Bill Text: FL S1252 | 2011 | Regular Session | Comm Sub


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 CS for SB 1252
       
       
       
       By the Committees on Rules; and Budget; and Senator Smith
       
       
       
       
       595-05124A-11                                         20111252c2
    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 s. 316.066, F.S.;
    6         revising the type of information that must be included
    7         in crash reports; authorizing the investigating
    8         officer to testify at trial or provide an affidavit
    9         concerning the content of the reports; amending ss.
   10         440.12 and 440.20, F.S.; authorizing the payment of
   11         workers’ compensation benefits through the use of a
   12         prepaid card; providing requirements; amending s.
   13         440.49, F.S.; specifying that the assessment for the
   14         Special Disability Trust Fund be applied on a calendar
   15         year basis; amending s. 624.402, F.S.; revising
   16         provisions relating to certain insurers covering
   17         nonresidents domiciled outside the United States who
   18         are exempt from requirements to obtain a certificate
   19         of authority; amending s. 626.207, F.S., relating to
   20         penalties; providing definitions; barring persons
   21         convicted of certain crimes from licensure as an
   22         insurance agent; revising provisions relating to
   23         disqualifying periods for persons convicted of other
   24         crimes; providing an exemption from the limitation
   25         against state employment for persons convicted of
   26         certain crimes; amending s. 627.4133, F.S.; changing
   27         the designated person or persons who must be notified
   28         by an insurer from the “insured” to the “first-named
   29         insured” in situations involving the nonrenewal,
   30         renewal premium, cancellation, or termination of
   31         workers’ compensation, employer liability, or certain
   32         property and casualty insurance coverage; specifying
   33         the effective date for the cancellation of a policy
   34         requested in writing by the insured; amending s.
   35         627.4137, F.S.; requiring a claimant’s request about
   36         insurance coverage to be appropriately served upon the
   37         disclosing entity; amending s. 627.442, F.S.;
   38         providing that premium audits for workers’
   39         compensation coverage is not required; providing
   40         exceptions; amending s. 627.7277, F.S.; making a
   41         conforming change that specifies the “first-named
   42         insured” as the person who is to receive notification
   43         of a renewal premium; amending s. 627.728, F.S.;
   44         changing the designated person or persons who must be
   45         notified by an insurer from the “insured” to the
   46         “first-named insured” in certain situations involving
   47         the cancellation or nonrenewal of motor vehicle
   48         insurance coverage; making a conforming change that
   49         specifies the “first-named insured’s insurance agent”
   50         as a person who is to receive certain notifications
   51         relating to motor vehicle insurance coverage; amending
   52         s. 627.7281, F.S.; making a conforming change that
   53         specifies the “first-named insured” as the person who
   54         is to receive notification of cancellation of motor
   55         vehicle insurance coverage; amending s. 627.7295,
   56         F.S.; providing that a binder or policy for motor
   57         vehicle insurance is not effective until a certain
   58         amount of the premium is paid; amending s. 628.901,
   59         F.S.; providing definitions; repealing s. 628.903,
   60         F.S., relating to the definition of the term
   61         “industrial insured captive insurer”; amending s.
   62         628.905, F.S.; requiring a captive insurer to obtain a
   63         license and to file evidence that a person or firm
   64         with whom it intends to conduct business is reputable;
   65         providing that a certificate of insurance for an
   66         association captive insurer does not exceed the total
   67         funds of the association members; creating s. 628.908,
   68         F.S.; requiring a licensed captive insurer to maintain
   69         its principal place of business in this state and hold
   70         an annual meeting in this state; amending s. 628.909,
   71         F.S.; applying additional provisions of the insurance
   72         code to captive insurers; amending s. 634.403, F.S.;
   73         exempting certain persons from service warranty
   74         licensure requirements under certain circumstances;
   75         amending s. 817.234, F.S.; providing civil penalties
   76         for fraudulent insurance claims; providing effective
   77         dates.
   78  
   79  Be It Enacted by the Legislature of the State of Florida:
   80  
   81         Section 1. Subsection (17) of section 120.80, Florida
   82  Statutes, is created to read:
   83         120.80 Exceptions and special requirements; agencies.—
   84         (17) DEPARTMENT OF FINANCIAL SERVICES.—Notwithstanding ss.
   85  120.569, 120.57, and 120.60, if an applicant for licensure as an
   86  agent or adjuster pursuant to the Florida Insurance Code has
   87  been convicted of, or pled guilty or nolo contendere to, a
   88  felony, the disqualifying periods have been met, and the
   89  department has denied the application pursuant to s. 626.207(6),
   90  the division shall have final order authority.
   91         Section 2. Subsection (1) of section 316.066, Florida
   92  Statutes, is amended to read:
   93         316.066 Written reports of crashes.—
   94         (1)(a) A Florida Traffic Crash Report, Long Form, must is
   95  required to be completed and submitted to the department within
   96  10 days after completing an investigation is completed by the
   97  every law enforcement officer who in the regular course of duty
   98  investigates a motor vehicle crash:
   99         1. That resulted in death, or personal injury, or any
  100  indication of complaints of pain or discomfort by any of the
  101  parties or passengers involved in the crash;.
  102         2. That involved one or more passengers, other than the
  103  drivers of the vehicles, in any of the vehicles involved in the
  104  crash;
  105         3.2. That involved a violation of s. 316.061(1) or s.
  106  316.193; or.
  107         4.3. In which a vehicle was rendered inoperative to a
  108  degree that required a wrecker to remove it from traffic, if
  109  such action is appropriate, in the officer’s discretion.
  110         (b) In every crash for which a Florida Traffic Crash
  111  Report, Long Form, is not required by this section, the law
  112  enforcement officer may complete a short-form crash report or
  113  provide a short-form crash report to be completed by each party
  114  involved in the crash. Short-form crash reports prepared by the
  115  law enforcement officer shall be maintained by the officer’s
  116  agency.
  117         (c) The long-form and the short-form report must include:
  118         1. The date, time, and location of the crash.
  119         2. A description of the vehicles involved.
  120         3. The names and addresses of the parties involved.
  121         4. The names and addresses of all passengers in all
  122  vehicles involved in the crash, each clearly identified as being
  123  a passenger and the identification of the vehicle in which they
  124  were a passenger.
  125         5.4. The names and addresses of witnesses.
  126         6.5.The name, badge number, and law enforcement agency of
  127  the officer investigating the crash.
  128         7.6. The names of the insurance companies for the
  129  respective parties involved in the crash.
  130         (d)(c) Each party to the crash must shall provide the law
  131  enforcement officer with proof of insurance, which must to be
  132  included in the crash report. If a law enforcement officer
  133  submits a report on the accident, proof of insurance must be
  134  provided to the officer by each party involved in the crash. Any
  135  party who fails to provide the required information commits a
  136  noncriminal traffic infraction, punishable as a nonmoving
  137  violation as provided in chapter 318, unless the officer
  138  determines that due to injuries or other special circumstances
  139  such insurance information cannot be provided immediately. If
  140  the person provides the law enforcement agency, within 24 hours
  141  after the crash, proof of insurance that was valid at the time
  142  of the crash, the law enforcement agency may void the citation.
