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Amendment CaShTmL-754486.HTM
                                                  SENATE AMENDMENT
    Bill No. CS for CS for SB 2994, 1st Eng.
    Amendment No. ___   Barcode 754486
                            CHAMBER ACTION
              Senate                               House
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       04/27/2004 11:45 AM         .                    
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11  Senator Fasano moved the following amendment:
12  
13         Senate Amendment (with title amendment) 
14         On page 166, line 15, delete that line
15  
16  and insert:  
17         Section 146.  Paragraph (h) of subsection (2) of
18  section 20.121, Florida Statutes, is amended to read:
19         20.121  Department of Financial Services.--There is
20  created a Department of Financial Services.
21         (2)  DIVISIONS.--The Department of Financial Services
22  shall consist of the following divisions:
23         (h)  The Division of Consumer Services, which shall
24  include a Bureau of Funeral and Cemetery Services.
25         1.  The Division of Consumer Services shall perform the
26  following functions concerning products or services regulated
27  by the Department of Financial Services or by either office of
28  the Financial Services Commission:
29         a.  Receive inquiries and complaints from consumers.;
30         b.  Prepare and disseminate such information as the
31  department deems appropriate to inform or assist consumers.;
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    6:55 PM   04/26/04                              s2994c2c-11t1a

SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 c. Provide direct assistance and advocacy for 2 consumers who request such assistance or advocacy.; 3 d. With respect to apparent or potential violations of 4 law or applicable rules by a person or entity licensed by the 5 department or by either office of the commission, report such 6 apparent or potential violation to the appropriate division of 7 the department or office of the commission, which may take 8 such further action as it deems appropriate. 9 e. Designate an employee of the division as primary 10 contact for consumers on issues relating to sinkholes. 11 2. Any person licensed or issued a certificate of 12 authority by the department or by the Office of Insurance 13 Regulation shall respond, in writing, to the Division of 14 Consumer Services within 20 days after receipt of a written 15 request for information from the division concerning a 16 consumer complaint. The response must address the issues and 17 allegations raised in this complaint. The division may, in its 18 discretion, impose an administrative penalty for failure to 19 comply with this subparagraph in an amount up to $2,500 per 20 violation upon any entity licensed by the department or the 21 Office of Insurance Regulation and $250 for the first 22 violation, $500 for the second violation and up to $1,000 per 23 violation thereafter upon any individual licensed by the 24 department or the Office of Insurance Regulation. 25 3. The department may adopt rules to implement the 26 provisions of this paragraph. 27 4. The powers, duties, and responsibilities expressed 28 or granted in this paragraph shall not limit the powers, 29 duties, and responsibilities of the Department of Financial 30 Services, the Financial Services Commission, the Office of 31 Insurance Regulation, or the Office of Financial Regulation 2 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 set forth elsewhere in the Florida Statutes. 2 Section 147. Paragraph (a) of subsection (7) of 3 section 440.107, Florida Statutes, is amended to read: 4 440.107 Department powers to enforce employer 5 compliance with coverage requirements.-- 6 (7)(a) Whenever the department determines that an 7 employer who is required to secure the payment to his or her 8 employees of the compensation provided for by this chapter has 9 failed to secure the payment of workers' compensation required 10 by this chapter or to produce the required business records 11 under subsection (5) within 5 business days after receipt of 12 the written request of the department, such failure shall be 13 deemed an immediate serious danger to public health, safety, 14 or welfare sufficient to justify service by the department of 15 a stop-work order on the employer, requiring the cessation of 16 all business operations. If the department makes such a 17 determination, the department shall issue a stop-work order 18 within 72 hours. The order shall take effect when served upon 19 the employer or, for a particular employer work site, when 20 served at that work site. In addition to serving a stop-work 21 order at a particular work site which shall be effective 22 immediately, the department shall immediately proceed with 23 service upon the employer which shall be effective upon all 24 employer work sites in the state for which the employer is not 25 in compliance. A stop-work order may be served with regard to 26 an employer's work site by posting a copy of the stop-work 27 order in a conspicuous location at the work site. The order 28 shall remain in effect until the department issues an order 29 releasing the stop-work order upon a finding that the employer 30 has come into compliance with the coverage requirements of 31 this chapter and has paid any penalty assessed under this 3 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 section. The department may issue an order of conditional 2 release from a stop-work order to an employer upon a finding 3 that the employer has complied with coverage requirements of 4 this chapter and has agreed to remit periodic payments of the 5 penalty pursuant to a payment agreement schedule with the 6 department. If an order of conditional release is issued, 7 failure by the employer to meet any term or condition of such 8 penalty payment agreement shall result in the immediate 9 reinstatement of the stop-work order and the entire unpaid 10 balance of the penalty shall become immediately due. The 11 department may require an employer who is found to have failed 12 to comply with the coverage requirements of s. 440.38 to file 13 with the department, as a condition of release from a 14 stop-work order, periodic reports for a probationary period 15 that shall not exceed 2 years that demonstrate the employer's 16 continued compliance with this chapter. The department shall 17 by rule specify the reports required and the time for filing 18 under this subsection. 19 Section 148. Section 501.137, Florida Statutes, is 20 amended to read: 21 501.137 Mortgage lenders; tax and insurance payments 22 from escrow accounts; duties.-- 23 (1) Every lender of money, whether a natural person or 24 an artificial entity, whose loans are secured by a mortgage on 25 real estate located within the state and who receives funds 26 incidental thereto or in connection therewith for the payment 27 of property taxes or hazard insurance premiums when the such 28 funds are held in escrow by or on behalf of the lender, shall 29 promptly pay the such taxes or insurance premiums when the 30 such taxes or premiums become due and adequate escrow funds 31 are deposited, so that the maximum tax discount available may 4 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 be obtained with regard to the taxable property and so that 2 insurance coverage on the property does not lapse. 