Florida Senate Bill S1158 Analysis / Analysis

                    The Florida Senate 
BILL ANALYSIS AND FISCAL IMPACT STATEMENT 
(This document is based on the provisions contained in the legislation as of the latest date listed below.) 
Prepared By: The Professional Staff of the Committee on Fiscal Policy  
 
BILL: CS/CS/CS/SB 1158 
INTRODUCER:  Fiscal Policy Committee, Appropriations Committee on Agriculture, Environment, and 
General Government, Banking and Insurance Committee and Senator DiCeglie 
SUBJECT:  Department of Financial Services 
DATE: April 21, 2023 
 
 ANALYST STAFF DIRECTOR  REFERENCE  	ACTION 
1. Thomas Knudson BI Fav/CS 
2. Sanders Betta AEG  Fav/CS 
3. Thomas Yeatman FP Fav/CS 
 
Please see Section IX. for Additional Information: 
COMMITTEE SUBSTITUTE - Substantial Changes 
 
I. Summary: 
CS/CS/CS/SB 1158 revises provisions of multiple programs within the Department of Financial 
Services (DFS) to: 
 Amend provisions regarding investigations and prosecutions within the regulatory authority 
of the DFS; 
 Add the State College System to the State Deferred Compensation Program; 
 Revise provisions relating to the Workers’ Compensation Three Member Panel; 
 Ratify three DFS rules relating to the Florida Workers’ Compensation Law; 
 Revises definitions relating to the regulation of funeral, cemetery, and consumer services; 
 Establish guidelines for board member requirements where the Chief Financial Officer 
(CFO) has sole appointment authority; 
 Provide that insurers pay for mediation of motor vehicle mediation claims;  
 Create a Direct Support Organization to facilitate and promote firefighter safety;  
 Revise financial requirements for warranty associations; 
 Revise the role of reinsurance intermediaries to an appointment instead of a license; and 
 Revise provisions relating to bail bond agents and agencies; remove authority for temporary 
bail bond agents. 
 
The bill has an indeterminate, yet insignificant impact on state government revenues and 
expenditures. See Section V. Fiscal Impact Statement. 
REVISED:   BILL: CS/CS/CS/SB 1158   	Page 2 
 
 
The bill becomes effective upon becoming a law, except as otherwise provided. 
II. Present Situation: 
Powers and Duties of the Department of Financial Services 
The organizational structure of the Department of Financial Services (DFS) is set forth in 
s. 20.121, F.S. The DFS is statutorily responsible for: 
 Carrying out the state’s accounting and auditing functions, including preparing the state’s 
Comprehensive Annual Financial Report; monitoring state contracts; and making payment 
for state expenditures. 
 Implementing state fire prevention and control measures, including the investigation of arson 
and other suspicious fires; training and certification of firefighter candidates; and regulation 
of explosive storage and use. 
 Operating the state’s risk management program and securing insurance and reinsurance for 
covered state liabilities. 
 Managing the state Treasury and directing safekeeping and the investment of all state funds. 
 Managing the deferred compensation program for state employees. 
 Investigating fraud, including insurance fraud, public assistance fraud, and false claims 
against the state. 
 Regulating cemeteries and funeral homes. 
 Licensing and oversight of insurance agents and agencies. 
 Ensuring that Florida employers provide workers’ compensation coverage for their 
employees in a cost effective manner. 
 Assisting consumers in the resolution of issues pertaining to insurance and funeral services. 
 Collecting and returning unclaimed property belonging to Florida residents.
1
 
 
The DFS is composed of the following thirteen divisions: 
 Accounting and Auditing; 
 Administration; 
 Consumer Services; 
 Funeral, Cemetery, and Consumer Services; 
 Insurance Agent and Agency Services; 
 Investigative and Forensic Services; 
 Public Assistance Fraud; 
 Rehabilitation and Liquidation; 
 Risk Management; 
 State Fire Marshal; 
 Treasury; 
 Unclaimed Property; and  
                                                
1
 Florida Department of Financial Services, Statement of Agency Organization and Operation, 
https://www.myfloridacfo.com/required/agency-org (last visited March 28, 2023).  BILL: CS/CS/CS/SB 1158   	Page 3 
 
 Workers’ Compensation.
2
 
 
Division of Investigative and Forensic Services 
The Division of Investigative and Forensic Services (DIFS) functions as a criminal justice 
agency for purposes of ss. 943.045-943.08, F.S., and is authorized to conduct investigations 
within or outside of Florida, as necessary. The DIFS includes the following office and bureaus: 
 The Bureau of Forensic Services; 
 The Bureau of Fire, Arson, and Explosives Investigations; 
 The Office of Fiscal Integrity; 
 The Bureau of Insurance Fraud; and 
 The Bureau of Workers’ Compensation Fraud. 
 
DIFS encompasses all enforcement and forensic components within the DFS, investigating a 
wide range of fraudulent and criminal acts including: 
 Insurance fraud investigations; 
 Workers’ compensation fraud investigations; 
 Fire, arson, and explosives investigations; 
 Theft/misuse of state funds; and 
 Fire and explosives sample analysis.
3
 
 
Strategic Markets Research and Assessments Unit  
Subsection 20.121(6), F.S., establishes the Strategic Markets Research and Assessments Unit and 
charges the Chief Financial Officer (CFO), or designee, with reporting quarterly to the Cabinet, 
President of the Senate, and Speaker of the House of Representatives on the status of the state’s 
financial services markets. The report must include a summary of the issues, trends, and threats 
that broadly impact the condition of the financial services industries and institutions. The CFO is 
also responsible for submitting findings and recommendations regarding regulatory and policy 
changes with the report. 
 
Florida Deferred Compensation Program 
Section 112.215, F.S., requires the CFO to create a deferred compensation plan (plan) for 
employees of state agencies, the State University System, the State Board of Administration, and 
other special district employers (subject to employer election). The plan allows state employees 
to defer a portion of their income and place it in an investment account. The employee does not 
pay taxes on the deferred amount or any investment gains until the employee withdraws the 
money.
4
  
 
                                                
2
 Florida Department of Financial Services, Divisions and Offices https://www.myfloridacfo.com/ (last visited 
March 28, 2023). 
3
 Department of Financial Services, Investigative and Forensic Services, About the Division, 
https://myfloridacfo.com/Division/DIFS/ (last visited March 28, 2023). 
4
 See https://www.myfloridacfo.com/DeferredComp/ (last visited March 28, 2023).  BILL: CS/CS/CS/SB 1158   	Page 4 
 
The Deferred Compensation Advisory Council (Council) provides assistance and 
recommendations to the CFO relating to the provisions of the plan, the insurance or investment 
options to be offered under the plan, and any other contracts or appointments deemed necessary. 
The Council is composed of seven members. 
 One member appointed by the Speaker of the House of Representatives and the President of 
the Senate jointly, who is an employee of the legislative branch; 
 One member appointed by the Chief Justice of the Supreme Court, who is an employee of the 
judicial branch; 
 One member appointed by the chair of the Public Employees Relations Commission, who is 
a nonexempt public employee; 
 One member appointed by the Chancellor of the State University System, who is an 
employee of the university system;  
 One member appointed by the CFO, who is an employee of the CFO; 
 One member appointed by the Governor, who is an employee of the executive branch; and 
 One member appointed by the Executive Director of the State Board of Administration, who 
is an employee of the State Board of Administration. 
 
Annual Report on Economic Impact of a 1-in-100-Year Hurricane 
In 2008, the Legislature created section 215.55952, F.S., requiring the DFS to provide a report 
on the economic impact on the state of a 1-in-100-year hurricane to the Governor, the President 
of the Senate, and the Speaker of the House of Representatives by March 1 of each year.
5
 The 
report is to include: 
 An estimate of the short-term and long-term fiscal impacts of such a storm on Citizens 
Property Insurance Corporation, the Florida Hurricane Catastrophe Fund, the private 
insurance and reinsurance markets, the state economy, and the state debt; 
 An analysis of the average premium increase to fund a 1-in-100-year hurricane event and list 
the average cost, in both a percentage and dollar amount, impact to consumers on a county-
level basis; and 
 Recommendations for preparing for such a hurricane and reducing the economic impact of 
such a hurricane on the state. 
 
In preparing the report, the DFS is charged with coordinating with OIR, Citizens Property 
Insurance Corporation, the Florida Hurricane Catastrophe Fund, the Florida Commission on 
Hurricane Loss Projection Methodology, the State Board of Administration, the Office of 
Economic and Demographic Research, and other state agencies. 
 
The DFS has reported difficulty in obtaining the expertise to develop the report and the high cost 
to prepare the report. 
 
Tangible Personal Property Owned by Local Governments 
Chapter 274, F.S., governs tangible personal property owned by local governments. The CFO is 
charged with establishing by rule the requirements for the recording and periodic review of such 
property for inventory purposes. Tangible personal property includes all goods of value capable 
                                                
5
 Section 21, ch. 2008-66, L.O.F.  BILL: CS/CS/CS/SB 1158   	Page 5 
 
of manual possession and whose chief value is intrinsic to the article itself.
6
 “Governmental unit” 
means the governing board, commission or authority of a county or taxing district of the state or 
the sheriff of the county.
7
   
 
Workers’ Compensation 
Workers’ Compensation Maximum Reimbursement Allowances 
The Division of Workers’ Compensation within the DFS provides regulatory oversight of 
Florida’s workers’ compensation system, which includes the enforcement of coverage 
requirements,
8
 administration of workers’ compensation health care delivery system,
9
 data 
collection,
10
 and assisting injured workers, employers, insurers, and providers in fulfilling their 
responsibilities under ch. 440, F.S.
11
 Whether an employer is required to have workers’ 
compensation insurance depends upon the employer’s industry and the number of employees. 
Employers may secure coverage by purchasing a workers’ compensation insurance policy or 
qualifying as a self-insurer.
12
 Individuals who elect an exemption are not considered 
“employees,” for premium calculation purposes, and are not eligible to receive workers’ 
compensation benefits if they suffer a workplace injury. Florida’s workers’ compensation law 
provides for medically necessary treatment and care of injured employees, including 
medications. The law provides reimbursement formulas and methodologies to compensate 
providers of health services, subject to maximum reimbursement allowances (MRAs).  
 
A three-member panel (panel), consisting of the CFO or the CFO’s designee and two Governor’s 
appointees, sets the MRAs.
13
 The DFS incorporates the statewide schedules of the MRAs by rule 
in reimbursement manuals. In establishing the MRA manuals, the panel considers the usual and 
customary levels of reimbursement for treatment, services, and care;
14
 the cost impact to 
employers for providing reimbursement that ensures that injured workers have access to 
necessary medical care;
15
 and the financial impact of the MRAs on healthcare providers and 
facilities; Florida law requires the panel to develop MRA manuals that are reasonable, promote 
the workers’ compensation system’s healthcare cost containment and efficiency, and are 
sufficient to ensure that medically necessary treatment is available for injured workers.
16
 
 
The panel develops four different reimbursement manuals to determine statewide schedules of 
maximum reimbursement allowances. The healthcare provider manual limits the maximum 
reimbursement for licensed physicians to 110 percent of Medicare reimbursement,
17
 while 
reimbursement for surgical procedures is limited to 140 percent of Medicare.
18
 The hospital 
                                                
6
 Section 192.001(11)(d), F.S. 
7
 Section 274.01(1), F.S. 
8
 Section 440.107(3), F.S. 
9
 Section 440.13, F.S. 
10
 Section 440.185 and 440.593, F.S. 
11
 Section 440.191, F.S. 
12
 Section 440.38, F.S. 
13
 Section 440.13(12)(a), F.S. 
14
 Section 440.13(12)(d)1., F.S. 
15
 Section 440.13(12)(d)2., F.S. 
16
 Section 440.13(12)(d)3., F.S. 
17
 Section 440.13(12)(b)4., F.S. 
18
 Section 440.13(12)(b)5., F.S.  BILL: CS/CS/CS/SB 1158   	Page 6 
 
manual sets maximum reimbursement for outpatient scheduled surgeries at 60 percent of usual 
and customary charges,
19
 while other outpatient services are limited to 75 percent of usual and 
customary charges.
20
 Reimbursement of inpatient hospital care is limited based on a schedule of 
per diem rates approved by the panel.
21
 The ambulatory surgical centers manual limits 
reimbursement to 60 percent of usual and customary charge as such services are generally 
scheduled outpatient surgeries. The prescription drug reimbursement manual limits 
reimbursement to the average wholesale price plus a $4.18 dispensing fee.
22
 Repackaged or 
relabeled prescription medication dispensed by a dispensing practitioner has a maximum 
reimbursement of 112.5 percent of the average wholesale price plus an $8.00 dispensing fee.
23
 
