the Central Registration Depository
783 or the Investment Adviser Registration Depository of the
784 Financial Industry Regulatory Authority, as developed under
785 contract with the North American Securities Administrators
786 Association, Inc.
787 (19)(20) An intermediary may not engage in business in
788 this state unless the intermediary is registered as a dealer or
789 as an intermediary with the office pursuant to this section to
790 facilitate the offer or sale of securities in accordance with s.
791 517.0611. An intermediary, in order to obtain registration, must
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792 file with the office a written application on a form prescribed
793 by commission rule and pay a registration fee of $200. The fees
794 under this subsection shall be deposited into the Regulatory
795 Trust Fund of the office. The commission may establish by rule
796 procedures for depositing fees and filing documents by
797 electronic means if such procedures provide the office with the
798 information and data required by this section. Each intermediary
799 must also file an irrevocable written consent to service of
800 civil process, as provided in s. 517.101.
801 (a) The application must contain such information as the
802 commission or office may require concerning:
803 1. The name of the applicant and address of its principal
804 office and each office in this state.
805 2. The applicant's form and place of organization; and, if
806 the applicant is:
807 a. A corporation, a copy of its articles of incorporation
808 and amendments to the articles of incorporation;
809 b. A limited liability company, a copy of its articles of
810 organization and amendments to the articles and a copy of the
811 company's operating agreement; or
812 c. , if A partnership, a copy of the partnership
813 agreement.
814 3. The website address where securities of the issuer will
815 be offered.
816 4. Contact information.
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817 (b) The application must also contain such information as
818 the commission may require by rule about the applicant; any
819 member, principal, or director of the applicant or any person
820 having a similar status or performing similar functions; or any
821 persons directly or indirectly controlling the applicant. Each
822 applicant and any direct owners, principals, or indirect owners
823 that are required to be reported on a form adopted by commission
824 rule shall submit fingerprints for live-scan processing in
825 accordance with rules adopted by the commission. The
826 fingerprints may be submitted through a third-party vendor
827 authorized by the Department of Law Enforcement to provide live -
828 scan fingerprinting. The costs of fingerprint processing shall
829 be borne by the person subject to the background check. The
830 Department of Law Enforcement shall conduct a state criminal
831 history background check, and a federal criminal history
832 background check must be conducted through the Federa l Bureau of
833 Investigation. The office shall review the results of the state
834 and federal criminal history background checks and determine
835 whether the applicant meets registration requirements. The
836 commission may waive, by rule, the requirement that applican ts,
837 including any direct owners, principals, or indirect owners,
838 which are required to be reported on a form adopted by
839 commission rule, submit fingerprints or the requirement that
840 such fingerprints be processed by the Department of Law
841 Enforcement or the Federal Bureau of Investigation. The
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842 commission, by rule, or the office may require information about
843 any applicant or person, including:
844 1. The applicant's or person's His or her full name and
845 any other names by which the applicant or person he or she may
846 have been known and the applicant's or person's his or her age,
847 social security number, photograph, qualifications, and
848 educational and business history.
849 2. Any injunction or administrative order by a state or
850 federal agency, national securities exchange, or national
851 securities association involving a security or any aspect of an
852 intermediary's regulated the securities business and any
853 injunction or administrative order by a state or federal agency
854 regulating banking, insurance, finance, or small loan companies,
855 real estate, mortgage brokers, or other related or similar
856 industries, which relate to such person.
857 3. The applicant's or person's His or her conviction of,
858 or plea of nolo contendere to, a criminal offense or the
859 applicant's or person's his or her commission of any acts that
860 would be grounds for refusal of an application under s. 517.161.
861 (c) The application must be amended within 30 days if any
862 information contained in the form becomes inaccurate for any
863 reason.
864 (d) An intermediary or persons affiliated with the
865 intermediary are not subject to any disqualification described
866 in s. 517.1611 or United States Securities and Exchange
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867 Commission Rule 506(d), 17 C.F.R. 230.506(d), adopted pursuant
868 to the Securities Act of 1933, as amended. Each director,
869 officer, manager or managing member, control person of the
870 issuer, any person occupying a similar status or performing a
871 similar function, and each person holding more than 20 percent
872 of the ownership interests shares of the intermediary is subject
873 to this requirement.
874 (e) If the office finds that the applicant is of good
875 repute and character and has complied with the applicable
876 registration provisions of this chapter and the rules adopted
877 thereunder, it shall register the applicant. The registration of
878 each intermediary expires on December 31 of the year the
879 registration became effective unless the registrant renews his
880 or her registration on or before that date. Registration may be
881 renewed by furnishing such information as the commission may
882 require by rule, together with payment of a $200 fee and the
883 payment of any amount due to the office pursuant to any order of
884 the office or pursuant to any agreement with the office. An
885 intermediary who has not renewed a registration by the time that
886 the current registration expires may request reinstatement of
887 such registration by filing with the office, on or before
888 January 31 of the year following the year of expiration, such
889 information as required by the commission, together with payment
890 of the $200 fee and a late fee of $200. Any reinstatement of
891 registration granted by the office during the month of January
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892 is deemed effective retroactive to January 1 of that year.
