ch. 625 insurance code; accounting, investments and ... · ch. 625 insurance code; accounting,...

Ch. 625 INSURANCE CODE; ACCOUNTING, INVESTMENTS AND DEPOSITS Ch. 625

warrants or other securities, within five years prior to the date of investment therein.

History.-§ 136, ch. 59-205. Note.-slmUar provisions found In former §635.27.

625.0111 Public utility obligations.-An insurer may invest in the bonds, notes, certificates of indebtedness, warrants or other evidence of indebtedness which are valid obligations issued, assumed or guaranteed by the United States or any state thereof or by any county, municipal corporation, district, or political subdivision, or civil division or public instrumentality of any such government or unit thereof, if by statute or other legal requirements such obligations are payable as to both principal and interest from revenues or earnings from the whole or any part of any utility supplying water, gas, sewage disposal facility or electricity or any other public service, including but not limited to toll roads and toll bridges.

History.-§ 137, ch. 59-205. Note.-s!mUa.r provisions found In former §626.25.

625.0112 Securities of certain federal agencies.-An insurer may invest in bonds, debentures or other securities of the following agencies of the government of the United States, whether or not such obligations are guaranteed by such government:

(1) Commodity credit corporation. (2) Federal national mortgage association,

and stock thereof when acquired in connection with sale of mortgage loans to such association.

(3) Federal land banks, issued under provisions of the act of congress entitled the "federal farm loan act" and approved July 17, 1916, and any acts amendatory or supplementary to that act.

( 4) Any federal home loan bank, issued under provisions of the act of congress entitled "federal home loan bank act" and approved July 22, 1932.

(5) The home owners' loan corporation, created by the act of congress entitled "home owners' loan act of 1933," and approved June 13, 1933.

(6) Federal intermediate credit banks, created by the act of congress entitled "agricultural credits act of March 4, 1923."

(7) Central bank for cooperatives and regional banks for cooperatives organized under the farm credit act of 1933, or by any of such banks.

(8) Any other similar agency of the government of the United States and of similar financial quality.

Bistory.-§138, ch. 59-205. Note.-simlla.r provisions found In former §635.27.

by any public housing authority or agency in the United States, if such bonds, debentures, or other securities are secured by a pledge of annual contributions to be paid by the United States or any agency thereof. ·

Bistory.-§139, ch. 59-205. Note.-slmUa.r provisions found In former §635.27.

625.0114 Obligations of state board of education.-An insurer may invest in bonds or motor vehicle anticipation certificates issued by the state board of education of Florida under authority of §18, Art. XII of the constitution of the state.

Bistory.-§140, ch. 59-205. Note.-s!mUa.r provisions found In former §635.27.

625.0115 International bank. -An insurer may invest in obligations issued, assumed or guaranteed by the international bank for reconstruction and development.

History.-§ 141, ch. 59-205. Note.-slmUa.r provisions found In former §635.27.

625.0116 Corporate bonds and debentures. -An insurer may invest in bonds, notes, or other interest bearing or interest accruing obligations of any solvent corporation organized under the laws of the United States or of Canada, or under the laws of any state, District of Columbia, territory or possession of the United States or of any province of Canada.

Bistory.-§142, ch. 59-205. Note.-s!mUa.r provisions found In former § 635.27.

625.0117 Religious institution obligations.An insurer may invest in secured or unsecured obligations of duly constituted churches and of church holding companies.

Blstory.-§143, ch. 59-205. Note.-simUa.r provisions found In former §635.27.

625.0118 Equipment trust certificates.-An insurer may invest in equipment trust obligations or certificates adequately secured and evidencing an interest in transportation equipment, wholly or in part within the United States, and the right to receive determined portions of rental, purchase, or other fixed obligatory payments for the use or purchase of such transportation equipment.

Blstory.-§144, ch. 59-205, Note.-s!mUar provisions found In former §635.27.

625.0119 Building and loan, savings and loan.-To the extent that such an investment or account is insured by the federal savings and loan insurance corporation, an insurer may invest in share or saving accounts of savings and loan associations or building and loan associations.

Bistory.-§145, ch. 69-205. Note.-slmllar provisions found In former §§626.25, 635.27.

625.0113 Public housing obligations.- An 625.0120 Policy loans.-A life insurer may insurer may invest in the bonds, debentures or lend to its policyholder upon pledge of the other securities of public housing authorities, policy as collateral security, any sum not exissued under the provisions of the act of con- ceeding the cash loan value of the policy; or gress entitled the "housing act of 1949" and ap- may lend against pledge or assignment of any proved July, 1949; the municipal housing com- of its supplementary contracts or other conmission act or the "rural housing commission tracts or obligations, so long as the loan is act," and any additional amendments, or issued adequately secured by such pledge or assign-

8101


ment. Loans so made are eligible investments of the insurer.

Hlstory.-§146, ch. 59-205. Note.-Simllar provisions found 1n former §635.27.

625.0121 Collateral loans.-An insurer may invest in loans with a maturity not in excess of five years from the date thereof which are secured by pledge of securities eligible for investment under this chapter, or by the pledge or assignment of life insurance policies issued by other insurers authorized to transact insurance in this state. On the date made, no such loan shall exceed in amount eighty per cent of the market value of the collateral pledged, except that loans upon pledge of United States government bonds and loans upon the pledge or assignment of life insurance policies shall not exceed ninety-five per cent of the market value of the bonds or the cash surrender value of the policies pledged.

Hlstory.-§147, ch . 59-205. Note.-Simllar provisions found 1n former §635.27.

625.0122 Ship loans.-An insurer may invest in:

(1) Bonds, notes or other evidences of indebtedness which are secured by mortgages on barges, tugboats, ships or other shipping vessels if payment of such indebtedness or part thereof is insured by the secretary of commerce under the terms of the federal ship mortgage insurance act, as amended.

(2) Bonds, notes or other evidences of indebtedness which are secured by mortgages on barges, tugboats, ships or other shipping vessels which are under lease or charter party to a solvent institution whose fixed interest obligations, if any, would be eligible investments under §625.0116 (corporate obligations), and if such lease or charter party is assigned as additional security for such bonds, notes or other evidences of indebtedness.

Wstor:r.-§148, ch. 59-205.

625.0123 Corporate stocks.-An insurer may invest in dividend-paying stocks, common or preferred, of any corporation create<> or existing under the laws of the United States or of any state.

History.-§ 149, ch. 59-205.

pose of owning and operating electronic and similar data processing equipment and facilities.

(2) All of the insurer's investments under this section, together with its investment in other insurance stocks under §625.0123, shall not at any time exceed the amount of the investing insurer's surplus in excess of its surplus required to be maintained, if a life insurer, or its surplus to policyholders, if other than a life insurer.

Wstory.-§150, ch. 59-205; §1, ch. 65-17.

625.0125 Foreign investments.-An insurer authorized to transact insurance in a foreign country may have funds invested in such securities as may be required for such authority and for the transaction of such business. Canadian securities eligible for investment under other provisions of part II of this chapter are not subject to this section.

History.-§ 151, ch. 59-205, Note.-.i:llmllar provisions found 1n former §635.27.

625.0126 Mortgage loans.-(1) An insurer may invest any of its funds

in bonds, notes or other evidences of indebtedness which are secured by first mortgages or deeds ?f trust u_pon improved real property located m the Umted States or Canada, or which are secured by first mortgages or deeds of trust upon leasehold estates having an unexpired term of not less than forty years (inclusive of the term or terms which may be provided by enforceable options of renewal) in improved real property located in the United States or Canada. In all cases the security for the loan must be a first lien upon such real property, and there must not be any condition or right of re-entry or forfeiture not insured against under which, in the case of real property othe; than leaseholds, such lien can be cut off or subordinated or otherwise disturbed or under which, in the case of leaseholds, the insurer is unable to continue the lease in force for the duration of the loan. Nothing herein shall prohibit any investment by reason of the existence of any prior lien for ground rents, taxes, assessments or other similar charges not yet delinquent. This section shall not be deemed to prohibit investment in mortgages or similar obligations when made under §625.0125 (foreign investments).

(2) "Improved real estate" means a11 farm 625.0124 Stocks of subsidiaries.- lands used for tillage, crop or pasture, timber( I) With the commissioner's consent an in- lands, and all real estate on which perma-

surer may invest in the stock of: nent improvements, and improvements under

Note.-Simllar provisions found 1n former §635.27.

(a) Its substantially wholly-owned subsid- construction or in process of construction, suit-iary insurer corporation. able for residence, institutional, commercial

(b) Its substantially wholly-owned, or sub- or industrial use are situated. stantially wholly-owned in conjunction with (3) No such mortgage loan or loans made or one or more other insurers, subsidiary cor- acquired by an insurer on any one property poration formed and operated solely for the shall, at the time of investment by the insurer purpose of owning and operating home office exceed the larger of the following amounts a~ and regional home office buildings and facili- applicable: ties. (a) Eighty per cent of the value of the real

(c) Its substantially wholly-owned, or sub- property or leasehold securing the same in the stantially wholly-owned in conjunction with case of mortgages on dwellings primarily inone or more other insurers, subsidiary corpo- tended for occupancy by not more than two ration formed and operated solely for the pur- families, or seventy-five per cent of such value

3102


in the case of other real estate mortgages; or (b) The amount of any insurance or guar

anty of such loan by the United States or by any agency or instrumentality thereof; or

(c) The percentage of value limit to amount of the loan as applicable under paragraph (a) of this subsection, plus the amount by which the excess of such loan over such percentage of value limit is insured or guaranteed by the United States or by any agency or instrumentality thereof.

(4) Except, that in the case of a purchase money mortgage given to secure the purchase price of real estate sold by the insurer, the amount so loaned or invested shall not exceed the unpaid portion of the purchase price.

History.-§152, ch. 59-205; (3) (a) §2, ch. 65-17.

63~~~~--l:llmilar provisions tound In former §§625.16, 628.04,

625.0127 Same; renewal or extension.Nothing in §625.0126 or in part II of this chapter shall be deemed to prohibit an insurer from renewing or extending a loan for the original or a lesser amount where a shrinkage in value of the real estate securing the loan would cause its value to be less than the amount otherwise required in relation to the amount of the loan.

Hlstor;r.-§ 153, ch. 59-205.

625.0128 Chattel mortgages.-(!) In. connection with a mortgage loan on

the secunty of real estate designed and used primarily for residential purposes only which mortgage_ loan was acquired pursuant t~ §625.-0126, an msurer may lend or invest an amount not exceeding twenty per cent of the amount loaned on or invested in such real estate mortgage on t?e security of a chattel mortgage to be amortized by regular periodic payments within a ~erm of not more than five years, and representmg a first and prior lien except for taxes not then delinquent, on perso~al property constituting durable equipment owned by the mortgagor and kept and used in the mortgaged premises.

(2) For the purposes of this section the term "~urable equipment" shall include 'only mec.hamcal refnge.rators, air r.onditioning eqUipment, mechamcal laundering machines heating and cooking stoves and ranges and i~ addition, in the case of apartment ho~ses ~nd hotels, room furniture and furnishings.

(3) Prior to the acquisition of a chattel mortgage hereunder, items of property to be included. therein sh_all be separately appraised by a qualified appraiser and the fair market value thereof determined. No such chattel mortgage loan shall exceed in amount the same ratio of loan to the value of the property as is applicable to the companion loan on the real property.

( 4) This section shall not prohibit an insurer from taking liens on personal property as additional security for any investment otherwise eligible under part II of this chapter.

mstor;r.-§154, ch. 59-205.