3 (2) If an escrow account for the such taxes or 4 insurance premiums is deficient, the lender shall notify the 5 property owner within 15 days after the lender receives the 6 notification of taxes due from the county tax collector or 7 receives the notification from the insurer that a premium is 8 due. 9 (3)(a) If the lender, as a result of neglect, fails to 10 pay any tax or insurance premium when the tax or premium is 11 due and there are sufficient escrow funds on deposit to pay 12 the tax or premium, and if the property owner suffers a loss 13 as a result of this such failure, then the lender is will be 14 liable for the such loss; except, however, that with respect 15 to any loss which would otherwise have been insured, the 16 extent of the such liability shall not exceed the coverage 17 limits of any insurance policy which has lapsed. 18 (b) If the lender violates paragraph (a) and the 19 premium payment is not more than 90 days overdue, the insurer 20 shall reinstate the insurance policy, retroactive to the date 21 of cancellation, and the lender shall reimburse the property 22 owner for any penalty or fees imposed by the insurer and paid 23 by the property owner for purposes of reinstating the policy. 24 (c) If the lender violates paragraph (a) and the 25 premium payment is more than 90 days overdue or if the insurer 26 refuses to reinstate the insurance policy, the lender shall 27 pay the difference between the cost of the previous insurance 28 policy and a new, comparable insurance policy for a period of 29 2 years. 30 (4) At the expiration of the annual accounting period, 31 the lender shall issue to the property owner an annual 5 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 statement of the escrow account. 2 Section 149. Paragraph (c) of subsection (3) of 3 section 624.610, Florida Statutes, is amended to read: 4 624.610 Reinsurance.-- 5 (3) 6 (c)1. Credit must be allowed when the reinsurance is 7 ceded to an assuming insurer that maintains a trust fund in a 8 qualified United States financial institution, as defined in 9 paragraph (5)(b), for the payment of the valid claims of its 10 United States ceding insurers and their assigns and successors 11 in interest. To enable the office to determine the sufficiency 12 of the trust fund, the assuming insurer shall report annually 13 to the office information substantially the same as that 14 required to be reported on the NAIC Annual Statement form by 15 authorized insurers. The assuming insurer shall submit to 16 examination of its books and records by the office and bear 17 the expense of examination. 18 2.a. Credit for reinsurance must not be granted under 19 this subsection unless the form of the trust and any 20 amendments to the trust have been approved by: 21 (I) The insurance regulator of the state in which the 22 trust is domiciled; or 23 (II) The insurance regulator of another state who, 24 pursuant to the terms of the trust instrument, has accepted 25 principal regulatory oversight of the trust. 26 b. The form of the trust and any trust amendments must 27 be filed with the insurance regulator of every state in which 28 the ceding insurer beneficiaries of the trust are domiciled. 29 The trust instrument must provide that contested claims are 30 valid and enforceable upon the final order of any court of 31 competent jurisdiction in the United States. The trust must 6 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 vest legal title to its assets in its trustees for the benefit 2 of the assuming insurer's United States ceding insurers and 3 their assigns and successors in interest. The trust and the 4 assuming insurer are subject to examination as determined by 5 the insurance regulator. 6 c. The trust remains in effect for as long as the 7 assuming insurer has outstanding obligations due under the 8 reinsurance agreements subject to the trust. No later than 9 February 28 of each year, the trustee of the trust shall 10 report to the insurance regulator in writing the balance of 11 the trust and list the trust's investments at the preceding 12 year end, and shall certify that the trust will not expire 13 prior to the following December 31. 14 3. The following requirements apply to the following 15 categories of assuming insurer: 16 a. The trust fund for a single assuming insurer 17 consists of funds in trust in an amount not less than the 18 assuming insurer's liabilities attributable to reinsurance 19 ceded by United States ceding insurers, and, in addition, the 20 assuming insurer shall maintain a trusteed surplus of not less 21 than $20 million. Not less than 50 percent of the funds in the 22 trust covering the assuming insurer's liabilities attributable 23 to reinsurance ceded by United States ceding insurers and 24 trusteed surplus shall consist of assets of a quality 25 substantially similar to that required in part II of chapter 26 625. Clean, irrevocable, unconditional, and evergreen letters 27 of credit, issued or confirmed by a qualified United States 28 financial institution, as defined in paragraph (5)(a), 29 effective no later than December 31 of the year for which the 30 filing is made and in the possession of the trust on or before 31 the filing date of its annual statement, may be used to fund 7 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 the remainder of the trust and trusted surplus. 2 b.(I) In the case of a group including incorporated 3 and individual unincorporated underwriters: 4 (A) For reinsurance ceded under reinsurance agreements 5 with an inception, amendment, or renewal date on or after 6 August 1, 1995, the trust consists of a trusteed account in an 7 amount not less than the group's several liabilities 8 attributable to business ceded by United States domiciled 9 ceding insurers to any member of the group; 10 (B) For reinsurance ceded under reinsurance agreements 11 with an inception date on or before July 31, 1995, and not 12 amended or renewed after that date, notwithstanding the other 13 provisions of this section, the trust consists of a trusteed 14 account in an amount not less than the group's several 15 insurance and reinsurance liabilities attributable to business 16 written in the United States; and 17 (C) In addition to these trusts, the group shall 18 maintain in trust a trusteed surplus of which $100 million 19 must be held jointly for the benefit of the United States 20 domiciled ceding insurers of any member of the group for all 21 years of account. 22 (II) The incorporated members of the group must not be 23 engaged in any business other than underwriting of a member of 24 the group, and are subject to the same level of regulation and 25 solvency control by the group's domiciliary regulator as the 26 unincorporated members. 27 (III) Within 90 days after its financial statements 28 are due to be filed with the group's domiciliary regulator, 29 the group shall provide to the insurance regulator an annual 30 certification by the group's domiciliary regulator of the 31 solvency of each underwriter member or, if a certification is 8 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 unavailable, financial statements, prepared by independent 2 public accountants, of each underwriter member of the group. 3 Section 150. Section 625.081, Florida Statutes, is 4 amended to read: 5 625.081 Reserve for health insurance.--For all health 6 insurance policies, the insurer shall maintain an active life 7 reserve which places a sound value on the insurer's 8 liabilities under such policies; is not less than the reserve 9 according to appropriate standards set forth in rules issued 10 by the commission; and, with the exception of credit 11 disability insurance, in no event, is less in the aggregate 12 than the pro rata gross unearned premiums for such policies. 