893 (20)(21) The registration requirements of this section do
894 not apply to any general lines insurance agent or life insurance
895 agent licensed under chapter 626, for the sale of a security as
896 defined in s. 517.021(28)(g) s. 517.021(22)(g), if the
897 individual is directly authorized by the issuer to offer or sell
898 the security on behalf of the issuer and the issuer is a
899 federally chartered savings bank subject to regulation by the
900 Federal Deposit Insurance Corporation. Actions under this
901 subsection shall constitute activity under the insurance agent's
902 license for purposes of ss. 626.611 and 626.621.
903 Section 7. Section 517.1214, Florida Statutes, is created
904 to read:
905 517.1214 Continuing education requirements for associated
906 persons of investment advisers and federal covered advisers. —
907 (1) As used in this section, the term:
908 (a) "Approved continuing education content" means the
909 materials, written, oral, or otherwise, which have been approved
910 by NASAA or its designee and which make up the educational
911 program provided to an associated person under this section.
912 (b) "Credit" means a unit designated by NASAA or its
913 designee as at least 50 minutes of educational instruction.
914 (c) "Home state" means the state in which an associated
915 person of an investment adviser or a federal covered adviser has
916 his or her principal office and place of business.
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Amendment No. 1
917 (d) "NASAA" means the North American Securities
918 Administrators Association, Inc.
919 (e) "Reporting period" means one 12-month period beginning
920 January 1 and ending December 31. An associated person's initial
921 reporting period with this state commences the first day of the
922 first full reporting period after the individual is registered
923 or required to be registered with this state.
924 (2) By December 31, 2024, and each December 31 thereafter,
925 each associated person of an investment adviser or a federal
926 covered adviser shall complete the following continuing
927 education content requirements offered by a person that NASAA or
928 its designee has authorized to provide the continuing education
929 content required by this section:
930 (a) Six credits of approved continuing education content
931 that addresses an associated person's ethical and regulatory
932 obligations, with at least 3 hours covering the topic of ethics;
933 and
934 (b) Six credits of approved continuing education content
935 that addresses an associated person's skills and knowledge
936 regarding financial products, investment features, and practices
937 in the investment advisory industry.
938 (3) An associated person of an investment adviser or
939 federal covered adviser who is also registered as an associated
940 person of a Financial Industry Regulatory Authority (FINRA)
941 member dealer and who complies with FINRA's continuing education
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Bill No. PCS for HB 253 (2023)
Amendment No. 1
942 requirements is considered to be in compliance with this
943 section's products and practice requirement for each applicable
944 reporting period, provided that the FINRA continuing education
945 content is approved continuing education content.
946 (4) Credits of continuing education completed by an
947 associated person who was awarded and currently holds a
948 credential that qualifies for examination waiver by passing any
949 tests as prescribed in s. 15(b)(7) of the Securities Exchange
950 Act of 1934, as amended, comply with paragraphs (2)(a) and (b),
951 provided all of the following conditions are met:
952 (a) The associated person completes the credits of
953 continuing education as a condition of maintaining the
954 credential for the relevant reporting period.
955 (b) The credits of continuing education completed during
956 the relevant reporting period by the associated person are
957 mandatory to maintain the credential.
958 (c) The continuing education content provided by the
959 credentialing organization during the relevant reporting period
960 is approved continuing education content.
961 (5) Each associated person is responsible for ensuring
962 that the authorized provider reports the associated person's
963 completion of the applicable continuing education requirements.
964 (6) An associated person who completes credits of
965 continuing education in excess of the credits required for the
966 reporting period may not carry forward excess credits to a
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 253 (2023)
Amendment No. 1
967 subsequent reporting period.
968 (7) An associated person who fails to comply with this
969 section by the end of a reporting period shall renew as "CE
970 inactive" at the close of the calendar year in this state until
971 the associated person completes and reports all required
972 continuing education credits for all reporting periods as
973 required by this section. If an associated person renews as "CE
974 inactive" at the close of the calendar year and fails to
975 complete and report all required continuing education credits
976 for all reporting periods as required by this section by the
977 close of the next calendar year, the associated person becomes
978 unregistered for purposes of this chapter.
979 (8) An associated person registered or required to be
980 registered in this state who is registered as an associated
981 person of an investment adviser or federal covered adviser in
982 the individual's home state is considered to be in compliance
983 with this section if:
984 (a) The associated person's home state has a continuing
985 education requirement of at least 12 hours annually; and
986 (b) The associated person is in compliance with the home
987 state's associated person of an investment adviser or federal
988 covered adviser continuing education requirements.
