Bill Text: FL S1252 | 2011 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Insurance
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2011-05-02 - Read 2nd time -SJ 656, 670, 672 [S1252 Detail]
Download: Florida-2011-S1252-Comm_Sub.html
Bill Title: Insurance
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2011-05-02 - Read 2nd time -SJ 656, 670, 672 [S1252 Detail]
Download: Florida-2011-S1252-Comm_Sub.html
Florida Senate - 2011 CS for SB 1252 By the Committee on Budget; and Senator Smith 576-04684-11 20111252c1 1 A bill to be entitled 2 An act relating to insurance; amending s. 120.80, 3 F.S.; allowing the Division of Administrative Hearings 4 to have final order authority with respect to certain 5 license applicants; amending ss. 440.12 and 440.20, 6 F.S.; authorizing the payment of workers’ compensation 7 benefits through the use of a prepaid card; providing 8 requirements; amending s. 624.402, F.S.; revising 9 provisions relating to certain insurers serving 10 nonresidents domiciled outside the United States who 11 are exempt from requirements to obtain a certificate 12 of authority; amending s. 626.207, F.S., relating to 13 penalties; providing definitions; barring persons 14 convicted of certain crimes from licensure as an 15 insurance agent; revising provisions relating to 16 disqualifying periods for persons convicted of other 17 crimes; providing an exemption from the limitation 18 against state employment for persons convicted of 19 certain crimes; amending s. 627.4133, F.S.; changing 20 the designated person or persons who must be notified 21 by an insurer from the “insured” to the “first-named 22 insured” in situations involving the nonrenewal, 23 renewal premium, cancellation, or termination of 24 workers’ compensation, employer liability, or certain 25 property and casualty insurance coverage; specifying 26 the effective date for the cancellation of a policy 27 requested in writing by the insured; amending s. 28 627.4137, F.S.; requiring a claimant’s request about 29 insurance coverage to be appropriately served upon the 30 disclosing entity; amending s. 627.442, F.S.; 31 providing that premium audits for workers’ 32 compensation or property and casualty coverages are 33 not required; providing exceptions; amending s. 34 627.7277, F.S.; making a conforming change that 35 specifies the “first-named insured” as the person who 36 is to receive notification of a renewal premium; 37 amending s. 627.728, F.S.; changing the designated 38 person or persons who must be notified by an insurer 39 from the “insured” to the “first-named insured” in 40 certain situations involving the cancellation or 41 nonrenewal of motor vehicle insurance coverage; making 42 a conforming change that specifies the “first-named 43 insured’s insurance agent” as a person who is to 44 receive certain notifications relating to motor 45 vehicle insurance coverage; amending s. 627.7281, 46 F.S.; making a conforming change that specifies the 47 “first-named insured” as the person who is to receive 48 notification of cancellation of motor vehicle 49 insurance coverage; creating s. 634.1711, F.S.; 50 allowing a consumer to purchase a service agreement 51 for a premium negotiated with the salesperson; 52 authorizing the service agreement company to establish 53 the premium rate; amending s. 634.403, F.S.; exempting 54 certain persons from service warranty licensure 55 requirements under certain circumstances; providing 56 effective dates. 57 58 Be It Enacted by the Legislature of the State of Florida: 59 60 Section 1. Subsection (17) of section 120.80, Florida 61 Statutes, is created to read: 62 120.80 Exceptions and special requirements; agencies.— 63 (17) DEPARTMENT OF FINANCIAL SERVICES.—Notwithstanding ss. 64 120.569, 120.57, and 120.60, if an applicant for licensure as an 65 agent or adjuster pursuant to the Florida Insurance Code has 66 been convicted of, or pled guilty or nolo contendere to, a 67 felony, the disqualifying periods have been met, and the 68 department has denied the application pursuant to s. 626.207(6), 69 the division shall have final order authority. 70 Section 2. Subsection (1) of section 440.12, Florida 71 Statutes, is amended to read: 72 440.12 Time for commencement and limits on weekly rate of 73 compensation.— 74 (1)NoCompensation is notshall beallowed for the first 7 75 days of the disability, except for benefits provided underfor76ins. 440.13. However, if the injury results in disability of 77 more than 21 days, compensation shall be allowed from the 78 commencement of the disability. 79 (a) All weekly compensation payments, except for the first 80 payment, shall be paid by check or, if authorized by the 81 employee, on a prepaid card pursuant to paragraph (b) or 82 deposited directly into the employee’s account at a financial 83 institution. As used in this subsection, the term “financial 84 institution” means a financial institution as defined in s. 85 655.005(1)(h). 86 (b) Upon receipt of authorization by the employee as 87 provided in paragraph (a), a carrier may use a prepaid card to 88 deliver compensation payments to an employee if the employee: 89 1. Has at least one means of accessing his or her entire 90 compensation payment once per week without incurring fees; 91 2. Has the ability to make point-of-sale purchases without 92 incurring fees from the financial institution issuing the 93 prepaid card; and 94 3. Is provided with terms and conditions of the prepaid 95 card program, including a description of any fees that may be 96 assessed. 