Florida Senate - 2023 CS for CS for SB 1398 By the Appropriations Committee on Agriculture, Environment, and General Government; the Committee on Banking and Insurance; and Senator DiCeglie 601-03987A-23 20231398c2 1 A bill to be entitled 2 An act relating to consumer protection; amending s. 3 494.001, F.S.; revising the definition of the term 4 branch office; defining the term remote location; 5 authorizing a licensee under ch. 494, F.S., to allow 6 loan originators to work from remote locations if 7 specified conditions are met; amending s. 494.0067, 8 F.S.; specifying that mortgage lenders may transact 9 business from branch offices and remote locations; 10 providing a requirement for operating remote 11 locations; creating s. 501.2042, F.S.; defining terms; 12 providing requirements for crowd-funding platforms and 13 organizers of crowd-funding campaigns related to and 14 arising out of declared disasters; amending s. 520.23, 15 F.S.; revising disclosure requirements for agreements 16 governing the sale or lease of a distributed energy 17 generation system; amending s. 560.111, F.S.; 18 providing a criminal penalty; amending s. 560.309, 19 F.S.; prohibiting a licensee under ch. 560, F.S., from 20 cashing corporate checks for certain payees where the 21 aggregate face amount exceeds a specified amount; 22 amending s. 626.602, F.S.; providing applicability of 23 provisions relating to the disapproval of insurance 24 agency names to adjusting firm names; revising grounds 25 on which such names may be disapproved by the 26 Department of Financial Services; deleting an obsolete 27 provision; amending s. 626.854, F.S.; revising the 28 definition of the term public adjuster; specifying 29 restrictions on public adjusters contracting their 30 adjuster services after a specified date; specifying 31 requirements for the payment of certain fees; 32 specifying timeframes in which an insured or a 33 claimant may cancel a public adjusters contract 34 without penalty or contract under certain 35 circumstances; revising requirements for public 36 adjusters contracts; specifying additional 37 limitations on things of value received by public 38 adjusters; amending s. 626.860, F.S.; providing that 39 an attorneys exemption from public adjuster licensure 40 requirements does not apply to certain persons; 41 amending s. 626.875, F.S.; revising recordkeeping 42 requirements for appointed independent adjusters and 43 licensed public adjusters; amending s. 626.8796, F.S.; 44 revising requirements for public adjuster contracts; 45 specifying requirements for and prohibitions on public 46 adjusters relating to such contracts; providing 47 construction; authorizing the department to adopt 48 rules; amending s. 626.8797, F.S.; revising a fraud 49 statement requirement in proof-of-loss statements; 50 amending s. 626.9541, F.S.; adding an unfair or 51 deceptive insurance act relating to health insurance 52 policies; amending s. 627.4025, F.S.; revising the 53 definition of the term hurricane, and defining the 54 term hurricane deductible, as used in policies 55 providing residential coverage; amending s. 627.4133, 56 F.S.; revising conditions that apply to a specified 57 notice requirement for, and a limitation on, the 58 cancellation or termination of certain insurance 59 policies; amending s. 627.4554, F.S.; revising 60 legislative purpose; revising applicability; revising 61 and defining terms; revising and specifying duties of 62 insurers and agents relating to the recommendation and 63 sale of annuity investments; specifying comparable 64 standards that comply with such requirements; 65 specifying agent training requirements; providing and 66 revising construction; authorizing the department to 67 adopt certain forms by rule; amending s. 627.70132, 68 F.S.; specifying the period in which notices of loss 69 assessment claims under residential condominium unit 70 owner coverage must be given to the insurer; amending 71 s. 634.041, F.S.; specifying authorized methods by 72 which contractual liability insurance policies of 73 service agreement companies may pay claims; amending 74 s. 634.401, F.S.; revising the definition of the term 75 manufacturer for purposes of part III of ch. 634, 76 F.S.; amending s. 634.406, F.S.; deleting a debt 77 obligation rating requirement for certain service 78 warranty associations or parent corporations; 79 providing effective dates. 80 81 Be It Enacted by the Legislature of the State of Florida: 82 83 Section 1.Present subsections (35) through (38) of section 84 494.001, Florida Statutes, are redesignated as subsections (36) 85 through (39), respectively, a new subsection (35) is added to 86 that section, and subsection (3) of that section is amended, to 87 read: 88 494.001Definitions.As used in this chapter, the term: 89 (3)Branch office means a location, other than a mortgage 90 brokers or mortgage lenders principal place of business or 91 remote location: 92 (a)The address of which appears on business cards, 93 stationery, or advertising used by the licensee in connection 94 with business conducted under this chapter; 95 (b)At which the licensees name, advertising or 96 promotional materials, or signage suggests that mortgage loans 97 are originated, negotiated, funded, or serviced; or 98 (c)At which mortgage loans are originated, negotiated, 99 funded, or serviced by a licensee. 100 (35)Remote location means a location, other than a 101 principal place of business or a branch office, at which a loan 102 originator of a licensee may conduct business. A licensee may 103 allow loan originators to work from remote locations if: 104 (a)The licensee has written policies and procedures for 105 supervision of loan originators working from remote locations. 106 (b)Access to company platforms and customer information is 107 in accordance with the licensees comprehensive written 108 information security plan. 109 (c)An in-person customer interaction does not occur at a 110 loan originators residence unless such residence is a licensed 111 location. 112 (d)Physical records are not maintained at a remote 113 location. 114 (e)Customer interactions and conversations about consumers 115 will be in compliance with federal and state information 116 security requirements, including applicable provisions under the 117 Gramm-Leach-Bliley Act and the Safeguards Rule established by 118 the Federal Trade Commission, set forth at 16 C.F.R. part 314, 119 as such requirements may be amended from time to time. 120 (f)A loan originator working at a remote location accesses 121 the companys secure systems or documents, including a cloud 122 based system, directly from any out-of-office device such as a 123 laptop, phone, desktop computer, or tablet, through a virtual 124 private network or system that ensures secure connectivity and 125 that requires passwords or other forms of authentication to 126 access. 127 (g)The licensee ensures that appropriate security updates, 128 patches, or other alterations to the security of all devices 129 used at remote locations are installed and maintained. 130 (h)The licensee is able to remotely lock or erase company 131 related contents of any device or otherwise remotely limit all 132 access to a companys secure systems. 133 (i)The registrys record of a loan originator who works 134 from a remote location designates the principal place of 135 business as the loan originators registered location, or the 136 loan originator has elected a licensed branch office as a 137 registered location. 138 Section 2.Subsection (1) of section 494.0067, Florida 139 Statutes, is amended to read: 140 494.0067Requirements of mortgage lenders. 141 (1)A mortgage lender that makes mortgage loans on real 142 estate in this state shall transact business from a principal 143 place of business, branch office, or remote location. Each 144 principal place of business, and each branch office, and remote 145 location shall be operated under the full charge, control, and 146 supervision of the licensee pursuant to this part. 147 Section 3.Section 501.2042, Florida Statutes, is created 148 to read: 149 501.2042Unlawful acts and practices by online crowd 150 funding campaigns. 151 (1)As used in this section, the term: 152 (a)Crowd-funding campaign means an online fundraising 153 initiative that is intended to receive monetary donations from 154 donors and is created by an organizer in the interest of a 155 beneficiary. 156 (b)Crowd-funding platform means an entity doing business 157 in this state which provides an online medium for the creation 158 and facilitation of a crowd-funding campaign. 159 (c)Disaster has the same meaning as in s. 252.34(2). 160 (d)Organizer means a person who: 161 1.Resides or is domiciled in this state; and 162 2.Has an account on a crowd-funding platform and has 163 created a crowd-funding campaign either as a beneficiary or on 164 behalf of a beneficiary, regardless of whether the beneficiary 165 or the crowd-funding campaign has received donations. 166 (2)For crowd-funding campaigns related to and arising out 167 of a declared disaster, a crowd-funding platform must: 168 (a)Collect and retain, for one year after the date of the 169 declared disaster, the name, e-mail address, phone number, and 170 state of residence of the organizer. 171 (b)Require the organizer to indicate, on the crowd-funding 172 campaign, the state in which they are located. 173 (c)Cooperate with any investigation by or in partnership 174 with law enforcement. 175 (d)Clearly display and direct donors to fundraisers that 176 comply with the crowd-funding platforms terms of service. 177 (3)When an organizer arranges a crowd-funding campaign 178 related to and arising out of a declared disaster, the organizer 179 must attest that: 180 (a)All information provided in connection with a crowd 181 funding campaign is accurate, complete, and not likely to 182 deceive users. 183 (b)All donations contributed to the crowd-funding campaign 184 will be used solely as described in the materials the organizer 185 posts or provides on the crowd-funding platform. 186 Section 4.Section 520.23, Florida Statutes, is amended to 187 read: 188 520.23Disclosures required.Each agreement governing the 189 sale or lease of a distributed energy generation system shall, 190 at a minimum, include a written statement printed in at least 191 12-point type that is separate from the agreement, is separately 192 acknowledged by the buyer or lessee, and includes the following 193 information and disclosures, if applicable: 194 (1)The name, address, telephone number, and e-mail address 195 of the buyer or lessee. 196 (2)The name, address, telephone number, e-mail address, 197 and valid state contractor license number of the person 198 responsible for installing the distributed energy generation 199 system. 200 (3)The name, address, telephone number, e-mail address, 201 and valid state contractor license number of the distributed 202 energy generation system maintenance provider, if different from 203 the person responsible for installing the distributed energy 204 generation system. 205 (4)The customer contact center phone number for the 206 Department of Business and Professional Regulation. 207 (5)(4)A written statement indicating whether the 208 distributed energy generation system is being purchased or 209 leased. 210 (a)If the distributed energy generation system will be 211 leased, the written statement must include a disclosure in 212 substantially the following form: You are entering into an 213 agreement to lease a distributed energy generation system. You 214 will lease (not own) the system installed on your property. 215 (b)If the distributed energy generation system will be 216 purchased, the written statement must include a disclosure in 217 substantially the following form: You are entering into an 218 agreement to purchase a distributed energy generation system. 219 You will own (not lease) the system installed on your property. 220 (6)(5)The total cost to be paid by the buyer or lessee, 221 including any interest, installation fees, document preparation 222 fees, service fees, or other fees. 223 (7)(6)A payment schedule, including any amounts owed at 224 contract signing, at the commencement of installation, at the 225 completion of installation, and any final payments. If the 226 distributed energy generation system is being leased, the 227 written statement must include the frequency and amount of each 228 payment due under the lease and the total estimated lease 229 payments over the term of the lease. 230 (8)(7)Each state or federal tax incentive or rebate, if 231 any, relied upon by the seller in determining the price of the 232 distributed energy generation system. 233 (9)(8)A description of the assumptions used to calculate 234 any savings estimates provided to the buyer or lessee, and if 235 such estimates are provided, a statement in substantially the 236 following form: It is important to understand that future 237 electric utility rates are estimates only. Your future electric 238 utility rates may vary. 239 (10)(9)A description of any one-time or recurring fees, 240 including, but not limited to, estimated system removal fees, 241 maintenance fees, Internet connection fees, and automated 242 clearinghouse fees. If late fees may apply, the description must 243 describe the circumstances triggering such late fees. 244 (11)(10)A statement notifying the buyer whether the 245 distributed energy generation system is being financed and, if 246 so, a statement in substantially the following form: If your 247 system is financed, carefully read any agreements and/or 248 disclosure forms provided by your lender. This statement does 249 not contain the terms of your financing agreement. If you have 250 any questions about your financing agreement, contact your 251 finance provider before signing a contract. 252 (12)(11)A statement notifying the buyer whether the seller 253 is assisting in arranging financing of the distributed energy 254 generation system and, if so, a statement in substantially the 255 following form: If your system is financed, carefully read any 256 agreements and/or disclosure forms provided by your lender. This 257 statement does not contain the terms of your financing 258 agreement. If you have any questions about your financing 259 agreement, contact your finance provider before signing a 260 contract. 