ch. 618 agricultural cooperative marketing ......ch. 618 agricultural cooperative marketing...

Ch. 618 AGRICULTURAL COOPERATIVE MARKETING ASSOCIATIONS Ch. 618

marketing association under this chapter and to do business under and be bound by the provisions of said chapter 608, as a corporation for profit and has authorized all changes accordingly. Articles of incorporation shall be filed as required in and by §608.03, except that they shall be signed by the members of the then board of directors. The filing fees and taxes shall be as provided in §608.05. Such articles of incorporation shall adequately protect and preserve the relative rights of the stockholders or members of the association so converting into a corporation for profit: provided that no rights or obligations due any stockholder or member of such association or any other person, firm or corporation which has not been waived or satisfied shall be impaired by such conversion into a corporation for profit as herein authorized.

Blstor7.-<::omp. 12, 00. 29813, 1955.

618.23 Quo warranto to test validity of corporation. - The right of an association claiming to be organized and incorporated and carrying on its business under this chapter to do and to continue its business, may be inquired into by quo warranto at the suit of the attorney general, but not otherwise.

Hi8tor;r.-I26, ch. 14675, 1931; CGL 1936 Supp. 6489(2).

618.24 Application of general corporation laws.-The provisions of the laws of this state with respect to corporations for profit and all powers and rights thereunder shall apply to associations organized under this chapter, except where such provisions are in conflict with or inconsistent with the express provisions of this chapter. 199~8tor;r.-126, ch. 9800, 1923; CGL 6491; 129, ch. 14675,

618.25 Dissolution.-Any association incorporated under or adopting the provisions of this chapter may be dissolved and its affairs wound up voluntarily by a petition signed by two-thirds of the members or by the holders of two-thirds of the common stock, either in person or by their agent, which petition shall be presented to the circuit judge, who shall direct notice thereof to be published for such time as he may judge expedient. After the expiration of the time of such notice, the circuit judge may decree a dissolution and make all necessary orders and decrees for the winding up of its affairs, including the application of its assets toward the satisfaction of the claims of creditors so far as may be and the distribution of any moneys then remaining among its members in proportion to their respective property interests.

Any such association shall continue to be a body corporate for a term of two years after

the date of the decree or dissolution for the purpose of prosecuting and defending suits and settling its affairs, and the president and directors at the time of its dissolution, and the survivors of them, or such other person as may be appointed by the circuit judge, shall be trustees of such association for that purpose during said term with full power in its name to settle its affairs, collect all sums due it, sell and convey its property, pay its debt as far as may be, and distribute any moneys or property then remaining among those entitled thereto.

Hlstor;r.-§27, ch. 14675, 1931; CGL 1936 Supp. 6489(8).

618.26 Conditions under which foreign similar corporation may do business in this state. -Any cooperative association with or without capital stock as defined in this chapter heretofore or hereafter organized under the laws of another state shall be allowed to carryon any proper activities, operations and functions in this state upon the filing with the secretary of state of a certified copy of its articles of incorporation and the payment of a filing fee of ten dollars in lieu of all franchise or license or corporation taxes as required of associations organized under this chapter, and all contracts which could be made by any association organized under this chapter, made by or with such associations shall be legal and valid and enforceable in this state with all of the remedies set forth in this chapter.

Hlstor;r.-§25, ch. 14675, 1931; CGL 1936 Supp. 6489(1). cf.-Ch. 613, Foreign corporaUons.

618.27 Use of term "cooperative." - No person doing business in this state, shall be entitled to use the word "cooperative" as part of its corporate or other business name or title unless it has complied with the provisions of this chapter.

Any person now organized and existing or doing business in this state, and embodying the word "cooperative" as part of its corporate or other business name or title, and which is not organized in compliance with the provisions of this chapter, shall eliminate the word "cooperative" from its said corporate or other business name or title.

Hlstor;r.-§2O, ch. 9300, 1923; CGL 6485; 120, ah. 14616, 1931; am. 17, ch. 22858, 1945.

618.28 This chapter not to affect certain Iaws.-The provisions of this chapter shall not be construed to affect, limit or in anywise interfere with the rights, powers or privileges of any corporation or association which exists or which may be hereafter organized under chapter 619 and laws prior thereto.

HI8tor;r.-I29, ch. 9300, 1923; CGL 6494; 130, ah. 14616, 1931; 16, ch. 16819, 19B&.

Ch. 619 NONPROFIT COOPERATIVE ASSOCIATIONS Ch. 619

CHAPTER 619

NONPROFIT COOPERATIVE ASSOCIATIONS

619.01 Nonprofit cooperative associations; powers.

619.02 Associations not in restraint of trade. 619.03 Not to have capital stock; not for profit;

membership; membership not assignable; directors may consent to assignment.

619.04 Articles of incorporation.

619.01 Nonprofit cooperative associations; powers.-Three or more persons engaged in the production, preserving, drying, packing, canning, bottling, shipping, or marketing of agricultural, viticultural, or horticultural products, or all or any of them, or in the manufacture or preparation of any confection, extracts, oils, juices, or by-products, or any or all of them, or three or more persons engaged in the production and marketing of sponges, may form a nonprofit cooperative association under the provisions of this chapter to carry on said business; and such associations shall have and may exercise powers authorized by this chapter, and powers, necessarily incidental thereto and all other powers granted to private corporations by the laws of this state, except such powers as are inconsistent with those granted by this chapter.

Hlstory.-§1. ch. 5958. 1909; RGS 4510; 11. ch. 9144. 1923; 11. ch. 10097. 1925; CGL 6609; 11. ch. 14644. 1929.

619.02 Associations not in restraint of trade.-N 0 association organized under this chapter shall be deemed to be a combination in restraint of trade or an illegal monopoly; or an attempt to lessen competition to fix prices arbitrarily, nor shall the marketing contracts, or any agreements authorized in this chapter be considered illegal or in restraint of trade.

Hlstory.-I1. ch. 6958. 1909; RGS 4510; 11. ch. 9144. 1923; 11. ch. 10097. 1925; CGL 6609; fl. ch. 14644. 1929. cf.-I642.01. Excluded from definition of .'trust."

619.03 Not to have capital stock; not for profit; membership; membership not assignable; directors may consent to assignment.Such associations shall not have a capital stock, and its business shall not be carried on for profit. Any person, or any number of persons, in addition to the original incorporators, may become members of such association, upon such terms and conditions as to membership and subject to such rules and regulations as to their, and each of their, contract and other rights and liabilities between it and the member, as the said association shall provide in its by-laws. The association shall issue a certificate of membership to each member but the said membership, or the said certificate thereof, shall not be assigned by a member to any other person, nor shall the assigns thereof be entitled to membership in the association or to any property rights or interest therein. Nor shall a purchaser at execution sale, or any other person who may succeed, by operation of law or otherwise, to the property interests of a member, be entitled to membership

619.05 Amendment of articles of incorporation. 619.06 By-laws. 619.07 Special powers; marketing contracts;

voluntary dissolution. 619.08 May own stock in certain corporations. 619.09 Quo warranto to test validity of incor

poration.

or become a member of the association by virtue of such transfer. The board of directors may, however, by motion duly adopted by it, consent to such assignment or transfer and to the acceptance of the assignee or transferee as a member of the association, but the association may, by its by-laws, provide for or against the transfer of membership and for or against the assignment of membership certificates, and also the terms and conditions upon which any such transfer or assignment shall be allowed.

Hlstory.-12. ch. 6968. 1909; RGS 4611; CGL 6610.

619.04 Articles of incorporation.-Each association formed under this chapter must prepare and file articles of incorporation in the same manner and under the same regulations as now required under chapter 608, and therein shall set forth:

(1) The name of the association. (2) The purpose for which it is formed. (3) The place where its principal business

will be transacted. (4) The term for which it is to exist, not ex

ceeding fifty years. (5) The number of directors thereof, which

must not be less than three and which may be any number in excess thereof, and the names and residences of those selected for the first year and until their successors shall have been elected and shall have accepted office.

(6) Whether the voting power and the property rights and interest of each member shall be equal, or unequal, and if unequal these articles shall set forth a general rule applicable to all members by which the voting power and the property rights and interests, respectively, of each member may and shall be determined and fixed, but the association shall have power to admit new members, who shall be entitled to vote and to share in the property of the association with the old members, in accordance with such general rule. This provision of the articles of incorporation shall not be altered, amended or repealed except by the unanimous written consent or the vote of all the members.

(7) Said articles must be subscribed by the original members and acknowledged by one of them before an officer authorized by the law of this state to take and certify acknowledgments of deeds of conveyance, and shall be filed in accordance with the provisions of law, and when so filed the said articles of incorporation or certified copies thereof shall be received in


all the courts of this state and other places as prima facie evidence of the facts contained therein.

Hlstory.-§3. ch. 5958. 1909; RGS .512; CGL 6511.

619.05 Amendment of articles of incorporation.-Any nonprofit cooperative association heretofore or hereafter organized may amend its charter by a two-thirds vote of all its members at any regular meeting, or at a special meeting called for that purpose.

If the proposed alteration or amendment shall be so adopted, the corporation shall prepare a certificate, under its common seal, of the proposed alteration or amendment as adopted by said corporation, which certificate accompanied by said proposed amendment or alteration, shall be signed by the president or vice-president of said corporation and attested by its secretary, and file the same in the office of the secretary of state; which certificate accompanied by said proposed amendment or alteration, shall be produced to the governor, who shall examine the same, and if it is found to be in proper form, and that the proposed alteration or amendment has been properly adopted, is lawful and not injurious to the community, and is in accord with the purpose of the charter, the governor shall approve the same, and thereupon letters patent shall issue, reciting the alteration or amendment; and the said letters patent shall then be recorded by the secretary of state in his office, and from the date of the record thereof in the office of the secretary of state, said alteration or amendment shall be treated and considered as a part of the charter of said corporation.

Hlstory.-§1, ch. 17132, 1935; CGL 1936 Supp. 6515(1). § 17, ch. 61-530.

619.06 By-laws. - Each association incorporated under this chapter must, within thirty days after its incorporation, adopt a code of bylaws for its government and management not inconsistent with the provisions of this law. A majority vote of the members or the written assent of members representing a majority of the votes: !S necessary to adopt such by-laws. The prOVISIOns of the general laws of this state not inconsistent with the provisions of this chapter shall apply to the by-Ia'JVs of the corporations provided for in this chapter. Each association may also, by its by-laws adopted as aforesaid, provide for the follQwing matters:

(1) The manner of removal of anyone or more of its directors and for filling any and all vacancies in the board of directors.

(2) The number of directors and the number of members or votes thereof constituting a quorum.

(3) The conditions upon which, and the time when, membership of any member in the association shall cease; the mode, manner and effect of expulsion of a member, subject to the right of the expelled member to have the board of directors (equitably) appraise his property interests in the association and to affix the amount thereof in money, and to have the money paid to him within sixty days after such expulsion.

(4) The amount of membership fee, if any, and the amount which each member shall be required to pay annually, or from time to time, if at all, to carryon the business of the association, and also the compensation, if any, to be paid by each member for any services rendered by the association to him, and the time of payment and the manner of collecting the same, and for forfeiture of the interest of the member in the association for nonpayment of the same.

(5) The number and qualification of members of the association and the conditions precedent to membership, and the method, time and manner of permitting members to withdraw, and providing for the assignment and transfer of the interest of the member, and the manner of determining the value of such interest, and providing for the purchase of such interest by the association upon the death, withdrawal or expulsion of a member or upon the forfeiture of his membership, at the option of the association.

(6) Permitting members to vote by their proxies and determining the conditions, manner, form and effect thereof.

Hlstory.-§4, ch. 5958, 1909; RGS .513; CGL 6512.

619.07 Special powers; marketing contracts; voluntary dissolution.-Each association incorporated under this chapter shall have the powers granted by the provisions of this law and other laws of Florida relating to private corporations, and shall also have the following powers:

(1) To appoint such agents and officers as its business may require, and such appointed agents may be either persons or corporations; to admit persons to membership in the association, and to expel any member pursuant to the provisions of its by-laws; to forfeit the membership of any member for violation of any agreement between him and the association, or for his violation of its by-laws.

(2) To purchase or otherwise acquire, hold, own, sell and otherwise dispose of any and every kind of real and personal property nece~sary to carryon its business, and to acquire by purchase or otherwise the interest of any member in the property of the association.

(3) Upon the written assent or by a vote of members representing two-thirds of the total votes of all members to cooperate with any other cooperative corporation or corporations for the cooperative and more economical carrying on of their respective business, by consolidation; upon resolution adopted by board of directors, to enter into all necessary and proper contracts and agreements, and to make all necessary and proper stipulations and arrangements with any other cooperative corporation or corporations, for the cooperative and more economical carrying on of its business, or any part thereof; or any two or more cooperative corporations organized under this title, upon resolutions adopted by their respective boards of directors, may for the purpose of more economically carrying on their respec-


tive business, by agreement between them, unite in employing and using, or several associations may separately employ and use, the same methods, means and agencies for carrying on and conducting their respective businesses.

(4) To organize, form, operate, own, control, have interest in, own stock of, or be a member of any other corporation, with !)r without capital stock, and engaged in preserving, drying, processing, canning, picking, hauling, packing, storing, handling, shipping, utilizing, manufacturing, marketing, or selling any of the agricultural or horticultural products handled by the association, or the by-products thereof.

(5) To make and execute marketing contracts requiring the members to sell, for any period of time, not over ten years, all or any specified part of their agricultural or horticultural products exclusively to or through the association or any facilities to be created by the association. The contracts may provide that the association may sell or resell the products of its members with or without taking title thereto, and pay over to its members the sale or resale price, after deducting all necessary selling, overhead and other costs and expenses, including interest on bonds, not exceeding eight per cent per annum and reserves for retiring the bonds, if any, and other proper reserves.

(6) Either the by-laws or the marketing contracts, or both the said by-laws and marketing contracts may fix, as liquidated damages, specific sums to be paid by the member to the association upon the breach by him of any provision of the marketing contract regarding the sale or delivery or withholding of products; and may further provide that the member will pay all costs, premiums for bonds, expenses and fees in case any action is brought upon the contract by the association and any such provisions shall be valid and enforceable in the courts of this state.

(7) In the event of any breach or threatened

breach of a marketing contract by a member, the association shall be entitled to an injunction to prevent the further breach of the contract, and to a decree of specific performance thereof. Pending the adjudication of such an action, and upon filing a verified complaint showing the breach or threatened breach, and upon filing a sufficient bond, the association shall be entitled to a temporary restraining order and a preliminary injunction against the member.

(8) Any association formed or consolidated under this chapter may be dissolved and its affairs wound up voluntarily by the written request of members representing two-thirds of the total votes, in the manner and with the effect now provided by law, except that the moneys remaining after liquidation shall be divided among the members in proportion to their property interest therein.

Hlstory.-§5. ch. 5958. 1909; RGS 4514; 12, ch. 10097. 1925: CGL 6513.

619.08 May own stock in certain corporations.-Any agricultural or horticultural nonprofit, cooperative association, heretofore, or hereafter, organized under the laws of the state, may own or hold stock in any corporation organized under the laws of the state, if such corporation is organized, or conducts, or operates, its business, solely for the benefit or advancement of the interests of persons engaged in agricultural or horticultural pursuits in this state.

Hlstory.-fl. ch. 7888. 1917; RGS 4515; CGL 8614.

619.09 Quo warranto to test validity of incorporation.-The right of an association claiming to be organized and incorporated and carrying on its business under this chapter to do and to continue its business, may be inquired into by quo warranto at the suit of the attorney general, but not otherwise.

Hlat0J7.-18, cbo 5958, 1909; RGS 4516; CGL 6515.

Ch. 620 LIMITED PARTNERSHIPS Ch. 620

CHAPTER 620

LIMITED PARTNERSHIPS

PART I UNIFORM LIMITED PARTNERSHIP LAW

PART II FOREIGN LIMITED PARTNERSHIPS

PART I

UNIFORM LIMITED PARTNERSHIP LAW

620.01 Limited partnership defined. 620.011 Definition of terms. 620.02 Formation. 620.03 Business which may be carried on. 620.04 Character of limited partners' contri-

bution. 620.05 Name of limited partnership; use of

partner's surname; exceptions. 620.06 Liability for false statements in certifi

cate. 620.07 Limited partner not liable to creditors. 620.08 Admission of additional limited part

ners. 620.09 Rights, powers and liabilities of gen

eral partner. 620.10 Rights of limited partner. 620.11 Status of person erroneously believing

himself limited partner. 620.12 One person both general and limited

partner. 620.13 Loan and other business transactions

with limited partner. 620.14 Relation of limited partners inter see 620.15 Compensation of limited partner.

620.01 Limited partnership defined.-A limited partnership is a partnership formed by two or more persons under the provisions of §620.02, having as members one or more general partners and one or more limited partners. The limited partners as such shall not be bound by the obligations of the partnership.

Hlato!'T.-§l. ch. 21887. 1943.

620.011 Definition of terms.-In this act, the word "person" includes individuals, partnerships, corporations and other associations, and persons owning property and doing business as husband and wife.

Bistor,..-§ 1. ch. 61-155.

620.02 Formation.-(1) Two or more persons desiring to form a

limited partnership shall: (a) Sign and swear to a certificate, which

shall state: 1. The name of the partnership, 2. The character of the business, 3. The location (~ the principal place of bus

iness, 4. The name and place of residence of each

member; general and limited partners being respectively designated,

5. The term for which the partnership is to exist,

6. The amou ..... "of f''lSh and a description of

620.16 Withdrawal or reduction of limited partner's contribution.

620.17 Liability of limited partner to partnership.

620.18 Nature of limited partner's interest in partnership.

620.19 Assignment of limited partner's interest.

620.20 Effect of retirement, death or insanity of general partner.

620.21 Death of limited partner. 620.22 Rights of creditors of limited partner. 620.23 Distribution of assets. 620.24 When certificate canceled or amended. 620.25 Requirements for amendment and can-

cellation of certificate. 620.26 Parties to actions. 620.27 Short title. 620.28 Rules of construction. 620.29 Rules for cases not provided for in this

chapter. 620.30 Service of process on limited partner-

ships. 620.31 Duty of secretary of state. 620.32 Secretary of state to prescribe forms.

and the agreed value of the other property contributed by each limited partner,

7. The additional contributions, if any, agreed to be made by each limited partner and the times at which or events on the happening of which they shall be made,

8. The time, if agreed upon, when the contribution of each lilT'ited partner is to be returned,

9. The share of the profits or the other compensation by way of income which each limited partner shall receive by reason of his contribution,

10. The right, if given, of a limited partner to substitute an assignee as contributor in his place and the terms and conditions of the substitution.

11. The right, if given, of the partners to admit additional limited partners,

12. The right. if given, of one or more of the limited partners to priority over other limited partners, as to contributions or as to compensation by way of income, and the nature of such priority,

13. The right, if given, of the remaining general partner or partners to continue the business on the death, retirement or insanity of a general partner, and

14. The right, if given, of a limited partner to demand and receive property other than cash in return for his contribution.


(b) File for recor" the certificate in the office of the secretary of state, a certified copy of which is to be recorded with the clerk of the circuit court in the county where the principal place of business is located, in a book to be provided therefor by the said clerk of said court. The fees of the secretary of state under this chapter shall be as follows:

1. For certified copies, the same as is provided by law for the secretary of state for certificates and copying;

2. For receiving, filing and indexing certificates, statements, affidavits, decrees or any other papers provided for by this chapter, a filing fee in each case to be paid at the time of the first filing and on the first day of January annually thereafter an amount based upon the amount of invested capital according to the following schedule: Two dollars per thousand dollars of invested capital; provided, however, that no filing fee shall be less than ten dollars nor more than five hundred dollars. Upon the payment of such filing fee on the first filing and on each annual payment thereafter the secretary of state shall issue his certificate of authority to do business to said limited partnership and it shall be unlawful for such limited partnership to transact business as such until such filing fee has been paid; provided, further, that the annual filing fee payable on January 1st next following the date of the original filing the amount of the filing fee shall be prorated for that portion of the year the limited partnership has existed between the original filing date and the next ensuing January 1st. Such certificate of authority to be issued by the secretary of state shall be prima facie evidence of the right of such limited partnership to do business under the terms and provisions of this chapter and shall be considered as the payment to the state for the rights, privileges, protection and benefits conveyed by the provisions of this chapter, and no such limited partnership shall do business in this state without first having obtained the certificate of authority of the secretary of state for the ensuing year.

3. For filing and indexing any papers required by this chapter to be filed by the secretary of state, one cent a line.

4. The clerk of the circuit court shall receive as compensation for the recording of any papers required hereby, fees as provided in §2B.24.

Hlstory.-§2, ch. 21887, 1943. ot.-1620.25 Requirement for amendment and canceUatlon of

certificate. 115.09 Secretary of state's certification fee.

620.03 Business which may be carried on.A limited partnership may carryon any business which a partnership without limited partners may carry on.

Hlatory.-§3, ch. 21887, 1948.

620.04 Character of limited partners' contribution.-The contributions of a limited partner may be cash or other property, but not services.

Hlatory.-§4, ch. 21887, 1948.

620.05 Name of limited partnership; use of partner's surname; exceptions.-

(1) The name of every limited partnership shall contain the word (Limited) or its abbreviation (Ltd.) with a conspicuous sign exhibiting this name at every place of business.

(2) The surname of a limited partner shall not appear in the partnership name unless:

(a) There is sufficient designation attached to his surname to indicate that he is a limited partner, or,

(b) It is also the surname of a general partner, or,

(c) Prior to the time when the limited partner became such, the business had been carried on under a name in which his surname appeared.

(3) A limited partner, whose name appears in a partnership name, contrary to the provision of subsection (2), is liable as a general partner to partnership creditors who extend credit to the partnership without actual knowledge that he is not a general partner.

Hlatory.-§6. ch. !1887. 1943.

620.06 Liability for false statements in certificate.-If the certificate contains a false statement, one who suffers loss by reliance on such statement may hold liable any party to the certificate who knew the statement to be false:

(1) At the time he signed the certificate, or, (2) Subsequently, but within a sufficient time

before the statement was relied upon to enable him to cancel or amend the certificate, or to file a petition for its cancellation or amendment as provided in §620.25(3).

Hlatory.-§6. ch. 21887. 1948. cf.-1620.19 Assignment of Interest.

620.07 Limited partner not liable to creditors.-A limited partner shall not become liable as a general partner unless, in addition to the exercise of his rights and powers as a limited partner, he takes part in the control of the business or violates §620.05.

Hlatory.-l7. ch. 21887. 1948.

620.0B Admission of additional limited partners.-After the formation of a limited partnership, additional limited partners may be admitted upon filing an amendment to the original certificate in accordance with the requirements of §620.25.

Histor;r.-§8. ch. 21887. 1943.

620.09 Rights, powers and liabilities of general partner.-A general partner shall have all the rights and powers and be subject to all the restrictions and liabilities of a partner in a partnership without limited partners, except that without the written consent or ratification of the specific act by all the limited partners a general partner or all of the general partners have no authority to:

(1) Do any act in contravention of the certificate,

(2) Do any act which would make it impossible to carryon the ordinary business of the partnership,

(3) Confess a judgment against the partnership,


(4) Possess partnership property or assign their rights in specific partnership property for other than a partnership purpose,

(5) Admit a person as a general partner, (6) Admit a person as a limited partner,

unless the right so to do is given in the certificate,

(7) Continue the business with partnership property on the death, retirement or insanity of a general partner, unless the right so to do is given in the certificate.

Hlstol'T.-§9. ch. 21887. 1943.

620.10 Rights of limited partner.-(1) A limited partner shall have the same

rights as a general partner to: (a) Have the partnership books kept at the

principal place of business of the partnership, and at all times to inspect and copy any of them;

(b) Have on demand true and full information of all things affecting the partnership, and a formal account of partnership affairs whenever circumstances render it just and reasonable: and,

(c) Have dissolution and winding up by decree of court.

(2) A limited partner shall have the right to receive a share of the profits or other compensation by way of income, and to the return of his contribution as provided in §§620.15 and 620.16.

HlstorT.-§10. ch. S1887. 1941.

620.11 Status of person erroneously believing himself limited partner.-A person who has contributed to the capital of a business conducted by a person or partnership erroneously believing that he has become a limited partner in a limited partnership is not, by reason of his exercise of the rights of a limited partner, a general partner with the person or in the partnership carrying on the business, or bound by the obligations of such person or partnership; provided, that on ascertaining the mistake he promptly renounces his interest in the profits of the business or other compensation by way of income.

HlstorT.-§ll. ch. 21887. 1943.