97 (c) Each carrier shall keep a record of all payments made 98 under this subsection and the time and manner of such payments, 99 and shall furnish these records, or a report based on these 100 records, to the Division of Insurance Fraud and the Division of 101 Workers’ Compensation upon request. 102 (d) The department may adopt rules to administer this 103 subsection. 104 Section 3. Paragraph (a) of subsection (1) of section 105 440.20, Florida Statutes, is amended to read: 106 440.20 Time for payment of compensation and medical bills; 107 penalties for late payment.— 108 (1)(a) Unless the carrieritdenies compensability or 109 entitlement to benefits, the carrier shall pay compensation 110 directly to the employee as required by ss. 440.14, 440.15, and 111 440.16, in accordance with the obligations set forth in those 112suchsections. Upon receipt of the employee’s authorization as 113 provided in s. 440.12(1)If authorized by the employee, the 114 carrier’s obligation to pay compensation directly to the 115 employee is satisfied when the carrier directly deposits, by 116 electronic transfer or other means, compensation into the 117 employee’s account at a financial institution or onto a prepaid 118 card in accordance with s. 440.12(1). As used in this paragraph, 119 the term “financial institution” means a financial institution 120 as defined in s. 655.005(1)(h). Compensation by direct deposit 121 or through the use of a prepaid card is considered paid on the 122 date the funds become available for withdrawal by the employee. 123 Section 4. Subsection (8) of section 624.402, Florida 124 Statutes, is amended to read: 125 624.402 Exceptions, certificate of authority required.—A 126 certificate of authority shall not be required of an insurer 127 with respect to: 128 (8) An insurer domiciled outside the United States covering 129 only persons who, at the time of issuance or renewal, are 130 nonresidents of the United States. 131 (a) In order to qualify for this exemption, the insurer: 132 1. Must register with the office via a letter of 133 notification upon commencing business from this state. 134 2. Must provide the following information to the office 135 annually by March 1: 136 a. The name of the insurer; the insurer’s country of 137 domicile; the address of the insurer’s principal office and 138 office in this state; the names of the owners of the insurer and 139 their percentage of ownership; the names of the officers and 140 directors of the insurer; the name, e-mail, and telephone number 141 of a contact person for the insurer; and the number of 142 individuals who are employed by the insurer or its affiliates in 143 this state; 144 b. The type of products offered by the insurer; 145 c. A statement from the applicable regulatory body of the 146 insurer’s domicile certifying that the insurer is licensed or 147 registered in that domicile; and 148 d. A copy of the filings required by the applicable 149 regulatory body of the insurer’s domicile. 150 3. Or any affiliated person as defined in s. 624.04 under 151 common ownership or control with the insurer, may not solicit, 152 sell, or accept an application for any insurance policy or 153 contract to be delivered or issued for delivery to any 154 individual other than a nonresident. 155 (b) All policies or certificates delivered to nonresidents 156 in this state must include the following statement in a 157 contrasting color and at least 10-point type: “The policy 158 providing your coverage and the insurer providing this policy 159 have not been approved by the Florida Office of Insurance 160 Regulation.” 161 (c) If the insurer ceases to do business from this state, 162 the insurer must agree to provide written notification to the 163 office within 30 days after cessation. 164 (d) Subject to the limitations contained in this 165 subsection, services, including those listed in s. 624.10, may 166 be provided by the insurer or an affiliated person as defined in 167 s. 624.04 under common ownership or control with the insurer. 168 (e) An alien insurer transacting insurance in this state 169 without complying with this subsection is in violation of this 170 chapter and subject to the penalties under s. 624.15. 171 (f) An insurer that holds a certificate of authority in 172 this state may issue and deliver policies to nonresidents at 173 temporary or secondary addresses in this state, along with a 174 notice that the policy form and rate is not subject to the 175 approval of the Office of Insurance Regulation. 176 (g) The term “nonresident” means an individual who resides 177 in and maintains a physical place of domicile in a country other 178 than the United States, which he or she recognizes as and 179 intends to maintain as his or her permanent home. The term does 180 not include an unauthorized immigrant present in the United 181 States. Notwithstanding any other provision of law, it is 182 conclusively presumed that an individual is a resident of the 183 United States if such individual: 184 1. Has had his or her principal place of domicile in the 185 United States for 180 days or more in the 365 days before 186 issuance or renewal the policy; 187 2. Has registered to vote in any state; 188 3. Has made a statement of domicile in any state; or 189 4. Has filed for homestead tax exemption on property in any 190 state. 