December 08, 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 sb3024c1

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

    By the Committee on Banking and Insurance; and Senator Smith





    311-2556-04

  1                      A bill to be entitled

  2         An act relating to insurers; amending s.

  3         626.321, F.S.; limiting the types of business

  4         that may be transacted by personal lines

  5         agents; amending s. 626.854, F.S.; specifying

  6         duties of a public adjuster relating to

  7         contractors; prohibiting a public adjuster from

  8         restricting certain access and communications;

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

10         domiciliary courts to exercise exclusive

11         jurisdiction over certain persons under certain

12         circumstances; specifying the Circuit Court of

13         Leon County as having exclusive jurisdiction

14         over certain proceedings and claims; amending

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

16         certain injured insurers to actual damages;

17         authorizing a receivership court to impose

18         additional sanctions; amending s. 631.0515,

19         F.S.; subjecting certain managing general

20         agents or holding companies to court

21         jurisdiction under certain circumstances;

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

23         expenses as administrative and recoverable by a

24         receiver in certain proceedings; amending s.

25         631.205, F.S.; specifying that entry of certain

26         orders does not constitute anticipatory breach

27         of certain contracts or serve as grounds for

28         certain adverse contract actions by a

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

30         certain contractual arbitration provisions by

31         insurers in receivership; specifying a

                                  1

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1         replacement arbitration provision; amending s.

 2         631.261, F.S.; voiding certain transfers or

 3         liens made by certain persons prior to certain

 4         delinquency proceedings; specifying a criterion

 5         for making certain transfers; amending ss.

 6         631.262 and 631.263, F.S.; specifying a

 7         criterion for making certain transfers;

 8         amending s. 625.081, F.S.; excepting credit

 9         disability insurance from certain active life

10         reserve requirements for health insurance;

11         amending s. 625.121, F.S.; providing for

12         additional minimum standards for valuation of

13         certain policies and contracts; providing

14         minimum reserve requirements for credit life

15         and disability policies; amending s. 627.476,

16         F.S.; providing additional mortality tables to

17         be used under the Standard Nonforfeiture Law

18         for Life Insurance; repealing s. 625.131, F.S.,

19         relating to special reserve bases for credit

20         life and disability policies; amending ss.

21         651.026 and 651.0261, F.S.; providing that the

22         Financial Services Commission may require that

23         certain reports and statements filed by

24         continuing care providers and facilities be

25         filed electronically; amending s. 651.033,

26         F.S.; prescribing additional facilities in

27         which escrow accounts may be deposited;

28         amending s. 651.118, F.S.; prescribing

29         circumstances under which sheltered nursing

30         home beds may be used for persons not residents

31  

                                  2

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1         of a continuing care facility; providing an

 2         effective date.

 3  

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

 5  

 6         Section 1.  Paragraph (d) of subsection (1) of section

 7  626.321, Florida Statutes, is amended to read:

 8         626.321  Limited licenses.--

 9         (1)  The department shall issue to a qualified

10  individual, or a qualified individual or entity under

11  paragraphs (c), (d), (e), and (i), a license as agent

12  authorized to transact a limited class of business in any of

13  the following categories:

14         (d)  Baggage and motor vehicle excess liability

15  insurance.--

16         1.  License covering only insurance of personal effects

17  except as provided in subparagraph 2. The license may be

18  issued only:

19         a.  To a full-time salaried employee of a common

20  carrier or a full-time salaried employee or owner of a

21  transportation ticket agency, which person is engaged in the

22  sale or handling of transportation of baggage and personal

23  effects of travelers, and may authorize the sale of such

24  insurance only in connection with such transportation; or

25         b.  To the full-time salaried employee of a licensed

26  general lines agent or to, a full-time salaried employee of a

27  business which offers motor vehicles for rent or lease, or to

28  a business office of a business entity that which offers motor

29  vehicles for rent or lease if insurance sales activities

30  authorized by the license are in connection with and

31  incidental to the rental of a motor vehicle limited to

                                  3

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1  full-time salaried employees. An entity applying for a license

 2  under this subsection:

 3         (I)  Is required to submit only one application for a

 4  license under s. 626.171. The requirements of s. 626.171(5)

 5  shall apply only to the officers and directors of the entity

 6  submitting the application.

