FL
Florida House Bill H0951

Florida 2022 Regular Session

Florida House Bill H0951 Compare Versions

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1010 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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1414 A bill to be entitled 1
1515 An act relating to domestic surplus lines insurers; 2
16-amending s. 626.914, F.S.; defining the term "domestic 3
17-surplus lines insurer"; revising the definition of the 4
18-term "eligible surplus lines insurer" to include 5
19-domestic surplus lines insurers; creating s. 6
16+amending s. 626.914, F.S.; revising the definition of 3
17+the term "eligible surplus lines insurer" to include 4
18+domestic surplus lines insurers; defining the term 5
19+"domestic surplus line insurer"; creating s. 6
2020 626.91805, F.S.; defining the term "nonadmitted 7
2121 insurer"; authorizing specified nonadmitted insurers 8
2222 to transact insurance as domestic surplus lines 9
23-insurers under certain circumstances; requiring 10
24-domestic surplus lines insurers to maintain a minimum 11
25-surplus amount; requiring such insurers to be deemed 12
26-eligible surplus lines insurers and to be included in 13
27-the list of eligible surplus lines insurers; 14
28-authorizing such insurers to write certain kinds of 15
29-insurance; requiring such insurers to be considered 16
30-unauthorized insurers for specified purposes; 17
31-requiring such insurers to be considered nonadmitted 18
32-insurers for specified purposes; authorizing domestic 19
33-surplus lines insurers to write only surplus lines 20
34-insurance under a specified circumstance; prohibiting 21
35-such insurers from simultaneously holding any 22
36-certificate of authority to operate as admitted 23
37-insurers; authorizing such insurers to write surplus 24
38-lines insurance in any jurisdiction if specified 25
23+insurers under certain circumstances; authorizing such 10
24+insurers to write surplus lines insurance in any 11
25+jurisdiction; providing that such authorization is not 12
26+contingent on the existence of a certificate of 13
27+authority; requiring domestic surplus lines insurers 14
28+to be deemed eligible surplus lines insurers and to be 15
29+included in the list of eligible surplus lines 16
30+insurers; authorizing such insurers to write certain 17
31+kinds of insurance; requiring domestic surplus lines 18
32+insurers to be considered unauthorized insurers for 19
33+specified purposes; requiring domestic surplus lines 20
34+insurers to be considered nonadmitted insurers for 21
35+specified purposes; authorizing domestic surplus lines 22
36+insurers to write only surplus lines insurance; 23
37+limiting the circumstances under which such insurers 24
38+may write surplus lines insurance; providing 25
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4747 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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51-requirements are met; providing applicability of 26
52-specified requirements of the Florida Insurance Code 27
53-to such insurers; providing an exception; providing an 28
54-exemption from a specified law for such insurers; 29
51+applicability of specified financial and solvency 26
52+requirements to domestic surplus lines insurers; 27
53+providing an exception; providing an exemption from a 28
54+specified law for domestic surplus lines insurers; 29
5555 providing exemptions from specified requirements for 30
5656 surplus lines insurance policies issued by such 31
5757 insurers; providing that such policies are subject to 32
5858 specified taxes but are not subject to certain other 33
5959 taxes; providing that such policies are not subject to 34
60-the protections and requirements of specified acts and 35
61-a specified fund; prohibiting such insurers from 36
62-issuing certain homeowners' policies under a specified 37
63-circumstance; providing nonapplicability; prohibiting 38
64-such insurers from issuing certain policies to satisfy 39
65-specified laws; amending ss. 458.320, 459.0085, and 40
66-464.0123, F.S.; conforming cross -references; amending 41
67-s. 629.401, F.S.; specifying cross -references; 42
68-providing an effective date. 43
69- 44
70-Be It Enacted by the Legislature of the State of Florida: 45
71- 46
72- Section 1. Section 626.914, Florida Statutes, is amended 47
73-to read: 48
74- 626.914 Definitions. —As used in this Surplus Lines Law, 49
75-the term: 50
60+the protections and requirements of specified acts; 35
61+amending ss. 458.320, 459.0085, and 464.0123 , F.S.; 36
62+conforming cross-references; amending s. 629.401, 37
63+F.S.; specifying cross -references; providing an 38
64+effective date. 39
65+ 40
66+Be It Enacted by the Legislature of the State of Florida: 41
67+ 42
68+ Section 1. Section 626.914, Florida Statutes, is amended 43
69+to read: 44
70+ 626.914 Definitions. —As used in this Surplus Lines Law, 45
71+the term: 46
72+ (1)(4) "Diligent effort" means seeking coverage from and 47
73+having been rejected by at least three authorized insurers 48
74+currently writing this type of coverage and documenting these 49
75+rejections. However, if the residential structure has a dwelling 50
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8484 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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88- (1)(4) "Diligent effort" means seeking coverage from and 51
89-having been rejected by at least three authorized insurers 52
90-currently writing this type of coverage and documenting these 53
91-rejections. However, if the residential s tructure has a dwelling 54
92-replacement cost of $700,000 or more, the term means seeking 55
93-coverage from and having been rejected by at least one 56
94-authorized insurer currently writing this type of coverage and 57
95-documenting this rejection. 58
96- (2) "Domestic surplus l ines insurer" means a nonadmitted 59
97-insurer domiciled in this state that: 60
98- (a) Has been deemed eligible and authorized by the office 61
99-to write surplus lines insurance; and 62
100- (b) May write surplus lines insurance in any jurisdiction, 63
101-including this state. The authorization to write surplus lines 64
102-insurance is not contingent on the company's holding of an 65
103-existing certificate of authority. 66
104- 67
105-The term does not include an authorized insurer as defined in s. 68
106-624.09. 69
107- (3)(2) "Eligible surplus lines insurer" means : 70
108- (a) An unauthorized insurer that which has been made 71
109-eligible by the office to issue insurance coverage under this 72
110-Surplus Lines Law; or 73
111- (b) A domestic surplus lines insurer . 74
112- (4)(3) "Export" "To export" means to place, in an 75
88+replacement cost of $700,000 or more, the term means seeking 51
89+coverage from and having been rejected by at least one 52
90+authorized insurer currently writing this type of coverage and 53
91+documenting this rej ection. 54
92+ (2) "Domestic surplus lines insurer" means a nonadmitted 55
93+insurer domiciled in this state that has been authorized by the 56
94+office to write surplus lines insurance. 57
95+ (3)(2) "Eligible surplus lines insurer" means : 58
96+ (a) An unauthorized insurer that which has been made 59
97+eligible by the office to issue insurance coverage under this 60
98+Surplus Lines Law; or 61
99+ (b) A domestic surplus lines insurer . 62
100+ (4)(3) "Export" "To export" means to place, in an 63
101+unauthorized insurer under this Surplus Lines Law, insurance 64
102+covering a subject of insurance resident, located, or to be 65
103+performed in this state. 66
104+ (5)(1) "Surplus lines agent" means an individual licensed 67
105+as provided in this part to handle the placement of insurance 68
106+coverages with unauthorized insurers and to plac e such coverages 69
107+with authorized insurers as to which the licensee is not 70
108+licensed as an agent. 71
109+ Section 2. Section 626.91805, Florida Statutes, is created 72
110+to read: 73
111+ 626.91805 Domestic surplus lines insurers. — 74
112+ (1) As used in this section, the term "n onadmitted 75
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121121 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125-unauthorized insurer under this Surplus Lines Law, insurance 76
126-covering a subject of insurance resident, located, or to be 77
127-performed in this state. 78
128- (5)(1) "Surplus lines agent" means an individual licensed 79
129-as provided in this part to handle the placement of insurance 80
130-coverages with unauthorized insurers and to place such coverages 81
131-with authorized insurers as to which the licensee is not 82
132-licensed as an agent. 83
133- Section 2. Section 626.91805, Florida Statutes, is created 84
134-to read: 85
135- 626.91805 Domestic surplus lines insurers. — 86
136- (1) As used in this section, the term "nonadmitted 87
137-insurer" has the same meaning as provided in the federal 88
138-Nonadmitted and Reinsurance Reform Act of 2010. 89
139- (2) Notwithstanding any other law, a nonadmitted insurer 90
140-possessing a policyholder surplus of at least $ 15 million may, 91
141-under a resolution by its board of directors and with the 92
142-written approval of the office, be eligible to transact 93
143-insurance as a domestic surplus lines insurer. A domestic 94
144-surplus lines insurer must maintain surplus of at least $15 95
145-million at all times. 96
146- (3) Notwithstanding s. 626.918(2), a domestic surplus 97
147-lines insurer shall be deemed an eligible surplus lines insurer 98
148-and shall be included in the list of eligible surplus lines 99
149-insurers required by s. 626.918(3). Eligible surplus lines 100
125+insurer" has the same meaning as provided in the federal 76
126+Nonadmitted and Reinsurance Reform Act of 2010. 77
127+ (2) Notwithstanding any other law, a nonadmitted insurer 78
128+possessing a policyholder surplus of at least $15 million may, 79
129+under a resolution by its board of directors and with the 80
130+written approval of the office, be authorized to transact 81
131+insurance as a domestic surplus lines insurer. Such insurers are 82
132+authorized to write surplus lines insurance in any jurisdiction, 83
133+including this state, and su ch authorization is not contingent 84
134+on the company's holding of an existing certificate of 85
135+authority. 86
136+ (3) Notwithstanding s. 626.918(2), a domestic surplus 87
137+lines insurer shall be deemed an eligible surplus lines insurer 88
138+and shall be included in the list o f eligible surplus lines 89
139+insurers required by s. 626.918(3). Eligible surplus lines 90
140+insurers listed in s. 626.918(3) may write any kind of insurance 91
141+that an unauthorized insurer not domiciled in this state is 92
142+eligible to write. 93
143+ (4) For purposes of writin g surplus lines insurance 94
144+pursuant to the Surplus Lines Law, a domestic surplus lines 95
145+insurer shall be considered an unauthorized insurer. 96
146+ (5) For purposes of the federal Nonadmitted and 97
147+Reinsurance Reform Act of 2010, a domestic surplus lines insurer 98
148+shall be considered a nonadmitted insurer. 99
149+ (6) A domestic surplus lines insurer may write only 100
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158158 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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162-insurers listed in s. 626.918(3) may write any kind of insurance 101
163-that an unauthorized insurer not domiciled in this state is 102
164-eligible to write. 103
165- (4) For purposes of writing surplus lines insurance 104
166-pursuant to the Surplus Lines Law, a domestic surplus lines 105
167-insurer shall be considered an unauthorized insurer. 106
168- (5) For purposes of the federal Nonadmitted and 107
169-Reinsurance Reform Act of 2010, a domestic surplus lines insurer 108
170-shall be considered a nonadmitted insurer. 109
171- (6) A domestic surplus lines insurer may wri te only 110
172-surplus lines insurance in this state which is procured from a 111
173-surplus lines agent pursuant to the Surplus Lines Law. Such 112
174-insurer may not simultaneously hold any certificate of authority 113
175-authorizing it to operate as an admitted insurer. 114
176- (7) A domestic surplus lines insurer may write surplus 115
177-lines insurance in any jurisdiction if such insurer complies 116
178-with the requirements of that jurisdiction. 117
179- (8) All requirements imposed by the Florida Insurance Code 118
180-on admitted domestic insurers apply to dome stic surplus lines 119
181-insurers unless otherwise exempted in this section. 120
182- (9) A domestic surplus lines insurer is exempt from s. 121
183-624.408. 122
184- (10) A surplus lines insurance policy issued by a domestic 123
185-surplus lines insurer is exempt from all statutory require ments 124
186-relating to insurance rating and rating plans; policy forms; 125
162+surplus lines insurance in this state and only if procured from 101
163+a surplus lines agent pursuant to the Surplus Lines Law. 102
164+ (7) All financial and solvency require ments imposed by 103
165+this state's laws on admitted domestic insurers apply to 104
166+domestic surplus lines insurers unless domestic surplus lines 105
167+insurers are otherwise specifically exempted. 106
168+ (8) A domestic surplus lines insurer is exempt from s. 107
169+624.408. 108
170+ (9) A surplus lines insurance policy issued by a domestic 109
171+surplus lines insurer is exempt from all statutory requirements 110
172+relating to insurance rating and rating plans; policy forms; 111
173+premiums charged to insureds; policy cancellation, nonrenewal, 112
174+and renewal; and other statutory requirements in the same manner 113
175+and to the same extent as surplus lines policies issued by a 114
176+surplus lines insurer domiciled in another state. 115
177+ (10) Notwithstanding any other law, a policy issued by a 116
178+domestic surplus lines insurer is sub ject to taxes assessed upon 117
179+surplus lines policies issued by nonadmitted insurers, including 118
180+surplus lines premium taxes, but is not subject to other taxes 119
181+levied upon admitted insurers, whether domestic or foreign. 120
182+ (11) A policy issued by a domestic sur plus lines insurer 121
183+is not subject to the protections or requirements of the Florida 122
184+Insurance Guaranty Association Act, the Florida Life and Health 123
185+Insurance Guaranty Association Act, or the Florida Workers' 124
186+Compensation Insurance Guaranty Association Act. 125
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195195 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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199-premiums charged to insureds; policy cancellation, nonrenewal, 126
200-and renewal; and other statutory requirements in the same manner 127
201-and to the same extent as surplus lines policies issued by a 128
202-surplus lines insurer domiciled in another state. 129
203- (11) Notwithstanding any other law, a policy issued by a 130
204-domestic surplus lines insurer is subject to taxes assessed upon 131
205-surplus lines policies issued by nonadmitted insurers, including 132
206-surplus lines premium taxes, but is not subject to other taxes 133
207-levied upon admitted insurers, whether domestic or foreign. 134
208- (12) A policy issued by a domestic surplus lines insurer 135
209-is not subject to the protections or requirements of the Florida 136
210-Insurance Guaranty Associa tion Act, the Florida Life and Health 137
211-Insurance Guaranty Association Act, the Florida Workers' 138
212-Compensation Insurance Guaranty Association Act, or the Florida 139
213-Hurricane Catastrophe Fund. 140
214- (13) A domestic surplus lines insurer may not issue a 141
215-homeowner's policy covering a personal residential property 142
216-located in this state within 12 months after the effective date 143
217-of a nonrenewal or cancellation of a previous policy if the 144
218-nonrenewal or cancellation of the previous policy was initiated 145
219-by an affiliate of an admitted insurer. This restriction does 146
220-not apply to a nonrenewal or cancellation provided at the 147
221-insured's request. A domestic surplus lines insurer may not 148
222-issue a policy designed to satisfy the motor vehicle financial 149
223-responsibility requirements of thi s state under chapter 324, the 150
199+ Section 3. Paragraph (b) of subsection (1) and paragraph 126
200+(b) of subsection (2) of section 458.320, Florida Statutes, are 127
201+amended to read: 128
202+ 458.320 Financial responsibility. — 129
203+ (1) As a condition of licensing and maintaining an active 130
204+license, and prior to the issuance or renewal of an active 131
205+license or reactivation of an inactive license for the practice 132
206+of medicine, an applicant must by one of the following methods 133
207+demonstrate to the satisfaction of the board and the department 134
208+financial responsibili ty to pay claims and costs ancillary 135
209+thereto arising out of the rendering of, or the failure to 136
210+render, medical care or services: 137
211+ (b) Obtaining and maintaining professional liability 138
212+coverage in an amount not less than $100,000 per claim, with a 139
213+minimum annual aggregate of not less than $300,000, from an 140
214+authorized insurer as defined under s. 624.09, from a surplus 141
215+lines insurer as defined under s. 626.914 s. 626.914(2), from a 142
216+risk retention group as defined under s. 627.942, from the Joint 143
217+Underwriting Association established under s. 627.351(4), or 144
218+through a plan of self -insurance as provided in s. 627.357. The 145
219+required coverage amount set forth in this paragraph may not be 146
220+used for litigation costs or attorney's fees for the defense of 147
221+any medical malpractice claim. 148
222+ (2) Physicians who perform surgery in an ambulatory 149
223+surgical center licensed under chapter 395 and, as a continuing 150
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232232 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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236-Workers' Compensation Law under chapter 440, or any other law of 151
237-this state mandating insurance coverage by an admitted insurer. 152
238- Section 3. Paragraph (b) of subsection (1) and paragraph 153