191(a) Life insurance policies or annuity contracts issued by192an insurer domiciled outside the United States covering only193persons who, at the time of issuance, are not residents of the194United States and are not nonresidents illegally residing in the195United States, provided:1961. The insurer must currently be an authorized insurer in197its country of domicile as to the kind or kinds of insurance198proposed to be offered and must have been such an insurer for199not fewer than the immediately preceding 3 years, or must be the200wholly owned subsidiary of such authorized insurer or must be201the wholly owned subsidiary of an already eligible authorized202insurer as to the kind or kinds of insurance proposed for a203period of not fewer than the immediately preceding 3 years.204However, the office may waive the 3-year requirement if the205insurer has operated successfully for a period of at least the206immediately preceding year and has capital and surplus of not207less than $25 million.2082. Before the office may grant eligibility, the requesting209insurer shall furnish the office with a duly authenticated copy210of its current annual financial statement, in English, and with211all monetary values therein expressed in United States dollars,212at an exchange rate then-current and shown in the statement, in213the case of statements originally made in the currencies of214other countries, and with such additional information relative215to the insurer as the office may request.2163. The insurer must have and maintain surplus as to217policyholders of not less than $15 million. Any such surplus as218to policyholders shall be represented by investments consisting219of eligible investments for like funds of like domestic insurers220under part II of chapter 625; however, any such surplus as to221policyholders may be represented by investments permitted by the222domestic regulator of such alien insurance company if such223investments are substantially similar in terms of quality,224liquidity, and security to eligible investments for like funds225of like domestic insurers under part II of chapter 625.2264. The insurer must be of good reputation as to the227providing of service to its policyholders and the payment of228losses and claims.2295. To maintain eligibility, the insurer shall furnish the230office within the time period specified in s.624.424(1)(a) a231duly authenticated copy of its current annual and quarterly232financial statements, in English, and with all monetary values233therein expressed in United States dollars, at an exchange rate234then-current and shown in the statement, in the case of235statements originally made in the currencies of other countries,236and with such additional information relative to the insurer as237the office may request.2386. An insurer receiving eligibility under this subsection239shall agree to make its books and records pertaining to its240operations in this state available for inspection during normal241business hours upon request of the office.2427. The insurer shall provide to the applicant for the243policy or contract a copy of the most recent quarterly financial244statements of the insurer providing, in clear and conspicuous245language:246a. The date of organization of the insurer.247b. The identity of and rating assigned by each recognized248insurance company rating organization that has rated the insurer249or, if applicable, that the insurer is unrated.250c. That the insurer does not hold a certificate of251authority issued in this state and that the office does not252exercise regulatory oversight over the insurer.253d. The identity and address of the regulatory authority254exercising oversight of the insurer.255 256This paragraph does not impose upon the office any duty or257responsibility to determine the actual financial condition or258claims practices of any unauthorized insurer, and the status of259eligibility, if granted by the office, indicates only that the260insurer appears to be financially sound and to have satisfactory261claims practices and that the office has no credible evidence to262the contrary.263(b) If at any time the office has reason to believe that an264insurer issuing policies or contracts pursuant to this265subsection is insolvent or is in unsound financial condition,266does not make reasonable prompt payment of benefits, or is no267longer eligible under the conditions specified in this268subsection, the office may conduct an examination or269investigation in accordance with s.624.316, s.624.3161, or s.270624.320and, if the findings of such examination or271investigation warrant, may withdraw the eligibility of the272insurer to issue policies or contracts pursuant to this273subsection without having a certificate of authority issued by274the office.275(c) This subsection does not provide an exception to the276agent licensure requirements of chapter 626. Any insurer issuing277policies or contracts pursuant to this subsection shall appoint278the agents that the insurer uses to sell such policies or279contracts as provided in chapter 626.280(d) An insurer issuing policies or contracts pursuant to281this subsection is subject to part IX of chapter 626, Unfair282Insurance