  143         (e)(d) The driver of a vehicle that was in any manner
  144  involved in a crash resulting in damage to any vehicle or other
  145  property in an amount of $500 or more, which crash was not
  146  investigated by a law enforcement agency, shall, within 10 days
  147  after the crash, submit a written report of the crash to the
  148  department or traffic records center. The entity receiving the
  149  report may require witnesses of the crash crashes to render
  150  reports and may require any driver of a vehicle involved in a
  151  crash of which a written report must be made as provided in this
  152  section to file supplemental written reports if whenever the
  153  original report is deemed insufficient by the receiving entity.
  154         (f) The investigating law enforcement officer may testify
  155  at trial or provide a signed affidavit to confirm or supplement
  156  the information included on the long-form or short-form report.
  157         (e) Short-form crash reports prepared by law enforcement
  158  shall be maintained by the law enforcement officer’s agency.
  159         Section 3. Subsection (1) of section 440.12, Florida
  160  Statutes, is amended to read:
  161         440.12 Time for commencement and limits on weekly rate of
  162  compensation.—
  163         (1) No Compensation is not shall be allowed for the first 7
  164  days of the disability, except for benefits provided under for
  165  in s. 440.13. However, if the injury results in disability of
  166  more than 21 days, compensation shall be allowed from the
  167  commencement of the disability.
  168         (a) All weekly compensation payments, except for the first
  169  payment, shall be paid by check or, if authorized by the
  170  employee, on a prepaid card pursuant to paragraph (b) or
  171  deposited directly into the employee’s account at a financial
  172  institution. As used in this subsection, the term “financial
  173  institution” means a financial institution as defined in s.
  174  655.005(1)(h).
  175         (b) Upon receipt of authorization by the employee as
  176  provided in paragraph (a), a carrier may use a prepaid card to
  177  deliver compensation payments to an employee if the employee:
  178         1. Has at least one means of accessing his or her entire
  179  compensation payment once per week without incurring fees;
  180         2. Has the ability to make point-of-sale purchases without
  181  incurring fees from the financial institution issuing the
  182  prepaid card; and
  183         3. Is provided with terms and conditions of the prepaid
  184  card program, including a description of any fees that may be
  185  assessed.
  186         (c) Each carrier shall keep a record of all payments made
  187  under this subsection and the time and manner of such payments,
  188  and shall furnish these records, or a report based on these
  189  records, to the Division of Insurance Fraud and the Division of
  190  Workers’ Compensation upon request.
  191         (d) The department may adopt rules to administer this
  192  subsection.
  193         Section 4. Paragraph (a) of subsection (1) of section
  194  440.20, Florida Statutes, is amended to read:
  195         440.20 Time for payment of compensation and medical bills;
  196  penalties for late payment.—
  197         (1)(a) Unless the carrier it denies compensability or
  198  entitlement to benefits, the carrier shall pay compensation
  199  directly to the employee as required by ss. 440.14, 440.15, and
  200  440.16, in accordance with the obligations set forth in those
  201  such sections. Upon receipt of the employee’s authorization as
  202  provided in s. 440.12(1) If authorized by the employee, the
  203  carrier’s obligation to pay compensation directly to the
  204  employee is satisfied when the carrier directly deposits, by
  205  electronic transfer or other means, compensation into the
  206  employee’s account at a financial institution or onto a prepaid
  207  card in accordance with s. 440.12(1). As used in this paragraph,
  208  the term “financial institution” means a financial institution
  209  as defined in s. 655.005(1)(h). Compensation by direct deposit
  210  or through the use of a prepaid card is considered paid on the
  211  date the funds become available for withdrawal by the employee.
  212         Section 5. Paragraph (b) of subsection (9) of section
  213  440.49, Florida Statutes, is amended to read:
  214         440.49 Limitation of liability for subsequent injury
  215  through Special Disability Trust Fund.—
  216         (9) SPECIAL DISABILITY TRUST FUND.—
  217         (b)1. The Special Disability Trust Fund shall be maintained
  218  by annual assessments on upon the insurance companies writing
  219  compensation insurance in the state, the commercial self
  220  insurers under ss. 624.462 and 624.4621, the assessable mutuals
  221  as defined in s. 628.6011, and the self-insurers under this
  222  chapter, which assessments are due and payable shall become due
  223  and be paid quarterly at the same time and in addition to the
  224  assessments provided in s. 440.51.
  225         1. The department shall estimate annually in advance the
  226  amount necessary for the administration of this subsection and
  227  the maintenance of this fund and shall make such assessment as
  228  provided in this subparagraph in the manner hereinafter
  229  provided.
  230         a.2. The annual assessment shall be calculated to produce
  231  during the ensuing fiscal year an amount which, when combined
  232  with that part of the balance in the fund on June 30 of the
  233  current fiscal year which is in excess of $100,000, is equal to
  234  the average of:
  235         (I)a. The sum of disbursements from the fund during the
  236  immediate past 3 calendar years;, and
  237         (II)b. Two times the disbursements of the most recent
  238  calendar year.
  239         b. The assessment shall be applied on a calendar year basis
  240  beginning January 1, 2012, and be included in the workers’
  241  compensation rate filings approved by the office which become
  242  effective on or after January 1, 2012. The assessment effective
  243  January 1, 2011, also applies to the interim period from July 1,
  244  2011, through December 31, 2011, and is included in the workers’
  245  compensation rate filings, whether regular or amended, approved
  246  by the office which are effective on or after July 1, 2011.
  247  Thereafter, the annual assessment takes effect January 1 of the
  248  next calendar year and is included in the workers’ compensation
  249  rate filings approved by the office which become effective on or
  250  after January 1 of the next calendar year.
  251         c. Such amount shall be prorated among the insurance
  252  companies writing compensation insurance in the state and the
  253  self-insurers. Provided However, for those carriers that have
  254  excluded ceded reinsurance premiums from their assessments on or
  255  before January 1, 2000, no assessments on ceded reinsurance
  256  premiums may not shall be paid by those carriers until such time
  257  as the former Division of Workers’ Compensation of the
  258  Department of Labor and Employment Security or the department
  259  advises each of those carriers of the impact that the inclusion
  260  of ceded reinsurance premiums has on their assessment. The
  261  division department may not recover any past underpayments of
  262  assessments levied against any carrier that on or before January
  263  1, 2000, excluded ceded reinsurance premiums from their
  264  assessment before prior to the point that the former Division of
  265  Workers’ Compensation of the Department of Labor and Employment
  266  Security or the department advises of the appropriate assessment
  267  that should have been paid.
  268         3. The net premiums written by the companies for workers’
  269  compensation in this state and the net premium written
  270  applicable to the self-insurers in this state are the basis for
  271  computing the amount to be assessed as a percentage of net
  272  premiums. Such payments shall be made by each carrier and self
  273  insurer to the department for the Special Disability Trust Fund
  274  in accordance with such regulations as the department
  275  prescribes.
  276         4. The Chief Financial Officer may is authorized to receive
  277  and credit to such Special Disability Trust Fund any sum or sums
  278  that may at any time be contributed to the state by the United
  279  States under any Act of Congress, or otherwise, to which the
  280  state may be or become entitled by reason of any payments made
  281  out of such fund.