989 (9) An associated person who was previously registered
990 under s. 517.12 and became unregistered must complete continuing
991 education for all reporting periods that occurred between the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 253 (2023)
Amendment No. 1
992 time that the associated person became unregistered and when the
993 person became registered again under s. 517.12, unless the
994 associated person takes and passes the required examinations or
995 the examination requirements are waived in connection with the
996 subsequent application for registration.
997 Section 8. Section 517.1217, Florida Statutes, is amended
998 to read:
999 517.1217 Rules of conduct and prohibited business
1000 practices for dealers and their associated persons and for
1001 intermediaries.—
1002 The commission by rule may establish rules of conduct and
1003 prohibited business practices for dealers and their associated
1004 persons and for intermediaries. In adopting the rules, the
1005 commission shall consider general industry standards as
1006 expressed in the rules and regulations of the various federal
1007 and self-regulatory agencies and regulatory associations,
1008 including, but not limited to, the United States Securities and
1009 Exchange Commission, the Financial Industry Regulatory
1010 Authority, and the North American Securities Administrators
1011 Association, Inc.
1012 Section 9. Subsections (1), (4), and (5) of section
1013 517.161, Florida Statutes, are amended to read:
1014 517.161 Revocation, denial, or suspension of registration
1015 of dealer, investment adviser, intermediary, or associated
1016 person.—
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Amendment No. 1
1017 (1) Registration under s. 517.12 may be denied or any
1018 registration granted may be revoked, restricted, or suspended by
1019 the office if the office determines that such applicant or
1020 registrant; any member, principal, or director of the applicant
1021 or registrant or any person having a similar status or
1022 performing similar functions; or any person directly or
1023 indirectly controlling the applicant or registrant:
1024 (a) Has violated any provision of this chapter or any rule
1025 or order made under this chapter;
1026 (b) Has made a material false statement in the application
1027 for registration;
1028 (c) Has been guilty of a fraudulent act in connection with
1029 rendering investment advice or in connection with any sale of
1030 securities, has been or is engaged or is about to engage in
1031 making fictitious or pretended sales or purchases of any such
1032 securities or in any practice involving the rendering of
1033 investment advice or the sale of securities which is fra udulent
1034 or in violation of the law;
1035 (d) Has made a misrepresentation or false statement to, or
1036 concealed any essential or material fact from, any person in the
1037 rendering of investment advice or the sale of a security to such
1038 person;
1039 (e) Has failed to account to persons interested for all
1040 money and property received;
1041 (f) Has not delivered, after a reasonable time, to persons
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 253 (2023)
Amendment No. 1
1042 entitled thereto securities held or agreed to be delivered by
1043 the dealer, broker, or investment adviser, as and when paid for,
1044 and due to be delivered;
1045 (g) Is rendering investment advice or selling or offering
1046 for sale securities through any associated person not registered
1047 in compliance with the provisions of this chapter;
1048 (h) Has demonstrated unworthiness to transact the business
1049 of dealer, investment adviser, intermediary, or associated
1050 person;
1051 (i) Has exercised management or policy control over or
1052 owned 10 percent or more of the securities of any dealer,
1053 intermediary, or investment adviser that has been declared
1054 bankrupt, or had a trustee appointed under the Securities
1055 Investor Protection Act; or is, in the case of a dealer,
1056 intermediary, or investment adviser, unable to pay its debts as
1057 they become due in the usual course of business insolvent;
1058 (i)(j) Has been convicted of, or has entered a plea of
1059 guilty or nolo contendere to, regardless of whether adjudication
1060 was withheld, a crime against the laws of this state or any
1061 other state or of the United States or of any other cou ntry or
1062 government which relates to registration as a dealer, investment
1063 adviser, issuer of securities, intermediary, or associated
1064 person; which relates to the application for such registration;
1065 or which involves moral turpitude or fraudulent or dishonest
1066 dealing;
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Amendment No. 1
1067 (j)(k) Has had a final judgment entered against her or him
1068 in a civil action upon grounds of fraud, embezzlement,
1069 misrepresentation, or deceit;
1070 (l) Is of bad business repute;
1071 (k)(m) Has been the subject of any decision, finding,
1072 injunction, suspension, prohibition, revocation, denial,
1073 judgment, or administrative order by any court of competent
1074 jurisdiction, administrative law judge, or by any state or
1075 federal agency, national securities, commodities, or option
1076 exchange, or national securities, commodities, or option
1077 association, involving a violation of any federal or state
1078 securities or commodities law or any rule or regulation
1079 promulgated thereunder, or any rule or regulation of any
1080 national securities, commodities, or options exchange or