Trade Practices, and the office may take such actions283against the insurer for a violation as are provided in that284part.285(e) Policies and contracts issued pursuant to this286subsection are not subject to the premium tax specified in s.287624.509.288(f) Applications for life insurance coverage offered under289this subsection must contain, in contrasting color and not less290than 12-point type, the following statement on the same page as291the applicant’s signature:292 293This policy is primarily governed by the laws of a294foreign country. As a result, all of the rating and295underwriting laws applicable to policies filed in this296state do not apply to this coverage, which may result297in your premiums being higher than would be298permissible under a Florida-approved policy. Any299purchase of individual life insurance should be300considered carefully, as future medical conditions may301make it impossible to qualify for another individual302life policy. If the insurer issuing your policy303becomes insolvent, this policy is not covered by the304Florida Life and Health Insurance Guaranty305Association. For information concerning individual306life coverage under a Florida-approved policy, consult307your agent or the Florida Department of Financial308Services.309 310(g) All life insurance policies and annuity contracts311issued pursuant to this subsection must contain on the first312page of the policy or contract, in contrasting color and not313less than 10-point type, the following statement:314 315The benefits of the policy providing your coverage are316governed primarily by the law of a country other than317the United States.318 319(h) All single-premium life insurance policies and single320premium annuity contracts issued to persons who are not321residents of the United States and are not nonresidents322illegally residing in the United States pursuant to this323subsection shall be subject to the provisions of chapter 896.324 Section 5. Effective upon this act becoming a law, section 325 626.207, Florida Statutes, is amended to read: 326 626.207Department rulemaking authority; waiting periods327for applicants;Penalties against licensees.— 328 (1) As used in this section, the term: 329 (a) “Financial services business” means any financial 330 activity regulated by the Department of Financial Services, the 331 Office of Insurance Regulation, or the Office of Financial 332 Regulation. 333 (b) “First-degree felony” and “capital felony” include all 334 felonies designated as such by state law, as well as any felony 335 so designated in the jurisdiction in which the plea is entered 336 or judgment is rendered. 337(1) The department shall adopt rules establishing specific338waiting periods for applicants to become eligible for licensure339following denial, suspension, or revocation pursuant to s.340626.611, s.626.621, s.626.8437, s.626.844, s.626.935, s.341634.181, s.634.191, s.634.320, s.634.321, s.634.422, s.342634.423, s.642.041, or s.642.043. The purpose of the waiting343periods is to provide sufficient time to demonstrate reformation344of character and rehabilitation. The waiting periods shall vary345based on the type of conduct and the length of time since the346conduct occurred and shall also be based on the probability that347the propensity to commit illegal conduct has been overcome. The348waiting periods may be adjusted based on aggravating and349mitigating factors established by rule and consistent with this350purpose.351 (2) An applicant who commits a first-degree felony; a 352 capital felony; a felony involving money laundering, fraud, or 353 embezzlement; or a felony directly related to a financial 354 services business is permanently barred from applying for a 355 license under this part. This bar applies to convictions, guilty 356 pleas, or nolo contendere pleas, regardless of adjudication, by 357 an applicant, officer, director, majority owner, partner, 358 manager, or other person who manages or controls an applicant. 359 (3) For all other crimes not included in subsection (2), 360 the department shall adopt rules establishing the process and 361 application of disqualifying periods: 362 (a) A 15-year disqualifying period for all felonies 363 involving moral turpitude that are not specifically included in 364 the permanent bar in subsection (2). 365 (b) A 7-year disqualifying period for all felonies to which 366 the permanent bar in subsection (2) and the 15 year 367 disqualifying period in paragraph (a) do not apply. 368 (c) A 7-year disqualifying period for all misdemeanors 369 directly related to the financial services business. 370 (4) The department shall adopt rules providing for 371 additional disqualifying periods due to the commitment of 372 multiple crimes and other factors reasonably related to the 373 applicant’s criminal history. The rules shall provide for 374 mitigating and aggravating factors. However, mitigation may not 375 result in a period of disqualification of less than 7 years and 376 may not mitigate the disqualifying periods in paragraphs (3)(b) 377 and (c). 378 (5) For purposes of this section, the disqualifying periods 379 begin upon the applicant’s final release from supervision or 380 upon completion of the applicant’s criminal sentence, including 381 payment of fines, restitution, and court costs, for the crime 382 for which the disqualifying period applies. 