620.12 One person both general and limited partner.-

(1) A person may be a general partner and a limited partner in the same partnership at the same time.

(2) A person who is a general, and also at the same time a limited partner, shall have all the rights and powers and be subject to all the restrictions of a general partner; except, that in respect to his contribution, he shall have the rights against the other members which he would have had if he were not also a general lIartner.

:Wstory.-§12, ch. 21887, 1943.

620.13 Loan and other business transactions with limited partner.-

(1) A limited partner also may loan money to and transact other business with the partnership, and unless he is also a general partner, receive

on account of resulting claims against the partnership, with general creditors, a pro rata share of the assets. No limited partner shall in respect to any such claim:

(a) Receive or hold as collateral security any partnership property, or,

(b) Receive from a general partner or the partnership any payment, conveyance or release from liability, if at the time the assets of the partnership are not sufficient to discharge partnership liabilities to persons not claiming as general or limited partners.

(2) The receiving of collateral security, or a payment, conveyance or release in violation of the provisions of subsection (1) is a fraud on the creditors of the partnership.

HlstOl'T.-§18. ch. 21887. 1943.

620.14 Relation of limited partners inter see -Where there are several limited partners the members may agree that one or more of the limited partners shall have a priority over other limited partners as to the return of their contributions, as to their compensation by way of income or as to any other matter. If such an agreement is made it shall be stated in the certificate, and in the absence of such a statement all the limited partners shall stand upon equal footing.

Hlstol'T.-§14. ch. S1887. 1943.

620.15 Compensation of limited partner.A limited partner may receive from the partnership the share of the profits or the compensation by way of income stipulated for in the certificate; provided, that after such payment is made, whether from the property of the partnership or that of a general partner, the partnership assets are in excess of all liabilities of the partnership, except liabilities to limited partners on account of their contributions and to general part-ners.

Hlstory.-§ 15, ch. 21887, 1943. cf.-§620.10. Rights of limited partner.

620.16 Withdrawal or reduction of limited partner's contribution.-

(1) A limited partner shall not receive from a general partner or out of partnership property any part of his contribution until:

(a) All liabilities of the partnership, except liabilities to general partners and to limited partners on account of their contributions, have been paid or there remains property of the partnership sufficient to pay them,

(b) The consent of all members is had, unless the return of the contribution may be rightfully demanded under the provisions of subsection (2), and,

(c) The certificate is canceled or so amended as to set forth the withdrawal or reduction.

(2) Subject to the provisions of subsection (1), a limited partner may rightfully demand the return of his contribution:

(a) On the dissolution of a partnership, or, (b) When the date specified in the certificate

for its return has arrived, or, (c) After he has given six months' notice

in writing to all other members, if no time is


specified in the certificate either for the return of the contribution or for the dissolution of the partnership.

(3) In the absence of any statement in the certificate to the contrary or the consent of all members, a limited partner, irrespective of the nature of his contribution, has only the right to demand and receive cash in return for his contribution.

(4) A limited partner may have the partnership dissolved and its affairs wound up when:

(a) He rightfully but unsuccessfully demands the return of his contribution, or,

(b) The other liabilities of the partnership have not been paid, or the partnership property is insufficient for their payment as required by subsection (1) (a) and the limited partner would otherwise be entitled to the return of his contribution.

Hlstory.-§16, ch. 21887, 1943. cf.-§620.10, Rights of limited partner.

620.17 Liability of limited partner to partnership.-

(1) A limited partner is liable to the partnership:

(a) For the difference between his contribution as actually made and that stated in the certificate as having been made; and,

(b) For any unpaid contribution which he agreed in the certificate to make in the future at the time and on the conditions stated in the certificate.

(2) A limited partner holds as trustee for the partnership:

(a) Specific property stated in the certificate as contributed by him, but which was not contributed or which has been wrongfully returned, and,

(b) Money or other property wrongfully paid or conveyed to him on account of his contribution.

(3) The liabilities of a limited partner as set forth in this section can be waived or compromised only by the consent of all members; but a waiver or compromise shall not affect the right of a creditor of a partnership, who extended credit or whose claim arose after the filing and before a cancellation or amendment of the certificate, to enforce such liabilities. . (4) When a contributor has rightfully re

ceived the return in whole or in part of the capital of his contribution, he is nevertheless liable to the partnership for any sum, not in excess of such return with interest, necessary to discharge its liabilities to all creditors who extended credit or whose claims arose before such return.

IDstor;r.-§17, ch. 21887, 1943.

620.18 Nature of limited partner's interest in partnership.-A limited partner's interest in the partnership is personal property.

Hlstory.-§18, ch. 21887. 1943.

620.19 Assignment of limited partner's in· terest.-

(1) A limited partner's interest is assignable.

(2) A substituted limited partner is a person admitted to all the rights of a limited partner who has died or has assigned his interest in a partnership.

(3) An assignee, who does not become a substituted limited partner, has no right to require any information or account of the partnership transactions or to inspect the partnership books; he is only entitled to receive the share of the profits or other compensation by way of income, or the return of his contribution to which his assignor would otherwise be entitled.

(4) An assignee shall have the right to become a substituted limited partner if all the members (except the assignor) consent thereto or if the assignor, being thereunto empowered by the certificate, gives the assignee that right.

(5) An assignee becomes a substituted limited partner when the certificate is appropriately amended in accordance with §620.25.

(6) The substituted limited partner has all the rights and powers, and is subject to all the restrictions and liabilities of his assignor, except those liabilities of which he was ignorant at the time he became a limited partner and which could not be ascertained from the certificate.

(7) The substitution of the assignee as a limited partner does not release the assignor from liability to the partnership under §§620.06 and 620.17.

Hlstory.-§19, ch. 21887, 1948.

620.20 Effect of retirement, death or insanity of general partner.-The retirement, death or insanity of a general partner dissolves the partnership, unless the business is continued by the remaining general partners:

(1) Under a right so to do stated in the certificate, or,

(2) With the consent of all members. IDstor;r.-§20, ch. 21887, 1943.

cf.- §620.24, When certificate cancelled or amended. §§47.16-47.20, 47.22, 47.28, 47.33-47.37, 47.41, 47.22, 47.44,

47.45, 47.50, Process, service.

620.21 Death of limited partner.-(1) On the death of a limited partner his

executor or administrator shall have all the rights of a limited partner for the purpose of settling his estate, and such power as the deceased had to constitute his assignee a substituted limited partner.

(2) The estate of a deceased limited partner shall be liable for all his liabilities as a limited partner.

IDstor;r.-§21, ch. 21887, 1943.

620.22 Rights of creditors of limited partner.-

(1) On due application to a court of competent jurisdiction by any creditor of a limited partner, the court may charge the interest of the indebted limited partner with payment of the unsatisfied amount of such claim; and may appoint a receiver, and make all other orders,

Ch. 620 LIMITED PA RTNERSHIPS Ch. 620

directions and inquiries which the circumstances of the case may require.

(2) The interest may be redeemed with the separate property of any general partner, but may not be redeemed with partnership property.

(3) The remedies co~ferred by subsection (1) shall not be deemed exclusive of others which may exist.

(4) Nothing in this chapter shall be held to deprive a limited partner of his statutory exemption.

Blstory.-§22, ch. 21887, l.948.

620.23 Distribution of assets.-(1) In settling accounts after dissol~tion

the liabilities of the partnership shall be entitled to payment in the following order:

(a) Those to creditors, in the order of .pr~or. ity as provided by law, except those to hmited partners on account of their contributions, and to general partners,

(b) Those to limited partners in respect to their share of the profits and other compensation by way of income on their contributions,

(c) Those to limited partners in respect to the capital of their contributions,

(d) Those to general partners other than for capital and profits,

(e) Those to general partners in respect to profits,

(f) Those to general partners in respect to capital.

(2) Subject to any statement in the certificate or to subsequent agreement, limited partners share in the partnership assets in respect to their claims for capital, and in respect to their claims for profits or for compensation by way of income on their contributions respectively, in proportion to the respective amounts of such claims.

WstorY.-§23, ch. 21887, 1943.

620.24 When certificate canceled or amended.-

(1) The certificate shall be canceled when the partnership is dissolved or all limited partners cease to be such.

(2) A certificate shall be amended when: (a) There is a change in the name of the

partnership or in the amount or character of the contribution of any limited partner,

(b) A person is substituted as a limited partner,

(c) An additional limited partner is admitted,

(d) A person is admitted as a general partner,

(e) A general partner retires, dies or becomes insane, and the business is continued under §620.20,

(f) There is a change in the character of the business of the partnership,

(g) There is a false or erroneous statement in the certificate,

(h) There is a change in the time as stated in the certificate for the dissolution of the partnership or for the return of a contribution,

(i) A time is fixed for the dissolution of the partnership, or the return of a contribution, no time having been specified in the certificate, or,

(j) The members desire to make a change in any other statement in the certificate in order that it shall accurately represent the agreement between them.

BI8tory.-§24, ch. 21887. 1943.

620.25 Requirements for amendment and cancellation of certificate.-

(1) The writing to amend a certificate shall: (a) Conform to the requirements of §620.02

(1) (a) as far as necessary to set forth clearly the change in the certificate which it is desired to make, and,

(b) Be signed and sworn to by all members, and an amendment substituting a limited partner or adding a limited or general partner shall be signed also by the member to be substituted or added, and when a limited partner is to be substituted, the amendment shall also be signed by the assigning limited partner.

(2) The writing to cancel a certificate shall be signed by all members.

(3) A person desiring the cancellation or amendment of a certificate, if any person designated in subsections (1) and (2) as a person who must execute the writing refuses to do so, may petition the circuit court in the county where the principal place of business of the limited partnership is located to direct a cancellation or amendment thereof.

(4) If the court finds that the petitioner has a right to have the writing executed by a person who refuses to do so, it shall order the secretary of state to record the cancellation or amendment of the certificatp.: and where the certificate is to be amended, the court shall also cause to be filed for record in said office a certified copy of its decree setting forth the amendment.

(5) A certificate is amended or canceled when there is filed for record in the office of the secretary of state where the certificate is recorded:

(a) A writing in accordance with the provisions of subsection (1) or (2), or,

(b) A certified copy of the order of court in accordance with the provsions of subsection (4).

(6) After the certificate is duly amended in accordance with this section, the amended certificate shall thereafter be for all purposes the certificate provided for by this chapter.

Hlstory.-§25, ch. 21887, 1943. Cf.-§§620.06, 620.08, 620.19, ASSignment of Interest.

620.26 Parties to actions.-A contributor, unless he is a general partner, is not a proper party to proceedings by or against a partnership, except where the object is to enforce a limited partner's right against or liability to the partnership.

HlstorY.-§26, ch. 21887, 1943.

620.27 Short title.-This chapter may be cited as the uniform limited partnership law.

Wstory.-§27. eh. 21887, 1943.


620.28 Rules of construction.-(1) The rule that statutes in derogation of

the common law are to be strictly construed shall have no application to this chapter.

(2) This chapter shall be so interpreted and construed as to effect its general purpose to make uniform the law of those states which enact it.

(3) This chapter shall not be so construed as to impair the obligations of any contract existing on May 31, 1943, nor to affect any action on proceedings begun or right accrued before May 31, 1943.

JIllIt017 .-128. ch. 21887. 1948.

620.29 Rules for cases not provided for in this chapter.-In any case not provided for in this chapter the rules of law and equity, including the law merchant, shall govern.

m.to17.-I29. ch. 21887. 1948.

620.30 Service of process on limited partnerships.-When any original process is sued out against a limited partnership, the service of said prOCeE!'l on any general partner in the limited partnership shall be as valid as if served on each individual member thereof; and the plaintiff may, after service upon anyone member as aforesaid, proceed to judgment and execution against the limited partnership and the general partners individually. Service of process as provided by §47.16, shall apply to limited partnerships organized under this chapter.

Hlato17.-§SO. ch. 21887. 1948.

620.31 Duty of secretary of state.-The secretary of state each year shall compile a list of the names of all limited partnerships who secured certificates of authority during the pre-

vious year and who failed for six months to secure a new certificate of authority or a renewal of their certificate of authority, and the secretary of state shall publish such list in a newspaper one time in the county in which the home office of such limited partnership is located and such notice shall state that such partnership did not renew its certificate of authority to do business under this chapter. It is declared to be the policy of this chapter that the rights, privileges and benefits granted to limited partnerships by this chapter are on an annual ba,.sis or from year to year and are granted only after such limited partnership has met the requirements hereof regarding securing certificate of authority or renewal thereof.

mstoQ'.-§31. 00. 21887. 1943; 124, 00. 67-1.

620.32 Secretary of state to prescribe forms.-The secretary of state shall prescribe the forms and furnish the blanks upon request to make the annual reports called for in this chapter. It shall be the duty of the secretary of state to examine the reports when received and if the information called for in this chapter is given in such reports he shall file the same as information and keep such reports as public records. He shall pay into the state treasury, to the credit of the general revenue fund, all moneys collected under the provisions of this chapter. Such amounts for printing forms, postage, files, clerical and other expenses found to be actually necessary in carrying out the provisions of this chapter shall be included in the biennial appropriations act.

m.tory.-Comp. 132, ch. 21887, 1943. Am. 1139, 00. 26869. 1951.

PART II

FOREIGN LIMITED PARTNERSHIPS

620.40 Foreign limited partnerships; definition. 620.41 Permit required. 620.42 Contents of certificate. 620.43 Issuance of permit. 620.44 Fees payable to secretary of state. 620.45 Filing of amendments to certificate.

620,40 Foreign limited partnerships; definition.-For the purpose of part II of this chapter a foreign limited partnership is defined to be a partnership formed by two or more persons under the laws of any other state or territory or of any other country having as members one or more general partners and one or mOle limited partners. The limited partners as :JUch shall not be bound by the obligations of the ~artnership.

m.tory.-§l. ch. 59-390.

620.41 Permit required.-(1) No foreign limited partnership shall

transact business or acquire, hold or dispose of property in this state until it shall have filed in the office of the secretary of state a duly authenticated copy of its certificate and shall have received from him a permit to transact business in this state.

620.46 620.47

620.48 620.49

Revocation of permit. Validity of contracts of partnership

unaffected by noncompliance. Penalty for violations. Service of process.

(2) Any foreign limited partnership which shall violate the provisions of part II of this chapter shall render itself and its partners, both limited and general, severally liable to the penalties and fines prescribed by part II of this chapter.

m.toQ'.-12, 00. 111-381.

620.42 Contents of certificate.-(1) The certificate required by §620.41 shall

reflect the following: (a) The name of the partnership; provided

said name shall comply with the provisions of §620.05, part I of this chapter;

(b) The character of the business; (c) The location of the principal place of

business; (d) The name and place of residence of

each member; general and limited partners being respectively designated;


(e) The term for which the partnership is to exist;

(f) The amount of cash and a description of and the agreed value of the other property contributed by each limited partner;

(g) The additional contributions, if any agreed to be made by each limited partner and the times at which or events on the happening of which they shall be made;

(h) The time, if agreed upon, when the contribution of each limited partner is to be returned;

(i) The share of the profits or the other compensation by way of income which each limited partner shall receive by reason of his contribution;

(j) The right, if given, of a limited partner to substitute an assignee as contributor in his place and the terms and conditions of the substitution;

(k) The right, if given, of the partners to admit additional limited partners;

(1) The right, if given, of one or more of the limited partners to priority over other limited partners, as to compensation by way of income, and the nature of such priority;

(m) . The right, if given, of the remaining general partner or partners to continue the business on the death, retirement or insanity of a general partner;

(n) The right, if given, of a limited partner to demand and receive property other than cash in return for his contribution, and

(2) An affidavit shall accompany the authenticated copy of the partnership certificate naming the principal place of business in Florida and shall also contain such information required by paragraphs (a)-(n) of subsection (1), not set out in said partnership certificate.

History.-13, ro. 59-395.

620.43 Issuance of permit.-Upon the filing of such copy the secretary of state shall, if the objects of the limited partnership are such as are not prohibited by the laws of the state, issue a permit allowing such foreign limited partnership to transact business in this state and such partnership shall thereupon be empowered to exercise all and be limited to the same rights, powers and privileges as like partnerships organized under the laws of this state.

History.-§4, ch. 59-395.

620.44 Fees payable to secretary of state.The fees of the secretary of state under part II of this chapter shall be as follows: For receiving, filing and indexing certificates, statements, affidavits, decrees or any other papers provided for by this chapter, a filing fee in each case to be paid at the time of the first filing and on January 1 annually thereafter an amount based upon the amount of capital employed or to be employed in the state according to the following schedule: Two dollars per thousand dollars of invested capital; provided, however, that no filing fee shall be less than ten dollars nor more than five hundred dollars. Upon the

payment of such filing fee, on the first filing, and on each annual payment thereafter, the secretary of state shall issue his permit of authority to do business to said limited partnership and it shall be unlawful for such limited partnership to transact business as such until such filing fee has been paid; provided, further, that the annual filing fee payable on January 1 next following the date of the original filing the amount of the filing fee shall be prorated for that portion of the year the limIted partnership has existed between the original filing date a:.d the next ensuing January 1. Such permit of authority to be issued by the secretary of state shall be prima facie evidence of the right of such limited partnership to do business under the terms and provisions of this chapter and shall be considered as the payment to the state for the rights, privileges, protection and benefits conveyed by the provisions of part II of this chapter, and no such limited partnership shall do business in this state without first having obtained the permit of authority of the secretary of state for the ensuing year.

History .-§6, ch. 69-396.

620.45 Filing of amendments to certificate. -Every foreign limited partnership amending its certificate after receiving a permit as provided in §620.43, shall within sixty days after such amendment, file a duly authenticated copy thereof in the office of the secretary of state. The secretary of state shall issue to the partnership a certificate of the filing after receipt of a filing fee of ten dollars.

History.-§ 6, ch. 59-396.

620.46 Revocation of permit.-The secretary of state may revoke a permit of any foreign limited partnership failing to file any report or pay any tax required by part II of this chapter.

Hlstory.-16, ch. 59-395.

620.47 Validity of contracts of partnership unaffected by noncompliance.-The failure of any foreign limited partnership to comply with the provisions of part II of this chapter, shall not affect the validity of any contract with such foreign limited partnership, but no action shall be maintained or recovery had in any of the courts of this state by any such partnership or its successors or assigns so long as such foreign limited partnership fails to comply with the provisions of part II of this chapter.

History .-§ 7, ch. 59-395.

620.48 Penalty for violations.-The members of any foreign limited partnership, whether general or special partners, who shall violate the provisions of this chapter prescribing the terms and conditions upon which foreign limited partnerships for profit may transact business or acquire, hold or dispose of property in this state shall be held liable for the debts of the limited partnership as general partners.

History.-18, ch. 69-3911.


620.49 Service of process.-Service of process may be had on any general partner found in Florida and shall be valid as if served on each individual member of the partnership. In the event no general partner can be found in

Florida, service of process may be effected by service upon the secretary of state as agent of said limited partnership as provided for in §47.16. BIa~~..-19. ch. &8-3111.

Ch. 621 PROFESSIONAL SERVICE CORPORATION ACT Ch. 621

CHAPTER 621

PROFESSIONAL SERVICE CORPORATION ACT

621.01 Legislative intent. 621.02 Short title. 621.03 Definitions. 621.04 Exemptions. 621.05 .Corporation organization. 621.06 Rendition of professional services, limi

tation. 621.07 Liability of officers, shareholders, cor

poration, etc.

621.01 Legislative intent.-It is the legislative intent to provide for the incorporation of an individual or group of individuals to render the same professional service to the public for which such individuals are required by law to be licensed or to obtain other legal authorization.

Hlstory.-11. ch. 61-64.

621.02 Short title.-This act may be cited as the professional service corporation act.

Hlstor;r.-§2. ch. 61-64.

621.03 Definitions.-As used in this act the following words shall have the meaning indicated:

(1) The term professional service means any type of personal service to the public which requires as a condition precedent to the rendering of such service the obtaining of a license or other legal authorization and which prior to the passage of this act and by reason of law could not be performed by a corporation. By way of example and without limiting the generality thereof, the personal services which come within the provisions of this act are the personal services rendered by certified public accountants, public accountants, chiropractors, dentists, osteopaths, physicians and surgeons, doctors of medicine, doctors of dentistry, podiatrists, chiropodists, architects, veterinarians, attorneys at law and life insurance agents.

(2) The term professional corporation means a corporation which is organized under this act for the sole and specific purpose of rendering professional service and which has as its shareholders only individuals who themselves are duly licensed or otherwise legally authorized within this state to render the same professional service as the corporation.

IDstory.-§3. ch. 61-64.

621.04 Exemptions.-This act shall not apply to any individuals or groups of individuals within this state who prior to the passage of this act were permitted to organize a corporation and perform personal services to the public by the means of a corporation, and this act shall not apply to any corporations organized by such individual or group of individuals prior to the passage of this act; provided, however, any such individual or group of individuals or any such corporation may bring themselves and such corporation within the provisions of this act by amending the articles of incorporation in such a manner so as to be consistent

621.08 Limitation on corporation's business transactions; investment of funds.

621.09 Limitation on issuance and transfer of stock.

621.10 Disqualification of shareholder, officer, etc.; forfeiture of charter.

621.11 Alienation of shares, restrictions. 621.12 Identification with shareholders. 621.13 Applicability of chapter 608. 621.14 Construction of law.

with all the provisions of this act and by affirmatively stating in the amended articles of incorporation that the shareholders have elected to bring the corporation within the provisions of this act.

IDstory.-§4. ch. 61-64.

621.05 Corporation organization.-An individual or group of individuals duly licensed or otherwise legally authorized to render the same professional services within this state may organize and become a shareholder or shareholders of a professional corporation for pecuniary profit under the provisions of chapter 608 for the sole and specific purpose of rendering the same and specific professional service.

IDst0Jr7.-§6, ch. 61-64.

621.06 Rendition of professional services, limitation.-N 0 corporation organized and incorporated under this act may render professional services except through its officers, employees and agents who are duly licensed or otherwise legally authorized to render such professional services within this state; provided, however, this provision shall not be interpreted to include in the term "employee" as used herein clerks, secretaries, bookkeepers, technicians and other assistants who are not usually and ordinarily considered by custom and practice to be rendering professional services to the public for which a license or other legal authorization is required.

Hlstor;r.-§6, ch. 61-64.

621.07 Liability of officers, shareholders, corporation, etc.-Nothing contained in this act shall be interpreted to abolish, repeal, modify, restrict or limit the law now in effect in this state applicable to the professional relationship and liabilities between the person furnishing the professional services and the person receiving such professional service and to the standards for professional conduct. Any officer, shareholder, agent or employee of a corporation organized under this act shall remain personally and fully liable and accountable for any negligent or wrongful acts or misconduct committed by him, or by any person under his direct supervision and control, while rendering professional service on behalf of the corporation to the person for whom such professional services were being rendered. The corporation shall be liable up to the full value of its property for any negligent or wrongful acts or misconduct committed by any of its officers,

Ch. 621 PROFESSIONAL SERVICE CORPORATION ACT Ch. 621

shareholders, agents or employees while they are engaged on behalf of the corporation in the rendering of professional services.

Hi8tory.-§7. ch. 61-64.

621.08 Limitation on corporation's business transactions; investment of funds.-No corporation organized under this act shall engage in any business other than the rendering of the professional services for which it was specifically incorporated; provided, however, nothing in this act or in any other provisions of existing law applicable to corporations shall be interpreted to prohibit such corporation from investing its funds in real estate, mortgages, stocks, bonds or any other type of investments, or from owning real or personal property necessary for the rendering of professional services.

Blstory.-§8. ch. 61-64.

621.09 Limitation on issuance and transfer of stock.-N 0 corporation organized under the provisions of this act may issue any of its capital stock to anyone other than an individual who is duly licensed or otherwise legally authorized to render the same specific professional services as those for which the corporation was incorporated. No shareholder of a corporation organized under this act shall enter into a voting trust agreement or any other type agreement vesting another person with the authority to exercise the voting power of any or all of his stock.

Bistory.-§9. ch. 61-64.

621.10 Disqualification of shareholder, officer, etc.; forfeiture of charter.-If any officer, shareholder, agent or employee of a corporation organized under this act who has been rendering professional service to the public becomes legally disqualified to render such professional services within this state, or is elected to a public office or accepts employment that, pursuant to existing law, places restrictions or limitations upon his continued rendering of such professional services, he shall sever all employment with, and financial interests in, such corporation forthwith. A corporation's failure to require compliance with this provision shall constitute a ground for the forfeiture of its articles of incorporation and its dissolution. When a corporation's failure to comply with this provision is brought to the attention of the office of the secretary of state, the secretary of state forthwith shall certify that fact to the attorney general for appropriate action to dissolve the corporation.