13 Section 151. Paragraphs (a), (e), and (f) of 14 subsection (5) and subsection (13) of section 625.121, Florida 15 Statutes, are amended, and paragraphs (k) and (l) are added to 16 subsection (5) of that section, to read: 17 625.121 Standard Valuation Law; life insurance.-- 18 (5) MINIMUM STANDARD FOR VALUATION OF POLICIES AND 19 CONTRACTS ISSUED ON OR AFTER OPERATIVE DATE OF STANDARD 20 NONFORFEITURE LAW.--Except as otherwise provided in paragraph 21 (h) and subsections (6), (11), and (14), the minimum standard 22 for the valuation of all such policies and contracts issued on 23 or after the operative date of s. 627.476 (Standard 24 Nonforfeiture Law for Life Insurance) shall be the 25 commissioners' reserve valuation method defined in subsections 26 (7), (11), and (14); 5 percent interest for group annuity and 27 pure endowment contracts and 3.5 percent interest for all 28 other such policies and contracts, or in the case of life 29 insurance policies and contracts, other than annuity and pure 30 endowment contracts, issued on or after July 1, 1973, 4 31 percent interest for such policies issued prior to October 1, 9 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 1979, and 4.5 percent interest for such policies issued on or 2 after October 1, 1979; and the following tables: 3 (a) For all ordinary policies of life insurance issued 4 on the standard basis, excluding any disability and accidental 5 death benefits in such policies: 6 1. For policies issued prior to the operative date of 7 s. 627.476(9), the commissioners' 1958 Standard Ordinary 8 Mortality Table; except that, for any category of such 9 policies issued on female risks, modified net premiums and 10 present values, referred to in subsection (7), may be 11 calculated according to an age not more than 6 years younger 12 than the actual age of the insured.; and 13 2. For policies issued on or after the operative date 14 of s. 627.476(9), the commissioners' 1980 Standard Ordinary 15 Mortality Table or, at the election of the insurer for any one 16 or more specified plans of life insurance, the commissioners' 17 1980 Standard Ordinary Mortality Table with Ten-Year Select 18 Mortality Factors. 19 3. For policies issued on or after July 1, 2004, 20 ordinary mortality tables, adopted after 1980 by the National 21 Association of Insurance Commissioners, adopted by rule by the 22 commission for use in determining the minimum standard of 23 valuation for such policies. 24 (e) For total and permanent disability benefits in or 25 supplementary to ordinary policies or contracts: 26 1. For policies or contracts issued on or after 27 January 1, 1966, the tables of period 2 disablement rates and 28 the 1930 to 1950 termination rates of the 1952 disability 29 study of the Society of Actuaries, with due regard to the type 30 of benefit; 31 2. For policies or contracts issued on or after 10 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 January 1, 1961, and prior to January 1, 1966, either those 2 tables or, at the option of the insurer, the class three 3 disability table (1926); and 4 3. For policies issued prior to January 1, 1961, the 5 class three disability table (1926); and. 6 4. For policies or contracts issued on or after July 7 1, 2004, tables of disablement rates and termination rates 8 adopted after 1980 by the National Association of Insurance 9 Commissioners, adopted by rule by the commission for use in 10 determining the minimum standard of valuation for those 11 policies or contracts. 12 13 Any such table for active lives shall be combined with a 14 mortality table permitted for calculating the reserves for 15 life insurance policies. 16 (f) For accidental death benefits in or supplementary 17 to policies: 18 1. For policies issued on or after January 1, 1966, 19 the 1959 Accidental Death Benefits Table; 20 2. For policies issued on or after January 1, 1961, 21 and prior to January 1, 1966, either that table or, at the 22 option of the insurer, the Intercompany Double Indemnity 23 Mortality Table; and 24 3. For policies issued prior to January 1, 1961, the 25 Intercompany Double Indemnity Mortality Table; and. 26 4. For policies issued on or after July 1, 2004, 27 tables of accidental death benefits adopted after 1980 by the 28 National Association of Insurance Commissioners, adopted by 29 rule by the commission for use in determining the minimum 30 standard of valuation for those policies. 31 11 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 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 that 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 and 3.5 12 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 percent interest. At the discretion of the office, the insurer 2 may make a reasonable assumption as to the ages at which net 3 premiums are to be determined. In lieu of the foregoing basis, 4 reserves based upon unearned gross premiums may be used at the 5 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 either: 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 adopts pursuant to 13 subsection (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 that 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; and an 28 interest rate determined in accordance with subsection (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 the foregoing basis, reserves 13 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 based upon unearned gross premiums may be used at the option 2 of the insurer. This section does not apply as to those credit 3 life insurance policies for which reserves are computed and 4 maintained as required under s. 625.131. 5 Section 152. Paragraphs (c) and (d) of subsection (1) 6 of section 626.321, Florida Statutes, are amended to read: 7 626.321 Limited licenses.-- 8 (1) The department shall issue to a qualified 9 individual, or a qualified individual or entity under 10 paragraphs (c), (d), (e), and (i), a license as agent 11 authorized to transact a limited class of business in any of 12 the following categories: 13 (c) Personal accident insurance.--License covering 14 only policies of personal accident insurance covering the 15 risks of travel, except as provided in subparagraph 2. The 16 license may be issued only: 17 1. To a full-time salaried employee of a common 18 carrier or a full-time salaried employee or owner of a 19 transportation ticket agency and may authorize the sale of 20 such ticket policies only in connection with the sale of 21 transportation tickets, or to the full-time salaried employee 22 of such an agent. No such policy shall be for a duration of 23 more than 48 hours or for the duration of a specified one-way 24 trip or round trip. 25 2. To a full-time salaried employee of a business 26 which offers motor vehicles for rent or lease, or to a 27 business entity office of a business which offers motor 28 vehicles for rent or lease if insurance sales activities 29 authorized by the license are limited to full-time salaried 30 employees. A business office licensed or a person licensed 31 pursuant to this subparagraph may, as an agent of an insurer, 14 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 transact insurance that provides coverage for accidental 2 personal injury or death of the lessee and any passenger who 3 is riding or driving with the covered lessee in the rental 4 motor vehicle if the lease or rental agreement is for not more 5 than 30 days, or if the lessee is not provided coverage for 6 more than 30 consecutive days per lease period; however, if 7 the lease is extended beyond 30 days, the coverage may be 8 extended one time only for a period not to exceed an 9 additional 30 days. 10 (d) Baggage and motor vehicle excess liability 11 insurance.