Bill Text: FL S1210 | 2014 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Division of Insurance Agents and Agency Services
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-04-23 - Laid on Table, companion bill(s) passed, see CS/CS/HB 633 (Ch. 2014-123), CS/CS/SB 708 (Ch. 2014-86) [S1210 Detail]
Download: Florida-2014-S1210-Introduced.html
Bill Title: Division of Insurance Agents and Agency Services
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-04-23 - Laid on Table, companion bill(s) passed, see CS/CS/HB 633 (Ch. 2014-123), CS/CS/SB 708 (Ch. 2014-86) [S1210 Detail]
Download: Florida-2014-S1210-Introduced.html
Florida Senate - 2014 SB 1210 By Senator Bean 4-00504C-14 20141210__ 1 A bill to be entitled 2 An act relating to the Division of Insurance Agents 3 and Agency Services; amending s. 20.121, F.S.; 4 revising the name of the division; amending s. 5 624.310, F.S.; revising service delivery methods; 6 amending s. 624.318, F.S.; prohibiting the removal of 7 specified original documents under certain conditions; 8 amending s. 624.501, F.S.; revising original 9 appointment and renewal fees related to certain 10 insurance representatives; amending s. 626.015, F.S.; 11 defining the term “unaffiliated insurance agent”; 12 amending s. 626.0428, F.S.; requiring a branch place 13 of business to have an agent in charge; authorizing an 14 agent to be in charge of more than one branch office 15 under certain circumstances; providing requirements 16 relating to the designation of an agent in charge; 17 providing that the agent in charge is accountable for 18 wrongful acts, misconduct, and violations committed by 19 the licensee and any person under his or her 20 supervision; prohibiting an insurance agency from 21 conducting insurance business at a location without a 22 designated agent in charge; providing for expiration 23 of an agency license under specified circumstances; 24 amending s. 626.112, F.S.; prohibiting new limited 25 customer representative licenses from being issued 26 after a specified date; providing licensure exemptions 27 that allow specified individuals or entities to 28 conduct insurance business at specified locations 29 under certain circumstances; revising licensure 30 requirements and penalties with respect to registered 31 insurance agencies; providing that the registration of 32 an approved registered insurance agency automatically 33 converts to an insurance agency license on a specified 34 date; amending s. 626.171, F.S.; providing an 35 exemption from certain licensure application fees; 36 amending s. 626.172, F.S.; revising requirements 37 relating to applications for insurance agency 38 licenses; amending s. 626.207, F.S.; conforming a 39 cross-reference; amending s. 626.241, F.S.; revising 40 the scope of the examination for a limited agent 41 license; amending s. 626.261, F.S.; deleting a 42 provision requiring certain costs to be paid by 43 applicants who request licensure examinations in 44 Spanish; amending s. 626.311, F.S.; limiting the types 45 of business that may be transacted by certain agents; 46 amending s. 626.321, F.S.; providing that a license 47 issued to a business renting or leasing motor vehicles 48 applies to employees and authorized representatives; 49 amending s. 626.382, F.S.; providing that an insurance 50 agency license continues in force until canceled, 51 suspended, revoked, terminated, or expired; amending 52 s. 626.601, F.S.; revising terminology relating to 53 investigations conducted by the Department of 54 Financial Services and the Office of Insurance 55 Regulation with respect to individuals and entities 56 involved in the insurance industry; amending s. 57 626.611, F.S.; requiring the department to suspend 58 certain licenses and appointments; amending s. 59 626.641, F.S.; conforming a cross-reference; amending 60 s. 626.733, F.S.; revising applicability of certain 61 appointment provisions; amending s. 626.7355, F.S.; 62 revising qualifications for a temporary customer 63 representative’s license; repealing s. 626.747, F.S., 64 relating to branch agencies, agents in charge, and the 65 payment of additional county tax under certain 66 circumstances on a specified date; amending s. 67 626.7845, F.S.; revising a prohibition against 68 unlicensed transaction of life insurance; amending ss. 69 626.8411, 626.861, and 626.862, F.S.; conforming 70 cross-references; amending s. 626.9272, F.S.; revising 71 requirements for the licensure of nonresident surplus 72 lines agents; creating s. 627.4553, F.S.; requiring an 73 insurance agent who recommends the surrender of 74 certain annuity or life insurance to provide certain 75 information to the department; amending s. 627.7015, 76 F.S.; revising the rulemaking authority of the 77 department with respect to qualifications and 78 specified types of penalties covered under the 79 property insurance mediation program; amending s. 80 627.706, F.S.; revising the definition of the term 81 “neutral evaluator”; amending s. 627.7074, F.S.; 82 providing grounds for the department to deny an 83 application, or suspend or revoke approval of 84 certification, of a neutral evaluator; requiring the 85 department to adopt rules; amending s. 627.745, F.S.; 86 revising qualifications for approval as a mediator by 87 the department; providing grounds for the department 88 to deny an application, or suspend or revoke approval, 89 of a mediator; requiring the department to adopt 90 rules; amending s. 627.952, F.S.; providing that 91 certain persons who are not residents of this state 92 must be licensed and appointed as nonresident surplus 93 lines agents in this state in order to engage in 94 specified activities with respect to servicing 95 insurance contracts, certificates, or agreements for 96 purchasing or risk retention groups; deleting a 97 fidelity bond requirement applicable to certain 98 nonresident agents who are licensed as surplus lines 99 agents in another state; amending s. 648.43, F.S.; 100 revising requirements for the submission of a power of 101 attorney; amending s. 648.49, F.S.; revising 102 provisions relating to the duration of suspension or 103 revocation of a license; amending ss. 943.0585 and 104 943.059, F.S.; prohibiting a person seeking a license 105 from the Division of Insurance Agent and Agency 106 Services who is the subject of an expunged or sealed 107 criminal history record from denying or failing to 108 acknowledge arrests covered by the record; providing 109 effective dates. 110 111 Be It Enacted by the Legislature of the State of Florida: 112 113 Section 1. Paragraph (g) of subsection (2) of section 114 20.121, Florida Statutes, is amended to read: 115 20.121 Department of Financial Services.—There is created a 116 Department of Financial Services. 117 (2) DIVISIONS.—The Department of Financial Services shall 118 consist of the following divisions: 119 (g) The Division of Insurance AgentAgentsand Agency 120 Services. 121 Section 2. Subsection (6) of section 624.310, Florida 122 Statutes, is amended to read: 123 624.310 Enforcement; cease and desist orders; removal of 124 certain persons; fines.— 125 (6) ADMINISTRATIVE PROCEDURES.—All administrative 126 proceedings under subsections (3), (4), and (5) shall be 127 conducted in accordance with chapter 120. Any service required 128 or authorized to be made by the department or office under this 129 code shall be made: 130 (a) By certified mail, return receipt requested, delivered 131 to the addressee only; 132 (b) By e-mail, delivery receipt required, sent to the most 133 recent e-mail address provided to the department by the 134 applicant or licensee in accordance with s. 626.171, s. 626.551, 135 s. 648.34, or s. 648.421, if service by mail cannot be obtained 136 at the last address provided to the department by the recipient; 137 (c) By personal delivery, including hand delivery by 138 department investigators; 139 (d) By publication in accordance with s. 120.60; or 140 (e) In accordance with chapter 48. 141 142 The service provided for in this subsectionhereinshall be 143 effective from the date of delivery. 144 Section 3. Subsection (5) of section 624.318, Florida 145 Statutes, is amended to read: 146 624.318 Conduct of examination or investigation; access to 147 records; correction of accounts; appraisals.— 148 (5)NeitherThe department, the office, or annor any149 examiner may notshallremove an originalanyrecord, account, 150 document, file, or other property of the person being examined 151 from the offices of such person except with the person’s written 152 consentof such persongiven in advance of such removal or 153 pursuant to a courtanorderof court duly obtained. 154 Section 4. Paragraphs (a) and (c) of subsection (6) and 155 subsections (7) and (8) of section 624.501, Florida Statutes, 156 are amended to read: 157 624.501 Filing, license, appointment, and miscellaneous 158 fees.—The department, commission, or office, as appropriate, 159 shall collect in advance, and persons so served shall pay to it 160 in advance, fees, licenses, and miscellaneous charges as 161 follows: 162 (6) Insurance representatives, property, marine, casualty, 163 and surety insurance. 164 (a) Agent’s original appointment and biennial renewal or 165 continuation thereof, each insurer or unaffiliated agent making 166 an appointment: 167 Appointment fee....................................$42.00 168 State tax...........................................12.00 169 County tax...........................................6.00 170 Total.....................................................$60.00 171 (c) Nonresident agent’s original appointment and biennial 172 renewal or continuation thereof, appointment fee, each insurer 173 or unaffiliated agent making an appointment...............$60.00 174 (7) Life insurance agents. 175 (a) Agent’s original appointment and biennial renewal or 176 continuation thereof, each insurer or unaffiliated agent making 177 an appointment: 178 Appointment fee....................................$42.00 179 State tax...........................................12.00 180 County tax...........................................6.00 181 Total.....................................................