Fees may not exceed the schedules adopted under ch. 440, F.S., and DFS rule.
24
 
 
Rulemaking Authority and Legislative Ratification  
A rule is an “agency statement of general applicability that implements, interprets, or prescribes 
law or policy.”
25
 Rulemaking authority is delegated by the Legislature in law to an agency, and 
authorizes an agency to adopt, develop, establish, or otherwise create a rule.
26
 An agency may 
not engage in rulemaking unless it has a legislative grant of authority to do so.
27
 The statutory 
authority for rulemaking must be specific enough to guide an agency’s rulemaking and an 
agency rule must not exceed the bounds of authority granted by the Legislature.
28
 
 
Prior to the adoption, amendment, or repeal of any rule, an agency must file a notice of the 
proposed rule in the Florida Administrative Register.
29
 The notice of the proposed rule must 
include:  
 An explanation of the purpose and effect; 
 The specific legal authority for the rule;  
 The full text of the rule; and
 
 
 A summary of the agency’s statement of estimated regulatory costs (SERC), if one is 
prepared.
30
  
 
Within 21 days of the notice, the public may provide an agency with information regarding the 
SERC or provide proposals for a lower cost alternative to the rule.
31
  
 
                                                
19
 Section 440.13(12)(b)3., F.S. 
20
 Section 440.13(12)(a), F.S. 
21
 Section 440.13(12)(a), F.S. 
22
 Section 440.13(12)(c), F.S. 
23
 Id. 
24
 Section 440.13(13)(b), F.S. The DFS also has broad rulemaking authority under s. 440.591, F.S. 
25
 Section 120.52(16), F.S. 
26
 Section 120.52(17), F.S. 
27
 See ss. 120.52(8) and 120.536, F.S. 
28
 See Sloban v. Florida Board of Pharmacy, 982 So.2d 26 (Fla. 1st DCA 2008) and Southwest Florida Water Management 
District v. Save the Manatee Club, Inc., 773 So.2d 594 (Fla 1st DCA 2000). 
29
 See ss. 120.54(3)(a)1., F.S. 
30
 Id. 
31
 See ss. 120.54(3)(a)1., and 120.541(1)(a), F.S.  BILL: CS/CS/CS/SB 1158   	Page 7 
 
SERC Requirements 
Agencies must prepare the SERC for a rule that has an adverse impact on small businesses or 
that increases regulatory costs more than $200,000 within one year after implementation of the 
rule.
32
  
 
A SERC must include estimates of:  
 The number of people and entities effected by the proposed rule;  
 The cost to the agency and other governmental entities to implement the proposed rule;  
 Transactional costs likely to be incurred by people, entities, and governmental agencies for 
compliance; and 
 An analysis of the proposed rule’s impact on small businesses, counties, and cities.
33
  
 
The SERC must also include an economic analysis on the likelihood that the proposed rule will 
have an adverse impact in excess of one million dollars within the first five years of 
implementation on:  
 Economic growth, private-sector job creation or employment, or private-sector investment;  
 Business competitiveness,
34
 productivity, or innovation; or 
 Regulatory costs, including any transactional costs.
35
  
 
If the economic analysis results in an adverse impact or regulatory costs in excess of one million 
dollars within five years after implementation of the rule, then the Legislature must ratify the rule 
in order for it to take effect.
36
  
 
The Legislature previously ratified Rule 69L-7.020, Florida Administrative Code, which 
incorporates by reference the 2016 Edition of the Florida Workers’ Compensation Health Care 
Provider Manual, providing for reimbursement of healthcare providers under the increased 
MRAs approved by the panel.
37
 The DFS has subsequently adopted amended versions of the 
rule, incorporating by reference the manual. The National Council on Compensation Insurance, 
Inc., (NCCI) estimates that the manual will increase workers’ compensation system costs by 
0.2 percent (eight million dollars).
38
 According to the SERC, the revisions to the MRAs in the 
updated manual are projected to result in increased costs to the workers’ compensation system of 
eight million dollars over the next five years.
39
 
 
                                                
32
 Section 120.541(1)(a), F.S. 
33
 Section 120.541(2)(b)-(e), F.S. A small city has an unincarcerated population of 10,000 or less. A small county has an 
unincarcerated population of 75,000 or less. A small business employs less than 200 people, and has a net worth of $5 million 
or less.  
34
 Business competitiveness includes the ability of those doing business in Florida to compete with those doing business in 
other states or domestic markets. 
35
 Section 120.541(2)(a), F.S. 
36
 Section 120.541(3), F.S. Legislative ratification is not required for adoption of federal standards, amendments to the Florida 
Building Code, or amendments to the Florida Fire Prevention Code. See s. 120.541(4), F.S. 
37
 Chapter 2019-139, L.O.F. 
38
 National Council on Compensation Insurance, Inc., Analysis of Florida Medical Fee Schedule Changes Proposed to be 
Effective July 1, 2021 (Nov. 16, 2020) (on file with the Senate Committee on Banking and Insurance). 
39
 Florida Department of Financial Services, Statement of Estimated Regulatory Costs Rule 69L-7.020, F.A.C. (Nov. 2021) 
(on file with the Senate Committee on Banking and Insurance).  BILL: CS/CS/CS/SB 1158   	Page 8 
 
The DFS has also promulgated two additional rules that meet the threshold for legislative 
ratification. These are: 
 Rule 69L-7.730, Florida Administrative Code, titled “Health Care Provider Medical Billing 
and Reporting Responsibilities”; and 
 Rule 7.740, Florida Administrative Code, titled “Insurer Authorization and Medical Bill 
Review Responsibilities”. 
 
According to the SERC for these rules, the impact is projected to result in increased costs to the 
workers’ compensation system of $8.6 million over each of the next five years.
40
 
 
Because the SERC for these rules exceeds one million dollars within five years of adoption, 
legislative ratification is required for these rules to become effective, pursuant to 
s. 120.541(3), F.S. 
 
Funeral, Cemetery, and Consumer Services 
Chapter 497, F.S., known as the Florida Funeral, Cemetery, and Consumer Services Act (the 
Act), generally regulates funeral and cemetery services.
41
 The Act authorizes the Board of 
Funeral, Cemetery, and Consumer Services within the Department of Financial Services to 
regulate cemeteries, columbaria, cremation services and practices, cemetery companies, dealers 
and monument builders, funeral directors, and funeral establishments.
42
  
 
Section 497.005(9), F.S., defines the term “burial service” or “service” to mean “any service 
offered or provided in connection with the final disposition, memorialization, interment, 
entombment, or inurnment of human remains or cremated remains. 
 
Section 497.005(61), F.S., defines the term “preneed contract” to mean “any arrangement or 
method, of which the provider of funeral merchandise or services has actual knowledge, whereby 
any person agrees to furnish funeral merchandise or service in the future. 
 
The terms “preneed” and “transportation protection agreement” are not defined. 
 
Health Care Ministry 
A health care sharing ministry is an alternative to health insurance through which people of 
similar ethical or religious beliefs assist each other in paying for health care. Some health care 
sharing ministries act as a clearinghouse to allow one or more members to directly pay the 
medical expenses of another member. Other health care sharing ministries receive funds from 
members and use those funds to pay authorized medical expenses when members request 
payment. The first health care sharing ministry was established in 1981.
43
 
 
                                                
40
 Florida Department of Financial Services, Statement of Estimated Regulatory Costs Rule 69L-7.730 and 69L-7.740, F.A.C. 
(Feb. 2018) (on file with the Senate Committee on Banking and Insurance). 
41
 See Section 497.001, F.S. 
42
 Sections 497.101 and 497.103, F.S.  
43
 See Benjamin Boyd, Health Care Sharing Ministries: Scam or Solution, 26 J.L. & Health 219, 229 (2013).  BILL: CS/CS/CS/SB 1158   	Page 9 
 
The Florida Insurance Code exempts such a ministry, referred to as a “nonprofit religious 
organization,”
44
 from the code’s provisions governing health insurers if the ministry meets 
several criteria set forth in the code. Since 2008, Florida law has expressly exempted health care 
sharing ministries that meet statutory criteria from being regulated as insurers. Specifically, a 
health care sharing ministry qualifies as a “nonprofit religious organization” that is exempt from 
the requirements of Florida’s insurance code if it: 
 Qualifies under federal law as tax-exempt; 
 Limits its participants to members who share a common set of ethical or religious beliefs; 
 Acts as an organizational clearinghouse for information between participants who have 
financial, physical, or medical needs and participants who have the ability to pay for the 
benefit of those participants who have financial, physical, or medical needs; 
 Provides for the financial or medical needs of a participant through payments directly from 
one participant to another participant; and 
 Suggests amounts that participants may voluntarily give with no assumption of risk or 
promise to pay among the participants or between the participants.
45
 
 
Though the code exempts qualified ministries from its requirements of insurers, it nonetheless 
regulates these ministries in a limited sense. Particularly, the code requires each ministry to give 
prospective participants notice that it is not an insurer and that it is not subject to regulation 
under the insurance code.
46
 Moreover, the code expressly states that it “does not prevent” an 
organization from limiting the financial or medical needs that may be eligible for payment or 
from canceling the membership of a participant when such participant indicates his or her 
unwillingness to participate by failing to meet the conditions of membership for a period in 
excess of 60 days.
47
  
 
Division of Insurance Agents and Agencies 
Chapter 626, F.S., governs the regulation of insurance field representatives, navigators, insurance 
administrators, unauthorized insurers and surplus lines, viatical settlements, structured 
settlements, and operations.
48
 The powers and duties of the CFO and the DFS in part I of 
ch. 626, F.S., apply only with respect to insurance agents, insurance agencies, managing general 
agents, insurance adjusters, reinsurance intermediaries, viatical settlement brokers, customer 
representatives, service representatives, and agencies.
49
 Further, the DFS has jurisdiction to 
enforce provisions of parts VIII and IX of ch. 626, F.S., with respect to persons engaged in 
actions for which a license issued by the DFS is required.
50
 The powers and duties of the 
                                                
44
 The more descriptive and widely used term “health care sharing ministry” will continue to be used generally throughout 
this analysis for continuity and to avoid confusion. 
45
 See s. 624.1265(1), F.S. 
46
 Section 624.1265(3), F.S. 
47
 Section 624.1265(2), F.S. 
48
 This includes licensing and other requirements (part I), general lines agents (part II), life insurance agents (part III), health 
insurance agents (part IV), title insurance agents (part V), insurance adjusters (part VI), insurance administrators (part VII), 
and viatical settlements (part X). 
49
 Section 626.016(1), F.S. 
50
 Section 626.016(3), F.S.  BILL: CS/CS/CS/SB 1158   	Page 10 
 
Financial Service Commission and the Office of Insurance Regulation (OIR)
 51
 specified in part I 
apply only with respect to service companies, insurance administrators, and viatical settlement 
providers and contracts.
52
 The OIR has jurisdiction to enforce provisions of parts VIII and IX of 
ch. 626, F.S., with respect to persons who engage in actions for which a license or certificate of 
authority issued by the OIR is required.
53
 However, s. 626.016, F.S., is not intended to limit the 
authority of the DFS and the Division of Investigative and Forensic Services within the DFS, as 
specified in s. 626.989, F.S. 
 
