Bill Text: FL S0538 | 2019 | Regular Session | Comm Sub
Bill Title: Nonadmitted Insurance Market Reform
Spectrum: Bipartisan Bill
Status: (Failed) 2019-05-03 - Died in Appropriations, companion bill(s) passed, see CS/CS/CS/HB 301 (Ch. 2019-108) [S0538 Detail]
Download: Florida-2019-S0538-Comm_Sub.html
Florida Senate - 2019 CS for SB 538
By the Committee on Banking and Insurance; and Senator Brandes
597-02928-19 2019538c1
1 A bill to be entitled
2 An act relating to nonadmitted insurance market
3 reform; amending s. 626.916, F.S.; deleting a
4 limitation on per-policy fees charged by surplus lines
5 agents for exporting certified policies; requiring
6 that such fees be itemized separately for the customer
7 before purchase and enumerated in the policy; amending
8 s. 626.931, F.S.; deleting a requirement for surplus
9 lines agents to quarterly file a certain affidavit
10 with the Florida Surplus Lines Service Office;
11 amending s. 626.932, F.S.; conforming a provision to
12 changes made by the act; amending ss. 626.935 and
13 629.401, F.S.; conforming provisions to changes made
14 by the act; amending s. 627.715, F.S.; extending the
15 expiration date of a provision authorizing surplus
16 lines agents to export contracts or endorsements
17 providing flood coverage to eligible surplus lines
18 insurers without making a certain diligent effort to
19 seek coverage from authorized insurers; providing an
20 effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Subsection (4) of section 626.916, Florida
25 Statutes, is amended to read:
26 626.916 Eligibility for export.—
27 (4) A reasonable per-policy fee, not to exceed $35, may be
28 charged by the filing surplus lines agent for each policy
29 certified for export. The fee must be itemized separately for
30 the customer before purchase and enumerated in the policy.
31 Section 2. Section 626.931, Florida Statutes, is amended to
32 read:
33 626.931 Agent affidavit and Insurer reporting
34 requirements.—
35 (1) Each surplus lines agent that has transacted business
36 during a calendar quarter shall on or before the 45th day
37 following the calendar quarter file with the Florida Surplus
38 Lines Service Office an affidavit, on forms as prescribed and
39 furnished by the Florida Surplus Lines Service Office, stating
40 that all surplus lines insurance transacted by him or her during
41 such calendar quarter has been submitted to the Florida Surplus
42 Lines Service Office as required.
43 (2) The affidavit of the surplus lines agent shall include
44 efforts made to place coverages with authorized insurers and the
45 results thereof.
46 (1)(3) Each foreign insurer accepting premiums shall, on or
47 before the end of the month following each calendar quarter,
48 file with the Florida Surplus Lines Service Office a verified
49 report of all surplus lines insurance transacted by such insurer
50 for insurance risks located in this state during such calendar
51 quarter.
52 (2)(4) Each alien insurer accepting premiums shall, on or
53 before June 30 of each year, file with the Florida Surplus Lines
54 Service Office a verified report of all surplus lines insurance
55 transacted by such insurer for insurance risks located in this
56 state during the preceding calendar year.
57 (3)(5) The department may waive the filing requirements
58 described in subsections (1) (3) and (2) (4).
59 (4)(6) Each insurer’s report and supporting information
60 shall be in a computer-readable format as determined by the
61 Florida Surplus Lines Service Office or shall be submitted on
62 forms prescribed by the Florida Surplus Lines Service Office and
63 shall show for each applicable agent:
64 (a) A listing of all policies, certificates, cover notes,
65 or other forms of confirmation of insurance coverage or any
66 substitutions thereof or endorsements thereto and the
67 identifying number; and
68 (b) Any additional information required by the department
69 or Florida Surplus Lines Service Office.
70 Section 3. Paragraph (a) of subsection (2) of section
71 626.932, Florida Statutes, is amended to read:
72 626.932 Surplus lines tax.—
73 (2)(a) The surplus lines agent shall make payable to the
74 department the tax related to each calendar quarter’s business
75 as reported to the Florida Surplus Lines Service Office, and
76 remit the tax to the Florida Surplus Lines Service Office at the
77 same time as the remittance required under s. 626.9325 provided
78 for the filing of the quarterly affidavit, under s. 626.931. The
79 Florida Surplus Lines Service Office shall forward to the
80 department the taxes and any interest collected pursuant to
81 paragraph (b), within 10 days of receipt.
82 Section 4. Paragraph (d) of subsection (1) of section
83 626.935, Florida Statutes, is amended, and present paragraphs
84 (e) through (i) of subsection (1) of that section are
85 redesignated as paragraphs (d) through (h), respectively, to
86 read:
87 626.935 Suspension, revocation, or refusal of surplus lines
88 agent’s license.—
89 (1) The department shall deny an application for, suspend,
90 revoke, or refuse to renew the appointment of a surplus lines
91 agent and all other licenses and appointments held by the
92 licensee under this code, on any of the following grounds:
93 (d) Failure to make and file his or her affidavit or
94 reports when due as required by s. 626.931.
95 Section 5. Paragraph (a) of subsection (1) of section
96 629.401, Florida Statutes, is amended to read:
97 629.401 Insurance exchange.—
98 (1) There may be created one or more insurance exchanges,
99 with one or more offices each, subject to such rules as are
100 adopted by the commission. For the purposes of this section, the
101 term “exchange” applies to any such insurance exchange proposed
102 or created under this section. The purposes of the exchange are:
103 (a) To provide a facility for the underwriting of:
104 1. Reinsurance of all kinds of insurance.
105 2. Direct insurance of all kinds on risks located entirely
106 outside the United States.
107 3. Surplus lines insurance for risks located in this state
108 eligible for export under s. 626.916 or s. 626.917 and placed
109 through a licensed Florida surplus lines agent subject to
110 compliance with the provisions of ss. 626.921, 626.922, 626.923,
111 626.924, 626.929, 626.9295, and 626.930, and 626.931. With
112 respect to compliance with s. 626.924, the required legend may
113 refer to any coverage provided for by a security fund
114 established under paragraph (3)(d).
115 4. Surplus lines insurance in any other state subject to
116 the applicable surplus lines laws of such other state for risks
117 located entirely outside of this state.
118 Section 6. Subsection (4) of section 627.715, Florida
119 Statutes, is amended to read:
120 627.715 Flood insurance.—An authorized insurer may issue an
121 insurance policy, contract, or endorsement providing personal
122 lines residential coverage for the peril of flood or excess
123 coverage for the peril of flood on any structure or the contents
124 of personal property contained therein, subject to this section.
125 This section does not apply to commercial lines residential or
126 commercial lines nonresidential coverage for the peril of flood.
127 An insurer may issue flood insurance policies, contracts,
128 endorsements, or excess coverage on a standard, preferred,
129 customized, flexible, or supplemental basis.
130 (4) A surplus lines agent may export a contract or
131 endorsement providing flood coverage to an eligible surplus
132 lines insurer without making a diligent effort to seek such
133 coverage from three or more authorized insurers under s.
134 626.916(1)(a). This subsection expires July 1, 2025 2019, or on
135 the date on which the Commissioner of Insurance Regulation
136 determines in writing that there is an adequate admitted market
137 to provide coverage for the peril of flood consistent with this
138 section, whichever date occurs first. If there are fewer than
139 three admitted insurers on the date this subsection expires, the
140 number of declinations necessary to meet the diligent-effort
141 requirement shall be no fewer than the number of authorized
142 insurers providing flood coverage.
143 Section 7. This act shall take effect July 1, 2019.