-- 12 1. License covering only insurance of personal effects 13 except as provided in subparagraph 2. The license may be 14 issued only: 15 a. To a full-time salaried employee of a common 16 carrier or a full-time salaried employee or owner of a 17 transportation ticket agency, which person is engaged in the 18 sale or handling of transportation of baggage and personal 19 effects of travelers, and may authorize the sale of such 20 insurance only in connection with such transportation; or 21 b. To the full-time salaried employee of a licensed 22 general lines agent, a full-time salaried employee of a 23 business which offers motor vehicles for rent or lease, or to 24 a business office of a business entity that which offers motor 25 vehicles for rent or lease if insurance sales activities 26 authorized by the license are in connection with and 27 incidental to the rental of a motor vehicle limited to 28 full-time salaried employees. An entity applying for a license 29 under this sub-subparagraph: 30 (I) Is required to submit only one application for a 31 license under s. 626.171. The requirements of s. 626.171(5) 15 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 shall apply only to the officers and directors of the entity 2 submitting the application. 3 (II) Is required to obtain a license for each office, 4 branch office, or place of business making use of the entity's 5 business name by applying to the department for the license on 6 a simplified application form developed by rule of the 7 department for this purpose. 8 (III) Is required to pay the applicable fees for a 9 license as prescribed in s. 624.501, be appointed under s. 10 626.112, and pay the prescribed appointment fee under s. 11 624.501. A licensed and appointed entity shall be directly 12 responsible and accountable for all acts of the licensee's 13 employees. 14 15 The purchaser of baggage insurance shall be provided written 16 information disclosing that the insured's homeowner's policy 17 may provide coverage for loss of personal effects and that the 18 purchase of such insurance is not required in connection with 19 the purchase of tickets or in connection with the lease or 20 rental of a motor vehicle. 21 2. A business entity that office licensed pursuant to 22 subparagraph 1., or a person licensed pursuant to subparagraph 23 1. who is a full-time salaried employee of a business which 24 offers motor vehicles for rent or lease, may include lessees 25 under a master contract providing coverage to the lessor or 26 may transact excess motor vehicle liability insurance 27 providing coverage in excess of the standard liability limits 28 provided by the lessor in its lease to a person renting or 29 leasing a motor vehicle from the licensee's employer for 30 liability arising in connection with the negligent operation 31 of the leased or rented motor vehicle, provided that the lease 16 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 or rental agreement is for not more than 30 days; that the 2 lessee is not provided coverage for more than 30 consecutive 3 days per lease period, and, if the lease is extended beyond 30 4 days, the coverage may be extended one time only for a period 5 not to exceed an additional 30 days; that the lessee is given 6 written notice that his or her personal insurance policy 7 providing coverage on an owned motor vehicle may provide 8 additional excess coverage; and that the purchase of the 9 insurance is not required in connection with the lease or 10 rental of a motor vehicle. The excess liability insurance may 11 be provided to the lessee as an additional insured on a policy 12 issued to the licensee's employer. 13 3. A business entity that office licensed pursuant to 14 subparagraph 1., or a person licensed pursuant to subparagraph 15 1. who is a full-time salaried employee of a business which 16 offers motor vehicles for rent or lease, may, as an agent of 17 an insurer, transact insurance that provides coverage for the 18 liability of the lessee to the lessor for damage to the leased 19 or rented motor vehicle if: 20 a. The lease or rental agreement is for not more than 21 30 days; or the lessee is not provided coverage for more than 22 30 consecutive days per lease period, but, if the lease is 23 extended beyond 30 days, the coverage may be extended one time 24 only for a period not to exceed an additional 30 days; 25 b. The lessee is given written notice that his or her 26 personal insurance policy that provides coverage on an owned 27 motor vehicle may provide such coverage with or without a 28 deductible; and 29 c. The purchase of the insurance is not required in 30 connection with the lease or rental of a motor vehicle. 31 Section 153. Section 626.9743, Florida Statutes, is 17 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 created to read: 2 626.9743 Claim settlement practices relating to motor 3 vehicle insurance.-- 4 (1) This section shall apply to the adjustment and 5 settlement of personal and commercial motor vehicle insurance 6 claims. 7 (2) An insurer may not, when liability and damages 8 owed under the policy are reasonably clear, recommend that a 9 third-party claimant make a claim under his or her own policy 10 solely to avoid paying the claim under the policy issued by 11 that insurer. However, the insurer may identify options to a 12 third-party claimant relative to the repair of his or her 13 vehicle. 14 (3) An insurer that elects to repair a motor vehicle 15 and specifically requires a particular repair shop for vehicle 16 repairs shall cause the damaged vehicle to be restored to its 17 physical condition as to performance and appearance 18 immediately prior to the loss at no additional cost to the 19 insured or third-party claimant other than as stated in the 20 policy. 21 (4) An insurer may not require the use of replacement 22 parts in the repair of a motor vehicle which are not at least 23 equivalent in kind and quality to the damaged parts prior to 24 the loss in terms of fit, appearance, and performance. 25 (5) When the insurance policy provides for the 26 adjustment and settlement of first-party motor vehicle total 27 losses on the basis of actual cash value or replacement with 28 another of like kind and quality, the insurer shall use one of 29 the following methods: 30 (a) The insurer may elect a cash settlement based upon 31 the actual cost to purchase a comparable motor vehicle, 18 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 including sales tax, if applicable pursuant to subsection (9). 2 Such cost may be derived from: 3 1. When comparable motor vehicles are available in the 4 local market area, the cost of two or more such comparable 5 motor vehicles available within the preceding 90 days; 6 2. The retail cost as determined from a generally 7 recognized used motor vehicle industry source such as: 8 a. An electronic database if the pertinent portions of 9 the valuation documents generated by the database are provided 10 by the insurer to the first-party insured upon request; or 11 b. A guidebook that is generally available to the 12 general public if the insurer identifies the guidebook used as 13 the basis for the retail cost to the first-party insured upon 14 request; or 15 3. The retail cost using two or more quotations 16 obtained by the insurer from two or more licensed dealers in 17 the local market area. 18 (b) The insurer may elect to offer a replacement motor 19 vehicle that is a specified comparable motor vehicle available 20 to the insured, including sales tax if applicable pursuant to 21 subsection (9), paid for by the insurer at no cost other than 22 any deductible provided in the policy and betterment as 23 provided in subsection (6). The offer must be documented in 24 the insurer's claim file. For purposes of this subsection, a 25 comparable motor vehicle is one that is made by the same 26 manufacturer, of the same or newer model year, and of similar 27 body type and that has similar options and mileage as the 28 insured vehicle. Additionally, a comparable motor vehicle must 29 be in as good or better overall condition than the insured 30 vehicle and available for inspection within a reasonable 31 distance of the insured's residence. 