$60.00 182 (b) Nonresident agent’s original appointment and biennial 183 renewal or continuation thereof, appointment fee, each insurer 184 or unaffiliated agent making an appointment $60.00 185 (8) Health insurance agents. 186 (a) Agent’s original appointment and biennial renewal or 187 continuation thereof, each insurer or unaffiliated agent making 188 an appointment: 189 Appointment fee....................................$42.00 190 State tax...........................................12.00 191 County tax...........................................6.00 192 Total.....................................................$60.00 193 (b) Nonresident agent’s original appointment and biennial 194 renewal or continuation thereof, appointment fee, each insurer 195 or unaffiliated agent making an appointment $60.00 196 Section 5. Present subsection (18) of section 626.015, 197 Florida Statutes, is renumbered as subsection (19), and a new 198 subsection (18) is added to that section, to read: 199 626.015 Definitions.—As used in this part: 200 (18) “Unaffiliated insurance agent” means a licensed 201 insurance agent, except a limited lines agent, who is self 202 appointed and who practices as an independent consultant in the 203 business of analyzing or abstracting insurance policies, 204 providing insurance advice or counseling, or making specific 205 recommendations or comparisons of insurance products for a fee 206 established in advance by written contract signed by the 207 parties. An unaffiliated insurance agent may not be affiliated 208 with an insurer, insurer-appointed insurance agent, or insurance 209 agency contracted with or employing insurer-appointed insurance 210 agents. 211 Section 6. Effective January 1, 2015, section 626.0428, 212 Florida Statutes, is amended to read: 213 626.0428 Agency personnel powers, duties, and limitations.— 214 (1) An employee ofindividual employed byan agent or 215 agency on salary who devotes full time to clerical work, with 216 incidental taking of insurance applications or quoting or 217 receiving premiums on incoming inquiries in the office of the 218 agent or agency, is notdeemed to bean agent or customer 219 representative if his or her compensation does not include in 220 whole or in part any commissions on such business and is not 221 related to the production of applications, insurance, or 222 premiums. 223 (2) An employee, or an authorized representative located at 224 a designated branch of an agent or agency may not bind insurance 225 coverage unless licensed and appointed as an agent or customer 226 representative. 227 (3) An employee or an authorized representative located at 228 a designated branch of an agent or agency may not initiate 229 contact with any person for the purpose of soliciting insurance 230 unless licensed and appointed as an agent or customer 231 representative. As to title insurance, an employee of an agent 232 or agency may not initiate contact with ananyindividual 233 proposed to be insured for the purpose of soliciting title 234 insurance unless licensed as a title insurance agent or exempt 235 from such licensure pursuant to s. 626.8417(4). 236 (4)(a) Each place of business established by an agent or 237 agency, firm, corporation, or association must be in the active 238 full-time charge of a licensed and appointed agent holding the 239 required agent licenses to transact the lines of insurance being 240 handled at the location. 241 (b) However, the licensed agent in charge of an insurance 242 agency may also be the agent in charge of additional branch 243 office locations of the agency if insurance activities requiring 244 licensure as an insurance agent do not occur at a location when 245 an agent is not physically present and unlicensed employees at 246 the location do not engage in insurance activities requiring 247 licensure as an insurance agent or customer representative. 248 (c) An insurance agency and each branch place of business 249 of an insurance agency shall designate an agent in charge and 250 file the name and license number of the agent in charge and the 251 physical address of the insurance agency location with the 252 department at the department’s designated website. The 253 designation of the agent in charge may be changed at the option 254 of the agency. A change of the designated agent in charge is 255 effective upon notification to the department, which shall be 256 provided within 30 days after such change. 257 (d) For the purposes of this subsection, an “agent in 258 charge” is the licensed and appointed agent who is responsible 259 for the supervision of all individuals within an insurance 260 agency location, regardless of whether the agent in charge 261 handles a specific transaction or deals with the general public 262 in the solicitation or negotiation of insurance contracts or the 263 collection or accounting of moneys. 264 (e) An agent in charge of an insurance agency is 265 accountable for wrongful acts, misconduct, or violations of this 266 code committed by the licensee or agent or by any person under 267 his or her supervision while acting on behalf of the agency. 268 This section does not render an agent in charge criminally 269 liable for an act unless the agent in charge personally 270 committed the act or knew or should have known of the act and of 271 the facts constituting a violation of this chapter. 272 (f) An insurance agency location may not conduct the 273 business of insurance unless an agent in charge is designated 274 by, and providing services to, the agency at all times. If the 275 agent in charge designated with the department ends his or her 276 affiliation with the agency and the agency fails to designate 277 another agent in charge within the 30 days provided for in 278 paragraph (c) and such failure continues for 90 days, the agency 279 license shall automatically expire on the 91st day after the 280 date the designated agent in charge ended his or her affiliation 281 with the agency. 282 Section 7. Effective January 1, 2015, paragraph (b) of 283 subsection (1) and subsection (7) of section 626.112, Florida 284 Statutes, are amended to read: 285 626.112 License and appointment required; agents, customer 286 representatives, adjusters, insurance agencies, service 287 representatives, managing general agents.— 288 (1) 289 (b) Except as provided in subsection (6) or in applicable 290 department rules, and in addition to other conduct described in 291 this chapter with respect to particular types of agents, a 292 license as an insurance agent, service representative, customer 293 representative, or limited customer representative is required 294 in order to engage in the solicitation of insurance. Effective 295 October 1, 2014, new limited customer representative licenses 296 may not be issued. For purposes of this requirement, as 297 applicable toany ofthe license types described in this 298 section, the solicitation of insurance is the attempt to 299 persuade any person to purchase an insurance product by: 300 1. Describing the benefits or terms of insurance coverage, 301 including premiums or rates of return; 302 2. Distributing an invitation to contract to prospective 303 purchasers; 304 3. Making general or specific recommendations as to 305 insurance products; 306 4. Completing orders or applications for insurance 307 products; 308 5. Comparing insurance products, advising as to insurance 309 matters, or interpreting policies or coverages; or 310 6. Offering or attempting to negotiate on behalf of another 311 person a viatical settlement contract as defined in s. 626.9911. 312 313 However, an employee leasing company licensed underpursuant to314 chapter 468 which is seeking to enter into a contract with an 315 employer that identifies products and services offered to 316 employees may deliver proposals for the purchase of employee 317 leasing services to prospective clients of the employee leasing 318 company setting forth the terms and conditions of doing 319 business; classify employees as permitted by s. 468.529; collect 320 information from prospective clients and other sources as 321 necessary to perform due diligence on the prospective client and 322 to prepare a proposal for services; provide and receive 323 enrollment forms, plans, and other documents; and discuss or 324 explain in general terms the conditions, limitations, options, 325 or exclusions of insurance benefit plans available to the client 326 or employees of the employee leasing company were the client to 327 contract with the employee leasing company. Any advertising 328 materials or other documents describing specific insurance 329 coverages must identify and be from a licensed insurer or its 330 licensed agent or a licensed and appointed agent employed by the 331 employee leasing company. The employee leasing company may not 332 advise or inform the prospective business client or individual 333 employees of specific coverage provisions, exclusions, or 334 limitations of particular plans. As to clients for which the 335 employee leasing company is providing services pursuant to s. 336 468.525(4), the employee leasing company may engage in 337 activities permitted by ss. 626.7315, 626.7845, and 626.8305, 338 subject to the restrictions specified in those sections. If a 339 prospective client requests more specific information concerning 340 the insurance provided by the employee leasing company, the 341 employee leasing company must refer the prospective business 342 client to the insurer or its licensed agent or to a licensed and 343 appointed agent employed by the employee leasing company. 344 (7)(a)AnEffective October 1, 2006, noindividual, firm, 345 partnership, corporation, association, oranyother entity may 346 notshallact in its own name or under a trade name, directly or 347 indirectly, as an insurance agency,unless it complies with s. 348 626.172 with respect to possessing an insurance agency license 349 for each place of business at which it engages in anany350 activity thatwhichmay be performed only by a licensed 351 insurance agent. However, an insurance agency that is owned and 352 operated by a single licensed agent conducting business in his 353 or her individual name and not employing or otherwise using the 354 services of or appointing other licensees is exempt from the 355 agency licensing requirements of this subsection. 