The Division of Insurance Agent and Agency Services licenses and appoints individuals and 
entities authorized to transact insurance in Florida as provided in s. 626.016, F.S. Further, the 
Division receives and reviews applications for insurance licenses and oversees the examination, 
licensing, and continuing education of licensees. The Division also conducts investigations of 
alleged violations of the Florida Insurance Code and refers suspected criminal violations of the 
Florida Insurance Code to the Division's Bureau of Insurance Fraud within the DFS or other law 
enforcement agencies as appropriate.
54
 
 
Insurance Field Representatives and Operations 
For purposes of part I of ch. 626, F.S.,
55
 “association” is defined to include the Florida 
Association of Insurance Agents (FAIA), the National Association of Insurance and Financial 
Advisors (NAIFA), the Florida Association of Health Underwriters (FAHU), the Latin American 
Association of Insurance Agencies (LAAIA), the Florida Association of Public Insurance 
Adjusters (FAPIA), the Florida Bail Agents Association (FBAA), or the Professional Bail 
Agents of the United States (PBUS).
56
  
 
Fingerprints for Background Checks 
The Florida Insurance Code authorizes the DFS to investigate any applicant or licensee, and 
further states that licensing statutes, which require an evaluation of an applicant’s character or 
fitness must include the submission of fingerprints for a national criminal records check.
57
 
Applicants and licensees submit fingerprints to the Florida Department of Law Enforcement 
(FDLE), which forwards the fingerprints to the Federal Bureau of Investigations (FBI) for a 
federal background check.
58
 The federal check is conducted through the FBI, which manages a 
criminal history record information (CHRI) system, through which this information can be 
obtained. The purpose of the CHRI system is to assure criminal history record information, 
wherever it appears, is collected, stored, and disseminated in a manner to ensure the accuracy, 
completeness, currency, integrity, and security of such information and to protect individual 
privacy.
59
 
                                                
51
 Pursuant to s. 20.121(3), F.S., the Office of Insurance Regulation is an office within the Financial Services Commission 
(FSC). The FSC is composed of the Governor, the Attorney General, the CFO, and the Commissioner of Agriculture. The 
FSC members serve as the agency head for purposes of rulemaking under ss. 120.536-120.565, F.S. 
52
 Section 626.016(2), F.S. 
53
 Sections 626.016(3), F.S. 
54
 Sections 624.307, 624.317, and 624.321, F.S. 
55
 Referred to as the “Licensing Procedures Law.” Section 626.011, F.S. 
56
 Section 626.015(5), F.S. 
57
 Section 626.201, F.S. 
58
 Section 624.34, F.S. 
59
 28 C.F.R. s. 20.1  BILL: CS/CS/CS/SB 1158   	Page 11 
 
 
Federal law authorizes the exchange of CHRI with officials of state and local governmental 
agencies for licensing and employment purposes.
60
 However, this access can only be authorized 
by a state statute, which has been subsequently approved by the Attorney General of the United 
States. The FBI processes fingerprints only if the criteria established by the U.S. Department of 
Justice has been satisfied. To satisfy federal law, a state licensing statute must identify the 
specific categories of licenses that require the submission of fingerprints as part of an application 
and expressly state the applicant’s fingerprints will be submitted to the FBI or submitted for a 
national criminal records background check. 
 
Insurance Agency Closure 
Section 626.173, F.S., provides for the closure of an insurance agency and related responsibilities 
of the insurance agency when closing or ceasing to transact business for more than 30 days. 
Within 35 days after the agency first ceases to transact insurance, the agency owner or an officer 
listed on the original application for licensure must: 
 Cancel the insurance agency’s license by notifying the DFS by the submission of completed 
form prescribed by the DFS; 
 Notify all insurers with whom the agency or agent in charge are appointed, that the agency 
operations have ceased, the date operations ceased, the identity of any agent or agency to 
whom the agency’s current book of business has been transferred, and the method by which 
the agency records may be obtained during the time stipulated in ss. 626.748 and 
626.561, F.S.; 
 Notify all policyholders currently insured by a policy written, produced, or serviced by the 
agency that the agency has ceased operations, the date the operations ceased and the identity 
of the agency or agent to whom the agency’s current book of business was transferred. If no 
transfer has occurred, notification should direct the policyholder to contact the insurance 
company that will assist the policyholder in locating a licensed agent to service the policy;  
 Notify all premium finance companies through which active policies are financed, that the 
agency has ceased operations, the date operations ceased and the identity of the agent or 
agency to whom the agency’s current book of business has been transferred; and 
 Ensure all funds held in a fiduciary capacity are distributed to the rightful owners. 
 
The section provides that in a proceeding initiated pursuant to ch. 120, F.S., the DFS may impose 
an administrative fine against the agent in charge or director or officer found in the proceeding to 
have violated any provision of this section. A proceeding may not be initiated and a fine may not 
accrue until after the person has been notified in writing of the nature of the violation, has been 
afforded 10 business days to correct the violation, and has failed to do so. Fines imposed 
pursuant to this section may not exceed the amounts specified in s. 626.681, F.S., per violation. 
Further, the DFS may also suspend or revoke the license of a licensee fined pursuant to this 
section. The section provides factors for the DFS to consider when determining the 
appropriateness of the penalty. 
 
                                                
60
 Pub. L. 92-544.  BILL: CS/CS/CS/SB 1158   	Page 12 
 
Penalties Against Licensees; Rulemaking Authority 
 
Section 626.207, F.S., provides for the disqualification of applicants and licensees, penalties 
against licensees, rulemaking authority for the DFS. The DFS must adopt rules that establish 
specific penalties against licensees for violations of the licensure laws under the DFS. The 
purpose of any revocation or suspension is to provide a sufficient penalty to deter future 
violations of the Florida Insurance Code and must be based on the type of conduct and the 
probability that likelihood to commit further illegal conduct. The length of a suspension may be 
adjusted based on aggravating or mitigating factors. 
 
Insurance Adjuster Licensure Examination 
An adjuster is an individual employed by an insurer to evaluate losses and settle policyholder 
claims.
61
 An adjuster may be licensed as either an “all-lines adjuster” or a “public adjuster.”
62
 An 
all-lines adjuster “is a person who, for money, commission, or any other thing of value, directly 
or indirectly undertakes on behalf of a public adjuster or an insurer to ascertain and determine the 
amount of any claim, loss, or damage payable under an insurance contract or undertakes to effect 
settlement of such claim, loss, or damage.”
63
 Subject to certain exceptions, a public adjuster is 
someone that is paid by an insured to prepare and file a claim against his or her insurer.
64
 
 
Among other requirements, an applicant must pass an examination to obtain an adjuster’s 
license; however, the examination requirement is waived if the applicant has attained certain 
professional designations that document their successful completion of professional education 
coursework. An examination is not required for all-lines adjuster applicants that obtains certain 
specified professional designations.
65
 The DFS must approve the curriculum, which must include 
comprehensive analysis of basic property and casualty lines of insurance and testing at least 
equal to that of standard the DFS testing for the all-lines adjuster license.
66
  
 
Continuing Education Requirements 
Pursuant to s. 626.2815, F.S., individuals licensed to engage in the sale of insurance or 
adjustment of insurance claims in Florida are required to fulfill certain continuing education 
requirements. Currently, licensees, except title insurance agents, are required to complete a 
four-hour update course every two years, specific to the license they hold.
67
 Unless otherwise 
provided, licensees must also complete 20 hours of elective continuing education courses every 
two years.
68
 If a licensee has been licensed for six years or more, this requirement drops to 
16 hours.
69
 For a licensee licensed 25 years or more, and is a chartered life underwriter, is a 
chartered property and casualty underwriter, or has a Bachelor of Science degree in risk 
                                                
61
 Insurance Information Institute. I.I.I. Glossary (defining “adjuster”), https://www.iii.org/resource-center/iii-glossary/A (last 
visited March 28, 2023). 
62
 Section 626.864, F.S. 
63
 Sections 626.015 and 626.8548, F.S. 
64
 Section 626.854(1), F.S. 
65
 Section 626.221, F.S. 
66
 Section 626.221(2)(j), F.S. 
67
 Section 626.2815(3), F.S.  
68
 Section 626.2815(3)(a), F.S.  
69
 Section 626.2815(3)(b), F.S.   BILL: CS/CS/CS/SB 1158   	Page 13 
 
management or insurance with evidence of 18 or more semester hours in insurance-related 
courses, the elective continuing education course requirement is six hours every two years.
70
 For 
those individuals holding a license as a customer representative, and not a licensed life or health 
agent, the elective continuing education course requirement is also six hours every two years.
71
 
An individual subject to ch. 648, F.S., relating to bail bond agents, is required to complete a 
four-hour update course and a minimum of ten hours of elective continuing education courses 
every two years.
72
 
 
If continuing education requirements are not met, the DFS has the authority to immediately 
terminate or refuse to renew the appointment of an agent or adjuster, following notification from 
the DFS, unless an extension or waiver has been granted.
73
 
 
Limited Licenses and Registration 
The DFS is charged with issuing a license to a qualified applicant as an agent authorized to 
transact a limited class of business in any of the following categories of limited lines insurance: 
 Motor vehicle physical damage and mechanical breakdown insurance. 
 Industrial fire insurance or burglary insurance. 
 Travel insurance. 
 Motor vehicle rental insurance. 
 Credit insurance. 
 Crop hail and multiple-peril crop insurance. 
 In-transit and storage personal property insurance. 
 Portable electronics insurance. 
 
Grounds for Refusal, Suspension, or Revocation 
Section 626.611, F.S., provides grounds for the mandatory denial of an application for, 
suspension, revocation, or refusal to renew or continue the license or appointment of any 
applicant, agent, title agency, adjuster, customer representative, service representative, or 
managing general agent. One of these grounds is for having been found guilty of or having 
pleaded guilty or nolo contendere to a felony or a crime punishable by imprisonment of one year 
or more under the law of another state, country, or territory. 
 
Section 626.621, F.S., provides grounds for the discretionary denial of an application for, 
suspension, revocation, or refusal to renew or continue the license or appointment of any 
applicant, agent, title agency, adjuster, customer representative, service representative, or 
managing general agent. These grounds do not include a finding that the applicant, licensee, or 
appointee had a resident license cancelled in another state. 
 
Reinsurance Intermediary - Fees 
Section 626.7492. F.S., referred to as the Reinsurance Intermediary Act, provides for the 
licensure of reinsurance intermediaries. A “reinsurance intermediary” is defined to include a 
                                                
70
 Section 626.2815(3)(c), F.S. 
71
 Section 626.2815(3)(d), F.S. 
72
 Section 626.2815(3)(e), F.S.  
73
 Section 626.2815(9), F.S.   BILL: CS/CS/CS/SB 1158   	Page 14 
 
reinsurance intermediary broker or a reinsurance intermediary manager.
74
 A “reinsurance 
intermediary broker” is defined to include “any person, other than an officer or employee of the 
ceding insurer, who solicits, negotiates, or places reinsurance cessions or retrocessions on behalf 
of a ceding insurer without the authority or power to bind reinsurance on behalf of the ceding 
insurer.”
75
 A “reinsurance intermediary manager” is defined as “any person who has authority to 
bind, or manages all or part of, the assumed reinsurance business of a reinsurer, including the 
management of a separate division, department, or underwriting office, and acts as an agent for 
the reinsurer whether known as a reinsurance intermediary manager, manager, or other similar 
term.”
76
 The following persons are excluded from the definition of “reinsurance intermediary 
manager” with respect to the reinsurer: 
 An employee of the reinsurer; 
 A manager of the United States branch of an alien reinsurer; 
 An underwriting manager which, pursuant to contract, manages all the reinsurance operations 
of the reinsurer, is under common control with the reinsurer, subject to the holding company 
act, and whose compensation is not based on the volume of premiums written; 
 The manager of a group, association, pool, or organization of insurers which engage in joint 
underwriting or joint reinsurance and who are subject to examination by the insurance 
regulatory authority of the state in which the manager’s principal business office is located.
77
  
 
The reinsurer intermediary application and license fee is $50.
78
 A reinsurance intermediary is 
subject to examination by the DFS. The DFS shall have access to all books, bank accounts, and 
records of the reinsurance intermediary in a form usable to the DFS.
79
 A reinsurance 
intermediary found by the DFS, or an insurer or reinsurer found by the office, to be in violation 
of any provision of the licensure law must: 
 For each separate violation pay a penalty in an amount not to exceed $5,000; 
 Be subject to revocation or suspension of its license; and 
 If a violation was committed by the reinsurance intermediary, the reinsurance intermediary 
must make restitution to the insurer, reinsurer, rehabilitator, or liquidator of the insurer or 
reinsurer for the net losses incurred by the insurer or reinsurer attributable to the violation.
80
 
 
Appointment Requirements for Agents, Adjusters, and Customer Representatives 
Section 626.112(1)(a), F.S., states that a person may not be, act as, or advertise or hold himself 
or herself out to be an insurance agent, insurance adjuster, or customer representative unless he 
or she is currently licensed by the DFS and appointed by an appropriate appointing entity or 
person to represent an insurer. Section 626.371(1), F.S., requires all initial appointments be 
submitted to the DFS no later than 45 days after the date of appointment. Where it appears to the 
DFS that a formerly or currently licensed person has been, or is, actively engaged as an 
appointee without being appointed as required, the DFS still may issue an appointment submitted 
upon finding that such failure was an inadvertent error on the part of the insurer. The DFS may 
                                                
74
 Section 626.7492(2)(e), F.S. 
75
 Section 626.7492(2)(f), F.S. 
76
 Section 626.7492(2)(g), F.S. 
77
 Section 626.7492(2)(g)1.-4., F.S. 
78
 Section 624.501(25)(a), F.S. 
79
 Section 626.7492(10)(a), F.S. 
80
 Section 626.7492(11)(a), F.S.  BILL: CS/CS/CS/SB 1158   	Page 15 
 
condition such approval on the payment of all fees and taxes that would have been due, had the 
person been properly appointed. 
 