19 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 (c) When a motor vehicle total loss is adjusted or 2 settled on a basis that varies from the methods described in 3 paragraph (a) or paragraph (b), the determination of value 4 must be supported by documentation, and any deductions from 5 value must be itemized and specified in appropriate dollar 6 amounts. The basis for such settlement shall be explained to 7 the claimant in writing, if requested, and a copy of the 8 explanation shall be retained in the insurer's claim file. 9 (d) Any other method agreed to by the claimant. 10 (6) When the amount offered in settlement reflects a 11 reduction by the insurer because of betterment or 12 depreciation, information pertaining to the reduction shall be 13 maintained with the insurer's claim file. Deductions shall be 14 itemized and specific as to dollar amount and shall accurately 15 reflect the value assigned to the betterment or depreciation. 16 The basis for any deduction shall be explained to the claimant 17 in writing, if requested, and a copy of the explanation shall 18 be maintained with the insurer's claim file. 19 (7) Every insurer shall, if partial losses are settled 20 on the basis of a written estimate prepared by or for the 21 insurer, supply the insured a copy of the estimate upon which 22 the settlement is based. 23 (8) Every insurer shall provide notice to an insured 24 before termination of payment for previously authorized 25 storage charges, and the notice shall provide 72 hours for the 26 insured to remove the vehicle from storage before terminating 27 payment of the storage charges. 28 (9) If sales tax will necessarily be incurred by a 29 claimant upon replacement of a total loss or upon repair of a 30 partial loss, the insurer may defer payment of the sales tax 31 unless and until the obligation has actually been incurred. 20 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 (10) Nothing in this section shall be construed to 2 authorize or preclude enforcement of policy provisions 3 relating to settlement disputes. 4 Section 154. Section 626.9744, Florida Statutes, is 5 created to read: 6 626.9744 Claim settlement practices relating to 7 property insurance.--Unless otherwise provided by the policy, 8 when a homeowner's insurance policy provides for the 9 adjustment and settlement of first-party losses based on 10 repair or replacement cost, the following requirements apply: 11 (1) When a loss requires repair or replacement of an 12 item or part, any physical damage incurred in making such 13 repair or replacement which is covered and not otherwise 14 excluded by the policy shall be included in the loss to the 15 extent of any applicable limits. The insured may not be 16 required to pay for betterment required by ordinance or code 17 except for the applicable deductible, unless specifically 18 excluded or limited by the policy. 19 (2) When a loss requires replacement of items and the 20 replaced items do not match in quality, color, or size, the 21 insurer shall make reasonable repairs or replacement of items 22 in adjoining areas. In determining the extent of the repairs 23 or replacement of items in adjoining areas, the insurer may 24 consider the cost of repairing or replacing the undamaged 25 portions of the property, the degree of uniformity that can be 26 achieved without such cost, the remaining useful life of the 27 undamaged portion, and other relevant factors. 28 (3) This section shall not be construed to make the 29 insurer a warrantor of the repairs made pursuant to this 30 section. 31 (4) Nothing in this section shall be construed to 21 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 authorize or preclude enforcement of policy provisions 2 relating to settlement disputes. 3 Section 155. Effective July 1, 2004, and applicable to 4 cancellation requests and notices received on or after that 5 date, subsection (3) of section 627.311, Florida Statutes, is 6 amended to read: 7 627.311 Joint underwriters and joint reinsurers; 8 public records and public meetings exemptions.-- 9 (3) The office may, after consultation with insurers 10 licensed to write automobile insurance in this state, approve 11 a joint underwriting plan for purposes of equitable 12 apportionment or sharing among insurers of automobile 13 liability insurance and other motor vehicle insurance, as an 14 alternate to the plan required in s. 627.351(1). All insurers 15 authorized to write automobile insurance in this state shall 16 subscribe to the plan and participate therein. The plan shall 17 be subject to continuous review by the office which may at any 18 time disapprove the entire plan or any part thereof if it 19 determines that conditions have changed since prior approval 20 and that in view of the purposes of the plan changes are 21 warranted. Any disapproval by the office shall be subject to 22 the provisions of chapter 120. The Florida Automobile Joint 23 Underwriting Association is created under the plan. The plan 24 and the association: 25 (a) Must be subject to all provisions of s. 26 627.351(1), except apportionment of applicants. 27 (b) May provide for one or more designated insurers, 28 able and willing to provide policy and claims service, to act 29 on behalf of all other insurers to provide insurance for 30 applicants who are in good faith entitled to, but unable to, 31 procure insurance through the voluntary insurance market at 22 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 standard rates. 2 (c) Must provide that designated insurers will issue 3 policies of insurance and provide policyholder and claims 4 service on behalf of all insurers for the joint underwriting 5 association. 6 (d) Must provide for the equitable apportionment among 7 insurers of losses and expenses incurred. 8 (e) Must provide that the joint underwriting 9 association will operate subject to the supervision and 10 approval of a board of governors consisting of 11 individuals, 11 including 1 who will be elected as chair. Five members of the 12 board must be appointed by the Chief Financial Officer. Two of 13 the Chief Financial Officer's appointees must be chosen from 14 the insurance industry. Any board member appointed by the 15 Chief Financial Officer may be removed and replaced by her or 16 him at any time without cause. Six members of the board must 17 be appointed by the participating insurers, two of whom must 18 be from the insurance agents' associations. All board members, 19 including the chair, must be appointed to serve for 2-year 20 terms beginning annually on a date designated by the plan. 21 (f) Must provide that an agent appointed to a 22 servicing carrier must be a licensed general lines agent of an 23 insurer which is authorized to write automobile liability and 24 physical damage insurance in the state and which is actively 25 writing such coverage in the county in which the agent is 26 located, or the immediately adjoining counties, or an agent 27 who places a volume of other property and casualty insurance 28 in an amount equal to the premium volume placed with the 29 Florida Joint Underwriting Association. The office may, 30 however, determine that an agent may be appointed to a 31 servicing carrier if, after public hearing, the office finds 23 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 that consumers in the agent's operating area would not have 2 adequate and reasonable access to the purchase of automobile 3 insurance if the agent were not appointed to a servicing 4 carrier. 