356 (a) A branch location of a business which is established by 357 a licensed insurance agency is considered a branch agency and is 358 not required to be licensed if it transacts business under the 359 same name and federal tax identification number as the licensed 360 agency and has designated with the department a licensed agent 361 in charge of the branch location as required by s. 626.0428 and 362 the address and telephone number of the branch location have 363 been submitted to the department for inclusion in the licensing 364 record of the licensed agency within 30 days after insurance 365 transactions begin at the branch locationEach agency engaged in366business in this state before January 1, 2003, which is wholly367owned by insurance agents currently licensed and appointed under368this chapter, each incorporated agency whose voting shares are369traded on a securities exchange, each agency designated and370subject to supervision and inspection as a branch office under371the rules of the National Association of Securities Dealers, and372each agency whose primary function is offering insurance as a373service or member benefit to members of a nonprofit corporation374may file an application for registration in lieu of licensure in375accordance with s. 626.172(3). Each agency engaged in business376before October 1, 2006, shall file an application for licensure377or registration on or before October 1, 2006. 378 (b)1.If an agency is required to be licensed but fails to 379 file an application for licensure in accordance with this 380 section, the department shall imposeon the agencyan 381 administrative penaltyin an amountof up to $10,000. 3822. If an agency is eligible for registration but fails to383file an application for registration or an application for384licensure in accordance with this section, the department shall385impose on the agency an administrative penalty in an amount of386up to $5,000.387 (c)(b)Effective October 1, 2015, the department must 388 convert the registration of an approvedaregistered insurance 389 agency toshall, as a condition precedent to continuing390business, obtainan insurance agency licenseif the department391finds that, with respect to any majority owner, partner,392manager, director, officer, or other person who manages or393controls the agency, any person has:3941. Been found guilty of, or has pleaded guilty or nolo395contendere to, a felony in this state or any other state396relating to the business of insurance or to an insurance agency,397without regard to whether a judgment of conviction has been398entered by the court having jurisdiction of the cases. 3992. Employed any individual in a managerial capacity or in a400capacity dealing with the public who is under an order of401revocation or suspension issued by the department. An insurance402agency may request, on forms prescribed by the department,403verification of any person’s license status. If a request is404mailed within 5 working days after an employee is hired, and the405employee’s license is currently suspended or revoked, the agency406shall not be required to obtain a license, if the unlicensed407person’s employment is immediately terminated.4083. Operated the agency or permitted the agency to be409operated in violation of s. 626.747.4104. With such frequency as to have made the operation of the411agency hazardous to the insurance-buying public or other412persons:413a. Solicited or handled controlled business. This414subparagraph shall not prohibit the licensing of any lending or415financing institution or creditor, with respect to insurance416only, under credit life or disability insurance policies of417borrowers from the institutions, which policies are subject to418part IX of chapter 627.419b. Misappropriated, converted, or unlawfully withheld420moneys belonging to insurers, insureds, beneficiaries, or others421and received in the conduct of business under the license.422c. Unlawfully rebated, attempted to unlawfully rebate, or423unlawfully divided or offered to divide commissions with424another.425d. Misrepresented any insurance policy or annuity contract,426or used deception with regard to any policy or contract, done427either in person or by any form of dissemination of information428or advertising.429e. Violated any provision of this code or any other law430applicable to the business of insurance in the course of dealing431under the license.432f. Violated any lawful order or rule of the department.433g. Failed or refused, upon demand, to pay over to any434insurer he or she represents or has represented any money coming435into his or her hands belonging to the insurer.436h. Violated the provision against twisting as defined in s.437626.9541(1)(l).438i. In the conduct of business, engaged in unfair methods of439competition or in unfair or deceptive acts or practices, as440prohibited under part IX of this chapter.441j. Willfully overinsured any property insurance risk.442k. Engaged in fraudulent or dishonest practices in the443conduct of business arising out of activities related to444insurance or the insurance agency.445l. Demonstrated lack of fitness or trustworthiness to446engage in the business of insurance arising out of activities447related to insurance or the insurance agency.448m. Authorized or knowingly allowed individuals to transact449insurance who were not then licensed as required by this code.4505. Knowingly employed any person who within the preceding 3451years has had his or her relationship with an agency terminated452in accordance with paragraph (d).4536. Willfully circumvented the requirements or prohibitions454of this code.455 Section 8. Present subsection (6) of section 626.171, 456 Florida Statutes, is renumbered as subsection (7), and a new 457 subsection (6) is added to that section, to read: 458 626.171 Application for license as an agent, customer 459 representative, adjuster, service representative, managing 460 general agent, or reinsurance intermediary.— 461 (6) Members of the United States Armed Forces and their 462 spouses, and veterans of the United States Armed Forces who have 463 retired within 24 months before application for licensure, are 464 exempt from the application filing fee prescribed in s. 624.501. 465 Qualified individuals must provide a copy of a military 466 identification card, military dependent identification card, 467 military service record, military personnel file, veteran 468 record, discharge paper, or separation document, or separation 469 document that indicates such members of the United States Armed 470 Forces are currently in good standing or were honorably 471 discharged. 472 Section 9. Subsections (2), (3), and (4) of section 473 626.172, Florida Statutes, are amended to read: 474 626.172 Application for insurance agency license.— 475 (2) An application for an insurance agency license must be 476 signed by an individual specified in paragraph (a)shall be477signed by the owner or owners of the agency. An insurance agency 478 may permit a third party to complete, submit, and sign an 479 application on the insurance agency’s behalf; however, the 480 insurance agency is responsible for ensuring that the 481 information on the application is true and correct and is 482 accountable for any misstatements or misrepresentations.If the483agency is incorporated, the application shall be signed by the484president and secretary of the corporation.The application must 485for an insurance agency license shallinclude: 486 (a) The name of eachmajorityowner, partner, officer,and487 director, president, senior vice president, secretary, 488 treasurer, and limited liability company member who directs or 489 participates in the management or control of the insurance 490 agency, whether through ownership of voting securities, by 491 contract, by ownership of an agency bank account, or otherwise. 492 (b) The residence address of each person required to be 493 listed in the application under paragraph (a). 494 (c) The name, principal business street address, and valid 495 e-mail address of the insurance agency and the name, address, 496 and e-mail address of the agency’s registered agent or person or 497 company authorized to accept service on behalf of the agencyand498its principal business address. 499 (d) The physical addresslocationof each branch agency, 500 including its name, e-mail address, and telephone number, and 501 the date that the branch location began transacting insurance 502office and the name under which each agency office conducts or503will conduct business. 504 (e) The name of theeachagentto bein full-time charge of 505 theanagency office, including branch locations, and his or her 506 corresponding locationspecification of which office. 507 (f) The fingerprints of each of the following: 508 1. A sole proprietor; 509 2. Each individual specified in paragraph (a)partner; and 5103. Each owner of an unincorporated agency;511 3.4.Each individualownerwho directs or participates in 512 the management or control of an incorporated agency whose shares 513 are not traded on a securities exchange; 5145. The president, senior vice presidents, treasurer,515secretary, and directors of the agency; and5166. Any other person who directs or participates in the517management or control of the agency, whether through the518ownership of voting securities, by contract, or otherwise.519 520 Fingerprints must be taken by a law enforcement agency or other 521 entity approved by the department and must be accompanied by the 522 fingerprint processing fee specified in s. 624.501. Fingerprints 523 mustshallbe processed in accordance with s. 624.34. However, 524 fingerprints need not be filed for ananyindividual who is 525 currently licensed and appointed under this chapter. This 526 paragraph does not apply to corporations whose voting shares are 527 traded on a securities exchange. 