383 (6) After the disqualifying period has been met, the burden 384 is on the applicant to demonstrate that the applicant has been 385 rehabilitated, does not pose a risk to the insurance buying 386 public, is fit and trustworthy to engage in the business of 387 insurance pursuant to s. 626.611(7), and is otherwise qualified 388 for licensure. Hearings shall be conducted in accordance with s. 389 120.80(17). 390 (7)(2)The department shall adopt rules establishing 391 specific penalties against licensees in accordance with ss. 392 626.641 and 626.651 for violations of s. 626.611, s. 626.621, s. 393 626.8437, s. 626.844, s. 626.935, s. 634.181, s. 634.191, s. 394 634.320, s. 634.321, s. 634.422, s. 634.423, s. 642.041, or s. 395 642.043. The purpose of the revocation or suspension is to 396 provide a sufficient penalty to deter future violations of the 397 Florida Insurance Code. The imposition of a revocation or the 398 length of suspension shall be based on the type of conduct and 399 the probability that the propensity to commit further illegal 400 conduct has been overcome at the time of eligibility for 401 relicensure. Therevocation or thelength of suspension may be 402 adjusted based on aggravating or mitigating factors, established 403 by rule and consistent with this purpose. 404 (8) The provisions of s. 112.011 do not apply to applicants 405 for licensure under the Florida Insurance Code, including, but 406 not limited to agents, agencies, adjusters, adjusting firms, 407 customer representatives, or managing general agents. 408 Section 6. Paragraphs (a) and (b) of subsection (1), 409 paragraphs (a) and (b) of subsection (2), and subsection (4) of 410 section 627.4133, Florida Statutes, are amended to read: 411 627.4133 Notice of cancellation, nonrenewal, or renewal 412 premium.— 413 (1) Except as provided in subsection (2): 414 (a) An insurer issuing a policy providing coverage for 415 workers’ compensation and employer’s liability insurance, 416 property, casualty, except mortgage guaranty, surety, or marine 417 insurance, other than motor vehicle insurance subject to s. 418 627.728, shall give the first-namednamedinsured at least 45 419 days’ advance written notice of nonrenewal or of the renewal 420 premium. If the policy is not to be renewed, the written notice 421 mustshallstate the reason or reasonsas towhy the policy is 422 not to be renewed. This requirement applies only if the insured 423 has furnished all of the necessary information so as to enable 424 the insurer to develop the renewal premium beforeprior tothe 425 expiration date of the policyto be renewed. 426 (b) An insurer issuing a policy providing coverage for 427 property, casualty, except mortgage guaranty, surety, or marine 428 insurance, other than motor vehicle insurance subject to s. 429 627.728 or s. 627.7281, shall give the first-namednamedinsured 430 written notice of cancellation or termination other than 431 nonrenewal at least 45 days beforeprior tothe effective date 432 of the cancellation or termination, including in the written 433 notice the reason or reasons for the cancellation or 434 termination, except that: 435 1. IfWhencancellation is for nonpayment of premium, at 436 least 10 days’ written notice of cancellation accompanied by the 437 reason for cancellation musttherefor shallbe given. As used in 438 this subparagraph and s. 440.42(3), the term “nonpayment of 439 premium” means failure of the named insured to discharge when 440 due any of her or his obligations in connection with the payment 441 of premiums on a policy or any installment of such premium, 442 whether the premium is payable directly to the insurer or its 443 agent or indirectly under any premium finance plan or extension 444 of credit, or failure to maintain membership in an organization 445 if such membership is a condition precedent to insurance 446 coverage. The term“Nonpayment of premium”also means the 447 failure of a financial institution to honor an insurance 448 applicant’s check after delivery to a licensed agent for payment 449 of a premium, even if the agent has previously delivered or 450 transferred the premium to the insurer. If a dishonored check 451 represents the initial premium payment, the contract and all 452 contractual obligations areshall bevoid ab initio unless the 453 nonpayment is cured within the earlier of 5 days after actual 454 notice by certified mail is received by the applicant or 15 days 455 after notice is sent to the applicant by certified mail or 456 registered mail., andIf the contract is void, any premium 457 received by the insurer from a third party mustshallbe 458 refunded to that party in full.; and459 2. IfWhensuch cancellation or termination occurs during 460 the first 90 days during which the insurance is in force and the 461 insurance is canceled or terminated for reasons other than 462 nonpayment of premium, at least 20 days’ written notice of 463 cancellation or termination accompanied by the reason for 464 cancellation musttherefor shallbe given except where there has 465 been a material misstatement or misrepresentation or failure to 466 comply with the underwriting requirements established by the 467 insurer. 