Blstory.-§lO. ch. 61-64.

621.11 Alienation of shares, restrictions.No shareholder of a corporation organized under this act may sell or transfer his shares in such corporation except to another individual who is eligible to be a shareholder of such corporation, and such sale or transfer may be made only after the same shall have been approved, at a stockholders' meeting specially called for such purpose, by such proportion, not less than a majority, of the outstanding stock as may be provided in the certificate of incorporation or in the bylaws. At such shareholders' meet-

ing the shares of stock held by the shareholder proposing to sell or transfer his shares may not be voted or counted for any purpose. The articles of incorporation may provide .specifically for additional restraints on the alienation of shares and may require the redemption or purchase of such shares by the corporation at prices and in a manner specifically set forth in such articles or the articles may specifically authorize the corporation's board of directors or its shareholders to adopt bylaws 'restraining the alienation of shares and providing for the purchase or redemption by the corporation of its shares; provided, however, such provisions dealing with the purchase or redemption by the corporation of its shares may not be invoked at a time or in a manner that would impair the capital of the corporation.

History.-§l1. ch. 61-64.

621.12 Identification with shareholders.The corporate name of a corporation organized under this act shall contain the last names of some or all of the shareholders and shall also contain the word "chartered" or "professional association" or the abbreviation "P.A." The use of the words "company," "corporation" or "incorporated" or any other word, abbreviation, affix or prefix indicating that it is a corporation in the corporate name of a corporation organized under this act, other than the words "chartered" or "professional association," or the abbreviation "P.A.," is specifically prohibited. It shall be permissible, however, for the corporation to render professional services and to exercise its authorized powers under a name which is identical to its corporate name except that the words "chartered" or "professional association" or the abbreviation "P.A." is omitted, provided that the corporation has first registered the name to be so used in the manner required for the registration of fictitious names.

Blstory.-§12. ch. 61-64.

621.13 Applicability of chapter 608.-Chapter 608 is applicable to a corporation organized pursuant to this act except to the extent that any of the provisions of this act are interpreted to be in conflict with the provisions of chapter 608, and in such event the provisions and sections of this act shall take precedence with respect to a corporation organized pursuant to the provisions of this act. A professional corporation organized under this act shall consolidate or merge only with another domestic professional corporation organized under this act to render the same specific professional service and a merger or consolidation with any foreign corporation is prohibited.

Blstory.-§13. ch. 61-64.

621.14 Construction of law.-The provisions of this act shall not be construed as repealing, modifying or restricting the applicable provisions of law relating to incorporations, sales of securities or regulating the several professions enumerated in this act except in so far as such laws conflict with the provisions of this act.

History.-§ 15. ch. 61-64.

Ch.622 FOREIGN UNINCORPORATED ASSOCIATIONS Ch.622

CHAPTER 622 FOREIGN UNINCORPORATED ASSOCIATIONS

622.01 Chapter permissive. 622.02 Definitions. 622.03 Qualification. 622.04 Process.

622.01 Chapter permissive. -- Qualification in compliance with this chapter is not and shall not be mandatory, and is and shall be optional, as a permissive alternative to compliance with any other law or laws with respect to the trade, business or fictitious name or style, and the recording, registration or publication thereof, under which business may be transacted by an unincorporated association, company or group of persons; but no foreign association, as defined hereinafter, shall enjoy or exercise the powers conferred by this chapter unless it shall have qualified in compliance herewith.

HI8tOry.-I1, eh. 23897, 1947.

622.02 Definitions.-(1) FOREIGN ASSOCIATION.-The term

"Foreign association" as used in this chapter shall mean and include any unincorporated joint stock association for profit, created and existing under the laws of any state other than this state, or of the District of Columbia, or of any territory or possession of the United States, engaged in any business or &usinesses other than the banking, trust or insurance business, and having written articles of association, capital stock divided into shares, and a name including the word "company" or "association" or "society"; but shall not mean nor include any unincorporated association, company or group of persons engaged in the banking, trust or insurance business.

(2) ASSOCIATION.-The term "association" as used in this chapter shall mean and include any foreign association that shall have qualified, in the manner permitted by ~his chapter, to transact business and acquire, hold and dispose of property and sue and be sued in this state.

Hf8tory.-12, eh. 23897, 1947.

622.03 Qualification.-Any foreign association may qualify to transact business and acquire, hold and dispose of property and sue and be sued in this state, by complying with all requirements of law, including but not limited to the paying of all fees, taxes and other charges, now or hereafter prescribed for qualification by foreign corporations for profit to transact business in this state, and all laws heretofore or hereafter enacted prescribing requirements to be observed by foreign corporations for profit in so qualifying shall apply to and govern and control such qualification by foreign associations, except that in lieu of filing an authenticated copy of any charter, c..r certificate of incorporation, or articles of incorporation, the foreign association shall file a duly authenticated copy of its written articles of association.

Hlstory.-§3. eh. 23897. 1947. ct.-1608.05 Filing fees and taxes for corporations.

1613.02 Issuing business permits to foreign corporations. 1613.03 Charter amendment. for forellD corporations.

622.05 Annual reports. 622.06 Name. 622.07 Powers.

622.04 Process. - Every association shall comply with all requirements of law, including but not limited to the paying of all fees and charges, now or hereafter prescribed for the designation and maintenance of an office for the service of process, the appointment of a resident agent upon whom process may be served, and the acceptance of such appointment, by foreign corporations for profit qualified to transact business in this state, and all laws heretofore or hereafter enacted with respect to such offices and agents shall apply to and govern and control all associations.

Hlstory.-l4- eh. 23897, 1947. .Am. Ill, eh. 26036, 1949.

cf.-§§47.34-47 ... Service of proce .... corporatlons. 622.05 Annual reports.-Every association

shall comply with all requirements of law, including but not limited to the paying of all fees, taxes and other charges, now or hereafter prescribed for the filing of annual reports by foreign corporations for profit qualified to transact business in this state, except railroad, pullman, telephone, telegraph and insurance companies, and all laws heretofore or hereafter enacted with respect to such reports shall apply to and govern and control all associations.

Hlstory_16, eh. 23897, 1947.

622.06 Name.-Every association may transact business in this state in its name, without including as a part thereof, or displaying or publishing in connection or conjunction therewith, the words "not incorporated," or any similar words, and without making any other showing or display of the fact that it is unincorporated, and without recording, registering or publishing its name as a trade, business or fictitious name. Any other law or laws heretofore or hereafter enacted with respect to an unincorporated association, company or group of persons doing business under any trade, business or fictitious name or style including the word "company" or "association" or "society," or with respect to the recording, registration or publication of any trade, business or fictitious name or style, shall not apply to nor govern nor control an association, and every association is and shall be exempted from the provisions and requirements thereof.

Hlstory.-§6, eh. 23897, 1947. 622.07 Powers.-Every association shall

have power and authority to transact business and acquire, hold and dispose of property and sue and be sued in this state; provided that such association shall file with the secretary of state a sworn statement setting forth the name under which such association is authorized to transact business and acquire, hold and dispose of property, and the style by which it is prescribed that such association shall sue and be sued, under the law or laws under which it shall have been created and shall be existing. BIlto..,..-S", ch. 2389'l, 1M".

Ch. 623 PRIVATE SCHOOL CORPORATION LAW Ch. 623

CHAPTER 623

PRIVATE SCHOOL CORPORATION LAW

623.01 623.02 623.03

623.04 623.05 623.06 623.07

Short title. Private school corporation; charter. Charter; submission to and approval

by circuit court; recordation. Charter; amendment. Evidence in court proceedings. Dissolution of corporation. Consolidation or merger of corpora-

tions.

623.01 Short title.-This law may be cited as "the private school corporation law of 1959," and shall be assigned an individual chapter number.

Hist01'7.-§1, ch. 69-113.

623.02 Private school corporation; charter. -Any twenty-five or more adult persons, who are legal residents of Florida and of the county in which any corporation may be formed hereunder, may form a private school corporation, under the provisions of this act and such private school shall be incorporated in the following manner:

There shall be presented to one of the judges of the circuit court for the county in which such corporation will operate, a proposed charter subscribed by the intended incorporators, which shall set forth:

(1) The name of the corporation which name shall include the words "private school."

(2) A designation of the geographic area in which such corporation will operate its school or schools.

(3) The object and purpose of the corporation.

(4) The qualifications of the members and the manner of their designation.

(5) The term for which the corporation will exist, which term may be perpetual.

(6) The names and addresses of the charter members.

(7) The names of the officers who shall manage the affairs of the corporation until the first election of officers.

(8) The procedure by which the by-laws of the corporation shall be made, altered or rescinded.

Hist01'7.-12, ch. 69-113.

623.03 Charter; submission to and approval by circuit court; recordation.-The proposed charter shall be acknowledged by one of the subscribing incorporators before an officer authorized to take acknowledgements of deeds, which said subscribing incorporator shall also take and subscribe to an oath, to be endorsed on the proposed charter, that it is intended in good faith to carry out the purposes and objectives set forth therein and as provided in this act.

The circuit judge to whom the proposed charter is presented, finding the same to be in proper form and for the objective and purpose authorized by this act, and in accordance with the provisions and limitations of this act shall

623.08

623.09 623.10 623.11 623.12 623.13

623.14

Operation of separate schools in same county.

Taxation exemption. Powers and duties. Corporation membership. Board of directors. Administration, supervision and opera

tion by private persons or entities. Construction.

approve the charter and endorse his approval thereon. The charter shall then be recorded in the office of the clerk of such circuit court and from thenceforth the subscribers and their associates and successors shall be a nonprofit eleemosynary corporation by the name given.

History.-13, ch. 69-113.

623.04 Charter; amendment.-The charter of any corporation incorporated under this act may be amended as follows:

When the members of the corporation at a regular or special meeting held in accordance with its by-laws shall approve a resolution providing an amendment to the charter, a copy of such resolution certified by the president and secretary shall be presented to the judge of the circuit court of the county and if he finds the amendment to be proper in form and substance he shall endorse his approval thereon and it shall be recorded by the clerk of the circuit court and the amendment shall be effective from the date of record.

BI.t01'7.-§4, ch. 69-113.

623.05 Evidence in court proceedings.-The original charter, with the clerk's certificate of recording thereon, or a duly certified copy thereof, shall be evidence of the contents of the charter in all actions and proceedings, and shall be conclusive evidence of the existence of such corporation in all actions and proceedings where the question of its existence is only collaterally involved and prima facie evidence in all other actions and proceedings.

mst01'7.-§5, 00. 69-113.

623.06 Dissolution of corporation. - Any such corporation may be dissolved upon its petition to the circuit judge who shall order notice thereof to be published for such period of time as he may deem expedient and upon proof of such publication he may decree dissolution and make all necessary orders and decrees for the settlement of the affairs of such corporation, taking care that the claims of creditors be satisfied to the extent of the assets of the corporation.

Blst01'7.-§8, ch. 69-113.

623.07 Consolidation or merger of corporations.-

(1) Any two or more corporations existing under the provisions of this act and operating within the same county may consolidate into a new corporation or merge into anyone of the constituent corporations, as shall be speci-

PRIVATE SCHOOL CORPORATION LAW Ch. 623

fied in the consolidation or merger agreement. The board of directors of such corporation or a majority of the members of such corporation at a meeting however duly called or held, as desire to consolidate or merge may enter into an agreement signed by a majority of the members of the several boards of directors or as the case may be, by a majority of such corporation members at such meeting prescribing the terms and conditions of consolidation or merger, the mode of carrying the same into effect, and stating such other facts as are necessary to be set out in the charter with such other details and provisions as are necessary or desirable.

(2) The agreement shall be submitted to a meeting of the members of record of each corporation. Notice of the time, place and purpose of the meeting shall be given to every member of such corporations. Upon adoption of the agreement by the majority of the corporate members of each corporation the secretary of each corporation shall certify the fact of that approval on said agreement. The agreement so adopted and certified shall for each corporation be signed and acknowledged by the president or vice-president. The agreement so certified and acknowledged by each corporation shall be filed with the clerk of the circuit court in the county where such corporations exist and when approved by a circuit judge of such county the consolidation or merger shall be effective.

Wstory.-§7. ch. 59-113.

623.08 Operation of separate schools in same county.-A corporation incorporated under the provisions of this act to operate in an entire county, or major area thereof may operate separate schools in such area and in such locations as it may deem necessary or advisable and under such rules and regulations as specified in the by-laws.

Wstory.-§8. ch. 59-113.

623.09 Taxation exemption.-The property of any private school corporation incorporated under the provisions of this act shall be exempt from taxation in accordance with §192.06 (3), and as otherwise provided by law.

Wstory.-§9. ch. 59-113.

623.10 Powers and duties.-Any corporation existing under the provisions of this act, unless otherwise limited by its charter or bylaws shall have the following powers:

(1) To purchase, own, lease, hold, sell, convey, assign, transfer, mortgage, pledge or otherwise dispose of real and personal property tangible and intangible.

(2) To borrow money and contract debts whenever necessary for the transaction of its business or for the exercise of its corporate powers, rights and privileges, or for any other lawful purpose; to issue bonds, promissory notes, bills of exchange, debentures and other obligations and evidences of indebtedness, pay-

able at a specified time, or payable upon the happening of a specified event, whether secured by mortgages, pledge or otherwise, or unsecured for money borrowed or in payment of property purchased or acquired, or for any other lawful object.

(3) To accept gifts from members and nonmembers and other legitimate sources.

(4) To do all things necessary and proper for the accomplishment of the objectives and purposes of the corporation as enumerated in its charter, its by-laws, or any amendment thereof, or necessary or incidental to the attainment of the objectives and purposes of the corporation.

(5) To sue and be sued. Blstory.-§10. ch. 59-113.

623.11 Corporation membership.-The membership of a corporation existing under the provisions of this act shall be composed of persons who have been approved for membership, as provided by the charter and by-laws of the corporation.

Wstory.-§I1. ch. 59-113.

623.12 Board of directors.-The control of of such corporation shall be vested in a board of directors of not less than five nor more than eleven (to be specified by the charter) elected for the ensuing year by a majority vote of the members present at the annual meeting of the membership. The board of directors, from and by its membership and by majority vote thereof at the first regular meeting following the annual meeting of the membership shall elect the following officers whose duties in addition to those prescribed by the by-laws shall be as follows:

(1) A president who shall be the chief executive officer of the corporation and who shall preside at all meetings of the members and of the board of directors and shall perform such other duties as may be prescribed by the by-laws or directed by the board of directors.

(2) A vice-president who in the absence or inability of the president to perform his duties shall act as president for the duration of such absence or inability and who shall perform such other duties as may be prescribed by the by-laws or directed by the board of directors.

(3) · A secretary-treasurer who shall keep the minutes of all meetings of the corporation, shall receive and keep all corporate funds and securities; shall keep all accounts and records of the corporation; examine, audit, adjust and settle all accounts of the corporation and perform such other duties as may be prescribed by the by-laws or directed by the board of directors.

Only the secretary-treasurer, when authorized by the board of directors, shall receive any monetary reward for his services, except actual and reasonable expenses while performing services for the corporation.

Wstory.-t12. ch. 68-113.

Ch. 623 PRIVATE SCHOOL CORPORATION LAW Ch. 623

623.13 Administration, supervision and operation by private persons or entities.-Any corporation organized and existing under this act shall be administered, supervised, operated, financed and controlled exclusively by private persons and private entities and their funds. All persons while acting in any public official capacity are hereby specifically prohibited from engaginK in any manner in such administra-

tion, supervision, operation, financing and control of the affairs of such corporation.

mstorJ.-i13. ell. 118-113.

623.14 Construction.-The provisions of this act shall be deemed to be accumulative and supplemental to any other powers and authority for the creation of corporations not for profit as set out in chapter 617.

Bbtorr.-Ili. ch. 118-113.

TITLE XXXV

INSURANCE

CHAPTER 624

INSURANCE CODE; ADMINISTRATION AND GENERAL PROVISIONS

PART I SCOPE OF CODE

PART II THE INSURANCE COMMISSIONER

PART III AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS

PART IV FEES, TAXES AND FUNDS

P ART V KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE

PART I

SCOPE OF CODE

624.01 Short title. 624.02 Insurance defined. 624.03 Insurer defined. 624.04 Person defined. 624.05 Commissioner, department defined. 624.06 Domestic, foreign, alien insurer defined. 624.07 Domicile defined. 624.08 State defined. 624.09 Authorized, unauthorized insurer de

fined. 624.10 Transacting insurance. 624.11 Compliance required.

624.01 Short title.-Chapters 624 through 632 constitute the Florida insurance code.

Bldor,'.-11, ch. 09-200.

624.02 Insurance defined.-"Insurance" is a contract whereby one undertakes to indemnify another or payor allow a specified amount or a determinable benefit upon determinable contingencies.

Blstor,. .-§2, ch. 59-200. Note.-Slmlla.r provisions found In former 1630.10.

624.03 Insurer defined.-"Insurer" includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuity.

Bldor,'.-13, ch. 09-200. Note.-Slmlla.r provisions found In former §§620.01, 627.72,

138.12, 628.13, 628.14, 629.01, 630.01, 630.10, 635.173, 636.23, 845.01.

624.04 Person defined.-"Person" includes an individual, insurer, company, association, organization, Lloyds, society, reciprocal insurer or interinsurance exchange, partnership, syndicate, business trust, corporation, agent, general agent, broker, solicitor, service representative, adjuster, and every legal entity.

Bldor,. .-§ 4, ch. 59-205. Note.-SlmUa.r provisions found In former 11628.12, 628.13,

'128.14, 630.01, 635.173, 643.02.

624.05 Commissioner, department defined.(1) "Commissioner" means the state treas-

624.12 Application of code as to particular types of insurers.

624.13 Particular provisions prevail. 624.14 Captions not to affect meaning. 624.15 General penalty. 624.16 Existing certificates of authority. 624.17 Existing licenses, permits. 624.18 Transitory license period; life, disabil

ity insurance agents. 624.19 Existing forms and filings. 624.20 Saving clause.

urer as ex officio insurance commissioner of this state.

(2) "Department" means the insurance department of this state, unless context otherwise requires.

Blotor,..-15, ch. 59-205. Note.-Slmlla.r provisions found In former §§625.01, 626.01,

627.72, 627.73, 629.01, 634.01, 636.23, 643.02, 644.01, 645.01, 646.02.

624.06 Domestic, foreign, alien insurer defined.-

(1) A "domestic" insurer is one formed under the laws of this state.

(2) A "foreign" insurer is one formed under the laws of any jurisdiction other than this state.

(3) An "alien" insurer is one formed under the laws of any country other than the United States, its states, district, territories, and commonwealths.

(4) Except where distinguished by context, "foreign" insurers includes also "alien" insurers.

Blotor,. .-§ 6, ch. 69-200.

624.07 Domicile defined.-Except as provided in §631.011, the "domicile" of an insurer means:

(1) As to Canadian insurers, Canada and the province under the laws of which the insurer was formed.

Ch.624 INSURANCE CODE; ADMINISTRATION AND GENERAL PROVISIONS Ch. 624

(2) As to other alien insurers authorized to transact insurance in one or more states, as provided in §624.0228(6).

(3) As to alien insurers not authorized to transact insurance in one or more states, the country under the laws of which the insurer was formed.

(4) As to all other insurers, the state under the laws of which the insurer was formed.

mstor;r.-§7, ch. 59-205.

624.08 State defined.-When used in context signifying a jurisdiction other than the state of Florida, "state" means any state, district, territory, or commonwealth of the United States and the Panama canal zone.

motor;r.-§8, ch. 59-205.

624.09 Authorized, unauthorized insurer defined.-

(1) An "authorized" insurer is one duly authorized by a subsisting certificate of authority issued by the commissioner to transact insurance in this state.

(2) An "unauthorized" insurer is one not so authorized.

mstor;r.-§9, ch. 59-2011.

624.10 Transacting insurance.-"Transact" with respect to insurance includes any of the following, in addition to other applicable provisions of this code:

(1) Solicitation or inducement. (2) Preliminary negotiations. (3) Effectuation of a contract of insurance. (4) Transaction of matters subsequent to

effectuation of a contract of insurance and arising out of it.

mstor;r.-§10, ch. 59-201.

624.11 Compliance required.-No person shall transact insurance in Florida, or relative to a subject of insurance resident, located or to be performed in Florida, without complying with the applicable provisions of this code.

mstor;r.-§l1, ch. 59-205. Note.-8lmUar provisions found In former §§205.44, 625.17,

626.04, 631.01, 631.03, 631.16, 636.35. 638.16, 642.02.

624.12 Application of code as to particular types of insurers.-No provision of this code shall apply with respect to fraternal benefit societies (as identified in chapter 632), except as stated in chapter 632 (fraternal benefit societies) .

mstor;r.-§12, ch. 59-205. Note.-8lmllar provisions found In former § §626.22, 629.23.

624.13 Particular provisions prevail.-Provisions of this code relative to a particular kind of insurance or a particular type of insurer or to a particular matter shall prevail over provisions relating to insurance in general or insurers in general or to such matter in general.

mstor;r.-§13, ch. 59-205.

624.14 Captions not to affect meaning.-The scope and meaning of any provision shall not be limited or otherwise affected by the caption

or heading of any chapter, part, section, subsection or paragraph.

mstor;r.-§14, ch. 59-205.

624.15 General penalty.-Each wilful violation of this code as to which a greater penalty is not provided by another provision of this code or by other applicable laws of this state shall be a misdemeanor, and may in addition to any prescribed applicable denial, suspension, or revocation of certificate of authority, license, or permit be punishable upon conviction by a fine of not more than $1000 or by imprisonment in the county jail for not more than 6 months or by both such fine and imprisonment in the discretion of the court. Each instance of such violation shall be considered a separate offense.

BI.tor;r.-§15, ch. 59-205. Note.-8lmllar provisions found In former §§625.011, 625.05,

625.07, 625.15, 625.17, 625.21, 626.21, 627.96, 627.0103, 628.11. 834.18, 635.06, 635.23, 636.44, 637.64, 638.16, 644.16.

624.16 Existing certificates of authority.(1) Every certificate of authority of an in

surer which was in force immediately prior to the effective date of this code and existing under any law herein repealed is valid until its original expiration date, unless earlier terminated in accordance with this code.

(2) Upon first renewal under this code any such certificate of authority shall be replaced by a certificate of authority in form as provided by this code, and shall thereafter be subject to continuation, suspension, revocation or termination as though originally issued under this code.

mstor;r.-§808, ch. 59-205.

624.17 Existing licenses, permits.-(1) Every license and permit in force im

mediately prior to the effective date of this code and existing under any law herein repealed is valid until its original expiration date, unless earlier terminated in accordance with this code.

(2) The respective such licenses or permits, upon first renewal (where renewability is applicable) under this code, shall be replaced by a license or permit in form as provided by this code, and shall thereafter be subject to continuation, renewal, suspension, revocation, or termination as though originally issued under this code, except as provided in §624.18.

mstor;r.-§809, ch. 59-205.

624.18 Transitory license period; life, disability insurance agents.-Any other provision of this code to the contrary notwithstanding, upon first renewal under this code of any license as life insurance agent or disability insurance agent which was in force immediately prior to the effective date of this code, the first renewal license shall be issued for a license period of six months only, expiring as at midnight on the March 31 next following the date of such renewal; and the fee and taxes chargeable and payable for the issuance of such renewal license for such six-month period shall be one-half of the respective amounts otherwise

Ch. 624 INSURANCE CODE; ADMINISTRATION AND GENERAL PROVISIONS Ch. 624

payable therefor as for a full license year under §624.0300.

mstor:r.-§810, ch. 59-205.

624.19 Existing forms and filings.-Every form of insurance document and every rate or other filing lawfully in use immediately prior to the effective date of this code may continue to be so used or be effective until the commissioner otherwise prescribes pursuant to this code; except, that before expiration of one year from and after such effective date neither this code nor the commissioner shall prohibit the use of any such document, rate, or filing because of any power, prohibition, or requirement

contained in this code which did not exist under laws in force immediately prior to such effective date.

mstor:r.-§811, ch. 59-205. Note.--slmilar provisions found In former §§629.08, 629.011.

624.20 Saving clause.-This code shall not impair or affect any act done, offense committed or right accruing, accrued, or acquired or liability, penalty, forfeiture or punishment incurred prior to the time it takes effect, but the same may be enjoyed, asserted, enforced, prosecuted or inflicted, as fully and to the same extent as if this code had not been passed.

m.tor:r.-1813. ch. &9-205.