 7         (II)  Is required to obtain a license for each office,

 8  branch office, or place of business making use of the entity's

 9  business name by applying to the department for the license on

10  a simplified application form developed by rule of the

11  department for this purpose.

12         (III)  Is required to pay the applicable fees for a

13  license as prescribed in s. 624.501, be appointed under s.

14  626.112, and pay the prescribed appointment fee under s.

15  624.501. A licensed and appointed entity shall be directly

16  responsible and accountable for all acts of the licensee's

17  employees.

18  

19  The purchaser of baggage insurance shall be provided written

20  information disclosing that the insured's homeowner's policy

21  may provide coverage for loss of personal effects and that the

22  purchase of such insurance is not required in connection with

23  the purchase of tickets or in connection with the lease or

24  rental of a motor vehicle.

25         2.  A business entity that office licensed pursuant to

26  subparagraph 1., or a person licensed pursuant to subparagraph

27  1. who is a full-time salaried employee of a business which

28  offers motor vehicles for rent or lease, may include lessees

29  under a master contract providing coverage to the lessor or

30  may transact excess motor vehicle liability insurance

31  providing coverage in excess of the standard liability limits

                                  4

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1  provided by the lessor in its lease to a person renting or

 2  leasing a motor vehicle from the licensee's employer for

 3  liability arising in connection with the negligent operation

 4  of the leased or rented motor vehicle, provided that the lease

 5  or rental agreement is for not more than 30 days; that the

 6  lessee is not provided coverage for more than 30 consecutive

 7  days per lease period, and, if the lease is extended beyond 30

 8  days, the coverage may be extended one time only for a period

 9  not to exceed an additional 30 days; that the lessee is given

10  written notice that his or her personal insurance policy

11  providing coverage on an owned motor vehicle may provide

12  additional excess coverage; and that the purchase of the

13  insurance is not required in connection with the lease or

14  rental of a motor vehicle. The excess liability insurance may

15  be provided to the lessee as an additional insured on a policy

16  issued to the licensee's employer.

17         3.  A business entity that office licensed pursuant to

18  subparagraph 1., or a person licensed pursuant to subparagraph

19  1. who is a full-time salaried employee of a business which

20  offers motor vehicles for rent or lease, may, as an agent of

21  an insurer, transact insurance that provides coverage for the

22  liability of the lessee to the lessor for damage to the leased

23  or rented motor vehicle if:

24         a.  The lease or rental agreement is for not more than

25  30 days; or the lessee is not provided coverage for more than

26  30 consecutive days per lease period, but, if the lease is

27  extended beyond 30 days, the coverage may be extended one time

28  only for a period not to exceed an additional 30 days;

29         b.  The lessee is given written notice that his or her

30  personal insurance policy that provides coverage on an owned

31  

                                  5

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1  motor vehicle may provide such coverage with or without a

 2  deductible; and

 3         c.  The purchase of the insurance is not required in

 4  connection with the lease or rental of a motor vehicle.

 5         Section 2.  Subsections (1) and (3) of section 626.854,

 6  Florida Statutes, are amended to read:

 7         626.854  "Public adjuster" defined; prohibitions.--The

 8  Legislature finds that it is necessary for the protection of

 9  the public to regulate public insurance adjusters and to

10  prevent the unauthorized practice of law.

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

12  licensed attorney at law as hereinafter in s. 626.860

13  provided, or an employee of such an attorney under the

14  attorney's supervision, who, for money, commission, or any

15  other thing of value, prepares, completes, or files an

16  insurance claim form for an insured or third-party claimant or

17  who, for money, commission, or any other thing of value, acts

18  or aids in any manner on behalf of an insured or third-party

19  claimant in negotiating for or effecting the settlement of a

20  claim or claims for loss or damage covered by an insurance

21  contract or who advertises for employment as an adjuster of

22  such claims, and also includes any person who, for money,

23  commission, or any other thing of value, solicits,

24  investigates, or adjusts such claims on behalf of any such

25  public adjuster.