625.0129 Special investments by title insurer.-

(1) In addition to other investments eligible under part II of this chapter, a title insurer may invest and have invested an amount not exceeding fifty per cent of its paid-in capital stock in its abstract plant and equipment, loans secured by mortgages on abstract plants and equipment, and, with the commissioner's consent, in stocks of abstract companies. If the insurer transacts kinds of insurance in addition to title insurance, for the purposes of this section its paid-in capital stock shall be pro rated between title insurance and such other insurances upon the basis of the reserves maintained by the insurer for the various kinds of insurance; but the capital so assigned to title insurance shall in no event be less than one hundred thousand dollars.

(2) Subsection (1) of this section, shall not apply to a business trust insurer. Such an insurer may invest and have invested not exceeding fifty per cent of its net trust fund in excess of the reserve provided for under §625.111 in abstract plants, stock in abstract companies or corporations controlled by the business trust and created for developing and servicing abstract plants.

(3) Investments authorized by this section shall not be credited against the insurer's required unearned premium or guaranty fund reserve provided for under §625.111.

mstor,..-§ 155, ch. 59-205.

625.0130 Special consent investments.-After satisfying requirements of part II of this chapter any funds of any domestic insurer in excess of its reserves and capital (if a stock insurer) or surplus required to be maintained (if a mutual or reciprocal insurer) may be invested without limitation in any investments otherwise authorized by this code, and, in addition, in such other investments as may be approved by the commissioner.

History.-§ 156, ch. 59-205. Note.-slmllar provisions found In former §§835.27, 835.31.

625.0131 Prohibited investments and investment underwriting.-

(!) In addition to investments excluded pursuant to other provisions of this code, an insurer shall not directly or indirectly invest in or lend its funds upon the security of:

(a) Issued shares of its own capital stock, except for the purpose of mutualization under §628.431, or in connection with a plan approved by the commissioner for purchase of such shares by the insurer's officers, employees or agents. No such stock shall, however, constitute an asset of the insurer in any determination of its financial condition.

(b) Except with the consent of the commissioner, securities issued by any corporation or enterprise the controlling interest of which is, or will after such acquisition by the insurer be, held directly or indirectly by the insurer or any combination of the insurer and the insurer's directors, officers, parent corpora-

3103


tion, subsidiaries, or controlling stockholders. Investments in subsidiaries under §625.0124 shall not be subject to this provision.

(c) Any note or other evidence of indebtedness of any director, officer, or controlling stockholder of the insurer, exce}')t as to policy loans authorized under §625.0120.

(2) No insurer shall underwrite or participate in the underwriting of an offering of securities or property by any other person.

Wstory.-§157, ch. 59-205. Note.-slmUar provisions found In former §635.29.

625.0132 Real estate, in general.-(!) An insurer shall not directly or in

directly acquire or hold real estate except as authorized in this section and in §§625.0133 through 625.0135. An insurer may acquire and hold:

(a) Such land and buildings thereon used or acquired for use as its principal home office and branch offices for the convenient transaction of its own business.

(b) Real property acquired in satisfaction in whole or in part of loans, mortgages, liens, judgments, decrees or debts previously owing to the insurer, in the course of its business.

(c) Real property acquired in part payment of the consideration on the sale of other real property owned by it, if such transaction effects a net reduction in the insurer's investment in real estate.

(d) Real property acquired by gift or devise, or through merger, consolidation, or bulk reinsurance of another insurer under this code.

(e) Additional real property and equipment incident to real property, if necessary or convenient for the enhancement of the marketability or sale value of real nronertv nreviously acquired or held by it under paragraphs (b) through (d), of this subsection, but subject to the prior written approval of the commissioner.

(2) The amount invested by an insurer in home office and branch office property under subsection (1) (a), shall not exceed ten per cent of the insurer's admitted assets, but the commissioner may grant permission to the insurer to invest in real property for such purpose in such increased amount as he may deem proper upon a hearing held by him thereon.

History.-§ 158, ch. 59-205. Note.-slmllar provisions found In former §635.28.

625.0133 Real estate for leasing.-(1) An insurer may acquire and hold real

property for the purpose of leasing the same to any person, firm or corporation, or real property already leased, under the following conditions :

(a) There has already been erected on the property a building or other improvements satisfactory to the purchaser; or

(b) The lessee shall at its own cost erect thereon, free of liens, a building or other im-· provements satisfactory to the lessor; or

(c) The lessor under the terms and conditions of a lease for a period of not less than

twenty-five years from date of lease executed and entered into simultaneously with the purchase of the property agrees to erect a building or other improvements on the property;

(d) The improvements shall remain on the property during the period of the lease, and in cases where the improvements are put upon the property at the cost of the lessee title to the improvements at the termination of the lease shall vest, free of liens, in the owner of the real estate;

(e) During the term of the lease the tenant shall keep and maintain the improvements in good repair.

(2) Real property acquired pursuant to this section shall' not be treated as an admitted asset unless and until the improvements herein required shall have been constructed and the lease agreement entered into in accordance with the terms of subsection (1) ; nor shall real estate acquired pursuant to this section be treated as an admitted asset in an amount exceeding the amount actually invested reduced each year by equal decrements sufficient to write off at least seventy-five per cent of the value of the buildings or other improvements on the property at the normal termination of the lease or at the end of thirty years should the term of the lease be for a longer period.

History.-§159, ch. 59-205; §3, cb. 65-17. Note.-slmllar provisions found In former §635.28.

625.0134 Real estate for employee facilities. --subject to prior approval of the commissioner, an insurer may acquire and hold real property for recreation, hospitalization, convalescence and retirement purposes of its employees. All investments under this section shall not exceed five per cent of the insurer's surplus; or if a mutual or reciprocal insurer, all such investments shall not exceed five per cent of the insurer's surplus in excess of the surplus required to be maintained under this code for its authority to transact insurance.

Hlstory.-§160, ch. 59-205. Note.-slmUar provisions found In former §635.28.

625.0135 Real estate; limits of investments.-No investment in real property shall be made by any insurer pursuant to §625.0,133, (real estate for leasing) or §625.0134, (real estate for employee facilities) which will cause the insurer's investment in an real property owned or held by it directly or indirectly to exceed ten per cent of its assets, except as may be authorized under the provisions of §625.0132 (2).

Hlstory.-§161, ch. 59-205 ; §4, ch. 65-17. Note.-8lmllar provisions found 1n former § 635.28.

625.0136 Time limit for disposal of real estate.-

(!) Except as provided in subsection (4), an insurer shall dispose of real property within time limits as follows:

(a) If acquired under §625.0132 (1) (a) (home office and branch office property) or §625:0134 (real estate for employee facilities), the msurer shall sell the property within five

3104


years after it ceased to be used or to be neces-sary for the purposes stated therein. .

(b) If acquired under paragra;phs (b) (m satisfaction of debts, etc.), (c) (m part P~Yment on other real estate sold), or (d) (by gi.ft, devise merger etc.) of §625.0132 (1), the msurer ~hall seli the property within five years after the insurer acquired title thereto.

(c) If acquired under §625.0132 (1) (e) (for enhancement of other property), the msurer shall sell the property within five years after the date of acquisition by the insurer of the real property the marketability or sales price of which was so enhanced.

(d) If acquired under §625.0133 (for leasing) the insurer shall within five years after the termination or expiration of the lease, sell the property or re-lease the propet:~ for an additional term under the same conditiOn~ :provided for in §625.0133 as for an origmal leasing. . .

(2) Any real property otherwise subJect to disposal under paragraphs (b~ through (~), of subsection (1), may be retamed by the msurer for home office or branch office purposes for so long as so used, and subject to provisions otherwise applicable to such home office and branch office property.

(3) Any real property otherwise subject to disposal under paragraphs (a), (b), or (c), above, may be retained by the insurer for leasing under §625.0133 for so long as so used, and subject to provisions otherwise applicable to such real property for leasing.

( 4) Upon proof satisfactory to him that the interests of the insurer will suffer _materially by the forced sale thereof, the commissione~ may by certificate grant a reasonable additional period, as specified in the certificate, within which the insurer shall dispose of any particular parcel of real property.

(5) Nothing contained in this section shall prevent any insurer from improving or conveying its real property, notwithstanding the lapse of five years without having procured

such certificate from the commissioner. mstory.-§162, ch. 59-205. Note.-81m1lar provisions found In former 1§635.28, 635.33.

625.0137 Time limit for disposal of other ineligible property and securities.-Any personal property or securities lawfully acquired by an insurer which it could not otherwise have invested in or loaned its funds upon at the time of such acquisition, shall be disposed of within three years from date of acquisition unless within such period the security has attained to the standard of eligibility; except, that any security or personal property acquired under any agreement of bulk reinsurance, merger or consolidation, may be retained for a longer period if so provided in the plan for such reinsurance, merger, or consolidation as approved by the commissioner under chapter 628 of this code. Upon application by the insurer and proof that forced sale of any such property or security would materially injure the interests of the insurer, the commissioner may extend the disposal period for an additional reasonable time.

Wstory .-§ 163, ch. 59-205, Note.-slmllar provisions found In former §635.33.

625.0138 Failure to dispose of real estate, property, or securities; effect, penalty.-Any real estate, personal property, or securities lawfully acquired and held by an insurer after expiration of the period for disposal thereof or any extension of such period granted by the commissioner, as provided in §§625.0136 or 625.0137, shall not be allowed as an asset of the insurer.

mstory.-§164, ch. 69-205. Note.-81mllar provisions found In former §635.33.

625.0139 Investments of foreign insurers.The investment portfolio of a foreign or alien insurer shall be as permitted by the laws of its domicile if of a quality substantially as high as that required under this chapter for similar funds of like domestic insurers.

mstory.-§165, ch. 69-206. Note.-81m1lar provisions found In former §626.05,

PART III

ADMINISTRATION OF DEPOSITS

625.0200 Auth()rized deposits of insurers. 625.0201 Purpose of deposit. 625.0202 Securities eligible for deposit. 625.0203 Depositary. 625.0204 Outside deposit by surety insurer. 625.0205 Custodial arrangements. 625.0206 Assignment, convey•ance of assets or

securities.

625.0200 Authorized deposits of insurers.The following deposits of insurers when made through the commissioner shall be accepted and held, and shall be subject to the provisions of this chapter:

(1) Deposits required under this code for authority to transact insurance in this state.

625.0207 Appraisal. 625.0208 Excess deposits. 625.0209 Rights of insurer during solvency. 625.0210 Levy upon deposit. 625.0211 Deficiency of deposit. 625.0212 Duration and release of deposit. _625.0213 Proofs for release of deposit.

(2) Deposits of domestic insurers when made pursuant to the laws of other states, provinces and countries as requirement for authority to transact insurance in such state, province or country.

(3) Deposits of reserves made by domestic life insurers under §627.0226 (registered policies).

8105


(4) Deposits in such additional amounts as are permitted to be made under §625.0208.

HlstorJ.-§ 166, ch. 59-205. No~e.-Slmllar provision& found 1n former 1§635.11, 635.14.

625.0201 Purpose of deposit.-such deposits shall be held for purposes as follows:

(1) Deposits made in this state under §§624.0210 (deposit requirement, domestic and foreign insurers) and 624.0211 (deposit of alien insurers) shall be held for the purposes stated in the respective sections.

(2) A deposit made in this state by a domestic insurer transacting insurance in another state, province or country, and as required by the laws of such state, province or country, shall be held for the protection of the insurer's policyholder or policyholders and creditors.

(3) Deposits of reserves made by domestic life insurers under §627.0226 (registered policies) shall be held for the common benefit 'of all the holders of its life insurance policies or annuity contracts.

(4) Deposits required pursuant to the retaliatory provision, §624.0228, shall be held for such purposes as are required by such law, and as specified by the commissioner's order by which the deposit is required.

HlstorJ.-§ 167, ch. 59-205. Note.-81mllar provisions found 1n former §§626.25, 631.08,

635.11, 648.02.