239-(b) of subsection (2) of section 45 8.320, Florida Statutes, are 154
240-amended to read: 155
241- 458.320 Financial responsibility. — 156
242- (1) As a condition of licensing and maintaining an active 157
243-license, and prior to the issuance or renewal of an active 158
244-license or reactivation of an inactive license for the practice 159
245-of medicine, an applicant must by one of the following methods 160
246-demonstrate to the satisfaction of the board and the department 161
247-financial responsibility to pay claims and costs ancillary 162
248-thereto arising out of the rendering of, or the failure to 163
249-render, medical care or services: 164
250- (b) Obtaining and maintaining professional liability 165
251-coverage in an amount not less than $100,000 per claim, with a 166
252-minimum annual aggregate of not less than $300,000, from an 167
253-authorized insurer as defined under s. 624.09 , from a surplus 168
254-lines insurer as defined under s. 626.914 s. 626.914(2), from a 169
255-risk retention group as defined under s. 627.942, from the Joint 170
256-Underwriting Association established under s. 627.351(4), or 171
257-through a plan of self -insurance as provided in s . 627.357. The 172
258-required coverage amount set forth in this paragraph may not be 173
259-used for litigation costs or attorney's fees for the defense of 174
260-any medical malpractice claim. 175
236+condition of hospital staff privileges, physicians who have 151
237+staff privileges must also establish financial responsibility b y 152
238+one of the following methods: 153
239+ (b) Obtaining and maintaining professional liability 154
240+coverage in an amount not less than $250,000 per claim, with a 155
241+minimum annual aggregate of not less than $750,000 from an 156
242+authorized insurer as defined under s. 624.09, from a surplus 157
243+lines insurer as defined under s. 626.914 s. 626.914(2), from a 158
244+risk retention group as defined under s. 627.942, from the Joint 159
245+Underwriting Association established under s. 627.351(4), 160
246+through a plan of self -insurance as provided in s. 627 .357, or 161
247+through a plan of self -insurance which meets the conditions 162
248+specified for satisfying financial responsibility in s. 766.110. 163
249+The required coverage amount set forth in this paragraph may not 164
250+be used for litigation costs or attorney's fees for the d efense 165
251+of any medical malpractice claim. 166
252+ 167
253+This subsection shall be inclusive of the coverage in subsection 168
254+(1). 169
255+ Section 4. Paragraph (b) of subsection (1) and paragraph 170
256+(b) of subsection (2) of section 459.0085, Florida Statutes, are 171
257+amended to read: 172
258+ 459.0085 Financial responsibility. — 173
259+ (1) As a condition of licensing and maintaining an active 174
260+license, and prior to the issuance or renewal of an active 175
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269269 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273- (2) Physicians who perform surgery in an ambulatory 176
274-surgical center licensed und er chapter 395 and, as a continuing 177
275-condition of hospital staff privileges, physicians who have 178
276-staff privileges must also establish financial responsibility by 179
277-one of the following methods: 180
278- (b) Obtaining and maintaining professional liability 181
279-coverage in an amount not less than $250,000 per claim, with a 182
280-minimum annual aggregate of not less than $750,000 from an 183
281-authorized insurer as defined under s. 624.09, from a surplus 184
282-lines insurer as defined under s. 626.914 s. 626.914(2), from a 185
283-risk retention group as defined under s. 627.942, from the Joint 186
284-Underwriting Association established under s. 627.351(4), 187
285-through a plan of self -insurance as provided in s. 627.357, or 188
286-through a plan of self -insurance which meets the conditions 189
287-specified for satisfying fin ancial responsibility in s. 766.110. 190
288-The required coverage amount set forth in this paragraph may not 191
289-be used for litigation costs or attorney attorney's fees for the 192
290-defense of any medical malpractice claim. 193
291- 194
292-This subsection shall be inclusive of the coverage in subsection 195
293-(1). 196
294- Section 4. Paragraph (b) of subsection (1) and paragraph 197
295-(b) of subsection (2) of section 459.0085, Florida Statutes, are 198
296-amended to read: 199
297- 459.0085 Financial responsibility. — 200
273+license or reactivation of an inactive license for the practice 176
274+of osteopathic medicine, an applican t must by one of the 177
275+following methods demonstrate to the satisfaction of the board 178
276+and the department financial responsibility to pay claims and 179
277+costs ancillary thereto arising out of the rendering of, or the 180
278+failure to render, medical care or services: 181
279+ (b) Obtaining and maintaining professional liability 182
280+coverage in an amount not less than $100,000 per claim, with a 183
281+minimum annual aggregate of not less than $300,000, from an 184
282+authorized insurer as defined under s. 624.09, from a surplus 185
283+lines insurer as defined under s. 626.914 s. 626.914(2), from a 186
284+risk retention group as defined under s. 627.942, from the Joint 187
285+Underwriting Association established under s. 627.351(4), or 188
286+through a plan of self -insurance as provided in s. 627.357. The 189
287+required coverage amount set forth in this paragraph may not be 190
288+used for litigation costs or attorney's fees for the defense of 191
289+any medical malpractice claim. 192
290+ (2) Osteopathic physicians who perform surgery in an 193
291+ambulatory surgical center licensed under chapter 395 and, as a 194
292+continuing condition of hospital staff privileges, osteopathic 195
293+physicians who have staff privileges must also establish 196
294+financial responsibility by one of the following methods: 197
295+ (b) Obtaining and maintaining professional liability 198
296+coverage in an amoun t not less than $250,000 per claim, with a 199
297+minimum annual aggregate of not less than $750,000 from an 200
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306306 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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310- (1) As a condition of licensing and maintaini ng an active 201
311-license, and prior to the issuance or renewal of an active 202
312-license or reactivation of an inactive license for the practice 203
313-of osteopathic medicine, an applicant must by one of the 204
314-following methods demonstrate to the satisfaction of the board 205
315-and the department financial responsibility to pay claims and 206
316-costs ancillary thereto arising out of the rendering of, or the 207
317-failure to render, medical care or services: 208
318- (b) Obtaining and maintaining professional liability 209
319-coverage in an amount not less than $100,000 per claim, with a 210
320-minimum annual aggregate of not less than $300,000, from an 211
321-authorized insurer as defined under s. 624.09, from a surplus 212
322-lines insurer as defined under s. 626.914 s. 626.914(2), from a 213
323-risk retention group as defined under s. 627.942, from the Joint 214
324-Underwriting Association established under s. 627.351(4), or 215
325-through a plan of self -insurance as provided in s. 627.357. The 216
326-required coverage amount set forth in this paragraph may not be 217
327-used for litigation costs or attorney's fees for the defense of 218
328-any medical malpractice claim. 219
329- (2) Osteopathic physicians who perform surgery in an 220
330-ambulatory surgical center licensed under chapter 395 and, as a 221
331-continuing condition of hospital staff privileges, osteopathic 222
332-physicians who have staff privileges must also establish 223
333-financial responsibility by one of the following methods: 224
334- (b) Obtaining and maintaining professional liability 225
310+authorized insurer as defined under s. 624.09, from a surplus 201
311+lines insurer as defined under s. 626.914 s. 626.914(2), from a 202
312+risk retention group as defi ned under s. 627.942, from the Joint 203
313+Underwriting Association established under s. 627.351(4), 204
314+through a plan of self -insurance as provided in s. 627.357, or 205
315+through a plan of self -insurance that meets the conditions 206
316+specified for satisfying financial resp onsibility in s. 766.110. 207
317+The required coverage amount set forth in this paragraph may not 208
318+be used for litigation costs or attorney's fees for the defense 209
319+of any medical malpractice claim. 210
320+ 211
321+This subsection shall be inclusive of the coverage in subsection 212
322+(1). 213
323+ Section 5. Paragraph (a) of subsection (2) of section 214
324+464.0123, Florida Statutes, is amended to read: 215
325+ 464.0123 Autonomous practice by an advanced practice 216
326+registered nurse.— 217
327+ (2) FINANCIAL RESPONSIBILITY. — 218
328+ (a) An advanced practice registered nurse registered under 219
329+this section must, by one of the following methods, demonstrate 220
330+to the satisfaction of the board and the department financial 221
331+responsibility to pay claims and costs ancillary thereto arising 222
332+out of the rendering of, or the failure to render, nursing care, 223
333+treatment, or services: 224
334+ 1. Obtaining and maintaining professional liability 225
335335
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343343 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
344344
345345
346346
347-coverage in an amount not less than $250,000 per claim, with a 226
348-minimum annual aggregate of not less than $750,000 from an 227
349-authorized insurer as defined under s. 624.09, from a surplus 228
350-lines insurer as defined under s. 626.914 s. 626.914(2), from a 229
351-risk retention group as defined under s. 627.942, from the Joint 230
352-Underwriting Association established under s. 6 27.351(4), 231
353-through a plan of self -insurance as provided in s. 627.357, or 232
354-through a plan of self -insurance that meets the conditions 233
355-specified for satisfying financial responsibility in s. 766.110. 234
356-The required coverage amount set forth in this paragraph m ay not 235
357-be used for litigation costs or attorney's fees for the defense 236
358-of any medical malpractice claim. 237
359- 238
360-This subsection shall be inclusive of the coverage in subsection 239
361-(1). 240
362- Section 5. Paragraph (a) of subsection (2) of section 241
363-464.0123, Florida Statutes, is amended to read: 242
364- 464.0123 Autonomous practice by an advanced practice 243
365-registered nurse.— 244
366- (2) FINANCIAL RESPONSIBILITY. — 245
367- (a) An advanced practice registered nurse registered under 246
368-this section must, by one of the following methods, demons trate 247
369-to the satisfaction of the board and the department financial 248
370-responsibility to pay claims and costs ancillary thereto arising 249
371-out of the rendering of, or the failure to render, nursing care, 250
347+coverage in an amount not less than $100,000 per claim, with a 226
348+minimum annual aggregate of not less than $300,000, from an 227
349+authorized insurer as defined in s. 624.09, from a surplus lines 228
350+insurer as defined in s. 626.914 s. 626.914(2), from a risk 229
351+retention group as defined in s. 627.942, from the Joint 230
352+Underwriting Association established under s. 627.351(4), or 231
353+through a plan of self -insurance as provided in s. 627.357; or 232
354+ 2. Obtaining and maintaining an unexpired, irrevocable 233
355+letter of credit, established pursuant to chapter 675, in an 234
356+amount of not less than $100,000 per claim, with a minimum 235
357+aggregate availability of credit of not less than $300,000. T he 236
358+letter of credit must be payable to the advanced practice 237
359+registered nurse as beneficiary upon presentment of a final 238
360+judgment indicating liability and awarding damages to be paid by 239
361+the advanced practice registered nurse or upon presentment of a 240
362+settlement agreement signed by all parties to such agreement 241
363+when such final judgment or settlement is a result of a claim 242
364+arising out of the rendering of, or the failure to render, 243
365+nursing care and services. 244
366+ Section 6. Paragraph (b) of subsection (6) of sec tion 245
367+629.401, Florida Statutes, is amended to read: 246
368+ 629.401 Insurance exchange. — 247
369+ (6) 248
370+ (b) In addition to the insurance laws specified in 249
371+paragraph (a), the office shall regulate the exchange pursuant 250
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380380 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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384-treatment, or services: 251
385- 1. Obtaining and maintaining pro fessional liability 252
386-coverage in an amount not less than $100,000 per claim, with a 253
387-minimum annual aggregate of not less than $300,000, from an 254
388-authorized insurer as defined in s. 624.09, from a surplus lines 255
389-insurer as defined in s. 626.914(3) s. 626.914(2), from a risk 256
390-retention group as defined in s. 627.942, from the Joint 257
391-Underwriting Association established under s. 627.351(4), or 258
392-through a plan of self -insurance as provided in s. 627.357; or 259
393- 2. Obtaining and maintaining an unexpired, irrevocable 260
394-letter of credit, established pursuant to chapter 675, in an 261
395-amount of not less than $100,000 per claim, with a minimum 262
396-aggregate availability of credit of not less than $300,000. The 263
397-letter of credit must be payable to the advanced practice 264
398-registered nurse as beneficiary upon presentment of a final 265
399-judgment indicating liability and awarding damages to be paid by 266
400-the advanced practice registered nurse or upon presentment of a 267
401-settlement agreement signed by all parties to such agreement 268
402-when such final judgmen t or settlement is a result of a claim 269
403-arising out of the rendering of, or the failure to render, 270
404-nursing care and services. 271
405- Section 6. Paragraph (b) of subsection (6) of section 272
406-629.401, Florida Statutes, is amended to read: 273
407- 629.401 Insurance exchan ge.— 274
408- (6) 275
384+to the following powers, rights, and duties: 251
385+ 1. General examination powers. —The office shall examine 252
386+the affairs, transactions, accounts, records, and assets of any 253
387+security fund, exchange, members, and associate brokers as often 254
388+as it deems advisable. The examination may be conducted by the 255
389+accredited examiners of the office at the offices of the entity 256
390+or person being examined. The office shall examine in like 257
391+manner each prospective member or associate broker applying for 258
392+membership in an exchange. 259
393+ 2. Office approval and applications of underwriting 260
394+members.—No underwriting member shall commence operation without 261
395+the approval of the office. Before commencing operation, an 262
396+underwriting member shall provide a written application 263
397+containing: 264
398+ a. Name, type, and purpose of the underwriting member. 265
399+ b. Name, residence address, business background, and 266
400+qualifications of each person associated or to be associated in 267
401+the formation or financing of the underwriting member. 268
402+ c. Full disclosure of the terms of all understandings and 269
403+agreements existing or propos ed among persons so associated 270
404+relative to the underwriting member, or the formation or 271
405+financing thereof, accompanied by a copy of each such agreement 272
406+or understanding. 273
407+ d. Full disclosure of the terms of all understandings and 274
408+agreements existing or pro posed for management or exclusive 275
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417417 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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421- (b) In addition to the insurance laws specified in 276
422-paragraph (a), the office shall regulate the exchange pursuant 277
423-to the following powers, rights, and duties: 278
424- 1. General examination powers. —The office shall examine 279
425-the affairs, transactions, accounts, records, and assets of any 280
426-security fund, exchange, members, and associate brokers as often 281
427-as it deems advisable. The examination may be conducted by the 282
428-accredited examiners of the office at the offices of the entity 283
429-or person being examined. T he office shall examine in like 284
430-manner each prospective member or associate broker applying for 285
431-membership in an exchange. 286
432- 2. Office approval and applications of underwriting 287
433-members.—No underwriting member shall commence operation without 288
434-the approval of the office. Before commencing operation, an 289
435-underwriting member shall provide a written application 290
436-containing: 291
437- a. Name, type, and purpose of the underwriting member. 292
438- b. Name, residence address, business background, and 293
439-qualifications of each person associated or to be associated in 294
440-the formation or financing of the underwriting member. 295
441- c. Full disclosure of the terms of all understandings and 296
442-agreements existing or proposed among persons so associated 297
443-relative to the underwriting member, or the for mation or 298
444-financing thereof, accompanied by a copy of each such agreement 299
445-or understanding. 300
421+agency contracts. 276
422+ 3. Investigation of underwriting member applications. —In 277
423+connection with any proposal to establish an underwriting 278
424+member, the office shall make an investigation of: 279
425+ a. The character, reputation, fina ncial standing, and 280
426+motives of the organizers, incorporators, or subscribers 281
427+organizing the proposed underwriting member. 282
428+ b. The character, financial responsibility, insurance 283
429+experience, and business qualifications of its proposed 284
430+officers. 285
431+ c. The character, financial responsibility, business 286
432+experience, and standing of the proposed stockholders and 287
433+directors, or owners. 288
434+ 4. Notice of management changes. —An underwriting member 289