261 (13)(12)A provision notifying the buyer or lessee of the 262 right to rescind the agreement for a period of at least 3 263 business days after the agreement is signed. This subsection 264 does not apply to a contract to sell or lease a distributed 265 energy generation system in a solar community in which the 266 entire community has been marketed as a solar community and all 267 of the homes in the community are intended to have a distributed 268 energy generation system, or a solar community in which the 269 developer has incorporated solar technology for purposes of 270 meeting the Florida Building Code in s. 553.73. 271 (14)(13)A description of the distributed energy generation 272 system design assumptions, including the make and model of the 273 major components, system size, estimated first-year energy 274 production, and estimated annual energy production decreases, 275 including the overall percentage degradation over the estimated 276 life of the distributed energy generation system, and the status 277 of utility compensation for excess energy generated by the 278 system at the time of contract signing. A seller who provides a 279 warranty or guarantee of the energy production output of the 280 distributed energy generation system may provide a description 281 of such warranty or guarantee in lieu of a description of the 282 system design and components. 283 (15)(14)A description of any performance or production 284 guarantees. 285 (16)(15)A description of the ownership and transferability 286 of any tax credits, rebates, incentives, or renewable energy 287 certificates associated with the distributed energy generation 288 system, including a disclosure as to whether the seller will 289 assign or sell any associated renewable energy certificates to a 290 third party. 291 (17)(16)A statement in substantially the following form: 292 You are responsible for property taxes on property you own. 293 Consult a tax professional to understand any tax liability or 294 eligibility for any tax credits that may result from the 295 purchase of your distributed energy generation system. 296 (18)(17)The approximate start and completion dates for the 297 installation of the distributed energy generation system. 298 (19)(18)A disclosure as to whether maintenance and repairs 299 of the distributed energy generation system are included in the 300 purchase price. 301 (20)(19)A disclosure as to whether any warranty or 302 maintenance obligations related to the distributed energy 303 generation system may be sold or transferred by the seller to a 304 third party and, if so, a statement in substantially the 305 following form: Your contract may be assigned, sold, or 306 transferred without your consent to a third party who will be 307 bound to all the terms of the contract. If a transfer occurs, 308 you will be notified if this will change the address or phone 309 number to use for system maintenance or repair requests. 310 (21)(20)If the distributed energy generation system will 311 be purchased, a disclosure notifying the buyer of the 312 requirements for interconnecting the system to the utility 313 system. 314 (22)(21)A disclosure notifying the buyer or lessee of the 315 party responsible for obtaining interconnection approval. 316 (23)(22)A description of any roof warranties. 317 (24)A statement in substantially the following form: You 318 should consider the age and remaining life of your roof prior to 319 installing a distributed energy generation system. Replacement 320 of your roof may require reinstallment of the distributed energy 321 generation system. 322 (25)(23)A disclosure notifying the lessee whether the 323 seller will insure a leased distributed energy generation system 324 against damage or loss and, if applicable, the circumstances 325 under which the seller will not insure the system against damage 326 or loss. 327 (26)(24)A statement, if applicable, in substantially the 328 following form: You are responsible for obtaining insurance 329 policies or coverage for any loss of or damage to the system. 330 Consult an insurance professional to understand how to protect 331 against the risk of loss or damage to the system. 332 (27)A statement in substantially the following form: 333 Placing a distributed energy generation system on your roof may 334 impact your future insurance premiums. You are responsible for 335 contacting your insurance carrier, prior to entering into a 336 purchase or lease agreement, to confirm whether your current 337 policy or coverage will need to be modified upon installing the 338 distributed energy generation system onto your dwelling. 339 (28)(25)A disclosure notifying the buyer or lessee whether 340 the seller or lessor will place a lien on the buyers or 341 lessees home or other property as a result of entering into a 342 purchase or lease agreement for the distributed energy 343 generation system. 344 (29)(26)A disclosure notifying the buyer or lessee whether 345 the seller or lessor will file a fixture filing or a State of 346 Florida Uniform Commercial Code Financing Statement Form (UCC-1) 347 on the distributed energy generation system. 348 (30)(27)A disclosure identifying whether the agreement 349 contains any restrictions on the buyers or lessees ability to 350 modify or transfer ownership of a distributed energy generation 351 system, including whether any modification or transfer is 352 subject to review or approval by a third party. 353 (31)(28)A disclosure as to whether the lease agreement may 354 be transferred to a purchaser upon sale of the home or real 355 property to which the system is affixed, and any conditions for 356 such transfer. 357 (32)(29)A blank section that allows the seller to provide 358 additional relevant disclosures or explain disclosures made 359 elsewhere in the disclosure form. 360 361 The requirement to provide a written statement under this 362 section may be satisfied by the electronic delivery of a 363 document within 24 hours after execution of the written 364 statement containing the required statement if the intended 365 recipient of the electronic document affirmatively acknowledges 366 its receipt. An electronic document satisfies the font and other 367 formatting standards required for the written statement if the 368 format and the relative size of characters of the electronic 369 document are reasonably similar to those required in the written 370 document or if the information is otherwise displayed in a 371 reasonably conspicuous manner. 372 Section 5.Subsection (6) of section 560.111, Florida 373 Statutes, is amended to read: 374 560.111Prohibited acts. 375 (6)A person who knowingly and willfully violates s. 376 560.309(11) or s. 560.310(2)(d) commits a felony of the third 377 degree, punishable as provided in s. 775.082, s. 775.083, or s. 378 775.084. 379 Section 6.Subsection (11) is added to section 560.309, 380 Florida Statutes, to read: 381 560.309Conduct of business. 382 (11)A licensee may not cash corporate checks where the 383 aggregate face amount of all corporate checks cashed for each 384 payee exceeds 200 percent of the payees workers compensation 385 policy payroll amount during the same dates as the workers 386 compensation policy coverage period. 387 Section 7.Section 626.602, Florida Statutes, is amended to 388 read: 389 626.602Insurance agency and adjusting firm names; 390 disapproval.The department may disapprove the use of any true 391 or fictitious name, other than the bona fide natural name of an 392 individual, by any insurance agency or adjusting firm on any of 393 the following grounds: 394 (1)The name interferes with or is too similar to a name 395 already filed and in use by another agency, adjusting firm, or 396 insurer. 397 (2)The use of the name may mislead the public in any 398 respect. 399 (3)The name states or implies that the agency or adjusting 400 firm is an insurer, motor club, hospital service plan, state or 401 federal agency, charitable organization, or entity that 402 primarily provides advice and counsel rather than sells or 403 solicits insurance, settles claims, or is entitled to engage in 404 insurance activities not permitted under licenses held or 405 applied for. This provision does not prohibit the use of the 406 word state or states in the name of the agency. The use of 407 the word state or states in the name of an agency or 408 adjusting firm does not in and of itself imply that the agency 409 or adjusting firm is a state agency. 410 (4)The name contains the word Medicare or Medicaid. An 411 insurance agency whose name contains the word Medicare or 412 Medicaid but which is licensed as of July 1, 2021, may 413 continue to use that name until June 30, 2023, provided that the 414 agencys license remains valid. If the agencys license expires 415 or is suspended or revoked, the agency may not be relicensed 416 using that name. Licenses for agencies with names containing 417 either of these words automatically expire on July 1, 2023, 418 unless these words are removed from the name. 419 Section 8.Section 626.854, Florida Statutes, is amended to 420 read: 421 626.854Public adjuster defined; prohibitions.The 422 Legislature finds that it is necessary for the protection of the 423 public to regulate public insurance adjusters and to prevent the 424 unauthorized practice of law. 425 (1)A public adjuster is any person, except a duly 426 licensed attorney at law as exempted under s. 626.860, who, for 427 money, commission, or any other thing of value, directly or 428 indirectly prepares, completes, or files an insurance claim for 429 an insured or third-party claimant, regardless of how that 430 person describes or presents his or her services, or who, for 431 money, commission, or any other thing of value, acts on behalf 432 of, or aids an insured or third-party claimant in negotiating 433 for or effecting the settlement of a claim or claims for loss or 434 damage covered by an insurance contract, regardless of how that 435 person describes or presents his or her services, or who 436 advertises for employment as an adjuster of such claims. The 437 term also includes any person who, for money, commission, or any 438 other thing of value, directly or indirectly solicits, 439 investigates, or adjusts such claims on behalf of a public 440 adjuster, an insured, or a third-party claimant. The term does 441 not include a person who photographs or inventories damaged 442 personal property or business personal property or a person 443 performing duties under another professional license, if such 444 person does not otherwise solicit, adjust, investigate, or 445 negotiate for or attempt to effect the settlement of a claim. 446 (2)This definition does not apply to: 447 (a)A licensed health care provider or employee thereof who 448 prepares or files a health insurance claim form on behalf of a 449 patient. 450 (b)A licensed health insurance agent who assists an 451 insured with coverage questions, medical procedure coding 452 issues, balance billing issues, understanding the claims filing 453 process, or filing a claim, as such assistance relates to 454 coverage under a health insurance policy. 455 (c)A person who files a health claim on behalf of another 456 and does so without compensation. 457 (3)A public adjuster may not give legal advice or act on 458 behalf of or aid any person in negotiating or settling a claim 459 relating to bodily injury, death, or noneconomic damages. 460 (4)For purposes of this section, the term insured 461 includes only the policyholder and any beneficiaries named or 462 similarly identified in the policy. 463 (5)A public adjuster may not directly or indirectly 464 through any other person or entity solicit an insured or 465 claimant by any means except on Monday through Saturday of each 466 week and only between the hours of 8 a.m. and 8 p.m. on those 467 days. 468 (6)When entering a contract for adjuster services after 469 July 1, 2023, a public adjuster: 470 (a)May not collect a fee for services on payments made to 471 a named insured unless they have a written contract with the 472 named insured or the named insureds legal representative. 473 (b)May not contract for services to be provided by a third 474 party on behalf of the named insured or in pursuit of settlement 475 of the named insureds claim, if the cost of those services is to 476 be borne by the named insured, unless the named insured agrees 477 in writing to procure these services and such agreement is 478 entered into subsequent to the date of the contract for public 479 adjusting services. 480 (c)If a public adjuster contracts with a third-party 481 service provider to assist with the settlement of the named 482 insureds claim, without first obtaining the insureds written 483 consent, payment of the third partys fees must be made by the 484 public adjuster and may not be charged back to the named 485 insured. 486 (d)If a public adjuster represents anyone other than the 487 named insured in a claim, the public adjuster fees shall be paid 488 by the third party and may not be charged back to the named 489 insured. 490 (7)(6)An insured or claimant may cancel a public 491 adjusters contract to adjust a claim without penalty or 492 obligation within 10 days after the date on which the contract 493 is executed. If the contract was entered into based on events 494 that are the subject of a declaration of a state of emergency by 495 the Governor, an insured or claimant may cancel the public 496 adjusters contract to adjust a claim without penalty or 497 obligation within 30 days after the date of loss or 10 days 498 after the date on which the contract is executed, whichever is 499 longer. The public adjusters contract must contain the 500 following language in minimum 18-point bold type immediately 501 before the space reserved in the contract for the signature of 502 the insured or claimant: You, the insured, may cancel this 503 contract for any reason without penalty or obligation to you 504 within 10 days after the date of this contract. If this contract 505 was entered into based on events that are the subject of a 506 declaration of a state of emergency by the Governor, you may 507 cancel this contract for any reason without penalty or 508 obligation to you within 30 days after the date of loss or 10 509 days after the date on which the contract is executed, whichever 510 is longer. You may also cancel the contract without penalty or 511 obligation to you if I, as your public adjuster, fail to provide 512 you and your insurer a copy of a written estimate within 60 days 513 of the execution of the contract, unless the failure to provide 514 the estimate within 60 days is caused by factors beyond my 515 control, in accordance with s. 627.70131(5)(a)2., Florida 516 Statutes. The 60-day cancellation period for failure to provide 517 a written estimate shall cease on the date I have provided you 518 with the written estimate. The by providing notice of 519 cancellation shall be provided to ...