  282         Section 6. Subsection (8) of section 624.402, Florida
  283  Statutes, is amended to read:
  284         624.402 Exceptions, certificate of authority required.—A
  285  certificate of authority shall not be required of an insurer
  286  with respect to:
  287         (8) An insurer domiciled outside the United States covering
  288  only persons who, at the time of issuance or renewal, are
  289  nonresidents of the United States.
  290         (a)In order to qualify for this exemption, the insurer:
  291         1.Must register with the office via a letter of
  292  notification upon commencing business from this state.
  293         2.Must provide the following information to the office
  294  annually by March 1:
  295         a.The name of the insurer; the insurer’s country of
  296  domicile; the address of the insurer’s principal office and
  297  office in this state; the names of the owners of the insurer and
  298  their percentage of ownership; the names of the officers and
  299  directors of the insurer; the name, e-mail, and telephone number
  300  of a contact person for the insurer; and the number of
  301  individuals who are employed by the insurer or its affiliates in
  302  this state;
  303         b.The type of products offered by the insurer;
  304         c.A statement from the applicable regulatory body of the
  305  insurer’s domicile certifying that the insurer is licensed or
  306  registered in that domicile; and
  307         d.A copy of the filings required by the applicable
  308  regulatory body of the insurer’s domicile.
  309         3. Or any affiliated person as defined in s. 624.04 under
  310  common ownership or control with the insurer, may not solicit,
  311  sell, or accept an application for any insurance policy or
  312  contract to be delivered or issued for delivery to any
  313  individual other than a nonresident.
  314         (b)All policies or certificates delivered to nonresidents
  315  in this state must include the following statement in a
  316  contrasting color and at least 10-point type: “The policy
  317  providing your coverage and the insurer providing this policy
  318  have not been approved by the Florida Office of Insurance
  319  Regulation.”
  320         (c)If the insurer ceases to do business from this state,
  321  the insurer must agree to provide written notification to the
  322  office within 30 days after cessation.
  323         (d) Subject to the limitations contained in this
  324  subsection, services, including those listed in s. 624.10, may
  325  be provided by the insurer or an affiliated person as defined in
  326  s. 624.04 under common ownership or control with the insurer.
  327         (e) An alien insurer transacting insurance in this state
  328  without complying with this subsection is in violation of this
  329  chapter and subject to the penalties under s. 624.15.
  330         (f) An insurer that holds a certificate of authority in
  331  this state may issue and deliver policies to nonresidents at
  332  temporary or secondary addresses in this state, along with a
  333  notice that the policy form and rate is not subject to the
  334  approval of the Office of Insurance Regulation.
  335         (g) The term “nonresident” means an individual who resides
  336  in and maintains a physical place of domicile in a country other
  337  than the United States, which he or she recognizes as and
  338  intends to maintain as his or her permanent home. The term does
  339  not include an unauthorized immigrant present in the United
  340  States. Notwithstanding any other provision of law, it is
  341  conclusively presumed that an individual is a resident of the
  342  United States if such individual:
  343         1. Has had his or her principal place of domicile in the
  344  United States for 180 days or more in the 365 days before
  345  issuance or renewal the policy;
  346         2. Has registered to vote in any state;
  347         3. Has made a statement of domicile in any state; or
  348         4. Has filed for homestead tax exemption on property in any
  349  state.
  350         (a) Life insurance policies or annuity contracts issued by
  351  an insurer domiciled outside the United States covering only
  352  persons who, at the time of issuance, are not residents of the
  353  United States and are not nonresidents illegally residing in the
  354  United States, provided:
  355         1. The insurer must currently be an authorized insurer in
  356  its country of domicile as to the kind or kinds of insurance
  357  proposed to be offered and must have been such an insurer for
  358  not fewer than the immediately preceding 3 years, or must be the
  359  wholly owned subsidiary of such authorized insurer or must be
  360  the wholly owned subsidiary of an already eligible authorized
  361  insurer as to the kind or kinds of insurance proposed for a
  362  period of not fewer than the immediately preceding 3 years.
  363  However, the office may waive the 3-year requirement if the
  364  insurer has operated successfully for a period of at least the
  365  immediately preceding year and has capital and surplus of not
  366  less than $25 million.
  367         2. Before the office may grant eligibility, the requesting
  368  insurer shall furnish the office with a duly authenticated copy
  369  of its current annual financial statement, in English, and with
  370  all monetary values therein expressed in United States dollars,
  371  at an exchange rate then-current and shown in the statement, in
  372  the case of statements originally made in the currencies of
  373  other countries, and with such additional information relative
  374  to the insurer as the office may request.
  375         3. The insurer must have and maintain surplus as to
  376  policyholders of not less than $15 million. Any such surplus as
  377  to policyholders shall be represented by investments consisting
  378  of eligible investments for like funds of like domestic insurers
  379  under part II of chapter 625; however, any such surplus as to
  380  policyholders may be represented by investments permitted by the
  381  domestic regulator of such alien insurance company if such
  382  investments are substantially similar in terms of quality,
  383  liquidity, and security to eligible investments for like funds
  384  of like domestic insurers under part II of chapter 625.
  385         4. The insurer must be of good reputation as to the
  386  providing of service to its policyholders and the payment of
  387  losses and claims.
  388         5. To maintain eligibility, the insurer shall furnish the
  389  office within the time period specified in s. 624.424(1)(a) a
  390  duly authenticated copy of its current annual and quarterly
  391  financial statements, in English, and with all monetary values
  392  therein expressed in United States dollars, at an exchange rate
  393  then-current and shown in the statement, in the case of
  394  statements originally made in the currencies of other countries,
  395  and with such additional information relative to the insurer as
  396  the office may request.
  397         6. An insurer receiving eligibility under this subsection
  398  shall agree to make its books and records pertaining to its
  399  operations in this state available for inspection during normal
  400  business hours upon request of the office.
  401         7. The insurer shall provide to the applicant for the
  402  policy or contract a copy of the most recent quarterly financial
  403  statements of the insurer providing, in clear and conspicuous
  404  language:
  405         a. The date of organization of the insurer.
  406         b. The identity of and rating assigned by each recognized
  407  insurance company rating organization that has rated the insurer
  408  or, if applicable, that the insurer is unrated.
  409         c. That the insurer does not hold a certificate of
  410  authority issued in this state and that the office does not
  411  exercise regulatory oversight over the insurer.
  412         d. The identity and address of the regulatory authority
  413  exercising oversight of the insurer.
  414  
  415  This paragraph does not impose upon the office any duty or
  416  responsibility to determine the actual financial condition or
  417  claims practices of any unauthorized insurer, and the status of
  418  eligibility, if granted by the office, indicates only that the
  419  insurer appears to be financially sound and to have satisfactory
  420  claims practices and that the office has no credible evidence to
  421  the contrary.
  422         (b) If at any time the office has reason to believe that an
  423  insurer issuing policies or contracts pursuant to this
  424  subsection is insolvent or is in unsound financial condition,
  425  does not make reasonable prompt payment of benefits, or is no
  426  longer eligible under the conditions specified in this
  427  subsection, the office may conduct an examination or
  428  investigation in accordance with s. 624.316, s. 624.3161, or s.