435+shall promptly give the office written notice of any change 290
436+among the directors or principal officers of the underwriting 291
437+member within 30 days after such change. The office shall 292
438+investigate the new directors or principal officers of the 293
439+underwriting member. The office's investigation shall include an 294
440+investigation of the charac ter, financial responsibility, 295
441+insurance experience, and business qualifications of any new 296
442+directors or principal officers. As a result of the 297
443+investigation, the office may require the underwriting member to 298
444+replace any new directors or principal officers . 299
445+ 5. Alternate financial statement. —In lieu of any financial 300
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454454 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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457457
458- d. Full disclosure of the terms of all understandings and 301
459-agreements existing or proposed for management or exclusive 302
460-agency contracts. 303
461- 3. Investigation of unde rwriting member applications. —In 304
462-connection with any proposal to establish an underwriting 305
463-member, the office shall make an investigation of: 306
464- a. The character, reputation, financial standing, and 307
465-motives of the organizers, incorporators, or subscribers 308
466-organizing the proposed underwriting member. 309
467- b. The character, financial responsibility, insurance 310
468-experience, and business qualifications of its proposed 311
469-officers. 312
470- c. The character, financial responsibility, business 313
471-experience, and standing of the pro posed stockholders and 314
472-directors, or owners. 315
473- 4. Notice of management changes. —An underwriting member 316
474-shall promptly give the office written notice of any change 317
475-among the directors or principal officers of the underwriting 318
476-member within 30 days after suc h change. The office shall 319
477-investigate the new directors or principal officers of the 320
478-underwriting member. The office's investigation shall include an 321
479-investigation of the character, financial responsibility, 322
480-insurance experience, and business qualificatio ns of any new 323
481-directors or principal officers. As a result of the 324
482-investigation, the office may require the underwriting member to 325
458+examination, the office may accept an audited financial 301
459+statement. 302
460+ 6. Correction and reconstruction of records. —If the office 303
461+finds any accounts or records to be inadequate, or inadequately 304
462+kept or posted, it may employ experts to reconstruct, rewrite, 305
463+post, or balance them at the expense of the person or entity 306
464+being examined if such person or entity has failed to maintain, 307
465+complete, or correct such records or accounts after the office 308
466+has given him or her or it notice and reasonable opportunity to 309
467+do so. 310
468+ 7. Obstruction of examinations. —Any person or entity who 311
469+or which willfully obstructs the office or its examiner in an 312
470+examination is guilty of a misdemeanor of the second degree, 313
471+punishable as provided in s. 775.082 or s. 775.083. 314
472+ 8. Filing of annual statement. —Each underwriting member 315
473+shall file with the office a full and true statement of its 316
474+financial condition, transactions, and affairs. The statement 317
475+shall be filed on or before March 1 of each year, or within such 318
476+extension of time as the office for good cause grants, and shall 319
477+be for the preceding calendar year. The statement shall contain 320
478+information generally included in insurer financial statements 321
479+prepared in accordance with gene rally accepted insurance 322
480+accounting principles and practices and in a form generally 323
481+utilized by insurers for financial statements, sworn to by at 324
482+least two executive officers of the underwriting member. The 325
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491491 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
492492
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495-replace any new directors or principal officers. 326
496- 5. Alternate financial statement. —In lieu of any financial 327
497-examination, the office may accept an audited financial 328
498-statement. 329
499- 6. Correction and reconstruction of records. —If the office 330
500-finds any accounts or records to be inadequate, or inadequately 331
501-kept or posted, it may employ experts to reconstruct, rewrite, 332
502-post, or balance them at the expense of the person or entity 333
503-being examined if such person or entity has failed to maintain, 334
504-complete, or correct such records or accounts after the office 335
505-has given him or her or it notice and reasonable opportunity to 336
506-do so. 337
507- 7. Obstruction of examinations. —Any person or entity who 338
508-or which willfully obstructs the office or its examiner in an 339
509-examination is guilty of a misdemeanor of the second degree, 340
510-punishable as provided in s. 775.082 or s. 775.083. 341
511- 8. Filing of annual statement. —Each underwriting member 342
512-shall file with the office a full and true statement of its 343
513-financial condition, transactions, and affairs. The statement 344
514-shall be filed on or before March 1 of each year, or within such 345
515-extension of time as the office for good cause grants, and shall 346
516-be for the preceding calendar year. The statement shall contain 347
517-information generally included in insurer financial statements 348
518-prepared in accordance with generally accepted insurance 349
519-accounting principles and practices and in a form gen erally 350
495+form of the financial statements shall be the ap proved form of 326
496+the National Association of Insurance Commissioners or its 327
497+successor organization. The commission may by rule require each 328
498+insurer to submit any part of the information contained in the 329
499+financial statement in a computer -readable form compati ble with 330
500+the office's electronic data processing system. In addition to 331
501+information furnished in connection with its annual statement, 332
502+an underwriting member must furnish to the office as soon as 333
503+reasonably possible such information about its transactions or 334
504+affairs as the office requests in writing. All information 335
505+furnished pursuant to the office's request must be verified by 336
506+the oath of two executive officers of the underwriting member. 337
507+ 9. Record maintenance. —Each underwriting member shall have 338
508+and maintain its principal place of business in this state and 339
509+shall keep therein complete records of its assets, transactions, 340
510+and affairs in accordance with such methods and systems as are 341
511+customary for or suitable to the kind or kinds of insurance 342
512+transacted. 343
513+ 10. Examination of agents. —If the department has reason to 344
514+believe that any agent, as defined in s. 626.015 or s. 345
515+626.914(5) s. 626.914, has violated or is violating any 346
516+provision of the insurance law, or upon receipt of a written 347
517+complaint signed by any interested person indicating that any 348
518+such violation may exist, the department shall conduct such 349
519+examination as it deems necessary of the accounts, records, 350
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528528 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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532-utilized by insurers for financial statements, sworn to by at 351
533-least two executive officers of the underwriting member. The 352
534-form of the financial statements shall be the approved form of 353
535-the National Association of Insurance Commissioners or its 354
536-successor organization. The commission may by rule require each 355
537-insurer to submit any part of the information contained in the 356
538-financial statement in a computer -readable form compatible with 357
539-the office's electronic data processing system. In addition to 358
540-information furnished in connection with its annual statement, 359
541-an underwriting member must furnish to the office as soon as 360
542-reasonably possible such information about its transactions or 361
543-affairs as the office requests in writing. All information 362
544-furnished pursuant to the office's request must be verified by 363
545-the oath of two executive officers of the underwriting member. 364
546- 9. Record maintenance. —Each underwriting member shall have 365
547-and maintain its principal place of business in this state and 366
548-shall keep therein com plete records of its assets, transactions, 367
549-and affairs in accordance with such methods and systems as are 368
550-customary for or suitable to the kind or kinds of insurance 369
551-transacted. 370
552- 10. Examination of agents. —If the department has reason to 371
553-believe that any agent, as defined in s. 626.015 or s. 372
554-626.914(5) s. 626.914, has violated or is violating any 373
555-provision of the insurance law, or upon receipt of a written 374
556-complaint signed by any interested person indicating that any 375
532+documents, and transactions pertaining to or affecting the 351
533+insurance affairs of such agent. 352
534+ 11. Written reports of office. —The office or its examiner 353
535+shall make a full and true written report of any examination. 354
536+The report shall contain only information obtained from 355
537+examination of the records, accounts, files, and documents of or 356
538+relative to the person or entity examined or from testimony of 357
539+individuals under oath, together with relevant conclusions and 358
540+recommendations of the examiner based thereon. The office shall 359
541+furnish a copy of the report to the person or entity examined 360
542+not less than 30 days prior to filing the report in its office. 361
543+If such person or entity so requests in writing within such 30 -362
544+day period, the office shall grant a hearing with respect to the 363
545+report and shall not file the report until after the hearing and 364
546+after such modificati ons have been made therein as the office 365
547+deems proper. 366
548+ 12. Admissibility of reports. —The report of an examination 367
549+when filed shall be admissible in evidence in any action or 368
550+proceeding brought by the office against the person or entity 369
551+examined, or against his or her or its officers, employees, or 370
552+agents. The office or its examiners may at any time testify and 371
553+offer other proper evidence as to information secured or matters 372
554+discovered during the course of an examination, whether or not a 373
555+written report of the examination has been either made, 374
556+furnished, or filed in the office. 375
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569-such violation may exist, the departmen t shall conduct such 376
570-examination as it deems necessary of the accounts, records, 377
571-documents, and transactions pertaining to or affecting the 378
572-insurance affairs of such agent. 379
573- 11. Written reports of office. —The office or its examiner 380
574-shall make a full and true written report of any examination. 381
575-The report shall contain only information obtained from 382
576-examination of the records, accounts, files, and documents of or 383
577-relative to the person or entity examined or from testimony of 384
578-individuals under oath, together with relevant conclusions and 385
579-recommendations of the examiner based thereon. The office shall 386
580-furnish a copy of the report to the person or entity examined 387
581-not less than 30 days prior to filing the report in its office. 388
582-If such person or entity so request s in writing within such 30 -389
583-day period, the office shall grant a hearing with respect to the 390
584-report and shall not file the report until after the hearing and 391
585-after such modifications have been made therein as the office 392
586-deems proper. 393
587- 12. Admissibility of reports.—The report of an examination 394
588-when filed shall be admissible in evidence in any action or 395
589-proceeding brought by the office against the person or entity 396
590-examined, or against his or her or its officers, employees, or 397
591-agents. The office or its examin ers may at any time testify and 398
592-offer other proper evidence as to information secured or matters 399
593-discovered during the course of an examination, whether or not a 400
569+ 13. Publication of reports. —After an examination report 376
570+has been filed, the office may publish the results of any such 377
571+examination in one or more newspapers published in this state 378
572+whenever it deems it to be in the public interest. 379
573+ 14. Consideration of examination reports by entity 380
574+examined.—After the examination report of an underwriting member 381
575+has been filed, an affidavit shall be filed with the office, not 382
576+more than 30 days aft er the report has been filed, on a form 383
577+furnished by the office and signed by the person or a 384
578+representative of any entity examined, stating that the report 385
579+has been read and that the recommendations made in the report 386
580+will be considered within a reasonabl e time. 387
581+ 15. Examination costs. —Each person or entity examined by 388
582+the office shall pay to the office the expenses incurred in such 389
583+examination. 390
584+ 16. Exchange costs. —An exchange shall reimburse the office 391
585+for any expenses incurred by it relating to the regulation of 392
586+the exchange and its members, except as specified in 393
587+subparagraph 15. 394
588+ 17. Powers of examiners. —Any examiner appointed by the 395
589+office, as to the subject of any examination, investigation, or 396
590+hearing being conducted by him or her, may administ er oaths, 397
591+examine and cross-examine witnesses, and receive oral and 398
592+documentary evidence, and shall have the power to subpoena 399
593+witnesses, compel their attendance and testimony, and require by 400
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602602 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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604604
605605
606-written report of the examination has been either made, 401
607-furnished, or filed in the office. 402
608- 13. Publication of reports. —After an examination report 403
609-has been filed, the office may publish the results of any such 404
610-examination in one or more newspapers published in this state 405
611-whenever it deems it to be in the public interest. 406
612- 14. Consideration of ex amination reports by entity 407
613-examined.—After the examination report of an underwriting member 408
614-has been filed, an affidavit shall be filed with the office, not 409
615-more than 30 days after the report has been filed, on a form 410
616-furnished by the office and signed by the person or a 411
617-representative of any entity examined, stating that the report 412
618-has been read and that the recommendations made in the report 413
619-will be considered within a reasonable time. 414
620- 15. Examination costs. —Each person or entity examined by 415
621-the office shall pay to the office the expenses incurred in such 416
622-examination. 417
623- 16. Exchange costs. —An exchange shall reimburse the office 418
624-for any expenses incurred by it relating to the regulation of 419
625-the exchange and its members, except as specified in 420
626-subparagraph 15. 421
627- 17. Powers of examiners. —Any examiner appointed by the 422
628-office, as to the subject of any examination, investigation, or 423
629-hearing being conducted by him or her, may administer oaths, 424
630-examine and cross-examine witnesses, and receive oral and 425
606+subpoena the production of books, papers, records, files, 401
607+correspondence, documents, or other evidence which the examiner 402
608+deems relevant to the inquiry. If any person refuses to comply 403
609+with any such subpoena or to testify as to any matter concerning 404
610+which he or she may be lawfully interrogated, the Circuit Court 405
611+of Leon County or the circuit court of the county wherein such 406
612+examination, investigation, or hearing is being conducted, or of 407
613+the county wherein such person resides, on the office's 408
614+application may issue an order requiring such person to comply 409
615+with the subpoena and to testify; and any failure to obey such 410
616+an order of the court may be punished by the court as a contempt 411
617+thereof. Subpoenas shall be served, and proof of such service 412
618+made, in the same manner as if issued by a circuit court. 413
619+Witness fees and mileag e, if claimed, shall be allowed the same 414
620+as for testimony in a circuit court. 415
621+ 18. False testimony. —Any person willfully testifying 416
622+falsely under oath as to any matter material to any examination, 417
623+investigation, or hearing shall upon conviction thereof be 418
624+guilty of perjury and shall be punished accordingly. 419
625+ 19. Self-incrimination.— 420
626+ a. If any person asks to be excused from attending or 421
627+testifying or from producing any books, papers, records, 422
628+contracts, documents, or other evidence in connection with any 423
629+examination, hearing, or investigation being conducted by the 424
630+office or its examiner, on the ground that the testimony or 425
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643-documentary evidence, and shall have the power to subpoena 426
644-witnesses, compel their attendance and testimony, and require by 427
645-subpoena the production of books, papers, records, files, 428
646-correspondence, documents, or other evidence which the examiner 429
647-deems relevant to the inquiry. If any person refuses to comply 430
648-with any such subpoena or to testify as to any matter concerning 431
649-which he or she may be lawfully interrogated, the Circuit Court 432
650-of Leon County or the circuit court of the county wherein such 433
651-examination, investiga tion, or hearing is being conducted, or of 434