528 (g) Such additional information as the department requires 529 by rule to ascertain the trustworthiness and competence of 530 persons required to be listed on the application and to 531 ascertain that such persons meet the requirements of this code. 532 However, the department may not require that credit or character 533 reports be submitted for persons required to be listed on the 534 application. 535 (3)(h)Beginning October 1, 2005,The department mustshall536 accept the uniform application for nonresident agency licensure. 537 The department may adopt by rule revised versions of the uniform 538 application. 539(3) The department shall issue a registration as an540insurance agency to any agency that files a written application541with the department and qualifies for registration. The542application for registration shall require the agency to provide543the same information required for an agency licensed under544subsection (2), the agent identification number for each owner545who is a licensed agent, proof that the agency qualifies for546registration as provided in s. 626.112(7), and any other547additional information that the department determines is548necessary in order to demonstrate that the agency qualifies for549registration. The application must be signed by the owner or550owners of the agency. If the agency is incorporated, the551application must be signed by the president and the secretary of552the corporation. An agent who owns the agency need not file553fingerprints with the department if the agent obtained a license554under this chapter and the license is currently valid.555(a) If an application for registration is denied, the556agency must file an application for licensure no later than 30557days after the date of the denial of registration.558(b) A registered insurance agency must file an application559for licensure no later than 30 days after the date that any560person who is not a licensed and appointed agent in this state561acquires any ownership interest in the agency. If an agency562fails to file an application for licensure in compliance with563this paragraph, the department shall impose an administrative564penalty in an amount of up to $5,000 on the agency.565(c) Sections 626.6115 and 626.6215 do not apply to agencies566registered under this subsection.567 (4) The department mustshallissue a licenseor568registrationto each agency upon approval of the application, 569 and each agency location mustshalldisplay the licenseor570registrationprominently in a manner that makes it clearly 571 visible to any customer or potential customer who enters the 572 agency location. 573 Section 10. Subsection (7) of section 626.207, Florida 574 Statutes, is amended to read: 575 626.207 Disqualification of applicants and licensees; 576 penalties against licensees; rulemaking authority.— 577 (7) After the disqualifying period has been met, the burden 578 is on the applicant to demonstrate that the applicant has been 579 rehabilitated, does not pose a risk to the insurance-buying 580 public, is fit and trustworthy to engage in the business of 581 insurance pursuant to s. 626.611(1)(g)s.626.611(7), and is 582 otherwise qualified for licensure. 583 Section 11. Subsection (5) of section 626.241, Florida 584 Statutes, is amended to read: 585 626.241 Scope of examination.— 586 (5) Examinations given applicants for a limited agent 587 licenseas agent or as customer representativeshall be limited 588 in scope to the kind of business to be transacted under such 589 license. 590 Section 12. Subsection (5) of section 626.261, Florida 591 Statutes, is amended to read: 592 626.261 Conduct of examination.— 593 (5) The department may provide licensure examinations in 594 Spanish.Applicants requesting examination or reexamination in595Spanish must bear the full cost of the department’s development,596preparation, administration, grading, and evaluation of the597Spanish-language examination.When determining whether it is in 598 the public interest to allow the examination to be translated 599 into and administered in Spanish, the department shall consider 600 the percentage of the population who speak Spanish. 601 Section 13. Present subsection (6) of section 626.311, 602 Florida Statutes, is renumbered as subsection (7), and a new 603 subsection (6) is added to that section, to read: 604 626.311 Scope of license.— 605 (6) An agent who appoints his or her license as an 606 unaffiliated insurance agent may not hold an appointment from an 607 insurer for any license he or she holds; transact, solicit, or 608 service an insurance contract on behalf of an insurer; interfere 609 with commissions received or to be received by an insurer 610 appointed insurance agent or an insurance agency contracted with 611 or employing insurer-appointed insurance agents; or receive 612 compensation or any other thing of value from an insurer, an 613 insurer-appointed insurance agent, or an insurance agency 614 contracted with or employing insurer-appointed insurance agents 615 for any transaction or referral occurring after the date of 616 appointment as an unaffiliated insurance agent. An unaffiliated 617 insurance agent may continue to receive commissions on sales 618 that occurred before the date of appointment as an unaffiliated 619 insurance agent if the receipt of such commissions is disclosed 620 when making recommendations or evaluating products for a client 621 that involve products of the entity from which the commissions 622 are received. 623 Section 14. Paragraph (d) of subsection (1) of section 624 626.321, Florida Statutes, is amended to read: 625 626.321 Limited licenses.— 626 (1) The department shall issue to a qualified applicant a 627 license as agent authorized to transact a limited class of 628 business in any of the following categories of limited lines 629 insurance: 630 (d) Motor vehicle rental insurance.— 631 1. License covering only insurance of the risks set forth 632 in this paragraph when offered, sold, or solicited with and 633 incidental to the rental or lease of a motor vehicle and which 634 applies only to the motor vehicle that is the subject of the 635 lease or rental agreement and the occupants of the motor 636 vehicle: 637 a. Excess motor vehicle liability insurance providing 638 coverage in excess of the standard liability limits provided by 639 the lessor in the lessor’s lease to a person renting or leasing 640 a motor vehicle from the licensee’s employer for liability 641 arising in connection with the negligent operation of the leased 642 or rented motor vehicle. 643 b. Insurance covering the liability of the lessee to the 644 lessor for damage to the leased or rented motor vehicle. 645 c. Insurance covering the loss of or damage to baggage, 646 personal effects, or travel documents of a person renting or 647 leasing a motor vehicle. 648 d. Insurance covering accidental personal injury or death 649 of the lessee and any passenger who is riding or driving with 650 the covered lessee in the leased or rented motor vehicle. 651 2. Insurance under a motor vehicle rental insurance license 652 may be issued only if the lease or rental agreement is for no 653 more than 60 days, the lessee is not provided coverage for more 654 than 60 consecutive days per lease period, and the lessee is 655 given written notice that his or her personal insurance policy 656 providing coverage on an owned motor vehicle may provide 657 coverage of such risks and that the purchase of the insurance is 658 not required in connection with the lease or rental of a motor 659 vehicle. If the lease is extended beyond 60 days, the coverage 660 may be extended one time only for up to 60a period not to661exceed anadditional60days. Insurance may be provided to the 662 lessee as an additional insured on a policy issued to the 663 licensee’s employer. 664 3. The license may be issued only to the full-time salaried 665 employee of a licensed general lines agent or to a business 666 entity that offers motor vehicles for rent or lease if insurance 667 sales activities authorized by the license are in connection 668 with and incidental to the rental or lease of a motor vehicle. 669 a. A license issued to a business entity that offers motor 670 vehicles for rent or lease encompasses each office, branch 671 office, employee, and authorized representative located at a 672 designated branch or place of business making use of the 673 entity’s business name in order to offer, solicit, and sell 674 insurance pursuant to this paragraph. 675 b. The application for licensure must list the name, 676 address, and phone number for each office, branch office, or 677 place of business that is to be covered by the license. The 678 licensee shall notify the department of the name, address, and 679 phone number of any new location that is to be covered by the 680 license before the new office, branch office, or place of 681 business engages in the sale of insurance pursuant to this 682 paragraph. The licensee must notify the department within 30 683 days after closing or terminating an office, branch office, or 684 place of business. Upon receipt of the notice, the department 685 shall delete the office, branch office, or place of business 686 from the license. 687 c. A licensed and appointed entity is directly responsible 688 and accountable for all acts of the licensee’s employees. 689 Section 15. Effective January 1, 2015, section 626.382, 690 Florida Statutes, is amended to read: 691 626.382 Continuation, expiration of license; insurance 692 agencies.—The license of ananyinsurance agencyshall be issued693for a period of 3 years andshall continue in force until 694 canceled, suspended, or revoked,or until it is otherwise 695 terminated or expires by operation of law.A license may be696renewed by submitting a renewal request to the department on a697form adopted by department rule.698 Section 16. Section 626.601, Florida Statutes, is amended 699 to read: 700 626.601 Improper conduct; investigationinquiry; 701 fingerprinting.