1081 national securities, commodities, or options association, or has
1082 been the subject of any injunction or adverse administrative
1083 order by a state or federal agency regulating banking,
1084 insurance, finance or small loan companies, real estate,
1085 mortgage brokers or lenders, money transmitters, or other
1086 related or similar industries. For purposes of this subsection,
1087 the office may not deny registration to any applicant who has
1088 been continuously registered with the office for 5 years after
1089 the date of entry of such decision, finding, injunction,
1090 suspension, prohibition, revocation, denial, judgment, or
1091 administrative order provided such decision, finding,
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Bill No. PCS for HB 253 (2023)
Amendment No. 1
1092 injunction, suspension, prohibition, revocation, denial,
1093 judgment, or administrative order has been timely reported to
1094 the office pursuant to the commission's rules; or
1095 (l)(n) Made payment to the office for a registration with
1096 a check or electronic transmission of funds that is dishonored
1097 by the applicant's or registrant's financial institution ;
1098 (m) Failed to pay and fully satisfy any final judgment or
1099 arbitration award resulting from an investment-related, client-
1100 or customer-initiated arbitration or court proceeding, unless
1101 alternative payment arrangements are agreed to in writing
1102 between the client or customer and the investment adviser,
1103 dealer, or associated person and the investment adviser, dealer,
1104 or associated person complies with the terms of the alternative
1105 payment arrangement;
1106 (n) Attempted to avoid payment of any final judgment or
1107 arbitration award resulting from an investment-related, client-
1108 or customer-initiated arbitration or court proceeding, unless
1109 alternative payment arrangements are agreed to in writing
1110 between the client or customer and the investment adviser,
1111 dealer, or associated person and the investment adviser, dealer,
1112 or associated person complies with the terms of the alternative
1113 payment arrangements; or
1114 (o) Failed to pay and fully satisfy any fine, civil
1115 penalty, order of restitution, order of disgorgement, or similar
1116 monetary payment obligation imposed upon the investment adviser,
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Bill No. PCS for HB 253 (2023)
Amendment No. 1
1117 dealer, or associated person by the Securities and Exchange
1118 Commission, the securities regulator or other financial services
1119 regulator of any state or province, or any securities industry
1120 self-regulatory organization.
1121 (4) It shall be sufficient cause for denial of an
1122 application or revocation of registration, in the case of a
1123 partnership, corporation, limited liability company, or
1124 unincorporated association, if any member of the partnership ,
1125 any manager or managing member of the limited liability company,
1126 or any officer, director, or ultimate equitable owner of the
1127 corporation or association has committed any act or omission
1128 which would be cause for denying, revoking, restricting, or
1129 suspending the registration of an individual dealer, investment
1130 adviser, intermediary, or associated person. As used in this
1131 subsection, the term "ultimate equitable owner" means a natural
1132 person who directly or indirectly owns or controls an ownership
1133 interest in the corporation, partnership, association, or other
1134 legal entity however organized, regardless of whether such
1135 natural person owns or controls such ownership interest through
1136 one or more proxies, powers of attorney, nominees, corporations,
1137 associations, partnerships, trusts, joint stock companies, or
1138 other entities or devices, or any combination thereof.
1139 (5) The office may deny any request to terminate or
1140 withdraw any application or registration if the office believes
1141 that an act that which would be a ground for denial, suspension,
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Bill No. PCS for HB 253 (2023)
Amendment No. 1
1142 restriction, or revocation under this chapter has been
1143 committed.
1144 Section 10. Subsection (2) of section 517.1611, Florida
1145 Statutes, is amended to read:
1146 517.1611 Guidelines.—
1147 (2) The commission shall adopt by rule disqualifying
1148 periods pursuant to which an applicant will be disqualified from
1149 eligibility for registration based upon criminal convictions,
1150 pleas of nolo contendere, or pleas of guilt, regardless of
1151 whether adjudication was withheld, by the applicant; any
1152 partner, member, officer, or director of the applicant or any
1153 person having a similar status or performing similar functions;
1154 or any person directly or indirectly controlling the applicant.
1155 (a) The disqualifying periods shall be 15 years for a
1156 felony and 5 years for a misdemeanor.
1157 (b) The disqualifying periods shall be related to crimes
1158 involving registration as a dealer, investment adviser, issuer
1159 of securities, or associated person or the application for such
1160 registration or involving moral turpitude or fraudulent or
1161 dishonest dealing.
1162 (c) The rules may also address mitigating factors, an
1163 additional waiting period based upon dates of imprisonment or
1164 community supervision, an additional waiting period based upon
1165 commitment of multiple crimes, and other factors reasonably
1166 related to the consideration of an applicant's criminal history.