625.0202 Securities eligible for deposit.(1) All such deposits required under §§624.-

0210 and 624.0211 for authority to transact insurance in this state shall consist of certificates of deposit issued by solvent banks, or any combination of securities the market value of which is readily ascertainable and, if negotiable by delivery or assignment, of the kinds described in the following sections of this code:

(a) Section 625.0106 (United States government obligations) ;

(b) Section 625.0108 (state and Canadian public obligations);

(c) Section 625.0109 (county, municipal and district obligations) ;

(d) Section 625.0110 (public improvement bonds);

(e) Section 625.0111 (public utility obligations);

(f) Section 625.0112 (securities of certain federal agencies) ;

(g) Section 625.0113 (public housing obligations) ;

(h) Section 625.0115 (international bank); (i) Section 625.0116 (corporate bonds and

debentures); (j) Section 625.0118 (equipment trust cer

tificates) ; and (k) Section 625.0119 (building and loan,

savings and loan). (2) All such deposits required of a domes

tic insurer pursuant to the laws of another state, province or country shall be comprised of securities, if negotiable by delivery or assignment, of the kind or kinds required or permitted by the laws of such state, province or

country, except common stocks, mortgages of any kind and real estate.

(3) Deposits of the reserves of a domestic life insurer under §627.0226 (registered policies) shall consist of securities, if negotiable by delivery or assignment, and assets eligible for investment of the insurer's reserves under part II of chapter 625, as stated in §625.0104.

(4) Deposits of foreign insurers made in this state under the retaliatory provision, §624.0228, shall consist of such securities or assets as are required by the commissioner pursuant to such provision.

Blstor;,..-§168, ch. 59-205. Note.-81mllar provisions found 1n former 1§626.25, 635.11,

635.12, 648.02, 648.17.

625.0203 Depositary.-(!) Except as provided in §§625.0204 or

625.0205 all deposits made in this state under this code shall be made with the commissioner. The commissioner in his official capacity shall take, receipt for and hold in trust deposits made under this code for the purpose or purposes for which the respective deposits were so made, subject to the provisions of part III of this chapter.

(2) The commissioner shall hold all such deposits in safekeeping in the vaults located in the offices of the state treasurer.

(3) Securities or other assets deposited with or through the commissioner under part III of this chapter by foreign or alien insurer shall not, on account of such securities or assets thus being in this state, be subject to taxation.

(4) The state shall be responsible for the safekeeping of all securities or other assets deposited with the commissioner under this code.

Hlstory.-U69, ch. 59-205. Note.-slmllar provisions found 1n former 1§631.06, 635.11,

635.15, 648.02.

625.0204 Outside deposit by surety insur-er.- -

(1) In lieu of a deposit of securities with the commissioner as required under §624.0210, a surety insurer may deposit a like amount in cash with the trust department of a national or state bank of Florida, to be approved for that purpose by the commissioner, in the name of the commissioner and for the same purposes as required for the deposit, and for which the commissioner shall give the insurer a receipt.

(2) During the insurer's solvency it shall be entitled to receive the interest on the deposit and the deposit shall be otherwise subject t~ withdrawal and to other conditions and requirements as apply to deposits of securities with the commissioner under part III of this chapter.

History.-§ 170, r.h. 59-205. Note.-slmllar provisions found In former §648.17.

625.0205 Custodial arrangements.-(!) In lieu of a deposit being made with

him in fact, the commissioner in his discretion may, upon written request of the insurer and where of greater convenience to the insurer permit such deposit to be made with and held

3106


by the trust department of a national or state bank of Florida approved by the commissioner for the purpose, and under custodial arrangements likewise approved by him.

(2) All such custodial arrangements shall comply in substance with the requirements of this code as to like deposits with the commissioner of other insurers, as to the amount, purposes, maintenance, replenishment, release, and withdrawal of such deposit or part thereof, as to the rights of the insurer therein, and in all other respects except as to actual custody.

(3) Where of convenience to the insurer in the buying, selling, and exchange of securities comprising the deposit of its reserves by a domestic life insurer under §627.0226 (registered policies), and in the collection of interest and other income currently accruing thereon, the insurer may, with the commissioner's written approval in advance, deposit certain of such securities under custodial arrangements with an established bank or trust company located outside this state.

(4) The form and terms of all such custodial agreements shall be as prescribed or approved by the commissioner consistent with the applicable provisions of this code.

(5) The compensation and expenses of any such custodian shall be borne by the insurer.

(6) The commissioner may at any time, in his discretion, terminate any such custodial arrangement and require the deposit represented thereby to be made with him direct as otherwise provided for under this code.

History.-§ 111, ch. 59-205.

625.0206 Assignment, conveyance of assets or securities.-

(1) The insurer shall duly assign to the commissioner and his successors in office in trust all securities being deposited with him under this code which are not negotiable by delivery; or, in lieu of such assignment, the insurer may give the commissioner Rn irrevocable power of attorney authorizing him to transfer the securities or any part thereof for any purpose within the scope of pgrt III of this chapter.

(2) In the case of securities or assets held under custodial arrangements pursuant to §625.0205. the custodian's receipt therefor shall be delivered to the commissioner in trust if negotiable, or assigned to him so that legal title to such securities or assets are vested in the commissioner and his successors in office.

(3) The insurer shall convey to the commissioner and his successors in office in trust any real estate being deposited with him under part III of this chapter in connection with deposit of the reserves of a domestic life insurer.

securities covered thereby, to the insurer or person entitled thereto.

History.-§ 172, ch. 59-205. Note.-Bimllar provisions found in former 1§631.06, 635.12,

648.02.

625.0207 Appraisal. - The commissioner may, in his discretion, prior to acceptanc .. for deposit of any particular asset or security, or at any time thereafter while so deposited, have the same appraised or valued by competent appraisers. The reasonable costs of any such appraisal or valuation shall be borne by the insurer.

Hlstory.-§173, ch. 59-205. Note.-Bimllar provisions found in former §635.12.

625.0208 Excess deposits.-(1) If securities or assets deposited by an

insurer under part III of this chapter are subject to material fluctuations in market value, the commissioner may, in his discretion, require the insurer to deposit and maintain on deposit additional securities or assets in such amount as may be reasonably necessary to assure that the deposit will at all times have a market value of not less than the amount specified under or pursuant to the law by which the deposit is required.

(2) If not so required by the commissioner', an insurer may at its option so deposit assets or securities in an amount exceeding its deposit required or otherwise permitted under this code by not more than twenty per cent of such required or permitted deposit, or twenty thousand dollars, whichever is the larger amount, for the purpose of absorbing fluctuations in the value of securities and assets deposited, and to facilitate the exchange and substitution of such securities and assets. During the solvency of the insurer any such ~xc~ss shall be released to the insurer upon its rec1uest. During the insolvency of the insurer, such excess deposit shall be released only as provided in §625.0212. History.-~ 174, ch. 59-205. Note.-similar provisions found in former §634.05.

625.0209 Rights of insurer during solvency. -So long as the insurer remains solvent and is in compliance with this code it may:

(1) Demand, receive, sue for and recover the income from the securities or assets deposited;

(2) Exchange and substitute for the deposited securities or assets, or any part thereof, other eligible securities and assets of equivalent or greater value; and

(3) At any reasonable time inspect any such deposit.

History.-§ 175, ch. 59-205. Note.-Simllar provisions found in former §§631.07, 635.12,

635.14, 648.17. (4) Upon release to the insurer, or other

person entitled thereto, of any such security 625.0210 Levy upon deposit.-No judgment or asset the commissioner shall reassign or creditor or other claimant of an insurer shall transfer or reconvey the same to such insurer have the right to levy upon any of the assets or person; or. in the case of power of attorney or securities held in this state as a deposit for J!'iven pursuant ~o subsection (1), he shall de- the protection of the insurer's policyholders liver the power of attorney, together with the or policyholders and creditors. As to deposits

3107


made pursuant to the retaliatory provision, §624.0228, levy thereupon shall be permitted if so provided in the commissio~er's order under which the deposit is required.

History.-§ 176, ch. 59-205. Note.-5imilar provisions found 1n former §§631.09, 648.10.

625.0211 Deficiency of deposit.-(1) If for any reason the market value of

assets and securities of an insurer held on deposit in this state under this code falls below the amount so required, the insurer shall promptly deposit other or additional assets or securities eligible for deposit sufficient to cure such deficiency. If the insurer has failed to cure the deficiency within thirty days after receipt of notice thereof by registered or certified mail from the commissioner, the commissioner shall revoke the insurer's certificate of authority.

(2) If for any reason. the market value of assets and securities of a domestic life insurer, representing deposit of the reserves of outstanding registered life insurance policies and registered annuity contracts under §627.0226 and laws heretofore in force, falls below the amount so required and as determined from the insurer's most recent annual statement or most recent examination of the insurer by the commissioner, the insurer shall promptly deposit other or additional assets or securities eligible for deposit sufficient to cure such deficiency. If the insurer has failed to cure the deficiency, after the commissioner has given the insurer notice thereof by registered mail, within such reasonable time, not exceeding ninety days, as may be allowed therefor by the commissioner and so specified in his notice, the insurer shall be deemed to be insolvent and the commissioner shall revoke its certificate of authority and institute delinquency proceedings against the insurer under chapter 631 of this code.

mstory.-§177, ch. 59-205. Note.-similar provisions found 1n former §648.13.

625.0212 Duration and release of deposit.(1) Every certificate of deposit filed and

every deposit made in this state by an insurer, prior to or pursuant to this code, made voluntarily or pursuant to specific requirements, including assets and securities held in another state under custodial arrangements permitted under §625.0205 (3) shall be subject to the applicable provisions of this code as amended from time to time. If the deposit is required under the retaliatory provision, §624.0228

1 the

deposit shall be held for so long as the oasis of such retaliation exists.

(2) Any such deposit, whether in the form of a certificate of deposit or otherwise, shall be released and returned:

(a) To the insurer during solvency to the extent such deposit is in excess of the amount required;

(b) To the insurer, during solvency, upon its written request, to the extent such deposit is in excess of the amount then required under this code; or,

'(c) To the insurer, during solvency, upon its written request, when such insurer has met all requirements and the commissioner is satisfied the deposit is no longer necessary.

(d) Upon proper order of a court of competent jurisdiction, to the receiver, conservator, rehabilitator, liquidator of the insurer, or to any other properly designated official or officials who succeed to the management and control of the insurer's assets.

(3) Deposits of assets representing the reserves of a domestic life insurer as to its registered life insurance policies and registered annuity contracts shall not be subject to release by reinsurance, but shall be held and maintained for the account of the assuming insurer to the extent of the required reserves under such policies and contracts.

mstory.-§178, ch. 59-205; (2) (c) r. 12, ch. 61-166; 12, ch. 63-19.

Note.-stmnar provisions found 1n former §§631.10, 635.111, 648.02, 648.17.

625.0213 Proofs for release of deposit.__. (1) Before authorizing the release of any

deposit or excess portion thereof to the insurer, as provided in §625.0212, the commissioner shall require the insurer to file with him a written statement in such form and with such verification as he deems advisable setting forth the facts upon which it bases its entitlement to such release.

(2) If release of the deposit is claimed by the insurer upon the ground that its liabilities in this state, as to which the deposit was originally made and is held, have been assumed by another insurer authorized to transact insurance in this state, the insurer shall file with the commissioner a duly attested copy of the contract or agreement of such reinsurance.

(3) Upon being satisfied by such statement and such other information and evidence as he may reasonably require, and by such examina-tion, if any, of the affairs of the insurer as he deems advisable to make, that the insurer is entitled to the release of its deposits or excess portions thereof as provided in §625.0212, the commissioner shall release, or authorize the custodian bank or trust company in the case of deposits made under §625.0204 or §625.0205 to release, the deposit or excess portion thereof to the insurer or its authorized representative. The commissioner shall have no liability as to any such release so made or authorized by him in good faith.