652-the county wherein such person resides, on the office's 435
653-application may issue an order requiring such person to comply 436
654-with the subpoena and to testify; and any failure to obey such 437
655-an order of the court may be pu nished by the court as a contempt 438
656-thereof. Subpoenas shall be served, and proof of such service 439
657-made, in the same manner as if issued by a circuit court. 440
658-Witness fees and mileage, if claimed, shall be allowed the same 441
659-as for testimony in a circuit court. 442
660- 18. False testimony. —Any person willfully testifying 443
661-falsely under oath as to any matter material to any examination, 444
662-investigation, or hearing shall upon conviction thereof be 445
663-guilty of perjury and shall be punished accordingly. 446
664- 19. Self-incrimination.— 447
665- a. If any person asks to be excused from attending or 448
666-testifying or from producing any books, papers, records, 449
667-contracts, documents, or other evidence in connection with any 450
643+evidence required of the person may tend to incriminate him or 426
644+her or subject him or her to a penalty or forfeiture, and the 427
645+person notwithstanding is directed to give such testimony or 428
646+produce such evidence, he or she shall, if so directed by the 429
647+office and the Department of Legal Affairs, nonetheless comply 430
648+with such direction; but the person shall not thereafter be 431
649+prosecuted or subjected to any penalty or forfeiture for or on 432
650+account of any transaction, matter, or thing concerning which he 433
651+or she may have so testified or produced evidence, and no 434
652+testimony so given or evidence so produced shall be received 435
653+against him or her upon any criminal action, investigation, or 436
654+proceeding; except that no such person so testifying shall be 437
655+exempt from prosecution or punishment for any perjury committed 438
656+by him or her in such testimony, and the testimony or evidence 439
657+so given or produced shall be a dmissible against him or her upon 440
658+any criminal action, investigation, or proceeding concerning 441
659+such perjury, nor shall he or she be exempt from the refusal, 442
660+suspension, or revocation of any license, permission, or 443
661+authority conferred, or to be conferred, p ursuant to the 444
662+insurance law. 445
663+ b. Any such individual may execute, acknowledge, and file 446
664+with the office a statement expressly waiving such immunity or 447
665+privilege in respect to any transaction, matter, or thing 448
666+specified in such statement, and thereupon th e testimony of such 449
667+individual or such evidence in relation to such transaction, 450
668668
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676676 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
677677
678678
679679
680-examination, hearing, or investigation being conducted by the 451
681-office or its examiner, on the ground that the testimony or 452
682-evidence required of the person may tend to incriminate him or 453
683-her or subject him or her to a penalty or forfeiture, and the 454
684-person notwithstanding is directed to give such testimony or 455
685-produce such evidence, he or she shall, if so directed by the 456
686-office and the Department of Legal Affairs, nonetheless comply 457
687-with such direction; but the person shall not thereafter be 458
688-prosecuted or subjected to any penalty or forfeiture for or on 459
689-account of any transaction, matter , or thing concerning which he 460
690-or she may have so testified or produced evidence, and no 461
691-testimony so given or evidence so produced shall be received 462
692-against him or her upon any criminal action, investigation, or 463
693-proceeding; except that no such person so t estifying shall be 464
694-exempt from prosecution or punishment for any perjury committed 465
695-by him or her in such testimony, and the testimony or evidence 466
696-so given or produced shall be admissible against him or her upon 467
697-any criminal action, investigation, or procee ding concerning 468
698-such perjury, nor shall he or she be exempt from the refusal, 469
699-suspension, or revocation of any license, permission, or 470
700-authority conferred, or to be conferred, pursuant to the 471
701-insurance law. 472
702- b. Any such individual may execute, acknowledge , and file 473
703-with the office a statement expressly waiving such immunity or 474
704-privilege in respect to any transaction, matter, or thing 475
680+matter, or thing may be received or produced before any judge or 451
681+justice, court, tribunal, grand jury, or otherwise; and if such 452
682+testimony or evidence is so received or produc ed, such 453
683+individual shall not be entitled to any immunity or privileges 454
684+on account of any testimony so given or evidence so produced. 455
685+ 20. Penalty for failure to testify. —Any person who refuses 456
686+or fails, without lawful cause, to testify relative to the 457
687+affairs of any member, associate broker, or other person when 458
688+subpoenaed and requested by the office to so testify, as 459
689+provided in subparagraph 17., shall, in addition to the penalty 460
690+provided in subparagraph 17., be guilty of a misdemeanor of the 461
691+second degree, punishable as provided in s. 775.082 or s. 462
692+775.083. 463
693+ 21. Name selection. —No underwriting member shall be formed 464
694+or authorized to transact insurance in this state under a name 465
695+which is the same as that of any authorized insurer or is so 466
696+nearly similar thereto as to cause or tend to cause confusion or 467
697+under a name which would tend to mislead as to the type of 468
698+organization of the insurer. Before incorporating under or using 469
699+any name, the underwriting syndicate or proposed underwriting 470
700+syndicate shall subm it its name or proposed name to the office 471
701+for the approval of the office. 472
702+ 22. Capitalization. —An underwriting member approved on or 473
703+after July 2, 1987, shall provide an initial paid -in capital and 474
704+surplus of $3 million and thereafter shall maintain a mi nimum 475
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713713 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
714714
715715
716716
717-specified in such statement, and thereupon the testimony of such 476
718-individual or such evidence in relation to such transaction , 477
719-matter, or thing may be received or produced before any judge or 478
720-justice, court, tribunal, grand jury, or otherwise; and if such 479
721-testimony or evidence is so received or produced, such 480
722-individual shall not be entitled to any immunity or privileges 481
723-on account of any testimony so given or evidence so produced. 482
724- 20. Penalty for failure to testify. —Any person who refuses 483
725-or fails, without lawful cause, to testify relative to the 484
726-affairs of any member, associate broker, or other person when 485
727-subpoenaed and requested by the office to so testify, as 486
728-provided in subparagraph 17., shall, in addition to the penalty 487
729-provided in subparagraph 17., be guilty of a misdemeanor of the 488
730-second degree, punishable as provided in s. 775.082 or s. 489
731-775.083. 490
732- 21. Name selection. —No underwriting member shall be formed 491
733-or authorized to transact insurance in this state under a name 492
734-which is the same as that of any authorized insurer or is so 493
735-nearly similar thereto as to cause or tend to cause confusion or 494
736-under a name which would tend to mislead as to the type of 495
737-organization of the insurer. Before incorporating under or using 496
738-any name, the underwriting syndicate or proposed underwriting 497
739-syndicate shall submit its name or proposed name to the office 498
740-for the approval of the office. 499
741- 22. Capitalization.—An underwriting member approved on or 500
717+policyholder surplus of $2 million in order to be permitted to 476
718+write insurance. Underwriting members approved prior to July 2, 477
719+1987, shall maintain a minimum policyholder surplus of $1 478
720+million. After June 29, 1988, underwriting members approved 479
721+prior to July 2, 1987, must maintain a minimum policyholder 480
722+surplus of $1.5 million to write insurance. After June 29, 1989, 481
723+underwriting members approved prior to July 2, 1987, must 482
724+maintain a minimum policyholder surplus of $1.75 million to 483
725+write insurance. After December 30, 1989, all underwriting 484
726+members, regardless of the date they were approved, must 485
727+maintain a minimum policyholder surplus of $2 million to write 486
728+insurance. Except for that portion of the paid -in capital and 487
729+surplus which shall be maintained in a security fund of an 488
730+exchange, the paid-in capital and surplus shall be invested by 489
731+an underwriting member in a manner consistent with ss. 625.301 -490
732+625.340. The portion of the paid -in capital and surplus in any 491
733+security fund of an exchange shall be inv ested in a manner 492
734+limited to investments for life insurance companies under the 493
735+Florida insurance laws. 494
736+ 23. Limitations on coverage written. — 495
737+ a. Limit of risk.—No underwriting member shall expose 496
738+itself to any loss on any one risk in an amount exceedin g 10 497
739+percent of its surplus to policyholders. Any risk or portion of 498
740+any risk which shall have been reinsured in an assuming 499
741+reinsurer authorized or approved to do such business in this 500
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750750 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
751751
752752
753753
754-after July 2, 1987, shall provide an initial paid -in capital and 501
755-surplus of $3 million and thereafter shall maintain a minimum 502
756-policyholder surplus of $2 million in order to be permitted to 503
757-write insurance. Underwriting members approved prior to July 2, 504
758-1987, shall maintain a minimum policyholder surplus of $1 505
759-million. After June 29, 1988, underwriting members approved 506
760-prior to July 2, 1987, must maintain a minimum policyholder 507
761-surplus of $1.5 million to write insurance. After June 29, 1989, 508
762-underwriting members approved prior to July 2, 1987, must 509
763-maintain a minimum policyholder surplus of $1.75 million to 510
764-write insurance. After December 30, 1989, all underwriting 511
765-members, regardless of the date they w ere approved, must 512
766-maintain a minimum policyholder surplus of $2 million to write 513
767-insurance. Except for that portion of the paid -in capital and 514
768-surplus which shall be maintained in a security fund of an 515
769-exchange, the paid-in capital and surplus shall be in vested by 516
770-an underwriting member in a manner consistent with ss. 625.301 -517
771-625.340. The portion of the paid -in capital and surplus in any 518
772-security fund of an exchange shall be invested in a manner 519
773-limited to investments for life insurance companies under the 520
774-Florida insurance laws. 521
775- 23. Limitations on coverage written. — 522
776- a. Limit of risk.—No underwriting member shall expose 523
777-itself to any loss on any one risk in an amount exceeding 10 524
778-percent of its surplus to policyholders. Any risk or portion of 525
754+state shall be deducted in determining the limitation of risk 501
755+prescribed in this section. 502
756+ b. Restrictions on premiums written. —If the office has 503
757+reason to believe that the underwriting member's ratio of actual 504
758+or projected annual gross written premiums to policyholder 505
759+surplus exceeds 8 to 1 or the underwriting member's rat io of 506
760+actual or projected annual net premiums to policyholder surplus 507
761+exceeds 4 to 1, the office may establish maximum gross or net 508
762+annual premiums to be written by the underwriting member 509
763+consistent with maintaining the ratios specified in this sub -510
764+subparagraph. 511
765+ (I) Projected annual net or gross premiums shall be based 512
766+on the actual writings to date for the underwriting member's 513
767+current calendar year, its writings for the previous calendar 514
768+year, or both. Ratios shall be computed on an annualized basis. 515
769+ (II) For purposes of this sub -subparagraph, the term 516
770+"gross written premiums" means direct premiums written and 517
771+reinsurance assumed. 518
772+ c. Surplus as to policyholders. —For the purpose of 519
773+determining the limitation on coverage written, surplus as to 520
774+policyholders shall be deemed to include any voluntary reserves, 521
775+or any part thereof, which are not required by or pursuant to 522
776+law and shall be determined from the last sworn statement of 523
777+such underwriting member with the office, or by the last report 524
778+or examination filed by the office, whichever is more recent at 525
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787787 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
788788
789789
790790
791-any risk which shall have been reinsured in an assuming 526
792-reinsurer authorized or approved to do such business in this 527
793-state shall be deducted in determining the limitation of risk 528
794-prescribed in this section. 529
795- b. Restrictions on premiums written. —If the office has 530
796-reason to believe that the underwriting member's ratio of actual 531
797-or projected annual gross written premiums to policyholder 532
798-surplus exceeds 8 to 1 or the underwriting member's ratio of 533
799-actual or projected annual net premiums to policyholder surplus 534
800-exceeds 4 to 1, the office may establish maximum gross or net 535
801-annual premiums to be written by the underwriting member 536
802-consistent with maintaining the ratios specified in this sub -537
803-subparagraph. 538
804- (I) Projected annual net or gross premiums shall be based 539
805-on the actual writings to date for the underwriting member's 540
806-current calendar year, its writings for the previous calendar 541
807-year, or both. Ratios shall be computed on an annualized basis. 542
808- (II) For purposes of this sub -subparagraph, the term 543
809-"gross written premiums" means direct premiums written and 544
810-reinsurance assumed. 545
811- c. Surplus as to policyholders. —For the purpose of 546
812-determining the limitation on coverage written, surplus as to 547
813-policyholders shall be deemed to include any voluntary reserves, 548
814-or any part thereof, which are not required by or pursuant to 549
815-law and shall be determined from the last sworn statement of 550
791+the time of assumption of such risk. 526
792+ 24. Unearned premium reserves. —An underwriting member must 527
793+at all times maintain an unearned premium reserve equal to 50 528
794+percent of the net written premiums of the subscribers on 529
795+policies having 1 year or less to run, and pro rata on those for 530
796+longer periods, except that all premiums on any marine or 531
797+transportation insurance trip risk shall be deemed unearned 532
798+until the trip is terminated. For the purpose of this 533
799+subparagraph, the term "net written premiums" means the premium 534
800+payments made by subscribers plus the premiums due from 535
801+subscribers, after deducting the amounts specifically provided 536
802+in the subscribers' agreements for expenses, including 537
803+reinsurance costs and fees paid to the attorney in fact, 538
804+provided that the power of attorney agreement contains an 539
805+explicit provision requiring the attorney in fact to refund any 540
806+unearned subscribers fees on a pro -rata basis for canceled 541
807+policies. If there is no such provision, the unearned premium 542
808+reserve shall be calculated without any adjustment for fees paid 543
809+to the attorney in fact. If the unearned premium reserves at any 544
810+time do not amount to $100,000, there shall be maintained on 545
811+deposit at the exchange at all times additi onal funds in cash or 546
812+eligible securities which, together with the unearned premium 547
813+reserves, equal $100,000. In calculating the foregoing reserves, 548
814+the amount of the attorney's bond, as filed with the office and 549
815+as required by s. 629.121, shall be include d in such reserves. 550
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824824 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
825825
826826
827827
828-such underwriting member with the office, or by the last report 551
829-or examination filed by the office, whichever is more recent at 552
830-the time of assumption of such risk. 553
831- 24. Unearned premium reserves. —An underwriting member must 554
832-at all times maintain an unearned premium reserve equal to 50 555
833-percent of the net written premiums of the subscribers on 556
834-policies having 1 year or less to run, and pro rata on those for 557
835-longer periods, except that all premiums on any marine or 558
836-transportation insurance trip risk shall be deemed unearned 559
837-until the trip is terminated. For the purpose of this 560
838-subparagraph, the term "net written premiums" means the premium 561
839-payments made by subscribers plus the premiums due from 562
840-subscribers, after deducting the amounts specifically provided 563
841-in the subscribers' agreements for expenses, including 564
842-reinsurance costs and fees paid to the attorney in fact, 565
843-provided that the power of attorney agreemen t contains an 566
844-explicit provision requiring the attorney in fact to refund any 567
845-unearned subscribers fees on a pro -rata basis for canceled 568
846-policies. If there is no such provision, the unearned premium 569
847-reserve shall be calculated without any adjustment for fe es paid 570
848-to the attorney in fact. If the unearned premium reserves at any 571
849-time do not amount to $100,000, there shall be maintained on 572
850-deposit at the exchange at all times additional funds in cash or 573
851-eligible securities which, together with the unearned pre mium 574
852-reserves, equal $100,000. In calculating the foregoing reserves, 575
828+If at any time the unearned premium reserves are less than the 551
829+foregoing requirements, the subscribers, or the attorney in 552