— 702 (1) The department or office may, upon its own motion or 703 upon a written complaint signed by ananyinterested person and 704 filed with the department or office, inquire into theany705 alleged improper conduct of any licensed, approved, or certified 706 licensee, insurance agency, agent, adjuster, service 707 representative, managing general agent, customer representative, 708 title insurance agent, title insurance agency, mediator, neutral 709 evaluator, navigator, continuing education course provider, 710 instructor, school official, or monitor group under this code. 711 The department or office may thereafter initiate an 712 investigation of any such individual or entitylicenseeif it 713 has reasonable cause to believe that the individual or entity 714licenseehas violated any provision of the insurance code. 715 During the course of its investigation, the department or office 716 shall contact the individual or entitylicenseebeing 717 investigated unless it determines that contacting such 718 individual or entitypersoncould jeopardize the successful 719 completion of the investigation or cause injury to the public. 720 (2) In the investigation by the department or office of any 721thealleged misconduct, an individual or entitythe licensee722 shall, ifwheneverso required by the department or office, 723 cause the individual’s or entity’shis or herbooks and records 724 to be open for inspection for the purpose of such investigation 725inquiries. 726 (3)TheComplaints against an individual or entityany727licenseemay be informally alleged and are not required to 728 includeneed not be in any suchlanguageas isnecessary to 729 charge a crime on an indictment or information. 730 (4) The expense foranyhearings or investigations 731 conducted under this sectionlaw, as well as the fees and 732 mileage of witnesses, may be paid out of the appropriate fund. 733 (5) Ifthe department or office, after investigation, the 734 department or office has reason to believe that an individuala735licenseemay have been found guilty of or pleaded guilty or nolo 736 contendere to a felony or a crime related to the business of 737 insurance in this or any other state or jurisdiction, the 738 department or office may require the individuallicenseeto file 739 with the department or office a complete set of his or her 740 fingerprints,which shall beaccompanied by the fingerprint 741 processing fee set forth in s. 624.501. The fingerprints shall 742 be taken by an authorized law enforcement agency or other 743 department-approved entity. 744 (6) The complaint and any information obtained pursuant to 745 the investigation by the department or office are confidential 746 and are exempt fromthe provisions ofs. 119.07,unless the 747 department or office files a formal administrative complaint, 748 emergency order, or consent order against the individual or 749 entitylicensee.Nothing inThis subsection does notshall be750construed toprevent the department or office from disclosing 751 the complaint or such information as it deems necessary to 752 conduct the investigation, to update the complainant as to the 753 status and outcome of the complaint, or to share such 754 information with any law enforcement agency or other regulatory 755 body. 756 Section 17. Section 626.611, Florida Statutes, is amended 757 to read: 758 626.611 Grounds for compulsory refusal, suspension, or 759 revocation of agent’s, title agency’s, adjuster’s, customer 760 representative’s, service representative’s, or managing general 761 agent’s license or appointment.— 762 (1) The department shall deny an application for, suspend, 763 revoke, or refuse to renew or continue the license or 764 appointment of ananyapplicant, agent, title agency, adjuster, 765 customer representative, service representative, or managing 766 general agent, and it shall suspend or revoke the eligibility to 767 hold a license or appointment of any such person, if it finds 768 that as to the applicant, licensee, or appointee any one or more 769 of the following applicable grounds exist: 770 (a)(1)Lack of one or more of the qualifications for the 771 license or appointment as specified in this code. 772 (b)(2)Material misstatement, misrepresentation, or fraud 773 in obtaining the license or appointment or in attempting to 774 obtain the license or appointment. 775 (c)(3)Failure to pass to the satisfaction of the 776 department any examination required under this code. 777 (d)(4)If the license or appointment is willfully used, or 778 to be used, to circumvent any of the requirements or 779 prohibitions of this code. 780 (e)(5)Willful misrepresentation of any insurance policy or 781 annuity contract or willful deception with regard to any such 782 policy or contract, done either in person or by any form of 783 dissemination of information or advertising. 784 (f)(6)If, as an adjuster, or as an agent licensed and 785 appointed to adjust claims under this code, he or she has 786 materially misrepresented to an insured or other interested 787 party the terms and coverage of an insurance contract with 788 intent and for the purpose of effecting settlement of claim for 789 loss or damage or benefit under such contract on less favorable 790 terms than those provided in and contemplated by the contract. 791 (g)(7)Demonstrated lack of fitness or trustworthiness to 792 engage in the business of insurance. 793 (h)(8)Demonstrated lack of reasonably adequate knowledge 794 and technical competence to engage in the transactions 795 authorized by the license or appointment. 796 (i)(9)Fraudulent or dishonest practices in the conduct of 797 business under the license or appointment. 798 (j)(10)Misappropriation, conversion, or unlawful 799 withholding of moneys belonging to insurers or insureds or 800 beneficiaries or to others and received in conduct of business 801 under the license or appointment. 802 (k)(11)Unlawfully rebating, attempting to unlawfully 803 rebate, or unlawfully dividing or offering to divide his or her 804 commission with another. 805 (l)(12)Having obtained or attempted to obtain, or having 806 used or using, a license or appointment as agent or customer 807 representative for the purpose of soliciting or handling 808 “controlled business” as defined in s. 626.730 with respect to 809 general lines agents, s. 626.784 with respect to life agents, 810 and s. 626.830 with respect to health agents. 811 (m)(13)Willful failure to comply with, or willful 812 violation of, any proper order or rule of the department or 813 willful violation of any provision of this code. 814 (n)(14)Having been found guilty of or having pleaded 815 guilty or nolo contendere to a felony or a crime punishable by 816 imprisonment of 1 year or more under the law of the United 817 States of America or of any state thereof or under the law of 818 any other country which involves moral turpitude, without regard 819 to whether a judgment of conviction has been entered by the 820 court having jurisdiction of such cases. 821 (o)(15)Fraudulent or dishonest practice in submitting or 822 aiding or abetting any person in the submission of an 823 application for workers’ compensation coverage under chapter 440 824 containing false or misleading information as to employee 825 payroll or classification for the purpose of avoiding or 826 reducing the amount of premium due for such coverage. 827 (p)(16)Sale of an unregistered security that was required 828 to be registered, pursuant to chapter 517. 829 (q)(17)In transactions related to viatical settlement 830 contracts as defined in s. 626.9911: 831 1.(a)Commission of a fraudulent or dishonest act. 832 2.(b)No longer meeting the requirements for initial 833 licensure. 834 3.(c)Having received a fee, commission, or other valuable 835 consideration for his or her services with respect to viatical 836 settlements that involved unlicensed viatical settlement 837 providers or persons who offered or attempted to negotiate on 838 behalf of another person a viatical settlement contract as 839 defined in s. 626.9911 and who were not licensed life agents. 840 4.(d)Dealing in bad faith with viators. 841 (2) Upon receipt of an information or indictment, the 842 department shall immediately temporarily suspend a license or 843 appointment issued under this chapter if the licensee is charged 844 with a felony enumerated in s. 626.207(3). The suspension shall 845 continue if the licensee is found guilty of, or pleads guilty or 846 nolo contendere to, the crime, regardless of whether a judgment 847 or conviction is entered, during a pending appeal. A person may 848 not transact insurance business after suspension of his or her 849 license or appointment. 850 Section 18. Subsection (2) of section 626.641, Florida 851 Statutes, is amended to read: 852 626.641 Duration of suspension or revocation.— 853 (2) No person or appointee under any license or appointment 854 revoked by the department, nor any person whose eligibility to 855 hold same has been revoked by the department, shall have the 856 right to apply for another license or appointment under this 857 code within 2 years afterfromthe effective date of such 858 revocation or, if judicial review of such revocation is sought, 859 within 2 years afterfromthe date of final court order or 860 decree affirming the revocation. An applicant for another 861 license or appointment pursuant to this subsection must apply 862 and qualify for licensure in the same manner as a first-time 863 applicant, and the application may be denied on the same grounds 864 that apply to first-time applicants for licensure pursuant to 865 ss. 626.207, 626.611, and 626.621. In addition, the department 866 mayshallnot grant a new license or appointment or reinstate 867 eligibility to hold such license or appointment if it finds that 868 the circumstance or circumstances for which the eligibility was 869 revoked or for which the previous license or appointment was 870 revoked still exist or are likely to recur, or;if an 871 individual’s license as agent or customer representative or 872 eligibility to hold same has been revoked upon the ground 873 specified in s. 626.611(1)(l)s.626.611(12), the department874shall refuse to grant or issue any new license or appointment so875applied for. 876 Section 19. Section 626.733, Florida Statutes, is amended 877 to read: 878 626.733 Agency firms and corporations; special 879 requirements.