  429  624.320 and, if the findings of such examination or
  430  investigation warrant, may withdraw the eligibility of the
  431  insurer to issue policies or contracts pursuant to this
  432  subsection without having a certificate of authority issued by
  433  the office.
  434         (c) This subsection does not provide an exception to the
  435  agent licensure requirements of chapter 626. Any insurer issuing
  436  policies or contracts pursuant to this subsection shall appoint
  437  the agents that the insurer uses to sell such policies or
  438  contracts as provided in chapter 626.
  439         (d) An insurer issuing policies or contracts pursuant to
  440  this subsection is subject to part IX of chapter 626, Unfair
  441  Insurance Trade Practices, and the office may take such actions
  442  against the insurer for a violation as are provided in that
  443  part.
  444         (e) Policies and contracts issued pursuant to this
  445  subsection are not subject to the premium tax specified in s.
  446  624.509.
  447         (f) Applications for life insurance coverage offered under
  448  this subsection must contain, in contrasting color and not less
  449  than 12-point type, the following statement on the same page as
  450  the applicant’s signature:
  451  
  452         This policy is primarily governed by the laws of a
  453         foreign country. As a result, all of the rating and
  454         underwriting laws applicable to policies filed in this
  455         state do not apply to this coverage, which may result
  456         in your premiums being higher than would be
  457         permissible under a Florida-approved policy. Any
  458         purchase of individual life insurance should be
  459         considered carefully, as future medical conditions may
  460         make it impossible to qualify for another individual
  461         life policy. If the insurer issuing your policy
  462         becomes insolvent, this policy is not covered by the
  463         Florida Life and Health Insurance Guaranty
  464         Association. For information concerning individual
  465         life coverage under a Florida-approved policy, consult
  466         your agent or the Florida Department of Financial
  467         Services.
  468  
  469         (g) All life insurance policies and annuity contracts
  470  issued pursuant to this subsection must contain on the first
  471  page of the policy or contract, in contrasting color and not
  472  less than 10-point type, the following statement:
  473  
  474         The benefits of the policy providing your coverage are
  475         governed primarily by the law of a country other than
  476         the United States.
  477  
  478         (h) All single-premium life insurance policies and single
  479  premium annuity contracts issued to persons who are not
  480  residents of the United States and are not nonresidents
  481  illegally residing in the United States pursuant to this
  482  subsection shall be subject to the provisions of chapter 896.
  483         Section 7. Effective upon this act becoming a law, section
  484  626.207, Florida Statutes, is amended to read:
  485         626.207 Department rulemaking authority; waiting periods
  486  for applicants; Penalties against licensees.—
  487         (1) As used in this section, the term:
  488         (a) “Financial services business” means any financial
  489  activity regulated by the Department of Financial Services, the
  490  Office of Insurance Regulation, or the Office of Financial
  491  Regulation.
  492         (b) “First-degree felony” and “capital felony” include all
  493  felonies so designated by the laws of this state, as well as any
  494  felony so designated in the jurisdiction in which the plea is
  495  entered or judgment is rendered.
  496         (1) The department shall adopt rules establishing specific
  497  waiting periods for applicants to become eligible for licensure
  498  following denial, suspension, or revocation pursuant to s.
  499  626.611, s. 626.621, s. 626.8437, s. 626.844, s. 626.935, s.
  500  634.181, s. 634.191, s. 634.320, s. 634.321, s. 634.422, s.
  501  634.423, s. 642.041, or s. 642.043. The purpose of the waiting
  502  periods is to provide sufficient time to demonstrate reformation
  503  of character and rehabilitation. The waiting periods shall vary
  504  based on the type of conduct and the length of time since the
  505  conduct occurred and shall also be based on the probability that
  506  the propensity to commit illegal conduct has been overcome. The
  507  waiting periods may be adjusted based on aggravating and
  508  mitigating factors established by rule and consistent with this
  509  purpose.
  510         (2) An applicant who commits a first-degree felony; a
  511  capital felony; a felony involving money laundering, fraud, or
  512  embezzlement; or a felony directly related to a financial
  513  services business is permanently barred from applying for a
  514  license under this part. This bar applies to convictions, guilty
  515  pleas, or nolo contendere pleas, regardless of adjudication, by
  516  an applicant, officer, director, majority owner, partner,
  517  manager, or other person who manages or controls an applicant.
  518         (3) For all other crimes not included in subsection (2),
  519  the department shall adopt rules establishing the process and
  520  application of disqualifying periods:
  521         (a) A 15-year disqualifying period for all felonies
  522  involving moral turpitude that are not specifically included in
  523  the permanent bar in subsection (2).
  524         (b) A 7-year disqualifying period for all felonies to which
  525  the permanent bar in subsection (2) and the 15 year
  526  disqualifying period in paragraph (a) do not apply.
  527         (c) A 7-year disqualifying period for all misdemeanors
  528  directly related to the financial services business.
  529         (4) The department shall adopt rules providing for
  530  additional disqualifying periods due to the commitment of
  531  multiple crimes and other factors reasonably related to the
  532  applicant’s criminal history. The rules shall provide for
  533  mitigating and aggravating factors. However, mitigation may not
  534  result in a period of disqualification of less than 7 years and
  535  may not mitigate the disqualifying periods in paragraphs (3)(b)
  536  and (c).
  537         (5) For purposes of this section, the disqualifying periods
  538  begin upon the applicant’s final release from supervision or
  539  upon completion of the applicant’s criminal sentence, including
  540  payment of fines, restitution, and court costs, for the crime
  541  for which the disqualifying period applies.
  542         (6) After the disqualifying period has been met, the burden
  543  is on the applicant to demonstrate that the applicant has been
  544  rehabilitated, does not pose a risk to the insurance buying
  545  public, is fit and trustworthy to engage in the business of
  546  insurance pursuant to s. 626.611(7), and is otherwise qualified
  547  for licensure. Hearings shall be conducted in accordance with s.
  548  120.80(17).
  549         (7)(2) The department shall adopt rules establishing
  550  specific penalties against licensees in accordance with ss.
  551  626.641 and 626.651 for violations of s. 626.611, s. 626.621, s.
  552  626.8437, s. 626.844, s. 626.935, s. 634.181, s. 634.191, s.
  553  634.320, s. 634.321, s. 634.422, s. 634.423, s. 642.041, or s.
  554  642.043. The purpose of the revocation or suspension is to
  555  provide a sufficient penalty to deter future violations of the
  556  Florida Insurance Code. The imposition of a revocation or the
  557  length of suspension shall be based on the type of conduct and
  558  the probability that the propensity to commit further illegal
  559  conduct has been overcome at the time of eligibility for
  560  relicensure. The revocation or the length of suspension may be
  561  adjusted based on aggravating or mitigating factors, established
  562  by rule and consistent with this purpose.
  563         (8) The provisions of s. 112.011 do not apply to applicants
  564  for licensure under the Florida Insurance Code, including, but
  565  not limited to agents, agencies, adjusters, adjusting firms,
  566  customer representatives, or managing general agents.