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Bill No. PCS for HB 253 (2023)
Amendment No. 1
1167 (d) An applicant is not eligible for registration until
1168 the expiration of the disqualifying period set by rule. Section
1169 112.011 does not apply to the registration provisions under this
1170 chapter. Nothing in this section changes or amends the grounds
1171 for denial under s. 517.161.
1172 Section 11. Section 517.181, Florida Statutes, is
1173 repealed.
1174 Section 12. Paragraph (a) of subsection (4) of section
1175 517.201, Florida Statutes, is amended to read:
1176 517.201 Investigations; examinations; subpoenas; hearings;
1177 witnesses.—
1178 (4)(a) In the event of substantial noncompliance with a
1179 subpoena or subpoena duces tecum issued or caused to be issued
1180 by the office pursuant to this section, the office may petition
1181 the circuit court of the county in which the person subpoenaed
1182 resides or has its principal place of business for an order
1183 requiring the subpoenaed person to appear and testify and to
1184 produce such books, records, and documents as are specified in
1185 such subpoena duces tecum. The court may grant injunctive relief
1186 restraining the issuance, sale or offer for sale, purchase or
1187 offer to purchase, promotion, negotiation, advertisement, or
1188 distribution in or from offices in this state of securities or
1189 investments in or from this state by the noncompliant a person
1190 or its agent, employee, broker, partner, officer, director,
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Bill No. PCS for HB 253 (2023)
Amendment No. 1
1191 manager, managing member, equity holder, or any person directly
1192 or indirectly controlling the noncompliant person
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PCS for HB 1111
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for HB 1111 Value-added Insurance Products
SPONSOR(S): Insurance & Banking Subcommittee
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Insurance & Banking Subcommittee Fortenberry Lloyd
SUMMARY ANALYSIS
The Unfair Insurance Trade Practices Act (Act), among other things, defines unfair methods of competition and
unfair or deceptive acts in the business of insurance. It provides an extensive list of prohibited methods and acts.
Among these are prohibitions on certain inducements to the purchase of insurance, including rebates, dividends,
stock, and contracts that promise to return profits to the prospective insurance purchaser. The Act describes
prohibited discrimination and prohibits sliding.
Value-added insurance products or services (VAS) are provided with the sale of insurance, but extend beyond
simply providing insurance coverage. Examples of VAS include risk control or claims management services,
funeral planning, or financial planning. Depending on how VAS are structured or offered, there is a concern that by
providing them to policyholders, insurers may violate the Act.
The bill establishes that certain actions by insurers related to value -added insurance products are not discrimination
or unlawful rebates under the Code. All of these criteria regarding the value -added insurance products or services
must be met for the actions to be excluded:
Offered at no cost or reduced cost;
Not specified in the insurance policy;
Offered or provided by an insurer, insurance agent, or employee, affiliate, or third -party representative of
the insurer or insurance agent; and
Primarily designed to do one or more of the following:
o Provide loss mitigation or control;
o Reduce claim or claim settlement costs;
o Provide education about liability risks or risk of loss to people or property;
o Monitor or assess risk, identify sources of risk, or develop strategies to eliminate or reduce risk;
o Enhance health;
o Enhance financial wellness through items such as education or financial planning services;
o Provide post-loss services;
o Incentivize behavioral changes to improve the health, or reduce the risk of death or disability; or
o Assist in the administration of employee or retiree benefit insurance coverage.
Under the bill, the cost to the insurer or agent offering the product or service must be reasonable in com parison to
the customer’s premiums or insurance coverage for the type of policy. The bill specifies that the availability of the
product or service must be based on documented objective evidence maintained by the insurer or agent and
produced to OIR or DFS upon request. If an insurer or agent has a good faith believe, but lacks sufficient evidence
to demonstrate, that the product or service meets the criteria explained above, the insurer or agent may provide the
product or service as part of a pilot or testing program implemented for up to one year. The insurer or agent must
notify OIR or DFS, as applicable, of the pilot or testing program before beginning the program. After providing
notification, the insurer or agent may begin the program unless OIR or DFS objects to it within 21 days after
receiving the notice. An insurer, agent, or representative may not: offer to provide insurance or inducement to the
purchase of another policy; or use the words “free” or “no cost,” or similar words in an advertisement.
The bill has no impact on local or state government revenues or expenditures. It has an indeterminate direct
economic impact on the private sector.
The bill is effective July 1, 2023.