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

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

28  negotiating or settling a claim relating to bodily injury,

29  death, or noneconomic damages, extra-contractual damages

30  unrelated to the damages under the policy, unfair claims

31  practices violations, tort claims, or statutory interest,

                                  6

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1  costs, and attorney's fees. Nothing in this paragraph shall be

 2  construed to prohibit a public adjuster from testifying or

 3  consulting with an attorney in pursuing claims for

 4  extra-contractual damages or unfair claims settlement

 5  practices.

 6         (b)  A public adjuster shall ensure that if a

 7  contractor, architect, engineer, or other licensed

 8  professional is used in formulating estimates or otherwise

 9  participates in the adjustment of the claim, the professional

10  must be licensed by the Florida Department of Business and

11  Professional Regulation.

12         (c)  A public adjuster shall not restrict or prevent an

13  insurer, company or independent adjuster, attorney, or any

14  other person acting on behalf of the insurer from having

15  reasonable access at reasonable times to an insured or

16  claimant or to the insured property which is the subject of a

17  claim.

18         Section 3.  Subsection (6) is added to section 631.021,

19  Florida Statutes, to read:

20         631.021  Jurisdiction of delinquency proceeding; venue;

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

22         (6)  The domiciliary court acquiring jurisdiction over

23  persons subject to this section may exercise exclusive

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

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

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

27  the Circuit Court of Leon County shall have exclusive

28  jurisdiction with respect to assets or property of any insurer

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

30  assets or property.

31  

                                  7

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1         Section 4.  Subsection (6) is added to section 631.041,

 2  Florida Statutes, to read:

 3         631.041  Automatic stay; relief from stay;

 4  injunctions.--

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

 6  liquidation which is injured by any willful violation of an

 7  applicable stay or injunction shall be entitled to actual

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

 9  appropriate circumstances, the receivership court may impose

10  additional sanctions.

11         Section 5.  Section 631.0515, Florida Statutes, is

12  amended to read:

13         631.0515  Appointment of receiver; insurance holding

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

15  constitutes the sole and exclusive method of dissolving,

16  liquidating, rehabilitating, reorganizing, conserving, or

17  appointing a receiver of a Florida corporation which is not

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

19  shareholders, board of directors, or governing body is

20  deadlocked in the management of its affairs; and which

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

22  domestic insurer. The department may petition for an order

23  directing it to rehabilitate such corporation if the interests

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

25  the deadlock. The department shall use due diligence to

26  resolve the deadlock. Whether or not the department petitions

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

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

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

30  corporation which directly or indirectly owns all of the stock

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

                                  8

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




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

 2  or holding company with a controlling interest in a domestic

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

 4  under the provisions of s. 631.025.

 5         Section 6.  Paragraph (a) of subsection (7) of section

 6  631.141, Florida Statutes, is amended to read:

 7         631.141  Conduct of delinquency proceeding; domestic

 8  and alien insurers.--

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

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

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

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

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

14  possession of the insurer and of conducting the proceeding

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

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

17  insurer. Such expenses are administrative expenses and are

18  recoverable by the receiver in any actions in which the

19  receiver is authorized or entitled to recover its

20  administrative expenses. Within the limits of duties imposed

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

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

23  all duties imposed upon the receiver with respect to such

24  proceeding.

25         Section 7.  Section 631.205, Florida Statutes, is

26  amended to read:

27         631.205  Reinsurance proceeds.--All reinsurance

28  proceeds payable under a contract of reinsurance to which the

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

30  domiciliary receiver as general assets of the receivership

31  estate unless the reinsurance contract contains a clause which

                                  9

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




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

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

 3  of conservation, rehabilitation, or liquidation shall not be

 4  deemed an anticipatory breach of any reinsurance contract, nor

 5  shall insolvency or notice of insolvency be grounds for

 6  retroactive revocation or retroactive cancellation of any

 7  reinsurance contracts by the reinsurer.