  567         Section 8. Paragraphs (a) and (b) of subsection (1),
  568  paragraphs (a) and (b) of subsection (2), and subsection (4) of
  569  section 627.4133, Florida Statutes, are amended to read:
  570         627.4133 Notice of cancellation, nonrenewal, or renewal
  571  premium.—
  572         (1) Except as provided in subsection (2):
  573         (a) An insurer issuing a policy providing coverage for
  574  workers’ compensation and employer’s liability insurance,
  575  property, casualty, except mortgage guaranty, surety, or marine
  576  insurance, other than motor vehicle insurance subject to s.
  577  627.728, shall give the first-named named insured at least 45
  578  days’ advance written notice of nonrenewal or of the renewal
  579  premium. If the policy is not to be renewed, the written notice
  580  must shall state the reason or reasons as to why the policy is
  581  not to be renewed. This requirement applies only if the insured
  582  has furnished all of the necessary information so as to enable
  583  the insurer to develop the renewal premium before prior to the
  584  expiration date of the policy to be renewed.
  585         (b) An insurer issuing a policy providing coverage for
  586  property, casualty, except mortgage guaranty, surety, or marine
  587  insurance, other than motor vehicle insurance subject to s.
  588  627.728 or s. 627.7281, shall give the first-named named insured
  589  written notice of cancellation or termination other than
  590  nonrenewal at least 45 days before prior to the effective date
  591  of the cancellation or termination, including in the written
  592  notice the reason or reasons for the cancellation or
  593  termination, except that:
  594         1. If When cancellation is for nonpayment of premium, at
  595  least 10 days’ written notice of cancellation accompanied by the
  596  reason for cancellation must therefor shall be given. As used in
  597  this subparagraph and s. 440.42(3), the term “nonpayment of
  598  premium” means failure of the named insured to discharge when
  599  due any of her or his obligations in connection with the payment
  600  of premiums on a policy or any installment of such premium,
  601  whether the premium is payable directly to the insurer or its
  602  agent or indirectly under any premium finance plan or extension
  603  of credit, or failure to maintain membership in an organization
  604  if such membership is a condition precedent to insurance
  605  coverage. The term “Nonpayment of premium” also means the
  606  failure of a financial institution to honor an insurance
  607  applicant’s check after delivery to a licensed agent for payment
  608  of a premium, even if the agent has previously delivered or
  609  transferred the premium to the insurer. If a dishonored check
  610  represents the initial premium payment, the contract and all
  611  contractual obligations are shall be void ab initio unless the
  612  nonpayment is cured within the earlier of 5 days after actual
  613  notice by certified mail is received by the applicant or 15 days
  614  after notice is sent to the applicant by certified mail or
  615  registered mail., and If the contract is void, any premium
  616  received by the insurer from a third party must shall be
  617  refunded to that party in full.; and
  618         2. If When such cancellation or termination occurs during
  619  the first 90 days during which the insurance is in force and the
  620  insurance is canceled or terminated for reasons other than
  621  nonpayment of premium, at least 20 days’ written notice of
  622  cancellation or termination accompanied by the reason for
  623  cancellation must therefor shall be given except where there has
  624  been a material misstatement or misrepresentation or failure to
  625  comply with the underwriting requirements established by the
  626  insurer.
  627  
  628  After the policy has been in effect for 90 days, no such policy
  629  may not shall be canceled by the insurer except when there has
  630  been a material misstatement, a nonpayment of premium, a failure
  631  to comply with underwriting requirements established by the
  632  insurer within 90 days after of the date of effectuation of
  633  coverage, or a substantial change in the risk covered by the
  634  policy or when the cancellation is for all insureds under such
  635  policies for a given class of insureds. This subsection does not
  636  apply to individually rated risks having a policy term of less
  637  than 90 days.
  638         (2) With respect to any personal lines or commercial
  639  residential property insurance policy, including, but not
  640  limited to, any homeowner’s, mobile home owner’s, farmowner’s,
  641  condominium association, condominium unit owner’s, apartment
  642  building, or other policy covering a residential structure or
  643  its contents:
  644         (a) The insurer shall give the first-named named insured at
  645  least 45 days’ advance written notice of the renewal premium.
  646         (b) The insurer shall give the first-named named insured
  647  written notice of nonrenewal, cancellation, or termination at
  648  least 100 days before prior to the effective date of the
  649  nonrenewal, cancellation, or termination. However, the insurer
  650  shall give at least 100 days’ written notice, or written notice
  651  by June 1, whichever is earlier, for any nonrenewal,
  652  cancellation, or termination that would be effective between
  653  June 1 and November 30. The notice must include the reason or
  654  reasons for the nonrenewal, cancellation, or termination, except
  655  that:
  656         1. The insurer shall give the first-named named insured
  657  written notice of nonrenewal, cancellation, or termination at
  658  least 180 days before prior to the effective date of the
  659  nonrenewal, cancellation, or termination for a first-named named
  660  insured whose residential structure has been insured by that
  661  insurer or an affiliated insurer for at least a 5-year period
  662  immediately before prior to the date of the written notice.
  663         2. If When cancellation is for nonpayment of premium, at
  664  least 10 days’ written notice of cancellation accompanied by the
  665  reason for cancellation must therefor shall be given. As used in
  666  this subparagraph, the term “nonpayment of premium” means
  667  failure of the named insured to discharge when due any of her or
  668  his obligations in connection with the payment of premiums on a
  669  policy or any installment of such premium, whether the premium
  670  is payable directly to the insurer or its agent or indirectly
  671  under any premium finance plan or extension of credit, or
  672  failure to maintain membership in an organization if such
  673  membership is a condition precedent to insurance coverage. The
  674  term “Nonpayment of premium” also means the failure of a
  675  financial institution to honor an insurance applicant’s check
  676  after delivery to a licensed agent for payment of a premium,
  677  even if the agent has previously delivered or transferred the
  678  premium to the insurer. If a dishonored check represents the
  679  initial premium payment, the contract and all contractual
  680  obligations are shall be void ab initio unless the nonpayment is
  681  cured within the earlier of 5 days after actual notice by
  682  certified mail is received by the applicant or 15 days after
  683  notice is sent to the applicant by certified mail or registered
  684  mail., and If the contract is void, any premium received by the
  685  insurer from a third party must shall be refunded to that party
  686  in full.
  687         3. If When such cancellation or termination occurs during
  688  the first 90 days during which the insurance is in force and the
  689  insurance is canceled or terminated for reasons other than
  690  nonpayment of premium, at least 20 days’ written notice of
  691  cancellation or termination accompanied by the reason for
  692  cancellation must therefor shall be given except where there has
  693  been a material misstatement or misrepresentation or failure to
  694  comply with the underwriting requirements established by the
  695  insurer.
  696         4. The requirement for providing written notice of
  697  nonrenewal by June 1 of any nonrenewal that would be effective
  698  between June 1 and November 30 does not apply to the following
  699  situations, but the insurer remains subject to the requirement
  700  to provide such notice at least 100 days before prior to the
  701  effective date of nonrenewal:
  702         a. A policy that is nonrenewed due to a revision in the
  703  coverage for sinkhole losses and catastrophic ground cover
  704  collapse pursuant to s. 627.706, as amended by s. 30, chapter
  705  2007-1, Laws of Florida.