468 469 After the policy has been in effect for 90 days,nosuch policy 470 may notshallbe canceled by the insurer except when there has 471 been a material misstatement, a nonpayment of premium, a failure 472 to comply with underwriting requirements established by the 473 insurer within 90 days afterofthe date of effectuation of 474 coverage, or a substantial change in the risk covered by the 475 policy or when the cancellation is for all insureds under such 476 policies for a given class of insureds. This subsection does not 477 apply to individually rated risks having a policy term of less 478 than 90 days. 479 (2) With respect to any personal lines or commercial 480 residential property insurance policy, including, but not 481 limited to, any homeowner’s, mobile home owner’s, farmowner’s, 482 condominium association, condominium unit owner’s, apartment 483 building, or other policy covering a residential structure or 484 its contents: 485 (a) The insurer shall give the first-namednamedinsured at 486 least 45 days’ advance written notice of the renewal premium. 487 (b) The insurer shall give the first-namednamedinsured 488 written notice of nonrenewal, cancellation, or termination at 489 least 100 days beforeprior tothe effective date of the 490 nonrenewal, cancellation, or termination. However, the insurer 491 shall give at least 100 days’ written notice, or written notice 492 by June 1, whichever is earlier, for any nonrenewal, 493 cancellation, or termination that would be effective between 494 June 1 and November 30. The notice must include the reason or 495 reasons for the nonrenewal, cancellation, or termination, except 496 that: 497 1. The insurer shall give the first-namednamedinsured 498 written notice of nonrenewal, cancellation, or termination at 499 least 180 days beforeprior tothe effective date of the 500 nonrenewal, cancellation, or termination for a first-namednamed501 insured whose residential structure has been insured by that 502 insurer or an affiliated insurer for at least a 5-year period 503 immediately beforeprior tothe date of the written notice. 504 2. IfWhencancellation is for nonpayment of premium, at 505 least 10 days’ written notice of cancellation accompanied by the 506 reason for cancellation musttherefor shallbe given. As used in 507 this subparagraph, the term “nonpayment of premium” means 508 failure of the named insured to discharge when due any of her or 509 his obligations in connection with the payment of premiums on a 510 policy or any installment of such premium, whether the premium 511 is payable directly to the insurer or its agent or indirectly 512 under any premium finance plan or extension of credit, or 513 failure to maintain membership in an organization if such 514 membership is a condition precedent to insurance coverage. The 515 term“Nonpayment of premium”also means the failure of a 516 financial institution to honor an insurance applicant’s check 517 after delivery to a licensed agent for payment of a premium, 518 even if the agent has previously delivered or transferred the 519 premium to the insurer. If a dishonored check represents the 520 initial premium payment, the contract and all contractual 521 obligations areshall bevoid ab initio unless the nonpayment is 522 cured within the earlier of 5 days after actual notice by 523 certified mail is received by the applicant or 15 days after 524 notice is sent to the applicant by certified mail or registered 525 mail., andIf the contract is void, any premium received by the 526 insurer from a third party mustshallbe refunded to that party 527 in full. 528 3. IfWhensuch cancellation or termination occurs during 529 the first 90 days during which the insurance is in force and the 530 insurance is canceled or terminated for reasons other than 531 nonpayment of premium, at least 20 days’ written notice of 532 cancellation or termination accompanied by the reason for 533 cancellation musttherefor shallbe given except where there has 534 been a material misstatement or misrepresentation or failure to 535 comply with the underwriting requirements established by the 536 insurer. 537 4. The requirement for providing written notice of 538 nonrenewal by June 1 of any nonrenewal that would be effective 539 between June 1 and November 30 does not apply to the following 540 situations, but the insurer remains subject to the requirement 541 to provide such notice at least 100 days beforeprior tothe 542 effective date of nonrenewal: 543 a. A policy that is nonrenewed due to a revision in the 544 coverage for sinkhole losses and catastrophic ground cover 545 collapse pursuant to s. 627.706, as amended by s. 30, chapter 546 2007-1, Laws of Florida. 547 b. A policy that is nonrenewed by Citizens Property 548 Insurance Corporation, pursuant to s. 627.351(6), for a policy 549 that has been assumed by an authorized insurer offering 550 replacement or renewal coverage to the policyholder. 