This docum ent 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
Unfair Methods of Competition and Unfair or Deceptive Acts
The Unfair Insurance Trade Practices Act (Act),1 among other things, defines unfair methods of
competition and unfair or deceptive acts in the business of insurance. 2 It provides an extensive list of
prohibited methods and acts. Among these are prohibitions on certain inducements to the purchase of
insurance, including rebates, dividends, stock, and contracts that promise to return profits to the
prospective insurance purchaser. The Act describes prohibited discrimination, which includes refusal to
insure anyone solely because of the following reasons: 3
The insured’s race, color, creed, marital status, sex, or national origin;
The residence, age, or lawful occupation of the individual or the location of the risk, unless there
is a reasonable relationship between the residence, age, or lawful occupation of the individual
or the location of the risk and the coverage issued or to be issued;
The insured’s or applicant’s failure to agree to place collateral business with any insurer, unless
the coverage applied for would provide liability coverage which is excess over that provided in
policies maintained on property or motor vehicles;
The insured’s or applicant’s failure to purchase noninsurance services or commodities, including
motor vehicle services;
The fact that the insured or applicant is a public official; or
The fact that the insured or applicant had been previously refused insurance coverage by any
insurer, when such refusal to insure or continue to insure for this reason occurs with such
frequency as to indicate a general business practice.
The Act also prohibits sliding, which 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 an applicant for a specific ancillary coverage or product, in addition to the cost of
insurance applied for, without informing the applicant. 4
There are many exceptions to the prohibitions defined by law. Among the exceptions is authorization
for insurers and their agents to offer and make gifts of charitable contributions, merchandise, goods,
wares, store gift cards, gift certificates, event tickets, anti-fraud or loss mitigation services, and other
items up to $100 per calendar year to an insured, prospective insured, or any person for the purpose of
advertising.5
1 Ch. 626, F.S., part IX.
2 S. 626.9541, F.S.
3 S. 626.9541(1)(x), F.S.
4 S. 626.9541(1)(z), F.S.
5 Rule 69B-186.010, F.A.C., Unlawful Inducements Related to Title Insurance Transactions, governs inducements related
to title insurance, but exempts gifts within the value limitation of s. 626.9541(1)(m), F.S. However, federal law prohibits
any fee, kickback or thing of value given for referral of real estate settlement services on mortgage loans related to federal
programs. 12 U.S.C. §2607 (2017).
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Value-added Insurance Products or Services
Value-added insurance products or services (VAS) are provided with the sale of insurance, but extend
beyond simply providing insurance coverage.6 When selecting between competing insurers, the type of
quality of these services provided by an agent or insurer may be important factors in an applicant’s
decision making.7 VAS may include risk control or claims management services. 8 For example, those
VAS provided with employer practices liability insurance attempt to prevent and control claims covered
by this type of insurance and include: 9
Human resource audits;
Training and reference manuals;
Sample employee handbooks;
Loss prevention software; and
Access to hotlines manned by human resource professionals.
VAS are also often included with life insurance to provide extra support for decisions that must be
made shortly after the loss of a loved one or at other difficult times. 10 These VAS include:11
Will and funeral preparation services;
Counseling services; and
Accelerated benefit cash advances.
Depending on how VAS are structured or offered, there is a concern that by providing them to
policyholders, insurers may violate the Act. In 2021, The National Association of Insurance
Commissioners (NAIC) created a model Unfair Trade Practices Act, that, among other provisions,
addresses these concerns regarding VAS and clarifies the circumstances under which VAS are not
unfair trade practices.
Effect of the Bill
The bill codifies certain portions of the NAIC Unfair Trade Practices Act. It establishes that certain
actions by insurers related to VAS are not discrimination or unlawful rebates under the Act. All of these
criteria regarding the value-added insurance products or services must be met for the provision of VAS
to be excluded:
Offered at no cost or reduced cost;
Not specified in the insurance policy;
Offered or provided by an insurer, insurance agent, or employee, affiliate, or third-party
representative of the insurer or insurance agent; and
Primarily designed to do one or more of the following:
o Provide loss mitigation or control;
o Reduce claim or claim settlement costs;
o Provide education about liability risks or risk of loss to people or property;
o Monitor or assess risk, identify sources of risk, or develop strategies to eliminate or
reduce risk;
o Enhance health;
o Enhance financial wellness through items such as education or financial planning
services;
o Provide post-loss services;
o Incentivize behavioral changes to improve the health, or reduce the risk of death or
disability; or
6 See IRMI, Value-added services, https://www.irmi.com/term/insurance-definitions/ value-added-s ervices (last visited Mar.
19, 2023).
7 Id.
8 Id. VAS help to prevent or mitigate covered losses.
9 Id.
10 The Hartford, Protecting and Preparing Employees with the Value-added Services of Life Insurance,
https://www.thehartford.com/insights/employee-benefits/ value-added-servic es-life-insurance (last visited Mar. 19, 2023).
11 Id.
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o Assist in the administration of employee or retiree benefit insurance coverage.
Under the bill, the cost to the insurer or agent offering the product or service must be reasonable in
comparison to the customer’s premiums or insurance coverage for the type of policy. The insurer or
agent must ensure the customer receives the contact information necessary to assist the customer with
the product or service. The bill specifies that the availability of the product or service must be based on
documented objective evidence maintained by the insurer or agent and produced to OIR or DFS upon
request.