830+fact, shall advance funds to make up the deficiency. Such 553
831+advances shall only be repaid out of the surplus of the exchange 554
832+and only after receiving written approval from the office. 555
833+ 25. Loss reserves.—All underwriting members of an exchange 556
834+shall maintain loss reserves, including a reserve for incurred 557
835+but not reported claims. The reserves shall be subject to revie w 558
836+by the office, and, if loss experience shows that an 559
837+underwriting member's loss reserves are inadequate, the office 560
838+shall require the underwriting member to maintain loss reserves 561
839+in such additional amount as is needed to make them adequate. 562
840+ 26. Distribution of profits.—An underwriting member shall 563
841+not distribute any profits in the form of cash or other assets 564
842+to owners except out of that part of its available and 565
843+accumulated surplus funds which is derived from realized net 566
844+operating profits on its busi ness and realized capital gains. In 567
845+any one year such payments to owners shall not exceed 30 percent 568
846+of such surplus as of December 31 of the immediately preceding 569
847+year, unless otherwise approved by the office. No distribution 570
848+of profits shall be made that would render an underwriting 571
849+member either impaired or insolvent. 572
850+ 27. Stock dividends. —A stock dividend may be paid by an 573
851+underwriting member out of any available surplus funds in excess 574
852+of the aggregate amount of surplus advanced to the underwriting 575
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861861 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
862862
863863
864864
865-the amount of the attorney's bond, as filed with the office and 576
866-as required by s. 629.121, shall be included in such reserves. 577
867-If at any time the unearned premium reserves are less than the 578
868-foregoing requirements, the subscribers, or the attorney in 579
869-fact, shall advance funds to make up the deficiency. Such 580
870-advances shall only be repaid out of the surplus of the exchange 581
871-and only after receiving written approval from the office. 582
872- 25. Loss reserves.—All underwriting members of an exchange 583
873-shall maintain loss reserves, including a reserve for incurred 584
874-but not reported claims. The reserves shall be subject to review 585
875-by the office, and, if loss experience shows that an 586
876-underwriting member's lo ss reserves are inadequate, the office 587
877-shall require the underwriting member to maintain loss reserves 588
878-in such additional amount as is needed to make them adequate. 589
879- 26. Distribution of profits. —An underwriting member shall 590
880-not distribute any profits in t he form of cash or other assets 591
881-to owners except out of that part of its available and 592
882-accumulated surplus funds which is derived from realized net 593
883-operating profits on its business and realized capital gains. In 594
884-any one year such payments to owners shall not exceed 30 percent 595
885-of such surplus as of December 31 of the immediately preceding 596
886-year, unless otherwise approved by the office. No distribution 597
887-of profits shall be made that would render an underwriting 598
888-member either impaired or insolvent. 599
889- 27. Stock dividends.—A stock dividend may be paid by an 600
865+member under subparagraph 29. 576
866+ 28. Dividends from earned surplus. —A dividend otherwise 577
867+lawful may be payable out of an underwriting member's earned 578
868+surplus even though the total surplus of the underwriting member 579
869+is then less than the aggregate of its past contributed surplus 580
870+resulting from issuance of its capital stock at a price in 581
871+excess of the par value thereof. 582
872+ 29. Borrowing of money by underwriting members. — 583
873+ a. An underwriting member may borrow money to defray the 584
874+expenses of its organization, prov ide it with surplus funds, or 585
875+for any purpose of its business, upon a written agreement that 586
876+such money is required to be repaid only out of the underwriting 587
877+member's surplus in excess of that stipulated in such agreement. 588
878+The agreement may provide for int erest not exceeding 15 percent 589
879+simple interest per annum. The interest shall or shall not 590
880+constitute a liability of the underwriting member as to its 591
881+funds other than such excess of surplus, as stipulated in the 592
882+agreement. No commission or promotion expens e shall be paid in 593
883+connection with any such loan. The use of any surplus note and 594
884+any repayments thereof shall be subject to the approval of the 595
885+office. 596
886+ b. Money so borrowed, together with any interest thereon 597
887+if so stipulated in the agreement, shall not form a part of the 598
888+underwriting member's legal liabilities except as to its surplus 599
889+in excess of the amount thereof stipulated in the agreement, nor 600
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898898 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
899899
900900
901901
902-underwriting member out of any available surplus funds in excess 601
903-of the aggregate amount of surplus advanced to the underwriting 602
904-member under subparagraph 29. 603
905- 28. Dividends from earned surplus. —A dividend otherwise 604
906-lawful may be payable out of an underwriting member's earned 605
907-surplus even though the total surplus of the underwriting member 606
908-is then less than the aggregate of its past contributed surplus 607
909-resulting from issuance of its capital stock at a price in 608
910-excess of the par value thereof. 609
911- 29. Borrowing of money by underwriting members. — 610
912- a. An underwriting member may borrow money to defray the 611
913-expenses of its organization, provide it with surplus funds, or 612
914-for any purpose of its business, upon a written a greement that 613
915-such money is required to be repaid only out of the underwriting 614
916-member's surplus in excess of that stipulated in such agreement. 615
917-The agreement may provide for interest not exceeding 15 percent 616
918-simple interest per annum. The interest shall or shall not 617
919-constitute a liability of the underwriting member as to its 618
920-funds other than such excess of surplus, as stipulated in the 619
921-agreement. No commission or promotion expense shall be paid in 620
922-connection with any such loan. The use of any surplus note a nd 621
923-any repayments thereof shall be subject to the approval of the 622
924-office. 623
925- b. Money so borrowed, together with any interest thereon 624
926-if so stipulated in the agreement, shall not form a part of the 625
902+be the basis of any setoff; but until repayment, financial 601
903+statements filed or published by an underwritin g member shall 602
904+show as a footnote thereto the amount thereof then unpaid, 603
905+together with any interest thereon accrued but unpaid. 604
906+ 30. Liquidation, rehabilitation, and restrictions. —The 605
907+office, upon a showing that a member or associate broker of an 606
908+exchange has met one or more of the grounds contained in part I 607
909+of chapter 631, may restrict sales by type of risk, policy or 608
910+contract limits, premium levels, or policy or contract 609
911+provisions; increase surplus or capital requirements of 610
912+underwriting members; issu e cease and desist orders; suspend or 611
913+restrict a member's or associate broker's right to transact 612
914+business; place an underwriting member under conservatorship or 613
915+rehabilitation; or seek an order of liquidation as authorized by 614
916+part I of chapter 631. 615
917+ 31. Prohibited conduct.—The following acts by a member, 616
918+associate broker, or affiliated person shall constitute 617
919+prohibited conduct: 618
920+ a. Fraud. 619
921+ b. Fraudulent or dishonest acts committed by a member or 620
922+associate broker prior to admission to an exchange, if th e facts 621
923+and circumstances were not disclosed to the office upon 622
924+application to become a member or associate broker. 623
925+ c. Conduct detrimental to the welfare of an exchange. 624
926+ d. Unethical or improper practices or conduct, 625
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936936
937937
938938
939-underwriting member's legal liabilities except as to its su rplus 626
940-in excess of the amount thereof stipulated in the agreement, nor 627
941-be the basis of any setoff; but until repayment, financial 628
942-statements filed or published by an underwriting member shall 629
943-show as a footnote thereto the amount thereof then unpaid, 630
944-together with any interest thereon accrued but unpaid. 631
945- 30. Liquidation, rehabilitation, and restrictions. —The 632
946-office, upon a showing that a member or associate broker of an 633
947-exchange has met one or more of the grounds contained in part I 634
948-of chapter 631, may re strict sales by type of risk, policy or 635
949-contract limits, premium levels, or policy or contract 636
950-provisions; increase surplus or capital requirements of 637
951-underwriting members; issue cease and desist orders; suspend or 638
952-restrict a member's or associate broker's right to transact 639
953-business; place an underwriting member under conservatorship or 640
954-rehabilitation; or seek an order of liquidation as authorized by 641
955-part I of chapter 631. 642
956- 31. Prohibited conduct. —The following acts by a member, 643
957-associate broker, or affiliated person shall constitute 644
958-prohibited conduct: 645
959- a. Fraud. 646
960- b. Fraudulent or dishonest acts committed by a member or 647
961-associate broker prior to admission to an exchange, if the facts 648
962-and circumstances were not disclosed to the office upon 649
963-application to become a member or associate broker. 650
939+inconsistent with just and equitabl e principles of trade as set 626
940+forth in, but not limited to, ss. 626.951 -626.9641 and 626.973. 627
941+ e. Failure to use due diligence to ascertain the insurance 628
942+needs of a client or a principal. 629
943+ f. Misstatements made under oath or upon an application 630
944+for membership on an exchange. 631
945+ g. Failure to testify or produce documents when requested 632
946+by the office. 633
947+ h. Willful violation of any law of this state. 634
948+ i. Failure of an officer or principal to testify under 635
949+oath concerning a member, associate broker, or o ther person's 636
950+affairs as they relate to the operation of an exchange. 637
951+ j. Violation of the constitution and bylaws of the 638
952+exchange. 639
953+ 32. Penalties for participating in prohibited conduct. — 640
954+ a. The office may order the suspension of further 641
955+transaction of business on the exchange of any member or 642
956+associate broker found to have engaged in prohibited conduct. In 643
957+addition, any member or associate broker found to have engaged 644
958+in prohibited conduct may be subject to reprimand, censure, 645
959+and/or a fine not exceed ing $25,000 imposed by the office. 646
960+ b. Any member which has an affiliated person who is found 647
961+to have engaged in prohibited conduct shall be subject to 648
962+involuntary withdrawal or in addition thereto may be subject to 649
963+suspension, reprimand, censure, and/or a fine not exceeding 650
964964
965-CS/HB 951 2022
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972972 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
973973
974974
975975
976- c. Conduct detrimental to the welfare of an exchange. 651
977- d. Unethical or improper practices or conduct, 652
978-inconsistent with just and equitable principles of trade as set 653
979-forth in, but not limited to, ss. 626.951 -626.9641 and 626.973. 654
980- e. Failure to use due diligence to ascertain the insurance 655
981-needs of a client or a principal. 656
982- f. Misstatements made under oath or upon an application 657
983-for membership on an exchange. 658
984- g. Failure to testify or produce documents when re quested 659
985-by the office. 660
986- h. Willful violation of any law of this state. 661
987- i. Failure of an officer or principal to testify under 662
988-oath concerning a member, associate broker, or other person's 663
989-affairs as they relate to the operation of an exchange. 664
990- j. Violation of the constitution and bylaws of the 665
991-exchange. 666
992- 32. Penalties for participating in prohibited conduct. — 667
993- a. The office may order the suspension of further 668
994-transaction of business on the exchange of any member or 669
995-associate broker found to have enga ged in prohibited conduct. In 670
996-addition, any member or associate broker found to have engaged 671
997-in prohibited conduct may be subject to reprimand, censure, 672
998-and/or a fine not exceeding $25,000 imposed by the office. 673
999- b. Any member which has an affiliated pers on who is found 674
1000-to have engaged in prohibited conduct shall be subject to 675
976+$25,000. 651
977+ 33. Reduction of penalties. —Any suspension, reprimand, 652
978+censure, or fine may be remitted or reduced by the office on 653
979+such terms and conditions as are deemed fair and equitable. 654
980+ 34. Other offenses. —Any member or associate br oker that is 655
981+suspended shall be deprived, during the period of suspension, of 656
982+all rights and privileges of a member or of an associate broker 657
983+and may be proceeded against by the office for any offense 658
984+committed either before or after the date of suspension . 659
985+ 35. Reinstatement.—Any member or associate broker that is 660
986+suspended may be reinstated at any time on such terms and 661
987+conditions as the office may specify. 662
988+ 36. Remittance of fines. —Fines imposed under this section 663
989+shall be remitted to the office and sh all be paid into the 664
990+Insurance Regulatory Trust Fund. 665
991+ 37. Failure to pay fines. —When a member or associate 666
992+broker has failed to pay a fine for 15 days after it becomes 667
993+payable, such member or associate broker shall be suspended, 668
994+unless the office has gra nted an extension of time to pay such 669
995+fine. 670
996+ 38. Changes in ownership or assets. —In the event of a 671
997+major change in the ownership or a major change in the assets of 672
998+an underwriting member, the underwriting member shall report 673
999+such change in writing to the office within 30 days of the 674
1000+effective date thereof. The report shall set forth the details 675
10011001
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10041004
10051005
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10091009 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
10101010
10111011
10121012
1013-involuntary withdrawal or in addition thereto may be subject to 676
1014-suspension, reprimand, censure, and/or a fine not exceeding 677
1015-$25,000. 678
1016- 33. Reduction of penalties. —Any suspension, reprimand, 679
1017-censure, or fine may be remitted or reduced by the office on 680
1018-such terms and conditions as are deemed fair and equitable. 681
1019- 34. Other offenses. —Any member or associate broker that is 682
1020-suspended shall be deprived, during the period of suspension, of 683
1021-all rights and privileges of a member or of an associate broker 684
1022-and may be proceeded against by the office for any offense 685
1023-committed either before or after the date of suspension. 686
1024- 35. Reinstatement.—Any member or associate broker that is 687
1025-suspended may be reinstated at any time on such terms and 688
1026-conditions as the office may specify. 689
1027- 36. Remittance of fines. —Fines imposed under this section 690
1028-shall be remitted to the office and shall be paid into the 691
1029-Insurance Regulatory Trust Fund. 692
1030- 37. Failure to pay fine s.—When a member or associate 693
1031-broker has failed to pay a fine for 15 days after it becomes 694
1032-payable, such member or associate broker shall be suspended, 695
1033-unless the office has granted an extension of time to pay such 696
1034-fine. 697
1035- 38. Changes in ownership or asset s.—In the event of a 698
1036-major change in the ownership or a major change in the assets of 699
1037-an underwriting member, the underwriting member shall report 700
1013+of the change. Any change in ownership or assets of more than 5 676
1014+percent shall be considered a major change. 677
1015+ 39. Retaliation.— 678
1016+ a. When by or pursuant to the laws of any other state or 679
1017+foreign country any taxes, licenses, or other fees, in the 680
1018+aggregate, and any fines, penalties, deposit requirements, or 681
1019+other material obligations, prohibitions, or restrictions are or 682
1020+would be imposed upon an exchange or upon the a gents or 683
1021+representatives of such exchange which are in excess of such 684
1022+taxes, licenses, and other fees, in the aggregate, or which are 685
1023+in excess of such fines, penalties, deposit requirements, or 686
1024+other obligations, prohibitions, or restrictions directly 687
1025+imposed upon similar exchanges or upon the agents or 688
1026+representatives of such exchanges of such other state or country 689
1027+under the statutes of this state, so long as such laws of such 690
1028+other state or country continue in force or are so applied, the 691
1029+same taxes, licenses, and other fees, in the aggregate, or 692
1030+fines, penalties, deposit requirements, or other material 693
1031+obligations, prohibitions, or restrictions of whatever kind 694
1032+shall be imposed by the office upon the exchanges, or upon the 695
1033+agents or representatives of s uch exchanges, of such other state 696
1034+or country doing business or seeking to do business in this 697
1035+state. 698
1036+ b. Any tax, license, or other obligation imposed by any 699
1037+city, county, or other political subdivision or agency of a 700
10381038
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1039+HB 951 2022
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10411041
10421042
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10461046 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
10471047
10481048
10491049