5 (g) Must make available noncancelable coverage as 6 provided in s. 627.7275(2). 7 (h) Must provide for the furnishing of a list of 8 insureds and their mailing addresses upon the request of a 9 member of the association or an insurance agent licensed to 10 place business with an association member. The list must 11 indicate whether the insured is currently receiving a good 12 driver discount from the association. The plan may charge a 13 reasonable fee to cover the cost incurred in providing the 14 list. 15 (i) Must not provide a renewal credit or discount or 16 any other inducement designed to retain a risk. 17 (j) Must not provide any other good driver credit or 18 discount that is not actuarially sound. In addition to other 19 criteria that the plan may specify, to be eligible for a good 20 driver credit, an insured must not have any criminal traffic 21 violations within the most recent 36-month period preceding 22 the date the discount is received. 23 (k)1. Shall have no liability, and no cause of action 24 of any nature shall arise against any member insurer or its 25 agents or employees, agents or employees of the association, 26 members of the board of governors of the association, the 27 Chief Financial Officer, or the office or its representatives 28 for any action taken by them in the performance of their 29 duties or responsibilities under this subsection. Such 30 immunity does not apply to actions for or arising out of 31 breach of any contract or agreement pertaining to insurance, 24 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 or any willful tort. 2 2. Notwithstanding the requirements of s. 3 624.155(3)(a), as a condition precedent to bringing an action 4 against the plan under s. 624.155, the department and the plan 5 must have been given 90 days' written notice of the violation. 6 If the department returns a notice for lack of specificity, 7 the 90-day time period shall not begin until a proper notice 8 is filed. This notice must comply with the information 9 requirements of s. 624.155(3)(b). Effective October 1, 2007, 10 this subparagraph shall expire unless reenacted by the 11 Legislature prior to that date. 12 (l) May require from the insured proof that he or she 13 has obtained the mandatory types and amounts of insurance from 14 another admitted carrier prior to the cancellation of a policy 15 the insured obtained from the plan and prior to the return of 16 any unearned premium the insured paid for such coverage from 17 the plan. This paragraph does not apply to any person who 18 provides proof of sale or inoperability of the vehicle covered 19 under the policy purchased from the plan or relocation outside 20 the state. 21 Section 156. Subsection (5) is added to section 22 627.4091, Florida Statutes, to read: 23 627.4091 Specific reasons for denial, cancellation, or 24 nonrenewal.-- 25 (5) When an insurer refuses to provide private 26 passenger automobile insurance or personal lines residential 27 property insurance, including, but not limited to, 28 homeowner's, mobile home owner's, condominium unit owner's, or 29 other insurance covering a personal residential structure, to 30 an applicant due to adverse underwriting information, the 31 insurer shall: 25 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 (a) Provide to the applicant specific information 2 regarding the reasons for the refusal to insure. 3 (b) If the reason for the refusal to insure is based 4 on a loss underwriting history or report from a consumer 5 reporting agency, to the extent applicable identify the loss 6 underwriting history and notify the applicant of his or her 7 right under the federal Fair and Accurate Credit Transactions 8 Act to obtain a copy of the report from the consumer reporting 9 agency. 10 Section 157. Effective upon this act becoming a law, 11 subsections (5) and (6) are added to section 627.4133, Florida 12 Statutes, to read: 13 627.4133 Notice of cancellation, nonrenewal, or 14 renewal premium.-- 15 (5) An insurer that cancels a property insurance 16 policy on property secured by a mortgage due to the failure of 17 the lender to timely pay the premium when due shall reinstate 18 the policy as required by s. 501.137. 19 (6) A single claim on a property insurance policy 20 which is the result of water damage may not be used as the 21 sole cause for cancellation or nonrenewal unless the insurer 22 can demonstrate that the insured has failed to take action 23 reasonably requested by the insurer to prevent a future 24 similar occurrence of damage to the insured property. 25 Section 158. Paragraph (h) of subsection (9) of 26 section 627.476, Florida Statutes, is amended to read: 27 627.476 Standard Nonforfeiture Law for Life 28 Insurance.-- 29 (9) CALCULATION OF ADJUSTED PREMIUMS AND PRESENT 30 VALUES FOR POLICIES ISSUED AFTER OPERATIVE DATE OF THIS 31 SUBSECTION.-- 26 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 (h) All adjusted premiums and present values referred 2 to in this section shall for all policies of ordinary 3 insurance be calculated on the basis of the Commissioners' 4 1980 Standard Ordinary Mortality Table or, at the election of 5 the insurer for any one or more specified plans of life 6 insurance, the Commissioners' 1980 Standard Ordinary Mortality 7 Table with Ten-Year Select Mortality Factors; shall for all 8 policies of industrial insurance be calculated on the basis of 9 the Commissioners' 1961 Standard Industrial Mortality Table; 10 and shall for all policies issued in a particular calendar 11 year be calculated on the basis of a rate of interest not 12 exceeding the nonforfeiture interest rate as defined in this 13 subsection for policies issued in that calendar year. However: 14 1. At the option of the insurer, calculations for all 15 policies issued in a particular calendar year may be made on 16 the basis of a rate of interest not exceeding the 17 nonforfeiture interest rate, as defined in this subsection, 18 for policies issued in the immediately preceding calendar 19 year. 20 2. Under any paid-up nonforfeiture benefit, including 21 any paid-up dividend additions, any cash surrender value 22 available, whether or not required by subsection (2), shall be 23 calculated on the basis of the mortality table and rate of 24 interest used in determining the amount of such paid-up 25 nonforfeiture benefit and paid-up dividend additions, if any. 26 3. An insurer may calculate the amount of any 27 guaranteed paid-up nonforfeiture benefit, including any 28 paid-up additions under the policy, on the basis of an 29 interest rate no lower than that specified in the policy for 30 calculating cash surrender values. 31 4. In calculating the present value of any paid-up 27 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 term insurance with accompanying pure endowment, if any, 2 offered as a nonforfeiture benefit, the rates of mortality 3 assumed may be not more than those shown in the Commissioners' 4 1980 Extended Term Insurance Table for policies of ordinary 5 insurance and not more than the Commissioners' 1961 Industrial 6 Extended Term Insurance Table for policies of industrial 7 insurance. 