  706         b. A policy that is nonrenewed by Citizens Property
  707  Insurance Corporation, pursuant to s. 627.351(6), for a policy
  708  that has been assumed by an authorized insurer offering
  709  replacement or renewal coverage to the policyholder.
  710  
  711  After the policy has been in effect for 90 days, the policy may
  712  shall not be canceled by the insurer except when there has been
  713  a material misstatement, a nonpayment of premium, a failure to
  714  comply with underwriting requirements established by the insurer
  715  within 90 days of the date of effectuation of coverage, or a
  716  substantial change in the risk covered by the policy or if when
  717  the cancellation is for all insureds under such policies for a
  718  given class of insureds. This paragraph does not apply to
  719  individually rated risks having a policy term of less than 90
  720  days.
  721         (4) Notwithstanding the provisions of s. 440.42(3), if
  722  cancellation of a policy providing coverage for workers’
  723  compensation and employer’s liability insurance is requested in
  724  writing by the insured, such cancellation is shall be effective
  725  on the date requested by the insured, or if no date is
  726  specified, cancellation is effective as of the date of the
  727  written request the carrier sends the notice of cancellation to
  728  the insured. The carrier is not required to send notice of
  729  cancellation to the insured if the cancellation is requested in
  730  writing. Any retroactive assumption of coverage and liabilities
  731  under a policy providing workers’ compensation and employer’s
  732  liability insurance may not exceed 21 days.
  733         Section 9. Subsection (3) is added to section 627.4137,
  734  Florida Statutes, to read:
  735         627.4137 Disclosure of certain information required.—
  736         (3) Any request made to a self-insured corporation pursuant
  737  to this section shall be sent by certified mail to the
  738  registered agent of the disclosing entity.
  739         Section 10. Section 627.442, Florida Statutes, is amended
  740  to read:
  741         627.442 Insurance contracts.—
  742         (1) A person who requires a workers’ compensation insurance
  743  policy pursuant to a construction contract may not reject a
  744  workers’ compensation insurance policy issued by a self
  745  insurance fund that is subject to part V of chapter 631 based
  746  upon the self-insurance fund not being rated by a nationally
  747  recognized insurance rating service.
  748         (2) Notwithstanding s. 440.381(3), premium audits are not
  749  required for workers’ compensation coverage, except as provided
  750  by the insurance policy, by an order of the office, or at least
  751  once per policy period if requested by the insured.
  752         Section 11. Subsection (2) of section 627.7277, Florida
  753  Statutes, is amended to read:
  754         627.7277 Notice of renewal premium.—
  755         (2) An insurer shall mail or deliver to the first-named
  756  insured its policyholder at least 30 days’ advance written
  757  notice of the renewal premium for the policy.
  758         Section 12. Paragraph (a) of subsection (3), paragraphs (a)
  759  and (d) of subsection (4), and subsections (5) and (6) of
  760  section 627.728, Florida Statutes, are amended to read:
  761         627.728 Cancellations; nonrenewals.—
  762         (3)(a) No Notice of cancellation of a policy to which this
  763  section applies is not shall be effective unless mailed or
  764  delivered by the insurer to the first-named named insured and to
  765  the first-named named insured’s insurance agent at least 45 days
  766  before prior to the effective date of cancellation, except that,
  767  if when cancellation is for nonpayment of premium, at least 10
  768  days’ notice of cancellation accompanied by the reason for
  769  cancellation must therefor shall be given. A No notice of
  770  cancellation is not of a policy to which this section applies
  771  shall be effective unless the reason or reasons for cancellation
  772  accompany the notice of cancellation.
  773         (4)(a) An No insurer must shall fail to renew a policy
  774  unless it mails or delivers to the first-named named insured, at
  775  the address shown in the policy, and to the first-named named
  776  insured’s insurance agent at her or his business address, at
  777  least 45 days’ advance notice of its intention not to renew; and
  778  the reasons for refusal to renew must accompany such notice.
  779  This subsection does not apply:
  780         1. If the insurer has manifested its willingness to renew;
  781  or
  782         2. In case of nonpayment of premium.
  783  
  784  Notwithstanding the failure of an insurer to comply with this
  785  subsection, the policy terminates shall terminate on the
  786  effective date of any other automobile liability insurance
  787  policy procured by the insured with respect to any automobile
  788  designated in both policies. Unless a written explanation for
  789  refusal to renew accompanies the notice of intention not to
  790  renew, the policy remains shall remain in full force and effect.
  791         (d) Instead of canceling or nonrenewing a policy, an
  792  insurer may, upon expiration of the policy term, transfer a
  793  policy to another insurer under the same ownership or management
  794  as the transferring insurer, by giving the first-named named
  795  insured at least 45 days’ advance notice of its intent to
  796  transfer the policy and of the premium and the specific reasons
  797  for any increase in the premium.
  798         (5) United States postal proof of mailing or certified or
  799  registered mailing of notice of cancellation, of intention not
  800  to renew, or of reasons for cancellation, or of the intention of
  801  the insurer to issue a policy by an insurer under the same
  802  ownership or management, to the first-named named insured at the
  803  address shown in the policy is shall be sufficient proof of
  804  notice.
  805         (6) If When a policy is canceled, other than for nonpayment
  806  of premium, or in the event of failure to renew a policy to
  807  which subsection (4) applies, the insurer shall notify the
  808  first-named named insured of her or his possible eligibility for
  809  insurance through the Automobile Joint Underwriting Association.
  810  Such notice must shall accompany or be included in the notice of
  811  cancellation or the notice of intent not to renew and shall
  812  state that the such notice of availability of the Automobile
  813  Joint Underwriting Association is given pursuant to this
  814  section.
  815         Section 13. Section 627.7281, Florida Statutes, is amended
  816  to read:
  817         627.7281 Cancellation notice.—An insurer issuing a policy
  818  of motor vehicle insurance not covered under the cancellation
  819  provisions of s. 627.728 shall give the first-named named
  820  insured notice of cancellation at least 45 days before prior to
  821  the effective date of cancellation, except that if, when
  822  cancellation is for nonpayment of premium, at least 10 days’
  823  notice of cancellation accompanied by the reason for
  824  cancellation must therefor shall be given. As used in this
  825  section, the term “policy” does not include a binder as defined
  826  in s. 627.420 unless the duration of the binder period exceeds
  827  60 days.
  828         Section 14. Subsections (4) and (7) of section 627.7295,
  829  Florida Statutes, are amended to read:
  830         627.7295 Motor vehicle insurance contracts.—
  831         (4) If subsection (7) does not apply, the insurer may
  832  cancel the policy in accordance with this code except that,
  833  notwithstanding s. 627.728, an insurer may not cancel a new
  834  policy or binder during the first 60 days immediately following
  835  the effective date of the policy or binder for nonpayment of
  836  premium unless the reason for the cancellation is the issuance
  837  of a check for the premium that is dishonored for any reason.