(name of public 520 adjuster)..., submitted in writing and sent by certified mail, 521 return receipt requested, or other form of mailing that provides 522 proof thereof, at the address specified in the contract. 523 (8)(7)It is an unfair and deceptive insurance trade 524 practice pursuant to s. 626.9541 for a public adjuster or any 525 other person to circulate or disseminate any advertisement, 526 announcement, or statement containing any assertion, 527 representation, or statement with respect to the business of 528 insurance which is untrue, deceptive, or misleading. 529 (a)The following statements, made in any public adjusters 530 advertisement or solicitation, are considered deceptive or 531 misleading: 532 1.A statement or representation that invites an insured 533 policyholder to submit a claim when the policyholder does not 534 have covered damage to insured property. 535 2.A statement or representation that invites an insured 536 policyholder to submit a claim by offering monetary or other 537 valuable inducement. 538 3.A statement or representation that invites an insured 539 policyholder to submit a claim by stating that there is no 540 risk to the policyholder by submitting such claim. 541 4.A statement or representation, or use of a logo or 542 shield, that implies or could mistakenly be construed to imply 543 that the solicitation was issued or distributed by a 544 governmental agency or is sanctioned or endorsed by a 545 governmental agency. 546 (b)For purposes of this paragraph, the term written 547 advertisement includes only newspapers, magazines, flyers, and 548 bulk mailers. The following disclaimer, which is not required to 549 be printed on standard size business cards, must be added in 550 bold print and capital letters in typeface no smaller than the 551 typeface of the body of the text to all written advertisements 552 by a public adjuster: 553 554 THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD 555 A CLAIM FOR AN INSURED PROPERTY LOSS OR DAMAGE AND YOU 556 ARE SATISFIED WITH THE PAYMENT BY YOUR INSURER, YOU 557 MAY DISREGARD THIS ADVERTISEMENT. 558 559 (9)(8)A public adjuster, a public adjuster apprentice, or 560 any person or entity acting on behalf of a public adjuster or 561 public adjuster apprentice may not give or offer to give a 562 monetary loan or advance to a client or prospective client. 563 (10)(9)A public adjuster, public adjuster apprentice, or 564 any individual or entity acting on behalf of a public adjuster 565 or public adjuster apprentice may not give or offer to give, 566 directly or indirectly, any article of merchandise having a 567 value in excess of $25 to any individual for the purpose of 568 advertising or as an inducement to entering into a contract with 569 a public adjuster. 570 (10)(11)(a)If a public adjuster enters into a contract 571 with an insured or claimant to reopen a claim or file a 572 supplemental claim that seeks additional payments for a claim 573 that has been previously paid in part or in full or settled by 574 the insurer, the public adjuster may not charge, agree to, or 575 accept from any source compensation, payment, commission, fee, 576 or any other thing of value based on a previous settlement or 577 previous claim payments by the insurer for the same cause of 578 loss. The charge, compensation, payment, commission, fee, or any 579 other thing of value must be based only on the claim payments or 580 settlements paid to the insured, exclusive of attorney fees and 581 costs, obtained through the work of the public adjuster after 582 entering into the contract with the insured or claimant. 583 Compensation for the reopened or supplemental claim may not 584 exceed 20 percent of the reopened or supplemental claim payment. 585 In no event shall the contracts described in this paragraph 586 exceed the limitations in paragraph (b). 587 (b)A public adjuster may not charge, agree to, or accept 588 from any source compensation, payment, commission, fee, or any 589 other thing of value in excess of: 590 1.Ten percent of the amount of insurance claim payments or 591 settlements, exclusive of attorney fees and costs, paid to the 592 insured by the insurer for claims based on events that are the 593 subject of a declaration of a state of emergency by the 594 Governor. This provision applies to claims made during the year 595 after the declaration of emergency. After that year, the 596 limitations in subparagraph 2. apply. 597 2.Twenty percent of the amount of insurance claim payments 598 or settlements, exclusive of attorney fees and costs, paid to 599 the insured by the insurer for claims that are not based on 600 events that are the subject of a declaration of a state of 601 emergency by the Governor. 602 3.One percent of the amount of insurance claim payments or 603 settlements, paid to the insured by the insurer for any coverage 604 part of the policy where the claim payment or written agreement 605 by the insurer to pay is equal to or greater than the policy 606 limit for that part of the policy, if the payment or written 607 commitment to pay is provided within 14 days after the date of 608 loss or within 10 days after the date on which the public 609 adjusting contract is executed, whichever is later. 610 4.Zero percent of the amount of insurance claim payments 611 or settlements, paid to the insured by the insurer for any 612 coverage part of the policy where the claim payment or written 613 agreement by the insurer to pay occurs before the date on which 614 the public adjusting contract is executed. 615 (c)Insurance claim payments made by the insurer do not 616 include policy deductibles, and public adjuster compensation may 617 not be based on the deductible portion of a claim. 618 (d)Public adjuster compensation may not be based on 619 amounts attributable to additional living expenses, unless such 620 compensation is affirmatively agreed to in a separate agreement 621 that includes a disclosure in substantially the following form: 622 I agree to retain and compensate the public adjuster for 623 adjusting my additional living expenses and securing payment 624 from my insurer for amounts attributable to additional living 625 expenses payable under the policy issued on my (home/mobile 626 home/condominium unit). 627 (e)Public adjuster rate of compensation may not be 628 increased based solely on the fact that the claim is litigated. 629 (f)Any maneuver, shift, or device through which the limits 630 on compensation set forth in this subsection are exceeded is a 631 violation of this chapter punishable as provided under s. 632 626.8698. 633 (12)(a)(11)Each public adjuster must provide to the 634 claimant or insured a written estimate of the loss to assist in 635 the submission of a proof of loss or any other claim for payment 636 of insurance proceeds within 60 days after the date of the 637 contract. The written estimate must include an itemized, per 638 unit estimate of the repairs, including itemized information on 639 equipment, materials, labor, and supplies, in accordance with 640 accepted industry standards. The public adjuster shall retain 641 such written estimate for at least 5 years and shall make the 642 estimate available to the claimant or insured, the insurer, and 643 the department upon request. 644 (b)An insured may cancel the contract with no additional 645 penalties or fees charged by the public adjuster if such an 646 estimate is not provided within 60 days after executing the 647 contract, subject to the cancellation notice requirement in this 648 section, unless the failure to provide the estimate within 60 649 days is caused by factors beyond the control of the public 650 adjuster. The cancellation period shall cease on the date the 651 public adjuster provides the written estimate to the insured. 652 (13)(12)A public adjuster, public adjuster apprentice, or 653 any person acting on behalf of a public adjuster or apprentice 654 may not accept referrals of business from any person with whom 655 the public adjuster conducts business if there is any form or 656 manner of agreement to compensate the person, directly or 657 indirectly, for referring business to the public adjuster. A 658 public adjuster may not compensate any person, except for 659 another public adjuster, directly or indirectly, for the 660 principal purpose of referring business to the public adjuster. 661 (14)(13)A company employee adjuster, independent adjuster, 662 attorney, investigator, or other persons acting on behalf of an 663 insurer that needs access to an insured or claimant or to the 664 insured property that is the subject of a claim must provide at 665 least 48 hours notice to the insured or claimant, public 666 adjuster, or legal representative before scheduling a meeting 667 with the claimant or an onsite inspection of the insured 668 property. The insured or claimant may deny access to the 669 property if the notice has not been provided. The insured or 670 claimant may waive the 48-hour notice. 671 (15)(14)The public adjuster must ensure that prompt notice 672 is given of the claim to the insurer, the public adjusters 673 contract is provided to the insurer, the property is available 674 for inspection of the loss or damage by the insurer, and the 675 insurer is given an opportunity to interview the insured 676 directly about the loss and claim. The insurer must be allowed 677 to obtain necessary information to investigate and respond to 678 the claim. 679 (a)The insurer may not exclude the public adjuster from 680 its in-person meetings with the insured. The insurer shall meet 681 or communicate with the public adjuster in an effort to reach 682 agreement as to the scope of the covered loss under the 683 insurance policy. The public adjuster shall meet or communicate 684 with the insurer in an effort to reach agreement as to the scope 685 of the covered loss under the insurance policy. This section 686 does not impair the terms and conditions of the insurance policy 687 in effect at the time the claim is filed. 688 (b)A public adjuster may not restrict or prevent an 689 insurer, company employee adjuster, independent adjuster, 690 attorney, investigator, or other person acting on behalf of the 691 insurer from having reasonable access at reasonable times to any 692 insured or claimant or to the insured property that is the 693 subject of a claim. 694 (c)A public adjuster may not act or fail to reasonably act 695 in any manner that obstructs or prevents an insurer or insurers 696 adjuster from timely conducting an inspection of any part of the 697 insured property for which there is a claim for loss or damage. 698 The public adjuster representing the insureds may be present for 699 the insurers inspection, but if the unavailability of the 700 public adjuster otherwise delays the insurers timely inspection 701 of the property, the public adjuster or the insureds must allow 702 the insurer to have access to the property without the 703 participation or presence of the public adjuster or insureds in 704 order to facilitate the insurers prompt inspection of the loss 705 or damage. 706 (16)(15)A licensed contractor under part I of chapter 489, 707 or a subcontractor of such licensee, may not advertise, solicit, 708 offer to handle, handle, or perform public adjuster services as 709 provided in subsection (1) unless licensed and compliant as a 710 public adjuster under this chapter. The prohibition against 711 solicitation does not preclude a contractor from suggesting or 712 otherwise recommending to a consumer that the consumer consider 713 contacting his or her insurer to determine if the proposed 714 repair is covered under the consumers insurance policy, except 715 as it relates to solicitation prohibited in s. 489.147. In 716 addition, the contractor may discuss or explain a bid for 717 construction or repair of covered property with the residential 718 property owner who has suffered loss or damage covered by a 719 property insurance policy, or the insurer of such property, if 720 the contractor is doing so for the usual and customary fees 721 applicable to the work to be performed as stated in the contract 722 between the contractor and the insured. 723 (17)(16)A public adjuster shall not acquire any interest 724 in salvaged property, except with the written consent and 725 permission of the insured through a signed affidavit. 726 (18)(17)A public adjuster, a public adjuster apprentice, 727 or a person acting on behalf of an adjuster or apprentice may 728 not enter into a contract or accept a power of attorney that 729 vests in the public adjuster, the public adjuster apprentice, or 730 the person acting on behalf of the adjuster or apprentice the 731 effective authority to choose the persons or entities that will 732 perform repair work in a property insurance claim or provide 733 goods or services that will require the insured or third-party 734 claimant to expend funds in excess of those payable to the 735 public adjuster under the terms of the contract for adjusting 736 services. 737 (19)(18)Subsections (5)-(18) (5)-(17) apply only to 738 residential property insurance policies and condominium unit 739 owner policies as described in s. 718.111(11). 740 (20)(19)Except as otherwise provided in this chapter, no 741 person, except an attorney at law or a licensed public adjuster, 742 may for money, commission, or any other thing of value, directly 743 or indirectly: 744 (a)Prepare, complete, or file an insurance claim for an 745 insured or a third-party claimant; 746 (b)Act on behalf of or aid an insured or a third-party 747 claimant in negotiating for or effecting the settlement of a 748 claim for loss or damage covered by an insurance contract; 749 (c)Offer to initiate or negotiate a claim on behalf of an 750 insured; 751 (d)Advertise services that require a license as a public 752 adjuster; or 753 (e)Solicit, investigate, or adjust a claim on behalf of a 754 public adjuster, an insured, or a third-party claimant. 755 (21)(20)The department may take administrative actions and 756 impose fines against any persons performing claims adjusting, 757 soliciting, or any other services described in this section 758 without the licensure required under this section or s. 626.112. 