551 552 After the policy has been in effect for 90 days, the policy may 553shallnot be canceled by the insurer except when there has been 554 a material misstatement, a nonpayment of premium, a failure to 555 comply with underwriting requirements established by the insurer 556 within 90 days of the date of effectuation of coverage, or a 557 substantial change in the risk covered by the policy or ifwhen558 the cancellation is for all insureds under such policies for a 559 given class of insureds. This paragraph does not apply to 560 individually rated risks having a policy term of less than 90 561 days. 562 (4) Notwithstandingthe provisions ofs. 440.42(3), if 563 cancellation of a policy providing coverage for workers’ 564 compensation and employer’s liability insurance is requested in 565 writing by the insured, such cancellation isshall beeffective 566 on the date requested by the insured, or if no date is 567 specified, cancellation is effective as of the date of the 568 written requestthe carrier sends the notice of cancellation to569the insured. The carrier is not required to send notice of 570 cancellation to the insured if the cancellation is requested in 571 writing. Any retroactive assumption of coverage and liabilities 572 under a policy providing workers’ compensation and employer’s 573 liability insurance may not exceed 21 days. 574 Section 7. Subsection (3) is added to section 627.4137, 575 Florida Statutes, to read: 576 627.4137 Disclosure of certain information required.— 577 (3) Any request made to a self-insured corporation pursuant 578 to this section shall be sent by certified mail to the 579 registered agent of the disclosing entity. 580 Section 8. Section 627.442, Florida Statutes, is amended to 581 read: 582 627.442 Insurance contracts.— 583 (1) A person who requires a workers’ compensation insurance 584 policy pursuant to a construction contract may not reject a 585 workers’ compensation insurance policy issued by a self 586 insurance fund that is subject to part V of chapter 631 based 587 upon the self-insurance fund not being rated by a nationally 588 recognized insurance rating service. 589 (2) Notwithstanding s. 440.381(3), premium audits are not 590 required for workers’ compensation or property and casualty 591 coverages, except as provided by the insurance policy, by an 592 order of the office, or at least every 2 years if requested by 593 the employer. 594 Section 9. Subsection (2) of section 627.7277, Florida 595 Statutes, is amended to read: 596 627.7277 Notice of renewal premium.— 597 (2) An insurer shall mail or deliver to the first-named 598 insuredits policyholderat least 30 days’ advance written 599 notice of the renewal premium for the policy. 600 Section 10. Paragraph (a) of subsection (3), paragraphs (a) 601 and (d) of subsection (4), and subsections (5) and (6) of 602 section 627.728, Florida Statutes, are amended to read: 603 627.728 Cancellations; nonrenewals.— 604 (3)(a)NoNotice of cancellation of a policy to which this 605 section applies is notshall beeffective unless mailed or 606 delivered by the insurer to the first-namednamedinsured and to 607 the first-namednamedinsured’s insurance agent at least 45 days 608 beforeprior tothe effective date of cancellation, except that, 609 ifwhencancellation is for nonpayment of premium, at least 10 610 days’ notice of cancellation accompanied by the reason for 611 cancellation musttherefor shallbe given. ANonotice of 612 cancellation is notof a policy to which this section applies613shall beeffective unless thereason orreasons for cancellation 614 accompany the noticeof cancellation. 615 (4)(a) AnNoinsurer mustshall fail torenew a policy 616 unless it mails or delivers to the first-namednamedinsured, at 617 the address shown in the policy, and to the first-namednamed618 insured’s insurance agent at her or his business address, at 619 least 45 days’ advance notice of its intention not to renew; and 620 the reasons for refusal to renew must accompany such notice. 621 This subsection does not apply: 622 1. If the insurer has manifested its willingness to renew; 623 or 624 2. In case of nonpayment of premium. 625 626 Notwithstanding the failure of an insurer to comply with this 627 subsection, the policy terminatesshall terminateon the 628 effective date of any other automobile liability insurance 629 policy procured by the insured with respect to any automobile 630 designated in both policies. Unless a written explanation for 631 refusal to renew accompanies the notice of intention not to 632 renew, the policy remainsshall remainin full force and effect. 633 (d) Instead of canceling or nonrenewing a policy, an 634 insurer may, upon expiration of the policy term, transfer a 635 policy to another insurer under the same ownership or management 636 as the transferring insurer, by giving the first-namednamed637 insured at least 45 days’ advance notice of its intent to 638 transfer the policy and of the premium and the specific reasons 639 for any increase in the premium. 640 (5) United States postal proof of mailing or certified or 641 registered mailing of notice of cancellation, of intention not 642 to renew, or of reasons for cancellation, or of the intention of 643 the insurer to issue a policy by an insurer under the same 644 ownership or management, to the first-namednamedinsured at the 645 address shown in the policy isshall besufficient proof of 646 notice. 647 (6) IfWhena policy is canceled, other than for nonpayment 648 of premium, or in the event of failure to renew a policy to 649 which subsection (4) applies, the insurer shall notify the 650 first-namednamedinsured of her or his possible eligibility for 651 insurance through the Automobile Joint Underwriting Association. 652 Such notice mustshallaccompany or be included in the notice of 653 cancellation or the notice of intent not to renew andshall654 state that thesuchnotice of availability of the Automobile 655 Joint Underwriting Association is given pursuant to this 656 section. 