(4) Upon the failure of the commissioner to release any deposit whether in the form of a certificrate of deposit or otherwise or any excess portion thereof, requested as provided in §625.0212 upon compliance by the insurer with the requirements of this section or within ninety days after receipt of the insurer's written request, whichever is later, the commissioner shall, upon petition by the insurer, post or cause to be posted a notice of pendency of the insurer's request, at the place customarily used for the posting of public notices, at the courthouse of each county, and shall make a copy of such notice available to the established

:nos


news agencies having offices at Tallahassee, Flo·rida. The commissioner may prescribe the geneool form of such notice, shall specify the insurer's name, or may list such names where more than one request is pending at the same time. Such notice shall state therein that such insurer or insurers has petitioned for the release and return of deposits pursuant to and in compliance with §§625.0212 and 625.0213, that he has no information upon which to base a finding that the insurer or insurers named in the notice is not lawfully entitled to obtain the release and return of such deposits, and that unless such information is presented to him within ninety: days from the date specified

in the notice such deposits must be returned to the insurer or insurers. In the event that no such information is presented to the commissioner within such ninety day period, he shall thereupon release and return the deposit or deposits as requested by the insurer or insurers whose request was not challenged. In the event that such information is presented to the commissioner within said period, he shall refuse to release or return the deposit of the insurer or insurers concerned and shall hold a hearing with respect thereto upon the request of such insurer or insurers.

Bistor;r.-§179, ch. 59-205; (4) n. §3, ch. 63-19. Note.-Slmllar provisions found in former 1§631.10, 635.11,

648.02, 648.17.

PART IV

DOMESTIO STOCK INSURER; EQUITY SECURITIES

625.0300 Certain persons, director or officers of domestic stock insurer to file statement.

625.0301 Preventing unfair use of information; insurer to recover profit by suit.

625.0302 Unlawful to sell equity security not owned; delayed delivery.

625.0300 Certain persons, director or officers of domestic stock insurer to file staternent.-Every person who is directly or indirectly the beneficial owner of more than ten per cent of any class of any equity security of a domestic stock insurer, or who is a director or an officer of such insurer, shall file in the office of the commissioner on or before January 10, 1966, or within ten days after he becomes such beneficial owner, director or officer a statement, in such form as the commissioner may prescribe, of the amount of all equity securities of such insurer of which he is the beneficial owner, and within ten days after the close of each calendar month thereafter, if there has been a change in such ownership during such month, shall file in the office of the commissioner a statement, in such

· form as the commissioner may prescribe, indicating his ownership at the close of the calendar month and such changes in his ownership as have occurred during such calendar month.

Bistory.-§1, ch. 65-18.

625.0301 Preventing unfair use of information; insurer to recover profit by suit.-For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director or officer by reason of his relationship to such insurer, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity security of such insurer within any period of less than six months, unless such security was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the insurer, irrespective of any intention on the part of such beneficial

625.0303 Certain sale and purchase exempted; investment account.

625.0304 Certain foreign or domestic arbitrage transactions exempted.

625.0305 Equity security defined. 625.0306 Equity securities of certain domes-

tic stock insurer exempted. 625.0307 Rules and regulations.

owner, director or officer in entering into sucli transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding six months. Suit to recover such profit may be instituted at law or in equity in any court of competent jurisdiction by the insurer, or by the owner of any security of the insurer in the name and in behalf of the insurer if the insurer shall fail or refuse to bring such suit within sixty days after request or shall fail diligently to prosecute the same thereafter; but no such suit shall be brought more than two years after the date such profit was realized. This section shall not be construed to cover any transaction where such beneficial owner was not such both at the time of the purchase and sale, or the sal·e and purchase, of the security involved, or any transaction or transactions which the commissioner by rules and regulations may exempt as not comprehended within the purpose of this section.

Bistor:r.-§1, ch. 65-18,

625.0302 Unlawful to sell equity security not owned; delayed delivery.-

(1) It shall be unlawful for any such beneficial owner, director or offi<ler, directly or indirectly, to sell any equity security of such company if the person selling the security or his principal:

(a) Does not own the security sold, or (b) If owning the security, does not de

liver it against such sale within twenty days thereafter, or

(c) Does not within five days after such sale deposit it in the mails or other usual channels of transportation;

3109


(2) No person shall be deemed to have violated this section if he proves that notwithstanding the exercise of good faith he was unable to make such delivery or deposit within such time, or that to do so would cause undue inconvenience or expense.

Bistory.-§1, ch. 65-18.

625.0303 Certain sale and purchase exempted; investment account.-The provisions of §625.0301 shall not apply to any purchase and sale, or sale and purchase, and the provisions of §625.0302 shall not apply to any sale, or an equity security of a domestic stock insurer not then or theretofore held by him in an investment account, by a dealer in the ordinary course of his business and incident to the establishment or maintenance by him of a primary or secondary market (otherwise than on an exchange as defined in the Securities exchange act of 1934) for such security. The commissioner may, by such rules and regulations as he deems necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market.

Bistory.-§1, ch. 65-18.

625.0304 Certain foreign or domestic arbitrage transactions exempted.-The provisions of §§625.0300-625.0302 shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations as the commissioner may adopt.

Bistory.-§1, ch. 65-18.

625.0305 Equity security defined.-The term "e9-uity security" when used in part IV of this chapter means any stock or similar security; or any security convertible with or without consideration, into such a s~curity or carrying any warrant or right to subscrib~ to or purchase such a security; or any such war-

rant or right; or any other security which the commissioner shall deem to be of similar nature and consider necessary or appropriate, by such rules and regulations as he may prescribe in the public interest or for the protection of investors, to treat as an equity security.

Bistory.-§1, ch. 65-18.

625.0306 Equity securities of certain domestic stock insurer exempted.-The provisions of §§625.0300-625.0302 shall not apply to equity securities of a domestic stock insurer if:

(1) Such securities shall be registered, or shall be required to be registered, pursuant to §12 of the Securities exchange act of 1934, as amended, or if,

(2) Such domestic stock insurer shall not have any class of its equity securities held of record by one hundred or more persons on the last business day of the year next preceding the year in which equity securities of the insurer would be subject to the provisions of §§625.0300-625.0302 except for the provisions of this subsection.

Bistory.- §1, ch. 65-18.

625.0307 Rules and regulations.-The commissioner shall have the power to make such rules and regulations as may be necessary for the execution of the functions vested in him by §§625.0300-625.0306 and may for such purpose classify domestic stock insurers, securities, and other persons or matters within his jurisdiction. No provision of §§625.0300-625.-0302 imposing any liability shall apply to any act done or omitted 1n good faith in conformity with any rule or regulations of the commissioner, notwithstanding that such rule or regulations may, after such act or omission, be amended or rescinded or determined by judicial or other authority to be invalid for any reason.

History.-§1, ch. 65-18.

3110

Ch. 626 INSURANCE CODE; FIELD REPRESENTATIVES AND OPERATIONS Ch. 626

CHAPTER 626

INSURANCE CODE; FIELD REPRESENTATIVES AND OPERATIONS

PART I INSURANCE REPRESENTATIVES; LICENSING PROCEDURES AND GENERAL REQUIREMENTS (§§626.011-626.711)

PART II GENERAL LINES AGENTS AND SOLICITORS; QUALIFICATIONS AND REQUIREMENTS (§§626.0100-626.0128)

PART III LIFE INSURANCE AGENTS (§§626.0200-626.0220)

PART IV DISABILITY INSURANCE AGENTS (§§626.0300-626.0313)

PART V INSURANCE ADJUSTERS (§§626.0400-626.0427)

PART VI UNAUTHORIZED INSURERS AND SURPLUS LINES (§§626.0500-626.0536)

PART VII TRADE PRACTICES AND FRAUDS (§§626.0600-626.0632)

PART I

INSURANCE REPRESENTATIVES; LICENSING PROCEDURES AND GENERAL REQUIREMENTS

626.011 Short title. 626.022 Scope of chapter. 626.031 Agent defined, in general. 626.041 General lines agent defined. 626.051 Life agent defined. 626.062 Disability agent defined. 626.071 Solicitor defined. 626.081 Service representative defined. 626.091 Supervising or managing general

agent defined. 626.101 Adjuster, claims investigator defined. 626.112 License required; agents, solicitors,

adjusters. 626.121 Permit required; service representa

tives, claims investigators. 626.131 Penalty for violation of licensing re

quirement. 626.141 Violation not to affect validity of in

surance. 626.151 License, permit to be issued only on

compliance. 626.161 Licensing forms. 626.171 Application for license or permit. 626.181 Number of applications required. 626.191 Repeated applications. 626.201 Investigation. 626.211 Approval, disapproval of application. 626.221 Examination required; exemptions. 626.231 Eligibility for examination; waiting

period, general lines agents and solicitors.

626.241 Scope of examination. 626.251 Time and place of examination; no

tice. 626.261 Conduct of examination. 626.271 Examination application fee; determi-

nation, refund. 626.281 Re-examination. 626.291 Denial, issuance of license. 626.301 Form and contents of licenses, in gen-

eral. 626.311 Scope of license. 626.321 Limited licenses. 626.322 Registration certificate, certain mili

tary installations.

626.331 Number of licenses permitted or required.

626.341 Additional licenses; life and disability agents.

626.351 Issuance; contents of permits. 626.361 Effective date and initial period of li

cense. 626.371 Payment of fees, taxes for unlicensed

period. 626.381 Continuation, expiration of license;

general lines agents. 626.391 Same; life, disability, and limited

agents. 626.401 Same; solicitors. 626.411 Same; adjusters. 626.421 Continuance, expiration of permit;

service representatives, claims investigators.

626.431 Effect of expiration of license or per-mit.

626.441 License or permit not transferable. 626.451 Appointment of agents. 626.461 Continuation of appointment of agent. 626.471 Termination of appointment of agent. 626.481 Termination of appointment of solici-

tor. 626.491 Termination of appointment of ad

juster, service representative, or claims investigator.

626.501 Alphabetical lists of licenses continued or terminated.

626.511 Reasons for termination; privileged information.

626.521 Character, credit reports. 626.531 Insurance vending machines. 626.532 Continuation, expiration of insurance

vending machine license. 626.541 Corporation and business names; offi-

cers; associates; notice of changes. 626.551 Notice of change of address. 626.561 Reporting and accounting for funds. 626.571 Delinquent agencies; notice of trustee-

ship. 626.581 Commissions contingent upon adjust

ment savings prohibited.

3111


626.591 Same; penalty for violation. 626.601 Improper conduct; inquiry. 626.611 Grounds for compulsory refusal, sus

pension, revocation of license or permit.

626.621 Grounds for discretionary refusal, suspension, revocation of license or permit.

626.631 Procedure for refusal, suspension or revocation of license or permit.

626.011 Short title.-Part I of chapter 626 may be referred to as the "licensing procedures law."

Wstory.-§181, ch. GV-205.

626.022 Scope of chapter.-(!) Part I of chapter 626 applies as to in

surance agents, solicitors, service representatives, and adjusters, as to any and all kinds of insurance, and as to stock, mutual, reciprocal and all other types of insurers, except that:

(a) It does not apply as to: 1. Title insurance. 2. Reinsurance. (b) The applicability of this chapter as to

fraternal benefits societies shall be as provided in chapter 632.

(c) Bail bondsmen, as defined in §903.37, except as provided in chapter 903.

(2) For the purposes of part I of chapter 626 "insurance" includes also annuity contracts.

History.-§ 180, ch. 59-205. Note.-Sim!lar provisions found in former 1§625.01, 627.88,

627.0104, 628.12.

626.031 Agent defined, in general.-As used in part I of this chapter "agent" or "insurance agent" means a general lines agent, life agent, or disability agent as defined in this chapter or related chapters, or all such agents, as indicated by context.

Bistory.-§182, ch, 59-205. Note.-Sim!lar provisions found in former §§625.01, 627.'12,

627.76, 648.15.