—If a sole proprietorship, partnership, 880 corporation, or association holds an agency contract, all 881 members thereof who solicit, negotiate, or effect insurance 882 contracts, and all officers and stockholders of the corporation 883 who solicit, negotiate, or effect insurance contracts, mustare884required toqualify and be licensed individually as agents or 885 customer representatives,;and all of such agents must be 886 individually appointed as to each property and casualty insurer 887 entering into an agency contract with such agency. Eachsuch888 appointing insureras soon as known to itshall comply with this 889 section and shall determine and require that each agent so 890 associatedin or so connectedwith such agency is likewise 891 appointed as to the same such insurer and for the same type and 892 class of license. However, annoinsurer is not required to 893 comply with the appointment provisions of this section for an 894 agent within an agency who does not solicit, negotiate, or 895 effect insurance contracts for that insurerif such insurer896satisfactorily demonstrates to the department that the insurer897has issued an aggregate net written premium, in an agency, in an898amount of $25,000 or less. 899 Section 20. Paragraphs (a) and (g) of subsection (1) of 900 section 626.7355, Florida Statutes, are amended to read: 901 626.7355 Temporary license as customer representative 902 pending examination.— 903 (1) The department shall issue a temporary customer 904 representative’s license with respect to a person who has 905 applied for such license upon finding that the person: 906 (a) Has filed an application for a customer 907 representative’s licenseor a limited customer representative’s908licenseand has paid any fees required under s. 624.501(5) in 909 connection with such applicationfor a customer representative’s910license or limited customer representative’s license. 911 (g) Is not disqualified from licensure by the department 912 under s. 626.207Within the last 5 years, has not been913convicted, found guilty or pleaded nolo contendere to a felony914or a crime punishable by imprisonment of 1 year or more under915the law of any municipality, county, state, territory, or916country, whether or not a judgment of conviction has been917entered. 918 Section 21. Effective January 1, 2015, section 626.747, 919 Florida Statutes, is repealed. 920 Section 22. Subsection (1) of section 626.7845, Florida 921 Statutes, is amended to read: 922 626.7845 Prohibition against unlicensed transaction of life 923 insurance.— 924 (1) An individual may not solicit or sell variable life 925 insurance, variable annuity contracts, or any other 926 indeterminate value or variable contract as defined in s. 927 627.8015,unless the individual has successfully completed a 928 licensure examination relating to variableannuitycontracts 929 authorized and approved by the department. 930 Section 23. Effective January 1, 2015, subsection (1) of 931 section 626.8411, Florida Statutes, is amended to read: 932 626.8411 Application of Florida Insurance Code provisions 933 to title insurance agents or agencies.— 934 (1) The following provisionsof part IIapplicable to 935 general lines agents or agencies also apply to title insurance 936 agents or agencies: 937 (a) Section 626.734, relating to liability of certain 938 agents. 939 (b) Section 626.0428(4)(a) and (b)626.747, relating to 940 branch agencies. 941 (c) Section 626.749, relating to place of business in 942 residence. 943 (d) Section 626.753, relating to sharing of commissions. 944 (e) Section 626.754, relating to rights of agent following 945 termination of appointment. 946 Section 24. Subsection (2) of section 626.861, Florida 947 Statutes, is amended to read: 948 626.861 Insurer’s officers, insurer’s employees, reciprocal 949 insurer’s representatives; adjustments by.— 950 (2) If any such officer, employee, attorney, or agent in 951 connection with the adjustment of any such claim, loss, or 952 damage engages inany ofthe misconduct described in or 953 contemplated by s. 626.611(1)(f)s.626.611(6), the office may 954 suspend or revoke the insurer’s certificate of authority. 955 Section 25. Section 626.862, Florida Statutes, is amended 956 to read: 957 626.862 Agents; adjustments by.—A licensed and appointed 958 insurance agent may, without being licensed as an adjuster, 959 adjust losses for the insurer represented by him or her as agent 960 ifsoauthorized by the insurer. The license and appointment of 961 the agent may be suspended or revoked for violation of or 962 misconduct prohibited by s. 626.611(1)(f)s.626.611(6). 963 Section 26. Subsection (2) of section 626.9272, Florida 964 Statutes, is amended to read: 965 626.9272 Licensing of nonresident surplus lines agents.— 966 (2) The department may not issue a license unless the 967 applicant satisfies the same licensing requirements under s. 968 626.927 as required of a resident surplus lines agent, excluding 969 the required experience or coursework and examination. The 970 department may refuse to issue such license or appointment if 971whenit has reason to believe that any of the grounds exist for 972 denial, suspension, or revocation of a license as set forth in 973 ss. 626.611 and 626.621. 974 Section 27. Section 627.4553, Florida Statutes, is created 975 to read: 976 627.4553 Recommendations to surrender.—If an insurance 977 agent recommends the surrender of an annuity or life insurance 978 policy containing a cash value but does not recommend that the 979 proceeds from the surrender be used to fund or purchase another 980 annuity or life insurance policy, before execution of the 981 surrender, the insurance agent, or the insurance company if no 982 agent is involved, must provide, on a form that satisfies the 983 requirements of the rule adopted by the department, information 984 relating to the annuity or policy to be surrendered. Such 985 information must include, but need not limited to, the amount of 986 any surrender charge, the loss of any minimum interest rate 987 guarantees, the amount of any tax consequences resulting from 988 the transaction, the amount of any forfeited death benefit, and 989 the value of any other investment performance guarantees being 990 forfeited as a result of the transaction. This section also 991 applies to a person performing insurance agent activities 992 pursuant to an exemption from licensure under this part. 993 Section 28. Paragraph (b) of subsection (4) of section 994 627.7015, Florida Statutes, is amended to read: 995 627.7015 Alternative procedure for resolution of disputed 996 property insurance claims.— 997 (4) The department shall adopt by rule a property insurance 998 mediation program to be administered by the department or its 999 designee. The department may also adopt special rules which are 1000 applicable in cases of an emergency within the state. The rules 1001 shall be modeled after practices and procedures set forth in 1002 mediation rules of procedure adopted by the Supreme Court. The 1003 rules shall provide for: 1004 (b) Qualifications, denial of application, suspension, 1005 revocation, and other penalties forofmediators as provided in 1006 s. 627.745 andinthe Florida Rules forofCertified and Court 1007 AppointedCourt AppointedMediators, and for such other1008individuals as are qualified by education, training, or1009experience as the department determines to be appropriate. 1010 Section 29. Paragraph (c) of subsection (2) of section 1011 627.706, Florida Statutes, is amended to read: 1012 627.706 Sinkhole insurance; catastrophic ground cover 1013 collapse; definitions.— 1014 (2) As used in ss. 627.706-627.7074, and as used in 1015 connection with any policy providing coverage for a catastrophic 1016 ground cover collapse or for sinkhole losses, the term: 1017 (c) “Neutral evaluator” means a professional engineer or a 1018 professional geologist who has completed a course of study in 1019 alternative dispute resolution designed or approved by the 1020 department for use in the neutral evaluation process,andwho is 1021 determined by the department to be fair and impartial, and who 1022 is not otherwise ineligible for certification as provided in s. 1023 627.7074. 1024 Section 30. Subsections (7) and (18) of section 627.7074, 1025 Florida Statutes, are amended to read: 1026 627.7074 Alternative procedure for resolution of disputed 1027 sinkhole insurance claims.— 1028 (7) Upon receipt of a request for neutral evaluation, the 1029 department shall provide the parties a list of certified neutral 1030 evaluators. The department shall allow the parties to submit 1031 requests to disqualify evaluators on the list for cause. 1032 (a) The department shall disqualify neutral evaluators for 1033 cause based only on any of the following grounds: 1034 1. A familial relationship exists between the neutral 1035 evaluator and either party or a representative of either party 1036 within the third degree. 1037 2. The proposed neutral evaluator has, in a professional 1038 capacity, previously represented either party or a 1039 representative of either party, in the same or a substantially 1040 related matter. 1041 3. The proposed neutral evaluator has, in a professional 1042 capacity, represented another person in the same or a 1043 substantially related matter and that person’s interests are 1044 materially adverse to the interests of the parties. The term 1045 “substantially related matter” means participation by the 1046 neutral evaluator on the same claim, property, or adjacent 1047 property. 1048 4. The proposed neutral evaluator has, within the preceding 1049 5 years, worked as an employer or employee of aanyparty to the 1050 case. 1051 (b) The department shall deny an application, or suspend or 1052 revoke its certification, of a neutral evaluator to serve in 1053 such capacity if the department finds that one or more of the 1054 following grounds exist: 1055 1. Lack of one or more of the qualifications specified in 1056 this section for certification. 1057 2. Material misstatement, misrepresentation, or fraud in 1058 obtaining or attempting to obtain certification. 1059 3. Demonstrated lack of fitness or trustworthiness to act 1060 as a neutral evaluator. 