 8         Section 8.  Section 631.206, Florida Statutes, is

 9  created to read:

10         631.206  Arbitration.--If an insurer in receivership

11  has entered into an agreement containing an arbitration

12  provision for resolution of disputes, that provision is void

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

14  provision:

15  

16         Any controversy or claim arising out of or

17         relating to this contract, or the breach

18         thereof, shall be settled by arbitration

19         pursuant to the American Arbitration

20         Association Commercial Arbitration Rules and

21         chapter 682, Florida Statutes, and judgment on

22         the award rendered by the arbitrators shall be

23         entered by the receivership court. Venue shall

24         be in Leon County, Florida. Disputes shall be

25         submitted to a panel of three arbitrators, one

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

27         two so chosen. Arbitrators shall be selected

28         from a list of potential qualified arbitrators

29         with 10 years' experience involving the

30         insurance industry. If the parties do not agree

31         upon the qualifications of a mediator, each

                                  10

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1         party shall select its mediator from a list of

 2         potential mediators approved by the

 3         receivership court.

 4  

 5         Section 9.  Subsection (1) of section 631.261, Florida

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

 7  section, to read:

 8         631.261  Voidable transfers.--

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

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

11  months prior to the commencement of any delinquency proceeding

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

13  any creditor of the insurer a preference or enables of

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

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

16  is accepted by such creditor having reasonable cause to

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

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

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

20  and 1 year prior to the commencement of any delinquency

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

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

23  stockholder, member, subscriber, affiliate, managing general

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

25  employee, stockholder, member, subscriber, affiliate, managing

26  general agent, or insider.

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

28  made or created until the insurer or affiliate has acquired

29  rights in the property transferred.

30         Section 10.  Subsection (2) of section 631.262, Florida

31  Statutes, is amended to read:

                                  11

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1         631.262  Transfers prior to petition.--

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

 3  suffered, or obligations incurred, when perfected according to

 4  the following criteria:

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

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

 7  perfected that no subsequent lien obtainable by legal or

 8  equitable proceedings on a simple contract could become

 9  superior to the rights of the transferee.;

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

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

12  subsequent bona fide purchaser from the insurer could obtain

13  rights superior to the rights of the transferee.;

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

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

16  which a legal lien could be created.;

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

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

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

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

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

22  the property transferred.

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

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

25  or persons who might have become bona fide purchasers.

26         Section 11.  Subsection (6) is added to section

27  631.263, Florida Statutes, to read:

28         631.263  Transfers after petition.--

29         (6)  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.

                                  12

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1         Section 12.  Section 625.081, Florida Statutes, is

 2  amended to read:

 3         625.081  Reserve for health insurance.--For all health

 4  insurance policies, the insurer shall maintain an active life

 5  reserve which places a sound value on the insurer's

 6  liabilities under such policies; is not less than the reserve

 7  according to appropriate standards set forth in rules issued

 8  by the commission; and, with the exception of credit

 9  disability insurance, in no event, is less in the aggregate

10  than the pro rata gross unearned premiums for such policies.

11         Section 13.  Paragraphs (a), (e), and (f) of subsection

12  (5) and subsection (13) of section 625.121, Florida Statutes,

13  are amended, and paragraphs (k) and (l) are added to

14  subsection (5) of that section, to read:

15         625.121  Standard Valuation Law; life insurance.--

16         (5)  MINIMUM STANDARD FOR VALUATION OF POLICIES AND

17  CONTRACTS ISSUED ON OR AFTER OPERATIVE DATE OF STANDARD

18  NONFORFEITURE LAW.--Except as otherwise provided in paragraph

19  (h) and subsections (6), (11), and (14), the minimum standard

20  for the valuation of all such policies and contracts issued on

21  or after the operative date of s. 627.476 (Standard

22  Nonforfeiture Law for Life Insurance) shall be the

23  commissioners' reserve valuation method defined in subsections

24  (7), (11), and (14); 5 percent interest for group annuity and

25  pure endowment contracts and 3.5 percent interest for all

26  other such policies and contracts, or in the case of life

27  insurance policies and contracts, other than annuity and pure

28  endowment contracts, issued on or after July 1, 1973, 4

29  percent interest for such policies issued prior to October 1,

30  1979, and 4.5 percent interest for such policies issued on or

31  after October 1, 1979; and the following tables:

                                  13

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1         (a)  For all ordinary policies of life insurance issued

 2  on the standard basis, excluding any disability and accidental

 3  death benefits in such policies:

 4         1.  For policies issued prior to the operative date of

 5  s. 627.476(9), the commissioners' 1958 Standard Ordinary

 6  Mortality Table; except that, for any category of such

 7  policies issued on female risks, modified net premiums and

 8  present values, referred to in subsection (7), may be

 9  calculated according to an age not more than 6 years younger

10  than the actual age of the insured.; and

11         2.  For policies issued on or after the operative date

12  of s. 627.476(9), the commissioners' 1980 Standard Ordinary

13  Mortality Table or, at the election of the insurer for any one

14  or more specified plans of life insurance, the commissioners'

15  1980 Standard Ordinary Mortality Table with Ten-Year Select

16  Mortality Factors.

17         3.  For policies issued on or after July 1, 2004,

18  ordinary mortality tables, adopted after 1980 by the National

19  Association of Insurance Commissioners, adopted by rule by the

20  commission for use in determining the minimum standard of

21  valuation for those policies.

22         (e)  For total and permanent disability benefits in or

23  supplementary to ordinary policies or contracts:

24         1.  For policies or contracts issued on or after

25  January 1, 1966, the tables of period 2 disablement rates and

26  the 1930 to 1950 termination rates of the 1952 disability

27  study of the Society of Actuaries, with due regard to the type

28  of benefit.;

29         2.  For policies or contracts issued on or after

30  January 1, 1961, and prior to January 1, 1966, either those

31  

                                  14

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1  tables or, at the option of the insurer, the class three

 2  disability table (1926).; and

 3         3.  For policies issued prior to January 1, 1961, the

 4  class three disability table (1926).

 5         4.  For policies or contracts issued on or after July

 6  1, 2004, tables of disablement rates and termination rates

 7  adopted after 1980 by the National Association of Insurance

 8  Commissioners, adopted by rule by the commission for use in

 9  determining the minimum standard of valuation for those

10  policies or contracts.

11  

12  Any such table for active lives shall be combined with a

13  mortality table permitted for calculating the reserves for

14  life insurance policies.

15         (f)  For accidental death benefits in or supplementary

16  to policies:

17         1.  For policies issued on or after January 1, 1966,

18  the 1959 Accidental Death Benefits Table.;

19         2.  For policies issued on or after January 1, 1961,

20  and prior to January 1, 1966, either that table or, at the

21  option of the insurer, the Intercompany Double Indemnity

22  Mortality Table.; and

23         3.  For policies issued prior to January 1, 1961, the

24  Intercompany Double Indemnity Mortality Table.

25         4.  For policies issued on or after July 1, 2004,

26  tables of accidental death benefits adopted after 1980 by the

27  National Association of Insurance Commissioners, adopted by

28  rule by the commission for use in determining the minimum

29  standard of valuation for those policies.

30  

31  

                                  15

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1  Either table shall be combined with a mortality table

 2  permitted for calculating the reserves for life insurance

 3  policies.

 4         (k)  For individual annuity and pure endowment

 5  contracts issued on or after July 1, 2004, excluding any

 6  disability and accidental death benefits purchased under those

 7  contracts, individual annuity mortality tables adopted after

 8  1980 by the National Association of Insurance Commissioners,

 9  adopted by rule by the commission for use in determining the

10  minimum standard of valuation for those contracts.

11         (l)  For all annuities and pure endowments purchased on

12  or after July 1, 2004, under group annuity and pure endowment

13  contracts, excluding any disability and accidental death

14  benefits purchased under those contracts, group annuity

15  mortality tables adopted after 1980 by the National

16  Association of Insurance Commissioners, adopted by rule by the

17  commission for use in determining the minimum standard of

18  valuation for those contracts.

19         (13)  APPLICABILITY TO CREDIT LIFE AND DISABILITY

20  INSURANCE POLICIES.--

21         (a)  For policies issued prior to January 1, 2004:

22         1.  The minimum reserve for single-premium credit

23  disability insurance, monthly premium credit life insurance,

24  and monthly premium credit disability insurance shall be the

25  unearned gross premium.