1050-such change in writing to the office within 30 days of the 701
1051-effective date thereof. The report shall set forth the details 702
1052-of the change. Any change in ownership or assets of more than 5 703
1053-percent shall be considered a major change. 704
1054- 39. Retaliation.— 705
1055- a. When by or pursuant to the laws of any other state or 706
1056-foreign country any taxes, licenses, or other fees, in t he 707
1057-aggregate, and any fines, penalties, deposit requirements, or 708
1058-other material obligations, prohibitions, or restrictions are or 709
1059-would be imposed upon an exchange or upon the agents or 710
1060-representatives of such exchange which are in excess of such 711
1061-taxes, licenses, and other fees, in the aggregate, or which are 712
1062-in excess of such fines, penalties, deposit requirements, or 713
1063-other obligations, prohibitions, or restrictions directly 714
1064-imposed upon similar exchanges or upon the agents or 715
1065-representatives of such excha nges of such other state or country 716
1066-under the statutes of this state, so long as such laws of such 717
1067-other state or country continue in force or are so applied, the 718
1068-same taxes, licenses, and other fees, in the aggregate, or 719
1069-fines, penalties, deposit requirem ents, or other material 720
1070-obligations, prohibitions, or restrictions of whatever kind 721
1071-shall be imposed by the office upon the exchanges, or upon the 722
1072-agents or representatives of such exchanges, of such other state 723
1073-or country doing business or seeking to do b usiness in this 724
1074-state. 725
1050+state, jurisdiction, or foreign coun try on an exchange, or on 701
1051+the agents or representatives on an exchange, shall be deemed to 702
1052+be imposed by such state, jurisdiction, or foreign country 703
1053+within the meaning of sub -subparagraph a. 704
1054+ 40. Agents.— 705
1055+ a. Agents as defined in ss. 626.015 and 626.914(5) 626.914 706
1056+who are broker members or associate broker members of an 707
1057+exchange shall be allowed only to place on an exchange the same 708
1058+kind or kinds of business that the agent is licensed to place 709
1059+pursuant to Florida law. Direct Florida business as defined i n 710
1060+s. 626.916 or s. 626.917 shall be written through a broker 711
1061+member who is a surplus lines agent as defined in s. 626.914. 712
1062+The activities of each broker member or associate broker with 713
1063+regard to an exchange shall be subject to all applicable 714
1064+provisions of the insurance laws of this state, and all such 715
1065+activities shall constitute transactions under his or her 716
1066+license as an insurance agent for purposes of the Florida 717
1067+insurance law. 718
1068+ b. Premium payments and other requirements. —If an 719
1069+underwriting member has as sumed the risk as to a surplus lines 720
1070+coverage and if the premium therefor has been received by the 721
1071+surplus lines agent who placed such insurance, then in all 722
1072+questions thereafter arising under the coverage as between the 723
1073+underwriting member and the insured , the underwriting member 724
1074+shall be deemed to have received the premium due to it for such 725
10751075
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10831083 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
10841084
10851085
10861086
1087- b. Any tax, license, or other obligation imposed by any 726
1088-city, county, or other political subdivision or agency of a 727
1089-state, jurisdiction, or foreign country on an exchange, or on 728
1090-the agents or representatives on an exchange, shall b e deemed to 729
1091-be imposed by such state, jurisdiction, or foreign country 730
1092-within the meaning of sub -subparagraph a. 731
1093- 40. Agents.— 732
1094- a. Agents as defined in ss. 626.015 and 626.914(5) 626.914 733
1095-who are broker members or associate broker members of an 734
1096-exchange shall be allowed only to place on an exchange the same 735
1097-kind or kinds of business that the agent is licensed to place 736
1098-pursuant to Florida law. Direct Florida business as defined in 737
1099-s. 626.916 or s. 626.917 shall be written through a broker 738
1100-member who is a surplus lines agent as defined in s. 626.914. 739
1101-The activities of each broker member or associate broker with 740
1102-regard to an exchange shall be subject to all applicable 741
1103-provisions of the insurance laws of this state, and all such 742
1104-activities shall constitute tran sactions under his or her 743
1105-license as an insurance agent for purposes of the Florida 744
1106-insurance law. 745
1107- b. Premium payments and other requirements. —If an 746
1108-underwriting member has assumed the risk as to a surplus lines 747
1109-coverage and if the premium therefor has b een received by the 748
1110-surplus lines agent who placed such insurance, then in all 749
1111-questions thereafter arising under the coverage as between the 750
1087+coverage; and the underwriting member shall be liable to the 726
1088+insured as to losses covered by such insurance, and for unearned 727
1089+premiums which may become payable to the insured upon 728
1090+cancellation of such insurance, whether or not in fact the 729
1091+surplus lines agent is indebted to the underwriting member with 730
1092+respect to such insurance or for any other cause. 731
1093+ 41. Improperly issued contracts, riders, and 732
1094+endorsements.— 733
1095+ a. Any insurance policy, rider, or endorsement issued by 734
1096+an underwriting member and otherwise valid which contains any 735
1097+condition or provision not in compliance with the requirements 736
1098+of this section shall not be thereby rendered invalid, except as 737
1099+provided in s. 627.415, but shall be construed and applied in 738
1100+accordance with such conditions and provisions as would have 739
1101+applied had such policy, rider, or endorsement been in full 740
1102+compliance with this section. In the event an underwriting 741
1103+member issues or delivers an y policy for an amount which exceeds 742
1104+any limitations otherwise provided in this section, the 743
1105+underwriting member shall be liable to the insured or his or her 744
1106+beneficiary for the full amount stated in the policy in addition 745
1107+to any other penalties that may b e imposed. 746
1108+ b. Any insurance contract delivered or issued for delivery 747
1109+in this state governing a subject or subjects of insurance 748
1110+resident, located, or to be performed in this state which, 749
1111+pursuant to the provisions of this section, the underwriting 750
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11201120 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
11211121
11221122
11231123
1124-underwriting member and the insured, the underwriting member 751
1125-shall be deemed to have received the premium due to i t for such 752
1126-coverage; and the underwriting member shall be liable to the 753
1127-insured as to losses covered by such insurance, and for unearned 754
1128-premiums which may become payable to the insured upon 755
1129-cancellation of such insurance, whether or not in fact the 756
1130-surplus lines agent is indebted to the underwriting member with 757
1131-respect to such insurance or for any other cause. 758
1132- 41. Improperly issued contracts, riders, and 759
1133-endorsements.— 760
1134- a. Any insurance policy, rider, or endorsement issued by 761
1135-an underwriting member and otherwise valid which contains any 762
1136-condition or provision not in compliance with the requirements 763
1137-of this section shall not be thereby rendered invalid, except as 764
1138-provided in s. 627.415, but shall be construed and applied in 765
1139-accordance with such conditions and provisions as would have 766
1140-applied had such policy, rider, or endorsement been in full 767
1141-compliance with this section. In the event an underwriting 768
1142-member issues or delivers any policy for an amount which exceeds 769
1143-any limitations otherwise provided in this section, the 770
1144-underwriting member shall be liable to the insured or his or her 771
1145-beneficiary for the full amount stated in the policy in addition 772
1146-to any other penalties that may be imposed. 773
1147- b. Any insurance contract delivered or issued for delivery 774
1148-in this state governing a subject or subjects of insurance 775
1124+member may not lawfully insure under such a contract shall be 751
1125+cancelable at any time by the underwriting member, any provision 752
1126+of the contract to the contrary notwithstanding; and the 753
1127+underwriting member shall promptly cancel the contract in 754
1128+accordance with the request of the office therefor. No such 755
1129+illegality or cancellation shall be deemed to relieve the 756
1130+underwriting syndicate of any liability incurred by it under the 757
1131+contract while in force or to prohibit the underwriting 758
1132+syndicate from retaining the pro rat a earned premium thereon. 759
1133+This provision does not relieve the underwriting syndicate from 760
1134+any penalty otherwise incurred by the underwriting syndicate. 761
1135+ 42. Satisfaction of judgments. — 762
1136+ a. Every judgment or decree for the recovery of money 763
1137+heretofore or hereafter entered in any court of competent 764
1138+jurisdiction against any underwriting member shall be fully 765
1139+satisfied within 60 days from and after the entry thereof or, in 766
1140+the case of an appeal from such judgment or decree, within 60 767
1141+days from and after the a ffirmance of the judgment or decree by 768
1142+the appellate court. 769
1143+ b. If the judgment or decree is not satisfied as required 770
1144+under sub-subparagraph a., and proof of such failure to satisfy 771
1145+is made by filing with the office a certified transcript of the 772
1146+docket of the judgment or the decree together with a certificate 773
1147+by the clerk of the court wherein the judgment or decree remains 774
1148+unsatisfied, in whole or in part, after the time provided in 775
11491149
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1150+HB 951 2022
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11581158
11591159
11601160
1161-resident, located, or to be performed in this state which, 776
1162-pursuant to the provisions of this section, the underwriting 777
1163-member may not lawfully insure under such a contract shall be 778
1164-cancelable at any time by the underwriting member, any provision 779
1165-of the contract to the contrary notwithstanding; and the 780
1166-underwriting member shall promptly cancel the contract in 781
1167-accordance with the request of the office therefor. No such 782
1168-illegality or cancellation shall be de emed to relieve the 783
1169-underwriting syndicate of any liability incurred by it under the 784
1170-contract while in force or to prohibit the underwriting 785
1171-syndicate from retaining the pro rata earned premium thereon. 786
1172-This provision does not relieve the underwriting synd icate from 787
1173-any penalty otherwise incurred by the underwriting syndicate. 788
1174- 42. Satisfaction of judgments. — 789
1175- a. Every judgment or decree for the recovery of money 790
1176-heretofore or hereafter entered in any court of competent 791
1177-jurisdiction against any underwriting member shall be fully 792
1178-satisfied within 60 days from and after the entry thereof or, in 793
1179-the case of an appeal from such judgment or decree, within 60 794
1180-days from and after the affirmance of the judgment or decree by 795
1181-the appellate court. 796
1182- b. If the judgment or decree is not satisfied as required 797
1183-under sub-subparagraph a., and proof of such failure to satisfy 798
1184-is made by filing with the office a certified transcript of the 799
1185-docket of the judgment or the decree together with a certificate 800
1161+sub-subparagraph a., the office shall forthwith prohibit the 776
1162+underwriting member from transacting business. The office shall 777
1163+not permit such underwriting member to write any new business 778
1164+until the judgment or decree is wholly paid and satisfied and 779
1165+proof thereof is filed with the office under the official 780
1166+certificate of the cle rk of the court wherein the judgment was 781
1167+recovered, showing that the judgment or decree is satisfied of 782
1168+record, and until the expenses and fees incurred in the case are 783
1169+also paid by the underwriting syndicate. 784
1170+ 43. Tender and exchange offers. —No person shall conclude a 785
1171+tender offer or an exchange offer or otherwise acquire 5 percent 786
1172+or more of the outstanding voting securities of an underwriting 787
1173+member or controlling company or purchase 5 percent or more of 788
1174+the ownership of an underwriting member or contro lling company 789
1175+unless such person has filed with, and obtained the approval of, 790
1176+the office and sent to such underwriting member a statement 791
1177+setting forth: 792
1178+ a. The identity of, and background information on, each 793
1179+person by whom, or on whose behalf, the acqu isition is to be 794
1180+made; and, if the acquisition is to be made by or on behalf of a 795
1181+corporation, association, or trust, the identity of and 796
1182+background information on each director, officer, trustee, or 797
1183+other natural person performing duties similar to those of a 798
1184+director, officer, or trustee for the corporation, association, 799
1185+or trust. 800
11861186
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11941194 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
11951195
11961196
11971197
1198-by the clerk of the court wherein the judgment or decree remains 801
1199-unsatisfied, in whole or in part, after the time provided in 802
1200-sub-subparagraph a., the office shall forthwith prohibit the 803
1201-underwriting member from transacting business. The office shall 804
1202-not permit such underwriting member to write any new business 805
1203-until the judgment or decree is wholly paid and satisfied and 806
1204-proof thereof is filed with the office under the official 807
1205-certificate of the clerk of the court wherein the judgment was 808
1206-recovered, showing that the judgment or decree is satisfied of 809
1207-record, and until the expenses and fees incurred in the case are 810
1208-also paid by the underwriting syndicate. 811
1209- 43. Tender and exchange offers. —No person shall conclude a 812
1210-tender offer or an exchange offer or otherwise acquire 5 percent 813
1211-or more of the outstanding voting securities of an underwriting 814
1212-member or controlling company or purchase 5 percent or more of 815
1213-the ownership of an underwriting member or controlling company 816
1214-unless such person has filed with, and obtained the app roval of, 817
1215-the office and sent to such underwriting member a statement 818
1216-setting forth: 819
1217- a. The identity of, and background information on, each 820
1218-person by whom, or on whose behalf, the acquisition is to be 821
1219-made; and, if the acquisition is to be made by or on behalf of a 822
1220-corporation, association, or trust, the identity of and 823
1221-background information on each director, officer, trustee, or 824
1222-other natural person performing duties similar to those of a 825
1198+ b. The source and amount of the funds or other 801
1199+consideration used, or to be used, in making the acquisition. 802
1200+ c. Any plans or proposals which such person may have to 803
1201+liquidate such member, to sell its assets, or to merge or 804
1202+consolidate it. 805
1203+ d. The percentage of ownership which such person proposes 806
1204+to acquire and the terms of the offer or exchange, as the case 807
1205+may be. 808
1206+ e. Information as to any contracts, arrangements, or 809
1207+understandings with any party with respect to any securities of 810
1208+such member or controlling company, including, but not limited 811
1209+to, information relating to the transfer of any securities, 812
1210+option arrangements, or puts or calls or the giving or 813
1211+withholding of proxies, naming the party with whom such 814
1212+contract, arrangements, or understandings have been entered and 815
1213+giving the details thereof. 816
1214+ f. The office may disapprove any acquisition subject to 817
1215+the provisions of this subparagraph by any person or any 818
1216+affiliated person of such person who: 819
1217+ (I) Willfully violates this subparagraph; 820
1218+ (II) In violation of an order of the office issued 821
1219+pursuant to sub-subparagraph j., fails to divest himself or 822
1220+herself of any stock obtained in violation of this subparagraph, 823
1221+or fails to divest himself or herself of any direct or indirect 824
1222+control of such stock, within 25 days after such order; or 825
12231223
1224-CS/HB 951 2022
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12311231 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
12321232
12331233
12341234
1235-director, officer, or trustee for the corporation, association, 826
1236-or trust. 827
1237- b. The source and amount of the funds or other 828
1238-consideration used, or to be used, in making the acquisition. 829
1239- c. Any plans or proposals which such person may have to 830
1240-liquidate such member, to sell its assets, or to merge or 831
1241-consolidate it. 832
1242- d. The percentage of ownership which such person proposes 833
1243-to acquire and the terms of the offer or exchange, as the case 834
1244-may be. 835
1245- e. Information as to any contracts, arrangements, or 836
1246-understandings with any party with respect to any securities of 837
1247-such member or controlling company, including, but not limited 838
1248-to, information relating to the transfer of any securities, 839
1249-option arrangements, or puts or calls or the giving or 840
1250-withholding of proxies, naming the party with whom such 841
1251-contract, arrangements, or unde rstandings have been entered and 842
1252-giving the details thereof. 843
1253- f. The office may disapprove any acquisition subject to 844
1254-the provisions of this subparagraph by any person or any 845
1255-affiliated person of such person who: 846
