December 16, 2019
Print This PagePrint This Page

  *
Session:
Bill #:
Session:
Chamber: View Search Tips
Search Term:
Year: View Search Tips
Search Term:
Senate Bill 3024

Senate Bill sb3024

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2004                                  SB 3024

    By Senator Smith





    14-1301-04                                         See HB 1687

  1                      A bill to be entitled

  2         An act relating to insurers; amending s.

  3         626.854, F.S.; limiting the scope of a public

  4         adjuster's authority; requiring public

  5         adjusters to provide certain information and

  6         make certain disclosures; prohibiting a public

  7         adjuster from restricting access to certain

  8         entities and communications with certain

  9         entities; requiring public adjusters to submit

10         certain recorded statements and sworn

11         examinations under certain circumstances;

12         amending s. 631.021, F.S.; authorizing certain

13         domiciliary courts to exercise exclusive

14         jurisdiction over certain persons under certain

15         circumstances; specifying the Circuit Court of

16         Leon County as having exclusive jurisdiction

17         over certain proceedings and claims; amending

18         s. 631.041, F.S.; entitling the estates of

19         certain injured insurers to actual damages;

20         authorizing a receivership court to impose

21         additional sanctions; amending s. 631.0515,

22         F.S.; subjecting certain managing general

23         agents or holding companies to court

24         jurisdiction under certain circumstances;

25         amending s. 631.141, F.S.; specifying certain

26         expenses as administrative and recoverable by a

27         receiver in certain proceedings; amending s.

28         631.205, F.S.; specifying that entry of certain

29         orders does not constitute anticipatory breach

30         of certain contracts or serve as grounds for

31         certain adverse contract actions by a

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 3024
    14-1301-04                                         See HB 1687




 1         reinsurer; creating s. 631.206, F.S.; voiding

 2         certain contractual arbitration provisions by

 3         insurers in receivership; specifying a

 4         replacement arbitration provision; amending s.

 5         631.261, F.S.; voiding certain transfers or

 6         liens made by certain persons prior to certain

 7         delinquency proceedings; specifying a criterion

 8         for making certain transfers; amending ss.

 9         631.262 and 631.263, F.S.; specifying a

10         criterion for making certain transfers;

11         creating s. 631.400, F.S.; requiring a receiver

12         to deposit certain estate funds of a liquidated

13         insurance company into a separate closed estate

14         account under certain circumstances; specifying

15         use of such funds by the Division of

16         Rehabilitation and Liquidation of the

17         Department of Financial Services for certain

18         purposes; specifying nonreversion of certain

19         funds to the state but retention for certain

20         uses; providing an effective date.

21  

22  Be It Enacted by the Legislature of the State of Florida:

23  

24         Section 1.  Section 626.854, Florida Statutes, is

25  amended to read:

26         626.854  "Public adjuster" defined; prohibitions;

27  disclosure requirements.--The Legislature finds that it is

28  necessary for the protection of the public to regulate public

29  insurance adjusters and to prevent the unauthorized practice

30  of law.

31  

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 3024
    14-1301-04                                         See HB 1687




 1         (1)  A "public adjuster" is any person, except a duly

 2  licensed attorney at law as hereinafter in s. 626.860

 3  provided, who, for money, commission, or any other thing of

 4  value, prepares, completes, or files an insurance claim form

 5  for an insured or third-party claimant or who, for money,

 6  commission, or any other thing of value, acts or aids in any

 7  manner on behalf of an insured or third-party claimant in

 8  negotiating for or effecting the settlement of a claim or

 9  claims for loss or damage covered by an insurance contract or

10  who advertises for employment as an adjuster of such claims,

11  and also includes any person who, for money, commission, or

12  any other thing of value, solicits, investigates, or adjusts

13  such claims on behalf of any such public adjuster.

14         (2)  This definition does not apply to:

15         (a)  A licensed health care provider or employee

16  thereof who prepares or files a health insurance claim form on

17  behalf of a patient.

18         (b)  A person who files a health claim on behalf of

19  another and does so without compensation.