Title Insurance Agents and Agencies 
Title insurance insures property owners against claims related to the ownership of an insured 
property, liability for back taxes, and liens or other encumbrances. 
 
Section 626.844, F.S., authorizes the DFS to suspend or revoke the license or appointment of any 
title insurance agent or agency, and it may suspend or revoke the eligibility to hold a license or 
appointment of any such title insurance agent or agency, upon certain specified grounds. 
However, an order may not suspend such license or appointment for more than one year.
81
  
 
Section 626.8473, F.S., provides all funds received by a title insurance agent considered trust 
funds received in a fiduciary capacity by the title insurance agent and such funds are the property 
of the person or persons entitled thereto.  
 
Insurance Adjusters 
Part VI, ch. 626, F.S., regulates insurance adjusters, which includes public adjusters, independent 
adjusters, and company employee adjusters. A “public adjuster” is any person, other than a 
licensed attorney, who, for compensation, prepares, completes, or files an insurance claim form 
for an insured or third-party claimant in negotiating or settling an insurance claim on behalf of an 
insured or third party.
82
 An “independent adjuster” is any person who is self-employed or 
employed by an independent adjusting firm and who works for an insurer to ascertain and 
determine the amount of an insurance claim, loss, or damage, or to settle an insurance claim 
under an insurance contract. A “company employee adjuster” is any person employed in-house 
by an insurer who ascertains and determines the amount of an insurance claim, loss, or damage, 
or settles an insurance claim under an insurance contract. 
 
Public adjusters are licensed by the DFS and are required to meet pre-licensing requirements, 
which include submitting an application, paying required fees, complying with requirements as 
to knowledge, experience, or instruction, and submitting fingerprints. A policyholder who has 
sustained an insured loss may hire a public adjuster. The public adjuster will inspect the loss site, 
analyze the damages, assemble claim support data, review the insured’s coverage, determine 
current replacement costs, and confer with the insurer’s representatives to adjust the claim. 
Public adjuster fees are capped at ten to 20 percent of the insurance claim payments.
83
 
 
Anti-Fraud Reward Program 
The Anti-Fraud Reward Program was established in October 1999
84
 and allows the DFS to 
award up to $25,000 to individuals who provide information leading to the arrest and conviction 
                                                
81
 Section 626.8443(1), F.S. 
82
 Section 626.854(1), F.S. 
83
 Section 626.854 (10), F.S. 
84
 Department of Financial Services, Fraud Free Florida, $25,000 Florida Fraud Fighter Reward Program, 
https://myfloridacfo.com/fraudfreeflorida#:~:text=The%20anti%2Dfraud%20reward%20program,to%20an%20arrest%20and
%20conviction (last visited March 28, 2023).  BILL: CS/CS/CS/SB 1158   	Page 16 
 
of persons convicted of certain enumerated crimes investigated by the Division of Insurance 
Fraud.
85
 The awards are funded from the Insurance Regulatory Trust Fund.
86
 
 
Navigators 
Part XIII, F.S., provides for the registration of navigators with the DFS. The purpose of 
registration is to authorize an individual to facilitate the selection of a qualified health plan 
(QHP) through an Exchange
87
 by providing fair, accurate, and impartial information regarding 
QHPs and the availability of tax credits and cost sharing reductions, and to prohibit specified 
activities or conduct.
88
 To be registered, an individual must certify that he or she has completed 
all training for a navigator required by the federal government or the Exchange and must submit 
fingerprints for a criminal background check.
89
 
 
Medical Malpractice Risk Apportionment 
Section 627.351(4), F.S., requires the OIR to adopt a joint underwriting plan and creates the Joint 
Underwriting Association (Association). The Association operates subject to the supervision and 
approval of a board of governors (Board). The Board consists of representatives of five of the 
insurers participating in the Joint Underwriting Association, an attorney named by The Florida 
Bar, a physician named by the Florida Medical Association, a dentist named by the Florida 
Dental Association, and a hospital representative named by the Florida Hospital Association. The 
CFO selects the representatives of the five insurers. One insurer representative must be chosen 
from recommendations of the American Insurance Association; one from recommendations of 
the Property Casualty Insurers Association of America; one from recommendations of the 
Florida Insurance Council. Two insurer representatives must be selected to represent insurers 
that are not affiliated with those associations.
90
 
 
Disclosures to Policyholders 
Section 627.4215(1), F.S., requires a health insurer to make the following information available 
on its website: 
 Federal and state requirements for coverage of behavioral health care services; and 
 Contact information for the Division of Consumer Services of the DFS, including a hyperlink 
in order for consumers to submit inquiries or complaints relating to health insurer products or 
services regulated by the DFS or the OIR. 
 
A health insurer is required to provide a notice directly to insureds that includes a description of 
the federal and state requirements for coverage of behavioral health care services. The notice 
                                                
85
 Section 626.9892, F.S.; the applicable crimes arise from violations of ss. 440.105, 624.15, 626.9541, 626.989, 790.164, 
790.165, 790.166, 806.01, 806.031, 806.10, 806.111, 817.233, and 817.234, F.S. 
86
 Id.  
87
 Exchanges are created under the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, as amended by the 
Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152. 
88
 Section 626.9952(2), F.S. 
89
 Section 626.9953, F.S. 
90
 Section 627.351(4)(c), F.S.  BILL: CS/CS/CS/SB 1158   	Page 17 
 
must include the website address and statewide toll-free telephone number of the Division of 
Consumer Services of the DFS for receiving complaints.
91
 
 
The DFS Property Insurance Mediation Program 
Section 627.7015, F.S., provides for a property insurance mediation program through the DFS. It 
is available for claims under personal lines and commercial residential policies before 
commencing the appraisal process or before commencing litigation.
92
 An insurer must notify the 
policyholder of the right to participate in mediation at the time of the claim.
93
 Mediation is 
nonbinding. However, if a written settlement is reached, the policyholder has three business days 
within which the policyholder may rescind the settlement unless the policyholder has cashed or 
deposited any check or draft disbursed to the policyholder for the disputed matters as a result of 
the conference. If a settlement agreement is reached and is not rescinded, it is binding and acts as 
a release of all specific claims that were presented in that mediation conference.
94
 
 
Alternative Procedure for the Resolution of Disputed Sinkhole Insurance Claims 
Sections 627.707-627.7074, F.S., create requirements for the investigation of sinkhole claims 
and a neutral evaluation program to help resolve sinkhole claims. Section 627.707, F.S., requires 
an insurer, upon receipt of a sinkhole claim, to inspect the policyholder’s premises to determine 
if there is structural damage that may be the result of sinkhole activity. If the insurer confirms 
that structural damage exists but is unable to identify the cause or discovers that such damage is 
consistent with sinkhole loss, the insurer shall engage a professional engineer or a professional 
geologist to conduct testing
95
 to determine the cause of the loss if sinkhole loss is covered under 
the policy.
96
 If the insurer determines that there is no sinkhole loss, the insurer may deny the 
claim.
97
 
 
Neutral evaluation is available to either party if a sinkhole report has been issued.
98
 Neutral 
evaluation must determine causation, all methods of stabilization and repair both above and 
below ground, and the costs of stabilization and all repairs.
99
 Following the receipt of the 
sinkhole report or the denial of a claim for a sinkhole loss, the insurer notifies the policyholder of 
the right to participate in the neutral evaluation program.
100
 
 
Neutral evaluation is nonbinding, but mandatory if requested by either the insurer or the 
insured.
101
 A request for neutral evaluation is filed with the DFS. The request for neutral 
evaluation must state the reason for the request and must include an explanation of all the issues 
                                                
91
 Section 627.4215, F.S. 
92
 Section 627.7015(1), F.S. 
93
 Section 627.7015(2), F.S. 
94
 Section 627.7015(6), F.S. 
95
 Section 627.7072, F.S., contains testing standards in sinkhole claims. 
96
 Section 627.707(2), F.S. 
97
 Section 627.707(4)(a), F.S. 
98
 Section 627.7073, F.S., requires that a report be issued if testing required under s. 627.707-7074, F.S., is performed. 
99
 Section 627.7074(2), F.S. 
100
 Section 627.7074(3), F.S. 
101
 Section 627.7074(4), F.S.  BILL: CS/CS/CS/SB 1158   	Page 18 
 
in dispute at the time of the request.
102
 The neutral evaluator receives information from the 
parties and may have access to the structure. The neutral evaluator evaluates the claim and 
prepares a report describing whether a sinkhole loss occurred and, if necessary, the costs of 
repairs or stabilization.
103
 The report is admissible in subsequent court proceedings.
104
 
Section 627.7074(6), F.S., requires the insurer to pay reasonable costs associated with the neutral 
evaluation. 
 
Mediation of Automobile Insurance Claims 
The DFS administers a mediation program for automobile insurance claims.
105
 The claimant or 
the insurer may demand mediation of a claim in an amount of $10,000 or less arising out of the 
ownership, operation, use, or maintenance of a motor vehicle. A request for mediation must be 
filed with the DFS on an approved form.
106
 Costs of the mediation are borne equally by both 
parties unless the mediator determines that one party has not mediated in good faith.
107
 The DFS 
approves mediators used in the program.
108
 To qualify as a mediator for the property or 
automobile mediation programs, a person must possess an active certification as a Florida 
Supreme Court certified circuit court mediator or be an approved DFS mediator as of 
July 1, 2014, and have conducted at least one mediation on behalf of the DFS within four years 
immediately preceding that date.
109
 
 
Insurer Insolvency – Rehabilitation and Liquidation 
Rehabilitation and Liquidation 
Chapter 631, F.S., provides direction for the handling of insurers that have become insolvent. 
Part I of the Chapter provides specifically for the rehabilitation and liquidation of insolvent 
insurers. Receivership is a judicial proceeding in which the DFS is placed in control of the 
insurer for the purpose of rehabilitating or liquidating the insurer. The DFS may seek to be 
appointed receiver
110
 through a delinquency proceeding in court for the purpose of rehabilitating 
an impaired insurer or, if appropriate, liquidating the insolvent company. The primary goal of 
rehabilitation is to restore the financial solvency of the insurer
111
 while the primary goal of 
liquidation is to secure and maximize the assets of the insolvent company for the benefit of its 
policyholders.
112
 Section 631.141, F.S., provides for the conduct of delinquency proceedings.  
 
                                                
102
 Section 627.7074, F.S. The statute also requires the Department of Financial Services to maintain a list of neutral 
evaluators and provides for disqualification of neutral evaluators in specified circumstances. 
103
 Sections 627.7074(5), (12), F.S. 
104
 Section 627.7074(13), F.S. 
105
 Section 626.745, F.S. 
106
 Section 627.745(1)(b), F.S. 
107
 Section 627.745(1)(f), F.S. 
108
 Section 627.745(3)(a), F.S. 
109
 Section 627.745(3)(b), F.S. 
110
 The DFS Division of Rehabilitation and Liquidation acts as receiver when the DFS is appointed. See 
http://www.myfloridacfo.com/Division/Receiver/ (last visited March 28, 2023). 
111
 The DFS Division of Rehabilitation and Liquidation, Guide to Receivership Process, 
https://www.myfloridacfo.com/division/receiver/guide-to-the-receivership-process (last visited March 28, 2023). 
112
 See Overview of Liquidation under Chapter 631, Florida Statutes (myfloridacfo.com) (last visited March 28, 2023).  BILL: CS/CS/CS/SB 1158   	Page 19 
 
Section 631.252(1), F.S., requires policies of the insolvent insurer be canceled upon the earliest 
of: 
 The date of entry of the liquidation or, if the court so provides in its order, the expiration of 
30 days from the date of entry of the liquidation order; 
 The normal expiration of the policy or contract coverage; 
 The replacement of the coverage by the insured, or the replacement of the policy or contract 
of coverage, with a policy or contract acceptable to the insured by the receiver with another 
insurer; or 
 The termination of the coverage by the insured. 
 