1256- (I) Willfully violates this subparagraph ; 847
1257- (II) In violation of an order of the office issued 848
1258-pursuant to sub-subparagraph j., fails to divest himself or 849
1259-herself of any stock obtained in violation of this subparagraph, 850
1235+ (III) In violation of an order issued by the office 826
1236+pursuant to sub-subparagraph j., acquires additional stock of 827
1237+the underwriting member or controlling company, or direct or 828
1238+indirect control of such stock, without complying with this 829
1239+subparagraph. 830
1240+ g. The person or persons filing the statement required by 831
1241+this subparagraph have the burden of proof. The office shall 832
1242+approve any such acquisition if it finds, on the basis of the 833
1243+record made during any proceeding or on the basis of the filed 834
1244+statement if no proceeding is conducted, that: 835
1245+ (I) Upon completion of the acquisition, the underwriting 836
1246+member will be able to satisfy the requir ements for the approval 837
1247+to write the line or lines of insurance for which it is 838
1248+presently approved; 839
1249+ (II) The financial condition of the acquiring person or 840
1250+persons will not jeopardize the financial stability of the 841
1251+underwriting member or prejudice the in terests of its 842
1252+policyholders or the public; 843
1253+ (III) Any plan or proposal which the acquiring person has, 844
1254+or acquiring persons have, made: 845
1255+ (A) To liquidate the insurer, sell its assets, or merge or 846
1256+consolidate it with any person, or to make any other majo r 847
1257+change in its business or corporate structure or management; or 848
1258+ (B) To liquidate any controlling company, sell its assets, 849
1259+or merge or consolidate it with any person, or to make any major 850
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12701270
12711271
1272-or fails to divest himself or herself of any direct or indirect 851
1273-control of such stock, within 25 days after such order; or 852
1274- (III) In violation of an order issued by the office 853
1275-pursuant to sub-subparagraph j., acquires additional stock of 854
1276-the underwriting member or controlling company, or direct or 855
1277-indirect control of such stock, without complying with this 856
1278-subparagraph. 857
1279- g. The person or persons filing the statement required by 858
1280-this subparagraph have the burden of proof. The office shall 859
1281-approve any such acquisition if it finds, on the basis of the 860
1282-record made during any proceedi ng or on the basis of the filed 861
1283-statement if no proceeding is conducted, that: 862
1284- (I) Upon completion of the acquisition, the underwriting 863
1285-member will be able to satisfy the requirements for the approval 864
1286-to write the line or lines of insurance for which it is 865
1287-presently approved; 866
1288- (II) The financial condition of the acquiring person or 867
1289-persons will not jeopardize the financial stability of the 868
1290-underwriting member or prejudice the interests of its 869
1291-policyholders or the public; 870
1292- (III) Any plan or proposal whic h the acquiring person has, 871
1293-or acquiring persons have, made: 872
1294- (A) To liquidate the insurer, sell its assets, or merge or 873
1295-consolidate it with any person, or to make any other major 874
1296-change in its business or corporate structure or management; or 875
1272+change in its business or corporate structure or management 851
1273+which would have an effect upon the underwriting member 852
1274+ 853
1275+is fair and free of prejudice to the policyholders of the 854
1276+underwriting member or to the public; 855
1277+ (IV) The competence, experience, and integrity of those 856
1278+persons who will control directly or indirectly t he operation of 857
1279+the underwriting member indicate that the acquisition is in the 858
1280+best interest of the policyholders of the underwriting member 859
1281+and in the public interest; 860
1282+ (V) The natural persons for whom background information is 861
1283+required to be furnished pursuant to this subparagraph have such 862
1284+backgrounds as to indicate that it is in the best interests of 863
1285+the policyholders of the underwriting member, and in the public 864
1286+interest, to permit such persons to exercise control over such 865
1287+underwriting member; 866
1288+ (VI) The officers and directors to be employed after the 867
1289+acquisition have sufficient insurance experience and ability to 868
1290+assure reasonable promise of successful operation; 869
1291+ (VII) The management of the underwriting member after the 870
1292+acquisition will be compete nt and trustworthy and will possess 871
1293+sufficient managerial experience so as to make the proposed 872
1294+operation of the underwriting member not hazardous to the 873
1295+insurance-buying public; 874
1296+ (VIII) The management of the underwriting member after the 875
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13071307
13081308
1309- (B) To liquidate any controlling company, sell its assets, 876
1310-or merge or consolidate it with any person, or to make any major 877
1311-change in its business or corporate structure or management 878
1312-which would have an effect upon the underwriting member 879
1313- 880
1314-is fair and free of prej udice to the policyholders of the 881
1315-underwriting member or to the public; 882
1316- (IV) The competence, experience, and integrity of those 883
1317-persons who will control directly or indirectly the operation of 884
1318-the underwriting member indicate that the acquisition is in t he 885
1319-best interest of the policyholders of the underwriting member 886
1320-and in the public interest; 887
1321- (V) The natural persons for whom background information is 888
1322-required to be furnished pursuant to this subparagraph have such 889
1323-backgrounds as to indicate that it is in the best interests of 890
1324-the policyholders of the underwriting member, and in the public 891
1325-interest, to permit such persons to exercise control over such 892
1326-underwriting member; 893
1327- (VI) The officers and directors to be employed after the 894
1328-acquisition have suffic ient insurance experience and ability to 895
1329-assure reasonable promise of successful operation; 896
1330- (VII) The management of the underwriting member after the 897
1331-acquisition will be competent and trustworthy and will possess 898
1332-sufficient managerial experience so as to make the proposed 899
1333-operation of the underwriting member not hazardous to the 900
1309+acquisition will not include any person who has directly or 876
1310+indirectly through ownership, control, reinsurance transactions, 877
1311+or other insurance or business relations unlawfully manipulated 878
1312+the assets, accounts, finances, or books of any insurer or 879
1313+underwriting member or o therwise acted in bad faith with respect 880
1314+thereto; 881
1315+ (IX) The acquisition is not likely to be hazardous or 882
1316+prejudicial to the underwriting member's policyholders or the 883
1317+public; and 884
1318+ (X) The effect of the acquisition of control would not 885
1319+substantially lessen competition in insurance in this state or 886
1320+would not tend to create a monopoly therein. 887
1321+ h. No vote by the stockholder of record, or by any other 888
1322+person, of any security acquired in contravention of the 889
1323+provisions of this subparagraph is valid. Any acqui sition of any 890
1324+security contrary to the provisions of this subparagraph is 891
1325+void. Upon the petition of the underwriting member or 892
1326+controlling company, the circuit court for the county in which 893
1327+the principal office of such underwriting member is located may, 894
1328+without limiting the generality of its authority, order the 895
1329+issuance or entry of an injunction or other order to enforce the 896
1330+provisions of this subparagraph. There shall be a private right 897
1331+of action in favor of the underwriting member or controlling 898
1332+company to enforce the provisions of this subparagraph. No 899
1333+demand upon the office that it perform its functions shall be 900
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13431343
13441344
13451345
1346-insurance-buying public; 901
1347- (VIII) The management of the underwriting member after the 902
1348-acquisition will not include any person who has directly or 903
1349-indirectly through ownership, con trol, reinsurance transactions, 904
1350-or other insurance or business relations unlawfully manipulated 905
1351-the assets, accounts, finances, or books of any insurer or 906
1352-underwriting member or otherwise acted in bad faith with respect 907
1353-thereto; 908
1354- (IX) The acquisition is n ot likely to be hazardous or 909
1355-prejudicial to the underwriting member's policyholders or the 910
1356-public; and 911
1357- (X) The effect of the acquisition of control would not 912
1358-substantially lessen competition in insurance in this state or 913
1359-would not tend to create a monopo ly therein. 914
1360- h. No vote by the stockholder of record, or by any other 915
1361-person, of any security acquired in contravention of the 916
1362-provisions of this subparagraph is valid. Any acquisition of any 917
1363-security contrary to the provisions of this subparagraph is 918
1364-void. Upon the petition of the underwriting member or 919
1365-controlling company, the circuit court for the county in which 920
1366-the principal office of such underwriting member is located may, 921
1367-without limiting the generality of its authority, order the 922
1368-issuance or entry of an injunction or other order to enforce the 923
1369-provisions of this subparagraph. There shall be a private right 924
1370-of action in favor of the underwriting member or controlling 925
1346+required as a prerequisite to any suit by the underwriting 901
1347+member or controlling company against any other person, and in 902
1348+no case shall the office be deemed a necessary party to any 903
1349+action by such underwriting member or controlling company to 904
1350+enforce the provisions of this subparagraph. Any person who 905
1351+makes or proposes an acquisition requiring the filing of a 906
1352+statement pursuant to this subparag raph, or who files such a 907
1353+statement, shall be deemed to have thereby designated the Chief 908
1354+Financial Officer as such person's agent for service of process 909
1355+under this subparagraph and shall thereby be deemed to have 910
1356+submitted himself or herself to the admini strative jurisdiction 911
1357+of the office and to the jurisdiction of the circuit court. 912
1358+ i. Any approval by the office under this subparagraph does 913
1359+not constitute a recommendation by the office for an 914
1360+acquisition, tender offer, or exchange offer. It is unlawful for 915
1361+a person to represent that the office's approval constitutes a 916
1362+recommendation. A person who violates the provisions of this 917
1363+sub-subparagraph is guilty of a felony of the third degree, 918
1364+punishable as provided in s. 775.082, s. 775.083, or s. 775.084. 919
1365+The statute-of-limitations period for the prosecution of an 920
1366+offense committed under this sub -subparagraph is 5 years. 921
1367+ j. Upon notification to the office by the underwriting 922
1368+member or a controlling company that any person or any 923
1369+affiliated person of such pe rson has acquired 5 percent or more 924
1370+of the outstanding voting securities of the underwriting member 925
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13821382
1383-company to enforce the provisions of this subparagraph. No 926
1384-demand upon the office t hat it perform its functions shall be 927
1385-required as a prerequisite to any suit by the underwriting 928
1386-member or controlling company against any other person, and in 929
1387-no case shall the office be deemed a necessary party to any 930
1388-action by such underwriting member o r controlling company to 931
1389-enforce the provisions of this subparagraph. Any person who 932
1390-makes or proposes an acquisition requiring the filing of a 933
1391-statement pursuant to this subparagraph, or who files such a 934
1392-statement, shall be deemed to have thereby designat ed the Chief 935
1393-Financial Officer as such person's agent for service of process 936
1394-under this subparagraph and shall thereby be deemed to have 937
1395-submitted himself or herself to the administrative jurisdiction 938
1396-of the office and to the jurisdiction of the circuit co urt. 939
1397- i. Any approval by the office under this subparagraph does 940
1398-not constitute a recommendation by the office for an 941
1399-acquisition, tender offer, or exchange offer. It is unlawful for 942
1400-a person to represent that the office's approval constitutes a 943
1401-recommendation. A person who violates the provisions of this 944
1402-sub-subparagraph is guilty of a felony of the third degree, 945
1403-punishable as provided in s. 775.082, s. 775.083, or s. 775.084. 946
1404-The statute-of-limitations period for the prosecution of an 947
1405-offense committed under this sub -subparagraph is 5 years. 948
1406- j. Upon notification to the office by the underwriting 949
1407-member or a controlling company that any person or any 950
1383+or controlling company without complying with the provisions of 926
1384+this subparagraph, the office shall order that the person and 927
1385+any affiliated person of such person cease acquisition of any 928
1386+further securities of the underwriting member or controlling 929
1387+company; however, the person or any affiliated person of such 930
1388+person may request a proceeding, which proceeding shall be 931
1389+convened within 7 days after the rendering of the order for the 932
1390+sole purpose of determining whether the person, individually or 933
1391+in connection with any affiliated person of such person, has 934
1392+acquired 5 percent or more of the outstanding voting securities 935
1393+of an underwriting member or controlling comp any. Upon the 936
1394+failure of the person or affiliated person to request a hearing 937
1395+within 7 days, or upon a determination at a hearing convened 938
1396+pursuant to this sub -subparagraph that the person or affiliated 939
1397+person has acquired voting securities of an underwrit ing member 940
1398+or controlling company in violation of this subparagraph, the 941
1399+office may order the person and affiliated person to divest 942
1400+themselves of any voting securities so acquired. 943
1401+ k.(I) The office shall, if necessary to protect the public 944
1402+interest, suspend or revoke the certificate of authority of any 945
1403+underwriting member or controlling company: 946
1404+ (A) The control of which is acquired in violation of this 947
1405+subparagraph; 948
1406+ (B) That is controlled, directly or indirectly, by any 949
1407+person or any affiliated perso n of such person who, in violation 950
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14171417
14181418
14191419
1420-affiliated person of such person has acquired 5 percent or more 951
1421-of the outstanding voting securi ties of the underwriting member 952
1422-or controlling company without complying with the provisions of 953
1423-this subparagraph, the office shall order that the person and 954
1424-any affiliated person of such person cease acquisition of any 955
1425-further securities of the underwriti ng member or controlling 956
1426-company; however, the person or any affiliated person of such 957
1427-person may request a proceeding, which proceeding shall be 958
1428-convened within 7 days after the rendering of the order for the 959
1429-sole purpose of determining whether the person , individually or 960
1430-in connection with any affiliated person of such person, has 961
1431-acquired 5 percent or more of the outstanding voting securities 962
1432-of an underwriting member or controlling company. Upon the 963
1433-failure of the person or affiliated person to request a hearing 964
1434-within 7 days, or upon a determination at a hearing convened 965
1435-pursuant to this sub -subparagraph that the person or affiliated 966
1436-person has acquired voting securities of an underwriting member 967
1437-or controlling company in violation of this subparagraph, the 968
1438-office may order the person and affiliated person to divest 969
1439-themselves of any voting securities so acquired. 970
1440- k.(I) The office shall, if necessary to protect the public 971
1441-interest, suspend or revoke the certificate of authority of any 972
1442-underwriting member or controlling company: 973
1443- (A) The control of which is acquired in violation of this 974
1444-subparagraph; 975
1420+of this subparagraph, has obtained control of an underwriting 951
1421+member or controlling company; or 952
1422+ (C) That is controlled, directly or indirectly, by any 953
1423+person who, directly or indirectly, controls any other person 954
1424+who, in violation of this subparagraph, acquires control of an 955
1425+underwriting member or controlling company. 956
1426+ (II) If any underwriting member is subject to suspension 957
1427+or revocation pursuant to sub -sub-subparagraph (I), the 958
1428+underwriting member shall be deemed to be in such condition, or 959
1429+to be using or to have been subject to such methods or practices 960
1430+in the conduct of its business, as to render its further 961
1431+transaction of insurance presently or prospectively hazardous to 962
1432+its policyholders, creditors, or stockholder s or to the public. 963
1433+ l.(I) For the purpose of this sub -sub-subparagraph, the 964
1434+term "affiliated person" of another person means: 965
1435+ (A) The spouse of such other person; 966
1436+ (B) The parents of such other person and their lineal 967
1437+descendants and the parents of su ch other person's spouse and 968
1438+their lineal descendants; 969
1439+ (C) Any person who directly or indirectly owns or 970
1440+controls, or holds with power to vote, 5 percent or more of the 971
1441+outstanding voting securities of such other person; 972
1442+ (D) Any person 5 percent or mor e of the outstanding voting 973