626.641 Duration of suspension or revocation. 626.651 Effect of suspension, revocation upon

associated licenses and licensees. 626.661 Surrender of license or permit. 626.671 Penalty for violation. 626.681 Administrative fine in lieu of suspen-

sion, revocation of license. 626.691 Probation. 626.701 Appeal from the commissioner. 626.711 Retaliatory provision, agents.

or contract is not signed by him as agent or representative of the insurer; or

(c) Directly or indirectly represent himself or herself to be an agent of any insurer or as an agent, to collect or forward any insurance premium, or to solicit, negotiate, effect, procure, receive, deliver, or forward, directly or indirectly, any insurance contract or renewal U.ereof, or any endorsement relating to an insurance contract, or attempt to effect the same, of property or insurable business activities or interests, located in this state; or

(d) In this state engage or hold himself out as engaging in the business of analyzing or abstracting insurance policies or of counselling or advising or giving opinions (other than as a licensed attorney at law) relative to insurance or insurance contracts, for fee, commission, or other compensation, other than as a salaried bona fide full-time employee so counselling and advising his employer relative to the insurance interests of the employer anci of the subsidiaries or business affiliates of the employer; or

(e) In any wise directly or indirectly make or cause to be made, or attempt to make or cause to be made, any contract of insurance for or on account of any insurer; or

(f) If a member of a partnership or association, or a stockholder, officer or agent of a corporation which holds an agency appointment

d fi d from any insurer, solicit, negotiate, or in any 626.041 General lines agent e ne .- way directly or indirectly effect insurance con-(1) For the purposes of this code a "general tracts; or

lines agent" is one so transacting any one or (g) Receive or transmit applications for more of the following kinds of insurance: suretyship, or receive for delivery bonds found-

( a) Property insurance. ed on applications forwarded from this state, (b) Casualty insurance. or otherwise procure suretyship to be effected (c) Surety insurance. by a surety insurer upon the bonds of persons (d) Disability insurance, when transacted in this state, or upon bonds given to persons

by an insurer also represented by the same in this state. agent as to property or casualty or surety in- (3) A salaried employee who performs cler-surance. ical or administrative services only in the office

(e) Marine insurance. is not deemed thereby to be an agent within (2) With respect to any such insurances the intent of this section.

no person shall, unless licensed therefor as an ( 4) A salaried employee of a general lines agent: agent who performs clerical or administrative

(a) Solicit insurance or procure applica- services only for such agent in the office of the tions therefor; or agent is not deemed thereby to be an agent with-

(b) In this state receive or receipt for any in the intent of this section. money on account of or for any insurer, or re- (5) As used in part I of this chapter propceive or receipt for money from other persons erty insurance also includes marine insurance, to be transmitted to any insurer for a policy, unless context requires otherwise. contract, or certificate of insurance or any re- Btstory.-§183, ch. 59-205.

Note.-Simllar provisions found in f6rmer 1§625.01, 627.'12, newal thereof, although such policy, certificate, 627.76, 627.86, 648.15.

3112


626.051 Life agent defined.-(1) For the purposes of part I of this chap

ter a "life agent" is one so representing an insurer as to life insurance and annuity contracts. The term shall also include an agent appointed as such as to life insurance, fixed dollar annuity contracts, variable annuity contracts and disability insurance by the same insurer.

(2) Except as provided in §626.112 (4), with respect to any such insurances or contracts no person shall, unless licensed therefor as an agent:

(a) Solicit insurance or annuities or procure applications therefor; or

(b) In this state engage or hold himself out as engaging in the business of analyzing or abstracting insurance policies or of counselling or advising or giving opinions to persons relative to insurance or insurance contracts other than

1. As a consulting actuary advising insurer; or

2. As to the counselling and advising of labor unions, associations, trustees, employers or other business entities, the subsidiaries and affiliates of each, relative to their interests and those of their members or employees under insurance benefit plans.

mstory.-§184, ch. 59-205; (1) a. by §6, ch. 61-441. Note.--Bimllar provisions found In former §§625.01, 634.01.

626.062 Disability agent defined.-(1) For the purposes of part I of this chap

ter a "disability agent" is one so representing, as to disability insurance only, an insurer transacting disability insurance.

(2) Except as provided in §626.112 (4), with respect to such insurance no person shall, unless licensed therefor as an agent:

(a) Solicit insurance or procure applications therefor; or

(b) In this state engage or hold himself out as engaging in the business of analyzing or abstracting insurance policies or of counselling or advising or giving opinions to persons relative to insurance or insurance contracts other than

1. As a consulting actuary advising insurers; or

2. As to the counselling and advising of labor unions, associations, trustees, employers or other business entities, the subsidiaries and affiliates of each, relative to their interests and those of their members or employees under insurance benefit plans.

Blstory.-§185, ch. 59-205. Note.--Bimllar provisions found In former §625.01.

626.071 Solicitor defined.-(!) For the purposes of this code a "solici

tor" is an individual appointed by a general lines agent to solicit applications for insurance as a representative of such agent. An individual employed on salary only by an agent, and devoting full time to clerical work with incidental taking of insurance applications and receiving premiums in the office of the agent,

is not deemed to be a solicitor if his compensation neither includes any commissions on such business nor is related to the volume of such applications, insurance or premiums.

(2) No person without being duly licensed therefor and conforming to this code shall directly or indirectly represent himself or herself to be the solicitor for any agent, or as solicitor, to collect or forward any insurance premium, or to solicit, negotiate, effect, procure, receive, deliver or forward, directly or indirectly, any insurance contract or renewal thereof, or any endorsement relating to an insurance contract, or attempt to effect the same, of property or insurable business activities or interests, located in this state.

mstory.-§186, ch. 59-205. Note.-slmllar provisions found In former §627.72.

626.081 Service representative defi.ned.(1) For the purposes of this code "service

representatives" are individuals employed by insurers, or general agents, including traveling salaried representatives of reciprocal or interinsurance exchanges or of mutual insurers operating on the premium deposit plan; for the purpose of assisting general lines agents and solicitors in negotiating and effecting insurance contracts. No such person shall be licensed as an agent or solicitor in this state.

(2) This section does not apply as to life or disability insurance.

mstory.-§187, ch. 59-205. Note.--Bimllar provisions found In former §§627.72, 628.12.

626.091 Supervising or managing general agent defined.-

(1) A "supervising" or "managing" general agent is an individual, firm or corporation appointed or employed by an insurer to supervise or manage, the business written by the general lines agents appointed by the insurer in this state. No such person shall be licensed as a general lines agent or solicitor in this state.

(2) This section does not apply as to life or disability insurance.

Blstory.-§188, ch. 59-205. Note.--Bimllar provisions found In former §§627.27, 645.01.

626.101 Adjuster, claims investigator defined.-For the purposes of part I of this chapter:

(1) An "adjuster" means a public adjuster, independent adjuster, or company employee adjuster, as respectively defined in part V of chapter 626.

(2) A "claims investigator" is as defined in §626.0406.

mstory.-§189, ch. 59-205.

626.112 License required; agents, solicitors, adjusters.-

( I) No person shall in this state be, act as, or advertise or hold himself out to be, an insurance agent or solicitor or adjuster unless he is then licensed as such agent or solicitor or adjuster under a currently effective license issued to such person by the commissioner pursuant to this code.

(2} No agent or solicitor shall solicit or

8113


otherwise transact as agent or solicitor, or represent or hold himself out to be an agent or solicitor as to, any kind or kinds of insurance as to which he is not then licensed as such agent or solicitor under a currently effective license issued to such person by the commissioner pursuant to this code.

(3) No person shall act as an adjuster, or represent or hold himself out to be, or perform any of the functions of, an adjuster, as to any class of business for which he is not then licensed as an adjuster under a currently effective license issued to such person by the commissioner pursuant to this code, and then only to the extent authorized by such license.

( 4) An individual employed by a life or disability insurer as an officer or other salaried representative, may solicit and effect contracts of life insurance or annuities, or of disability insurance, without being licensed as an agent, when and only when he is accompanied by and solicits for and on the behalf of an agent duly licensed as the agent of such insurer as to the kind of insurance so solicited or effected.

(5) Violation of this section is subject to the penalties provided for in §626.131.

History.-§ 190, ch. 59-205. Note.-51mllar provisions found In former 1§627.76, 627.80,

628.12, 634.02, 634.17, 636.24, 644.03.

626.121 Permit required; service representatives, claims investigators.-

(!) No person shall in this state be, act as, or represent or hold himself out to be a service representative unless he then holds a currently effective service representative permit issued to such person by the commissioner pursuant to this code. This provision does not apply as to similar representatives or employeee of casualty insurers whose duties are restricted to disability insurance.

(2) No person shall in this state be, act as, or represent or hold himself out to be a claims investigator, or perform any of the functions of a claims investigator, unless he then holds a currently effective claims investigator permit issued to such person by the commissioner pursuant to this code, and then only to the extent authorized by such permit.

(3) Violations of this section shall be subject to the penalties provided for by §626.131.

History.-§ 191, ch. 59-205. Note.-51mllar provisions found In former §§627.72, 636.24.

626.131 Penalty for violation of licensing requirement.-

(1) Any person, other than an insurer, who violates any provision of §626.112 or §626.121 shall, in addition to denial, suspension, revocation or refusal of license or other administrative penalties available under this code, upon, conviction be subject to the penalties of fine and imprisonment as provided by §626.671.

(2) The commissioner may, in his discretion, suspend or revoke the certificate of authority of any insurer that violates any provision of §626.112 or §626.121. If such violation is inadvertent, the commissioner may require the insurer to pay a penalty of five dollars as to

each individual concerned in such violation, in addition to the fees and taxes otherwise payable; and if the violation is wilful the insurer upon conviction thereof by a court of competent jurisdiction shall be guilty of a felony.

Hlstory.-§192, ch. 59-205. Note.-5imllar provisions found In former §§625.011, 627.98.

626.141 Violation not to affect validity of insurance.-An insurance contract which is otherwise valid and binding as between the parties thereto, shall not be rendered invalid by reason of having been solicited, handled, or procured by or through an unlicensed agent or solicitor.

History.-§ 193, ch. 59-205. Note.-5imllar provisions found In former §625.211.

626.151 License, permit to be issued only on compliance.-

(1) For the protection of the people of this state, the commissioner shall not issue or con~ tinue or renew or permit to exist any license as agent or solicitor or adjuster, or any permit as service representative or claims investigator, except in compliance with the applicable provisions of this code.

(2) The commissioner shall not issue, or continue or renew or permit to exist any such license or permit as to any individual who has not established to the commissioner's satisfaction that he is qualified therefor in accordance with the applicable provisions of this code.

History.-§ 194, ch. 59-205. Note.-slmllar provisions found In former §§627. 77, 627.99,

634.24.

626.161 Licensing forms.-The commissioner shall prescribe, consistent with the applicable requirements of this code, and furnish all printed forms required under this code in connection with the application for and issuance of licenses, permits, examinations for licenses, and for appointment and termination of appointment of agents and solicitors.

History.-§ 195, ch. 59-205. Note.-5lmllar provisions found In former §§627.72, 627.79,

627.84, 634.04, 634.05, 634.18, 636.25, 644.06.

626.171 Application for license or permit.(1) The commissioner shall not issue a li

cense as agent or solicitor or adjuster, or a permit as service representative or claims investigator, to any person except upon written application therefor filed with him, qualification therefor as provided in this code, and payment in advance of all applicable license taxes and fees required under §624.0300 (filing, license and miscellaneous fees). Any such application for license shall be made under the oath of the applicant.

(2) Application for license as a general lines agent shall be signed by the applicant.

(3) Application for license as a life agent or disability agent shall be signed by the applicant, shall be filed with the commissioner by the insurer proposed to be so represented, and shall be accompanied by an appointment of the applicant by the insurer as its agent, subject to issuance of the license.