Other than for certain life or health insurance coverages, claims made during the 30-day period 
under paragraph (1)(a) are handled as if the claim was made prior to the date of the insurer’s 
liquidation.
113
 The 30-day coverage period may not be extended.
114
  
 
Guaranty of Payment 
A guaranty association generally is a nonprofit corporation created by law directed to protect 
policyholders from financial losses and delays in claim payment and settlement due to the 
insolvency of an insurance company. Section 631.55, F.S., provides for the creation of the 
Florida Insurance Guaranty Association, Inc. (FIGA). When a property and casualty insurance 
company becomes insolvent, FIGA is required by law to assume the claims of the insurer and 
pay the claims of the company's policyholders.
115
 All insurers licensed to sell property and 
casualty insurance in the state are required to participate in the FIGA as a condition of 
transacting business in Florida. The FIGA operates under a board of directors as a nonprofit 
corporation. The board consists of five to nine members appointed by the DFS to serve four-year 
terms.
116
  
 
Section 631.715, F.S., provides for the creation of the Florida Life and Health Insurance 
Guaranty Association (FLHIGA). All insurers licensed to sell direct life insurance policies, 
health insurance policies, annuity contracts, and supplemental contracts with or without life 
contingencies in the state are required to participate in the FLHIGA as a condition of transacting 
business in Florida. The FLHIGA operates under a board of directors as a nonprofit corporation. 
The board consists of nine to eleven members appointed by member insurers.
117
 
 
Section 631.815, F.S., provides for the creation of the Florida Health Maintenance Organization 
Consumer Assistance Plan (FHMOCAP). All health maintenance organizations possessing a 
valid certificate of authority in the state are required to participate in the FHMOCAP as a 
condition of transacting business in Florida. The FHMOCAP operates under a board of directors 
as a nonprofit corporation. The board consists of five to nine members appointed by the DFS to 
serve four-year terms.
118
 
 
                                                
113
 Section 631.252(2), F.S. 
114
 Section 631.252(3), F.S. 
115
 Section 631.57, F.S. 
116
 Section 631.56(1), F.S. 
117
 Section 631.716(1), F.S. 
118
 Section 631.816(1), F.S.  BILL: CS/CS/CS/SB 1158   	Page 20 
 
Section 631.911, F.S., provides the creation of the Florida Workers’ Compensation Insurance 
Guaranty Association, Incorporated (FWCIGA). All insurers authorized to provide workers’ 
compensation insurance in the state are required to participate in the FWCIGA as a condition of 
transacting business in Florida. The FWCIGA operates under a board of directors as a nonprofit 
corporation. The board consists of eleven members appointed to serve four-year terms.
119
 
 
State Fire Marshal 
The CFO is designated under Florida law as the State Fire Marshal.
120
 This law provides “it is 
the intent of the Legislature that the State Fire Marshal shall have the responsibility to minimize 
the loss of life and property in this state due to fire.”
121
 The State Fire Marshal, by rule, adopts 
the Florida Fire Prevention Code (fire code), which contains all fire safety laws and rules that 
pertain to the design, construction, erection, alteration, modification, repair, and demolition of 
public and private buildings, structures, and facilities, and the enforcement of such fire safety 
laws and rules.
122
 
 
Direct-Support Organizations 
Citizen support organizations (CSOs) and direct-support organizations (DSOs) are 
statutorily-created private entities that are generally required to be non-profit corporations and 
are authorized to carry out specific tasks in support of public entities or public causes. The 
purpose and functions of a CSO or DSO are prescribed by its enacting statute and, for most, by a 
written contract with the agency the CSO or DSO was created to support. 
 
Section 20.058, F.S., establishes the rules and procedures that a CSO or DSO must follow to 
remain in compliance. By August 1 of each year, a CSO or DSO must submit the following 
information to the agency it was created, approved, or is administered by: 
 The name, mailing address, phone number, and website of the organization; 
 The statutory authority or executive order pursuant to which the organization was created; 
 A brief description of the mission of, and results obtained by, the organization; 
 A brief description of the plans of the organization for the next three fiscal years; 
 A copy of the organization’s code of ethics; and 
 A copy of the organization’s most recent tax exemption form.
123
 
 
Each agency receiving such information from a CSO or DSO must make it available to the 
public through the agency’s website. By August 15 of each year, each agency must submit a 
report to the Governor, the President of the Senate, the Speaker of the House of Representatives, 
and the Office of Program Policy Analysis and Government Accountability with the information 
provided and must include a recommendation to continue, terminate, or modify the agency’s 
association with each CSO or DSO in the report. Furthermore, any contract between an agency 
and a CSO or DSO must be contingent upon the timely submission and posting of the 
information listed above. The contract must also provide for the cessation of operations and the 
                                                
119
 Section 631.912(1), F.S. 
120
 Section 633.104(1). 
121
 Section 633.104(2). 
122
 Section 633.208(1); ch. 69A-60, F.A.C. 
123
 Section 20.058(1)(a)-(f), F.S.  BILL: CS/CS/CS/SB 1158   	Page 21 
 
reversion of state funds held by the CSO or DSO in the event that the statute authorizing the 
creation of the CSO or DSO is repealed, the contract is terminated, or the organization is 
dissolved. If an organization fails to submit the required information for two consecutive years, 
the agency head must terminate any contract between the agency and the CSO or DSO.
124
 
 
Additionally, each CSO or DSO with annual expenditures in excess of $100,000, created or 
authorized pursuant to law, and created, approved, or administered by a state agency, must 
provide for an annual financial audit of its accounts and records to be conducted by an 
independent certified public accountant. The audit must be submitted within nine months after 
the end of the fiscal year to the Auditor General and to the state agency responsible for the 
creation, administration, or approval of the CSO or DSO.
125
 
 
Laws creating or authorizing a CSO or DSO repeal on October 1 of the fifth year after 
enactment, unless reviewed and saved from repeal by the Legislature.
126
 
 
Warranty Associations 
Chapter 634, F.S., provides for the regulation of warranty associations. There are three parts to 
the chapter; Part I for motor vehicle service agreement companies; Part II for home warranty 
associations; and Part III for service warranty associations. 
 
Motor Vehicle Service Agreement Companies 
A motor vehicle service agreement includes any agreement indemnifying the agreement holder 
against loss caused by failure of any mechanical or other component of the covered motor 
vehicle that does not operate as originally intended.
127
 It does not include or prohibit the giving, 
free of charge, of the usual performance guarantees by manufacturers or dealers in connection 
with the sale of a motor vehicle.
128
 The regulation is administered by the OIR.
129
 
 
Home Warranty Associations 
A home warranty association is any business other than an authorized insurer that issues home 
warranties.
130
 A home warranty includes any agreement whereby a business indemnifies the 
warranty holder against the cost of repair or replacement of any structural component or 
appliance of a home, necessitated by wear and tear or an inherent defect of any such structural 
component or appliance.
131
 It does not include or prohibit the giving, at no charge, of usual 
performance guarantees by either the builder of a home or the manufacturer or seller.
132
 The 
regulation is administered by the OIR.
133
  
 
                                                
124
 Section 20.058(2)-(4), F.S. 
125
 Section 215.981(1), F.S. 
126
 Section 20.058(5), F.S. 
127
 Section 634.011(8), F.S. 
128
 Id. 
129
 Section 634.021, F.S. 
130
 Section 634.301(3), F.S. 
131
 Section 634.301(2), F.S. 
132
 Id. 
133
 Section 634.302, F.S.  BILL: CS/CS/CS/SB 1158   	Page 22 
 
Service Warranty Associations 
A service warranty association is any business other than an authorized insurer that issues service 
warranties.
134
 A service warranty includes, in return for the payment of a segregated charge by 
the consumer, any warranty, guaranty, or maintenance service contract equal to or greater than 
one year in length; an agreement for a specific duration to perform the repair, replacement, or 
maintenance of a consumer product; for indemnification for repair, replacement, or maintenance, 
for failure due to a defect in materials or workmanship, normal wear and tear, power surge, or 
accidental damage from handling.
135
 The regulation of the association and the warranties is 
administered by the OIR; the regulation of the sales representatives is by the DFS.
136
 
 
Bail Bonds 
A bail bond is a guarantee by a third-party that a defendant in a criminal case will appear in court 
at all scheduled proceedings. A bail bond agent posts a surety bond to secure the defendant’s 
release from custody; the defendant provides money or other collateral to secure the bail bond 
and forfeits the premium (10 percent of the amount of bail set by the court) if he or she fails to 
appear in court or comply with other conditions of the bond. Bail bond agents must be licensed 
by the DFS and appointed by insurance carriers to execute bail bonds. If a defendant fails to 
appear in court, the bail bond agent may apprehend and detain the defendant until the defendant 
is surrendered to the authorities.
137
  
 
Bail bond agents may execute or sign bonds, handle collateral receipts, deliver bonds to 
appropriate authorities, or operate an agency or branch agency at a separate location from the 
supervising bail bond agent, managing general agent, or insurer that employs the bail bond 
agent.
138
 
 
Licensure as a Bail Bond Agent 
The DFS issues a temporary license effective for 18 months and permits a licensee to work under 
the direct supervision of a licensed and appointed bail bond agent; a limited surety license that 
allows a bail bond agent to execute bail bonds; and a professional bail bond agent that allows the 
agent to obtain collateral from a criminal defendant in return for the execution of a bail bond 
with the court. 
 
To become a temporary bail bond agent, an applicant must have completed a 120-hour basic 
certification course during the four years prior to application and have an offer of employment 
from a supervising bail bond agent. A temporary bail bond agent must be accompanied by a 
supervising bail bond agent when apprehending, arresting, or surrendering defendants to the 
authorities. After one year of work under a temporary license (which must include at least 
1,540 hours of paid employment under the supervision of a supervising bail bond agent), the 
                                                
134
 Section 634.401(14), F.S. 
135
 Section 634.401(13), F.S. 
136
 Section 634.402, F.S. 
137
 Sections 648.24 and 624.26, F.S. Also see Department of Financial Services, Division of Consumer Services, Bail Bonds 
Overview, https://www.myfloridacfo.com/division/consumers/understanding-insurance/bail-bonds-overview (last visited 
March 28, 2023). 
138
 Section 648.355, F.S.  BILL: CS/CS/CS/SB 1158   	Page 23 
 
temporary licensee may apply for a regular bail bond agent’s license and take the required 
licensing examination.
139
  
 
After completing the one-year apprenticeship, a temporary licensee who passes a licensing exam 
and criminal background check may become a: 
 Bail bond agent (also known as limited surety agent) who may execute or countersign bail 
bonds in connection with judicial proceedings; or  
 Professional Bail Bond Agent, who may pledge U.S. currency, postal money orders, or 
cashier’s check as security for a bail bond in connection with a judicial proceeding and 
receives or is promised money or things of value in return.
140
 
 
All applicants for bail bond licenses must submit fingerprints for a national criminal background 
check and pay an application fee. Bail bond agents may not have been convicted of a felony, 
must be age 18 or older, and must be eligible to work in the United States. A bail bond agent 
must be appointed by a licensed insurer and the insurer must report the appointment to the DFS. 
A bail bond agent may not charge a premium other than the rate that has been approved by the 
OIR, and must retain records related to any bail bonds the agent has executed or countersigned 
for at least three years after the liability of the surety has been terminated. Additionally, bail 
bond agents must register with the sheriff and the clerk of the circuit court in the county where 
the bail bond agent resides. Bail bond agents may not solicit clients at a jail, prison, or 
courthouse, and may not pay fees for referrals from any person working in the law enforcement 
community.
141
  