  838         (7) Before the effective date of a binder or policy, a
  839  policy of private passenger motor vehicle insurance or a binder
  840  for such a policy may be initially issued in this state only if
  841  the insurer or agent has collected from the insured an amount
  842  equal to 2 months’ premium. An insurer, agent, or premium
  843  finance company may not, directly or indirectly, take any action
  844  resulting in the insured having paid from the insured’s own
  845  funds an amount less than the 2 months’ premium required by this
  846  subsection. This subsection applies without regard to whether
  847  the premium is financed by a premium finance company or is paid
  848  pursuant to a periodic payment plan of an insurer or an
  849  insurance agent.
  850         (a) This subsection does not apply if an insured or member
  851  of the insured’s family is renewing or replacing a policy or a
  852  binder for such policy written by the same insurer or a member
  853  of the same insurer group.
  854         (b) This subsection does not apply to an insurer that
  855  issues private passenger motor vehicle coverage primarily to
  856  active duty or former military personnel or their dependents.
  857         (c) This subsection does not apply if all policy payments
  858  are paid pursuant to a payroll deduction plan or an automatic
  859  electronic funds transfer payment plan from the policyholder,
  860  provided that the first policy payment is made by cash,
  861  cashier’s check, check, or a money order.
  862         (d) This subsection and subsection (4) do not apply if all
  863  policy payments to an insurer are paid pursuant to an automatic
  864  electronic funds transfer payment plan from an agent, a managing
  865  general agent, or a premium finance company and if the policy
  866  includes, at a minimum, personal injury protection pursuant to
  867  ss. 627.730-627.7407 627.730-627.7405; motor vehicle property
  868  damage liability pursuant to s. 627.7275; and bodily injury
  869  liability in at least the amount of $10,000 because of bodily
  870  injury to, or death of, one person in any one accident and in
  871  the amount of $20,000 because of bodily injury to, or death of,
  872  two or more persons in any one accident.
  873         (e) This subsection and subsection (4) do not apply if an
  874  insured has had a policy in effect for at least 6 months, the
  875  insured’s agent is terminated by the insurer that issued the
  876  policy, and the insured obtains coverage on the policy’s renewal
  877  date with a new company through the terminated agent.
  878         Section 15. Section 628.901, Florida Statutes, is amended
  879  to read:
  880         628.901 Definitions “Captive insurer” defined.—As used in
  881  For the purposes of this part, the term: except as provided in
  882  s. 628.903, a “captive insurer” is a domestic insurer
  883  established under part I to insure the risks of a specific
  884  corporation or group of corporations under common ownership
  885  owned by the corporation or corporations from which it accepts
  886  risk under a contract of insurance.
  887         (1) “Association” means a legal association of nursing
  888  homes, hospitals, skilled nursing facilities, assisted living
  889  facilities, or continuing care retirement communities.
  890         (2) “Association captive insurer” means a company that
  891  insures risks of the member organizations of the association and
  892  their affiliated companies.
  893         (3) “Captive insurer” means a pure captive insurer, an
  894  industrial insured captive insurer, or an association captive
  895  insurer domiciled in this state and formed or licensed under
  896  this part.
  897         (4) “Industrial insured” means an insured that:
  898         (a)Has gross assets in excess of $50 million;
  899         (b)Procures insurance through the use of a full-time
  900  employee of the insured who acts as an insurance manager or
  901  buyer or through the services of a person licensed as a property
  902  and casualty insurance agent, broker, or consultant in such
  903  person’s state of domicile;
  904         (c)Has at least 100 full-time employees; and
  905         (d)Pays annual premiums of at least $200,000 for each line
  906  of insurance purchased from the industrial insured captive
  907  insurer, or at least $75,000 for any line of coverage in excess
  908  of at least $25 million in the annual aggregate. The purchase of
  909  umbrella or general liability coverage in excess of $25 million
  910  in the annual aggregate is deemed to be the purchase of a single
  911  line of insurance.
  912         (5)“Industrial insured captive insurer” means a captive
  913  insurer that:
  914         (a)Has as its stockholders or members only industrial
  915  insureds that the captive insurer insures, or has as its sole
  916  stockholder a corporation whose sole stockholders are industrial
  917  insureds that the captive insurer insures; and
  918         1.Provides insurance only to the industrial insureds that
  919  are its stockholders or members, and affiliates thereof, or to
  920  the stockholders, and affiliates thereof, of its parent
  921  corporation; or
  922         2.Provides reinsurance only on risks written by insurers
  923  of industrial insureds who are the stockholders or members, and
  924  affiliates thereof, of the captive insurer, or the stockholders,
  925  and affiliates thereof, of the parent corporation of the captive
  926  insurer;
  927         (b)Maintains unimpaired capital and surplus of at least
  928  $20 million; and
  929         (c)If licensed in this state before December 31, 1999, or
  930  if any subsidiary formed by the licensed insurer on or after
  931  December 31, 1999, has:
  932         1.Gross assets in excess of $10 million and procures
  933  insurance through the use of a full-time employee of the insured
  934  who acts as an insurance manager or buyer or through the
  935  services of a person licensed as a property and casualty
  936  insurance agent, broker, or consultant in such person’s state of
  937  domicile;
  938         2.At least 25 full-time employees; and
  939         3.Annual aggregate premiums for all insurance risks which
  940  total at least $100,000.
  941  
  942  As used in this subsection, the term “affiliate” means a person
  943  that directly or indirectly, through one or more intermediaries,
  944  controls, is controlled by, or is under common control with one
  945  or more of the stockholders or members of an industrial insured
  946  captive insurer or one or more of the stockholders of the parent
  947  corporation of an industrial insured captive insurer.
  948         (6) “Pure captive insurer” means a company that insures the
  949  risks of its parent, affiliated companies, controlled
  950  unaffiliated businesses, or a combination thereof.
  951         Section 16. Section 628.903, Florida Statutes, is repealed.
  952         Section 17. Section 628.905, Florida Statutes, is amended
  953  to read:
  954         628.905 Licensing; authority.—In order to conduct insurance
  955  business in this state, a captive insurer must obtain a license
  956  from the office.
  957         (1) A Any captive insurer, if when permitted by its charter
  958  or articles of incorporation, may apply to the office for a
  959  license to provide commercial property, commercial casualty, and
  960  commercial marine insurance. coverage other than workers’
  961  compensation and employer’s liability insurance coverage, except
  962  that An industrial insured captive insurer may also apply for a
  963  license to provide workers’ compensation and employer’s
  964  liability insurance as set forth in subsection (5) (6).
  965         (2) A No captive insurer, other than an industrial insured
  966  captive insurer, may not shall insure or accept reinsurance on
  967  any risks other than those of its parent and affiliated
  968  companies.
  969         (3) In addition to information otherwise required by this
  970  code, each applicant captive insurer shall file with the office
  971  evidence:
  972         (a) Of the adequacy of the loss prevention program of its
  973  insureds.
  974         (b) That it intends to employ or contract with a reputable
  975  person or firm that possesses the appropriate expertise,
  976  experience, and character to manage the association captive
  977  insurer.
  978         (4) If an association captive insurer operates with
  979  separate cells or segregated accounts, a certificate of
  980  insurance used to satisfy financial responsibility laws shall be
  981  issued in an amount not exceeding the total funds in the
  982  segregated accounts or separate cells of each member
  983  organization of the association.