1061 4. Fraudulent or dishonest practices in the conduct of an 1062 evaluation or in the conduct of financial services business. 1063 5. Violation of any provision of this code or of a lawful 1064 order or rule of the department or aiding, instructing, or 1065 encouraging another party in committing such a violation. 1066 (c)(b)The parties shall appoint a neutral evaluator from 1067 the department list and promptly inform the department. If the 1068 parties cannot agree to a neutral evaluator within 14 business 1069 days, the department shall appoint a neutral evaluator from the 1070 list of certified neutral evaluators. The department shall allow 1071 each party to disqualify two neutral evaluators without cause. 1072 Upon selection or appointment, the department shall promptly 1073 refer the request to the neutral evaluator. 1074 (d)(c)Within 14 business days after the referral, the 1075 neutral evaluator shall notify the policyholder and the insurer 1076 of the date, time, and place of the neutral evaluation 1077 conference. The conference may be held by telephone, if feasible 1078 and desirable. The neutral evaluator shall make reasonable 1079 efforts to hold the conference within 90 days after the receipt 1080 of the request by the department. Failure of the neutral 1081 evaluator to hold the conference within 90 days does not 1082 invalidate either party’s right to neutral evaluation or to a 1083 neutral evaluation conference held outside this timeframe. 1084 (18) The department shall adopt rules of procedure for the 1085 neutral evaluation process and rules for certifying, denying 1086 certification of, suspending certification of, and revoking 1087 certification as a neutral evaluator. 1088 Section 31. Subsection (3) of section 627.745, Florida 1089 Statutes, is amended, present subsections (4) and (5) of that 1090 section are renumbered as subsections (5) and (6), respectively, 1091 and a new subsection (4) is added to that section, to read: 1092 627.745 Mediation of claims.— 1093 (3)(a)The department shall approveMediators whoto1094 conduct mediations pursuant to this section. All mediatorsmust 1095 file an application under oath and be approved by the department 1096for approval as a mediator. 1097(b)To qualify for approval as a mediator, an individuala1098personmust meet one of the following qualifications: 1099 (a)1.Possess active certification as a Florida Supreme 1100 Court certified circuit court mediator. A Florida Supreme Court 1101 certified circuit court mediator in a lapsed, suspended, 1102 sanctioned, or decertified status is not eligible to participate 1103 in the mediation programa masters or doctorate degree in1104psychology, counseling, business, accounting, or economics, be a1105member of The Florida Bar, be licensed as a certified public1106accountant, or demonstrate that the applicant for approval has1107been actively engaged as a qualified mediator for at least 41108years prior to July 1, 1990. 1109 (b)2.Be an approved department mediator as of July 1, 1110 2014, and have conducted at least one mediation on behalf of the 1111 department within 4 years immediately preceding thatthedate 1112the application for approval is filed with the department, have1113completed a minimum of a 40-hour training program approved by1114the department and successfully passed a final examination1115included in the training program and approved by the department.1116The training program shall include and address all of the1117following:1118a. Mediation theory. 1119b. Mediation process and techniques.1120c. Standards of conduct for mediators.1121d. Conflict management and intervention skills.1122e. Insurance nomenclature.1123 (4) The department shall deny an application, or suspend or 1124 revoke its approval, of a mediator to serve in such capacity if 1125 the department finds that one or more of the following grounds 1126 exist: 1127 (a) Lack of one or more of the qualifications specified in 1128 this section for approval or certification. 1129 (b) Material misstatement, misrepresentation, or fraud in 1130 obtaining or attempting to obtain the approval or certification. 1131 (c) Demonstrated lack of fitness or trustworthiness to act 1132 as a mediator. 1133 (d) Fraudulent or dishonest practices in the conduct of 1134 mediation or in the conduct of business in the financial 1135 services industry. 1136 (e) Violation of any provision of this code or of a lawful 1137 order or rule of the department, violation of the Florida Rules 1138 for Certified and Court Appointed Mediators, or aiding, 1139 instructing, or encouraging another party in committing such a 1140 violation. 1141 1142 The department shall adopt rules for the approval or denial of 1143 mediator applications and the suspension and revocation of 1144 approval of mediators. 1145 Section 32. Paragraph (b) of subsection (1) of section 1146 627.952, Florida Statutes, is amended to read: 1147 627.952 Risk retention and purchasing group agents.— 1148 (1) Any person offering, soliciting, selling, purchasing, 1149 administering, or otherwise servicing insurance contracts, 1150 certificates, or agreements for any purchasing group or risk 1151 retention group to any resident of this state, either directly 1152 or indirectly, by the use of mail, advertising, or other means 1153 of communication, shall obtain a license and appointment to act 1154 as a resident general lines agent, if a resident of this state, 1155 or a nonresident general lines agent if not a resident. Any such 1156 person shall be subject to all requirements of the Florida 1157 Insurance Code. 1158 (b)Any person required to be licensed and appointed under1159this subsection,In order to place business through a Florida 1160 eligibleFlorida eligiblesurplus lines carriercarriers, a 1161 person required to be licensed and appointed under this 1162 subsection must:,1163 1. If a resident of this state, be licensed and appointed 1164 as a surplus lines agent. 1165 2. If not a resident of this state,such person mustbe 1166 licensed and appointed as a surplus lines agent in her or his 1167 state of residence and be licensed and appointed as a 1168 nonresident surplus lines agent in this statefile and maintain1169a fidelity bond in favor of the people of the State of Florida1170executed by a surety company admitted in this state and payable1171to the State of Florida; however, such nonresident is limited to1172the provision of insurance for purchasing groups. The bond must1173be continuous in form and in the amount of not less than1174$50,000, aggregate liability. The bond must remain in force and1175effect until the surety is released from liability by the1176department or until the bond is canceled by the surety. The1177surety may cancel the bond and be released from further1178liability upon 30 days’ prior written notice to the department.1179The cancellation does not affect any liability incurred or1180accrued before the termination of the 30-day period. Upon1181receipt of a notice of cancellation, the department shall1182immediately notify the agent. 1183 Section 33. Subsection (1) of section 648.43, Florida 1184 Statutes, is amended to read: 1185 648.43 Power of attorney; to be approved by department; 1186 filing of copies; notification of transfer bond.— 1187 (1) Every insurer engaged in the writing of bail bonds 1188 through bail bond agents in this state shall submitand have1189approved by the departmenta sample power of attorney to the 1190 office for prior approval, which shallwillbe the only form of 1191 power of attorney the insurer issueswill issueto bail bond 1192 agents in this state. 1193 Section 34. Subsection (3) of section 648.49, Florida 1194 Statutes, is amended to read: 1195 648.49 Duration of suspension or revocation.— 1196 (3) During the period of suspension,orafterrevocation of 1197 the license and until the license is reinstated or a new license 1198 is issued, the former licensee may not engage in or attempt to 1199 profess to engage in any transaction or business for which a 1200 license or appointment is required under this chapter. AAny1201 person who violates this subsection commits a felony of the 1202 third degree, punishable as provided in s. 775.082, s. 775.083, 1203 or s. 775.084. 1204 Section 35. Paragraph (a) of subsection (4) of section 1205 943.0585, Florida Statutes, is amended to read: 1206 943.0585 Court-ordered expunction of criminal history 1207 records.—The courts of this state have jurisdiction over their 1208 own procedures, including the maintenance, expunction, and 1209 correction of judicial records containing criminal history 1210 information to the extent such procedures are not inconsistent 1211 with the conditions, responsibilities, and duties established by 1212 this section. Any court of competent jurisdiction may order a 1213 criminal justice agency to expunge the criminal history record 1214 of a minor or an adult who complies with the requirements of 1215 this section. The court shall not order a criminal justice 1216 agency to expunge a criminal history record until the person 1217 seeking to expunge a criminal history record has applied for and 1218 received a certificate of eligibility for expunction pursuant to 1219 subsection (2). A criminal history record that relates to a 1220 violation of s. 393.135, s. 394.4593, s. 787.025, chapter 794, 1221 s. 796.03, s. 800.04, s. 810.14, s. 817.034, s. 825.1025, s. 1222 827.071, chapter 839, s. 847.0133, s. 847.0135, s. 847.0145, s. 1223 893.135, s. 916.1075, a violation enumerated in s. 907.041, or 1224 any violation specified as a predicate offense for registration 1225 as a sexual predator pursuant to s. 775.21, without regard to 1226 whether that offense alone is sufficient to require such 1227 registration, or for registration as a sexual offender pursuant 1228 to s. 943.0435, may not be expunged, without regard to whether 1229 adjudication was withheld, if the defendant was found guilty of 1230 or pled guilty or nolo contendere to the offense, or if the 1231 defendant, as a minor, was found to have committed, or pled 1232 guilty or nolo contendere to committing, the offense as a 1233 delinquent act. The court may only order expunction of a 1234 criminal history record pertaining to one arrest or one incident 1235 of alleged criminal activity, except as provided in this 1236 section. The court may, at its sole discretion, order the 1237 expunction of a criminal history record pertaining to more than 1238 one arrest if the additional arrests directly relate to the 1239 original arrest. If the court intends to order the expunction of 1240 records pertaining to such additional arrests, such intent must 1241 be specified in the order. A criminal justice agency may not 1242 expunge any record pertaining to such additional arrests if the 1243 order to expunge does not articulate the intention of the court 1244 to expunge a record pertaining to more than one arrest. This 1245 section does not prevent the court from ordering the expunction 1246 of only a portion of a criminal history record pertaining to one 1247 arrest or one incident of alleged criminal activity. 