8 5. In lieu of the mortality tables specified in this 9 section, at the option of the insurance company and subject to 10 rules adopted by the commission, the insurance company may 11 substitute: 12 a. The 1958 CSO or CET Smoker and Nonsmoker Mortality 13 Tables, whichever is applicable, for policies issued on or 14 after the operative date of this subsection and before January 15 1, 1989; 16 b. The 1980 CSO or CET Smoker and Nonsmoker Mortality 17 Tables, whichever is applicable, for policies issued on or 18 after the operative date of this subsection; 19 c. A mortality table that is a blend of the 20 sex-distinct 1980 CSO or CET mortality table standard, 21 whichever is applicable, or a mortality table that is a blend 22 of the sex-distinct 1980 CSO or CET smoker and nonsmoker 23 mortality table standards, whichever is applicable, for 24 policies that are subject to the United States Supreme Court 25 decision in Arizona Governing Committee v. Norris to prevent 26 unfair discrimination in employment situations. 27 6. Ordinary mortality tables, adopted after 1980 by 28 the National Association of Insurance Commissioners, adopted 29 by rule by the commission for use in determining the minimum 30 nonforfeiture standard may be substituted for the 31 Commissioners' 1980 Standard Ordinary Mortality Table with or 28 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 without Ten-Year Select Mortality Factors or for the 2 Commissioners' 1980 Extended Term Insurance Table. 3 7.6. For insurance issued on a substandard basis, the 4 calculation of any such adjusted premiums and present values 5 may be based on appropriate modifications of the 6 aforementioned tables. 7 Section 159. Section 627.7077, Florida Statutes, is 8 created to read: 9 627.7077 Florida Sinkhole Insurance Facility and other 10 matters related to affordability and availability of sinkhole 11 insurance; feasibility study.-- 12 (1) The Florida State University College of Business 13 Department of Risk Management and Insurance shall, under the 14 direction of the office, conduct a feasibility and 15 cost-benefit study of a potential Florida Sinkhole Insurance 16 Facility and of other matters related to affordability and 17 availability of sinkhole insurance. The study shall be 18 conducted in consultation with the State Board of 19 Administration and the Florida Geological Survey. The 20 university shall provide a preliminary report of its analysis, 21 findings, and recommendations to the Financial Services 22 Commission and the presiding officers of the Legislature no 23 later than February 1, 2005, and shall provide a final report 24 no later than April 1, 2005. 25 (2) The potential functions of the facility to be 26 analyzed include: 27 (a) Serving as the direct insurer or the reinsurer for 28 all or some sinkhole losses. 29 (b) Providing training, communication, and other 30 educational services to the public, engineers, the 31 construction industry, insurance professionals, or others. 29 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 (c) Providing uniform standards for use by insurers in 2 evaluating sinkhole loss claims. 3 (d) Providing consulting services for insurers. 4 (e) Maintaining a public database of all confirmed 5 sinkholes and paid sinkhole loss claims, for use by consumers 6 and by the insurance, building construction, banking, and real 7 estate industries. 8 (3) The feasibility study shall, at a minimum, address 9 the following issues: 10 (a) Where the facility should be housed, including, 11 but not limited to, the options of creating a separate 12 facility or using the Citizens Property Insurance Corporation 13 or the Florida Hurricane Catastrophe Fund. 14 (b) Federal income taxation implications. 15 (c) Funding options and costs associated with 16 operating the facility, including means of funding sinkhole 17 insurance through premiums that are adequate to fund covered 18 losses. 19 (d) Applicability of the experience of similar 20 facilities of other states. 21 (e) Other economic impact considerations pertinent to 22 a facility. 23 (f) Alternative dispute resolution mechanisms. 24 (g) The impact of all present requirements in the 25 Florida Insurance Code on affordability and availability of 26 sinkhole insurance and recommendations to address such 27 impacts. 28 (4) The study shall be funded from a budget of no more 29 than $300,000, which will be funded by assessments on insurers 30 issuing property insurance in this state. Such assessments 31 shall be collected by the office and shall be prorated among 30 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 such insurers according to a formula whereby each insurer 2 shall pay a fraction of such budget, the numerator of which 3 shall be such insurer's direct earned premiums for property 4 insurance in this state and the denominator of which shall be 5 the total direct earned premiums for property insurance in 6 this state for calendar year 2003. 7 Section 160. Section 627.838, Florida Statutes, is 8 amended to read: 9 627.838 Filing and approval of forms; service 10 charges.-- 11 (1) No premium finance agreement form or related form 12 shall be used in this state by a premium finance company 13 unless it has been filed with and approved by the office. 14 Every filing shall be made within 30 days of issuance or use. 15 (2) Each premium finance company shall file with the 16 office the service charge and interest rate plan, including 17 all modifications thereto, for informational purposes only. 18 Every filing shall be made within 30 days of its effective 19 date. 20 (3) Each filing shall be accompanied by the filing fee 21 specified in s. 627.849. 22 Section 161. Paragraph (e) of subsection (1) of 23 section 627.848, Florida Statutes, is amended to read: 24 627.848 Cancellation of insurance contract upon 25 default.-- 26 (1) When a premium finance agreement contains a power 27 of attorney or other authority enabling the premium finance 28 company to cancel any insurance contract listed in the 29 agreement, the insurance contract shall not be canceled unless 30 cancellation is in accordance with the following provisions: 31 (e) Whenever a financed an insurance contract is 31 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 canceled in accordance with this section, the insurer shall, 2 within 30 days of the cancellation date, promptly return the 3 unpaid balance due under the finance contract, up to the gross 4 amount available upon the cancellation of the policy, to the 5 premium finance company and any remaining unearned premium to 6 the agent or the insured, or both, for the benefit of the 7 insured or insureds. The insurer shall, within 30 days of the 8 cancellation date, notify the insured and the agent of the 9 amount of unearned premium returned to the premium finance 10 company and the amount of unearned commission held by the 11 agent. The premium finance company shall, within 15 days after 12 the account has been overpaid, either refund to the insured 13 for the insured's benefit any refund due on his or her account 14 or, if the refund is sent or credited to the agent, return or 15 credit to the agent the amount of the overpayment and notify 16 the insured of the refunded amount. The premium finance 17 company within 15 days shall notify the insured and the agent 18 of the amount of unearned premium. Within 15 days of receipt 19 of notification from the premium finance company, the agent 20 shall return such amount including any unearned commission to 21 the insured or with the written approval of the insured apply 22 such amount to the purchase of other insurance products 23 regulated by the office. The commission may adopt rules 24 necessary to implement the provisions of this subsection. 