PART II

THE INSURANCE COMMISSIONER

624.0100 624.0101 624.0102 624.0103 624.0104 624.0105 624.0106 624.0107 624.0108 624.0109 624.0110 624.0111

624.0112 624.0113 624.0114 624.0115

Insurance commissioner designated. Offices. Seal; certified copies as evidence. Deputies and assistants. Prohibited interests, rewards. Delegation of powers. General powers, duties. Rules and regulations. Orders; notices. Enforcement. Records; reproductions; destruction. Reproductions and certified copies of

records as evidence. Publications. Publications; publications trust fund. Commissioner's annual report. Examination of insurers.

624.0100 Insurance commIssIoner desig. nated.-The state treasurer is ex officio the insurance commissioner of this state.

mstor:r.-§16, ch. 59-205.

624.0101 Offices.-The commissioner shall establish and maintain offices at the state capitol in Tallahassee, and in such other places throughout the state as he may from time to time designate.

mstory.-§17. ch. 59-205. Note.--slmilar provisions found In former 1627.73.

624.0102 Seal; certified copies as evidence.(1) The commissioner shall have an official

seal, as heretofore adopted by him, by which his proceedings are authenticated.

(2) All certificates executed by the commissioner, other than licenses of agents, solicitors, adjusters, or similar licenses or permits, shall bear his seal.

(3) Any written instrument purporting to be a copy of any action, proceeding, or finding of fact by the commissioner, or any record of the commissioner or copy of any document on file in his office when authenticated under hand of the commissioner by the seal shall be accepted by all the courts of this state as prima facie evidence of the contents thereof.

mstor:r.-§18, ch. 59-205. Note.--slmilar provisions found In former 1627.73.

624.0116 Examination of agents, adjusters and others.

624.0117 Conduct of examination; access to records; correction of accounts; appraisals.

624.0118 Examination reports. 624.0119 Examination expense. 624.0120 Witnesses and evidence. 624.0121 Testimony compelled; immunity from

prosecution. 624.0122 Same; penal,ty for refusal to testify. 624.0123 Hearings. 624.0124 Same; notice. 624.0125 Same; conduct. 624.0126 Same; order. 624.0127 Rehearing or reargument. 624.0128 Appeals from the commissioner.

624.0103 Deputies and assistants.-The commissioner may appoint, employ, prescribe the duties of, and discharge such assistants, deputies, counsel, actuaries, examiners, and other employees as he deems necessary to the performance of his duties under this code. Actuaries and examiners employed by the commissioner need not meet the residence requirements of §112.02. The commissioner shall fix the compensation of all such personnel in such amount as other state employees receive for similar services.

mstor:r.-§19, ch. 59-205. Note.--slmilar provisions found In former §§626.01, 627.73,

629.14.

624.0104 Prohibited interests, rewards.(1) The commissioner or any deputy, exami

ner, counsel, actuary, assistant or employee of the commissioner shall not be financially interested, directly or indirectly, in any insurer or insurance agency authorized to transact insurance in this state, or in any insurance transaction except as a policyholder or claimant under a policy; except that as to such matters wherein a conflict of interests does not exist on the part of any such individual, the commissioner may employ or retain from time to time insurance actuaries, accountants, or other professional personnel, who are independently


practicing their professions even though similarly employed or retained by insurers or others.

(2) The commissioner or any deputy, examiner, counsel, actuary, assistant or employee of the commissioner, shall not be given nor receive any fee, compensation, loan, gift, or other thing of value in addition to the compensation and expense allowance provided by law, for any. service rendered or to be rendered as such commissioner, deputy, examiner, counsel, actuary, assistant or employee or in connection therewith.

(3) This section shall not be deemed to prohibit an insurer from making, in regular course of business, a loan to the commissioner, or any deputy, assistant, examiner, actuary, counsel, or other employee of the commissioner if such loan is adequately secured by a mortgage upon real estate or other collateral and qualifies as an eligible investment of the insurer under part II of chapter 625; or from acquiring or holding, in regular course of business, such a loan or investment originally made by others.

mstory.-520, ch. 59-203. Note.-BlmUar provisions found In former 5629.14.

624.0105 Delegation of powers.-(1) The commissioner may delegate to his

assistant, deputy, counsel, actuary, examiner or employee, the exercise or discharge in the commissioner's name of any power, duty, or function, whether ministerial, discretionary or of whatever character, vested by this code in the commissioner.

(2) The commissioner is responsible for the official acts of any such person so acting in his name and by his authority.

mstory.-521, ch. 59-205. Note.-BlmUar provisions found In former §§626.01, 626.19,

629.24.

624.0106 General powers, duties.-(1) The commissioner shall enforce the pro

visions of this code, and shall execute the duties imposed upon him by this code.

(2) The commissioner shall have the powers and authority expressly conferred upon him by or reasonably implied from the provisions of this code.

(3) The commissioner may conduct such examinations and investigations of insurance matters, in addition to examinations and investigations expressly authorized, as he may deem proper to determine whether any person has violated any provision of this code or to secure information useful in the lawful administration of any such provision. The cost of such additional examinations or investigations shall be borne by the state.

(4) The commissioner shall have such additional powers and duties as may be provided by other laws of this state.

mstory.-§22, ch. 59-205. Note.-8lmUar proTislon. found In former 11628.20, 827.73,

627.0106.

624.0107 Rules and regulations.-(1) The commissioner may make reasonable

rules and regulations necessary for or as an aid to the effectuation of any provision of this code as referred to therein. No such rule or regulation shall extend, modify, or conflict with any law of this state or the reasonable implications thereof.

(2) Any such rule or regulation affecting persons or matters other than the personnel or the internal affairs of the commissioner's office shall be made or amended only after a hearing thereon of which notice was given as required by §624.0124. If reasonably possible the commissioner shall set forth the proposed rule or regulation or amendment in or with the notice of hearing.

(3) No such rule or regulation as to which a hearing is required under subsection (2) shall be effective until after it has been on file as a public record in the commissioner's office and in the office of the secretary of state for at least ten days.

(4) Upon request and payment of the reasonable cost thereof if required and fixed by the commissioner, the commissioner shall furnish a copy of any such rule or regulation to any person so requesting.

(5) In addition to any other penalty provided, wilful violation of any such rule or regulation shall subject the violator to such suspension or revocation of certificate of authority or license as may be applicable under this code as for violation of the provision as to which such rule or regulation relates.

History .-523, ch. 69-205. Note.-8lmUar provisions found In former 5§626.17, 627.73,

629.21, 630.08, 631.16, 634.27, 642.031, 64lI.U. 64lI.ll1.

624.0108 Orders; notices.-(1) Orders and notices of the commissioner

shall be effective only when in writing signed by him or by his authority.

(2) Every such order shall state its ef-fective date, and shall concisely state:

(a) Its intent or purpose. (b) The grounds on which based. (c) The provisions of this code pursuant to

which action is taken or proposed to be taken' but failure to so designate a particular pro: vision shall not deprive the commissioner of the right to rely thereon.

(3) Except as may be provided in this code respecting particular procedures, an order or notice may be given by delivery to the person to be ordered or notified or by mailing it, postage prepaid, addressed to him at his residence or principal place of business as last of record in the commissioner's office.

(4) Any interested person shall be entitled to receive copies of any and all notices issued by the commissioner under this code, upon filing written request therefor with the commissioner, specifying therein the classes of notices desired to be received, and upon paying the reasonable cost of furnishing such notices as fixed by the commissioner. The receipt of


any such notice pursuant to this provision shall not be deemed to constitute the recipient a party to any matter, action, or hearing to which the notice relates.

m.tory.-§24, ch. 59-205.

624.0109 Enforcement.-The commISSIoner may institute such suits or other legal proceedings as may be required for enforcement of any provision of this code. If it appears to the commissioner that any person has violated any provision of this code for which criminal prosecution is provided and would be in order, he shall give the information relative thereto to the state's attorney, county solicitor, or prosecuting attorney having jurisdiction of any such violation. The state's attorney, county solicitor, or prosecuting attorney shall promptly institute such action or proceedings against such person as the information may require or justify.

mstory.-§25, ch. 59-205. Note.-Blmilar provIsIons tound In tormer §§625.17, 626.08,

624.0110 Records; reproductions; destruction.-

(1) The commissioner shall preserve in permanent form records of his proceedings, hearings, investigations, and examinations, and shall file such records in his office.

(2) The records of the commissioner and insurance filings in his office shall be open to public inspection, except as otherwise provided by this code.

(3) The commissioner may photograph, microphotograph or reproduce on film, whereby each page will be reproduced in exact conformity with the original, all financial records, financial statements of domestic insurers, reports of business transacted in this state by foreign insurers, reports of examination of domestic insurers, and such other records and documents on file in his office as he may in his discretion select.

(4) To facilitate efficient use of floor space and filing equipment in his offices the commissioner may destroy records and documents as follows:

(a) General closed correspondence files over three years old;

(b) Agent, solicitor, adjuster and similar license files over two years old, except that the commissioner shall preserve by reproduction or otherwise a copy of the original records upon the basis of which each such licensee qualified for his initial license, and of any disciplinary proceeding affecting the licensee;

(c) Insurer certificate of authority files over two years old, except that the commissioner shall preserve by reproduction or otherwise a copy of the initial certificate of authority of each insurer;

(d) All documents and records which have been photographed or otherwise reproduced as provided in subsection (3), and such reproductions have been filed, and after audit of the commissioner's office has been completed for the period embracing the dates of such documents and records; and

(e) All other records, documents, and files not expressly provided for in paragraphs (a) through (d) of this subsection.

m.torY.-§26, ch. 59-205. Note.-BImUar provIsIons tound In tormer §§626.26, 627.72.

624.0111 Reproductions and certified copies of records as evidence.-

(1) Photographs or microphotographs in the form of film or prints of documents and records made under §624.0110(3) shall have the same force and effect as the originals thereof, and shall be treated as originals for the purpose of their admissibility in evidence. Duly certified or authenticated reproductions of such photographs or microphotographs shall be as admissible in evidence as the originals.

(2) Upon request of any person and payment of the applicable fee, the commissioner shall give a certified copy of any record in his office which is then subject to public inspection.

(3) Copies of original records or documents in his office certified by the commissioner shall be received in evidence in all courts as if they were originals.

Blstory.-§27, ch. 59-205. Note.-Blmllar provIsIons tound In tormer 1626.20.

624.0112 Publications.-(1) The commissioner shall annually not

later than in the month of September have printed and make available to persons requesting a copy thereof, a list of all insurers authorized to transact insurance in this state during the preceding calendar year, showing in tabular form the assets and liabilities of such insurers and other data and information deemed essential by the commissioner and based upon the financial statements of the insurers as filed with him.

(2) The commissioner may prepare and have printed and published in pamphlet or book form the following:

(a) A list annually of all persons licensed as insurance agents in this state;

(b) As needed, questions and answers for use of persons making application to be examined for licensing as agents or solicitors for property, casualty, surety, disability and miscellaneous insurers;

(c) As needed, questions and answers for use of persons making application to be examined for licensing as agents for life and disability insurers;

(d) As needed, questions and answers for use of persons making application to be examined for licensing as adjusters; and

(e) Biennially after each regular session of the Florida legislature, a compilation of the laws of Florida relating to insurance. Any such publication may be printed, revised, or reprinted upon the basis of the original low bid.

(3) The commissioner shall sell the publications mentioned in subsection (2) to purchasers at a price fixed by him at not less than the cost of printing and binding such publications, plus packaging and postage costs for mailing; except that the commissioner may deliver copies of


such publications free of cost to state agencies and officers, insurance supervisory authorities of other states and jurisdictions, institutions of higher learning located in Florida, the library of congress, insurance officers of naval, military and air force bases located in Florida, and to persons serving as advisors to the department in preparation of the publications.

Hlstory.-§28, ch. 59-205. Note.-Blmllar provisions found In former §§626.09, 626.29.

624.0113 Public~ti~ms; publications trust fund.-The commISSIoner shall deposit all moneys received from the sale of publications under §624.0112 in the pUblications trust fund heretofore established by the comptroller under law for the purpose of paying costs for the preparation, printing and delivery to the commissioner of the publications mentioned in §624.0112(2), packaging and mailing costs and banking, accounting, and incidental expenses connected with the sale and delivery of such pUblications by the commissioner. All moneys so deposited and all funds hereafter transferred to the publications trust fund are appropriated for the uses and purposes above mentioned. If at the beginning of any fiscal biennium the amount in the publications trust fund exceeds thirty-eight thousand dollars the excess shall be transferred to the general revenue fund of this state.

History.-§29, ch. 59-205 ; §2, ch. 61-119. Note.-Blmllar provisions found In former §626.30.

624.0114 Commissioner's annual report.-As early as reasonably possible the commissioner shall annually prepare a report to the legislature and the governor showing, with respect to the preceding calendar year:

(1) Names of the authorized insurers transacting insurance in this state, with abstracts of their financial statements including such summary of their financial condition as he deems proper;

(2) Names of insurers whose business was closed during the year, the cause thereof, and amounts of assets and liabilities as ascertainable;

(3) Names of insurers against which delinquency or similar proceedings were instituted, and a concise statement of the circumstances and results of each such proceeding;

(4) The receipts and estimated expenses of the commissioner's office for the year;

(5) The commissioner's recommendations as to amendments or supplementation of laws affecting insurance, and as to matters affecting the department; and

(6) Such other pertinent information and matters as the commissioner deems to be in the public interest.

Hlstory.-§30, ch. 59-205. Note.-Blmllar provisions found In former §§626.09, 626.19.

624.0115 Examination of insurers.-(1) The commissioner shall examine the af

fairs, transactions, accounts, records, and assets of each authorized insurer as often as he deems advisable, and of the attorney in fact of a reciprocal insurer as to its transactions

affecting the insurer. He shall so examine each domestic insurer not less frequently than every three years. Examination of an alien insurer shall be limited to its insurance transactions and affairs in the United States, except as otherwise required by the commissioner.

(2) The commissioner shall in like manner examine each insurer applying for an initial certificate of authority to transact insurance in this state.

(3) In lieu of making his own examination, the commissioner may in his discretion, accept a full report of the last recent examination of a foreign insurer, certified to by the insurance supervisory official of another state.

(4) The commissioner's examination of any domestic title insurer which is also lawfully engaged in the trust business under a charter heretofore granted, shall be limited to the title insurance department; and the commissioner shall accept, in lieu of his own examination thereof, the report of examination of the trust department as made by the state banking department.

Hlstory.-§31, ch. 59-205. Note.-Blmllar provisions found In former §§626.01, 628.08,

631.02, 648.11, 648.14.

624.0116 Examination of agents, adjusters and others.-If he has reason to believe that any such person has violated or is violating any provision of this code, or upon written complaint signed by any interested person indicating that any such violation may exist, the commissioner shall conduct such examination as he deems necessary of the accounts, records, documents and transactions pertaining to or affecting the insurance affairs of any:

(1) General agent, surplus line agent, adjuster, or other person.

(2) Insurance agent or solicitor, subject to the requirements of §626.601.

(3) Person having a contract or power of attorney under which he enjoys in fact the exclusive or dominant right to manage or control an insurer.

(4) Person engaged in or proposing to be engaged in or assisting in the promotion or formation of a domestic insurer, or insurance holding corporation, or corporation to finance a domestic insurer or the production of its busi-ness.

Hlsto..".-§32, ch. 59-205.

624.0117 Conduct of examination; access to records; correction of accounts; appraisals.-

(1) The examination may be conducted by the commissioner or his accredited examiners at the offices wherever located of the person being examined and at such other places as may be required for determination of matters under examination. In the case of alien insurers the examination may be so conducted in the insurer's offices and places in the United States, except as otherwise required by the commissioner.

(2) Every person being examined, its officers, attorneys, employees, agents and repre-


sentatives shall make freely available to the commissioner or his examiners the accounts, records, documents, files, information, assets and matters in his possession or control relating to the subject of the examination.

(3) If the commissioner finds any accounts or records to be inadequate, or inadequately kept or posted, he may employ experts to reconstruct, re-write, post or balance them at the expense of the person being examined if such person has failed to maintain, complete or correct such records or accounting after the commissioner has given him notice and a reasonable opportunity to do so.

(4) If the commissioner· deems it necessary to value any asset involved in such an examination of an insurer he may make written request of the insurer to designate one or more competent appraisers acceptable to the commissioner, and who shall promptly make an appraisal of the asset and furnish a copy thereof to the commissioner. If the insurer fails to designate such an appraiser or appraisers within twenty days after the commissioner's request, the commissioner may designate the appraiser or appraisers. The reasonable expense of any such appraisal shall be a part of the expense of examination, to be borne by the insurer.

(5) Neither the commissioner nor any examiner shall remove any record, account, document, file or other property of the person being examined from the offices of such person except with the written consent of such person given in advance of such removal, or pursuant to an order of court duly obtained.

(6) Any individual who wilfully obstructs the commissioner or his examiner in the examinations authorized by part II of this chapter shall be guilty of a misdemeanor and upon conviction shall be punished as provided in §624.15.

mstory.-§33, ch. 59-205. Note.-BlmUar provisions found In former §§ 626.01, 631.02.

624.0118 Examination reports.-(1) The commissioner or his examiner shall

make a full and true written report of each examination. The report shall contain only information obtained from examination of the records, accounts, files, and documents of or relative to the person examined or from testimony of individuals under oath, together with relevant conclusions and recommendations of the examiner based thereon. The commissioner shall furnish a copy of the report to the person examined not less than thirty days prior to filing the report in his office. If such person so requests in writing within such thirty-day period, the commissioner shall grant a hearing with respect to the report, and shall not so file the report until after the hearing and after such modifications have been made therein as the commissioner deems proper.

(2) The report when so filed shall be admissible in evidence in any action or proceeding brought by the commissioner against the person examined, or against its officers, employees, or agents. The commissioner or his examiners

may at any time testify and offer other proper evidence as to information secured or matters discovered during the course of an examination, whether or not a written report of the examination has been either made, furnished, or filed in the department.

(3) The commissioner may withhold from public inspection any examination or investigation report for so long as he deems reasonably necessary to protect the person examined from unwarranted injury or to be in the public interest.

(4) After the examination report has been filed as hereinabove provided, the commissioner rr:.ay publish the results of any such examination in one or more newspapers published in this state whenever he deems it to be in the public interest.

mstory.-§34, ch. 59-205. Note.-Blmllar provisions found In former §§626.01, 11«.01.

624.0119 Examination expense.-(1) Each insurer so examined shall pay to

the commissioner the actual travel expenses, reasonable living expense allowance and compensation of the examiner or other person making the examination at the rates adopted and approved by the national association of insurance commissioners and approved by the commissioner. Such travel expense and living expense allowance shall be limited to those expenses necessarily incurred o,?- account of the examination and shall be paId by the examined insurer together with compensation upon presentation by the commissioner to such insurer of a detailed account of such charges and expenses after a detailed statement has been filed by the examiner and approved by the commissioner.

(2) There is hereby created and established in the state treasury a fund to be designated "insurer examination revolving trust fund" and the commissioner is authorized to transfer ten thousand dollars into such fund and from time to time to make further deposits to the credit of such fund from moneys appropriated for the operation of his office. All moneys collected from insurers for examinations shall be deposited into such fund.

(3) Notwithstanding the provisions of §112.061, the commissioner is authorized to pay to the examiner or the person making the examination out of the "insurer examination revolving trust fund" the actual travel expenses, reasonable living expense allowance and compensation in accordance with the statement filed with the commissioner by the examiner or other person as provided in subsection (1) upon approval by the commissioner.

(4) When not examining an insurer the traveling expenses, per diem and compensation for the examiners and other persons employed to make examinations, if approved, shall be paid out of moneys budgeted for such purpose as regular employees, reimbursements for such traveling expenses and per diem to be at rates no more than as provided in §112.061.

(5) No person shall pay and no examiner


or other person making an examination shall accept any additional emolument on account of any examination.

(6) The commissioner is authorized to pay to regular insurance examiners, not a resident ()f Leon county, Florida, per diem for periods not exceeding thirty days for each such examiner while at the office of the insurance commissioner in Tallahassee, Florida, for the purpose of auditing insurer's annual statements, such expenses to be paid out of moneys budgeted for such purpose, as regular employees at rates provided in §112.061.

m.W!"7.-§35, ch. 59-205; U, ch. 61-208; (6) n. 11, 00. 63-1211. Note.-B1m1lar provisions found In former §§626.01. 628.08.

831.02.

624.0120 Witnesses and evidence.-(1) As to the subject of any examination,

investigation, or hearing being conducted by him the commissioner or any assistant, deputy, or examiner appointed by him may administer oaths, examine and cross-examine witnesses, receive oral and documentary evidence, and shall have the power to subpoena witnesses, compel their attendance and testimon.v, and require by subpoena the production of books, papers, records, files, correspondence, cocuments or other evidence which he deems relevant to the inquiry.

(2) If any person refuses to comply with any such subpoena or to testify as to any matter concerning which he may be lawfully interrogated, the circuit court of Leon county or of the county wherein such examination, investigation, or hearing is being conducted, or of the county wherein such person resides, on the commissioner's application may issue an order requiring such person to comply with the subpoena and to testify; and any failure to obey such an order of the court may be punished by the court as a contempt thereof.

(3) Subpoenas shall be served, and proof of such service made, in the same manner as if issued by a circuit court. Witness fees and mileage, if claimed, shall be allowed the same as for testimony in a circuit court.

(4) Any person wilfully testifying falsely under oath as to any matter material to any such examination, investigation or hearing, shall upon conviction thereof be guilty of perjury and shall be punished accordingly.

m.tO!"7 .-136, ch. 59-205. Note.-Blmllar provisions found In former 51625.0'7, 628.01.

628.20, 626.28, 629.21, 831.02, 643.08.

624.0121 Testimony compelled; immunity from prosecution.-

(1) If any person asks to be excused from attending or testifying or from producing any books, papers, records, contracts, documents, or other evidence in connection with any examination, hearing, or investigation being con' ducted by the commissioner or his examiner, on the ground that the testimony or evidence required of him may tend to incriminate him or subject him to a penalty or forfeiture, and shall notwithstanding be directed to give such testimony or produce such evidence, he must,

if so directed by the commissioner and the attorney general, nonetheless comply with such direction, but he shall not thereafter be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter or thing concerning which he may have so testified or produced evidence, and no testimony so given or evidence produced shall be received against him upon any criminal action, investigation or proceeding; except, however, that no such person so testifying shall be exempt from prosecution or punishment for any perjury committed by him in such testimony, and the testimony or evidence so given or produced shall be admissible agaiI.lst him upon any criminal action, investigation, or proceeding concerning such perjury; nor shall he be exempt from the refusal, suspension, or revocation of any Ii-. cense, permission, or authority conferred, or to be conferred, pursuant to this code.

(2) Any such individual may execute, acknowledge and file in the office of the commissioner a statement expressly waiving such immunity or privilege in respect to any transaction, matter or thing specified in such statement, and thereupon the testimony of such individual or such evidence in relation to such transaction, matter, or thing may be received or produced before any judge or justice, court, tribunal, grand jury or otherwise, and if so received or produced such individual shall not be entitled to any immunity or privileges on account of any testimony he may so give or evidence so produced.

m.tor7.-§37. ch. 69-205. Note.-B1m1lar provisions found In former U625.05. 836.05,

643.13.

624.0122 Same; penalty for refusal to tes~ tify.-Any person who refuses or fails, without lawful cause, to testify relative to the affairs of any insurer or other person when subpoenaed and requested by the commissioner to so testify as provided in §624.0120 (witnesses and evidence) shall, in addition to the penalty provided in §624.0120, be guilty of a misdemeanor and upon conviction shall be subject to the penalties provided under §624.15.

m.tor7.-§38. ch. 69-205. Note.-Blmllar provisions found In former §§626.0'7. 626.21.

624.0123 Hearings.-(1) The commissioner may hold hearings

for any purpose within the scope of this code deemed by him to be necessary.

(2) The commissioner shall hold a hearing if required by any provision of this code.

(3) Any person aggrieved by any act, threatened act, or failure of the commissioner to act, or by any report, rule, regulation or order of the commissioner (other than an order for the holding of a hearing, or an order on hearing or pursuant thereto), may demand a hearing. The demand shall be in writing and shall summarize the information and grounds to be relied upon as a basis for the relief to be sought at the hearing. Failure to grant the demand within thirty days from the filing of the demand with the commissioner shall con-


stitute a denial of the relief sought, and shall be the equivalent of an order on hearing for the purpose of a petition for rehearing, or reargument, under §624.0127, and for the purpose of an appeal under §624.0128.

(4) Pending any such hearing and decision thereon the commissioner may suspend or postpone the effective date of his previous action.

(5) This section does not apply as to part I of chapter 627 (rates and rating organizations).