If an insurer or agent has a good faith believe, but lacks sufficient evidence to demonstrate, that the
product or service meets the criteria explained above, the insurer or agent may provide the product or
service in a manner that is not unfairly discriminatory as part of a pilot or testing program implemented
for a maximum of one year. The bill requires that the insurer or agent notify OIR or DFS, as applicable,
of the pilot or testing program before beginning the program. After providing notification, the insurer or
agent may begin the program unless OIR or DFS objects to it within 21 days after receiving the notice.
The bill establishes that an insurer, agent, or representative may not:
Offer to provide insurance or inducement to the purchase of another policy;
Use the words “free” or “no cost,” or similar words in an advertisement.
B. SECTION DIRECTORY:
Section 1. Amends s. 626.9541, F.S. relating to unfair methods of competition and unfair or deceptive
acts or practices defined.
Section 2. Provides an effective date of July 1, 2023.
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 has an indeterminate direct economic impact on the private sector, but VAS may lead to
reduced claim costs to the extent they fulfill their intended purpose.12
D. FISCAL COMMENTS:
12 A bill analysis has been requested from OIR, but has not been received at the time of publication of this analysis.
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None.
III. 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:
The bill provides the Financial Services Commission with the authority to adopt rules necessary to
administer the statutory changes set forth in the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: pcs1111.IBS PAGE: 5
DATE: 3/20/2023
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
PCS for HB 1111 ORIGINAL 2023
1 A bill to be entitled
2 An act relating to value-added insurance products;
3 amending s. 626.9541, F.S.; providing that certain
4 restrictions against unfair discrimination or unlawful
5 rebates do not include value-added products or
6 services offered or provided by insurers or their
7 agents if certain conditions are met; providing
8 requirements for and restrictions on insurers or
9 agents offering or providing such products or
10 services; authorizing insurers or agents to provide
11 such products or services as part of a pilot or
12 testing program under certain circumstances;
13 authorizing the Financial Services Commission to adopt
14 rules; providing an effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Paragraph (h) of subsection (1) of section
19 626.9541, Florida Statutes, is amended to read:
20 626.9541 Unfair methods of competition and unfair or
21 deceptive acts or practices defined.—
22 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
23 ACTS.—The following are defined as unfair methods of competition
24 and unfair or deceptive acts or practices:
25 (h) Unlawful rebates.—
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PCS for HB 1111 ORIGINAL 2023
26 1. Except as otherwise expressly provided by law, or in an
27 applicable filing with the office, knowingly:
28 a. Permitting, or offering to make, or making, any
29 contract or agreement as to such contract other than as plainly
30 expressed in the insurance contract issued thereon;
31 b. Paying, allowing, or giving, or offering to pay, allow,
32 or give, directly or indirectly, as inducement to such insurance
33 contract, any unlawful rebate of premiums payable on the
34 contract, any special favor or advantage in the dividends or
35 other benefits thereon, or any valuable consideration or
36 inducement whatever not specified in the contract;
37 c. Giving, selling, or purchasing, or offering to give,
38 sell, or purchase, as inducement to such insurance contract or
39 in connection therewith, any stocks, bonds, or other securities
40 of any insurance company or other corporation, association, or
41 partnership, or any dividends or profits accrued thereon, or
42 anything of value whatsoever not specified in the insurance
43 contract.
44 2. Nothing in paragraph (g) or subparagraph 1. of this
45 paragraph shall be construed as including within the definition
46 of discrimination or unlawful rebates:
47 a. In the case of any contract of life insurance or life
48 annuity, paying bonuses to all policyholders or otherwise
49 abating their premiums in whole or in part out of surplus
50 accumulated from nonparticipating insurance; provided that any
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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
PCS for HB 1111 ORIGINAL 2023
51 such bonuses or abatement of premiums is fair and equitable to
52 all policyholders and for the best interests of the company and
53 its policyholders.
54 b. In the case of life insurance policies issued on the
55 industrial debit plan, making allowance to policyholders who
56 have continuously for a specified period made premium payments
57 directly to an office of the insurer in an amount which fairly
58 represents the saving in collection expenses.
59 c. Readjustment of the rate of premium for a group
60 insurance policy based on the loss or expense thereunder, at the
61 end of the first or any subsequent policy year of insurance
62 thereunder, which may be made retroactive only for such policy
63 year.
64 d. Issuance of life insurance policies or annuity
65 contracts at rates less than the usual rates of premiums for
66 such policies or contracts, as group insurance or employee
67 insurance as defined in this code.
68 e. Issuing life or disability insurance policies on a
69 salary savings, bank draft, preauthorized check, payroll
70 deduction, or other similar plan at a reduced rate reasonably
71 related to the savings made by the use of such plan.