 
Ownership of a Bail Bond Agency 
The owner of a bail bond agency must be a licensed and appointed bail bond agent.
142
 The owner 
or operator of a bail bond agency must designate a primary bail bond agent who is responsible 
for the overall operation and management of a bail bond agency location and file the name and 
license number of the primary bail bond agent and the address of the bail bond agency with the 
DFS. A primary bail bond agent may supervise only one location, is responsible for hiring 
employees and may not employ or contract with any person who has been found guilty of a 
felony.
143
  
 
Continuing Education 
Bail bond agents must complete at least 14 hours of continuing education every two years.
144
 
Schools that offer continuing education must be approved and certified by the DFS, and must 
offer a minimum of three classroom-instruction continuing education classes per calendar year. 
Continuing education classes must consist of at least two hours of approved coursework and be 
taught by a supervising instructor who is approved by the DFS.
145
  
                                                
139
 Id. and Rule 69B-221.051, F.A.C. 
140
 Section 648.25, F.S. 
141
 Sections 648.355, 648.33, 648.34, 648.35, 648.36, 648.382, 648.42, and 648.44, F.S. 
142
 Section 648.285, F.S. 
143
 Sections 648.25(6) and 648.387, F.S. 
144
 Section 648.385, F.S. 
145
 Section 648.386, F.S.  BILL: CS/CS/CS/SB 1158   	Page 24 
 
 
Florida Disposition of Unclaimed Property Act 
As part of the DFS’ statutory responsibilities, the DFS is to collect and return unclaimed property 
belonging to Florida residents.
146
 Chapter 717, F.S., is entitled the Florida Disposition of 
Unclaimed Property Act, over which the DFS is responsible to administer. Unclaimed property is 
any funds or other property, tangible or intangible, that has remained unclaimed by the owner for 
a certain number of years. Unclaimed property may include savings and checking accounts, 
money orders, travelers’ checks, uncashed payroll or cashiers’ checks, stocks, bonds, other 
securities, insurance policy payments, refunds, security and utility deposits, and contents of safe 
deposit boxes.
147
 Until claimed, unclaimed money is deposited into the state school fund to be 
used for public education. 
 
Pursuant to s. 717.124, F.S. a claimant representative must be a Florida-licensed attorney, a 
licensed Florida-certified public accountant (CPA), or a private investigator licensed under 
ch. 493, F.S. A claimant representative must register with the DFS on a form designated by the 
DFS and provide certain documentation (including tax identification number, identification, 
electronic funds transfer information, business address, and employees and agents) and 
credentials as to their status as an attorney, CPA, or private investigator.
148
 In order to move 
forward in obtaining unclaimed property on a potential client’s behalf, the representative must 
first obtain that client’s authorization. 
III. Effect of Proposed Changes: 
Powers and Duties of the Department of Financial Services 
Section 1 amends s. 20.121, F.S., to clarify and expand the powers and duties of the Division of 
Investigative and Forensic Services (DIFS) relating to investigations including the authority to 
initiate investigations if it has reason to believe any criminal law of Florida or the United States 
has or may have been violated. The bill allows the Department of Financial Services to initiate, 
not just conduct, investigations under the jurisdiction of the Chief Financial Officer (CFO), 
including the CFO’s role as State Fire Marshal. This section also expands DIFS authority to refer 
suspected criminal violations for prosecution to include criminal violation of federal law, in 
addition to state law criminal violations. 
 
The bill repeals subsection (6) which establishes the Strategic Markets Research and 
Assessments Unit and charges the CFO, or designee, with reporting quarterly on the status of the 
state’s financial services markets. 
 
Florida Deferred Compensation Program 
Section 2 amends s. 112.215, F.S., to redefine the term “employee” as “government employee” 
and revise eligibility for plans of deferred compensation to include employees of municipalities, 
                                                
146
 Florida Department of Financial Services, Statement of Agency Organization and Operation, 
https://www.myfloridacfo.com/sitepages/required/agencyorg.aspx (last visited March 26, 2021). 
147
 Sections 717.104-717.116, F.S. 
148
 Section 717.1400, F.S.  BILL: CS/CS/CS/SB 1158   	Page 25 
 
special districts, water management districts, and the Florida College System. Revises 
membership of the Deferred Compensation Advisory Council from seven members to eight 
members to include an employee of the Florida College System appointed by the Chancellor of 
the Florida College System.  
 
Annual Report on Economic Impact of a 1-in-100 Year Hurricane 
Section 3 amends s. 215.55952, F.S., to require the Department of Financial Services (DFS) to 
report on the economic impact of a 1-in-100 year hurricane once every three years. 
 
Tangible Personal Property Owned by Local Governments 
Section 4 amends s. 274.01, F.S., to revise the definition of the term “governmental unit” for 
purposes of ch. 274, F.S., to include a county agency, a municipality, and a special district. 
 
Workers’ Compensation 
Section 5 amends s. 440.13, F.S., to:  
 Provide if there is disagreement in the opinions of health care providers, the judge of 
compensation claims may, rather than shall, order the injured employee to be evaluated by an 
expert medical advisor. 
 Remove determination of statewide schedules of maximum reimbursement allowances for 
medically necessary treatment, care, and attendance provided by physicians, work-hardening 
programs, pain programs, and durable medical equipment from the three-member panel.  
 Provide that a hospital or ambulatory surgical center will be reimbursed the agreed-upon 
contract price or the maximum reimbursement allowance in the appropriate schedule.  
 Remove obsolete implementing language and obsolete language relating to practice 
parameters.  
 Provide by July 1 of each year, the DFS must notify carriers and self-insurers of the 
physician and nonhospital services schedule of maximum reimbursement allowances. The 
notice must include publication of the schedule on the division’s website. The schedule is not 
subject to approval by the three-member panel and does not include reimbursement for 
prescription medication. 
 
Section 6 amends s. 440.385, F.S., to provide the CFO may appoint directors to the Florida 
Self-Insurers Guaranty Association from recommendations of members of the association or 
from other persons with experience in self-insurance. Provides the CFO may remove a director 
for misconduct, malfeasance, misfeasance, or neglect of duty. Provides directors are subject to 
the code of ethics under part III of ch. 112, F.S.  
 
Section 75 ratifies Rule 69L-7.020, Florida Administrative Code, relating to the Florida 
Workers’ Compensation Health Care Provider Reimbursement Manual, Rule 69L-7.730, Florida 
Administrative Code, titled “Health Care Provider Medical Billing and Reporting 
Responsibilities”; and Rule 7.740, Florida Administrative Code, titled “Insurer Authorization 
and Medical Bill Review Responsibilities”. The bill meets the condition for effectiveness 
imposed by s. 120.541(3), F.S. The bill expressly limits ratification to the effectiveness of the  BILL: CS/CS/CS/SB 1158   	Page 26 
 
rule. The bill provides this section will not be codified in the Florida Statutes but only noted in 
the historical comments to each rule by the Department of State.  
 
Funeral and Cemetery Services 
Section 7 amends s. 497.005, F.S., to revise definitions relating to funeral, cemetery, and 
consumer services. Specifically, the bill defines “Preneed contract” to mean any arrangement or 
method for which the provider of funeral merchandise or services receives any payment in 
advance for funeral or burial merchandise and services after the death of a contract beneficiary. 
The term excludes a transportation protection agreement and any payments received on a 
transportation protection agreement. 
 
Section 7 also defines “transportation protection agreement” to mean an agreement that 
exclusively provides or arranges for services related to the preparation for the purpose of 
transportation and subsequent transportation of human remains or cremated remains. The bill 
expressly states the Florida Insurance Code, as defined in s. 624.01, F.S., does not apply to any 
transportation protection agreement sold by any licensee under this chapter. 
 
Health Care Ministry 
Section 8 amends s. 624.1265, F.S., to provide a nonprofit religious organization may not market 
or sell health plans by agents licensed by the DFS. 
 
Division of Insurance Agents and Agencies 
Section 9 amends s. 624.501, F.S., to delete the application filing and license fee for reinsurance 
intermediaries. 
 
Section 10 amends s. 626.015, F.S., to revise the definition of the term “association” for 
purposes of part I of ch. 626, F.S. Reference to the “Florida Association of Health Underwriters” 
is changed to the “National Association of Benefits and Insurance Professionals Florida 
Chapter.” 
 
Section 11 amends s. 626.171, F.S., to delete the authority of designated examination centers to 
take fingerprints of applicants for a license as an agent, customer representative, adjuster, service 
representative, or reinsurance intermediary. 
 
Section 12 amends s. 626.173, F.S., to provide an insurance agency closure notice requirement 
provision does not apply to title insurance, life insurance, or annuity contracts. 
 
Section 13 amends s. 626.207, F.S., to authorize the DFS to adopt rules establishing specific 
penalties against licensees for violations of: 
 Section 626.112(7) or (9), F.S., regarding trade names of insurance agencies and adjusting 
firms; 
 Section 626.6115, F.S., regarding compulsory refusal, suspension or revocation of insurance 
agency licensure;  BILL: CS/CS/CS/SB 1158   	Page 27 
 
 Section 626.6215, F.S., regarding discretional refusal, suspension, or revocation of insurance 
agency licensure; 
 Section 626.7451, F.S., regarding managing general agent contract provisions; 
 Section 626.8695, F.S., regarding designation of primary adjusters at each business location; 
 Section 626.8697, F.S., regarding mandatory refusal, suspension, or revocation of an 
adjusting firm license; and  
 Section 626.8698, F.S., regarding disciplinary guidelines for public adjusters and public 
adjuster apprentices. 
 
Section 14 amends s. 626.221, F.S., to add a certification from Professional in Claims (PIC) 
from 2021 Training, LLC, exempts an applicant for license as an all-lines adjuster from an 
examination requirement. 
 
Section 15 amends s. 626.2815, F.S., to provide any course related to commercial and residential 
property coverages, claim adjusting practices, and any other adjuster elective courses approved 
by the DFS, qualify as elective continuing education for certain insurance representatives. 
 
Section 16 amends s. 626.321, F.S., to delete requirements prohibiting limited lines agents from 
holding a license as an agent for any other or additional kind or class of insurance coverage and 
creates a limited license for preneed funeral agreement insurance coverage.  
 
Section 17 amends s. 626.611, F.S., to add having been found guilty of or having pleaded guilty 
or nolo contendere to a misdemeanor directly related to the financial services business as 
grounds for compulsory disciplinary actions taken by the DFS against insurance representatives. 
 
Section 18 amends s. 626.621, F.S., to add having had the cancellation of the applicant’s, 
licensee’s or appointee’s resident license in a state other than Florida as grounds for discretionary 
disciplinary actions taken by the DFS against insurance representatives. 
 
Section 19 amends s. 626.7492, F.S., to revise the definitions of the terms “producer” and 
“reinsurance intermediary manager” in order to change the Reinsurance Intermediary Manager 
and Reinsurance Intermediary Broker licenses to an appointment. 
 
Section 20 amends s. 626.752, F.S., to require the DFS to suspend the insurer’s or employer’s 
ability to appoint licensees if the insurer fails to pay the exchange of business fee within 21 days 
after notice by the DFS. 
 
Section 21 amends s. 626.785, F.S., to authorize a funeral director, a direct disposer, or an 
employee of a funeral establishment that holds a preneed license to obtain a limited license to 
sell only policies of life insurance covering the expense of a prearrangement for funeral services 
or merchandise. 
 
Sections 22 and 23 amend ss. 626.793 and 626.837, F.S., respectively, to require the DFS to 
suspend the authority of an insurer or employer to appoint licensees if the insurer or employer 
does not pay the fees and taxes due within 21 days after notice by the DFS. 
  BILL: CS/CS/CS/SB 1158   	Page 28 
 
Title Insurance Agents and Agencies 
Section 24 amends s. 626.8411, F.S., to provide the notice requirements of s. 626.173(1)(c), F.S., 
relating to notifying policyholders of the agency closure, do not apply to title insurance agents or 
title insurance agencies. 
 
Section 25 amends s. 626.8437, F.S., to add grounds for compulsory disciplinary actions taken 
by the DFS against a title insurance agent or agency to include misappropriation, conversion, or 
improper withholding of funds received in a fiduciary capacity and held as part of an escrow 
agreement, real estate sales contract, or as provided on a settlement statement in a real estate 
transaction and revocation or cancellation of a licensee’s resident license in a jurisdiction other 
Florida. 
 