759 (22)(21)A public adjuster, public adjuster apprentice, or 760 public adjusting firm that solicits a claim and does not enter 761 into a contract with an insured or a third-party claimant 762 pursuant to paragraph (11)(a) (10)(a) may not charge an insured 763 or a third-party claimant or receive payment by any other source 764 for any type of service related to the insured or third-party 765 claimants claim. 766 (23)(a)(22)(a)Any following act by a public adjuster, a 767 public adjuster apprentice, or a person acting on behalf of a 768 public adjuster or public adjuster apprentice is prohibited and 769 shall result in discipline as applicable under this part: 770 1.Offering to a residential property owner a rebate, gift, 771 gift card, cash, coupon, waiver of any insurance deductible, or 772 any other thing of value in exchange for: 773 a.Allowing a contractor, a public adjuster, a public 774 adjuster apprentice, or a person acting on behalf of a public 775 adjuster or public adjuster apprentice to conduct an inspection 776 of the residential property owners roof; or 777 b.Making an insurance claim for damage to the residential 778 property owners roof. 779 2.Offering, delivering, receiving, or accepting any 780 compensation, inducement, or reward for the referral of any 781 services for which property insurance proceeds would be used for 782 roofing repairs or replacement. 783 (b)Notwithstanding the fine set forth in s. 626.8698, a 784 public adjuster or public adjuster apprentice may be subject to 785 a fine not to exceed $10,000 per act for a violation of this 786 subsection and a fine not to exceed $20,000 per act for a 787 violation of this subsection that occurs during a state of 788 emergency declared by executive order or proclamation of the 789 Governor pursuant to s. 252.36. 790 (c)A person who engages in an act prohibited by this 791 subsection and who is not a public adjuster or a public adjuster 792 apprentice, or is not otherwise exempt from licensure, is guilty 793 of the unlicensed practice of public adjusting and may be: 794 1.Subject to all applicable penalties set forth in this 795 part. 796 2.Notwithstanding subparagraph 1., subject to a fine not 797 to exceed $10,000 per act for a violation of this subsection and 798 a fine not to exceed $20,000 per act for a violation of this 799 subsection that occurs during a state of emergency declared by 800 executive order or proclamation of the Governor pursuant to s. 801 252.36. 802 Section 9.Section 626.860, Florida Statutes, is amended to 803 read: 804 626.860Attorneys at law; exemption.Attorneys at law duly 805 licensed to practice law in the courts of this state, and in 806 good standing with The Florida Bar, shall not be required to be 807 licensed under the provisions of this code to authorize them to 808 adjust or participate in the adjustment of any claim, loss, or 809 damage arising under policies or contracts of insurance. This 810 exemption does not extend to the employees, interns, volunteers, 811 or contractors of an attorney or of a law firm. 812 Section 10.Section 626.875, Florida Statutes, is amended 813 to read: 814 626.875Office and records. 815 (1)(a)Each appointed independent adjuster and licensed 816 public adjuster must maintain a place of business in this state 817 which is accessible to the public and keep therein the usual and 818 customary records pertaining to transactions under the license. 819 This provision does not prohibit maintenance of such an office 820 in the home of the licensee. 821 (b)A license issued under this chapter must at all times 822 be posted in a conspicuous place in the principal place of 823 business of the license holder. If the licensee is conducting 824 business away from the place of business such that the license 825 cannot be posted, the licensee shall have such license in his or 826 her actual possession at the time of carrying on such business. 827 (2)The records of the adjuster relating to a particular 828 claim or loss shall be so retained in the adjusters place of 829 business for a period of not less than 5 years after completion 830 of the adjustment and shall be available for inspection by the 831 department between the hours of 8 a.m. and 5 p.m., Monday 832 through Friday, excluding state holidays. This provision shall 833 not be deemed to prohibit return or delivery to the insurer or 834 insured of documents furnished to or prepared by the adjuster 835 and required by the insurer or insured to be returned or 836 delivered thereto. At a minimum, the following records must be 837 maintained for a period of not less than 5 years: 838 (a)Name, address, telephone number, and e-mail address of 839 the insured, and the name of the attorney representing the 840 insured, if applicable. 841 (b)The date, location, and amount of the loss. 842 (c)An unaltered copy of the executed disclosure document 843 required by s. 626.8796. 844 (d)An unaltered copy of the executed public adjuster 845 contract required by s. 626.8796. 846 (e)A copy of the estimate of damages provided to the 847 insurer. 848 (f)The name of the insurer; the name of the claims 849 representative of the insurer; and the amount, expiration date, 850 and number of each policy under which the loss is covered. 851 (g)An itemized statement of the recoveries by the insured 852 from the sources known to the adjuster. 853 (h)An itemized statement of all compensation received by 854 the public adjuster from any source in connection with the loss. 855 (i)A register of all money received, deposited, disbursed, 856 and withdrawn in connection with a transaction with the insured, 857 including fees, transfers, and disbursements in connection with 858 the loss. 859 Section 11.Section 626.8796, Florida Statutes, is amended 860 to read: 861 626.8796Public adjuster contracts; disclosure statement; 862 fraud statement. 863 (1)All contracts for public adjuster services must be in 864 writing in at least 12-point type, be titled Public Adjuster 865 Contract, and prominently display the following statement on 866 the contract in minimum 18-point bold type before the space 867 reserved in the contract for the signature of the insured: 868 Pursuant to s. 817.234, Florida Statutes, any person who, with 869 the intent to injure, defraud, or deceive an insurer or insured, 870 prepares, presents, or causes to be presented a proof of loss or 871 estimate of cost or repair of damaged property in support of a 872 claim under an insurance policy knowing that the proof of loss 873 or estimate of claim or repairs contains false, incomplete, or 874 misleading information concerning any fact or thing material to 875 the claim commits a felony of the third degree, punishable as 876 provided in s. 775.082, s. 775.083, or s. 775.084, Florida 877 Statutes. 878 (2)A public adjuster contract relating to a property and 879 casualty claim must contain the full name, permanent business 880 address, phone number, e-mail address, and license number of the 881 public adjuster; the full name of the public adjusting firm; and 882 the insureds full name, and street address, phone number, and 883 e-mail address, together with a brief description of the loss. 884 The contract must state the percentage of compensation for the 885 public adjusters services in minimum 18-point bold type before 886 the space reserved in the contract for the signature of the 887 insured; the type of claim, including an emergency claim, 888 nonemergency claim, or supplemental claim; the initials of the 889 named insured on each page that does not contain the insureds 890 signature; the signatures of the public adjuster and all named 891 insureds; and the signature date. If all of the named insureds 892 signatures are not available, the public adjuster must submit an 893 affidavit signed by the available named insureds attesting that 894 they have authority to enter into the contract and settle all 895 claim issues on behalf of the named insureds. An unaltered copy 896 of the executed contract must be remitted to the insured at the 897 time of execution and to the insurer, or the insurers 898 representative, within 7 30 days after execution. A public 899 adjusting firm that adjusts claims primarily for commercial 900 entities with operations in more than one state and that does 901 not directly or indirectly perform adjusting services for 902 insurers or individual homeowners is deemed to comply with the 903 requirements of this subsection if, at the time a proof of loss 904 is submitted, the public adjusting firm remits to the insurer an 905 affidavit signed by the public adjuster or public adjuster 906 apprentice that identifies: 907 (a)The full name, permanent business address, phone 908 number, e-mail address, and license number of the public 909 adjuster or public adjuster apprentice. 910 (b)The full name of the public adjusting firm. 911 (c)The insureds full name, and street address, phone 912 number, and e-mail address, together with a brief description of 913 the loss. 914 (d)An attestation that the compensation for public 915 adjusting services will not exceed the limitations provided by 916 law. 917 (e)The type of claim, including an emergency claim, 918 nonemergency claim, or supplemental claim. 919 (3)The public adjuster shall not receive compensation for 920 services provided prior to the date the insured receives an 921 unaltered copy of the executed contract or the date executed 922 contract is submitted to the insurer. Proof of receipt by the 923 insured and proof of submission to the insurer must be 924 maintained by the public adjuster for not less than five years. 925 (4)The insured may rescind the contract for public 926 adjuster services if the public adjuster has not submitted a 927 written estimate to the insurer within 60 days after executing 928 the contract, unless the failure to provide the written estimate 929 within 60 days is caused by factors beyond the public adjusters 930 control. 931 (5)The cancellation period for failure to provide a 932 written estimate terminates on the date the estimate is 933 provided. 934 (6)Before the signing of the contract, the public adjuster 935 shall provide the insured with a separate disclosure document to 936 be signed by the insured, on a form adopted by the department, 937 regarding the claim process which accomplishes the following: 938 (a)Defines the following types of adjusters who may be 939 involved in the claim process: company adjuster, independent 940 adjuster, and public adjuster. 941 (b)Explains that the public adjuster is not a 942 representative or employee of the insurer. 943 (c)Explains that the insured is not required to hire a 944 public adjuster, but has a right to do so. 945 (d)Explains that an insured has a right to initiate direct 946 communications with the insureds attorney, the insurer, the 947 company adjuster, the insurers attorney, or any person 948 regarding the settlement of the insureds claim. 949 (e)Explains that the public adjusters salary, fee, 950 commission, or other consideration to be paid to a public 951 adjuster is the insureds responsibility. 952 (f)Explains that the public adjuster is required to 953 provide the insured an unaltered copy of the executed contract 954 at the time of execution. 955 (g)Explains that if the contract was entered into based on 956 events that are the subject of a declaration of a state of 957 emergency by the Governor, an insured or a claimant may cancel 958 the public adjusters contract to adjust a claim without penalty 959 or obligation within 30 days after the date of loss or 10 days 960 after the date on which the contract is executed, whichever is 961 longer. 962 (h)The public adjuster shall provide an unaltered copy of 963 the executed disclosure document to the insured at the time of 964 execution. 965 (7)A contract that does not comply with this section is 966 invalid and unenforceable. 967 (8)The department may adopt rules pursuant to ss. 968 120.536(1) and 120.54 to implement this section, including rules 969 to adopt forms required by this section. 970 Section 12.Section 626.8797, Florida Statutes, is amended 971 to read: 972 626.8797Proof of loss; fraud statement.All proof-of-loss 973 statements must prominently display the following statement in 974 minimum 18-point bold type before the space reserved in the 975 contract for the signature of the insured: Pursuant to s. 976 817.234, Florida Statutes, any person who, with the intent to 977 injure, defraud, or deceive any insurer or insured, prepares, 978 presents, or causes to be presented a proof of loss or estimate 979 of cost or repair of damaged property in support of a claim 980 under an insurance policy knowing that the proof of loss or 981 estimate of claim or repairs contains any false, incomplete, or 982 misleading information concerning any fact or thing material to 983 the claim commits a felony of the third degree, punishable as 984 provided in s. 775.082, s. 775.083, or s. 775.084, Florida 985 Statutes. 986 Section 13.Paragraph (a) of subsection (1) of section 987 626.9541, Florida Statutes, is amended to read: 988 626.9541Unfair methods of competition and unfair or 989 deceptive acts or practices defined. 990 (1)UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE 991 ACTS.The following are defined as unfair methods of competition 992 and unfair or deceptive acts or practices: 993 (a)Misrepresentations and false advertising of insurance 994 policies.Knowingly making, issuing, circulating, or causing to 995 be made, issued, or circulated, any estimate, illustration, 996 circular, statement, sales presentation, omission, comparison, 997 or property and casualty certificate of insurance altered after 998 being issued, which: 999 1.Misrepresents the benefits, advantages, conditions, or 1000 terms of any insurance policy. 1001 2.Misrepresents the dividends or share of the surplus to 1002 be received on any insurance policy. 1003 3.Makes any false or misleading statements as to the 1004 dividends or share of surplus previously paid on any insurance 1005 policy. 1006 4.Is misleading, or is a misrepresentation, as to the 1007 financial condition of any person or as to the legal reserve 1008 system upon which any life insurer operates. 1009 5.Uses any name or title of any insurance policy or class 1010 of insurance policies misrepresenting the true nature thereof. 1011 6.Is a misrepresentation for the purpose of inducing, or 1012 tending to induce, the lapse, forfeiture, exchange, conversion, 1013 or surrender of any insurance policy. 