(4) Application for license as a solicitor

3114


shall be signed by the applicant. (5) Application for license as an adjuster

shall be signed by the applicant and filed by him (if to be a self-employed public or independent adjuster) or by his proposed employer.

(6) Application for a service representative's permit shall be made by the insurer, its manager, general agent, supervising or managing general agent, or representative of such insurer, by whom the individual proposing to be a service representative is to be so employed.

(7) Application for a claim investigator's permit shall be signed by the applicant, and shall be endorsed and filed by the adjuster or insurer by whom the individual proposing to be a claims investigator is to be so employed.

(8) Each such application shall call for information concerning the applicant and application as required by the commissioner and under the following respective sections of this code:

(a) If for general lines agent's license, §626.0105;

(b) If for life agent's license, §626.0210; (c) If for disability agent's license, §626.-

0306; . (d) If for solicitor's license, §626.0108; (e) If for adjuster's license, §626.0419; (f) If for service representative's permit,

§626.0117; and (g) If for claim investigator's permit, §626.-

0417. (9) Each such application shall be accom

panied by payment of the taxes and fees, and fees for filing application for examination of the applicant, where applicable as specified therefor under §624.0300 (filing, license, and miscellaneous fees), and under §626.271 (examination application fee; determination, refund).

Hlstory.-§196, ch. 59-205.

clause for a period of more than four years from the date of filing of the original application.

Blstory.-§197, ch. 59·205. Note.-slmUar provisions found tn former §627.81.

626.191 Repeated applications.-The failure of an applicant to secure a license or permit upon an application shall not preclude him from applying again as many times as he may desire, but the commissioner shall not give consideration to or accept any further application by the same individual for a similar license or permit dated or filed within sixty days subsequent to the date the commissioner denied the last application, except as provided in §626.281.

Hlstory.-§198, ch. 59-205. Note.-slmllar provisions found In former 1§627.81, 636.25.

626.201 Investigation.-The commissioner may propound any reasonable interrogatories in addition to those contained in the application, to any applicant for license or permit, or on any renewal or continuation thereof, relating to his qualifications, residence, prospective place of business, 1\nd any other matter which, in the commissioner's opinion, is deemed necessary or advisable for the protection of the public and to ascertain the applicant's qualifications. The commissioner may, upon completion of the application, make such further investigation as he may deem advisable of the applicant's character, experience, background, and fitness for the license or permit. The commissioner shall in all cases interview each first time applicant for license as a general lines agent. Such an inquiry or investigation shall be in addition to any examination required to be taken by the applicant as hereinafter in this chapter provided.

Blstory.-§199, ch. 59-205. Note.-slmllar provisions found In former §§627.77, 634.06,

644.07. Note.-slmllar provisions found In former §§627.72, 627.74, 627.75, 627.79, 627.80, 627.81, 634.04, 634.05, 634.18, 636.25, 644.06. 626.211 Approval, disapproval of applica-

626.181 Number of applications required.- tion.-After a license as agent, solicitor, or adjuster (1) If upon the basis of the completed aphas been issued to an individual upon the basis, plication for license or permit and such further in part, of personal and other data contained in inquiry or investigation as the commissioner an original application for the license, the same may make concerning the applicant the comindividual shall not be required to file another missioner is satisfied that, subject to any examiapplication for a similar license (regardless, nation required to be taken and passed by the in the case of an agent, of the number of applicant for a license, the applicant is qualiinsurers to be represented by him as agent fied for the license or permit applied for and or the number of subsequent requests for simi- that all pertinent taxes and fees have been lar license made by or on his behalf) unless paid, he shall approve the application. specifically ordered by the commissioner to (2) Upon such approval in the case of apcomplete a new application; or unless during plicants for license as agent, solicitor, or adany period of twenty-four months since the juster who are subject to written examination filing of the original application such individual under §626.221, the commissioner shall notify was not licensed as such agent, solicitor or the applicant when and where he may take the adjuster, unless the failure to be so licensed required examination as provided in §626.251, was due to military service, in which event the but subject to any applicable waiting period period within which a new application is not provided in §626.231 as to applicants for license required may, in the commissioner's discre- as general lines agent or solicitor. tion, be extended to twelve months following (3) Upon such approval in the case of apthe date of discharge from military service if plicants for license or permit who are not so the military service does not exceed three subject to examination, the commissioner shall years, but in no event to extend under this promptly issue the license (as provided in

3115


§626.291) or permit applied for (as provided in §626.351).

( 4) If upon the basis of the completed application and such further inquiry or investigation the commissioner deems the applicant to be lacking in any one or more of the required qualifications for the license or permit applied for as specified in §626.0105 as to general lines agents, §626.0209 as to life agents, §626.0305 as to disability agents, §626.0108 as to solicitors, and part V of this chapter as to adjusters and claims investigators, the commissioner shall disapprove the application and notify the applicant thereof, stating the grounds of disapproval. At the same time the commissioner shall return to the applicant or other person entitled thereto any state license tax and county license tax received by the commissioner in connection with the application for license, as provided in §626.291 (5).

Hlstory.-§200, ch. 59-205. Note.-slmllar provisions found In former §§627.81, 634.08,

634.24, 636.25. 644.07.

626.221 Examination required; exemptions. (1) The commissioner shall not issue any

license as agent, solicitor, or adjuster to any individual who has not personally qualified for, taken, and passed to the commissioner's satisfaction, a written examination of the scope prescribed in §626.241.

(2) An individual already licensed as a solicitor shall not be licensed as a general lines agent without application and examination for such license, unless exempted as to the examination under subsection (3) (i) of this section.

(3) Except, that no such examination shall be necessary in the following cases :

(a) An applicant for license as life agent or disability agent who is currently licensed as such an agent of another insurer as to the same class or classes of business as that proposed to be transacted under the new license.

(b) An applicant for a renewal license as a life agent or disability agent, unless the commissioner determines that an examination is necessary to establish the competence or trustworthiness of such individual.

(c) Applicants for limited license as agent for sale of accident insurance as provided under §626.321 (1) (c).

(d) Applicants for limited license as agent for sale of baggage insurance as provided under §626.321 (1) (d) .

(e) Applicants for limited license for the sale of credit life and disability insurance as provided for under §626.321 (1) (e); or for limited license as credit insurance agent as provided for under §626.321 (1) (f).

(f) In the commissioner's discretion, an applicant for license as a life agent whose similar license has expired or been suspended within two years prior to the date of application.

(g) An applicant who within thirty days prior to application for license as agent, solicitor or adjuster was a full-time salaried employee of the commissioner and of the insurance department of this state and had continu-

ously been such an employee with responsible insurance duties for not less than two years, and who had been a licensee prior to employment by the commissioner and the insurance department with the same type and class of license as that being applied for.

(h) An applicant for license as a solicitor, who is currently licensed as a general lines agent or held such a license or had successfully passed the examination for such an agent's license within twenty-four months prior to the date application for solicitor's license is filed with the commissioner. This provision or paragraph (i), below, shall not be deemed to permit an individual to be licensed both as such an agent and as a solicitor at the same time.

(i) An individual who qualified as a solicitor by taking and successfully passing an agent's examination and who subsequently was licensed as a solicitor may, upon filing an application therefor, be licensed as a general lines agent as to the same kinds of business and without taking another examination, if the applicant holds a currently effective solicitor's license or held such a license within twentyfour months prior to the date of filing the application with the commissioner.

(j) A person who has been licensed by the commissioner as a public adjuster or independent adjuster, or licensed either as an agent or company adjuster as to all property, casualty, and surety insurances, may be licensed as a company adjuster as to any of such insurances, or as an independent adjuster or public adjuster, without additional written examination if his application for license is filed with the commissioner within twenty-four months next following date of cancellation or expiration of the prior license.

(k) A person who has been licensed by the commissioner as a company employee adjuster for automobile physical damage, fire, and allied lines including marine, casualty, workmen's compensation, boiler and machinery or any combination thereof, may be licensed as a company employee adjuster without additional written examination, if his application for license is filed with the commissioner within twenty-four months next following date of cancellation or expiration of the prior license.

(1) Applicants for temporary license, except as provided in the respective sections of this code applicable thereto.

(m) Applicants for license as a nonresident agent, if so provided in sections of this code applicable to such licensees.

(n) A person who has received the designation of chartered life underwriter (C.L.U.) from the American College of Life Underwriters, except that such a person may be examined on pertinent provisions of the insurance code as determined by the commissioner.

(4) No fee for filing application for examination shall be payable as to any applicant for license exempted from examination under this section.

Hlstory.-§201, ch. 59-205 ; §1, ch. 67-91. Note.-Bimllar provisions found In former §§627.81, 62'l.M,

634.06, 634.07, 636.25, 636.26, 636.27, 636.28, 644.07, 644.10.

8116


626.231 Eligibility for examination; waiting period, general lines agents and solicitors.-

(1) No person shall be permitted to take an examination for license until his application for the license has been approved by the commissioner as provided in §626.211, and then only if the fee required under §624.0300 for filing application for the examination has been received by the commissioner in advance of the applicant's appearance for the examination.

(2) An applicant for license as a general lines agent or solicitor whose application has been approved by the commissioner, shall become eligible to take the examination only upon expiration of sixty days after the date his application for license was filed in the offices of the commissioner at Tallahassee; except, that if the applicant for license as a general lines agent is currently licensed as a solicitor, he shall be eligible for the examination for an agent's license upon approval of his application therefor by the commissioner and shall not be subject to the sixty day waiting period.

(3) The sixty day waiting period provided for in subsection (2) shall run concurrently with any special schooling and/or experience required under §626.0106 of the applicant as part of the qualifications for the license, or with the completion of the residence requirement provided for under §626.0105 (2) as to general lines agents or under §626.0108 (2) as to solicitors, and the applicant may for the purpose file his application for license while such schooling and/ or experience is in progress, as provided in §626.0106 (3), or while such residence requirement is being completed, as the case may be.

mstory.-§202, ch. 59-205. Note.-slmllar provisions found In former §§627.81, 636.42.

626.241 Scope of examination.-(!) Each examination for a license as agent,

solicitor, or adjuster shall be of such scope as is deemed by the commissioner to be reasonably necessary to test the applicant's ability and competence, and knowledge of the kinds of insurance and transactions to be handled under the license applied for, of the duties and responsibilities of such a licensee, and of the pertinent provisions of the laws of this state.

(2) Examinations given applicants for license as general lines agent or solicitor shall cover as to all property, casualty, and surety insurances; except as provided in subsection (5), as to limited licenses.

(3) Examinations given applicants for life agent's license shall cover as to the class of life insurance to be written under the license as defined in part III of this chapter, and, if to be licensed as to the "ordinary" class, including fixed dollar annuity contracts or an "ordinary-variable annuity" class. The commissioner may provide different examinations, in his discretion, for applicants appointed by different types of insurers.

( 4) Examinations given applicants for disability agent's license shall cover as to disability insurance.

(5) Examinations given applicants for a limited license as agent, where applicable, shall be limited in scope to the kind of business to be transacted under such license as provided in §626.321.

(6) Examinations given applicants for a license as an independent adjuster or as a public adjuster shall cover adjusting in all lines of insurance other than life and annuity.

(7) Examinations given applicants for license as a company employee adjuster shall cover adjusting in all lines of insurance, other than life, annuity, and disability; or, in accordance with the application for the license, the examination may be limited to adjusting in:

or

(a) Automobile physical damage, or (b) Fire and allied lines including marine,

(c) Casualty, or (d) Workmen's compensation, or (e) Boiler and machinery, or (f) Any combination of the aforementioned

categories. Blstory.-§203, ch. 59-205; (3) 17, ch. 61-441; (6) §1, ch. 65-lEf. Note.-slmUar provisions found In former §§627.81, 627.~

Ef34.06, Ef34.07, 636.25, Ef36.26, Ef36.27, Ef36.28, 644.07.