20         (3)(a)  A public adjuster may not give legal advice. A

21  public adjuster may not act on behalf of or aid any person in

22  negotiating or settling a claim relating to bodily injury,

23  death, or noneconomic damages, or issues relating to

24  extra-contractual damages, violations of part IX, tort claims,

25  statutory interest, or costs and attorney's fees.

26         (b)  A public adjuster must provide to the insurer and

27  its representatives, together with the notice of

28  representation, a complete copy of any contract between the

29  public adjuster and the insured or claimant. The public

30  adjuster must also provide the insurer and its representatives

31  with a copy of any amended, revised, or supplemental contract

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 3024
    14-1301-04                                         See HB 1687




 1  entered into at any point during the claims handling process

 2  immediately upon entering into such amended, revised, or

 3  supplemental contract. Disclosures under this paragraph shall

 4  be in a form specified by rule of the Financial Services

 5  Commission.

 6         (c)  A public adjuster must disclose to his or her

 7  client and to the insurer any direct or indirect interest the

 8  public adjuster may have, and any compensation, referral fee,

 9  or other consideration the public adjuster may receive from

10  any person performing services in connection with the

11  adjustment of a claim or the repair or replacement of insured

12  property.

13         (d)  A public adjuster may not at any time restrict

14  access to an insured, a claimant, or insured property by an

15  insurer, company adjuster, independent adjuster, attorney, or

16  other person acting on behalf of the insurer.

17         (e)  A public adjuster may not, in connection with any

18  claim, refuse to speak with an insurer, company adjuster,

19  independent adjuster, attorney, or other person acting on

20  behalf of the insurer. A public adjuster shall provide a

21  recorded statement and an examination under oath upon request

22  of an insurer, company adjuster, independent adjuster,

23  attorney, or other person acting on behalf of the insurer.

24         (4)  For purposes of this section, the term "insured"

25  includes only the policyholder and any beneficiaries named or

26  similarly identified in the policy.

27         Section 2.  Subsection (6) is added to section 631.021,

28  Florida Statutes, to read:

29         631.021  Jurisdiction of delinquency proceeding; venue;

30  change of venue; exclusiveness of remedy; appeal.--

31  

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 3024
    14-1301-04                                         See HB 1687




 1         (6)  The domiciliary court acquiring jurisdiction over

 2  persons subject to this section may exercise exclusive

 3  jurisdiction to the exclusion of all other courts, except as

 4  limited by the provisions of this section. Upon the issuance

 5  of an order of conservation, rehabilitation, or liquidation,

 6  the Circuit Court of Leon County shall have exclusive

 7  jurisdiction with respect to assets or property of any insurer

 8  subject to such proceedings and claims against said insurer's

 9  assets or property.

10         Section 3.  Subsection (6) is added to section 631.041,

11  Florida Statutes, to read:

12         631.041  Automatic stay; relief from stay;

13  injunctions.--

14         (6)  The estate of an insurer in rehabilitation or

15  liquidation which is injured by any willful violation of an

16  applicable stay or injunction shall be entitled to actual

17  damages, including costs and attorney's fees, and, in

18  appropriate circumstances, the receivership court may impose

19  additional sanctions.

20         Section 4.  Section 631.0515, Florida Statutes, is

21  amended to read:

22         631.0515  Appointment of receiver; insurance holding

23  company.--A delinquency proceeding pursuant to this chapter

24  constitutes the sole and exclusive method of dissolving,

25  liquidating, rehabilitating, reorganizing, conserving, or

26  appointing a receiver of a Florida corporation which is not

27  insolvent as defined by s. 607.01401(16); which through its

28  shareholders, board of directors, or governing body is

29  deadlocked in the management of its affairs; and which

30  directly or indirectly owns all of the stock of a Florida

31  domestic insurer. The department may petition for an order

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 3024
    14-1301-04                                         See HB 1687




 1  directing it to rehabilitate such corporation if the interests

 2  of policyholders or the public will be harmed as a result of

 3  the deadlock. The department shall use due diligence to

 4  resolve the deadlock. Whether or not the department petitions

 5  for an order, the circuit court shall not have jurisdiction

 6  pursuant to s. 607.271, s. 607.274, or s. 607.277 to dissolve,

 7  liquidate, or appoint receivers with respect to, a Florida

 8  corporation which directly or indirectly owns all of the stock

 9  of a Florida domestic insurer and which is not insolvent as

10  defined by s. 607.01401(16). However, a managing general agent

11  or holding company with a controlling interest in a domestic

12  insurer in this state is subject to jurisdiction of the court

13  under the provisions of s. 631.025.