Blstory.-§39, ch. 59-205.

624.0124 Same; notice.-(1) Except where a different period of no

tice is provided by other provisions of this code relative to particular matters, not less than twenty days in advance the commissioner shall give notice of the time and place of the hearing stating the matters to be considered thereat: If the persons to be given notice are not specified in the provision pursuant to which the hearing is held, the commissioner shall give such notice to all persons whose pecuniary interests are to be directly and immediately affected by such hearing.

(2) If any such hearing is to be held for consideration of rules and regulations of the commissioner, or for consideration of other matters, which under subsection (1) would otherwise require separate notices to more than fifty persons, in lieu of the notice so required under such subsection the commissioner may give notice of the hearing by publication thereof, in four or more newspapers of general circulation in this state, at least once each week during the four weeks immediately preceding the week in which the hearing is to be held. The published notice shall state the time and place of the hearing and shall specify the matters to be considered thereat. The commissioner shall also furnish a copy of any such published notice to one or more insurance trade publications of general circulation in the United States.

(3) All such notices, other than published notices, shall be given by delivery to the person to be so notified or by mailing it by registered or certified mail addressed to such person at his address last of record with the commissioner.


Blltory.-§40, ch. 59-205.

624.0125 Same; conduct.-(1) A hearing may be held in the commis

sioner's offices at Tallahassee, or at such other place in this state deemed by the commissioner to be more convenient to parties and witnesses. If the hearing is relative to denial, suspension, or revocation of license as agent, solicitor, surplus line agent, adjuster, or other insurance representative, if so requested by such person the commissioner shall hold the hearing at a place not less convenient to such person and witnesses than the commissioner's office located nearest the place of residence or place of business of the person in this state.

(2) The commissioner or an assistant, dep-

uty, or examiner designated by him, shall preside at the hearing and shall sit in the capacity of a quasi-judicial officer.

(3) All hearings shall be public. (4) The commissioner shall allow any party

to the hearing to appear in person and by counsel, to be present during the giving of all evidence, to have a reasonable opportunity to inspect all documentary and other evidence and to examine and cross-examine witnesses, to present evidence in support of his interest, and to have subpoenas issued by the commissioner to compel attendance of witnesses and production of evidence in his behalf. Testimony may be taken orally or by deposition, and any party shall have such right of introducing evidence by deposition as may obtain in the circuit courts of this state.

(5) Upon good cause shown the commissioner shall permit to become a party to the hearing by intervention, if timely, only such persons who were not original parties thereto and whose interests are to be directly and immediately affected by the commissioner's order made upon the hearing.

(6) Formal rules of pleading or of evidence need not be observed at the hearing, except that the right of any person to invoke such rules and the rule of exclusion of witnesses is preserved.

(7) Unless waived in writing by the other parties to the hearing, the commissioner shall cause a full stenographic record of the proceedings at the hearing to be made by a competent reporter and at the cost of the state. If transcribed, a copy of such stenographic record shall be made a part of the commissioner's record of the hearing. A transcription shall be made if requested by any party in order that such party may have a copy thereof. A copy of the transcribed stenographic record shall be furnished to any party to the hearing requesting the same, and at such reasonable charge therefor as the commissioner may fix. If no stenographic record is made or transcribed the commissioner shall prepa,re an adequate record of the evidence and of the proceedings. The state's portion of the cost of thE' stenographic record and transcription thereof shall be paid out of the enforcement fund provided for in §624.0321. Any sums received from parties for copies of the stenographic record shall be covered by the c.ommissioner into the state treasury to the credit of such enforcement fund.

(8) This section does not apply as to part I of chapter 627 (rates and rating organizations) .

Hlstory.-§41, ch. 59-205. Note.-8lmllar provisions found In former 111127.94, 643.06.

645.15.

624.0126 Same; order.-(1) Within thirty days after termination of

a hearing and completion of the transcript, if any, or of any rehearing thereof or reargument thereon, or within such other period as may be specified in this code as to particular proceedings, the commissioner shall make his order on hearing, covering matters involved in the


hearing and in any rehearing or reargument, and shall give a copy of the order to all the parties to the hearing.

(2) The order shall contain specific findings of fact by the commissioner in relation to the matter before him, such findings to be based upon a preponderance of the evidence. Any party may file with the commissioner proposed findings of fact, to be accepted or rejected by the commissioner.

(3) The commissioner's order may affirm, modify, or rescind action theretofore taken or may constitute the taking of new action within the scope of the notice of hearing.


mstory.-§42. ch. 59-205.

624.0127 Rehearing or reargument.-Upon written request setting forth the reasons therefor of a party to a hearing filed with the commissioner within thirty days after any order made pursuant to a hearing has been mailed to the persons entitled to receive the same, the commissioner shall, within thirty days after receipt of such request, grant a rehearing or reargument of any or all of the matters involved in the hearing. The filing of a request for rehearing or reargument shall automatically stay the running of the time for taking an appeal

pursuant to §624.0128, but the denial of this request shall not operate to start anew the running of the time for taking an appeal. This section does not apply as to part I of chapter 627 (rates and rating organizations).

mstor7.-§43, ch. 69-205.

624.0128 Appeals from the commissioner.(1) All findings of fact, final rulings, orders,

or decisions of the commissioner shall be subject to review by appeal to the district court of appeal, first district. Such an appeal shall be commenced within sixty days after the rendithin of such ruling, order, or decision, and in compliance with the rules of procedure as prescribed by the supreme court of Florida for appeals.

(2) The district court of appeal shall affirm, reverse, or modify the commissioner's ruling, order, or decision appealed from. To the extent so affirmed, the court shall thereupon issue its own order commanding obedience to the commissioner's ruling, order, or decision; or, the court may remand the ruling, order, or decision to the commissioner for action in accordance with its order.


History .-144, ch. 69-205. Note.-8lmllar provisions found In former §§626.021, 627.95,

629.22, 634.14, 636.172, 636.176. 636.39. 637.26. 637.68. 642.02. 643.08, 643.09, 644.14. 040.12.

PARTm AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS

624.0200 Certificate of authority required. 624.0201 Excep tions, certificate of authority re

quired. 624.0202 Authorization for investment pur

poses only. 624.0203 General eligibility of insurers for

certificate of authority. 624.0204 Name of insurer. 624.0205 Combinations of insuring powers, one

insurer. 624.0206 Capital funds required; new insurers. 624.0207 Special surplus requirements; new

insurers. 624.0208 Capital and surplus funds required;

old insurers. 624.0209 Permissible insuring combinations

without additional capital funds. 624.0210 Deposit requirement, domestic and

foreign insurers. 624.0211 Deposit of alien insurers. 624.0212 Application for certificate of author

ity. 624.0213 Issuance or refusal of authority. 624.0214 Ownership of certificate of authority;

return. 624.0215 Continuance, expiration, reinstate

ment and amendment of certificate of authority.

624.0216 Mandatory revocation, suspension of certificate of authority.

624.0200 Certificate of authority required.(1) No person shall act as an insurer and

no insurer or its agents, attorneys, subscribers,

624.0217 Suspension, revocation of certificate of authority for violations and special grounds.

624.0218 Procedure to suspend or revoke certificate of authority.

624.0219 Order, notice of suspension or revocation of certificate of authority; effect; publication.

624.0220 Duration of suspension; insurer's obligations during suspension period; reinstatement.

624.0221 Service of process; appointment of commissioner as process agent.

624.0222 Serving process. 624.0223 Annual statement and other informa

tion. 624.0224 Resident agent and countersignature

required, property, casualty, surety insurances.

624.0225 Exceptions to resident agent and countersignature law.

624.0226 Compliance with resident agent law; renewal of certificate of authority.

624.0227 Licensed agent law, life and disability insurances.

624.0228 Retaliatory provision, insurers. 624.0229 Withdrawal of insurer or discontin

uance of writing certain classes of insurance.

or representatives, shall directly or indirectly transact insurance in this state except as authorized by a subsisting certificate of authority

CIl. 624 INSURANCE CODE; ADMINISTRATION AND GENERAL PROVISIONS Ch. 624

issued to the insurer by the commissioner, except as to such transactions as are expressly otherwise provided for in this code.

(2) No insurer shall from offices or by personnel or facilities located in this state solicit insurance applications or otherwise transact insurance in another state or country unless it holds a subsisting certificate of authority issued to it by the commissioner authorizing it to transact the same kind or kinds of insurance in this state.

(3) This state hereby preempts the field of regulating insurers and their agents and representatives, and no county, city, municipality, district, school district, or political subdivision shall require of any insurer, agent, or representative regulated under this code any authorization, permit, or registration of any kind for conducting transactions lawful under the authority granted by the state under this code.

Hlstory.-§45, ch. 59-205; (3) n . by §1, ch. 61-75. Note.-8lmllar provisions found In former §§205.44, 1120.42,

626.02, 631.03, 631.16, 636.35, 638.16, 642.01l, 848.01, 848.07.

. 624.0201 Exceptions, certificate of authority required.-A certificate of authority shall not be required of an insurer with respect to the following:

(1) Investigation, settlement, or litigation of claims under its policies lawfully written in this state, or liquidation of assets and liabilities of the insurer (other than collection of new premiums), all as resulting from its former authorized operations in this state.

(2) Transactions involving a policy, subsequent to issuance thereof, covering only subjects of insurance not resident, located, or expressly to be performed in this state at time of issuance, and lawfully solicited, written, or delivered outside this state.

(3) Transactions pursuant to surplus lines coverages lawfully written under part VI of chapter 626. .

(4) Reinsurance, when transacted as authorized under §624.0409.

(5) The continuation and servicing of life insurance or disability insurance policies or annuity contracts remaining in force as to residents of this state where the insurer has withdrawn from the state and is not transacting new insurance therein.

mstory.-§46, ch. 59-205. Note.-8lmllar provision found In former I 625.111.

624.0202 Authorization for investment purposes only.-A foreign insurer may transact business in this state without certificate of authority, for the purpose and to the extent only of investing its funds in Florida real estate or in securities secured thereby, by complying with the laws of this state relating to foreign business corporations in general. Such an insurer shall not be subject to any other provisions of this code.

mstory.-§47, ch. 59-205.

624.0203 General eligibility of insurers for certificate of authority.-To qualify for and hold authority to transact insurance in this state an insurer must be otherwise in compli-

ance with this code and with its charter powers, and must be an incorporated stock insurer, or an incorporated mutual insurer, or a reciprocal insurer, of the same general type as may be formed as a domestic insurer under this code; except that:

(1) No insurer shall be authorized to transact insurance in this state which does not maintain reserves as required by part I of chapter 625 (assets and liabilities) applicable to the kind or kinds of insurance transacted by such insurer, wherever transacted in the United States; or which transacts insurance in the United States on the assessment premium plan, stipulated premium plan, co-operative plan, or any similar plan.

(2) No foreign insurer shall be authorized to transact insurance in this state unless it is otherwise qualified therefor under this code and has operated satisfactorily for at least three years in its state or country of domicile or is the wholly owned subsidiary of an insurer which is an authorized insurer in this state, or is the successor in interest through merger or consolidation of an authorized insurer.

(3) The commissioner shall not grant or continue authority to transact insurance in this state as to any insurer the management of which is found by him to be incompetent or untrustworthy, or so lacking in insurance company managerial experience as to make the proposed operation hazardous to the insurancebuying public; or which he has good reason to believe is affiliated directly or indirectly through ownership, control, reinsurance transactions or other insurance or business relations, with any person or persons whose business operations are or have been marked, to the detriment of policyholders or stockholders or investors or creditors or of the public, by manipulation of assets, or of accounts, or of reinsurance, or by bad faith.

(4) No insurer the voting control or ownership of which is held in whole or substantial part by any government or governmental agency, or which is operated for or by any such government or agency, shall be authorized to transact insurance in this state. Membership in a mutual insurer, or subscribership in a reciprocal insurer, or ownership of stock of an insurer by the alien property custodian or similar official of the United States, or supervision of an insurer by public insurance supervisory authority shall not be deemed to be an ownership, control, or operation of the insurer for the purposes of this subsection.

(5) No authorized insurer shall act as a fronting company for any unauthorized insurer. A "fronting company" is an authorized insurer which by reinsurance or otherwise generally transfers to one or more unauthorized insurers substantially the entire risk of loss under substantially all of the insurance written by it in this state. This provision shall not apply as to any policies which are in force on the effective date of this code.

(6) No insurer shall be authorized to transact insurance in this state which during the


three years immediately preceding its application for a certificate of authority has violated any of the insurance laws of this state and after being informed of such violation has failed to correct the same; except, that if all other requirements are met the commissioner may nevertheless issue a certificate of authority to such an insurer upon the filing by the insurer of a sworn statement of all such insurance so written in violation of law, and upon payment to the commissioner of a sum of money as additional filing fee equivalent to all premium taxes and other state taxes and fees as would have been payable by the insurer if such insurance had been lawfully written by an authorized insurer under the laws of this state. This fee when collected shall be deposited to the credit of the miscellaneous service fund provided for under §624.0324.

(7) Nothing in this code shall be deemed to prohibit the granting and continuance of a certificate of authority to a domestic title insurer organized as a business trust, if the declaration of trust of such insurer was filed in the office of the secretary of state prior to January 1, 1959, and if the insurer otherwise meets the applicable requirements of this code. Such an insurer may hereinafter in this code be referred to as a "business trust insurer."

mstory.-§48, ch. 59-205. Note.-SlmUar provisIons found In former 116211.42, 6211.011,

631.16, 635.22.

624.0204 Name of insurer.-(1) No insurer shall be formed or author

ized to transact insurance in this state under a name which is the same as that of any other authorized insurer or is so nearly similar thereto as to cause or tend to cause confusion, or which would tend to mislead as to the type of organization of the insurer. Before incorporating under or using any name the insurer or proposed insurer shall submit its name or proposed name to the commissioner for his approval consistent with this provision, and such approval shall be endorsed upon any proposed charter or application for authority which may be submitted to any officer authorized to grant such proposed charter or authority.

(2) Before approving or disapproving the name or proposed name of an insurer the commissioner shall notify all other authorized insurers whose name might be adversely affected, allowing them thirty days after the date of the notice within which to file their objections with him. If a name is so objected to, the commissioner shall disapprove the name unless he is of the opinion that the objections are not wellfounded.

(3) No charter or authority shall be granted to any person by any court, office, department, or officer authorized to grant authority or permission to organize or act as an insurer unless the application therefor or proposed charter bears the endorsed approval of the name by the commissioner.

(4) No life insurer shall be so authorized which has or uses a name deceptively similar to that of another insurer authorized to transact

insurance in this state within the preceding five years if life insurance policies originally issued by such other insurer are still outstanding in this state.

m.&ory.-§49, ab. 59-2011. Note.-SlmUar provisIons found In former 116211.021, 628.03,

632.05.

624.0205 Combinations of insuring powers, one insurer.-An insurer which otherwise qualifies therefor may be authorized to transact anyone kind or combination of kinds of insurance as defined in part V of chapter 624 except:

(1) A life insurer may also grant annuities, but shall not be authorized to transact any other kind of insurance other than disability; except, that the commissioner shall, if the insurer is otherwise qualified therefor, continue to so authorize any life insurer which, immediately prior to the effective date of this code, was lawfully authorized to transact in this state a kind or kinds of insurance in addition to life and disability.

(2) A reciprocal insurer shall not transact life insurance.

(3) Except as to domestic mutual title insurers, or domestic business trust title insurers as referred to in §624.0203 (7), so authorized prior to the effective date of this code, a title insurer shall be a stock insurer.

mstory.-§50, ch. 59-205. Note.-SlmUar provIsIons found In former 11628.01, 628.02.

624.0206 Capital funds required; new insurers.-

(1) To qualify for authority to transact any one kind of insurance (as defined in part V of chapter 624) or combination of kinds of insurance as shown below, an insurer applying for its original certificate of authority in this state or continuing such original certificate of authority, shall possess and thereafter maintain unimpaired paid-in capital stock (if a stock insurer) or unimpaired surplus (if a foreign mutual or foreign reciprocal insurer) or a net trust fund (if a business trust insurer) in amount not less than as applicable under the schedule below, and shall possess when first so authorized such additional surplus as is required under §624.0207.

Minimum capital, surplus Kind or kinds or net trust fund required of insurance to be maintained

Life $200,000.00 Disability 200,000.00 Life and disability 200,000.00 Property 200,000.00 Casualty 200,000.00 Surety 250,000.00 Marine 200,000.00 Title 100,000.00 Multiple lines 400,000.00

(Any two or more: Property, marine, casualty, surety; and all kinds of insurance other than life)

(2) Capital, surplus and net trust fund re-


quirements shall be based upon all the kinds of insurance actually transacted or to be transacted by the insurer in any and all areas in which it operates, whether or not only a portion of such kinds are to be transacted in this state.

(3) As to surplus required for qualification to transact one or more kinds of insurance and thereafter to be maintained, domestic mutual insurers are governed by chapter 628 of this code and domestic reciprocal insurers are governed by chapter 629.

mstory.-§51, ch. 59-205; (1), 11, ch. 63-29. Note.-J3lmUar provisions found In former 11626.02, 6211.011,

625.16, 626.04, 626.05, 628.03, 628.06, 648.08.

624.0207 Special surplus requirements; new insurers.-

(1) In addition to the minimum paid-in capital stock (stock insurers) or minimum surplus (mutual and reciprocal insurers) required by §624.0206, an insurer hereafter applying for an initial certificate of authority in this state shall possess when first authorized in this state, surplus or additional surplus equal to the larger of four hundred thousand dollars (stock, mutual and reciprocal insurers) or fifty per cent of its paid-in capital stock (stock insurers).

(2) If within three years after date of its initial certificate of authority to transact insurance in this state such an insurer requests authority to transact an additional kind or kinds of insurance, it shall not be so authorized unless it then possesses surplus or additional surplus in such an amount as would be required under this section as for an original certificate of authority covering all the kinds of insurance the insurer then proposes to transact.

(3) After issuance of its initial certificate of authority the insurer shall maintain a surplus required under this section of not less than one hundred thousand dollars, except that a title insurer must at all times have the surplus as to policyholders as provided for in §624.0208 (3).

mstory.-§52, ch. 59-205; 12, ch. 63-29. Note.-J3lmUar provisions found In former 11626.02, 6211.08,

625.16, 626.04, 626.05, 628.06.

624.0208 Capital and surplus funds required; old insurers.-

(1) All stock, mutual, reciprocal, and business trust insurers, which had in full force and effect a certificate of authority to transact insurance in this state on January 1, 1963, and which do not meet the capital, surplus or net trust fund requirements of §624.0206 shall increase to the additional required capital on or before December 31, 1968.

(2) All stock, mutual, reciprocal, and business trust insurers, which had in full force and effect a certificate of authority to transact insurance in this state on January 1, 1963, and which do not meet the special surplus requirements of §624.0207 shall increase to and maintain the minimun required surplus of one hundred thousand dollars as provided in §624.0207 (3) at the rate of thirty-three and one-third per cent on or before December 31, 1964, and the remaining sixty-six and two-thirds per cent on or before December 31, 1966.

(3) A title insurer must at all times have and maintain surplus as to policyholders in the amount of not less than three hundred thousand dollars; and if the insurer is a stock insurer not less than one hundred thousand dollars of such surplus as to policyholders must be represented by paid-in capital stock.

(4) Except, that any such insurer which after the effective date of this code requests authority to transact any kind or kinds of insurance in addition to those it was authorized to transact prior thereto shall possess and maintain unimpaired the same amount of paid-in capital stock (if a stock insurer) or surplus (if a mutual or reciprocal insurer) or net trust fund (if a business trust insurer) as would be required of a new insurer under §624.0206 for authority to transact all the kinds of insurance the insurer then proposes to transact.

(5) Surety insurers having unimpaired paid-in capital stock (if a stock insurer) or unimpaired surplus (if a mutual or reciprocal insurer) of less than two hundred fifty thousand dollars are not acceptable as surety upon the bonds of the city, county and state officers, under §627.0903.

mstory.-153, ch. 59-205; 13, ch. 63-29. Note.-BImUar provtslollll found In former 11626.02, 6211.18,

626.04, 626.05, 628.06.

624.0209 Permissible insuring combinations without additional capital funds.-

(1) A life insurer may also grant annuities without additional capital or additional surplus.

(2) A casualty insurer may be authorized to transact also disability insurance without additional capital or additional surplus.

(3) A property insurer may without additional capital or additional surplus include such amount and kind of insurance against legal liability for injury, damage, or loss to the person or property of others, and for medical, hospital, and surgical expense related to such injury, as the commissioner deems to be reasonably incidental to insurance of real property against fire and other perils under policies covering residential properties involving not more than four families, with or without incidental office, professional, private school or studio occupancy by an insured, whether or not the premium or rate charged for certain perils so covered is specified in the policy. Any provision of §624.0408 (limit of risk) to the contrary notwithstanding, no insurer authorized as to property insurance only shall, pursuant to this subsection, retain risk as to anyone subject of insurance as to hazards other than property insurance hazards, in an amount exceeding five per cent of its surplus to policyholders.

History .-§ 54, ch. 69-206.

624.0210 Deposit requirement, domestic and foreign insurers.-

(1) The commissioner shall not issue or permit to exist a certificate of authority as to any domestic insurer, unless it has deposited and maintains deposited in trust for the protection of the insurer's policyholders or its poIicy-


holders and creditors with the commissioner securities eligible for such deposit under §625.0202, having at all times a value of not less than as follows:

(a) To transact property insurance, fifty thousand dollars.

(b) To transact casualty insurance, fifty thousand dollars.

(c) To transact title insurance, one hundred thousand dollars.

(d) To tn,n ' ct surety insurance, seventyfive thousand dollars.

(2) As to foreign insurers the commissioner shall not issue or permit to exist a certificate of authority unless such insurer has deposited and maintains deposited in trust with the commissioner securities eligible for such deposit under §625.0202 having at all times a value of not less than as follows:

(a) To transact property insurance, fifty thousand dollars.

(b) To transact casualty insurance, fifty thousand dollars.

(c) To transact title insurance, seventy-five thousand dollars.

(d) To transact surety insurance, seventyfive thousand dollars.

Provided that if a foreign insurer writes more than one kind of insurance in this state listed from (a) through (d) of this subsection, it shall not be required to deposit more than seventy-five thousand dollars. Such deposits shall be for the protection of the insurer's policyholders or its policyholders and creditors.

Provided further that if a foreign insurer has a surplus to policyholders of not less than one million dollars of which not less than five hundred thousand dollars is unassigned surplus, according to the latest annual statement, such foreign insurer shall not be required to make such deposit.

(3) In addition to the deposits otherwise required pursuant to this section, the commissioner may, after notice and hearing, require any insurer transacting property, casualty, surety, or title insurance, for good cause shown, to deposit and maintain deposited in trust for the protection of the insurer's policyholders or its policyholders and creditors for such time as he deems necessary, securities eligible for such deposit under §625.0202 having a value at all times of not less than the amount which the commissioner shall determine is necessary, which amount shall be not less than seventyfive thousand dollars, nor more than two hundred fifty thousand dollars, depending on the insurer's obligations in this state.

(4) All such deposits in this state are subject to the applicable provisions of part III of chapter 625 (administration of deposits).

Bistory.-§55, ch. 59-205; (3) II, ch. 61-166; II, ch. 63-19. Note.-Blmllar provisions found In former §§631.08. 632.0'1. ~.02, 648.17.

624.0211 Deposit of alien insurers.-(1) An alien insurer shall not have au

thority to transact insurance in this state unless it has and maintains within the United States as trust deposits with public officials

having supervision over insurers, or with trustees, public depositaries, or trust institutions approved by the commissioner, assets available for discharge of its United States insurance obligations, which assets shall be in amount not less than the outstanding reserves and other liabilities of the insurer arising out of its insurance transactions in the United States together with the greater of the following sums:

(a) The largest amount of paid-in capital stock required by §624.0206 of a domestic stock insurer transacting like kinds of insurance, or

(b) Three hundred thousand dollars. (2) The amount so held on deposit under

subsection (1) (a) or (b) is, for the purposes of this code, deemed to be the paid-in capital stock (if a stock insurer) or minimum surplus (if a mutual insurer) of the insurer required to be maintained.

(3) Any such deposit made in this state shall be held for the protection of the insurer's policyholders or policyholders and creditors in the United States and shall be subject to the applicable provisions of part III of chapter 625 (administration of deposits) and chapter 630 (alien insurers).

Hlstory.-§56, ch. 69-206. Note.-8lmllar provisions found In former 1631.16.