26         2.  As to single-premium credit life insurance

27  policies, the insurer shall establish and maintain reserves

28  which are not less than the value, at the valuation date, of

29  the risk for the unexpired portion of the period for which the

30  premium has been paid as computed on the basis of the

31  commissioners' 1980 Standard Ordinary Mortality Table, plus

                                  16

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1  3.5 percent interest. At the discretion of the office, the

 2  insurer may make a reasonable assumption as to the ages at

 3  which net premiums are to be determined. In lieu of such

 4  basis, reserves based upon unearned gross premiums may be used

 5  at the option of the insurer.

 6         (b)  For policies issued on or after January 1, 2004:

 7         1.  The minimum reserve for single-premium credit

 8  disability insurance shall be:

 9         a.  The unearned gross premium; or

10         b.  Based upon a morbidity table that is adopted by the

11  National Association of Insurance Commissioners and is

12  specified in a rule the commission shall adopt pursuant to s.

13  625.121(14).

14         2.  The minimum reserve for monthly premium credit

15  disability insurance shall be the unearned gross premium.

16         3.  The minimum reserve for monthly premium credit life

17  insurance shall be the unearned gross premium.

18         4.  As to single-premium credit life insurance

19  policies, the insurer shall establish and maintain reserves

20  which are not less than the value, at the valuation date, of

21  the risk for the unexpired portion of the period for which the

22  premium has been paid as computed on the basis of the

23  commissioners' 1980 Standard Ordinary Mortality Table or any

24  ordinary mortality table, adopted after 1980 by the National

25  Association of Insurance Commissioners, that is approved by

26  rule adopted by the commission for use in determining the

27  minimum standard of valuation for such policies, plus an

28  interest rate determined in accordance with s. 625.121(6). At

29  the discretion of the office, the insurer may make a

30  reasonable assumption as to the ages at which net premiums are

31  to be determined. In lieu of such basis, reserves based upon

                                  17

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1  unearned gross premiums may be used at the option of the

 2  insurer. This section does not apply as to those credit life

 3  insurance policies for which reserves are computed and

 4  maintained as required under s. 625.131.

 5         Section 14.  Section 625.131, Florida Statutes, is

 6  repealed.

 7         Section 15.  Paragraph (h) of subsection (9) of section

 8  627.476, Florida Statutes, is amended to read:

 9         627.476  Standard Nonforfeiture Law for Life

10  Insurance.--

11         (9)  CALCULATION OF ADJUSTED PREMIUMS AND PRESENT

12  VALUES FOR POLICIES ISSUED AFTER OPERATIVE DATE OF THIS

13  SUBSECTION.--

14         (h)  All adjusted premiums and present values referred

15  to in this section shall for all policies of ordinary

16  insurance be calculated on the basis of the commissioners'

17  1980 Standard Ordinary Mortality Table or, at the election of

18  the insurer for any one or more specified plans of life

19  insurance, the commissioners' 1980 Standard Ordinary Mortality

20  Table with Ten-Year Select Mortality Factors; shall for all

21  policies of industrial insurance be calculated on the basis of

22  the Commissioners' 1961 Standard Industrial Mortality Table;

23  and shall for all policies issued in a particular calendar

24  year be calculated on the basis of a rate of interest not

25  exceeding the nonforfeiture interest rate as defined in this

26  subsection for policies issued in that calendar year. However:

27         1.  At the option of the insurer, calculations for all

28  policies issued in a particular calendar year may be made on

29  the basis of a rate of interest not exceeding the

30  nonforfeiture interest rate, as defined in this subsection,

31  

                                  18

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1  for policies issued in the immediately preceding calendar

 2  year.

 3         2.  Under any paid-up nonforfeiture benefit, including

 4  any paid-up dividend additions, any cash surrender value

 5  available, whether or not required by subsection (2), shall be

 6  calculated on the basis of the mortality table and rate of

 7  interest used in determining the amount of such paid-up

 8  nonforfeiture benefit and paid-up dividend additions, if any.