1014 7.Is a misrepresentation for the purpose of effecting a 1015 pledge or assignment of, or effecting a loan against, any 1016 insurance policy. 1017 8.Misrepresents any insurance policy as being shares of 1018 stock or misrepresents ownership interest in the company. 1019 9.Uses any advertisement that would mislead or otherwise 1020 cause a reasonable person to believe mistakenly that the state 1021 or the Federal Government is responsible for the insurance sales 1022 activities of any person or stands behind any persons credit or 1023 that any person, the state, or the Federal Government guarantees 1024 any returns on insurance products or is a source of payment of 1025 any insurance obligation of or sold by any person. 1026 10.Fails to disclose a third party that receives 1027 royalties, referral fees, or other remuneration for sponsorship, 1028 marketing, or use of third-party branding for a policy of health 1029 insurance as defined in s. 624.603. 1030 Section 14.Paragraph (c) of subsection (2) of section 1031 627.4025, Florida Statutes, is amended, and paragraph (d) is 1032 added to that subsection, to read: 1033 627.4025Residential coverage and hurricane coverage 1034 defined. 1035 (2)As used in policies providing residential coverage: 1036 (c)Hurricane for purposes of paragraphs (a) and (b) 1037 means a storm system that has been declared to be a hurricane by 1038 the National Hurricane Center of the National Weather Service. 1039 The duration of the hurricane includes the time period, in 1040 Florida: 1041 1.Beginning at the time a hurricane watch or hurricane 1042 warning is issued for any part of Florida by the National 1043 Hurricane Center of the National Weather Service; and 1044 2.Continuing for the time period during which the 1045 hurricane conditions exist anywhere in Florida; and 1046 3.Ending 72 hours following the termination of the last 1047 hurricane watch or hurricane warning issued for any part of 1048 Florida by the National Hurricane Center of the National Weather 1049 Service. 1050 (d)Hurricane deductible means the deductible applicable 1051 to loss caused by a hurricane. 1052 Section 15.Paragraph (b) of subsection (1) and paragraph 1053 (b) of subsection (2) of section 627.4133, Florida Statutes, are 1054 amended to read: 1055 627.4133Notice of cancellation, nonrenewal, or renewal 1056 premium. 1057 (1)Except as provided in subsection (2): 1058 (b)An insurer issuing a policy providing coverage for 1059 property, casualty, except mortgage guaranty, surety, or marine 1060 insurance, other than motor vehicle insurance subject to s. 1061 627.728 or s. 627.7281, shall give the first-named insured 1062 written notice of cancellation or termination other than 1063 nonrenewal at least 45 days prior to the effective date of the 1064 cancellation or termination, including in the written notice the 1065 reason or reasons for the cancellation or termination, except 1066 that: 1067 1.When cancellation is for nonpayment of premium, at least 1068 10 days written notice of cancellation accompanied by the 1069 reason therefor shall be given. As used in this subparagraph and 1070 s. 440.42(3), the term nonpayment of premium means failure of 1071 the named insured to discharge when due any of her or his 1072 obligations in connection with the payment of premiums on a 1073 policy or any installment of such premium, whether the premium 1074 is payable directly to the insurer or its agent or indirectly 1075 under any premium finance plan or extension of credit, or 1076 failure to maintain membership in an organization if such 1077 membership is a condition precedent to insurance coverage. 1078 Nonpayment of premium also means the failure of a financial 1079 institution to honor an insurance applicants check after 1080 delivery to a licensed agent for payment of a premium, even if 1081 the agent has previously delivered or transferred the premium to 1082 the insurer. If a dishonored check represents the initial 1083 premium payment, the contract and all contractual obligations 1084 shall be void ab initio unless the nonpayment is cured within 1085 the earlier of 5 days after actual notice by certified mail is 1086 received by the applicant or 15 days after notice is sent to the 1087 applicant by certified mail or registered mail, and if the 1088 contract is void, any premium received by the insurer from a 1089 third party shall be refunded to that party in full; and 1090 2.When such cancellation or termination occurs during the 1091 first 60 90 days during which the insurance is in force and the 1092 insurance is canceled or terminated for reasons other than 1093 nonpayment of premium, at least 20 days written notice of 1094 cancellation or termination accompanied by the reason therefor 1095 shall be given except where there has been a material 1096 misstatement or misrepresentation or failure to comply with the 1097 underwriting requirements established by the insurer. 1098 1099 After the policy has been in effect for 60 90 days, no such 1100 policy shall be canceled by the insurer except when there has 1101 been a material misstatement, a nonpayment of premium, a failure 1102 to comply with underwriting requirements established by the 1103 insurer within 60 90 days of the date of effectuation of 1104 coverage, or a substantial change in the risk covered by the 1105 policy or when the cancellation is for all insureds under such 1106 policies for a given class of insureds. This subsection does not 1107 apply to individually rated risks having a policy term of less 1108 than 90 days. 1109 (d)Notwithstanding paragraph (b), Citizens Property 1110 Insurance Corporation, in underwriting risks that, prior to the 1111 date of the application, were most recently insured by an 1112 insurer that has been placed in receivership under chapter 631, 1113 may immediately cancel a policy insuring such risk that is in 1114 effect for 90 days or less for material misrepresentation or 1115 failure to comply with underwriting requirements established 1116 before the effectuation of coverage. 1117 (2)With respect to any personal lines or commercial 1118 residential property insurance policy, including, but not 1119 limited to, any homeowner, mobile home owner, farmowner, 1120 condominium association, condominium unit owner, apartment 1121 building, or other policy covering a residential structure or 1122 its contents: 1123 (b)The insurer shall give the first-named insured written 1124 notice of nonrenewal, cancellation, or termination at least 120 1125 days before the effective date of the nonrenewal, cancellation, 1126 or termination. The notice must include the reason for the 1127 nonrenewal, cancellation, or termination, except that: 1128 1.If cancellation is for nonpayment of premium, at least 1129 10 days written notice of cancellation accompanied by the 1130 reason therefor must be given. As used in this subparagraph, the 1131 term nonpayment of premium means failure of the named insured 1132 to discharge when due her or his obligations for paying the 1133 premium on a policy or an installment of such premium, whether 1134 the premium is payable directly to the insurer or its agent or 1135 indirectly under a premium finance plan or extension of credit, 1136 or failure to maintain membership in an organization if such 1137 membership is a condition precedent to insurance coverage. The 1138 term also means the failure of a financial institution to honor 1139 an insurance applicants check after delivery to a licensed 1140 agent for payment of a premium even if the agent has previously 1141 delivered or transferred the premium to the insurer. If a 1142 dishonored check represents the initial premium payment, the 1143 contract and all contractual obligations are void ab initio 1144 unless the nonpayment is cured within the earlier of 5 days 1145 after actual notice by certified mail is received by the 1146 applicant or 15 days after notice is sent to the applicant by 1147 certified mail or registered mail. If the contract is void, any 1148 premium received by the insurer from a third party must be 1149 refunded to that party in full. 1150 2.If cancellation or termination occurs during the first 1151 60 90 days the insurance is in force and the insurance is 1152 canceled or terminated for reasons other than nonpayment of 1153 premium, at least 20 days written notice of cancellation or 1154 termination accompanied by the reason therefor must be given 1155 unless there has been a material misstatement or 1156 misrepresentation or a failure to comply with the underwriting 1157 requirements established by the insurer. 1158 3.After the policy has been in effect for 60 90 days, the 1159 policy may not be canceled by the insurer unless there has been 1160 a material misstatement; a nonpayment of premium; a failure to 1161 comply, within 60 90 days after the date of effectuation of 1162 coverage, with underwriting requirements established by the 1163 insurer before the date of effectuation of coverage; or a 1164 substantial change in the risk covered by the policy or unless 1165 the cancellation is for all insureds under such policies for a 1166 given class of insureds. This subparagraph does not apply to 1167 individually rated risks that have a policy term of less than 90 1168 days. 1169 4.After a policy or contract has been in effect for more 1170 than 60 90 days, the insurer may not cancel or terminate the 1171 policy or contract based on credit information available in 1172 public records. 1173 5.A policy that is nonrenewed by Citizens Property 1174 Insurance Corporation, pursuant to s. 627.351(6), for a policy 1175 that has been assumed by an authorized insurer offering 1176 replacement coverage to the policyholder is exempt from the 1177 notice requirements of paragraph (a) and this paragraph. In such 1178 cases, the corporation must give the named insured written 1179 notice of nonrenewal at least 45 days before the effective date 1180 of the nonrenewal. 1181 6.Notwithstanding any other provision of law, an insurer 1182 may cancel or nonrenew a property insurance policy after at 1183 least 45 days notice if the office finds that the early 1184 cancellation of some or all of the insurers policies is 1185 necessary to protect the best interests of the public or 1186 policyholders and the office approves the insurers plan for 1187 early cancellation or nonrenewal of some or all of its policies. 1188 The office may base such finding upon the financial condition of 1189 the insurer, lack of adequate reinsurance coverage for hurricane 1190 risk, or other relevant factors. The office may condition its 1191 finding on the consent of the insurer to be placed under 1192 administrative supervision pursuant to s. 624.81 or to the 1193 appointment of a receiver under chapter 631. 1194 7.A policy covering both a home and a motor vehicle may be 1195 nonrenewed for any reason applicable to the property or motor 1196 vehicle insurance after providing 90 days notice. 1197 Section 16.Effective January 1, 2024, section 627.4554, 1198 Florida Statutes, is amended to read: 1199 627.4554Suitability in annuity transactions investments. 1200 (1)PURPOSE.The purpose of this section is to require 1201 agents to act in the best interest of the consumer when making a 1202 recommendation of an annuity and to require insurers to 1203 establish and maintain a system to supervise so set forth 1204 standards and procedures for making recommendations to consumers 1205 which result in transactions involving annuity products, and to 1206 establish a system for supervising such recommendations in order 1207 to ensure that the insurance needs and financial objectives of 1208 consumers are effectively appropriately addressed at the time of 1209 the transaction. 1210 (2)SCOPE.This section applies to any sale or 1211 recommendation of made to a consumer to purchase, exchange, or 1212 replace an annuity by an insurer or its agent, and which results 1213 in the purchase, exchange, or replacement recommended. 1214 (3)DEFINITIONS.As used in this section, the term: 1215 (a)Agent means a person or entity required to be 1216 licensed under the laws of this state to sell, solicit, or 1217 negotiate insurance, including annuities. For purposes of this 1218 section, the term includes an insurer when no agent is involved 1219 has the same meaning as provided in s. 626.015. 1220 (b)Annuity means an insurance product under state law 1221 which is individually solicited, whether classified as an 1222 individual or group annuity. 1223 (c)Cash compensation means any discount, concession, 1224 fee, service fee, commission, sales charge, loan, override, or 1225 cash benefit received by an agent from an insurer or 1226 intermediary or directly from the consumer in connection with 1227 the recommendation or sale of an annuity. 1228 (d)Consumer profile information means information that 1229 is reasonably appropriate to determine whether a recommendation 1230 addresses the consumers financial situation, insurance needs, 1231 and financial objectives, including, at a minimum, the 1232 following: 1233 1.Age. 1234 2.Annual income. 1235 3.Financial situation and needs, including debts and other 1236 obligations. 1237 4.Financial experience. 1238 5.Insurance needs. 1239 6.Financial objectives. 1240 7.Intended use of the annuity. 1241 8.Financial time horizon. 1242 9.Existing assets or financial products, including 1243 investment, annuity, and insurance holdings. 1244 10.Liquidity needs. 1245 11.Liquid net worth. 1246 12.Risk tolerance, including, but not limited to, 1247 willingness to accept nonguaranteed elements in the annuity. 1248 13.Financial resources used to fund the annuity. 1249 14.Tax status. 1250 (e)(c)FINRA means the Financial Industry Regulatory 1251 Authority or a succeeding agency. 1252 (f)(d)Insurer has the same meaning as provided in s. 1253 624.03. 1254 (g)Intermediary means an entity contracted directly with 1255 an insurer or with another entity contracted with an insurer to 1256 facilitate the sale of the insurers annuities by agents. 1257 (h)Material conflict of interest means a financial 1258 interest of the agent in the sale of an annuity which a 1259 reasonable person would expect to influence the impartiality of 1260 a recommendation. The term does not include cash compensation or 1261 noncash compensation. 1262 (i)Noncash compensation means any form of compensation 1263 that is not cash compensation, including, but not limited to, 1264 health insurance, office rent, office support, and retirement 1265 benefits. 