Section 26 amends s. 626.844, F.S., to add grounds for discretionary disciplinary actions taken 
by the DFS against a title insurance agent or agency for having been the subject of a violation of 
any federal or state securities or commodities law or having a licensee’s resident license in a 
jurisdiction other than Florida revoked or cancelled. 
 
Section 27 amends s. 626.8473, F.S., to transfer the duties as an escrow agent from the title 
agent to the title agency. 
 
Section 28 amends s. 626.854, F.S., to provide the applicability of the prohibition of taking a 
thing of value for certain prohibited acts applies to a licensed “and appointed” public insurance 
adjuster.  
 
Section 29 amends s. 626.874, F.S., to provide a catastrophe or emergency adjuster must adjust 
claims, losses, or damages under policies or contracts of insurance issued by an authorized 
insurer or by a licensed independent adjusting firm contracted with an authorized insurer.  
 
Anti-Fraud Reward Program 
Section 30 amends s. 626.9892, F.S., to add violations for which the DFS may pay up to $25,000 
in reward under the Anti-Fraud Reward Program. The list of investigable insurance fraud 
violations under the Anti-Fraud Reward Program is expanded to include, but is not limited to, 
nursing home and related health care facilities noncompliance; forgery and counterfeiting public 
records; racketeering and illegal debts; burning to defraud an insurer; theft, robbery and related 
crimes; false and fraudulent insurance claims; patient brokering; criminal use of personal 
identification; and money laundering,  
 
The bill removes the requirement for a conviction in order for the person providing information 
leading to an arrest of a person committing crimes to receive a reward under the Anti-Fraud 
Reward Program. 
 
Navigators 
Section 31 amends s. 626.9957, F.S., to provide for the expiration of a health coverage 
navigator’s registration if the navigator fails to maintain an active, valid navigator’s registration  BILL: CS/CS/CS/SB 1158   	Page 29 
 
status with the Federal Government or an exchange. Furthermore, a navigator with an expired 
registration may be not granted subsequent registration until the navigator qualifies as a 
first-time applicant. 
 
Medical Malpractice Risk Apportionment 
Section 32 amends s. 627.351, F.S., to provide the CFO may select the representatives of the 
Joint Underwriting Association from persons with experience in medical malpractice insurance. 
The bill also provides the CFO may remove a member for misconduct, malfeasance, 
misfeasance, or neglect of duty; and provide that members are subject to the code of ethics under 
part III of ch. 112, F.S. The bill specifies vacancies on the board of governors shall be filled for 
the remaining period of the term in the same manner as the initial appointments. 
 
Disclosures to Policyholders 
Section 33 amends s. 627.4215, F.S., to provide the disclosure requirement to policyholders 
applies only to health insurers that offer mental health benefits. 
 
DFS Property Insurance Mediation Program 
 
Section 34 amends s. 627.7015, F.S., to provide a disputed property insurance claim is not 
eligible for mediation until an insurer has made a claim determination or elected to repair 
pursuant to s. 627.70131, F.S. The bill provides fees for a rescheduled mediation conference can 
be assessed by the DFS and authorizes the DFS to suspend an insurer’s authority to appoint 
licensees if the insurer does not timely pay the required fees.  
 
Alternative Procedure for the Resolution of Disputed Sinkhole Insurance Claims 
Section 35 amends s. 627.7074, F.S., to allow the DFS to designate an administrator to carry out 
the alternative procedure for resolution of disputed sinkhole insurance claims. 
 
Mediation of Automobile Insurance Claims 
Section 36 amends s. 627.745, F.S., to revise the requirements and procedures for the mediation 
of personal injury claims under a motor vehicle insurance policy; require the costs of mediation 
to be reasonable and paid by the insurer; provide for consequences of failure to appear; authorize 
the DFS to designate an administrator by means of a written contract or agreement; and allow for 
mediation to litigants referred to the DFS by a county or circuit court. This section requires the 
DFS to adopt, by rules, a motor vehicle claims insurance mediation program to be administered 
by the DFS or its designee, rules applicable in cases of an emergency within the state and 
modeled after practices and procedures set forth in mediation rules of procedure adopted by the 
Supreme Court to include: 
 Reasonable requirements for processing and scheduling of requests for mediation; 
 Provisions governing who may attend mediation conferences; 
 Selection of mediators; 
 Criteria for this conduct of mediation conferences;  
 Right to legal counsel; and  BILL: CS/CS/CS/SB 1158   	Page 30 
 
 Controls of costs and expenses of mediation. 
 
Insurer Insolvency – Rehabilitation and Liquidation 
Section 37 amends s. 631.141, F.S., to authorize the DFS in receivership proceedings to use the 
property of the estate of the insolvent insurer to transfer the insurer’s book of business to a 
solvent assuming insurer or insurers and to share records of the insolvent insurer with the 
prospective assuming insurer. 
 
Section 38 amends s. 631.252, F.S., to provide policies of the insolvent insurer do not have to be 
cancelled if there is a carrier willing to take on policies of an insolvent company. 
 
Section 39 amends s. 631.56, F.S., to provide the CFO with the authority to appoint three 
representative from domestic insurers to the board of directors for the Florida Guaranty 
Association.  
 
Sections 39 through 42 amend ss. 631.56, 631.716, 631.816, and 631.912, F.S., respectively, to 
revise membership eligibility requirements for the Florida Insurance Guaranty Association, the 
Florida Life and Health Insurance Guaranty Association, the Florida Health Maintenance 
Organization Consumer Assistance Plan, and the Florida Workers’ Compensation Insurance 
Guaranty Association, Incorporated. These sections provide the CFO may remove a member for 
misconduct, malfeasance, misfeasance, or neglect of duty; and provide that members are subject 
to the code of ethics under part III of ch. 112, F.S., and as such, provides for penalties for failure 
to comply with provisions within ch. 112. F.S. The bill specifies board members of the Florida 
Life and Health Insurance Guaranty Association serve four-year term and may be reappointed, 
which is current law for board members of the other associations and plans affected by these 
sections.  
 
Furthermore, Sections 39 through 42 broaden the recommendation of appointees to the various 
boards to include recommendations from other persons with experience in property and casualty 
insurance or motor vehicle insurance, life and annuity or accident and health insurance, health 
insurance, or workers’ compensation insurance, as determined by the CFO. 
 
State Fire Marshal 
Section 43 creates s. 633.1423, F.S., to create a direct support organization (DSO) for the State 
Fire Marshal to be known as the “State Fire Marshal Safety and Training Force,” whose purpose 
is to support the safety and training of firefighters and to recognize exemplary service. The bill 
provides the DSO must be a non-for-profit corporation incorporated under ch. 617, F.S., and 
approved by the Department of State; be organized to raise funds; request and receive grants; 
gifts and bequests of money; conduct program and activities; acquire, receive, hold, invest and 
administer, in its own name, securities, funds or property; and make grants and expenditures to 
or for the direct or indirect benefit of the division. The bill provides funds may include the cost 
of education and training of firefighters, or the recognition of exemplary service of firefighters. 
Under the bill, the DSO must operate under a written contract with the Division of State Fire 
Marshal (division). 
  BILL: CS/CS/CS/SB 1158   	Page 31 
 
The section provides for a board of directors; provides requirements for the use of property, 
annual budgets and reports, an annual audit, and the division’s receipt of proceeds; and 
authorizes moneys received to be held in a depository account. 
 
The bill provides a repeal date of October 1, 2028. 
 
Warranty Associations 
Section 44 amends s. 634.181, F.S., to add grounds for compulsory disciplinary actions against 
motor vehicle service agreement salespersons; provide for the immediate temporarily suspension 
of a license if the licensee is charged with certain felonies; and authorize the DFS to adopt rules. 
 
Section 45 amends s. 634.191, F.S., to add an additional discretionary ground for refusal, 
suspension, or revocation of a license or appointment of a motor vehicle service agreement 
salesperson for failure to report the final disposition of an action taken against the salesperson by 
a regulatory agency relating to the business of insurance, the sale of securities, or an activity 
involving fraud, dishonesty, trustworthiness, or breach of a fiduciary duty. 
 
Section 46 amends s. 634.320, F.S., to add grounds for discretionary disciplinary actions taken 
against a home warranty association sales representative for having been the subject of a 
violation of any federal or state securities or commodities law; provide for the immediate 
temporarily suspension of a license if the licensee is charged with certain felonies; and authorize 
the DFS to adopt rules. 
 
Section 47 amends s. 634.321, F.S., to add grounds for discretionary disciplinary actions against 
a home warranty association sales representative; require a sales representative to report any 
action taken against the sales representative relating to the business of insurance; and authorize 
the DFS to adopt rules. 
 
Section 48 amends s. 634.419, F.S., to provide that specified home solicitation sale 
requirements, ss. 501.021-501.055. F.S., do not apply to persons or entities licensed and 
appointed, or their affiliates, which solicit the sale of a service warranty or related service or 
product in connection with a prearranged appointment at the request of the consumer. 
 
Section 49 amends s. 634.422, F.S., to revise grounds for compulsory disciplinary actions by the 
DFS against service warranty association sales representatives; require the DFS to immediately 
temporarily suspend a license or appointment under certain circumstances; prohibit a person 
from transacting insurance business after such suspension; and authorize the DFS to adopt rules. 
 
Section 50 amends s. 634.423, F.S., to add grounds for discretionary disciplinary actions taken 
against a service warranty association sales representative for having been the subject of a 
violation of any federal or state securities or commodities law; provide for the immediate 
temporarily suspension of a license if the licensee is charged with certain felonies; and authorize 
the DFS to adopt rules.  
  BILL: CS/CS/CS/SB 1158   	Page 32 
 
Bail Bonds 
Section 51 amends and reorders s. 648.25, F.S., to provide a definition of “Appointment”; 
provides that a “Temporary bail bond agent” means a person licensed before January 1, 2024; 
provides that a temporary bail bond agent license expires 18 months after issuance and is no 
longer valid on or after June 30, 2025. 
 
Section 52 amends s. 648.26, F.S., to provide DFS has the authority to disclose the nature of a 
complaint to a licensee if the investigating officer deems such disclosure necessary to conduct 
the investigation. Additionally, the bill permits the DFS to update the complainant about the 
status and outcome of a complaint, and to share information with law enforcement and 
regulatory agencies, as needed. 
 
Section 53 amends s. 648.27, F.S., to delete a provision relating to the continuance of a 
temporary bail bond agent license. 
 
Section 54 amends s. 648.285, F.S., to provide bail bond agencies be licensed rather than 
registered; a person may not control or manage a bail bond agency unless the person has been 
engaged as a bail bond agent for the preceding 24 months; provides application requirements for 
bail bond agency licenses; a bail bond agency that holds a current valid registration will have its 
registration automatically converted to a license on July 1, 2024; and provides s. 112.011, F.S., 
relating to disqualification from licensing and public employment based on criminal conviction, 
does not apply to bail bond agencies or to applicants for licensure as bail bond agencies. 
 
Section 55 amends s. 648.30, F.S., to provide a bail bond agent may not sell a bail bond issued 
by an insurer for which the agent and the agent’s bail bond agency do not hold a current 
appointment. The bill prohibits the performance of any of the functions of a bail bond agency 
without a bail bond agency license. 
 
Section 56 amends s. 648.31, F.S., to conform to changes made by the bill and to provide there is 
no fee for the issuance of any appointment to a bail bond agency. 
 
Section 57 amends s. 648.34, F.S., to conform to changes made by the bill and to revise 
qualifications for a bail bond agent license to require, within two years immediately before 
applying for the license, the completion of a basic criminal justice certification course which 
consists of at least 120 hours of classroom instruction with a passing grade of at least 80 percent 
and has successfully completed a correspondence course for bail bond agents approved by the 
DFS. 
 
Section 58 amends s. 648.355, F.S., to delete provisions relating to temporary bail bond agents 
and preserve the rights of persons who currently hold the temporary bail bond agent license; 
effective July 1, 2023, such persons would be eligible to take the bail bond agent’s licensure 
exam and apply for licensure as a bail bond agent or professional bail bond agent. A temporary 
bail bond agent license that expires, or is terminated or suspended or revoked, would not be 
renewed or reinstated. 
  BILL: CS/CS/CS/SB 1158   	Page 33 
 
Section 59 amends s. 648.382, F.S., to provide, effective July 1, 2025, each insurer or managing 
general agent appointing a bail bond agency in this state must file the appointment with the DFS; 
an appointed entity must hold a valid bail bond agency’s license. The bill requires the appointing 
entity to certify it obtained a sworn attestation of compliance from the appointed agency.  
 