 9         3.  An insurer may calculate the amount of any

10  guaranteed paid-up nonforfeiture benefit, including any

11  paid-up additions under the policy, on the basis of an

12  interest rate no lower than that specified in the policy for

13  calculating cash surrender values.

14         4.  In calculating the present value of any paid-up

15  term insurance with accompanying pure endowment, if any,

16  offered as a nonforfeiture benefit, the rates of mortality

17  assumed may be not more than those shown in the Commissioners'

18  1980 Extended Term Insurance Table for policies of ordinary

19  insurance and not more than the Commissioners' 1961 Industrial

20  Extended Term Insurance Table for policies of industrial

21  insurance.

22         5.  In lieu of the mortality tables specified in this

23  section, at the option of the insurance company and subject to

24  rules adopted by the commission, the insurance company may

25  substitute:

26         a.  The 1958 CSO or CET Smoker and Nonsmoker Mortality

27  Tables, whichever is applicable, for policies issued on or

28  after the operative date of this subsection and before January

29  1, 1989;

30  

31  

                                  19

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1         b.  The 1980 CSO or CET Smoker and Nonsmoker Mortality

 2  Tables, whichever is applicable, for policies issued on or

 3  after the operative date of this subsection;

 4         c.  A mortality table that is a blend of the

 5  sex-distinct 1980 CSO or CET mortality table standard,

 6  whichever is applicable, or a mortality table that is a blend

 7  of the sex-distinct 1980 CSO or CET smoker and nonsmoker

 8  mortality table standards, whichever is applicable, for

 9  policies that are subject to the United States Supreme Court

10  decision in Arizona Governing Committee v. Norris to prevent

11  unfair discrimination in employment situations.

12         6.  Ordinary mortality tables, adopted after 1980 by

13  the National Association of Insurance Commissioners, adopted

14  by rule by the commission for use in determining the minimum

15  nonforfeiture standard may be substituted for the

16  commissioners' 1980 Standard Ordinary Mortality Table with or

17  without Ten-Year Select Mortality Factors or for the

18  commissioners' 1980 Extended Term Insurance Table.

19         7.6.  For insurance issued on a substandard basis, the

20  calculation of any such adjusted premiums and present values

21  may be based on appropriate modifications of the

22  aforementioned tables.

23         Section 16.  Subsection (9) is added to section

24  651.026, Florida Statutes, to read:

25         651.026  Annual reports.--

26         (9)  The commission may by rule require all or part of

27  the report or filings required under this section to be

28  submitted by electronic means in a computer-readable form

29  compatible with the electronic data format specified by the

30  commission.

31  

                                  20

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1         Section 17.  Section 651.0261, Florida Statutes, is

 2  amended to read:

 3         651.0261  Quarterly statements.--If the office finds,

 4  pursuant to rules of the commission, that such information is

 5  needed to properly monitor the financial condition of a

 6  provider or facility or is otherwise needed to protect the

 7  public interest, the office may require the provider to file,

 8  within 45 days after the end of each fiscal quarter, a

 9  quarterly unaudited financial statement of the provider or of

10  the facility in the form prescribed by the commission by rule.

11  The commission may by rule require all or part of the reports

12  or filings required under this section to be submitted by

13  electronic means in a computer-readable form compatible with

14  the electronic data format specified by the commission.

15         Section 18.  Paragraph (a) of subsection (1) of section

16  651.033, Florida Statutes, is amended to read:

17         651.033  Escrow accounts.--

18         (1)  When funds are required to be deposited in an

19  escrow account pursuant to s. 651.022, s. 651.023, s. 651.035,

20  or s. 651.055:

21         (a)  The escrow account shall be established in a

22  federal or state chartered Florida bank, Florida savings and

23  loan association, or Florida trust company having a physical

24  presence and doing business in this state and otherwise

25  acceptable to the office or on deposit with the department;

26  and the funds deposited therein shall be kept and maintained

27  in an account separate and apart from the provider's business

28  accounts.