624.0212 Application for certificate of authority.-

(1) To apply for a certificate of authority an insurer shall file its application therefor with the commissioner, upon a form furnished by him, showing its name, location of its home office or (if an alien insurer) principal office in the United States, kinds of insurance to be transacted, state or country of domicile, and such additional information as the commissioner may reasonably require, together with the following documents as applicable:

(a) Two copies of its corporate charter, articles of incorporation, declaration of trust or other charter documents, with all amendments thereto, certified by the public official with whom the originals are on file in the state or country of domicile.

(b) If a mutual insurer, a copy of its bylaws, as amended, certified by its secretary or other officer having custody thereof.

(c) If a foreign reciprocal insurer, a copy of the power of attorney of its attorney in fact and of its subscribers' agreement, if any, certified by the attorney in fact; and if a domestic reciprocal insurer, the declaration provided for in §629.081.

(d) A copy of its financial statement as of December 31 next preceding on the form approved for current use by the national association of insurance commissioners or its successor, sworn to by at least two executive officers of the insurer, or certified by the public official having supervision of insurance in the insurer's state of domicile or of entry into the United States.

(e) A supplemental financial statement in condensed form, if requested by the commis·


sioner, covering the period from the first of the year to the end of the calendar quarter next preceding the date of its application for the certificate of authority, sworn to by at least two of its executive officers.

(f) If a foreign insurer, a copy of report of most recent examination of the insurer prior to date of application for certificate of authority, certified by the public official having supervision of insurance in its state of domicile or: of entry into the United States.

(g) If a foreign insurer, a certificate of compliance from the public official having supervision of insurance in its state or country of domicile showing that it is duly organized and authorized to transact insurance therein, and the kinds of insurance it is so authorized to transact.

(h) If a foreign insurer, certificate of the public official having custody of any deposit maintained by the insurer in another state in lieu of a deposit or part thereof required in this state under §§624.0210 or 624.0211, showing the amount of such deposit and the assets or securities of which comprised.

(i) Appointment of the commissioner pursuant to §624.0221 as its attorney to receive service of legal process, accompanied by a copy (certified by its corporate secretary or other officer having custody of its records) of the resolution of its board of directors or similar directive body authorizing such appointment.

0) If a life insurer: 1. Certificate of valuation; 2. Copies of policy forms, standard riders

and standard endorsements, and application forms proposed to be issued in this state, and duplicate listings of such forms.

(k) If a disability insurer, copies of policy forms proposed to be issued in this state, with duplicate listings thereof, together with rate book and a copy of each application form.

(1) If an alien insurer, a copy of the appointment and authority of its United States manager, certified by its officer having custody of its records.

(2) The application shall be accompanied by the applicable fees and license tax as specified in §624.0300 (filing, license and miscellaneous fees).

Blstory.-§S7, ch. 59-20S. Note.-81mllar provisions found In former §§20S.43. 626.02.

626.03, 628.04, 628.10, 648.01.

624.0213 Issuance or refusal of authority.(1) If upon completion of the application

for a certificate of authority the commissioner finds that the insurer has met the requirements for and is entitled thereto under this code, he shall issue to the insurer a proper certificate of authority; if he does not so find, the commissioner shall issue his order refusing such certificate. The commissioner shall act upon an application for a certificate of authority within a reasonable period after its completion. The fee for filing application for a certificate of authority shall not be subject to refund.

(2) The certificate, if issued, shall specify the kind or kinds of insurance the insurer is authorized to transact in this state. At the insurer's request, the commissioner may issue a certificate of authority limited to particular types of insurance or insurance coverages within the scope of a kind of insurance as defined in part V of chapter 624.

IDstory.-§S8, ch. 59-205. Note.-8lmllar provisions found In former §§626.05. 626.07.

631.01.

624.0214 Ownership of certificate of authority; return.-Although issued to the insurer the certificate of authority is at all times the property of this state. Upon any expiration, suspension, or termination thereof the insurer shall promptly deliver the certificate of authority to the commissioner.

Blstory.-§59, ch. 59-205.

624.0215 Continuance, expiration, reinstatement and amendment of certificate of authority.-

(1) Certificates of authority issued or renewed under this code shall continue in force as long as the insurer is entitled thereto under this code and until suspended, revoked, or terminated at the request of the insurer; subject, however, to continuance of the certificate by the insurer each year by:

(a) Payment prior to June 1 of the annual license tax provided for in §624.0300 (3).

(b) Due filing by the insurer of its annual statement for the calendar year preceding as required under §624.0223;

(c) Payment by the insurer of applicable taxes with respect to the preceding calendar year as required under this code; and

(d) Filing of the affidavit as to transaction of business through resident agents as required by §624.0226.

(2) If not so continued by the insurer, its certificate of authority shall expire at midnight on the May 31 next following such failure of the insurer so to continue it in force. The commissioner shall promptly notify the insurer of the occurrence of any failure resulting in impending expiration of its certificate of authority.

(3) The commissioner may, in his discretion, reinstate a certificate of authority which the insurer has inadvertently permitted to expire, after the insurer has fully cured all its failures which resulted in the expiration, and upon payment by the insurer of the fee for reinstatement, in the amount provided in §624.0300 (1) (b). Otherwise, the insurer shall be granted another certificate of authority only after filing application therefor and meeting all other requirements as for an original certificate of authority in this state.

(4) The commissioner may amend a certificate of authority at any time to accord with changes in the insurer's charter or insuring powers.

Blstory.-§60, ch. 59-205; (1) (a), U. ch. 63-149. Note.-8lm1lar provisions found In former U205.43. 628.07.

628.11.


624.0216 Mandatory revocation, suspension of certificate of authority.-

(1) The commissioner shall suspend or revoke an insurer's certificate of authority:

(a) If such action is required by any provision of this code; or

(b) If the insurer no longer meets the requirements for the authority originally granted, on account of deficiency of assets or otherwise; or

(c) If the insurer's authority to transact insurance is suspended or revoked by its state of domicile, or state of entry into the United States if an alien insurer.

(2) In cases of insolvency or impairment of required capital or surplus, or suspension or revocation by another state as referred to in paragraph (c) of subsection (1), the commissioner may suspend or revoke the insurer's certificate of authority without advance notice or hearing thereon.

Blstory.-§61, ch. 59-205. Note.-SlmUar provisions found In former 11628.08. 827.10.

628.11. 631.03. 635.06, 648.12.

624.0217 Suspension, revocation of certificate of authority for violations and special grounds.-

(1) The commissioner may, in his discretion, suspend or revoke an insurer's certificate of authority if he finds that the insurer has violated any lawful order of the commissioner, or any provision of this code other than those for which suspension or revocation is mandatory.

(2) The commissioner shall suspend or revoke an insurer's certificate of authority if he finds that the insurer:

(a) Is in unsound condition, or in such condition, or using such methods and practices in the conduct of its business, as to render its further transaction of insurance in this state hazardous or injurious to its policyholders or to the public.

(b) Has refused' to be examined or to produce its accounts, records, and files for examination, or if any of its officers have refused to give information with respect to its affairs or to perform any other legal obligation as to such examination, when required by the commissioner.

(c) Has failed to pay any final judgment rendered against it in this state within sixty days after the judgment became final.

(d) With such frequency as to indicate its general business practice in this state, has without just cause refused to pay proper claims arising under its policies, whether any such claim is in favor of an insured or is in favor of a third person with respect to the liability of an insured to such third person, or without just cause compels such insureds or claimants to accept less than the amount due them or to employ attorneys or to bring suit against the insurer or such an insured to secure full payment or settlement of such claims.

(e) Is affiliated with and under the same general management or interlocking director-

ate or ownership as another insurer which transacts direct insurance in this state without having a certificate of authority therefor, except as permitted as to surplus line insurers under part VI of chapter 626.

(3) The commissioner may, in his discretion and without advance notice or a hearing thereon, immediately suspend the certificate of authority of any insurer as to which proceedings for receivership, conservatorship, rehabilitation, or other delinquency proceedings, have been commenced in any state by the public insurance supervisory official of such state.

Blstory.-§62. ch. 59-205. Note.-BlmUar provisions found In former §§625.05. 625.11.

625.21. 626.08, 627.10. 628.11. 631.02. 631.03. 635.06. 635.172. 635.20. 635.23. 638.16. 642.02, 648.12.

624.0218 Procedure to suspend or revoke certificate of authority.-

(1) Except where hearing is expressly not required under §624.0216 or §624.0217, no order of the commissioner suspending or revoking an insurer's certificate of authority shall be effective unless made after a hearing of which notice and order directing the insurer to show cause thereat why its certificate of authority should not be so suspended or revoked was mailed to the insurer by registered or certified mail addressed to its home office or principal place of business in the United States not less than thirty days in advance.

,(2) The notice shall contain, in addition to a statement of the time and place of the hearing and the order to show cause, a concise statement of the particulars of the grounds for such proposed suspension or revocation in such detail as reasonably to inform the insurer thereof.

(3) Except, that the insurer may in writing filed with the commissioner within the thirty day period waive the hearing, and in which case the commissioner may forthwith issue' his order of suspension or revocation of the certificate of authority.

m.tory.-§63, ch. 59-205. Note.-BlmUar provisions found In former §§628.08. 627.10,

627.0101. 628.11. 636.35. 638.16.

624.0219 Order, notice of suspension or revocation of certificate of authority; effect; publication.-

(1) Suspension or revocation of an insurer's certificate of authority shall be by the commissioner's order mailed to the insurer by registered or certified mail. The commissioner shall promptly also give notice of such suspension or revocation to the insurer's agents in this state of record in the commissioner's office. The insurer shall not solicit or write any new coverages in this state during the period of any such suspension or revocation, nor after such revocation renew any business previously written.

(2) In his discretion the commissioner may cause notice of any such suspension or revocation to be published in one or more newspapers of general circulation published in this state.

Blstory.-§64, ch. 59-205. Note.-SlmUar provisions found In former §§205.«. 625.11.

625.12. 626.08. 635.172. 638.18. 642.02.


624.0220 Duration of suspension; insurer's obligations during suspension period; reinstatement.-

(1) Suspension of an insurer's certificate of authority shall be for such period, not to exceed one year, as is fixed by the commissioner in the order of suspension, unless the commissioner shortens or rescinds such suspension or the order upon which the suspension is modified, rescinded or reversed.

(2) During the period of suspension the insurer shall file its annual statement, pay license fees and taxes as required under this code as if the certificate had continued in full force.

(3) Upon expiration of the suspension period (if within such period the certificate of authority has not otherwise terminated) the insurer's certificate of authority shall automatically reinstate unless the commissioner finds that the causes of the suspension have not been removed, or that the insurer is otherwise not in compliance with the requirements of this code, and of which the commissioner shall give the insurer notice not less than thirty days in advance of the expiration of the suspension period. If not so automatically reinstated the certificate of authority shall be deemed to have expired as of the end of the suspension period or upon failure of the insurer to continue the certificate during the suspension period whichever event first occurs.

(4) Upon reinstatement of the insurer's certificate of authority, the authority of its agents in this state to represent the insurer shall likewise reinstate. The commissioner shall promptly notify the insurer and its agents in this state of record in his office, of such reinstatement. B1stor:r.-§~, ch. 59-206. Note.-8imUar provisions found in former §§635.1'12, 638.35,

642.02.

624.0221 Service of process; appointment of commissioner as process agent.-

(1) Each insurer applying for authority to transact insurance in this state, whether domestic, foreign or alien, shall file with the commissioner its appointment of the commissioner and his successors in office, on a form as furnished by the commissioner, as its attorney to receive service of all legal process issued against it in any civil action or proceeding in this state, and agreeing that process so served shall be valid and binding upon the insurer. The appointment shall be irrevocable, shall bind the insurer and any successor in interest as to the assets or liabilities of the insurer, and shall remain in effect as long as there is outstanding in this state any obligation or liability of the insurer resulting from its insurance transactions therein.

(2) At the time of such appointment of the commissioner as its process agent the insurer shall file with the commissioner designation of the name and address of the person to whom process against it served upon the commissioner is to be forwarded. The insurer may

change the designation at any time by a new filing.

(3) Service of process upon the commissioner as the insurer's attorney pursuant to such an appointment shall be the sole method of service of process upon an authorized domestic, foreign or alien insurer in this state.

B1stor:r.-§66, ch. 59-205. Note.-8imUar provisions found in former 11828.03, 828.0'.

624.0222 Serving process.-(1) Service of process upon the commis

sioner as process agent of the insurer (under §624.0221) shall be made by serving copies in triplicate of the process upon the commissioner or upon his assistant, deputy, or other person in charge of his office. Upon receiving such service the commissioner shall file one copy in his office, return one copy with his admission of service, and promptly forward one copy of the process by registered or certified mail to the person last designated by the insurer to receive the same, as provided under §624.0221 (2).

(2) Where process is served upon the commissioner as an insurer's process agent, the insurer shall not be required to answer or plead except within twenty days after the date upon which the commissioner mailed a copy of the process served upon him as required by subsection (1).

(3) Process served upon the commissioner and copy thereof forwarded as in this section provided shall for all purposes constitute valid and binding service thereof upon the insurer.

B1stor;r.-§87, ch. 59-205. Note.-8imUar provisions found in former 1828.M.

624.0223 Annual statement and other information.-

(1) Each authorized insurer shall annually on or before March 1, or within such extension of time therefor as the commissioner, for good cause, may have granted, file with the commissioner a full and true statement of its financial condition, transactions, and affairs as of the December 31 preceding. The statement shall be in such general form and context as approved or adopted for current use by the national association of insurance commissioners or its successor organization, for use as to the type of insurer and kinds of insurance to be reported upon, and as supplemented for additional information required by the commissioner. The statement shall be verified by the oath of two executive officers of the insurer; or if a reciprocal insurer, by the oath of the attorney in fact or its like officers if a corporation.

(2) The statement of an alien insurer shall be verified by the insurer's United States manager or other officer duly authorized. It shall be a separate statement, to be known as its general statement, of its transactions, assets, and affairs within the United States unless the commissioner requires otherwise. If the commissioner requires a statement as to the insurer's affairs elsewhere, the insurer shall file

Ch.624 INSURANCE CODE; ADMINISTRATION AND GENERAL PROVISIONS Ch.624

such statement with the commissioner as soon as reasonably possible.

(3) Each insurer having a deposit as required under §624.0210 (deposit requirement, domestic and foreign insurers) shall file with the commissioner annually with its annual statement a certificate to the effect that the assets so deposited have a market value equal to or in excess of the amount of deposit so required.

(4) At time of filing, the insurer shall pay the fee for filing its annual statement in the amount specified in §624.0300 (filing, license, and miscellaneous fees).

(5) The commissioner may refuse to continue, or may suspend or revoke, the certificate of authority of an insurer failing to file its annual statement and accompanying certificates when due.

(6) In addition to information called for and furnished in connection with its annual statement, an insurer shall furnish to the commissioner as soon as reasonably possible such information as to its transactions or affairs as the commissioner may from time to time request in writing.

mstory .-§ 68, ch. 59-205. Note.-Blmllar provisions found In former 11626.02, 626.07,

626.23, 628.07, 631.06, 631.16, 632.18, 648.02,

624.0224 Resident agent and countersignature required, property, casualty, surety insurances.-

(1) Except as stated in §624.0225, no authorized property, casualty, or surety insurer shall assume direct liability as to a subject of insurance resident, located, or to be performed in this state unless the policy or contract of insurance is issued by or through, and is countersigned by, a local producing agent who is a resident of this state, regularly commissioned and licensed currently as an agent of the insurer under this code. If two or more authorized insurers issue a single policy of insurance against legal liability for loss or damage to person or property caused by the nuclear energy hazard, or a single policy insuring against loss or damage to property by radioactive contamination, whether or not also insuring against one or more other perils proper to insure against in this state, such policy if otherwise lawful may be countersigned on behalf of all of the insurers by a licensed resident agent of any insurer appearing thereon. Such agent shall receive on each policy or contract the full and usual commission allowed and paid by the insurer to its agents on business written or transacted by them for the insurer.

(2) If any subject of insurance referred to in subsection (1) is insured under a policy, or contract, or certificate of renewal or continuation thereof, issued in another state and covering also property and risks outside this state, a certificate evidencing such insurance as to subjects located, resident, or to be performed in this state, shall be issued by or

through and shall be countersigned by the insurer's commissioned and licensed local producing agent resident in this state in the same manner and subject to the same conditions as is provided in subsection (1) as to policies and contracts; except that the compensation to be paid to the agent may relate only to the Florida portion of the insurance risks represented by such policy or contract.

(3) An agent shall not sign or countersign in blank any policy to be issued outside of his office, or countersign in blank any countersignature endorsement therefor, or certificate issued thereunder; nor shall an agent give power of attorney to or otherwise authorize any other person to countersign any such document in his name unless the person so authorized is directly employed by the agent and by no other person, and is so employed in the office of the agent.

(4) This section shall not be deemed to prohibit mutual and reciprocal insurers from using salaried local resident licensed agents for the production and servicing of business in this state and the issuance and countersignature by such agents of insurance policies or contracts, where required under subsection (1), and without payment of commission therefor.

mstory.-§69, ch. 59-205. Note.-Blml!ar provisions found in former 11627.87, 627.90,

627.99, 627.0109.

624.0225 Exceptions to resident agent and countersignature law.-8ection 624.0224 shall not apply to:

(1) Contracts of reinsurance. (2) Policies of insurance on the rolling

stock of railroad companies doing a general freight and passenger business.

mstory.-§70, ch. 59-205. Note.-Blml!ar provisions found In former 1627.0109.

624.0226 Compliance with resident agent law; renewal of certificate of authority.-Continuation of a certificate of authority of an insurer to transact property, marine, casualty or surety insurance in this state shall be permitted only if the insurer is otherwise entitled thereto and after the secretary and manager of the insurer has made oath that, to the best of his knowledge and belief, no policy or contract of insurance covering property or risk located in this state, and to which §624.0224 is applicable, has been issued, written or placed during the preceding calendar year, except by resident producing agents of such insurer in Florida duly commissioned, and licensed and that local agents have received the full, ~ntire and usual commission due and allowed its agents; and that none of its agents or representatives in this state had divided or offered to divide, unlawfully, his commission or other profits with other persons.

mstory.-§71, ch. 59-205. Note.-Blmllar provisions found In former §§627.99, 627.0107.

624.0227 Licensed agent law, life and disability insurances.-

(1) No life insurer shall deliver or issue


for delivery in this state any policy of life insurance, master group life insurance contract, master credit life policy or agreement, annuity contract or contract or policy of disability insurance, unless the application for such policy or contract is taken by, and the delivery of such policy or contract is made through, an insurance agent of the insurer duly licensed under the law of Florida, who shall receive the usual commission due to an agent from such insurer.

(2) Each such insurer shall maintain a licensed insurance agent at all times for the purpose of and through whom policies or contracts issued or delivered in this state, shall be serviced.

(3) This section shall not apply to policies of insurance or annuity contracts on nonresidents which are applied for outside of and delivered in the state.

History.-§72. ch. 59-205. Note.-8lmllar provisions found In former §634.27.

624.0228 Retaliatory provision, insurers.(1) When by or pursuant to the laws of any

other state or foreign country any taxes, licenses and other fees, in the aggregate, and any fines, penalties, deposit requirements or other material obligations, prohibitions or restrictions are or would be imposed upon Florida insurers or upon the agents or representatives of such insurers, which are in excess of such taxes, licenses and other fees, in the aggregate, or which are in excess of the fines, penalties, deposit requirements or other obligations, prohibitions, or restrictions directly imposed upon similar insurers, or upon the agents or representatives of such insurers, of such other state or country under the statutes of this state, so long as such laws of such other state or country continue in force or are so applied, the same taxes, licenses and other fees, in the aggregate, or fines, penalties, deposit requirements or other material obligations, prohibitions, or restrictions of whatever kind shall be imposed by the commissioner upon the insurers, or upon the agents or representatives of such insurers, of such other state or country doing business or seeking to do business in Florida.

(2) Any tax, license or other obligation imposed by any city, county, or other political subdivision or agency of a state, jurisdiction or foreign country on Florida insurers or their agents or representatives shall be deemed to be imposed by such state, jurisdiction, or foreign country within the meaning of subsection (1).

(3) In the application of subsection (1) of this section any foreign insurer which maintains a regional home office in this state as defined in §624.0312 shall be permitted as credits and deductions from the aggregate of penalties, fees, charges and taxes imposed pursuant to this section, the same amount of credits and deductions which would otherwise be permitted such insurer under such §624.0312.

(4) This section shall not apply as to personal income taxes, nor as to ad valorem taxes on real or personal property, nor as to special

purpose obligations or assessments imposed by another state in connection with particular kinds of insurance other than property insurance, except that deductions, from premium taxes or other taxes otherwise payable, allowed on account of real estate or personal property taxes paid shall be taken into consideration by the commissioner in determining the propriety and extent of retaliatory action under this section.

(5) This section shall not apply as to an insurer of any other state doing business in Florida if fifteen per cent or more of the capital stock of such insurer is owned by a corporation organized under the Florida laws and domiciled in Florida.

(6) For the purposes of this section the domicile of an alien insurer, other than an insurer formed under the laws of Canada or a province thereof, shall be that state designated by the insurer in writing filed with the commissioner at time of admission to this state or within six months after the effective date of this code, whichever date is the later, and may be any of the following states::

(a) That in which the insurer was first authorized to transact insurance;

(b) That in which is located the insurer's principal place of business in the United States;

(c) That in which is held the larger deposit of trusteed assets of the insurer for the protection of its policy holders and creditors in the United States.

If the insurer makes no such designation its domicile shall be deemed to be that state in which is located its principal place of business in the United States.

In the case of an insurer formed under the laws of Canada or a province thereof, its domicile shall be deemed to be that province in which is located its head office.

(7) The excess amount of all fees, licenses and taxes collected by the commissioner under this section over the amount of similar fees, licenses and taxes provided for in part IV of chapter 624, together with all fines, penalties or other monetary obligations collected under this section and §§626.711 and 626.0116 exclusive of such fees, licenses and taxes, shall be deposited by the commissioner to the credit of the miscellaneous service fund provided for in §624.0324 of this code.

msto17.-§73. ch. 59-205. Note.-8lmllar provisions found In former §626.061.

624.0229 Withdrawal of insurer or discontinuance of writing certain classes of insurance.-

(1) Any insurer desiring to surrender ilts certificate of authority, withdraw from this state, or discontinue the writing of certain classes of insurance in this state, shall give forty-five days notice in writing to the insurance commissioner setting forth its reasons for such action.

(2) This section shall not apply to life insurance. mstory.-§2. ch. 63-149.


PART IV: FEES, TAXES AND FUNDS

624.0300

624.0301 .624.0302

;Filing, license and miscellaneou~ fees.

Reduced license tax for partial year. Liability for state, county license

tax. 624.030a County license tax; determination;

additional offices; nonresident agents.

County license tax.;: deposit and re-mittance.

624.0304

624.0305 624.0306 624.0307 .624.0308

Municipal license tax. Insurer's license tax; when payable. Premium tax; rate and computation. Tax on wet marine and transporta-

tion insurance. 624.0309 624.0310 624.0311

Tax statement; overpayments. Domestic insurers exempit. Tax liability of certain domestic in

surers. 624.0300 Filing, license and miscellaneous

fees.-The state treasurer as ex officio insurance commissioner shall collect in advance, and persons so served shall pay to him in advance, fees, licenses, and miscellaneous charges as follows:

(1) Certificate of authority of insurer. (a) Filing application for

original certificate of authority, including all documents required to be filed therewith, filing fee_

(b) Reinstatement fee __ _ (2) .Charter documents of in

surer. (a) For filing articles of in

corporation or other charter documents, other than at time of ap-plication for original certificate of authority, filing fee ___ _

(b) For filing amendment to articles of incorporation or char-ter, other than at time of appli-cation for original certificate of authority, filing fee ___ ...,.--_

(c) For filing bylaws, where required, or amendments thereof, filing fee

(3) Annual license tax of insurer, each domestic, foreign and alien insurer _______ _

(4) Annual statement of insurer, filing (except where filed as part of application for original certificate of authority) , filing fee

(5) Insurance representatives, property, marine, casualty and surety insurance.

(a) Agents. 1. Agent's original license,

each insurer: Appointment fee $ 1.00 State license tax ______ 6.00

~ 25.00 50.00

10.00

0.00

5.00

200.00

10.00

County license tax 3.00 Total $ 10.00

2. Annual continuation or re-

~24.0312 ;Regional home offices of foreign in,surers; credits on premium tax lia.bility.

624.0313

624.0314 624.0315 624.0316 624.0317;

State fire marshal regulatory assess-ment; levy and amount.