657 Section 11. Section 627.7281, Florida Statutes, is amended 658 to read: 659 627.7281 Cancellation notice.—An insurer issuing a policy 660 of motor vehicle insurance not covered under the cancellation 661 provisions of s. 627.728 shall give the first-namednamed662 insured notice of cancellation at least 45 days beforeprior to663 the effective date of cancellation, except that if, when664 cancellation is for nonpayment of premium, at least 10 days’ 665 notice of cancellation accompanied by the reason for 666 cancellation musttherefor shallbe given. As used in this 667 section, the term “policy” does not include a binder as defined 668 in s. 627.420 unless the duration of the binder period exceeds 669 60 days. 670 Section 12. Section 634.1711, Florida Statutes, is created 671 to read: 672 634.1711 Premium payable.—Notwithstanding s. 634.1815 and 673 s. 634.282(6), (7), and (13), a consumer may purchase a service 674 agreement for a premium amount negotiated with the salesperson. 675 The service agreement company is responsible for establishing 676 minimum premium rates to ensure its solvency under this part. 677 Other than the premium rates, no other terms or conditions of 678 the service agreement may be revised, amended, or changed by the 679 salesperson. 680 Section 13. Section 634.403, Florida Statutes, is amended 681 to read: 682 634.403 License required; exemptions.— 683 (1) No person in this state shall provide or offer to 684 provide service warranties to residents of this state unless 685 authorizedthereforunder a subsisting license issued by the 686 office. The service warranty association shall pay to the office 687 a license fee of $200 for such license for each license year, or 688 part thereof, the license is in force. 689 (2) An insurer, while authorized to transact property or 690 casualty insurance in this state, may also transact a service 691 warranty business without additional qualifications or 692 authority, but isshall beotherwise subject to the applicable 693 provisions of this part. 694 (3) The office may, pursuant to s. 120.569,in its695discretion andwithout advance notice and hearing, issue an 696 immediate final order to cease and desist to any person or 697 entity which violates this section. The Legislature finds that a 698 violation of this section constitutes an imminent and immediate 699 threat to the public health, safety, and welfare of the 700 residents of this state. 701 (4) Any person that is an affiliate of a domestic insurer 702 as defined in chapter 624 is exempt from application of this 703 part if the person does not issue, or market or cause to be 704 marketed, service warranties to residents of this state and does 705 not administer service warranties that were originally issued to 706 residents of this state. The domestic insurer or its wholly 707 owned Florida licensed insurer must be the direct obligor of all 708 service warranties issued by such affiliate or must issue a 709 contractual liability insurance policy to such affiliate that 710 meets the conditions described in s. 634.406(3). If the office 711of Insurance Regulationdetermines, after notice and opportunity 712 for a hearing, that a person’s intentional business practices do 713 not comply with any of the exemption requirements of this 714 subsection, the person isshall besubject to this part. 715 (5) A person is exempt from licensure under this section if 716 it complies with the following: 717 (a) The service warranties are sold only to persons who are 718 not residents of this state and the person does not issue, 719 market, or cause to be marketed service warranties to residents 720 of this state and does not administer service warranties that 721 were originally issued to residents of this state. 722 (b) The person submits a letter of notification to the 723 office upon the start of business from this state and annually 724 by March 1, which provides the following information: 725 1. The type of products offered and a statement certifying 726 that the products are not regulated in the state in which it is 727 transacting business or that the person is licensed in the state 728 in which it is transacting business. 729 2. The name of the person; the state of domicile; the home 730 address and Florida address of the person; the names of the 731 owners and their percentage of ownership; the names of the 732 officers and directors; the name, e-mail, and telephone number 733 of a contact person; the states in which it is transacting 734 business; and how many individuals are employed in this state. 735 (c) If the person ceases to do business from this state, it 736 provides written notification to the office within 30 days after 737 cessation. 738 (6)(5)Any person who provides, offers to provide, or holds 739 oneself out as providing or offering to provide a service 740 warranty to residents ofinthis stateor from this state741 without holding a subsisting license commits, in addition to any 742 other violation, a misdemeanor of the first degree, punishable 743 as provided in s. 775.082 or s. 775.083. 744 Section 14. Except as otherwise expressly provided in this 745 act and except for this section, which shall take effect upon 746 this act becoming a law, this act shall take effect July 1, 747 2011.