626.251 Time and place of examination; notice.-

(1) The commissioner shall mail written notice of the time and place of the examination to each applicant for license required to take an examination under §626.221 and who will be eligible under §626.231 to take the examination as of the examination date. The notice shall be so mailed, postage prepaid and addressed to the applicant at his address shown on his application for license (or at such other address as requested by the applicant in writing filed with the commissioner at Tallahassee prior to the mailing of the notice), not less than fifteen days in advance of the examination date. Notice shall be deemed given when so mailed.

(2) The examination shall be held in an adequate and designated examination room in that one of the commissioner's offices in this state which is located nearest to the appErant's place of residence; except that an examination may be taken at any other office of the commissioner if mutually convenient to the commissioner and the applicant.

(3) The commissioner shall make an examination available to the applicant, to be taken as soon as reasonably possible after the applicant is eligible therefor. Any examination required under part I of this chapter shall be available in the commissioner's office at Tallahassee or elsewhere in Florida on at least one designated business day of each week.

History .-§204, ch. 59-205. Note.-slmllar provisions found In former § §625.37, 627.81,

Ef34.06, 636.25, 644.07.

626.261 Conduct of examination.-(!) The applicant for license shall appear

in person and personally take the written examination for license, at the time and place specified in the commissioner's notice thereof.

8117


(2) The examination shall be conducted by the commissioner or by his salaried employee designated by him for the purpose.

(3) The questions propounded shall be as prepared by the commissioner, consistent with the applicable provisions of this code.

( 4) The applicant shall be entitled to take at the same place and date examinations covering all licenses for which his application or applications have been currently approved and for which he is eligible under §626.231.

(5) All examinations shall be given and graded in a fair and impartial manner, and without unfair discrimination in favor of or against any particular applicant.

Hlstory.-§205, ch. 59-205. Note.-slmUar provisions found In former 1§627.81, 834.08,

836.25, 644.07.

626.271 Examination application fee; determination, refund.-

(1) At the time of filing his application for license each applicant who is subject to written examination as provided under §626.221, shall pay to the commissioner a fee for filing application for the examination in the amount prescribed in §624.0300 (filing, license and miscellaneous fees). A separate and additional application for examination filing fee shall be so payable for each separate type or class of license applied for, notwithstanding that all such examinations are taken on the same date and at the same place.

(2) The fee for filing application for examination shall not be subject to refund.

History.-§206, ch. 59-205. Note.-slmllar provisions found In former §§627.81, 836.42,

644.05.

626.281 Re-examination.-(!) Any applicant for license who has either (a) Taken an examination and failed to

make a passing grade, or (b) Failed to appear for the examination or

to take or complete the examination at the time and place specified in the commissioner's notice provided for in §626.251, may, after expiration of sixty days from the date of the previous such examination either taken or scheduled, upon payment of an additional examination application filing fee for such second examination take a second examination based upon the same application for license. If the applicant fails to pass such second examination he shall not be eligible for or be permitted to take another examination for the same type or class of license except pursuant to a new application for license and payment of new license taxes and fees and examination application filing fees as required for an initial application for license; and no such application for license shall be received on file or considered by the commissioner until after expiration of sixty days after the date of denial of the license as provided for in §626.291. Except, that as to disability insurance an applicant failing the first examination shall be allowed to take a second examination upon payment of an additional examination application filing fee, and

if such applicant fails the second examination he shall be required to wait for a period of sixty days before again applying for license.

(2) The commissioner may, in his discretion, require any individual whose license as an agent, solicitor, or adjuster has expired or has been suspended, to take and successfully pass such a written examination prior to reinstating or relicensing such individual, as to any type or class of license. The regular examination application filing fee shall be paid as to each such examination.

(3) The commissioner may, in his discretion, require any individual licensed as an agent, solicitor, or adjuster whose license was originally to be issued after examination as required by §626.221 or under laws heretofore in force, to take and successfully pass an examination as for original issuance of license as a condition precedent to the renewal or continuation of the licensee's current license. The regular examination application filing fee shall be paid as to each such examination.

Hlstory.-§207, ch. 69-205. Note.-Bimllar provisions found In former §§627.77, 627.81,

636.33, 644.07.

626.291 Denial, issuance of Iicense.-(1) As soon as reasonably possible after the

applicant has completed any examination required under §626.221, the commissioner shall grade his examination paper. If he finds that the applicant has received a passing grade, the commissioner shall promptly notify the applicant thereof and in due course issue and transmit the license to which such examination related. If he finds that the applicant did not make a passing grade on the examination for a particular license, the commissioner shall promptly mail notice to the applicant and the insurer or proposed employer to that effect and of his denial of the license so applied for.

(2) As to applicants for license for which no examination is required, the commissioner shall promptly issue the license applied for as soon as he has approved the application therefor as provided in §626.211.

(3) The commissioner shall transmit the original and a copy of each such license as follows:

(a) Agents' licenses, original to the insurer and copy to the licensee;

(b) Solicitors' licenses, original to the appointing agent and copy to the licensee;

(c) Adjusters' licenses, original to the licensee if to be a self-employed public adjuster or independent adjuster; otherwise the original license shall be transmitted to the employer and a copy to the licensee.

( 4) While the license is in force the original thereof shall be retained by the appointing insurer or (in the case of solicitor's license) the appointing agent.

(5) Upon denial of a license the commissioner shall refund to the applicant or payor entitled thereto any state license tax and county license tax received by him in connection with the application for the license. No such

3118


refund shall be made under any circumstances after issuance of a license if the applicable license year has commenced before receipt by the commissioner of the request for cancellation of license and refund at his office at Tallahassee.

mstory.-§208, ch. 59-205. Note.--sim!lar provisions found 1n former §§627.83, 634.04,

634.07, 636.25, 644.07.

626.301 Form and contents of licenses, in general.-

(1) Each license as agent, solicitor, or adjuster issued by the commissioner shall be in such form as the commissioner may designate and show the type and serial number of license, date of issuance, name and address of the licensee, general conditions pertaining to expiration, continuation or renewal, and further matters as hereinbelow specified, all consistent with the applicable provisions of this code.

(2) The license of a general lines agent shall show the kinds of insurance the licensee is authorized to transact as such agent and the name and address of the insurer repres~nted by the licensee as agent.

(3) The license of a solicitor shall show the name and address of the agent by whom he is appointed as solicitor, and the kinds of insurance the licensee is authorized to transact as solicitor under the license.

(4) The license of a life agent shall show the type and class of life insurance business the licensee is authorized to transact as agent and the name and address of the insurer so represented.

(5) The license of a disability agent, as to an insurer not represented by the licensee under a general lines agent's license as provided in §626.311 (1), shall show the name and address of the insurer so represented.

(6) The license of an adjuster shall show the types and classes of coverage as to which the licensee is authorized to act as adjuster under the license.

(7) Any such license shall contain such other matters, consistent with the applicable provisions of this code, as the commissioner deems advisable.

History.-§209, ch. 59-205. Note.--simllar provisions found 1n former §§205.45, 634.07,

636.25.

626.311 Scope of Iicense.-(1) Except as to limited licenses authorized

under §626.321, the applicant for license as a general lines agent or solicitor shall qualify for all property, marine, casualty, and surety lines. The license of a general lines agent may also cover disability insurance, without additional license, fees or taxes, if disability insurance is included in the agent's appointment by an insurer as to which the licensee is also appointed as agent for property or casualty or surety insurance. The license of a solicitor shall provide, in substance, that it covers all of such kinds of insurance that his appointing general lines agent is currently so authorized to transact under the general lines agent's li-

cense. No such license shall be issued limited to particular classes or subdivisions of such kinds of insurance or any of them.

(2) The license of a life agent shall cover such types and classes of life insurance busi~ess (!ls defined in part III of this chapter) as Is designated for the purpose by the insurer in the insurer's appointment filed with the commissioner. The licensee shall be limited to selling the class of insurance specified for the insurer named in the license.

(3) Except as to limited license as accident insurance agent authorized under §626.321, the license of a disability agent shall cover all kinds of disability insurance, and no such license shall be issued limited to particular classes or subdivisions of disability insurance.

(4) No agent licensee shall transact or attempt to transact under his license any kind of insurance or class thereof for which he does not have currently in force of record with the commissioner an agency appointment by an authorized insurer.

(5) The scope of adjuster licenses shall be as provided in part V of this chapter.

Hlstory.-§210, ch. 59-205.

626.321 Limited licenses.-(1) • The commissioner shall issue a license

as to an individual qualified therefor, as agent authorized to transact as such thereunder a limited class of business, in any of the following categories:

(a) Motor vehicle physical damage insurance.-License covering insurance against only the loss of or damage to any motor venicie which is designed for use upon a highway, or as such vehicles may be defined by law in Florida from time to time, including trailers and semi-trailers designed for use with such vehicles ( exc~pt traction engines, road rollers, tractor cranes, power shovels, and well drillers) and every vehicle which is propelled by electric power obtained from overhead wires but not operated upon rails. The applicant for such a license shall take and pass to the commissioner's satisfaction, as provided for examinations generally, a written examination covering motor vehicle physical damage insurance. No individual while so licensed shall hold a license as an agent or solicitor as to any other or additional kind or class of insurance coverage, except a limited license as to credit life and disability insurances as provided in paragraph (e), of this subsection.

(b) Industrial fire insurance.-License covering only industrial fire insurance as defined in §626.0103. The applicant for such a license shall take and pass to the commissioner's satisfaction, as provided for examinations for license generally, a written examination covering such insurance. No individual while so licensed shall hold a license as an agent or solicitor as to any other or additional kind or class of insurance coverage except as to life and disability insurances.

(c) Personal accident insurance.-License

3119


covering only policies of personal accident insurance, covering the risks of travel, the license to be issued only to a full-time salaried employee of a common carrier or a full-time salaried employee or owner of a transportation ticket agency, which person is engaged in the sale of transportation tickets, for his employer, ftnd authorizing sale of such ticket policies only in connection with the sale of transportation tickets; or to the full-time salaried employee of an agent licensed as to such kind of insurance. No such policy shall be for a duration of more than forty-eight hours or for the duration of a specified one-way trip or round trip, as applicable.

(d) Baggage insurance.-License covering only insurance of personal effects, the license to be issued only to a full-time salaried employee of a common carrier or a full-time salaried employee or owner of a transportation ticket agency, which person is engaged in the sale, or handling of, transportation of baggage and personal effects of travelers, and authorizing sale of such insurance only in connection with such transportation; or issued to the fulltime salaried employee of a licensed general lines agent.

(e) Credit life or disability insurance.-License covering only credit life and/or disability insurance as defined in part VIII of chapter 627, the license to be issued only to an individual employed by a life or disability insurer as an officer or other salaried or commissioned representative, or an individual employed by or associated with a lending or financing institution or creditor, and authorizing sale of such insurance only with respect to borrowers or debtors of such lending or financing institution or creditor. No individual while so licensed shall hold a license as an agent or solicitor as to any other or additional kind or class of life or disability insurance coverage.

(f) Credit insurance.-License covering only credit insurance, as such insurance is defined in §624.0404(1) (i) ("casualty insurance" defined), and no individual so licensed shall during the same period hold a license as an agent or solicitor as to any other or additional kind of insurance.

(2) The name of the insurer represented and the limitations of any license issued under this section shall be expressed therein. The licensee shall have a separate and additional license as to each such insurer.

(3) Except as otherwise expressly provided, individuals applying for or holding a limited license shall be subject to the same applicable requirements and responsibilities as apply under parts I and II of this chapter (general lines agents and solicitors qualifications and requirements) to general lines agents in general, if licensed as to motor vehicle physical damage insurance, or industrial fire insurance, or baggage insurance, or credit insurance; or as apply under parts I and III of this chapter (life insu:anc.e. ag~nts) or part IV of this chapter (d1sab1hty msurance agents) to life agents or

disability agents in general, as the case may be, if licensed as to personal accident insurance or credit life or credit disability insurance.