  984         (5)(4) An industrial insured captive insurer:
  985         (a) Need not be incorporated in this state if it has been
  986  validly incorporated under the laws of another jurisdiction;.
  987         (b)(5)An industrial insured captive insurer Is subject to
  988  all provisions of this part except as otherwise indicated; and.
  989         (c)(6)An industrial insured captive insurer May not
  990  provide workers’ compensation and employer’s liability insurance
  991  except in excess of at least $25 million in the annual
  992  aggregate.
  993         Section 18. Section 628.908, Florida Statutes, is created
  994  to read:
  995         628.908Principal place of business; annual meeting.—In
  996  order to conduct insurance business in this state, a licensed
  997  captive insurer must:
  998         (1) Maintain its principal place of business in this state;
  999  and
 1000         (2) Annually hold in this state at least one board of
 1001  directors’ meeting; or, in the case of a reciprocal insurer, one
 1002  subscriber’s advisory committee meeting; or, in the case of a
 1003  limited liability company, one managing board’s meeting.
 1004         Section 19. Paragraph (a) of subsection (2) and paragraph
 1005  (a) of subsection (3) of section 628.909, Florida Statutes, are
 1006  amended to read:
 1007         628.909 Applicability of other laws.—
 1008         (2) The following provisions of the Florida Insurance Code
 1009  shall apply to captive insurers who are not industrial insured
 1010  captive insurers to the extent that such provisions are not
 1011  inconsistent with this part:
 1012         (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
 1013  624.40851, 624.4095, 624.425, and 624.426.
 1014         (3) The following provisions of the Florida Insurance Code
 1015  shall apply to industrial insured captive insurers to the extent
 1016  that such provisions are not inconsistent with this part:
 1017         (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
 1018  624.40851, 624.4095, 624.425, 624.426, and 624.609(1).
 1019         Section 20. Section 634.403, Florida Statutes, is amended
 1020  to read:
 1021         634.403 License required; exemptions.—
 1022         (1) No person in this state shall provide or offer to
 1023  provide service warranties to residents of this state unless
 1024  authorized therefor under a subsisting license issued by the
 1025  office. The service warranty association shall pay to the office
 1026  a license fee of $200 for such license for each license year, or
 1027  part thereof, the license is in force.
 1028         (2) An insurer, while authorized to transact property or
 1029  casualty insurance in this state, may also transact a service
 1030  warranty business without additional qualifications or
 1031  authority, but is shall be otherwise subject to the applicable
 1032  provisions of this part.
 1033         (3) The office may, pursuant to s. 120.569, in its
 1034  discretion and without advance notice and hearing, issue an
 1035  immediate final order to cease and desist to any person or
 1036  entity which violates this section. The Legislature finds that a
 1037  violation of this section constitutes an imminent and immediate
 1038  threat to the public health, safety, and welfare of the
 1039  residents of this state.
 1040         (4) Any person that is an affiliate of a domestic insurer
 1041  as defined in chapter 624 is exempt from application of this
 1042  part if the person does not issue, or market or cause to be
 1043  marketed, service warranties to residents of this state and does
 1044  not administer service warranties that were originally issued to
 1045  residents of this state. The domestic insurer or its wholly
 1046  owned Florida licensed insurer must be the direct obligor of all
 1047  service warranties issued by such affiliate or must issue a
 1048  contractual liability insurance policy to such affiliate that
 1049  meets the conditions described in s. 634.406(3). If the office
 1050  of Insurance Regulation determines, after notice and opportunity
 1051  for a hearing, that a person’s intentional business practices do
 1052  not comply with any of the exemption requirements of this
 1053  subsection, the person is shall be subject to this part.
 1054         (5) A person is exempt from licensure under this section if
 1055  it complies with the following:
 1056         (a) The service warranties are sold only to persons who are
 1057  not residents of this state and the person does not issue,
 1058  market, or cause to be marketed service warranties to residents
 1059  of this state.
 1060         (b) The person submits a letter of notification to the
 1061  office upon the start of business from this state and annually
 1062  by March 1, which provides the following information:
 1063         1. The type of products offered and a statement certifying
 1064  that the products are not regulated in the state in which it is
 1065  transacting business or that the person is licensed in the state
 1066  in which it is transacting business.
 1067         2. The name of the person; the state of domicile; the home
 1068  address and Florida address of the person; the names of the
 1069  owners and their percentage of ownership; the names of the
 1070  officers and directors; the name, e-mail, and telephone number
 1071  of a contact person; the states in which it is transacting
 1072  business; and how many individuals are employed in this state.
 1073         (c) If the person ceases to do business from this state, it
 1074  provides written notification to the office within 30 days after
 1075  cessation.
 1076         (6)(5) Any person who provides, offers to provide, or holds
 1077  oneself out as providing or offering to provide a service
 1078  warranty to residents of in this state or from this state
 1079  without holding a subsisting license commits, in addition to any
 1080  other violation, a misdemeanor of the first degree, punishable
 1081  as provided in s. 775.082 or s. 775.083.
 1082         Section 21. Subsections (10) and (12) of section 817.234,
 1083  Florida Statutes, are amended to read:
 1084         817.234 False and fraudulent insurance claims.—
 1085         (10) In addition to any criminal liability, a person
 1086  convicted of violating any provision of this section for the
 1087  purpose of receiving insurance proceeds from a motor vehicle
 1088  insurance contract is subject to a civil penalty.
 1089         (a) Except for a violation of subsection (9), the civil
 1090  penalty shall be:
 1091         1. A fine up to $5,000 for a first offense.
 1092         2. A fine greater than $5,000, but not to exceed $10,000,
 1093  for a second offense.
 1094         3. A fine greater than $10,000, but not to exceed $15,000,
 1095  for a third or subsequent offense.
 1096         (b) The civil penalty for a violation of subsection (9)
 1097  must be at least $15,000, but may not exceed $50,000.
 1098         (c) The civil penalty shall be paid to the Insurance
 1099  Regulatory Trust Fund within the Department of Financial
 1100  Services and used by the department for the investigation and
 1101  prosecution of insurance fraud.
 1102         (d) This subsection does not prohibit a state attorney from
 1103  entering into a written agreement in which the person charged
 1104  with the violation does not admit to or deny the charges but
 1105  consents to payment of the civil penalty. As used in this
 1106  section, the term “insurer” means any insurer, health
 1107  maintenance organization, self-insurer, self-insurance fund, or
 1108  other similar entity or person regulated under chapter 440 or
 1109  chapter 641 or by the Office of Insurance Regulation under the
 1110  Florida Insurance Code.
 1111         (12) As used in this section, the term:
 1112         (a) “Insurer” means any insurer, health maintenance
 1113  organization, self-insurer, self-insurance fund, or similar
 1114  entity or person regulated under chapter 440 or chapter 641 or
 1115  by the Office of Insurance Regulation under the Florida
 1116  Insurance Code.
 1117         (b)(a) “Property” means property as defined in s. 812.012.
 1118         (c)(b) “Value” has the same meaning means value as defined
 1119  in s. 812.012.
 1120         Section 22. Except as otherwise expressly provided in this
 1121  act and except for this section, which shall take effect upon
 1122  this act becoming a law, this act shall take effect July 1,
 1123  2011.

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