29         Section 19.  Subsection (7) of section 651.118, Florida

30  Statutes, is amended to read:

31  

                                  21

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1         651.118  Agency for Health Care Administration;

 2  certificates of need; sheltered beds; community beds.--

 3         (7)  Notwithstanding the provisions of subsection (2),

 4  at the discretion of the continuing care provider, sheltered

 5  nursing home beds may be used for persons who are not

 6  residents of the continuing care facility and who are not

 7  parties to a continuing care contract for a period of up to 5

 8  years after the date of issuance of the initial nursing home

 9  license.  A provider whose 5-year period has expired or is

10  expiring may request the Agency for Health Care Administration

11  for an extension, not to exceed 30 percent of the total

12  sheltered nursing home beds, if the utilization by residents

13  of the nursing home facility in the sheltered beds will not

14  generate sufficient income to cover nursing home facility

15  expenses, as evidenced by one of the following:

16         (a)  The nursing home facility has a net loss for the

17  most recent fiscal year as determined under generally accepted

18  accounting principles, excluding the effects of extraordinary

19  or unusual items, as demonstrated in the most recently audited

20  financial statement; or

21         (b)  The nursing home facility would have had a pro

22  forma loss for the most recent fiscal year, excluding the

23  effects of extraordinary or unusual items, if revenues were

24  reduced by the amount of revenues from persons in sheltered

25  beds who were not residents, as reported on by a certified

26  public accountant.

27  

28  The agency shall be authorized to grant an extension to the

29  provider based on the evidence required in this subsection.

30  The agency may request a continuing care facility to use up to

31  25 percent of the patient days generated by new admissions of

                                  22

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1  nonresidents during the extension period to serve Medicaid

 2  recipients for those beds authorized for extended use if there

 3  is a demonstrated need in the respective service area and if

 4  funds are available. A provider who obtains an extension is

 5  prohibited from applying for additional sheltered beds under

 6  the provision of subsection (2), unless additional residential

 7  units are built or the provider can demonstrate need by

 8  continuing care facility residents to the Agency for Health

 9  Care Administration. The 5-year limit does not apply to up to

10  five sheltered beds designated for inpatient hospice care as

11  part of a contractual arrangement with a hospice licensed

12  under part VI of chapter 400. A continuing care facility that

13  uses such beds after the 5-year period shall report such use

14  to the Agency for Health Care Administration. For purposes of

15  this subsection, "resident" means a person who, upon admission

16  to the continuing care facility, initially resides in a part

17  of the continuing care facility not licensed under part II of

18  chapter 400.

19         Section 20.  This act shall take effect upon becoming a

20  law.

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  23

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






    Florida Senate - 2004                           CS for SB 3024
    311-2556-04




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 3024

 3                                 

 4  Provides that an applicant for a limited license for baggage
    and motor vehicle excess liability insurance: 1) need only
 5  submit one application; 2) must obtain a license for each
    office; and 3) is required to pay applicable license fees.
 6  Permits a business entity offering this type of insurance to
    use part time employees to sell the product.
 7  
    Excludes supervised employees of attorneys from definition of
 8  public adjuster. Requires a public adjuster to ensure licensed
    professionals used in adjusting a claim are licensed by the
 9  Florida Department of Business and Professional Regulation.

10  Permits the Financial Services Commission to require by rule
    that a continuing care provider submit electronically annual
11  or quarterly statements to the Office of Insurance Regulation.
    Allows a continuing care retirement community to deposit
12  required escrow accounts in state or federal chartered banks,
    saving and loan associations, and trust companies having a
13  physical presence and doing business in Florida. Distinguishes
    the application of the term "facility" to a continuing care
14  retirement community's entire facility and the application of
    the term to its nursing home facility with regard to standards
15  for the use of sheltered nursing home beds.

16  Exempts credit disability insurance from the requirement of
    maintaining an active reserve that is less in the aggregate
17  than the pro-rata gross unearned premiums for such policies.

18  Allows credit life and disability insurers to use newly
    adopted disability and mortality tables to set reserves, and
19  repeals the previous requirement that the minimum reserve for
    credit life and disability policies be the unearned gross
20  premium.

21  The bill allows the Financial Services Commission to adopt the
    National Association of Insurance Commissioner's (NAIC)
22  mortality and disability tables by rule for use in determining
    the minimum non-forfeiture standard for life insurance.
23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  24

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