1266 (j)Nonguaranteed elements means the premiums; credited 1267 interest rates, including any bonus; benefits; values; 1268 dividends; noninterest-based credits; charges; or elements of 1269 formulas used to determine any of these, which are subject to 1270 company discretion and are not guaranteed at issue. An element 1271 is considered nonguaranteed if any of the underlying 1272 nonguaranteed elements are used in its calculation. 1273 (k)(e)Recommendation means advice provided by an insurer 1274 or its agent to an individual a consumer which was intended to 1275 result or does result which would result in a the purchase, an 1276 exchange, or a replacement of an annuity in accordance with that 1277 advice. The term does not include general communication to the 1278 public, generalized customer services, assistance or 1279 administrative support, general educational information and 1280 tools, prospectuses, or other product and sales material. 1281 (l)(f)Replacement means a transaction in which a new 1282 annuity policy or contract is to be purchased and it is known or 1283 should be known to the proposing insurer or its agent, or to the 1284 proposing insurer whether or not an agent is involved, that by 1285 reason of such transaction an existing annuity or other 1286 insurance policy has been or is to be any of the following or 1287 contract will be: 1288 1.Lapsed, forfeited, surrendered or partially surrendered, 1289 assigned to the replacing insurer, or otherwise terminated; 1290 2.Converted to reduced paid-up insurance, continued as 1291 extended term insurance, or otherwise reduced in value due to 1292 the use of nonforfeiture benefits or other policy values; 1293 3.Amended so as to effect a reduction in benefits or the 1294 term for which coverage would otherwise remain in force or for 1295 which benefits would be paid; 1296 4.Reissued with a reduction in cash value; or 1297 5.Used in a financed purchase. 1298 (m)SEC means the United States Securities and Exchange 1299 Commission. 1300 (g)Suitability information means information related to 1301 the consumer which is reasonably appropriate to determine the 1302 suitability of a recommendation made to the consumer, including 1303 the following: 1304 1.Age; 1305 2.Annual income; 1306 3.Financial situation and needs, including the financial 1307 resources used for funding the annuity; 1308 4.Financial experience; 1309 5.Financial objectives; 1310 6.Intended use of the annuity; 1311 7.Financial time horizon; 1312 8.Existing assets, including investment and life insurance 1313 holdings; 1314 9.Liquidity needs; 1315 10.Liquid net worth; 1316 11.Risk tolerance; and 1317 12.Tax status. 1318 (4)EXEMPTIONS.Unless otherwise specifically included, 1319 this section does not apply to transactions involving: 1320 (a)Direct-response solicitations where there is no 1321 recommendation based on information collected from the consumer 1322 pursuant to this section; 1323 (b)Contracts used to fund: 1324 1.An employee pension or welfare benefit plan that is 1325 covered by the federal Employee Retirement and Income Security 1326 Act; 1327 2.A plan described by s. 401(a), s. 401(k), s. 403(b), s. 1328 408(k), or s. 408(p) of the Internal Revenue Code, if 1329 established or maintained by an employer; 1330 3.A government or church plan defined in s. 414 of the 1331 Internal Revenue Code, a government or church welfare benefit 1332 plan, or a deferred compensation plan of a state or local 1333 government or tax-exempt organization under s. 457 of the 1334 Internal Revenue Code; or 1335 4.A nonqualified deferred compensation arrangement 1336 established or maintained by an employer or plan sponsor; 1337 (c)5.Settlements or assumptions of liabilities associated 1338 with personal injury litigation or a dispute or claim-resolution 1339 process; or 1340 (d)6.Formal prepaid funeral contracts. 1341 (5)DUTIES OF INSURERS AND AGENTS. 1342 (a)An agent, when making a recommendation of an annuity, 1343 shall act in the best interest of the consumer under the 1344 circumstances known at the time the recommendation is made, 1345 without placing the financial interest of the agent or insurer 1346 ahead of the consumers interest. An agent has acted in the best 1347 interest of the consumer if the agent has satisfied the 1348 following obligations regarding care, disclosure, conflict of 1349 interest, and documentation: 1350 1.a.The agent, in making a recommendation, shall exercise 1351 reasonable diligence, care, and skill to: 1352 (I)Know the financial situation, insurance needs, and 1353 financial objectives of the customer. 1354 (II)Understand the available options after making a 1355 reasonable inquiry into options available to the agent. 1356 (III)Have a reasonable basis to believe the recommended 1357 option effectively addresses the consumers financial situation, 1358 insurance needs, and financial objectives over the life of the 1359 product, as evaluated in light of the consumer profile 1360 information. 1361 (IV)Communicate the reason or reasons for the 1362 recommendation. 1363 b.The requirements of sub-subparagraph a. include: 1364 (I)Making reasonable efforts to obtain consumer profile 1365 information from the consumer before the recommendation of an 1366 annuity. 1367 (II)Requiring an agent to consider the types of products 1368 the agent is authorized and licensed to recommend or sell which 1369 address the consumers financial situation, insurance needs, and 1370 financial objectives. This does not require analysis or 1371 consideration of any products outside the authority and license 1372 of the agent or other possible alternative products or 1373 strategies available in the market at the time of the 1374 recommendation. Agents shall be held to standards applicable to 1375 agents with similar authority and licensure. 1376 (III)Having a reasonable basis to believe the consumer 1377 would benefit from certain features of the annuity, such as 1378 annuitization, death or living benefit, or other insurance 1379 related features. 1380 c.The requirements of this subsection do not create a 1381 fiduciary obligation or relationship and only create a 1382 regulatory obligation as provided in this section. 1383 d.The consumer profile information, characteristics of the 1384 insurer, and product costs, rates, benefits, and features are 1385 those factors generally relevant in making a determination 1386 whether an annuity effectively addresses the consumers 1387 financial situation, insurance needs, and financial objectives, 1388 but the level of importance of each factor under the care 1389 obligation of this paragraph may vary depending on the facts and 1390 circumstances of a particular case. However, each factor may not 1391 be considered in isolation. 1392 e.The requirements under sub-subparagraph a. apply to the 1393 particular annuity as a whole and the underlying subaccounts to 1394 which funds are allocated at the time of purchase or exchange of 1395 an annuity, and riders and similar product enhancements, if any. 1396 f.Sub-subparagraph a. does not require that the annuity 1397 with the lowest one-time occurrence compensation structure or 1398 multiple occurrence compensation structure shall necessarily be 1399 recommended. 1400 g.Sub-subparagraph a. does not require the agent to have 1401 ongoing monitoring obligations under the care obligation, 1402 although such an obligation may be separately owed under the 1403 terms of a fiduciary, consulting, investment, advising, or 1404 financial planning agreement between the consumer and the agent. 1405 h.In the case of an exchange or replacement of an annuity, 1406 the agent shall consider the whole transaction, which includes 1407 taking into consideration whether: 1408 (I)The consumer will incur a surrender charge; be subject 1409 to the commencement of a new surrender period; lose existing 1410 benefits, such as death, living, or other contractual benefits; 1411 or be subject to increased fees, investment advisory fees, or 1412 charges for riders and similar product enhancements. 1413 (II)The replacing product would substantially benefit the 1414 consumer in comparison to the replaced product over the life of 1415 the product. 1416 (III)The consumer has had another annuity exchange or 1417 replacement and, in particular, an exchange or replacement 1418 within the preceding 60 months. 1419 i.This section does not require an agent to obtain any 1420 license other than an agent license with the appropriate line of 1421 authority to sell, solicit, or negotiate insurance in this 1422 state, including, but not limited to, any securities license, in 1423 order to fulfill the duties and obligations contained in this 1424 section; provided, the agent does not give advice or provide 1425 services that are otherwise subject to securities laws or engage 1426 in any other activity requiring other professional licenses. 1427 2.a.Before the recommendation or sale of an annuity, the 1428 agent shall prominently disclose to the consumer, on a form 1429 substantially similar to that posted on the office website as 1430 Appendix A, related to an insurance agent disclosure for 1431 annuities: 1432 (I)A description of the scope and terms of the 1433 relationship with the consumer and the role of the agent in the 1434 transaction. 1435 (II)An affirmative statement on whether the agent is 1436 licensed and authorized to sell the following products: 1437 (A)Fixed annuities. 1438 (B)Fixed indexed annuities. 1439 (C)Variable annuities. 1440 (D)Life insurance. 1441 (E)Mutual funds. 1442 (F)Stocks and bonds. 1443 (G)Certificates of deposit. 1444 (III)An affirmative statement describing the insurers for 1445 which the agent is authorized, contracted, or appointed, or 1446 otherwise able to sell insurance products, using the following 1447 descriptions: 1448 (A)From one insurer; 1449 (B)From two or more insurers; or 1450 (C)From two or more insurers, although primarily 1451 contracted with one insurer. 1452 (IV)A description of the sources and types of cash 1453 compensation and noncash compensation to be received by the 1454 agent, including whether the agent is to be compensated for the 1455 sale of a recommended annuity by commission as part of premium 1456 or other remuneration received from the insurer, intermediary, 1457 or other agent, or by fee as a result of a contract for advice 1458 or consulting services. 1459 (V)A notice of the consumers right to request additional 1460 information regarding cash compensation described in sub 1461 subparagraph b. 1462 b.Upon request of the consumer or the consumers 1463 designated representative, the agent shall disclose: 1464 (I)A reasonable estimate of the amount of cash 1465 compensation to be received by the agent, which may be stated as 1466 a range of amounts or percentages. 1467 (II)Whether the cash compensation is a one-time or 1468 multiple occurrence amount; and if a multiple occurrence amount, 1469 the frequency and amount of the occurrence, which may be stated 1470 as a range of amounts or percentages. When recommending the 1471 purchase or exchange of an annuity to a consumer which results 1472 in an insurance transaction or series of insurance transactions, 1473 the agent, or the insurer where no agent is involved, must have 1474 reasonable grounds for believing that the recommendation is 1475 suitable for the consumer, based on the consumers suitability 1476 information, and that there is a reasonable basis to believe all 1477 of the following: 1478 c.1.Before or at the time of the recommendation or sale of 1479 an annuity, the agent shall have a reasonable basis to believe 1480 the consumer has been reasonably informed of various features of 1481 the annuity, such as the potential surrender period and 1482 surrender charge; potential tax penalty if the consumer sells, 1483 exchanges, surrenders, or annuitizes the annuity; mortality and 1484 expense fees; any annual fees; investment advisory fees; 1485 potential charges for and features of riders or other options of 1486 the annuity; limitations on interest returns; potential changes 1487 in nonguaranteed elements of the annuity; insurance and 1488 investment components; and market risk. 1489 2.The consumer would benefit from certain features of the 1490 annuity, such as tax-deferred growth, annuitization, or the 1491 death or living benefit. 1492 3.An agent shall identify and avoid or reasonably manage 1493 and disclose material conflicts of interest, including material 1494 conflicts of interest related to an ownership interest. 1495 4.An agent shall at the time of the recommendation or 1496 sale: 1497 a.Make a written record of any recommendation and the 1498 basis for the recommendation, subject to this section. 1499 b.Obtain a consumer-signed statement on a form 1500 substantially similar to that posted on the office website as 1501 Appendix B, related to a consumers refusal to provide 1502 information, documenting: 1503 (I)A customers refusal to provide the consumer profile 1504 information, if any. 1505 (II)A customers understanding of the ramifications of not 1506 providing his or her consumer profile information or providing 1507 insufficient consumer profile information. 1508 c.Obtain a consumer-signed statement on a form 1509 substantially similar to that posted on the office website as 1510 Appendix C, related to a consumers decision to purchase an 1511 annuity not based on a recommendation, acknowledging the annuity 1512 transaction is not recommended if a customer decides to enter 1513 into an annuity transaction that is not based on the agents 1514 recommendation. 1515 5.Any requirement applicable to an agent under this 1516 subsection applies to every agent who has exercised material 1517 control or influence in the making of a recommendation and has 1518 received direct compensation as a result of the recommendation 1519 or sale, regardless of whether the agent has had any direct 1520 contact with the consumer. Activities such as providing or 1521 delivering marketing or education materials, product wholesaling 1522 or other back office product support, and general supervision of 1523 an agent do not, in and of themselves, constitute material 1524 control or influence. 1525 3.The particular annuity as a whole, the underlying 1526 subaccounts to which funds are allocated at the time of purchase 1527 or exchange of the annuity, and riders and similar product 1528 enhancements, if any, are suitable; and, in the case of an 1529 exchange or replacement, the transaction as a whole is suitable 1530 for the particular consumer based on his or her suitability 1531 information. 