25 Section 162. Subsection (1) of section 627.849, 26 Florida Statutes, is amended to read: 27 627.849 Fees.-- 28 (1) The office shall collect in advance, and the 29 persons so served shall pay to it in advance, the following 30 fees: 31 (a) Annual license fee............................$250 32 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 (b) Investigation fee..............................100 2 (c) Annual report filing fee........................25 3 (d) Form filing fee.................................10 4 Section 163. Analysis of factors affecting premium 5 levels and availability of personal lines property and 6 casualty insurance to consumers in Florida.-- 7 (1) The Legislative Auditing Committee shall enter 8 into a contract with the Florida State University College of 9 Business Department of Risk Management and Insurance to 10 provide, no later than February 1, 2005, a detailed analysis 11 of factors affecting costs and potential assessments on 12 consumers, and availability, of personal lines property and 13 casualty insurance in Florida generally and in those areas in 14 which coverage is underwritten by the Citizens Property and 15 Casualty Insurance Company. The analysis shall include an 16 evaluation of such factors and recommendations appropriate to 17 moderate or enhance their impact on premiums potential 18 assessments and availability of such insurance. Such factors 19 shall include, but are not limited to: 20 (a) The factors affecting the level of competition and 21 premium levels specifically, including the impact of rate 22 regulation and possible rating law reforms, and including 23 reforms that have succeeded or failed in other states. 24 (b) The cost and benefits of required coverages and of 25 restrictions on optional coverages that could otherwise be 26 made available to consumers. 27 (c) Such other information as may be useful to the 28 Legislature in determining how to increase availability and, 29 over the short and long term, to moderate costs and potential 30 consumer assessments. 31 (2) The study shall be funded from a budget of no more 33 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 than $250,000, which shall be funded by assessments on 2 insurers issuing personal lines property and casualty 3 insurance in the state. Such assessments shall be collected by 4 the Office of Insurance Regulation and shall be prorated among 5 such insurers according to a formula whereby each insurer 6 shall pay a fraction of such budget, the numerator of which 7 shall be such insurer's direct earned premiums for personal 8 lines property and casualty insurance in the state and the 9 denominator of which shall be the total direct earned premiums 10 for personal lines property and casualty insurance in the 11 state for calendar year 2003. 12 (3) The Department of Financial Services, the Office 13 of Insurance Regulation, and insurers shall cooperate with the 14 Florida State University College of Business Department of 15 Risk Management and Insurance conducting the analysis and 16 shall provide such information as the Florida State University 17 College of Business Department of Risk Management and 18 Insurance may request in the format requested by the 19 university. 20 Section 164. Section 625.131, Florida Statutes, is 21 repealed. 22 Section 165. Nothing in this act shall be construed to 23 create or be the basis of a civil action. Nothing in this act 24 shall be construed as limiting settlement or adjustment of 25 claims by methods that are otherwise permissible under Florida 26 law. 27 Section 166. Except as otherwise expressly provided in 28 this act and except for this section, which shall take effect 29 upon becoming a law, this act shall take effect July 1, 2004. 30 31 34 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 ================ T I T L E A M E N D M E N T =============== 2 And the title is amended as follows: 3 On page 13, lines 10 and 11, delete the words 4 "providing an effective date." 5 6 and insert: 7 amending s. 20.121, F.S.; requiring the 8 Division of Consumer Services of the Department 9 of Financial Services to designate an employee 10 as primary contact for consumers on issues 11 involving sinkholes; authorizing the department 12 to issue an order of conditional release from a 13 stop-work order if an employer complies with 14 coverage requirements and a penalty payment 15 agreement; amending s. 501.137, F.S.; requiring 16 an insurer to reinstate, under certain 17 circumstances, an insurance policy that is 18 cancelled due to failure of the lender to pay a 19 premium for which sufficient escrow funds are 20 on deposit; requiring that the lender reimburse 21 the property owner for any penalties or fees 22 paid for purposes of reinstating the policy; 23 requiring the lender to pay the increased cost 24 of insurance premiums for a specified period of 25 time under certain conditions; amending s. 26 624.610, F.S.; revising the requirements of a 27 trust fund for a single assuming insurer; 28 amending s. 625.081, F.S.; providing an 29 exception for credit disability insurance from 30 a health insurance active life reserve 31 requirement; amending s. 625.121, F.S.; 35 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 providing for valuation of life insurance 2 policies; amending s. 626.321, F.S.; limiting 3 the types of business that may be transacted by 4 personal lines agents; creating s. 626.9743, 5 F.S., relating to claim settlement practices 6 for motor vehicle insurance; prescribing 7 standards to be followed by insurers; creating 8 s. 626.9744, F.S., relating to claim settlement 9 practices for homeowners' insurance; 10 prescribing standards to be followed by 11 insurers; amending s. 627.311, F.S.; allowing 12 the automobile insurance joint underwriting 13 plan to require additional proof from insureds 14 regarding cancellation of coverage; allowing 15 additional time for the investigation of claims 16 against the plan; providing for expiration of 17 the provision; amending s. 627.4091, F.S.; 18 providing additional disclosure requirements 19 with respect to a refusal to insure; amending 20 s. 627.4133, F.S.; requiring property insurers 21 to reinstate a canceled policy as required by 22 s. 501.137, F.S.; restricting the use of 23 certain claims as a cause for cancellation or 24 nonrenewal; amending s. 627.476, F.S.; 25 authorizing the use of certain mortality tables 26 for purposes of the Standard Nonforfeiture Law 27 for Life Insurance; creating s. 627.7077, F.S.; 28 providing for a feasibility study for a 29 proposed Florida Sinkhole Insurance Facility; 30 amending s. 627.838, F.S.; deleting a filing 31 fee; amending s. 627.848, F.S.; specifying 36 6:55 PM 04/26/04 s2994c2c-11t1a
SENATE AMENDMENT Bill No. CS for CS for SB 2994, 1st Eng. Amendment No. ___ Barcode 754486 1 provisions for cancellation of insurance 2 contracts; amending s. 627.849, F.S., to 3 conform to the elimination of a filing fee; 4 providing for a study and report by the Florida 5 State University College of Business on 6 personal lines property and casualty insurance; 7 repealing s. 625.131, F.S., relating to credit 8 life and disability policies; providing for 9 construction of the act; providing effective 10 dates. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 37 6:55 PM 04/26/04 s2994c2c-11t1a
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