Same; deposit and use of funds. Same; reduction of assessment. Same; tax return, overpayment. Nonpayment of premium tax or fire

624.0318 .624.0319

marshal assessment; penalty:. Preemption by state. -

624.0320

624.0321 624.0322 624.0323 624.0324

Deposit of certain tax receipts; refund of improper payments.

Insurance commissioner'~ clearing account.

Enforcement trust fund. Valuation services trust fund. License receipts trust fund. Miscellaneous service trust fund.

newal of license, each insurer: Appointment fee ______ ,$ 1.00 State license tax 6.00 County license tax 8.00 Total $ 10.00

(b) Solicitors. 1. Solicitor's original license:

Appointment fee ______ ,$ 1.00 State license tax 6.00 County license tax 3.00 Total $ 10.00

2. Annual continuation of license: Appointment fee ______ $ 1.00 State license tax 6.00 County license tax 3.00 Total $ 10.00

(c) Nonresident agents. Original issuance of license, li-cense fee ________ _ Annual renewal or continuation of license, license fee ____ _

(d) Service representatives. Original permit, appointment fee Annual renewal or continuation of permit, appointment fee __ _

(6) Life insurance agents. (a) Agent's license, each in-

insurer: 1. Original license:

Appointment fee $ 1.00 State license tax ______ 6.00

$ 25.00

$ 25.00

$ 5.00

$ 5.00

County license tax 3.00 Total $ 10.00

2. Annual renewal or continuation of license: Appointment fee $ 1.00 State license tax ______ 6.00 County license tax 3.00 Total $ 10.00

(b ) Nonresident age n t li-cense: Original issuance of license, li-cense fee, each insurer ___ _ $ 10.00 '

Cn. 624 INSURANCE CODE; ADMINISTRATION AND GENERATI PROVISIONS

Annual renewal or continuation: of license, each insurer, license fee

(7) Disability ins Jl ran c e agents.

(a) :Agent's license, eacli insurer:

1. Original license: Appointment fee ______ $ 1.00 State license tax . 6.00 County license tax 3.00

~ ],0.00

,Total ,$. 10.00 2. Annual renewal or continu

ation of license: Appointment fee ______ $ 1.00 State license tax 6.00 County license tax 3.00 Total $. 10.00

(b) Nonresident agen t license: Original issuance of license, license fee, each insurer ----,:-:--_~ Annual renewal or continuation of license, each insurer, license fee

(8) All limited licenses as agent, as provided for in §626.321, or for license as limited surety agent as defined in §903.37, each: agent and each insurer repre-sented:

(a) Original license: Appointment fee ______ $ 1.00 State license tax 6.00 County license tax 3.00

$. 10.00

~ 10.00

Total $ 10.00 (b) Annual renewal or con

tinuation of license: Appointment fee _____ $ 1.00 State license tax 6.00 County license tax 3.00 Total $ 10.00

(9) Fraternal benefit society agents. Agent's license, e a c Ii agent and each insurer:

(a) Original license: Appointment fee _____ $ 1.00 State license tax 6.00 County license tax 3.00 Total $ 10.00

(b) Annual renewal or continuation of license: Appointment fee $ 1.00 State license tax ______ 6.00 County license tax 3.00 Total $ 10.00

(10) VENDING MACHINES, as authorized under §626.531: Original license, each machine, permit fee ________ _ Annual renewal or continuation of license, each machine, permit fee ___________ _

(11) Surplus line agent. Original license, license fee __ Annual renewal or continuation of license, license fee ___ _

$ 25.00

:$ 50.00

$ ~O.OO

'(12)' ADJUSTERS' ;LICE:tjS;!llS :AND PERMITS. . (a) Adjuster's license: :Original issuance of license, li-~ense fee __ -:-___ ::-:-_:-;-_ :Annual renewal or continuation (>f license, license fee ___ _

(b) Nonresident adjuster's license: -.Original issuance of license, li-cense fee _____ ---::----:-::--Annual renewal or continuation of license, license fee ___ _

(c) Emergency adjuster's per-mit, appointment fee ___ _

(d) Claim. investigator's per-mit, appointment fee ___ ~

(e) Fee to cover cost of credit report, where such report must be secured by commissioner __

(13) Examination for license as agent, solicitor or adjuster: Filing application for examination, each examination: For license as life insurance agent, filing fee ___ -::--:-_-::-:-For license as fraternal benefit society agent, filing fee ___ _ For any other license, filing fee_

(14) Temporary I ice n seas agent or adjuster, where expressly provided for, rate of fee for each month of the period for which the license is originally issued, and for which the license is renewed or extended ___ _

(15) Reissuance, rei n s t atement, modification or duplicate copy of any insurance representa-tive license or permit ____ _

*(16) Changing of address only of licensee holding any inIsurance representative license or permit _________ _

(17) Additional license continuation fees as prescribed in §§626.371, 626.381, 626.391, ~26.-401, 626.411, and 626.421.

(18) Filing application for permit to form insurer as referred to in chapter 628, filing fee __

(19) Annual license fee of rating organization, each domes-tic or foreign organization __ _

(20) Mis,cellaneous services: (a) For copies of documents

or records on file with the com-missioner, per page _-,-__ --::

(b) F'or each certificate of the commissioner under his seal, authenticating any document or other instrument (other than licenses, permits, or certificates of authority)

(c) For preparing lists of agents, solicitors, adjusters and other insurance representatives,

Ch. 624

$. 10.00

$ ~O.OO

$. 10.00

$ 10.00

$ 5.00

$ 10.00

$ 10.00

$ 5.00

$ 5.00 $ 10.00

$ 1.00

$ 2.00

$ 1.00

$ 25.00

$ 10.00

$ .50

$ 1.00


and for other miscellaneous services, such reasonable charge as may be fixed by the commissioner.

History.-§74, ch. 59-205; (16) n. §t, ch. 63-491. *Note.-§624.0300 (16) effective January I, 1965. Note.-Bimllar provisions found In former 11205.43, 205.45,

626.23, 627.72, 627.81, 627.85, 628.10, 629.04, 630.04, 632.18, 634.05, 634.24. 636.30. 636.42. 64.4.05. 64.5.10.

624.0301 Reduced license tax for partial year.-If any certificate of authority, license or appointment for which a "license tax" is provided and designated as such a "license tax" is required after expiration of the first six months of the applicable certificate of authority or license year, the amount of "license tax" payable therefor or in connection therewith shall be half of the license tax designated as such and otherwise payable under §§624.0300 or 624.0303 (3). No other "fee," "permit," "registration," or other charge not designated in §§624.0300 or 624.0303(3) as a "license tax" is affected by this section.

Wstory.-§75, ch. 59-205. Note.-Blmllar provisions found In former §644.05.

624.0302 Liability for state, county license tax.-

(1) Each authorized insurer that uses insurance agents in this state shall be liable for and shall pay the state and county license taxes required therefor under §§624.0300 or 624.0303.

(2) Each insurance agent in this state that uses solicitors shall be liable for and shall pay the state and county license taxes required therefor under §624.0300.

Histor".-§76, ch. 59-205. Note.-Blmllar provisions found In former § § 205.45, 631.09.

624.0303 County license tax; determination; additional offices; nonresident agents.-

(1) The county license tax provided for under §624.0300 as to an agent shall be paid by each insurer for each agent only for the county where the agent resides, or if such agent's place of business is located in a county other than that of his residence, then for the county wherein is located such place of business. If an agent maintains an office or place of business in more than one county, the license tax shall be paid for him by each such insurer for each county wherein the agent represents such insurer and has a place of business. When under this subsection an insurer is required to pay county license tax for an agent for a county or counties other than the agent's county of residence, the insurer shall in the list provided for in §626.501 designate the county or counties for which the license taxes are paid.

(2) The county license tax provided for under §624.0300 as to a solicitor shall be paid only for the county wherein is located the office or place of business of the agent by whom the solicitor is employed and out of which he works as his permanent place of business. When under this subsection an agent is required to pay a county license tax for a solicitor for a county other than the solicitor's county of residence, the agent shall, in the list provided for in §626.501 designate the county for which the license tax is paid.

(3) A county license tax of three dollars per year shall be paid by each insurer for each county in this state in which an agent who resides outside of this state represents and engages in person in the activities of an agent for the insurer. This provision shall not be deemed to authorize any activities by an agent which are otherwise prohibited under this code.

Hlstory.-§77, ch. 69-205. Note.-Blmllar prOVisions found In former §205.45.

624.0304 County license tax; deposit and remittance.-

(1) The commissioner as state treasurer shall deposit in the agents and solicitors county license tax trust fund, all funds accepted as county license tax under part IV of this chapter. He shall keep a separate account for all moneys so collected for each county, and after deducting three per cent therefrom shall remit the balance to the counties. Two-thirds of such three per cent so deducted shall be deposited into the general revenue fund of the state, and the remaining one-third of such three per cent shall be deposited into the insurance commissioner's miscellaneous service trust fund provided for in §624.0324.

(2) The payment and collection of county license tax under this chapter shall be in lieu of collection thereof by the respective county tax collectors.

(3) The comptroller shall annually, as of January 1 following the date of collection, and thereafter at such other times as the state treasurer may elect, draw his warrants on the state treasury payable to the respective counties entitled to receive the same, for the full net amount of such license taxes to each county. The warrants shall be countersigned by the governor.

BlstorY.-§78, ch. 69-205; (1) B. by §2, ch. 61-119. Note.-Blmllar provisions found In former 1205.45.

624.0305 Municipal license tax.-Municipal corporations may require a license tax of insurance agents and solicitors not to exceed fifty per cent of the state license tax specified as to such agents and solicitors under part IV of this chapter, and unless otherwise authorized by law. Such a tax may be required only by a municipal corporation within the boundaries of which is located the agent's business office, or if no such office is required under this code, by the municipal corporation of the agent's place of residence.

Hlstory.-§79, ch. 59-205. Note.-Blmllar provisions found In former §205.45.

624.0306 Insurer's license tax; when payable.-

(1) The insurer's license tax provided for in §624.0300 (3) shall be paid, by an insurer newly applying for certificate of authority to transact insurance in this state, prior to and contingent upon the issuance of its original certificate of authority. If the certificate of authority is not issued, the license tax payment shall be refunded to the insurer. The license tax so paid by a newly authorized insurer shall cover the period expiring on the June 1 next following the


date of its original certificate of authority. (2) Each authorized insurer shall pay the

license ,tax ann ually on or before June 1. (3) The license tax is subject to reduction

for a partial initial certificate of authority year as provided in §624.0301.

History.-§80, ch. 69-205; §3, ch. 63-149.

624.0307 Premium tax; rate and computation.-

(1) In addition to the license taxes provided for in this chapter, each insurer shall also annually, and on or before March 1 in each year, except as to wet marine and transportation insurance taxed under §624.0308, pay to the state treasurer a tax on insurance premiums or assessments, including membership fees and policy fees and gross deposits received from subscribers to reciprocal or interinsurance agreements, and on annuity premiums or considerations, received during the preceding calendar year, the amounts thereof to be determined as hereinafter set forth in this section to wit:

(a) An amount equal to two per cent of the gross amount of such receipts on account of life and disability insurance policies covering persons resident in this state and on account of all other types of policies and contracts (except annuity policies or contracts taxable under paragraph (b) hereof) covering property, subjects or risks located, resident or to be performed in this state, omitting premiums on reinsurance accepted, and less return premiums or assessments, but without deductions for reinsurance ceded to other insurers, and without deductions for moneys paid upon surrender of policies or certificates for cash surrender value and without deductions for discounts or re: funds for direct or prompt payment of premiums or assessments, and without deductions on account of dividends of any nature or amount paid and credited or allowed to holders of insurance policies, certificates, or surety indemnity, or reciprocal or interinsurance con: tracts or agreements; and

(b) An amount equal to one per cent of the gross receipts on annuity policies or contracts paid by holders thereof in this state.

(2) Payment by the insurer of the license taxes and premium receipts taxes provided for in part IV of this chapter is a condition precedent to doing business within this state.

HistorY.-§81, ch. 69-205. Note.-Blmllar provisions found In former § §205.43, 626.24.

624.0308 Tax on wet marine and transportation insurance.-

(1) On or before March 1 of each year each foreign and alien insurer shall file with the commissioner, on forms as prescribed in §624.-0309, a report of its gross underwriting profit on wet marine and transportation insurance, as defined in §624.0406 (2), written in this state during the calendar year next preceding and shall at the same time pay to the state treasurer a tax of three quarters of one per cent of such gross underwriting profit.

(2) Such gross underwriting profit shall be ascertained by deducting from the net premiums (Le., gross premiums less all return premiums and premiums for reinsurance) on such wet marine and transportation insurance contracts the net losses paid (Le., gross losses paid less salvage and recoveries on reinsurance ceded) during such calendar year under such contracts.

HlstorY.-§82, ch. 59-205. Note.-Blmllar provisions found In former §626.24.

624.0309 Tax statement; overpayments.(1) Tax return as to taxes mentioned in

§§624.0307 and 624.0308 shall be made by insurers annually on or before March 1 on forms to be prescribed by the commissioner, and shall be sworn to by one or more of the executive officers or attorney (if a reciprocal insurer) of the insurer making the returns.

(2) If any insurer makes an overpayment on account of taxes due under §§624.0307 and 624.0308, a refund of the overpayment of taxes may be made from the insurance commissioner's clearing account as provided under §624.-0320.

mstory.-§83, ch. 69-205. Note.-Blmllar provisions found In former §§205.43, 826.24.

624.0310 Domestic insurers exempt.-Insurers organized and existing under the laws of this state, and which insurers maintain their home offices in this state, shall not be required to pay the tax on insurance and annuity premiums, assessments or considerations as imposed under §§624.0307 and 624.03,08, except as provided in §624.031l.

Hlstory.-§84, ch. 59-205. Note.-Blmllar provisions found In former § §205.431, 628.13.

624.0311 Tax liability of certain domestic insurers.-A domestic insurer succeeding to the business and assets of a United States branch of an alien insurer, as provided in chapter 630, is hereby determined to be susceptible to a distinct and separate classification for premium and other license tax purposes. As to its business so acquired, such a domestic insurer shall be liable for the payment of the tax on insurance and annuity premiums, assessments, fees, deposits and considerations as imposed by §§624.0307 and 624.0308, as such laws now exist or are hereafter modified.

Hlstory.-§85, ch. 59-205. Note.-Blmllar provisions found In former §625.46.

624.0312 Regional home offices of foreign insurers; credits on premium tax liability.-

(1) A foreign insurer formed by or under the laws of any other state or foreign country, which is subject to the taxes imposed by §§624.0307 and 624.0308, and which owns and substantially occupies any building in this state as a regional home office, as hereinafter defined, shall be entitled to the following credits and deductions against such tax:

(a) An amount equal to fifty per cent of the amount of the tax as determined under said sections; and

(b) An amount equal to the full amount


of all ad valorem taxes paid by sucll a foreign insurer during the year next preceding the filing of the return required by §624.0309:

1. Upon any building and the land on whicll it stands in this state owned and substantially occupied by such foreign insurer in the said tax year as a regional home office, together with any adjacent land as may be required for the convenient use and occupation thereof, and

2. Upon any property used in tonnection with the operation and maintenance of such regional home office; provided, however, that in no event shall such credits and deductions reduce the amount of tax payable to less than twenty per cent of the amount of the tax as determined under §§624.0307 and 624.0308; and, provided further, that as to a foreign insurer issuing policies insuring against loss or damage from the risks of fire, tornado, and certain casualty lines, the tax imposed by §§624.0307 and 624.0308, as intended and contemplated by the above provisions of this subsection, shall be construed to mean the net amount of said tax remaining after there has been credited thereon such gross premium receipts tax as may be payable by such insurer in pursuance of the imposition of such tax by any incorporated cities or towns in the state for firemen's relief and pension funds and policemen's retirement funds maintained in such cities or towns, as provided in and by relevant provisions of Florida statutes.

(2) A regional llome office, for the purposes of this section, shall mean an office performing, for an area covering three or more states, the selling, underwriting, issuing and servicing of insurance, including the following functions relating thereto: Actuarial, medical (where required), law, approval or rejection of applications for insurance and issuance of policies thereon, approval of payment of aU types of claims, maintenance of records to provide policyholder information and service, advertising and publications, public relations, supervision and training of sales and service forces.

(3) Such a foreign insurer shall, on or liefore March 1 of each year, on forms to be prescribed by the commissioner, furnish proof which shall satisfy the commissioner that such foreign insurer owned and substantially occupied during the preceding calendar year a regional home office, as contemplated by subsection (2) of this section. Upon receipt of sucn proof, the commissioner shall issue to the state treasurer a certificate that the foreign insurer owned and substantially occupied during the preceding calendar year a building in this state as such a regional home office, with the location thereof, and is entitled to the credits and deductions provided for in subsection (1) of this section with respect to the taxes imposed by §§624.0307 and 624.0308 which accrued during such calendar year and which are payable on or before the following March 1. Provided, that with respect only to the calendar year in which a foreign insurer shall first establish such a

regional home office in tllis state, if the proof filed with the commissioner on or before March 1 of the succeeding year, as above provided in this subsection, shall evidence to the satisfaction of the commissioner that said foreign insurer established such a regional home office in this state on or prior to August 1 of such calendar year and substantially occupied and maintained same during the remainder of such calendar year, then the foreign insurer shall be entitled to the rights, credits and deductions provided in this section as fully as though it had owned and substantially occupied said regional home office during the entire period of such calendar year; and in such event the certificate to be issued by the commissioner to the state treasurer, as above provided in this subsection, shall be so worded as to accomplish the intent and purpose of this proviso.

·(4) Where two or more such foreign insurers, each of which is subject to the taxes imposed by §§624.0307 and 624.0308, are under common ownership or management and control, and which insurers jointly own with equal interest and in the aggregate SUbstantially occupy any building in Florida as a regional home office, as such a regional home office is otherwise described and defined in subsections (1) and (2) of this section, and each of which insurers otherwise meets the full requirements of the provisions of subsections (1), (2) and (3), shall be granted the rights, benefits and privileges and charged with the duties as set forth in, and included within the provisions of, said subsections (1), (2) and (3) as fully as though each of said insurers substantially owns and occupies such a building in Florida as its said regional home office. In relation to such insurers, the certificate required to be executed and delivered by the commissioner to the state treasurer as required by subsection (3) shall be conformed to meet the requirements of this subsection. "Common ownership or management and control" in relation to any such two or more foreign corporations shall be construed to mean actual common control of such corporations consequent upon stock ownership or agreements and as a result of the ultimate control of such corporations being vested in one corporate board of directors, or as a result of the persons who are members of the controlling faction of the board of directors of one of such corporations being members of the controlling faction for the board or boards of directors of such other corporation or corporations.

IDstory.-§86, eh. 69-205. Note.-BlmUar provtslons found In former 1205.432.

624.0313 State fire marshal regulatory assessment; levy and amount.-

(1) In addition to any other license or excise tax now or hereafter imposed, and such taxes as may be imposed under other statutes, there is hereby assessed and imposed upon every domestic, foreign and alien insurer authorized to engage in this state in the business of issuing policies of fire insurance, a regulatory assessment in an amount equal to thre~-


eighths of one per cent of the gross amount of premiums collected by each such insurer on policies of fire insurance issued by it and insuring property in this state. The assessment shall be payable annually on or before March 1 to the state treasurer by the insurer on such premiums collected by it during the preceding calendar year.

(2) As used in this section, "fire insurance" means the insurance of structures or other property at fixed locations against loss or damage to such structures or other described properties from the risks of fire and lightning; and the terms "policies" and "premiums" respectively mean and include those policies or other contracts or agreements effecting and evidencing insurance, and premiums and other considerations for such policies, of the same character as described in and contemplated by the provisions of §§624.0307 and 624.0308. The amount of such premiums upon which the regulatory assessment shall be computed by each such insurer shall be the amount thereof remaining after deducting therefrom those items described in and permitted by §624.0307 (1) relating to the premium receipts tax thereby imposed.

mstolT.-§87, ch. 69-205. Note.-Bimllar provisions found In former 1205.W.

624.0314 Same;" deposit and use of funds.(1) The regulatory assessment imposed un

der §624.0313 shall be deposited by the state treasurer, when received and audited, into the fund heretofore created and known and designated as the "state fire marshal trust fund."

(2) The moneys so received and deposited in the fund are hereby appropriated for use by the state treasurer, as ex officio insurance commissioner and, as such, state fire marshal (hereinafter referred to as "state fire marshal"), to defray the expenses of the state fire marshal in the discharge of his administrative and regulatory powers and duties as prescribed by law, including the maintaining of offices and necessary supplies therefor, essential equipment and other materials, salaries and expenses of required personnel, and all other legitimate expenses relating to the discharge of the .adl!linistrat!ve and regulatory powers and dutIes Imposed In and charged to him under such laws.

(3) If at the end of any fiscal biennium a balance of funds remains in the state fire marshal trust fund, such balance shall not revert to the general fund of the state but shall be retained in the state fire marshal 'trust fund to be used for the purposes for which the same is appropriated as set forth above.

mstory.-§88, ch. 59-205; (1), (3) a. by 12, ch. 61-119. Note.-BimUar provisions found In former §205.433.

624.0315 Same; reduction of assessment.--(1) The state fire marshal shall ascertain on

or before December 1 of each year whether the amounts estimated to be received from the regulatory assessment imposed under §624.0313 for that calendar year, payable on or before the

following March '1:, as herein prescrioed, together with such amounts as may then be in the state fire marshal trust fund, result in an accumulation in the fund in excess of the just requirements for which the assessment is imposed as set forth in §624.0314; and if he determines that the imposition of the full amount of the assessment would result in such excess, he may reduce the percentage amount of the assessment for that calendar year to such percentage as may be necessary to meet the just requirements for which the assessment is imposed.

(2) When a determination is made so reducing the amount of the assessment, the state fire marshal shall make and issue his order setting forth such determination and fixing the amount of assessment for that calendar year, payable on or before March 1 of the following year, and shall mail a copy of such order to each insurer who, according to the records of, the commissioner, is subject to the assessment.

mstOlT.-§89, ch. 69-205; (1) a. by §2, ch. 61-119. Note.-Bimllar provisions found In former 1205.433.

624.0316 Same; tax return, overpayment.(1) Tax returns with respect to the regula

tory assessment prescribed by §624.0313 shall be made by each insurer liable for payment o~ such tax on forms to be prescribed by the commissioner and sworn to by one or more of the executive officers or other persons charged under the law with the management of the insurer.

(2) In the event an insurer makes an overpayment on account of the assessment, a refund of the overpayment may be made to the remittor from the insurance commissioner's clearing account as provided under §624.0320.

mstolT.-§90, ch. 69-205. Note.-Bimllar provisions found In former 1205.W.

624.0317 Nonpayment of premium tax or fire marshal assessment: penalty.-If any insurer fails to pay to the state treasurer on or before March 1 in each and every year any premium taxes required of it under §§624.0307 or 624.-0308, or any state fire marshal regulatory assessment required of it under §§624.0313 or 624.0315, the commissioner may revoke its certificate of authority.

mstory.-§91, ch. 69-205. Note.-Bimllar provisions found In former 11205.433, 208.44.

624.0318 Preemption by state ........ (1) This state hereby preempts the field

of imposing excise, privilege, franchise, income, license, permit, registration and similar taxes and fees, measured by premiums, income, or volume of transactions, upon insurers and their agents and other representatives, and no county, city, municipality, district, school district, or other political subdivision or agency in this state shall impose, levy, charge or require the same, subject however to the provisions of subsection (2).

(2) This section shall not be construed to limit or modify the power of any incorporated

CIl.624 INSURANCE CODE; ADMINISTRATION AND GENERAL PROVISIONS Ch. 624

city or town to levy the taxes authorized by §§175.05 and 185.08.

Blstor;r.-§92, 00. 59-205; §2, ch. 61-75.

624.0319 Deposit of certain tax receipts; refund of improper payments.-

(1) The commissioner as state treasurer, pursuant to §624.0320, shall promptly deposit in the state treasury to the credit of the general fund all "state license tax" portions of agents and solicitors licenses collected under §§624.-0300 and 624.0301, and all premium taxes collected pursuant to §§624.03,07, .6~4.0308, .624.-0311 and 624.0312.

(2) All moneys received by the commissioner not in accordance with the provisions of this code or not in the exact amount as specified by the applicable provisions of this code, except premium taxes which must be audited, shall be returned to the remittor before a receipt is issued therefor. All such moneys shall be so returned by letter of transmittal, and the records of the department shall show the date and reason for such return.

Bfstor;r.-§93, ch. 59-205. Note.-Blmllar provisions found in former 1634.05.