1248 Notwithstanding any law to the contrary, a criminal justice 1249 agency may comply with laws, court orders, and official requests 1250 of other jurisdictions relating to expunction, correction, or 1251 confidential handling of criminal history records or information 1252 derived therefrom. This section does not confer any right to the 1253 expunction of any criminal history record, and any request for 1254 expunction of a criminal history record may be denied at the 1255 sole discretion of the court. 1256 (4) EFFECT OF CRIMINAL HISTORY RECORD EXPUNCTION.—Any 1257 criminal history record of a minor or an adult which is ordered 1258 expunged by a court of competent jurisdiction pursuant to this 1259 section must be physically destroyed or obliterated by any 1260 criminal justice agency having custody of such record; except 1261 that any criminal history record in the custody of the 1262 department must be retained in all cases. A criminal history 1263 record ordered expunged that is retained by the department is 1264 confidential and exempt from the provisions of s. 119.07(1) and 1265 s. 24(a), Art. I of the State Constitution and not available to 1266 any person or entity except upon order of a court of competent 1267 jurisdiction. A criminal justice agency may retain a notation 1268 indicating compliance with an order to expunge. 1269 (a) The person who is the subject of a criminal history 1270 record that is expunged under this section or under other 1271 provisions of law, including former s. 893.14, former s. 901.33, 1272 and former s. 943.058, may lawfully deny or fail to acknowledge 1273 the arrests covered by the expunged record, except when the 1274 subject of the record: 1275 1. Is a candidate for employment with a criminal justice 1276 agency; 1277 2. Is a defendant in a criminal prosecution; 1278 3. Concurrently or subsequently petitions for relief under 1279 this section, s. 943.0583, or s. 943.059; 1280 4. Is a candidate for admission to The Florida Bar; 1281 5. Is seeking to be employed or licensed by or to contract 1282 with the Department of Children and Families, the Division of 1283 Vocational Rehabilitation within the Department of Education, 1284 the Agency for Health Care Administration, the Agency for 1285 Persons with Disabilities, the Department of Health, the 1286 Department of Elderly Affairs, or the Department of Juvenile 1287 Justice or to be employed or used by such contractor or licensee 1288 in a sensitive position having direct contact with children, the 1289 disabled, or the elderly; or 1290 6. Is seeking to be employed or licensed by the Department 1291 of Education, any district school board, any university 1292 laboratory school, any charter school, any private or parochial 1293 school, or any local governmental entity that licenses child 1294 care facilities. 1295 7. Is seeking to be licensed by the Division of Insurance 1296 Agent and Agency Services within the Department of Financial 1297 Services. 1298 Section 36. Paragraph (a) of subsection (4) of section 1299 943.059, Florida Statutes, is amended to read: 1300 943.059 Court-ordered sealing of criminal history records. 1301 The courts of this state shall continue to have jurisdiction 1302 over their own procedures, including the maintenance, sealing, 1303 and correction of judicial records containing criminal history 1304 information to the extent such procedures are not inconsistent 1305 with the conditions, responsibilities, and duties established by 1306 this section. Any court of competent jurisdiction may order a 1307 criminal justice agency to seal the criminal history record of a 1308 minor or an adult who complies with the requirements of this 1309 section. The court shall not order a criminal justice agency to 1310 seal a criminal history record until the person seeking to seal 1311 a criminal history record has applied for and received a 1312 certificate of eligibility for sealing pursuant to subsection 1313 (2). A criminal history record that relates to a violation of s. 1314 393.135, s. 394.4593, s. 787.025, chapter 794, s. 796.03, s. 1315 800.04, s. 810.14, s. 817.034, s. 825.1025, s. 827.071, chapter 1316 839, s. 847.0133, s. 847.0135, s. 847.0145, s. 893.135, s. 1317 916.1075, a violation enumerated in s. 907.041, or any violation 1318 specified as a predicate offense for registration as a sexual 1319 predator pursuant to s. 775.21, without regard to whether that 1320 offense alone is sufficient to require such registration, or for 1321 registration as a sexual offender pursuant to s. 943.0435, may 1322 not be sealed, without regard to whether adjudication was 1323 withheld, if the defendant was found guilty of or pled guilty or 1324 nolo contendere to the offense, or if the defendant, as a minor, 1325 was found to have committed or pled guilty or nolo contendere to 1326 committing the offense as a delinquent act. The court may only 1327 order sealing of a criminal history record pertaining to one 1328 arrest or one incident of alleged criminal activity, except as 1329 provided in this section. The court may, at its sole discretion, 1330 order the sealing of a criminal history record pertaining to 1331 more than one arrest if the additional arrests directly relate 1332 to the original arrest. If the court intends to order the 1333 sealing of records pertaining to such additional arrests, such 1334 intent must be specified in the order. A criminal justice agency 1335 may not seal any record pertaining to such additional arrests if 1336 the order to seal does not articulate the intention of the court 1337 to seal records pertaining to more than one arrest. This section 1338 does not prevent the court from ordering the sealing of only a 1339 portion of a criminal history record pertaining to one arrest or 1340 one incident of alleged criminal activity. Notwithstanding any 1341 law to the contrary, a criminal justice agency may comply with 1342 laws, court orders, and official requests of other jurisdictions 1343 relating to sealing, correction, or confidential handling of 1344 criminal history records or information derived therefrom. This 1345 section does not confer any right to the sealing of any criminal 1346 history record, and any request for sealing a criminal history 1347 record may be denied at the sole discretion of the court. 1348 (4) EFFECT OF CRIMINAL HISTORY RECORD SEALING.—A criminal 1349 history record of a minor or an adult which is ordered sealed by 1350 a court of competent jurisdiction pursuant to this section is 1351 confidential and exempt from the provisions of s. 119.07(1) and 1352 s. 24(a), Art. I of the State Constitution and is available only 1353 to the person who is the subject of the record, to the subject’s 1354 attorney, to criminal justice agencies for their respective 1355 criminal justice purposes, which include conducting a criminal 1356 history background check for approval of firearms purchases or 1357 transfers as authorized by state or federal law, to judges in 1358 the state courts system for the purpose of assisting them in 1359 their case-related decisionmaking responsibilities, as set forth 1360 in s. 943.053(5), or to those entities set forth in 1361 subparagraphs (a)1., 4., 5., 6., and 8. for their respective 1362 licensing, access authorization, and employment purposes. 1363 (a) The subject of a criminal history record sealed under 1364 this section or under other provisions of law, including former 1365 s. 893.14, former s. 901.33, and former s. 943.058, may lawfully 1366 deny or fail to acknowledge the arrests covered by the sealed 1367 record, except when the subject of the record: 1368 1. Is a candidate for employment with a criminal justice 1369 agency; 1370 2. Is a defendant in a criminal prosecution; 1371 3. Concurrently or subsequently petitions for relief under 1372 this section, s. 943.0583, or s. 943.0585; 1373 4. Is a candidate for admission to The Florida Bar; 1374 5. Is seeking to be employed or licensed by or to contract 1375 with the Department of Children and Families, the Division of 1376 Vocational Rehabilitation within the Department of Education, 1377 the Agency for Health Care Administration, the Agency for 1378 Persons with Disabilities, the Department of Health, the 1379 Department of Elderly Affairs, or the Department of Juvenile 1380 Justice or to be employed or used by such contractor or licensee 1381 in a sensitive position having direct contact with children, the 1382 disabled, or the elderly; 1383 6. Is seeking to be employed or licensed by the Department 1384 of Education, any district school board, any university 1385 laboratory school, any charter school, any private or parochial 1386 school, or any local governmental entity that licenses child 1387 care facilities; or 1388 7. Is attempting to purchase a firearm from a licensed 1389 importer, licensed manufacturer, or licensed dealer and is 1390 subject to a criminal history check under state or federal law. 1391 8. Is seeking to be licensed by the Division of Insurance 1392 Agent and Agency Services within the Department of Financial 1393 Services. 1394 Section 37. Except as otherwise expressly provided in this 1395 act, and except for this section which shall take effect upon 1396 becoming law, this act shall take effect July 1, 2014.