Section 60 amends s. 648.386, F.S., to add the words “classroom instruction” to the continuing 
education requirements, to ensure bail bond agents are taking the required hours of continuing 
education in the presence of a supervising instructor. Instruction must be provided in real time, 
but the bill states that students may attend continuing education classes through video, webcast, 
or other virtual means. Revises schools and curriculum for continuing education schools to 
require three classroom-instruction continuing education classes per calendar year. 
 
Section 61 amends s. 648.387, F.S., to rename primary bail bond agents as bail bond agents in 
charge; requires the bail bond agency to designate another bail bond agent in charge within 
10 days of a vacancy. 
 
Section 62 creates s. 648.3875, F.S., to provide requirements for applying for designation as a 
bail bond agent in charge. 
 
Sections 63, 65, 66, 67, 69, 70 and 71, amend ss. 648.39, 648.42, 648.44, 648.441, 648.50, and 
843.021, F.S., respectively, to make conforming and technical changes relating to bail bonds. 
 
Section 64 repeals s. 648.41, F.S., relating to the termination of appointment of temporary bail 
bond agents. 
 
Section 68 amends s. 648.46(3), F.S., to provide the subsection does not prevent the DFS or the 
OIR from disclosing the complaint or such information as it deems necessary to conduct the 
investigation or to update the complainant or to share such information with any law 
enforcement agency or other regulatory body. 
 
Section 76 amends s. 903.28, F.S., relating to the conditions for remission of forfeiture to 
provide within two years after the date of forfeiture, if the state is unwilling to seek extradition of 
the defendant after a request by the surety agent or the surety company, and provided the agent 
or company consents to pay all costs incurred in returning the defendant to the jurisdiction of the 
court up to the penal amount of the bond, the court shall direct remission of 100 percent of the 
forfeiture. 
 
Florida Disposition of Unclaimed Property Act 
Section 70 amends s. 717.135, F.S., within the Florida Disposition of Unclaimed Property Act, 
relating to recovery agreements and purchase agreements for claims filed by a claimant’s 
representative to provide that the section does not prohibit lawful nonagreement, noncontractual, 
or advertising communications between or among the parties.  
  BILL: CS/CS/CS/SB 1158   	Page 34 
 
Conforming Provisions 
Sections 72 through 74 amend ss. 631.152, 631.398, and 903.09, F.S., respectively, to make 
conforming and technical changes. 
 
Rule Ratification 
Section 75 ratifies Rule 69L-7.020, Florida Administrative Code, relating to the Florida 
Workers’ Compensation Health Care Provider Reimbursement Manual, Rule 69L-7.730, Florida 
Administrative Code, titled “Health Care Provider Medical Billing and Reporting 
Responsibilities”; and Rule 7.740, Florida Administrative Code, titled “Insurer Authorization 
and Medical Bill Review Responsibilities”. The bill meets the condition for effectiveness 
imposed by s. 120.541(3), F.S. The bill expressly limits ratification to the effectiveness of the 
rule. The bill provides this section will not be codified in the Florida Statutes but only noted in 
the historical comments to each rule by the Department of State.  
 
Effective Date 
Section 76 provides except as otherwise expressed in the bill, the bill takes effect upon becoming 
a law. 
IV. Constitutional Issues: 
A. Municipality/County Mandates Restrictions: 
None. 
B. Public Records/Open Meetings Issues: 
None. 
C. Trust Funds Restrictions: 
None. 
D. State Tax or Fee Increases: 
None. 
E. Other Constitutional Issues: 
None. 
V. Fiscal Impact Statement: 
A. Tax/Fee Issues: 
The bill eliminates certain fees related to application and license fees, which may reduce 
revenues an indeterminate, but likely insignificant, amount.  BILL: CS/CS/CS/SB 1158   	Page 35 
 
B. Private Sector Impact: 
The rule ratification of the Florida Workers’ Compensation Health Care Provider Manual 
is estimated to increase workers’ compensation system costs by 0.2 percent (eight million 
dollars).
149
 However, these monies will be in the form of higher reimbursements to health 
care providers.
150
 
 
The rule ratification relating to “Health Care Provider Medical Billing and Reporting 
Responsibilities” and “Insurer Authorization and Medical Bill Review Responsibilities”, 
is estimated to increase workers’ compensation system costs by $8.6 million over each of 
the next five years. 
 
The bill requires motor vehicle insurers to bear the entire cost of mediation. It makes 
various other changes that have an indeterminate, negative fiscal impact. 
C. Government Sector Impact: 
The bill makes numerous changes that will require systems and process changes in the 
Department of Financial Services (DFS) and other agencies. 
 
The bill eliminates certain application and license fees that may reduce revenues an 
indeterminate, but likely insignificant, amount. 
 
In its analysis of SB 1274 (2022), relating to ratification of Rule 69L-7.020, F.A.C., 
“Florida Workers’ Compensation Health Care Provider Reimbursement Manual” 
(Manual), the DFS estimates the adoption of the Manual will have the following 
recurring financial impact on the workers’ compensation expenses of the Division of Risk 
Management: 
 $232,400 in Fiscal Year 2022-2023; 
 $235,000 in Fiscal Year 2023-2024; and 
 $235,800 in Fiscal Year 2024-2025.
151
 
 
The DFS has also promulgated two additional rules that meet the threshold for legislative 
ratification. These are: 
 Rule 69L-7.730, Florida Administrative Code, titled “Health Care Provider Medical 
Billing and Reporting Responsibilities”; and 
 Rule 7.740, Florida Administrative Code, titled “Insurer Authorization and Medical 
Bill Review Responsibilities”. 
 
According to the SERC relating to the ratification of Rule 69L-7.730, Florida 
Administrative Code, titled “Health Care Provider Medical Billing and Reporting 
Responsibilities” and Rule 7.740, Florida Administrative Code, titled “Insurer 
                                                
149
 Florida Department of Financial Services, Statement of Estimated Regulatory Costs Rule 69L-7.020, F.A.C. (Nov. 2021) 
(on file with the Senate Committee on Agriculture, Environment, and General Government). 
150
 Id. 
151
 Department of Financial Services, Bill Analysis for SB 1274 (Jan. 11, 2022) (on file with Senate Appropriations 
Committee on Agriculture, Environment, and General Government).  BILL: CS/CS/CS/SB 1158   	Page 36 
 
Authorization and Medical Bill Review Responsibilities”, the impact is projected to result 
in increased costs to the workers’ compensation system of $8.6 million over each of the 
next five years. 
 
Inasmuch as the DFS expands the scope of reportable and investigable acts under the 
Anti-Fraud Reward Program, the DFS may see an increase in reward payouts; 
particularly with the removal of the provision requiring a conviction in order for the 
informant to receive a reward.  
 
In order to carry out the provisions of Section 36, the DFS may designate an entity or 
person to serve as an administrator by means of a written contract or agreement. In the 
event the DFS contracts with a private sector provider, the DFS may incur expenses 
related to administration of the Motor Vehicle Mediation Claims Insurance Program. 
VI. Technical Deficiencies: 
None. 
VII. Related Issues: 
None. 
VIII. Statutes Affected: 
This bill substantially amends the following sections of the Florida Statutes: 20.121, 112.215, 
215.55952, 274.01, 440.13, 440.385, 497.005, 624.1265, 624.501, 626.015, 626.171, 626.173, 
626.207, 626.221, 626.2815, 626.321, 626.611, 626.621, 626.7492, 626.752, 626.785, 626.793, 
626.837, 626.8411, 626.8437, 626.844, 626.8473, 626.854, 626.874, 626.9892, 626.9957, 
627.351, 627.4215, 627.7015, 627.7074, 627.745, 631.141, 631.252, 631.56, 631.716, 631.816, 
631.912, 634.181, 634.191, 634.320, 634.321, 634.419, 634.422, 634.423, 648.25, 648.26, 
648.27, 648.285, 648.30, 648.31, 648.34, 648.355, 648.382, 648.386, 648.387, 648.39, 648.42, 
648.44, 648.441, 648.46, 648.50, 717.135, 843.021, 631.152, 631.398, and 903.09. 
 
This bill creates the following sections of the Florida Statutes: 633.1423 and 648.3875. 
 
This bill repeals section 648.41 of the Florida Statutes. 
IX. Additional Information: 
A. Committee Substitute – Statement of Changes:  
(Summarizing differences between the Committee Substitute and the prior version of the bill.) 
CS by Fiscal Policy Committee on April 20, 2023: 
The committee substitute amendment clarifies that a claim is eligible for mediation once 
the insurer complies with the requirement to pay or deny the claim within 90 days after 
the insurer receives the claim or elects to reinspect. If the insurer has not complied or 
elected to reinspect within 90 days, the insurer may not require mediation. 
  BILL: CS/CS/CS/SB 1158   	Page 37 
 
CS by Appropriations Committee on Agriculture, Environment, and General 
Government on April 12, 2023: 
The committee substitute: 
 Removes the following sections from the bill: 
o Section 2 – Financial Literacy, s. 39.6035, F.S.;  
o Section 4 – Prompt Pay, s. 215.422, F.S.; 
o Section 6 – Financial Literacy, s. 409.1451, F.S.; 
o Section 8 – Certificate of Insurance change, s. 440.38, F.S.; 
o Section 36 – Loss Assessment, s. 627.70132, F.S.; 
o Section 39 – Loss Assessment, s. 627.714, F.S.; 
o Section 76 – Bail Bonds two years/deceased, s. 903.28, F.S.; 
o Section 77 – cross-reference update, s. 28.2221, F.S.; and 
o Section 78 – cross-reference update, s. 119.071, F.S. 
 Repeals s. 215.55952, F.S., relating to a required annual report on the economic 
impact of a 1-in-100-year hurricane; 
 Provides the appointments made by the Chief Financial Officer are deemed to be 
within the scope of the exemption provided in s. 112.313(7)(b), F.S., which allows a 
public officer or employee to practice in a particular profession or occupation when 
such practice is required or permitted by law; 
 Revises definitions relating to the regulation of funeral, cemetery, and consumer 
services; and 
 Adds two rules for ratification: 
o Rule 69L-7.730, Florida Administrative Code, titled “Health Care Provider 
Medical Billing and Reporting Responsibilities”; and  
o Rule 7.740, Florida Administrative Code, titled “Insurer Authorization and 
Medical Bill Review Responsibilities”. 
 
CS by Banking and Insurance Committee on March 22, 2023: 
The committee substitute makes the following changes: 
 Provides that in Workers’ Compensation cases, if there is disagreement in the 
opinions of health care providers, the judge of compensation claims may, rather than 
shall, order the injured employee to be evaluated by an expert medical advisor. 
 Provides that any form used by the DFS to show proof of Workers’ Compensation 
coverage must contain: 
o The governing class code or codes; 
o Payroll information; and 
o The total number of employees covered by the workers’ compensation insurance 
policy. 
 Removes provisions from the bill limiting members of various appointed entities to 
terms of no more than eight consecutive years. 
 Removes section 25 of the bill defining the term “real estate closing transaction” for 
title agents. 
 Removes the requirement for a conviction in order to receive a reward under the Anti-
Fraud Reward Program.  BILL: CS/CS/CS/SB 1158   	Page 38 
 
 Allows the Department of Financial Services (DFS) to designate an administrator to 
carry out the alternative procedure for resolution of disputed sinkhole insurance 
claims. 
 Adds a Sunset repeal date to the State Fire Marshall Direct Support Organization 
created in the bill. 
 Removes provisions authorizing the DFS to issue a home warranty sales 
representative license or a service warranty sales representative license to a 
nonresident applicant if the applicant is licensed as such in the applicant’s home state. 
 Removes provisions relating to a service warranty association’s outstanding debt 
obligation. 
 Removes the proposed revision to the definition of the term “manufacturer” for 
service warranty associations. 
 Provides there is no fee for the issuance of any appointment to a bail bond agency. 
 Provides that the provisions restricting recovery agreements and purchase agreements 
for claims filed by a claimant’s representative do not prohibit lawful nonagreement, 
noncontractual, or advertising communications between or among the parties. 
 Revises remission of forfeiture provisions. 
 Revises wording in several sections of the bill for greater clarity. 
B. Amendments: 
None. 
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.