624.0320 Insurance commissioner's clearing account.-

(1) There is created a clearing account designated "insurance commissioner's clearing account," under the custody of the state treasurer, into which account the commissioner shall promptly deposit all acceptable moneys received by him, and for the return to the remittor of any moneys received in error or overpayment under the provisions of this code.

(2) After proper audit and clearance the moneys shall immediately be deposited in the state treasury by means of an abstract of deposit issued by the commissioner or his authorized representative, and credited to the appropriate fund.

(3) Return of moneys to the remittor shall be made by treasury check signed by the state treasurer or his authorized representative upon receipt of a voucher issued by the commissioner or his authorized representative.

(4) Abstracts of deposits and return remittance vouchers shall be issued at least once each calendar week or at any other time the commissioner may elect.

(5) Deposits so made in the state treasury shall be credited to funds as follows:

(a) General revenue fund: 1. All state license taxes. 2. Authorized insurers premium taxes.

(b) Agencies fund: . 1. License receipt trust fund.

o 2. Miscellaneous service trust fund. 3. Valuation service trust fund. 4. State fire marshal trust fund. 5. Publications trust fund. 6. Enforcement trust fund. 7. Insurer examination revolving trust

fund. (el Trust fund:

1. Agents and solicitors county license tax trust fund.

2. Municipal firemen's pension trust fund.

3. Municipal police officers retirement trust fund.

Additional funds under paragraphs '(a), (b)', and (c), may be created by the commissioner and state comptroller as needed.

(6) The commissioner shall follow tlie procedure in this section for the handling of moneys received within the scope of this code, any other laws of this state notwithstanding.

Blstory.-§94, ch. 59-205; (5) (b), (c) a. by §2,ch. 61-119; (5) (b) a. by §2, ch. 61-208.

Note.-BlmUar provisions found in former §205.43. cf.-§ 634.221, Automobile warranty administration trust fund.

624.0321 Enforcement trust fund.-(1) There is continued in the state treasury

that fund heretofore created and designated "insurance commissioner's enforcement trust fund" into which all fines, monetary penalties, and costs imposed upon persons by the commissioner as authorized by law for violation of the laws of this state shall be deposited, and any sums received for copies of the stenographic record of hearings, and from which payment for costs of investigations, including salaries, travel expenses, supplies and equipment, and the expenses of hearings may be made.

(2) The commissioner is authorized from time to time also to make deposits to the credit of this fund from moneys appropriated for the operation of his office. Whenever the balance in the fund exceeds twenty-five thousand dollars, the funds appropriated for the operation of the commissioner's office shall be reimbursed to the extent of the amount so paid therefrom into the enforcement trust fund. If after making such reimbursement the amount remaining in the enforcement trust fund still exceeds twenty-five thousand dollars, the amount of such excess shall be paid into the general revenue fund of the state.

BfstorT.-§95, ch. 59-205; §2, ch. 61-119. Note.-BlmUar provisions found in former §§626.28, 626.31.

624.0322 Valuation services, trust fund.There is created in the state treasury a fund designated "insurance commissioner's valuation services trust fund" to which shall be credited all payments received by the commissioner on account of actuarial and other services in the valuation or computation of the reserves of life insurers pursuant to §625.-121 (2) (standard valuation law). Such fund shall be used for or toward payment of the costs of providing such services.

Bfstor;r.-§96, 00. 59-205; §2, ch. 61-119.

624.0323 License receipts trust fund.-(1) There is created in the state treasury

a continuing fund designated "insurance commiss\ioner's license receipts trust fund" to which shall be credited all payments received on account of items provided for under respective provisions of §624.0300, as follows:

(a) Subsection (5) (c) (n 0 n res ide n t agents) ;

(b) Subsection (6) (b)'(n 0 n res ide n t agents) ;


(c)' Subsection (7) :<b) (n 0 n res ide n t agents) ;

Cd) Subsection (10) (vending machines); (e) Subsection (11) (surplus lines agent); (f) Subsection (12) (a) (adjusters); (g) Subsection (12) (b) (nonresident ad-

:justers) ; ... . (h) subsection (14} ~(temporary license),

and (i) Subsection '(18) (rating organizations). (2) Such continuing fund shall be used by

the commissioner to assist in defraying the cost of operation of his office.

Hlstor;r.-§97. ch. 59-205; (1) a. by §2. ch. 61-119.

624.0324 Miscellaneous service trust fund.(1) There is created in the state treasury

a continuing fund designated "insurance commissioner's miscellaneous service trust fund" to which shall be credited all payments received on account of special "license continuation fees" or "permit continuation fees" provided for in part I of chapter 626 (licensing procedure law) and of items provided for under respective provisions of §624.0300, as follows:

(a) Subsection (1) (a) (filing application for original certificate of authority);

(b) Subsection (1) (b) (reinstatement fee) ; (c) Subsection (2) (charter documents of

insurer) ; (d) Subsection (4) (annual statement of

insurer) ; (e) The "appointment fee" portion of any

license or permit provided for under the following:

1. Subsection (5), '(insurance representatives, property, marine, casualty and surety) exclusive of paragraph (d) (service representatives) ;

2. Subsection (6) '(life insurance agents); 3. Subsection (7) (disability insurance

agents) ;

4. Subsection (8) (limited licenses); 5. Subsection (9) (fraternal benefit society

agents) ; 6. Subsection (12) (c) (emergency adjuster

permit) ; 7. Subsection (12) (d) (claims investigator

permit); and (f) Subsection (12) (e) (fee to cover cost

of credit report) ; (g) Subsection (13) (examination for li

cense); (h) Subsection (15) (reissuance, reinstate

ment, modification, etc. of license or permit); (i) Subsection (17) (filing application for

permit to form insurer); and (j) Subsection (19) (miscellaneous ser

vices) ; (2) This continuing fund shall likewise be

credited with all sums received under the following sections:

(a) Section 624.0107 (4) (copies of rules and regulations) ;

(b) Section 624.0108 (4) (copies of notices) ;

(c) Section 624.0203 (6) (additional filing fee, previously unauthorized insurers);

(d) Section 624.0228, as provided in subsection (7) thereof;

(e) Section 626.711 (retaliatory provision, agents) as provided in subsection (1) thereof;

(f) Section 626.05~9 (surplus lines tax); and

(g) Section 626.0535 (taxes and interest on independently procured coverages).

(3) Such continuing fund shall be used by the commissioner to assist in defraying the cost of operation of his office.

mstory.-§96. ch. 69-205; (1) a. by 12. ch. 61-119. Note.-BlmUar provisions found In former §§205.45. 632.18.

634.05. 644.05.

PARTI V. KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE

624.0400 Definitions not mutually exclusive. 624.0401 Life insurance, life insurer defined. 624.0402 Disability insurance defined. 624.0403 Property insurance defined. 624.0404 Casualty insurance defined. 624.0405 Surety insurance defined.

624.0400 Definitions not mutually exclusive. -It is intended that certain insurance coverages may come within the definitions of two or more kinds of insurance as defined in part V of this chapter, and the inclusion of such coverage within one definition shall not exclude it as to any other kind of insurance within the definition of which such coverage is likewise reasonably includable.

mstor;r.-§99. ch. 59-205.,

624.0401 Life insurance, life insurer defined.-

(1) Life insurance is insurance of human lives. The transaction of life insurance includes also the granting of endowment benefits, addi-

624.0406 Marine, wet marine and transporta-tion insurance defined.

624.0407 Title insurance defined. 624.0408 Limit of risk. 624.0409 Reinsurance.

tional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the insured's disability, and optional modes of settlement of proceeds of life insurance. Life insurance does not include workmen's compensation coverages.

(2) Every insurer, including sick and funeral benefit associations, engaged in the business of issuing life insurance or annuity contracts, including contracts of combined life, health and accident insurance, the reserve funds of which for the fulfillment of such contracts comprises more than fifty per cent of its total reserve funds, or such other reserves as may be required under any law or regulation


of the United States, now or hereafter in force, is a "life insurer" or "life insurance company."

IDst017.-§l00. 00. 69-205. Note.-Bl.mllar prov1Bloll8 found In former 16211.01.

624.0402 Disability insurance defined.-Disability insurance is insurance of human beings against bodily injury, disablement or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto. Disability insurance does not include workmen's compensation coverages.

mst017.-§101, ch. 119-205. Note.-B1.mllar prov1Bloll8 found In former U642.Of, 644.01.

624.0403 Property insurance defined.Property insurance is insurance on real or personal property of every kind and of every interest therein, whether on land, water or in the air, against loss or damage from any and all hazard or cause, and against loss consequential upon such loss or damage, other than noncontractual legal liability for any such loss or damage. Property insurance does not include title insurance, as defined in §624.0407.

IDst017.-§l02. 00. 69-205. Note.-Bl.mllar prov1Bloll8 found In former 1632.08.

624.0404 Casualty insurance defined.-(1) Casualty insurance includes: (a) Vehicle insurance.-Insurance against

loss of or damage to any land vehicle or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, liability or expense resulting from or incidental to ownership, maintenance or use of any such vehicle, aircraft or animal; and as to land vehicles, insurance providing for medical, hospital, surgical, and disability benefits to injured persons, and funeral and death benefits to dependents, beneficiaries, or personal representatives of persons killed, irrespective of legal liability of the insured, while in, entering, alighting from, adjusting, repairing, cranking, or caused by being struck by a vehicle, if such insurance is issued as a part of a liability insurance contract.

(b) Liability insurance.-Insurance against legal liability for the death, injury, or disability of any human being, or for damage to property; with provision for medical, hospital and surgical benefits to the injured persons, irrespective of legal liability of the insured, when issued as a part of a liability insurance contract.

(c) Workmen's compensation and employer's liability.-Insurance of the obligations accepted by, imposed upon, or assumed by employers under law for death, disablement, or injury of employees.

(d) Burglary and the/t.-Insurance against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation, or wrongful conversion, disposal, or concealment, or from any attempt at any of the foregoing; including supplemental coverage for medical, hospital, surgical. and funeral

expense incurred by the named insured or any other person as a result of bodily injury during the commission of a burglary, robbery or theft by another; also insurance against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptances or any other valuable papers and documents, resulting from any cause.

(e) Personal property floater. - Insurance upon personal effects against loss or damage from any cause under a personal property floater.

(f) Glass.-Insurance against loss or damage to glass, including its lettering, ornamentation, and fittings.

(g) Boiler and machiner'/l. - Insurance against any liability and loss or damage to property or interest resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery or apparatus, and to make inspection of and issue certificates of inspection upon boilers, machinery, and apparatus of any kind, whether or not insured; together with provision for medical, hospital and surgical benefits to the injured persons, irrespective of legal liability of insured, when issued as an incidental coverage which is part of a liability insurance contract.

(h) Leakage and fire extinguishing equipment.-Insurance against loss or damage to any property or interest caused by the breakage or leakage of sprinklers, hose, pumps, and other fire extinguishing equipment or apparatus, water pipes or containers, or by water entering through leaks or openings in buildings, and insurance against such loss or damage to such sprinklers, hose, pumps, and other fire extinguishing equipment or apparatus.

(i) Credit.-Insurance against loss or damage resulting from failure of debtors to pay their obligations to the creditor, except insurance against loss or damage resulting from death or disability of the debtor.

(j) Malpractice.-Insurance against legal liability of the insured, and against loss, damage or expense incidental to a claim of such liability, arising out of the death, injury, or disablement of any person, or arising out of damage to the economic interest of any person, as the result of negligence in rendering expert, fiduciary, or professional service.

(k) Livestock.-Insurance against loss or damage to livestock, and services of a veterinary for such animals.

(I) Elevator.-Insurance against loss of or damage to any property of the insured, resulting from the ownership, maintenance or use of elevators, except loss or damage by fire, and to make inspections of and issue certificates of inspection upon, elevators; together with provision for medical, hospital and surgical benefits to the injured persons, irrespective of legal liability of the insured, when issued as an incidental coverage which is part of a liability insurance contract.

(m) Entertainments.-Insurance indemnifying the producer of any motion picture, television, radio, theatrical, sport, spectacle, entertainment, or similar production, event, or exhibition


against loss from interruption, postponement, or cancellation thereof due to death, accidental injury, or sickness of performers, participants, directors, or other principals.

(n) Failure of certain institutions to record documents. - Insurance indemnifying banks, bankers, trust companies, and credit unions against loss from failure or omission to record as public records chattel mortgages and liens of every kind upon personal property, given, held, delivered, or possessed as security or collateral

. for loans, advances, debts, or obligations of all kinds, provided that such insurance shall not indemnify intentional omission to comply with §319.15 relating to the recording of liens upon motor vehicles, nor to the intentional omission to record mortgages upon real property.

(0) Failure to file certain personal property instruments.-With respect to persons and institutions other than those referred to in paragraph (n) above, insurance against loss resulting from failure to file or record written instruments affecting the title of or creating a lien upon personal property.

(p) Miscellaneous.-When first approved by the commissioner as not being contrary to law or public policy nor covered by any other kind of insurance as defined in the code, insurance against liability for any other kind of loss or damage to person or property, properly a subject of insurance and not within any other kind of insurance as defined in this code.

(2) Provision of medical, hospital, surgical, and funeral benefitS, and of coverage against accidental death or injury, as part of other insurance as stated under paragraphs (a) (vehicle), (b) (liability), (d) (burglary and theft), (g), (boiler and machinery), or (I) (elevator) of subsection (1) shall for all purposes be deemed to be the same kind of insurance to which it is so incidental, and shall not be subject to provisions of this code applicable to life or disability insurances.

Hlstory.-§103, ch. 119-205. Note.-Blm11ar provisions found In former 11630.01, 832.08,

642.09.

624.0405 Surety insurance defined.-Surety insurance includes:

(1) Fidelity insurance, which is insurance guaranteeing the fidelity of persons holding positions of public or private trust.

(2) Insurance guaranteeing the performance of contracts, other than insurance policies, and guaranteeing and executing bonds, undertakings, and contracts of suretyship.

(3) Insurance indemnifying banks, bankers, brokers, financial or moneyed corporations or .associationsagainst check alteration and forg'ery, and against loss, resulting from any cause, of bills of exchange, notes, bonds, securities, evidences of debt, deeds, mortgages, warehouse It'eceipts or other valuable papers, documents, lnoney, precious metals and articles made theret rom, jewelry, watches, necklaces, bracelets, trems, precious and semiprecious stones, including any loss while the same are being transported in armored motor vehicles, or by messenger, but

not including any other risks of transportation or navigation; also insurance against loss or damage to suchan insured's premises or to his furniture, furnishings, fixtures, equipment, safes, and vaults therein, caused by burglary, robbery, theft, vandalism or malicious mischief, or any attempt thereat.

Hlstor7.-§ 104, ch. 69-205. Note.-Blm11ar provlsloDS found In former 1630.01.

624.0406 Marine, wet marine and transportation insurance defined.-

(1) "Marine insurance" includes: (a) Insurance against any kinds of loss or

damage to: 1. Vessels, craft, aircraft, cars, automobiles

and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit, or transportation, including w.ar risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed or similarly prepared for shipment or while awaiting the same or during any delays, storage transshipment, or reshipment incident thereto: including marine builder's risks and all personal property floater risks, and

2. Person or to property in connection ~ith or appertaining to a marine, inland manne, transit or transportation insurance, including liability for loss of or damage to either, arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of such insurance (but not including life insurance or surety bonds nor insurance against loss by reason of bodily injury to the person arising out of the ownership, maintenance or use of automobiles), and

3. Precious stones, jewels, jewelry, gold, silver and other precious metals, whether used in business or trade or otherwise and whether the same be in course of transportation or otherwise, and

4. Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion are the only hazards to be covered; piers, wharves, docks and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion; other aids to navigation and transportation, including dry docks and marine railways, against all risks.

(b) "Marine protection and indemnity insurance," meaning insurance against, or against legal liability of the insured for, loss, damage or expense arising out of, or incident to, the ownership, operation, chartering, maintenance, use, repair or construction of any vessel, craft


or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to the property of another person.

(2) For the purposes of this code, "wet marine and transportation" insurance is that part of "marine" insurance which includes only:

(a) Insurance upon vessels, crafts, hulls and of interests therein or with relation thereto;

(b) Insurance of marine builders' risks, marine war risks and contracts of marine protection and indemnity insurance;

(c) Insurance of freights and disbursements pertaining to a subject of insurance coming within this definition; and

(d) Insurance of personal property and interests therein, in course of exportation from or importation into any country, or in course of transportation coastwise or on inland waters, including transportation by land, water or air from point of origin to final destination, in respect to, appertaining to or in connection with, any and all risks or perils of navigation, transit or tranportation, and while being prepared for and while awaiting shipment, and during any delays, storage, transshipment or reshipment incident thereto.

mstory.-§I05. ch. 59-20~. Note.-8tmUar provisions found In former 5629.02.

624.0407 Title insurance defined.-Title insurance is insurance of owners of property or others having an interest therein, or liens or encumbrances thereon, against loss by encumbrance, or defective titles, or invalidity, or adverse claim to title.

mstory.-§I08. ch. 59-205.

624.0408 Limit of rislL-(1) No insurer shall retain any risk on any

one subject of insurance, either as the direct insurer or the reinsurer, whether located or to be performed in this state or elsewhere, in an amount exceeding ten per cent of its surplus to policyholders, except as provided in subsection (5) of this section.

(2) A "subject of insurance" for the purposes of this section, as to insurance against fire and hazards other than windstorm, earthquake, or other catastrophic hazards, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or the same occurrence of such other hazard insured against.

(3) Reinsurance ceded as authorized by §624.0409 shall be deducted in determining risk retained. As to surety risks, deduction shall also be made of the amount assumed by any established incorporated co-surety and the value of any security deposited, pledged, or held subject to the surety's consent and for the surety's protection.

(4) As to alien insurers, other than in sur-

ers domiciled in Canada, this section shall relate only to risks and surplus to policyholders of the insurer's United States branch.

(5) As to fire insurance covering risks adequately protected by automatic sprinklers or risks principally of noncombustible construction and occupancy, the insurer may retain risk as to anyone such subject of insurance in an amount not exceeding twenty-five per cent of the sum of its unearned premium reserve applicable to property insurance policies, and its surplus to policyholders.

(6) "Surplus to policyholders" for the purposes of this section, in addition to the insurer's capital and surplus shall be deemed to include any voluntary reserves which are not required pursuant to law, and shall be detemlined from the last sworn statement of the insurer on file with the commissioner, or by the last report of examination of the insurer, whichever is the more recent at time of assumption of risk.

(7) This section shall not apply to life insurance, disability insurance, annuity contracts, title insurance, insurance of wet marine and transportation insurance risks, workmen's compensation insurance, employers' liability coverages, nor to any policy or type of coverage as to which the maximum possible loss to the insurer is not readily ascertainable on issuance of the policy.

(8) Limits of risk as to newly formed domestic mutual insurers is provided in §628.161.

Histor:r.-§ 107. ch. 59-205. Note.-8lmllar provisions found In former §§628.05. 631.17.

624.0409 Reinsurance.-(1) An insurer may accept reinsurance only

of such risks, and retain risk thereon within such limits, as it is otherwise authorized to insure.

(2) An insurer may reinsure all or any part of any particular risk with an insurer authorized to transact insurance in this state or approved or accepted by the commissioner for the purpose of such reinsurance. The commissioner shall not so approve any proposed reinsurance which he finds would be contrary to the proper interests of the policyholders or stockholders of a ceding domestic insurer, or which is in violation of §624.0203 (5) ("fronting company") .

This subsection shall not apply as to retrocessions of insurance by an assuming insurer which handles a substantial volume of reinsurance, unless such retrocessions are found by the commissioner, after hearing, to be for the purpose of evasion of other requirements or prohibitions of this code.

(3) No credit shall be allowed, as an asset or as a deduction from liability, to any ceding insurer for reinsurance unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contracts reinsured without diminution because of the insolvency of the ceding insurer.

Ch.624 INSURANCE CODE; ADMINISTRATION AND GENERAL PROVISIONS Ch.624

(4) Upon request of the commissioner, a ceding insurer shall promptly inform the commissioner in writing of the cancellation or any other material change of any of its reinsurance treaties or arrangements.

(5) No authorized insurer shall knowingly accept as assuming reinsurer any risk covering a subject of insurance resident, located or to be performed in Florida and written direct

by any insurer not then authorized to transact such insurance in this state, other than as to surplus line insurance lawfully written under part VI of chapter 626.

(6) This section does not apply to title insurance or to wet marine and transportation insurance.

IDstory.-§l08. ch. 69-208. Note.-Blmllar provIsIons found In former 11626.10. 627.0107,

1131.11, 131.17, 132.08.

Ch.625 INSURANCE CODE~ :ACCOUNTING, INVESTMENTS :AND DEPOSITS Ch.625

CHAPTER 62~

lNSUR,AliCE CODE; ACCOUNTING, INVESTMENTS :AND D~WOSITS PART: I ASSETS AND LIABILITIJj::s'

;PART IT INVESTMENTS:

PART III ADMINISTRATIO~.oE DE~OSITS ;PART I

ASSET~ AND LIABILITIES

625.012 iAssets defined. 625.021 Assets as deductions from liabilities. 625.031 Assets not allowed. 625.041 Li1abilities, in general. 625.051 Unearned premium reserve. 625.061, Unearned premium reserve for marine

. I3nd transportation insurance. 625.071 Special reserve for bail and judicial

bonds. 625.081 Reserve for disability insurance. 625.091, Loss reserves, liability insur.ance and

:workmen's compensation.

625.012 :Assets defined.-In any determination of the financial condition of an insurer, there shall be allowed as assets only such assets as are owned by the insurer and which consist of:

(1) Cash in tlie possession of the insurer, or in transit under its control, and including the true balance of any deposit in a solvent bank or trust company.

(2) Investments, securities, properties and loans acquired or held in accordance with this code, and in connection therewith the following items:

(a) Interest due or accrued on any 60nd or evidence of indebtedness which is not in default and which is not valued on a basis including accrued interest.

(b) Declared and unpaid dividends on stoele and shares, unless such amount has otherwise been allowed as an asset.

(c) Interest due or accrued upon a collateral loan in an amount not to exceed one year's interest thereon.

(d) Interest due or accrued on deposits in solvent banks and trust companies, and interest due or accrued on other assets, if such interest is in the judgment of the commissioner a collectible asset.

(e) Interest (fue or accrued on a mortgage loan, in an amount not exceeding in any event the amount, if any, of the excess of the value of the property less delinquent taxes thereon over the unpaid principal; but in no event shall interest accrued for a period in excess of eighteen months be allowed as an asset.

(f) Rent due or accrued on real property ii such rent is not in arrears for more than three months, and rent more than three months in arrears if the payment of such rent be adequately secured by property held in the name of the tenant and conveyed to the insurer as collateral.

(g) The unaccrue(f portion of taxes paid prior to the due date on real property.

625.101: 625.111 625.121

,625.131,

625.141' 625.151 625.161 625,.171

Increase Of dn:adequate loss reserves. Title insurance reserve. Standard valuation law;: life insur

ance. ,Credit life and disability policies,

special reserve bases. " Valuation of bonds. Valuation of other securities. Valuation of property. Yaluation of purchase money mort

gages.

'(3)' Premium notes, policy loans, and otlier policy assets and liens on policies and certificates of life insurance and annuity contracts and accrued interest thereon, ' in an amount not exceeding the legal reserve and other policy liabilities carried on each individual policy.

(4) The net amount of uncollected and deferred premiums and annuity considerations in the case of a life insurer.

(5) Premiums in the course of collection, other than for life insurance, not more than three months past due, less commissions payable thereon. The foregoing limitation shall not apply to premiums payable directly or indirectly by the United States government or by any of its instrumentalities.

(6) Installment premiums other tlian life insurance premiums to the extent of the unearned premium reserve carried on the policy to which such premiums apply.

(7) Notes and like written obligations not past due, taken for premiums other than life insurance premiums, on policies permitted to be issued on such basis, to the extent of the unearned premium reserves carried thereon.

(8) The full amount of reinsurance recoverable by a ceding insurer from a solvent reinsurer and which reinsurance is authorized under §624.0409.

(9) Amounts receivable 6y an assuming insurer representing funds withheld by a solvent ceding insurer under a reinsurance treaty.

(10) Deposits or equities recoverable from underwriting associations, syndicates and reinsurance funds, or from any suspended banking institution, to the extent deemed by the commissioner available for the payment of losses and claims and at values to be determined by him.

(11) Electronie and meclianical machines constituting a data processing and accounting system if the cost of such system is at least twenty-five thousand dollars, which cost shall

ch. 618 agricultural cooperative marketing ......ch. 618 agricultural cooperative marketing...

Documents