1443+securities of which are directly or indirectly owned or 974
1444+controlled, or held with power to vote, by such other person; 975
14451445
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14551455
14561456
1457- (B) That is controlled, directly or indirectly, by any 976
1458-person or any affiliated person of such person who, in violation 977
1459-of this subparagraph, has obtaine d control of an underwriting 978
1460-member or controlling company; or 979
1461- (C) That is controlled, directly or indirectly, by any 980
1462-person who, directly or indirectly, controls any other person 981
1463-who, in violation of this subparagraph, acquires control of an 982
1464-underwriting member or controlling company. 983
1465- (II) If any underwriting member is subject to suspension 984
1466-or revocation pursuant to sub -sub-subparagraph (I), the 985
1467-underwriting member shall be deemed to be in such condition, or 986
1468-to be using or to have been subject to such methods or practices 987
1469-in the conduct of its business, as to render its further 988
1470-transaction of insurance presently or prospectively hazardous to 989
1471-its policyholders, creditors, or stockholders or to the public. 990
1472- l.(I) For the purpose of this sub -sub-subparagraph, the 991
1473-term "affiliated person" of another person means: 992
1474- (A) The spouse of such other person; 993
1475- (B) The parents of such other person and their lineal 994
1476-descendants and the parents of such other person's spouse and 995
1477-their lineal descendants; 996
1478- (C) Any person who directly or indirectly owns or 997
1479-controls, or holds with power to vote, 5 percent or more of the 998
1480-outstanding voting securities of such other person; 999
1481- (D) Any person 5 percent or more of the outstanding voting 1000
1457+ (E) Any person or group of persons who directly or 976
1458+indirectly control, are controlled by, or are under commo n 977
1459+control with such other person; or any officer, director, 978
1460+partner, copartner, or employee of such other person; 979
1461+ (F) If such other person is an investment company, any 980
1462+investment adviser of such company or any member of an advisory 981
1463+board of such company ; 982
1464+ (G) If such other person is an unincorporated investment 983
1465+company not having a board of directors, the depositor of such 984
1466+company; or 985
1467+ (H) Any person who has entered into an agreement, written 986
1468+or unwritten, to act in concert with such other person in 987
1469+acquiring or limiting the disposition of securities of an 988
1470+underwriting member or controlling company. 989
1471+ (II) For the purposes of this section, the term 990
1472+"controlling company" means any corporation, trust, or 991
1473+association owning, directly or indirectly, 25 perc ent or more 992
1474+of the voting securities of one or more underwriting members. 993
1475+ m. The commission may adopt, amend, or repeal rules that 994
1476+are necessary to implement the provisions of this subparagraph, 995
1477+pursuant to chapter 120. 996
1478+ 44. Background information. —The information as to the 997
1479+background and identity of each person about whom information is 998
1480+required to be furnished pursuant to sub -subparagraph 43.a. 999
1481+shall include, but shall not be limited to: 1000
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14901490 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
14911491
14921492
14931493
1494-securities of which are directly or indir ectly owned or 1001
1495-controlled, or held with power to vote, by such other person; 1002
1496- (E) Any person or group of persons who directly or 1003
1497-indirectly control, are controlled by, or are under common 1004
1498-control with such other person; or any officer, director, 1005
1499-partner, copartner, or employee of such other person; 1006
1500- (F) If such other person is an investment company, any 1007
1501-investment adviser of such company or any member of an advisory 1008
1502-board of such company; 1009
1503- (G) If such other person is an unincorporated investment 1010
1504-company not having a board of directors, the depositor of such 1011
1505-company; or 1012
1506- (H) Any person who has entered into an agreement, written 1013
1507-or unwritten, to act in concert with such other person in 1014
1508-acquiring or limiting the disposition of securities of an 1015
1509-underwriting member or controlling company. 1016
1510- (II) For the purposes of this section, the term 1017
1511-"controlling company" means any corporation, trust, or 1018
1512-association owning, directly or indirectly, 25 percent or more 1019
1513-of the voting securities of one or more underwriting memb ers. 1020
1514- m. The commission may adopt, amend, or repeal rules that 1021
1515-are necessary to implement the provisions of this subparagraph, 1022
1516-pursuant to chapter 120. 1023
1517- 44. Background information. —The information as to the 1024
1518-background and identity of each person about wh om information is 1025
1494+ a. Such person's occupations, positions of employment, and 1001
1495+offices held during the past 10 years. 1002
1496+ b. The principal business and address of any business, 1003
1497+corporation, or other organization in which each such office was 1004
1498+held or in which such occupation or position of employment was 1005
1499+carried on. 1006
1500+ c. Whether, at any tim e during such 10-year period, such 1007
1501+person was convicted of any crime other than a traffic 1008
1502+violation. 1009
1503+ d. Whether, during such 10 -year period, such person has 1010
1504+been the subject of any proceeding for the revocation of any 1011
1505+license and, if so, the nature of su ch proceeding and the 1012
1506+disposition thereof. 1013
1507+ e. Whether, during such 10 -year period, such person has 1014
1508+been the subject of any proceeding under the federal Bankruptcy 1015
1509+Act or whether, during such 10 -year period, any corporation, 1016
1510+partnership, firm, trust, or a ssociation in which such person 1017
1511+was a director, officer, trustee, partner, or other official has 1018
1512+been subject to any such proceeding, either during the time in 1019
1513+which such person was a director, officer, trustee, partner, or 1020
1514+other official, or within 12 mon ths thereafter. 1021
1515+ f. Whether, during such 10 -year period, such person has 1022
1516+been enjoined, either temporarily or permanently, by a court of 1023
1517+competent jurisdiction from violating any federal or state law 1024
1518+regulating the business of insurance, securities, or ba nking, or 1025
15191519
1520-CS/HB 951 2022
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15221522
15231523
15241524 CODING: Words stricken are deletions; words underlined are additions.
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1526+Page 42 of 44
15271527 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
15281528
15291529
15301530
1531-required to be furnished pursuant to sub -subparagraph 43.a. 1026
1532-shall include, but shall not be limited to: 1027
1533- a. Such person's occupations, positions of employment, and 1028
1534-offices held during the past 10 years. 1029
1535- b. The principal business and ad dress of any business, 1030
1536-corporation, or other organization in which each such office was 1031
1537-held or in which such occupation or position of employment was 1032
1538-carried on. 1033
1539- c. Whether, at any time during such 10 -year period, such 1034
1540-person was convicted of any crime other than a traffic 1035
1541-violation. 1036
1542- d. Whether, during such 10 -year period, such person has 1037
1543-been the subject of any proceeding for the revocation of any 1038
1544-license and, if so, the nature of such proceeding and the 1039
1545-disposition thereof. 1040
1546- e. Whether, during such 10-year period, such person has 1041
1547-been the subject of any proceeding under the federal Bankruptcy 1042
1548-Act or whether, during such 10 -year period, any corporation, 1043
1549-partnership, firm, trust, or association in which such person 1044
1550-was a director, officer, trustee, par tner, or other official has 1045
1551-been subject to any such proceeding, either during the time in 1046
1552-which such person was a director, officer, trustee, partner, or 1047
1553-other official, or within 12 months thereafter. 1048
1554- f. Whether, during such 10 -year period, such person has 1049
1555-been enjoined, either temporarily or permanently, by a court of 1050
1531+from carrying out any particular practice or practices in the 1026
1532+course of the business of insurance, securities, or banking, 1027
1533+together with details of any such event. 1028
1534+ 45. Security fund.—All underwriting members shall be 1029
1535+members of the security fun d of any exchange. 1030
1536+ 46. Underwriting member defined. —Whenever the term 1031
1537+"underwriting member" is used in this subsection, it shall be 1032
1538+construed to mean "underwriting syndicate." 1033
1539+ 47. Offsets.—Any action, requirement, or constraint 1034
1540+imposed by the office sh all reduce or offset similar actions, 1035
1541+requirements, or constraints of any exchange. 1036
1542+ 48. Restriction on member ownership. — 1037
1543+ a. Investments existing prior to July 2, 1987. —The 1038
1544+investment in any member by brokers, agents, and intermediaries 1039
1545+transacting business on the exchange, and the investment in any 1040
1546+such broker, agent, or intermediary by any member, directly or 1041
1547+indirectly, shall in each case be limited in the aggregate to 1042
1548+less than 20 percent of the total investment in such member, 1043
1549+broker, agent, or int ermediary, as the case may be. After 1044
1550+December 31, 1987, the aggregate percent of the total investment 1045
1551+in such member by any broker, agent, or intermediary and the 1046
1552+aggregate percent of the total investment in any such broker, 1047
1553+agent, or intermediary by any m ember, directly or indirectly, 1048
1554+shall not exceed 15 percent. After June 30, 1988, such aggregate 1049
1555+percent shall not exceed 10 percent and after December 31, 1988, 1050
15561556
1557-CS/HB 951 2022
1557+HB 951 2022
15581558
15591559
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15611561 CODING: Words stricken are deletions; words underlined are additions.
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1563+Page 43 of 44
15641564 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
15651565
15661566
15671567
1568-competent jurisdiction from violating any federal or state law 1051
1569-regulating the business of insurance, securities, or banking, or 1052
1570-from carrying out any particular practice or practices in t he 1053
1571-course of the business of insurance, securities, or banking, 1054
1572-together with details of any such event. 1055
1573- 45. Security fund.—All underwriting members shall be 1056
1574-members of the security fund of any exchange. 1057
1575- 46. Underwriting member defined. —Whenever the term 1058
1576-"underwriting member" is used in this subsection, it shall be 1059
1577-construed to mean "underwriting syndicate." 1060
1578- 47. Offsets.—Any action, requirement, or constraint 1061
1579-imposed by the office shall reduce or offset similar actions, 1062
1580-requirements, or constraints of any exchange. 1063
1581- 48. Restriction on member ownership. — 1064
1582- a. Investments existing prior to July 2, 1987. —The 1065
1583-investment in any member by brokers, agents, and intermediaries 1066
1584-transacting business on the exchange, and the investment in any 1067
1585-such broker, agent, or intermediary by any member, directly or 1068
1586-indirectly, shall in each case be limited in the aggregate to 1069
1587-less than 20 percent of the total investment in such member, 1070
1588-broker, agent, or intermediary, as the case may be. After 1071
1589-December 31, 1987, the aggregate percent of the total investment 1072
1590-in such member by any b roker, agent, or intermediary and the 1073
1591-aggregate percent of the total investment in any such broker, 1074
1592-agent, or intermediary by any member, directly or indirectly, 1075
1568+such aggregate percent shall not exceed 5 percent. 1051
1569+ b. Investments arising on or after July 2, 1987.—The 1052
1570+investment in any underwriting member by brokers, agents, or 1053
1571+intermediaries transacting business on the exchange, and the 1054
1572+investment in any such broker, agent, or intermediary by any 1055
1573+underwriting member, directly or indirectly, shall in each cas e 1056
1574+be limited in the aggregate to less than 5 percent of the total 1057
1575+investment in such underwriting member, broker, agent, or 1058
1576+intermediary. 1059
1577+ 49. "Underwriting manager" defined. —"Underwriting manager" 1060
1578+as used in this subparagraph includes any person, partner ship, 1061
1579+corporation, or organization providing any of the following 1062
1580+services to underwriting members of the exchange: 1063
1581+ a. Office management and allied services, including 1064
1582+correspondence and secretarial services. 1065
1583+ b. Accounting services, including bookkeepi ng and 1066
1584+financial report preparation. 1067
1585+ c. Investment and banking consultations and services. 1068
1586+ d. Underwriting functions and services including the 1069
1587+acceptance, rejection, placement, and marketing of risk. 1070
1588+ 50. Prohibition of underwriting manager investment. —Any 1071
1589+direct or indirect investment in any underwriting manager by a 1072
1590+broker member or any affiliated person of a broker member or any 1073
1591+direct or indirect investment in a broker member by an 1074
1592+underwriting manager or any affiliated person of an underwriting 1075
15931593
1594-CS/HB 951 2022
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15961596
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16011601 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
16021602
16031603
16041604
1605-shall not exceed 15 percent. After June 30, 1988, such aggregate 1076
1606-percent shall not exceed 10 p ercent and after December 31, 1988, 1077
1607-such aggregate percent shall not exceed 5 percent. 1078
1608- b. Investments arising on or after July 2, 1987. —The 1079
1609-investment in any underwriting member by brokers, agents, or 1080
1610-intermediaries transacting business on the exchange, and the 1081
1611-investment in any such broker, agent, or intermediary by any 1082
1612-underwriting member, directly or indirectly, shall in each case 1083
1613-be limited in the aggregate to less than 5 percent of the total 1084
1614-investment in such underwriting member, broker, agent, or 1085
1615-intermediary. 1086
1616- 49. "Underwriting manager" defined. —"Underwriting manager" 1087
1617-as used in this subparagraph includes any person, partnership, 1088
1618-corporation, or organization providing any of the following 1089
1619-services to underwriting members of the exchange: 1090
1620- a. Office management and allied services, including 1091
1621-correspondence and secretarial services. 1092
1622- b. Accounting services, including bookkeeping and 1093
1623-financial report preparation. 1094
1624- c. Investment and banking consultations and services. 1095
1625- d. Underwriting functions and services including the 1096
1626-acceptance, rejection, placement, and marketing of risk. 1097
1627- 50. Prohibition of underwriting manager investment. —Any 1098
1628-direct or indirect investment in any underwriting manager by a 1099
1629-broker member or any affiliated person of a broker memb er or any 1100
1630-
1631-CS/HB 951 2022
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1633-
1634-
1635-CODING: Words stricken are deletions; words underlined are additions.
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1638-F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1639-
1640-
1641-
1642-direct or indirect investment in a broker member by an 1101
1643-underwriting manager or any affiliated person of an underwriting 1102
1644-manager is prohibited. "Affiliated person" for purposes of this 1103
1645-subparagraph is defined in subparagraph 43. 1104
1646- 51. An underwriting member may not accept reinsurance on 1105
1647-an assumed basis from an affiliate or a controlling company, nor 1106
1648-may a broker member or management company place reinsurance from 1107
1649-an affiliate or controlling company of theirs with an 1108
1650-underwriting member. "Affiliate and controlling company" for 1109
1651-purposes of this subparagraph is defined in subparagraph 43. 1110
1652- 52. Premium defined. —"Premium" is the consideration for 1111
1653-insurance, by whatever name called. Any "assessment" or any 1112
1654-"membership," "policy," "survey," "inspection," "service" fee or 1113
1655-charge or similar fee or charge in consideration for an 1114
1656-insurance contract is deemed part of the premium. 1115
1657- 53. Rules.—The commission shall adopt rules necessary for 1116
1658-or as an aid to the effectuation of any provision of this 1117
1659-section. 1118
1660- Section 7. This act shall take effect July 1, 2022. 1119
1605+manager is prohibited. "Affiliated person" for purposes of this 1076
1606+subparagraph is defined in subparagraph 43. 1077
1607+ 51. An underwriting member may not accept reinsurance on 1078
1608+an assumed basis from an affiliate or a controlling company, nor 1079
1609+may a broker member or management company place reinsurance from 1080
1610+an affiliate or controlling company of theirs with an 1081
1611+underwriting member. "Affiliate and controlling company" for 1082
1612+purposes of this subparagraph is defined in subpara graph 43. 1083
1613+ 52. Premium defined. —"Premium" is the consideration for 1084
1614+insurance, by whatever name called. Any "assessment" or any 1085
1615+"membership," "policy," "survey," "inspection," "service" fee or 1086
1616+charge or similar fee or charge in consideration for an 1087
1617+insurance contract is deemed part of the premium. 1088
1618+ 53. Rules.—The commission shall adopt rules necessary for 1089
1619+or as an aid to the effectuation of any provision of this 1090
1620+section. 1091
1621+ Section 7. This act shall take effect July 1, 2022. 1092