72 3.a. No title insurer, or any member, employee, attorney,
73 agent, or agency thereof, shall pay, allow, or give, or offer to
74 pay, allow, or give, directly or indirectly, as inducement to
75 title insurance, or after such insurance has been effected, any
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PCS for HB 1111 ORIGINAL 2023
76 rebate or abatement of the premium or any other charge or fee,
77 or provide any special favor or advantage, or any monetary
78 consideration or inducement whatever.
79 b. Nothing in this subparagraph shall be construed as
80 prohibiting the payment of fees to attorneys at law duly
81 licensed to practice law in the courts of this state, for
82 professional services, or as prohibiting the payment of earned
83 portions of the premium to duly appointed agents or agencies who
84 actually perform services for the title insurer. Nothing in this
85 subparagraph shall be construed as prohibiting a rebate or
86 abatement of an attorney fee charged for professional service s,
87 or that portion of the premium that is not required to be
88 retained by the insurer pursuant to s. 627.782(1), or any other
89 agent charge or fee to the person responsible for paying the
90 premium, charge, or fee.
91 c. No insured named in a policy, or any other person
92 directly or indirectly connected with the transaction involving
93 the issuance of such policy, including, but not limited to, any
94 mortgage broker, real estate broker, builder, or attorney, any
95 employee, agent, agency, or representative thereof, or any other
96 person whatsoever, shall knowingly receive or accept, directly
97 or indirectly, any rebate or abatement of any portion of the
98 title insurance premium or of any other charge or fee or any
99 monetary consideration or inducement whatsoever, except as se t
100 forth in sub-subparagraph b.; provided, in no event shall any
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101 portion of the attorney fee, any portion of the premium that is
102 not required to be retained by the insurer pursuant to s.
103 627.782(1), any agent charge or fee, or any other monetary
104 consideration or inducement be paid directly or indirectly for
105 the referral of title insurance business.
106 4.a. Paragraph (g) or subparagraph 1. may not be construed
107 as including within the definition of discrimination or unlawful
108 rebates the offer or provision by an insurer or an agent of the
109 insurer, including by or through employees, affiliates, or
110 third-party representatives, of value-added products or services
111 at no or reduced cost when such products or services are not
112 specified in the insurance policy, if the product or service
113 relates to the insurance coverage and is primarily designed to
114 do one or more of the following:
115 (I) Provide loss mitigation or loss control;
116 (II) Reduce claim costs or claim settlement costs;
117 (III) Provide education about liability risks or risk of
118 loss to persons or property;
119 (IV) Monitor or assess risk, identify sources of risk, or
120 develop strategies for eliminating or reducing risk;
121 (V) Enhance health;
122 (VI) Enhance financial wellness through items such as
123 education or financial planning services;
124 (VII) Provide post-loss services;
125 (VIII) Incentivize behavioral changes to improve the
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126 health or reduce the risk of death or disability of a
127 policyholder, potential policyholder, certificateholder,
128 potential certificateholder, insured, potential insured, or
129 applicant; or
130 (IX) Assist in the administration of employee or retiree
131 benefit insurance coverage.
132 b. The cost to the insurer or agent offering the product
133 or service to a customer must be reasonable in comparison to the
134 customer's premiums or insurance coverage for the policy class.
135 c. If the insurer or agent is providing the product or
136 service, the insurer or agent must ensure that the customer is
137 provided with contact information to assist the customer with
138 questions regarding the product or service.
139 d. The availability of the product or service must be
140 based on documented objective evidence, and the product or
141 service must be offered in a manner that is not unfairly
142 discriminatory. The documented evidence must be maintained by
143 the insurer or agent and produced upon request by the office or
144 the department.
145 e. If an insurer or agent has a good faith belief, but
146 does not have sufficient evidence to demonstrate, that the
147 product or service meets any of the criteria in sub-sub-
148 subparagraphs a.(I)-(IX), the insurer or agent may provide the
149 product or service in a manner that is not unfairly
150 discriminatory as part of a pilot or testing program for up to 1
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151 year. An insurer or agent must notify the office or department,
152 as applicable, of such pilot or testing program offered to
153 consumers in this state before commencing the program. The
154 insurer or agent may commence the program unless the office or
155 department, as applicable, objects to the program within 21 days
156 after receiving the notice.
157 f. An insurer, agent, or representative thereof may not
158 offer or provide insurance as an inducement to the purchase of
159 another policy or otherwise use the words "free," "no cost," or
160 similar words in an advertisement.
161 g. The commission may adopt rules to administer this
162 subparagraph to ensure consumer protection. Such rules,
163 consistent with applicable law, may address, among other issues,
164 consumer data protections and privacy, consumer disclosure, and
165 unfair discrimination.
166 Section 2. This act shall take effect July 1, 2023.
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PCS for HB 1111
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