1532 4.In the case of an exchange or replacement of an annuity, 1533 the exchange or replacement is suitable after considering 1534 whether the consumer: 1535 a.Will incur a surrender charge; be subject to the 1536 commencement of a new surrender period; lose existing benefits, 1537 such as death, living, or other contractual benefits; or be 1538 subject to increased fees, investment advisory fees, or charges 1539 for riders and similar product enhancements; 1540 b.Would benefit from product enhancements and 1541 improvements; and 1542 c.Has had another annuity exchange or replacement, 1543 including an exchange or replacement within the preceding 36 1544 months. 1545 (b)Before executing a purchase, exchange, or replacement 1546 of an annuity resulting from a recommendation, an insurer or its 1547 agent must make reasonable efforts to obtain the consumers 1548 suitability information. The information shall be collected on 1549 form DFS-H1-1980, which is hereby incorporated by reference, and 1550 completed and signed by the applicant and agent. Questions 1551 requesting this information must be presented in at least 12 1552 point type and be sufficiently clear so as to be readily 1553 understandable by both the agent and the consumer. A true and 1554 correct executed copy of the form must be provided by the agent 1555 to the insurer, or to the person or entity that has contracted 1556 with the insurer to perform this function as authorized by this 1557 section, within 10 days after execution of the form, and shall 1558 be provided to the consumer no later than the date of delivery 1559 of the contract or contracts. 1560 (c)Except as provided under paragraph (d), an insurer may 1561 not issue an annuity recommended to a consumer unless there is a 1562 reasonable basis to believe the annuity is suitable based on the 1563 consumers suitability information. 1564 (b)1.(d)Except as provided under subparagraph 2., An 1565 insurers issuance of an annuity must be reasonable based on all 1566 the circumstances actually known to the insurer at the time the 1567 annuity is issued. However, an insurer or its agent does not 1568 have does not have an obligation to a consumer related to an 1569 annuity transaction under subparagraph (a)1. paragraph (a) or 1570 paragraph (c) if: 1571 a.1.A recommendation has not been made; 1572 b.2.A recommendation was made and is later found to have 1573 been based on materially inaccurate information provided by the 1574 consumer; 1575 c.3.A consumer refuses to provide relevant consumer 1576 profile suitability information and the annuity transaction is 1577 not recommended; or 1578 d.4.A consumer decides to enter into an annuity 1579 transaction that is not based on a recommendation of the an 1580 insurer or its agent. 1581 2.An insurers issuance of an annuity subject to 1582 subparagraph 1. must be reasonable under all the circumstances 1583 actually known to the insurer at the time the annuity is issued. 1584 (c)1.Except as permitted under paragraph (b), an insurer 1585 may not issue an annuity recommended to a consumer unless there 1586 is a reasonable basis to believe the annuity would effectively 1587 address the particular consumers financial situation, insurance 1588 needs, and financial objectives based on the consumers consumer 1589 profile information. 1590 (e)At the time of sale, the agent or the agents 1591 representative must: 1592 1.Make a record of any recommendation made to the consumer 1593 pursuant to paragraph (a); 1594 2.Obtain the consumers signed statement documenting his 1595 or her refusal to provide suitability information, if 1596 applicable; and 1597 3.Obtain the consumers signed statement acknowledging 1598 that an annuity transaction is not recommended if he or she 1599 decides to enter into an annuity transaction that is not based 1600 on the insurers or its agents recommendation, if applicable. 1601 (f)Before executing a replacement or exchange of an 1602 annuity contract resulting from a recommendation, the agent must 1603 provide on form DFS-H1-1981, which is hereby incorporated by 1604 reference, information that compares the differences between the 1605 existing annuity contract and the annuity contract being 1606 recommended in order to determine the suitability of the 1607 recommendation and its benefit to the consumer. A true and 1608 correct executed copy of this form must be provided by the agent 1609 to the insurer, or to the person or entity that has contracted 1610 with the insurer to perform this function as authorized by this 1611 section, within 10 days after execution of the form, and must be 1612 provided to the consumer no later than the date of delivery of 1613 the contract or contracts. 1614 2.(g)An insurer shall establish and maintain a supervision 1615 system that is reasonably designed to achieve the insurers and 1616 its agents compliance with this section, including, but not 1617 limited to, the following:. 1618 1.Such system must include, but is not limited to: 1619 a.The insurer shall establish and maintain Maintaining 1620 reasonable procedures to inform its agents of the requirements 1621 of this section and incorporating those requirements into 1622 relevant agent training manuals.; 1623 b.The insurer shall establish and maintain Establishing 1624 standards for agent product training and shall establish and 1625 maintain reasonable procedures to require its agents to comply 1626 with the requirements of subsection (6).; 1627 c.The insurer shall provide Providing product-specific 1628 training and training materials that explain all material 1629 features of its annuity products to its agents.; 1630 d.The insurer shall establish and maintain Maintaining 1631 procedures for the review of each recommendation before issuance 1632 of an annuity which are designed to ensure that there is a 1633 reasonable basis to determine the recommended annuity would 1634 effectively address the particular consumers financial 1635 situation, insurance needs, and financial objectives for 1636 determining that a recommendation is suitable. Such review 1637 procedures may use a screening system for identifying selected 1638 transactions for additional review and may be accomplished 1639 electronically or through other means, including, but not 1640 limited to, physical review. Such electronic or other system may 1641 be designed to require additional review only of those 1642 transactions identified for additional review using established 1643 selection criteria.; 1644 e.The insurer shall establish and maintain Maintaining 1645 reasonable procedures to detect recommendations that are not in 1646 compliance with paragraphs (a), (b), (d), and (e). This may 1647 include, but is not limited to, suitable, such as confirmation 1648 of consumer profile suitability information, systematic customer 1649 surveys, agent and consumer interviews, confirmation letters, 1650 agent statements or attestations, and internal monitoring 1651 programs. This sub-subparagraph does not prevent an insurer from 1652 using sampling procedures or from confirming the consumer 1653 profile suitability information after the issuance or delivery 1654 of the annuity.; and 1655 f.The insurer shall establish and maintain reasonable 1656 procedures to assess, prior to or upon issuance or delivery of 1657 an annuity, whether an agent has provided to the consumer the 1658 information required to be provided under this subsection. 1659 g.The insurer shall establish and maintain reasonable 1660 procedures to identify and address suspicious consumer refusals 1661 to provide consumer profile information. 1662 h.The insurer shall establish and maintain reasonable 1663 procedures to identify and eliminate any sales contests, sales 1664 quotas, bonuses, and noncash compensation that are based on the 1665 sales of specific annuities within a limited period of time. The 1666 requirements of this sub-subparagraph are not intended to 1667 prohibit the receipt of health insurance, office rents, office 1668 support, retirement benefits, or other employee benefits by 1669 employees, as long as those benefits are not based upon the 1670 volume of sales of a specific annuity within a limited period of 1671 time. 1672 i.f.The insurer shall annually provide providing a written 1673 report to senior managers, including the senior manager who is 1674 responsible for audit functions, which details a review, along 1675 with appropriate testing, which is reasonably designed to 1676 determine the effectiveness of the supervision system, the 1677 exceptions found, and corrective action taken or recommended, if 1678 any. 1679 3.2.An insurer is not required to include in its 1680 supervision system: 1681 a.Agent recommendations to consumers of products other 1682 than the annuities offered by the insurer; or 1683 b.Consideration of or comparison to options available to 1684 the agent or compensation relating to those options other than 1685 annuities or other products offered by the insurer. 1686 4.3.An insurer may contract for performance of a function, 1687 including maintenance of procedures, required under subparagraph 1688 1. 1689 a.An insurers supervision system under this subsection 1690 shall include supervision of contractual performance under this 1691 subsection, which includes, but is If an insurer contracts for 1692 the performance of a function, the insurer must include the 1693 supervision of contractual performance as part of those 1694 procedures listed in subparagraph 1. These include, but are not 1695 limited to: 1696 (I)Monitoring and, as appropriate, conducting audits to 1697 ensure that the contracted function is properly performed; and 1698 (II)Annually obtaining a certification from a senior 1699 manager who has responsibility for the contracted function that 1700 the manager has a reasonable basis to represent, and does 1701 represent, for representing that the function is being properly 1702 performed. 1703 b.An insurer is responsible for taking appropriate 1704 corrective action and may be subject to sanctions and penalties 1705 pursuant to subsection (8) (7) regardless of whether the insurer 1706 contracts for performance of a function and regardless of the 1707 insurers compliance with sub-subparagraph a. 1708 (d)(h)Neither an agent nor an insurer shall may not 1709 dissuade, or attempt to dissuade, a consumer from: 1710 1.Truthfully responding to an insurers request for 1711 confirmation of consumer profile suitability information; 1712 2.Filing a complaint; or 1713 3.Cooperating with the investigation of a complaint. 1714 (e)1.(i)Recommendations and sales made in compliance with 1715 comparable standards shall FINRA requirements pertaining to the 1716 suitability and supervision of annuity transactions satisfy the 1717 requirements of this section. This applies to all 1718 recommendations and FINRA broker-dealer sales of variable 1719 annuities made by financial professionals in compliance with 1720 business rules, controls, and procedures that satisfy a 1721 comparable standard even if such standard would not otherwise 1722 apply to the product or recommendation at issue and fixed 1723 annuities if the suitability and supervision is similar to those 1724 applied to variable annuity sales. However, this paragraph does 1725 not limit the ability of the office or the department to 1726 investigate and enforce, including investigate, the provisions 1727 of this section. 1728 2.Subparagraph 1. does not limit the insurers obligation 1729 to comply with subparagraph (c)1., although the insurer may base 1730 its analysis on information received from either the financial 1731 professional or the entity supervising the financial 1732 professional. 1733 3.For subparagraph 1. this paragraph to apply, an insurer 1734 must: 1735 a.1.Monitor relevant conduct of the financial professional 1736 seeking to rely on subparagraph 1. or the entity responsible for 1737 supervising the financial professional, such as the financial 1738 professionals broker-dealer or an investment adviser registered 1739 under federal or state securities law, the FINRA member broker 1740 dealer using information collected in the normal course of an 1741 insurers business; and 1742 b.2.Provide to the entity responsible for supervising the 1743 financial professional seeking to rely on subparagraph 1., such 1744 as the financial professionals broker-dealer or investment 1745 adviser registered under federal or state securities laws, FINRA 1746 member broker-dealer information and reports that are reasonably 1747 appropriate to assist such entity the FINRA member broker-dealer 1748 in maintaining its supervision system. 1749 4.For purposes of this paragraph, the term: 1750 a.Comparable standards means: 1751 (I)With respect to broker-dealers and registered 1752 representatives of broker-dealers, applicable SEC and FINRA 1753 rules pertaining to best interest obligations and supervision of 1754 annuity recommendations and sales, including, but not limited 1755 to, Regulation Best Interest, 17 C.F.R. s. 240.15l1, and any 1756 amendments or successor regulations thereto; 1757 (II)With respect to investment advisers registered under 1758 federal or state securities laws or investment adviser 1759 representatives, the fiduciary duties and all other requirements 1760 imposed on such investment advisers or investment adviser 1761 representatives by contract or under the Investment Advisers Act 1762 of 1940 or applicable state securities laws, including, but not 1763 limited to, Form ADV and interpretations; and 1764 (III)With respect to plan fiduciaries or fiduciaries, the 1765 duties, obligations, prohibitions, and all other requirements 1766 attendant to such status under the Employee Retirement Income 1767 Security Act of 1974 or the Internal Revenue Code and any 1768 amendments or successor statutes thereto. 1769 b.Financial professional means an agent that is 1770 regulated and acting as: 1771 (I)A broker-dealer registered under federal or state 1772 securities laws or a registered representative of a broker 1773 dealer; 1774 (II)An investment adviser registered under federal or 1775 state securities laws or an investment adviser representative 1776 associated with the federal or state registered investment 1777 adviser; or 1778 (III)A plan fiduciary under s. 3(21) of the Employee 1779 Retirement Income Security Act of 1974 or fiduciary under s. 1780 4975(e)(3) of the Internal Revenue Code or any amendments or 1781 successor statutes thereto. 