14         Section 5.  Paragraph (a) of subsection (7) of section

15  631.141, Florida Statutes, is amended to read:

16         631.141  Conduct of delinquency proceeding; domestic

17  and alien insurers.--

18         (7)(a)  In connection with a delinquency proceeding,

19  the department may appoint one or more special agents to act

20  for it, and it may employ such counsel, clerks, and assistants

21  as it deems necessary. The compensation of the special agents,

22  counsel, clerks, or assistants and all expenses of taking

23  possession of the insurer and of conducting the proceeding

24  shall be fixed by the receiver, subject to the approval of the

25  court, and shall be paid out of the funds or assets of the

26  insurer. Such expenses are administrative expenses and are

27  recoverable by the receiver in any actions in which the

28  receiver is authorized or entitled to recover its

29  administrative expenses. Within the limits of duties imposed

30  upon them, special agents shall possess all the powers given

31  to and, in the exercise of those powers, shall be subject to

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 3024
    14-1301-04                                         See HB 1687




 1  all duties imposed upon the receiver with respect to such

 2  proceeding.

 3         Section 6.  Section 631.205, Florida Statutes, is

 4  amended to read:

 5         631.205  Reinsurance proceeds.--All reinsurance

 6  proceeds payable under a contract of reinsurance to which the

 7  insolvent insurer is a party are to be paid directly to the

 8  domiciliary receiver as general assets of the receivership

 9  estate unless the reinsurance contract contains a clause which

10  specifically names the insolvent insurer's insured as a direct

11  beneficiary of the reinsurance contract. The entry of an order

12  of conservation, rehabilitation, or liquidation shall not be

13  deemed an anticipatory breach of any reinsurance contract, nor

14  shall it be grounds for retroactive revocation or retroactive

15  cancellation of any reinsurance contracts by the reinsurer.

16         Section 7.  Section 631.206, Florida Statutes, is

17  created to read:

18         631.206  Arbitration.--If an insurer in receivership

19  has entered into an agreement containing an arbitration

20  provision for resolution of disputes, that provision is void

21  and shall be replaced by operation of law with the following

22  provision:

23         Any controversy or claim arising out of or

24         relating to this contract, or the breach

25         thereof, shall be settled by arbitration

26         pursuant to the American Arbitration

27         Association Commercial Arbitration Rules and

28         chapter 682, Florida Statutes, and judgment on

29         the award rendered by the arbitrators shall be

30         entered by the receivership court. Venue shall

31         be in Leon County, Florida. Disputes shall be

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 3024
    14-1301-04                                         See HB 1687




 1         submitted to a panel of three arbitrators, one

 2         to be chosen by each party and the third by the

 3         two so chosen. Arbitrators shall be selected

 4         from a list of potential qualified arbitrators

 5         with 10 years' experience involving the

 6         insurance industry. If the parties do not agree

 7         upon the qualifications of a mediator, each

 8         party shall select its mediator from a list of

 9         potential mediators approved by the

10         receivership court.

11         Section 8.  Subsection (1) of section 631.261, Florida

12  Statutes, is amended, and subsection (4) is added to that

13  section, to read:

14         631.261  Voidable transfers.--

15         (1)(a)  Any transfer of, or lien upon, the property of

16  an insurer or affiliate which is made or created within 4

17  months prior to the commencement of any delinquency proceeding

18  under this chapter which gives with the intent of giving to

19  any creditor of the insurer a preference or enables of

20  enabling the creditor to obtain a greater percentage of her or

21  his debt than any other creditor of the same class, and which

22  is accepted by such creditor having reasonable cause to

23  believe that such preference will occur, shall be voidable.