1782 (6)AGENT TRAINING. 1783 (a)An agent shall not solicit the sale of an annuity 1784 product unless the agent has adequate knowledge of the product 1785 to recommend the annuity and the agent is in compliance with the 1786 insurers standards for product training. An agent may rely on 1787 insurer-provided, product-specific training standards and 1788 materials to comply with this subsection. 1789 (b)1.a.An agent who engages in the sale of annuity 1790 products shall complete a one-time 4-hour training course. This 1791 requirement is not part of an agents continuing education 1792 requirement in s. 626.2815; however, if a course provider 1793 submits and receives approval from the department, the course is 1794 eligible for continuing education credit pursuant to s. 1795 626.2815. 1796 b.Agents who hold a life insurance line of authority on 1797 January 1, 2024, and who desire to sell annuities shall complete 1798 the requirements of this subsection by July 1, 2024. Individuals 1799 who obtain a life insurance line of authority after January 1, 1800 2024, may not engage in the sale of annuities until the annuity 1801 training course required under this subsection has been 1802 completed. 1803 2.The minimum length of the training required under this 1804 subsection is 4 hours. 1805 3.The training required under this subsection shall 1806 include information on the following topics: 1807 a.The types of annuities and various classifications of 1808 annuities. 1809 b.Identification of the parties to an annuity. 1810 c.How product-specific annuity contract features affect 1811 consumers. 1812 d.The application of income taxation of qualified and 1813 nonqualified annuities. 1814 e.The primary uses of annuities. 1815 f.The appropriate standard of conduct, sales practices, 1816 replacement, and disclosure requirements. 1817 4.Providers of courses intended to comply with this 1818 subsection shall cover all topics listed in the prescribed 1819 outline and shall not present any marketing information or 1820 provide training on sales techniques or provide specific 1821 information about a particular insurers products. Additional 1822 topics may be offered in conjunction with and in addition to the 1823 required outline. 1824 5.An agent who has completed an annuity training course 1825 before January 1, 2024, shall, by July 1, 2024, complete either: 1826 a.A new 4-hour training course; or 1827 b.An additional 1-hour training course on appropriate 1828 sales practices, replacement, and disclosure requirements under 1829 this section. 1830 6.Annuity training courses may be conducted and completed 1831 by classroom or self-study methods. 1832 7.Providers of annuity training shall issue certificates 1833 of completion. 1834 8.The satisfaction of the training requirements of another 1835 state that are substantially similar to the provisions of this 1836 subsection shall be deemed to satisfy the training requirements 1837 of this subsection in this state. 1838 9.The satisfaction of the training requirements of any 1839 course or courses with components substantially similar to the 1840 provisions of this subsection shall be deemed to satisfy the 1841 training requirements of this subsection in this state. 1842 10.An insurer shall verify that an agent has completed the 1843 annuity training course required under this subsection before 1844 allowing the agent to sell an annuity product for that insurer. 1845 (7)(6)RECORDKEEPING. 1846 (a)Insurers and agents must maintain or be able to make 1847 available to the office or department records of the information 1848 collected from the consumer and other information used in making 1849 the recommendations that were the basis for insurance 1850 transactions for 5 years after the insurance transaction is 1851 completed by the insurer. An insurer may maintain the 1852 documentation on behalf of its agent. 1853 (b)Records required to be maintained under this subsection 1854 may be maintained in paper, photographic, microprocess, 1855 magnetic, mechanical, or electronic media, or by any process 1856 that accurately reproduces the actual document. 1857 (8)(7)COMPLIANCE MITIGATION; PENALTIES. 1858 (a)An insurer is responsible for compliance with this 1859 section. If a violation occurs because of the action or inaction 1860 of the insurer or its agent which results in harm to a consumer, 1861 the office may order the insurer to take reasonably appropriate 1862 corrective action for the consumer and may impose appropriate 1863 penalties and sanctions. 1864 (b)The department may order: 1865 1.An insurance agent to take reasonably appropriate 1866 corrective action for a consumer harmed by a violation of this 1867 section by the insurance agent, including monetary restitution 1868 of penalties or fees incurred by the consumer, and impose 1869 appropriate penalties and sanctions. 1870 2.A managing general agency or insurance agency that 1871 employs or contracts with an insurance agent to sell or solicit 1872 the sale of annuities to consumers to take reasonably 1873 appropriate corrective action for a consumer harmed by a 1874 violation of this section by the insurance agent. 1875 (c)In addition to any other penalty authorized under 1876 chapter 626, the department shall order an insurance agent to 1877 pay restitution to a consumer who has been deprived of money by 1878 the agents misappropriation, conversion, or unlawful 1879 withholding of moneys belonging to the consumer in the course of 1880 a transaction involving annuities. The amount of restitution 1881 required to be paid may not exceed the amount misappropriated, 1882 converted, or unlawfully withheld. This paragraph does not limit 1883 or restrict a persons right to seek other remedies as provided 1884 by law. 1885 (d)Any applicable penalty under the Florida Insurance Code 1886 for a violation of this section shall be reduced or eliminated 1887 according to a schedule adopted by the office or the department, 1888 as appropriate, if corrective action for the consumer was taken 1889 promptly after a violation was discovered. 1890 (e)A violation of this section does not create or imply a 1891 private cause of action. 1892 (9)(8)PROHIBITED CHARGES.An annuity contract issued to a 1893 senior consumer age 65 or older may not contain a surrender or 1894 deferred sales charge for a withdrawal of money from an annuity 1895 exceeding 10 percent of the amount withdrawn. The charge shall 1896 be reduced so that no surrender or deferred sales charge exists 1897 after the end of the 10th policy year or 10 years after the date 1898 of each premium payment if multiple premiums are paid, whichever 1899 is later. This subsection does not apply to annuities purchased 1900 by an accredited investor, as defined in Regulation D as adopted 1901 by the United States Securities and Exchange Commission, or to 1902 those annuities specified in paragraph (4)(b). 1903 (10)(9)RULES.The department and the commission may adopt 1904 rules to administer this section. The department may adopt by 1905 rule the forms prescribed in the National Association of 1906 Insurance Commissioners Suitability in Annuity Transactions 1907 Model Regulation Appendix A - Insurance Agent (Producer) 1908 Disclosure for Annuities, Appendix B - Consumer Refusal to 1909 Provide Information, and Appendix C - Consumer Decision to 1910 Purchase an Annuity Not Based on a Recommendation. 1911 Section 17.Subsection (5) is added to section 627.70132, 1912 Florida Statutes, to read: 1913 627.70132Notice of property insurance claim. 1914 (5)For loss assessment claims made under s. 627.714, the 1915 notice of claim must be given to the insurer in accordance with 1916 the terms of the policy within 3 years of the date of loss. 1917 Section 18.Paragraph (b) of subsection (8) of section 1918 634.041, Florida Statutes, is amended to read: 1919 634.041Qualifications for license.To qualify for and hold 1920 a license to issue service agreements in this state, a service 1921 agreement company must be in compliance with this part, with 1922 applicable rules of the commission, with related sections of the 1923 Florida Insurance Code, and with its charter powers and must 1924 comply with the following: 1925 (8) 1926 (b)A service agreement company does not have to establish 1927 and maintain an unearned premium reserve if it secures and 1928 maintains contractual liability insurance in accordance with the 1929 following: 1930 1.Coverage of 100 percent of the claim exposure is 1931 obtained from an insurer approved by the office, which holds a 1932 certificate of authority under s. 624.401 to do business within 1933 this state, or secured through a risk retention group, which is 1934 authorized to do business within this state under s. 627.943 or 1935 s. 627.944. Such insurer or risk retention group must maintain a 1936 surplus as regards policyholders of at least $15 million. 1937 2.If the service agreement company does not meet its 1938 contractual obligations, the contractual liability insurance 1939 policy binds its issuer to pay or cause to be paid to the 1940 service agreement holder all legitimate claims and cancellation 1941 refunds for all service agreements issued by the service 1942 agreement company while the policy was in effect. This 1943 requirement also applies to those service agreements for which 1944 no premium has been remitted to the insurer. 1945 3.If the issuer of the contractual liability policy is 1946 fulfilling the service agreements covered by the contractual 1947 liability policy and the service agreement holder cancels the 1948 service agreement, the issuer must make a full refund of 1949 unearned premium to the consumer, subject to the cancellation 1950 fee provisions of s. 634.121(3). The sales representative and 1951 agent must refund to the contractual liability policy issuer 1952 their unearned pro rata commission. 1953 4.The policy may not be canceled, terminated, or 1954 nonrenewed by the insurer or the service agreement company 1955 unless a 90-day written notice thereof has been given to the 1956 office by the insurer before the date of the cancellation, 1957 termination, or nonrenewal. 1958 5.The service agreement company must provide the office 1959 with the claims statistics. 1960 6.A policy issued in compliance with this paragraph may 1961 either pay 100 percent of claims as they are incurred, or 100 1962 percent of claims due in the event of the failure of the service 1963 agreement company to pay such claims when due. 1964 1965 All funds or premiums remitted to an insurer by a motor vehicle 1966 service agreement company under this part shall remain in the 1967 care, custody, and control of the insurer and shall be counted 1968 as an asset of the insurer; provided, however, this requirement 1969 does not apply when the insurer and the motor vehicle service 1970 agreement company are affiliated companies and members of an 1971 insurance holding company system. If the motor vehicle service 1972 agreement company chooses to comply with this paragraph but also 1973 maintains a reserve to pay claims, such reserve shall only be 1974 considered an asset of the covered motor vehicle service 1975 agreement company and may not be simultaneously counted as an 1976 asset of any other entity. 1977 Section 19.Paragraphs (d), (e), and (f) of subsection (17) 1978 of section 634.401, Florida Statutes, are amended to read: 1979 634.401Definitions.As used in this part, the term: 1980 (17)Manufacturer means any entity or its affiliate 1981 which: 1982 (d)Maintains outstanding debt obligations, if any, rated 1983 in the top four rating categories by a recognized rating 1984 service; 1985 (d)(e)Has and maintains at all times, a minimum net worth 1986 of at least $100 $10 million as evidenced by certified financial 1987 statements prepared by an independent certified public 1988 accountant in accordance with generally accepted accounting 1989 principles; and 1990 (e)(f)Is authorized to do business in this state. 1991 Section 20.Paragraph (a) of subsection (7) of section 1992 634.406, Florida Statutes, is amended to read: 1993 634.406Financial requirements. 1994 (7)An association licensed under this part and holding no 1995 other license under part I or part II of this chapter is not 1996 required to establish an unearned premium reserve or maintain 1997 contractual liability insurance and may allow its premiums to 1998 exceed the ratio to net assets limitation of this section if the 1999 association complies with the following: 2000 (a)The association or, if the association is a direct or 2001 indirect wholly owned subsidiary of a parent corporation, its 2002 parent corporation has, and maintains at all times, a minimum 2003 net worth of at least $100 million and provides the office with 2004 the following: 2005 1.A copy of the associations annual audited financial 2006 statements or the audited consolidated financial statements of 2007 the associations parent corporation, prepared by an independent 2008 certified public accountant in accordance with generally 2009 accepted accounting principles, which clearly demonstrate the 2010 net worth of the association or its parent corporation to be 2011 $100 million and a quarterly written certification to the office 2012 that such entity continues to maintain the net worth required 2013 under this paragraph. 2014 2.The associations, or its parent corporations, Form 10 2015 K, Form 10-Q, or Form 20-F as filed with the United States 2016 Securities and Exchange Commission or such other documents 2017 required to be filed with a recognized stock exchange, which 2018 shall be provided on a quarterly and annual basis within 10 days 2019 after the last date each such report must be filed with the 2020 Securities and Exchange Commission, the National Association of 2021 Security Dealers Automated Quotation system, or other recognized 2022 stock exchange. 2023 2024 Failure to timely file the documents required under this 2025 paragraph may, at the discretion of the office, subject the 2026 association to suspension or revocation of its license under 2027 this part. An association or parent corporation demonstrating 2028 compliance with subparagraphs 1. and 2. must maintain 2029 outstanding debt obligations, if any, rated in the top four 2030 rating categories by a recognized rating service. 2031 Section 21.Except as otherwise expressly provided in this 2032 act, this act shall take effect July 1, 2023.