24         (b)  Any transfer of, or lien upon, the property of an

25  insurer or affiliate which is made or created between 4 months

26  and 1 year prior to the commencement of any delinquency

27  proceeding under this chapter is void if such transfer or lien

28  inured to the benefit of a director, officer, employee,

29  stockholder, member, subscriber, affiliate, managing general

30  agent, or insider or any relative of any director, officer,

31  

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 3024
    14-1301-04                                         See HB 1687




 1  employee, stockholder, member, subscriber, affiliate, managing

 2  general agent, or insider.

 3         (4)  For purposes of this section, a transfer is not

 4  made or created until the insurer or affiliate has acquired

 5  rights in the property transferred.

 6         Section 9.  Paragraph (e) of subsection (2) of section

 7  631.262, Florida Statutes, is redesignated as paragraph (f)

 8  and amended, and new paragraph (e) is added to that

 9  subsection, to read:

10         631.262  Transfers prior to petition.--

11         (2)  Transfers shall be deemed to have been made or

12  suffered, or obligations incurred, when perfected according to

13  the following criteria:

14         (a)  A transfer of property other than real property

15  shall be deemed to be made or suffered when it becomes so far

16  perfected that no subsequent lien obtainable by legal or

17  equitable proceedings on a simple contract could become

18  superior to the rights of the transferee.;

19         (b)  A transfer of real property shall be deemed to be

20  made or suffered when it becomes so far perfected that no

21  subsequent bona fide purchaser from the insurer could obtain

22  rights superior to the rights of the transferee.;

23         (c)  A transfer which creates an equitable lien shall

24  not be deemed to be perfected if there are available means by

25  which a legal lien could be created.;

26         (d)  Any transfer not perfected prior to the filing of

27  a petition in a delinquency proceeding shall be deemed to be

28  made immediately before the filing of a successful petition.;

29         (e)  For the purposes of this section, a transfer is

30  not made until the insurer or affiliate has acquired rights in

31  the property transferred.

                                  9

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 3024
    14-1301-04                                         See HB 1687




 1         (f)(e)  Paragraphs (a)-(e)(d) apply whether or not

 2  there are or were creditors who might have obtained any liens

 3  or persons who might have become bona fide purchasers.

 4         Section 10.  Subsection (6) is added to section

 5  631.263, Florida Statutes, to read:

 6         631.263  Transfers after petition.--

 7         (6)  For the purposes of this section, a transfer is

 8  not made until the insurer or affiliate has acquired rights in

 9  the property transferred.

10         Section 11.  Section 631.400, Florida Statutes, is

11  created to read:

12         631.400  Closed estate account.--

13         (1)  If unclaimed funds remain in the estate of a

14  liquidated insurance company after the estate is closed or a

15  receiver recovers funds in an estate of a liquidated insurance

16  company after the estate is closed, the receiver shall deposit

17  those funds when received into a separate closed estate

18  account.

19         (2)  Funds received and deposited in the account

20  pursuant to subsection (1) shall be used by the Division of

21  Rehabilitation and Liquidation of the Department of Financial

22  Services to defray the division's expenses in the discharge of

23  its duties as prescribed by law, including the initiation of

24  delinquency proceedings and all other legitimate expenses

25  relating to the discharge of the duties imposed in and charged

26  to the division.

27         (3)  If, at the end of any fiscal year, a balance of

28  funds remains in a closed estate account, such balance shall

29  not revert to the general fund of the state but shall be

30  retained in the closed estate account to be used for the

31  purposes set forth in subsection (2).

                                  10

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 3024
    14-1301-04                                         See HB 1687




 1         Section 12.  This act shall take effect upon becoming a

 2  law.

 3  

 4  

 5  

 6  

 7  

 8  

 9  

10  

11  

12  

13  

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  11

CODING: Words stricken are deletions; words underlined are additions.

Site Map
Session:   Bills ·   Calendars ·   Bound Journals ·   Citator ·   Search ·   Appropriations ·   Redistricting ·   Bill Information Reports
Committee Publications
Historical Information
Statutes:   Introduction ·   View Statutes ·   Search Statutes
Flsenate.gov
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.    Copyright © 2000-2019 State of Florida.     Privacy Statement     Contact Us     Get Acrobat Reader