History .-§211, ch. 59-205. Note.-slm!lar provisions found 1n former §§627.72, 627.82,

627.84, 634.06, 644.07.

626.322 Registration certificate, certain military installations.-A natural person, not a resident of this state, may be registered to represent an authorized life insurer domiciled in this state or an authorized foreign life insurer which maintains a regional home office in this state, provided such person represents such insurer exclusively at a United States military installation located in a foreign country. The commissioner may, upon request of such insurer on application forms furnished by the commissioner and upon payment of an annual fee of ten dollars, issue a certificate of registration to such person. The insurer shall certify to the commissioner that the applicant has the necessary training to hold himself out as a life insurance representative and, the insurer shall further certify that it is willing to be bound by the acts of such applicant within the scope of his employment. Such certificate shall expire as of March 31 succeeding date of issuance, unless sooner terminated. Such fees received shall be credited to the "insurance commissioner's regulatory trust fund" as provided for in §624.0324 of this code.

Bistory.-§1, ch. 65-545.

626.331 Number of licenses permitted or required.-

(1) Except as otherwise expressly provided in this code, the same individual may at any one time hold any and all categories of license as to which he has qualified and been licensed under this code.

(2) A general lines agent shall be required to have a separate license as to each insurer by whom he is appointed as an agent as to property, casualty and surety insurances or any of them, and including disability insurance where transacted by an insurer also represented by the agent as to property, casualty or surety insurance.

(3) A life agent shall have a separate license as to each life insurer so represented.

( 4) A disability agent shall have a separate license as to each disability insurer so represented, except as provided in subsection (2).

(5) The commissioner may issue a single agent's license covering both life and disability insurances to an individual qualified as to both such kinds of insurance and appointed as agent as to both such kinds by the same insurer.

(6) Any general lines, life, or disability agent appointed by an insurer and licensed by the commissioner to solicit contracts of disability insurance as defined in §624.04(}2, may on behalf of and with the consent of any other insurer transacting disability insurance solicit disability insurance covering persons sixty-five years of age or older and their spouses without

3120


being required to secure a license as to such other insurer.

Blstory.-§212, ch. 59-205; (6) n. §1, ch. 63-17. Note.-Bimllar provisions found In former §§634.07, 644.10-

626.341 Additional licenses; life and disability agents--At any time while his license is in force a life agent or disability agent may apply to the commissioner for an additional license or licenses as life or disability agent for an additional insurer or insurers. The application shall set forth each insurer the applicant is then licensed to represent, and such other information as the commissioner may require. The application shall include, or be accompanied by, appointment of the applicant as agent by each additional insurer as to which license is applied for. Upon receipt of the application and appointment and payment of the applicable license taxes and fees, the commissioner may issue such additional license without, in his discretion, further investigation concerning the applicant.

mstory .-§213, ch. 59-205. Note.-81m1lar provisions found In former 1§634.07, 644.10.

626.351 Issuance; contents of permits.(1) The commissioner shall promptly issue

as to an applicant therefor, whose application he has approved as provided in §626.211, a permit as service representative or as claims investigator, as the case may be.

(2) Each such permit shall be in such form as the commissioner may prescribe consistent with the applicable provisions of this code. The permit shall set forth its serial number, date of issuance, name and address of the permittee, name and address of his employer, general conditions as to expiration, continuation or renewal, and such other pertinent matter as the commissioner deems advisable.

(3) A claims investigator's permit shall also set forth the type and class of coverage the permittee is authorized to handle as a claims investigator, as referred to in §626.0418.

(4) A service representative shall have a separate permit as to each employer represented by him, except that he may so represent under one permit all insurers represented by his employer general agent or comprising an affiliated group of insurers.

(5) Upon issuance the commissioner shall transmit the original of the permit to the employer and a copy of the permit to the permittee. While in force, the original of the permit shall be retained by the employer.

(6) The commissioner shall not make refund of any fees paid as to any permit after issuance of the permit if the applicable permit year or term has commenced before receipt by the commissioner at his offices at Tallahassee of request for cancellation of the permit and refund.

of examinations, and waiting periods have been completed and evidence thereof in the customary form received by the commissioner at his office in Tallahassee within one calendar month prior to the expiration of the applicable license year then current or within one calendar month after the commencement of the next following new license year, shall be dated and be effective as of the first day of such new license year and shall be as for the entire such license year (subject to suspension, revocation, renewal, continuation, or termination as otherwise provided for in this chapter); but such a license, if issued pursuant to qualification therefor during the last calendar month of the preceding license year as hereinabove provided, shall be deemed to relate back in effectiveness to the date within such calendar month on which the last of such qualifying requirements was received by the commissioner at his offices in Tallahassee.

(2) All other licenses shall be dated and become effective as of the date of issue.

mstory.-§215, ch. 59-205.

626.371 Payment of fees, taxes for unlicensed period.-If upon application and qualification for a license and such investigation thereof as the commissioner may make it appears to the commissioner that ·a formerly licensed applicant has been actively engaged or is currently actively engaged as such a licensee, but without being licensed as in part I of this chapter required, the commissioner may, in his discretion, if he finds that such failure to be licensed was in inadvertent error on the part of the insurer so represented, nevertheless issue the license as applied for but subject to the condition that the applicant shall, before the license is issued, pay to the commissioner all fees and license taxes which would have been due had the applicant been so licensed during such current and prior periods, together with a license continuation fee as provided in §624.0300 for each such current and prior years.

Blstory.-§216, ch. 59-205; §9, ch. 65-269.

626.381 Continuation, expiration of license; general lines agents.-

(1) The license of a general lines agent, and all limited licenses as to motor vehicle physical damage insurance or industrial fire insurance or baggage insurance issued pursuant to §626.321, shall continue in force until suspended, revoked or otherwise terminated, but subject to annual continuation by the insurer named therein on or before September 1 by payment of the fee and license taxes for renewal or continuation of the license as prescribed in §624.-0300 (filing, license and miscellaneous fees), accompanied by the insurer's written request for such renewal or continuation.

Blstory.-§214, ch. 59-205. Note.-slmllar provisions found In former §627.72. (2) Annually on or before September 1, each

insurer shall file with the commissioner the 626.361 Effective date and initial period of alphabetical lists, statements and information

license.- as to licenses being renewed or continued, or (1) All licenses as to which all requisite being terminated, accompanied by payment of

applications, payment of fees and taxes, passing the applicable renewal or continuation fee and

3121


license taxes, as required under §626.501. (3) Any such license as to which request

for renewal or continuation is not received by the commissioner at his offices at Tallahassee as required by subsection (1) shall be deemed to have expired as at midnight on the September 30 next following such failure. Request for renewal or continuation of any such license or payment of fee and license taxes therefor which is received by the commissioner after such September 1, but on or before the next following October 15, may be accepted and effectuated by the commissioner, in his discretion; and any such request and payment received by the commissioner after such October 15, and on or before the next following November 15, may be accepted and effectuated by the commissioner, in his discretion, only if accompanied by an additional license continuation fee as provided in §624.0300.

( 4) The original license certificate issued to any such licensee shall remain outstanding and in effect for so long as the license represented thereby continues in force as hereinabove provided.

(5) This section does not apply as to temporary licenses.

Bistory.-§217, ch. 59-205; (3) §10, ch. 65-269. Note.-Bimllar provisions found tn former §§627.72, 627.74,

627.75, 627.77.

626.391 Same; life, disability, and limited agents.-

(1) Except as otherwise provided in §626.-0213 as to life agents and §626.0308 as to disability agents (military service), each life agent license, disability agent license, together with limited license issued as to personal accident insurance or credit life or credit disability insurance under §626.321, shall continue in force until expired, suspended, revoked or otherwise terminated, but subject to annual continuation by the insurer named therein on or before March 1 by payment of the fee and license taxes for renewal or continuation of the license as prescribed in §624.0300 (filing, license and miscellaneous fees), accompanied by the insurer's written request for such renewal or continuation.

(2) Annually, prior to March 1, each insurer shall file with the commissioner the alphabetical lists, statements and information as to agency appointments and licenses being renewed or continued, or being terminated accompanied by payment of the applicable ~enewal or continuation fees and license taxes, as required under §626.501.

(3) Any such license as to which request for renewal or continuation is not received by the commissioner at his offices at Tallahassee as required by subsection (1) shall be deemed to have expired as at midnight on the March 31 next following such failure. Request for renewal or continuation of any such license or payment of fee and license taxes therefor which is received by the commissioner after such March 1 but on or before the next following April 15 may be accepted and effec-

tuated by the commissioner, in his discretion; any such request and payment received by the commissioner after such April 15 and on or before the next following May li:i, may be accepted and effectuated by the commissioner, in his discretion, only if accompanied by an additional license continuation fee as provided in §624.0300.

( 4) The original license certificate issued to any such licensee shall remain outstanding and in effect for so long as the license represented thereby continues in force, as hereinabove provided.


Bistory.- §218, ch. 59-205; (3) §11, ch. 65-269. Note.-81mllar provisions found tn former U 634.11, 644.11.

626.401 Same; solicitors.-(!) The license of a solicitor shall continue

in force until expired, suspended, revoked or otherwise terminated, but subject to annual continuation by the appointing general lines agent named therein on or before September 1 by payment of the fee and license taxes for annual continuation of license as provided in §624.0300 (filing, license and miscellaneous fees), accompanied by the appointing agent's written request for such continuation.

(2) The appointing agent shall on or before September 1 of each year furnish to the commissioner at his office at Tallahassee the alphabetical lists, statements, and information as to solicitors whose appointments and licenses are being renewed or continued, or terminated, accompanied by payment of the applicable fees and license taxes, as required under §626.501.

(3) Any such license as to which request for renewal or continuation is not received by the commissioner at his offices at Tallahassee as required by subsection (1) shall be deemed to have expired as at midnight on the September 30 next following such failure. Request for renewal or continuation of any such license or payment of fee and license taxes therefor which is received by the commissioner after such September 1 but on or before the next following October 15 may be accepted and effectuated by the commissioner, in his discretion; and any such request and payment received by the commissioner after such October 15 and on or before the next following November 15, may be accepted and effectuated by the commissioner, in his discretion, only if accompanied by an additional license continuation fee as provided in §624.0300.

(4) Any such license shall terminate forthwith upon written request filed with the commissioner either by the appointing agent or the licensee, accompanied by proof satisfactory to the commissioner that written notice of such termination has been given to the appointing agent or licensee, as the case may be. Notice addressed to such other party at his address last of record with the notifying party, postage prepaid and placed in a United States mail depository shall be deemed to have been given when so mailed, for the purposes of this sec-

3122


tion. If not so mailed, notice shall be given by delivery thereof to the licensee.

Hlstory.-§219, ch. 59-205; (3) §12, ch. 65-269.

626.411 Same; adjusters.-( I) The license of an adjuster shall con

tinue in force until expired, suspended, revoked or otherwise terminated, but subject to annual continuation by the employer, in the case of a company employee adjuster, or by the licensee, in the case of public adjusters and independent adjusters, on or before September 1 by payment of the license tax provided in §624.0300 (filing, license and miscellaneous fees) accompanied by written request for such continuation.

(2) Any such license as to which request for renewal or continuation is not received by the commissioner at his offices at Tallahassee as required by subsection (1) shall be deemed to have expired at midnight on the September 30 next following such failure. Request for renewal or continuation of any such license or payment of fee and license taxes therefor which is received by the commissioner after such September 1 but on or before the next following October 15 may be accepted and effectuated by the commissioner, in his discretion; and any such request and payment received by the commissioner after such October 15 and on or before the next following November 15, may be accepted and effectuated by the commissioner, in his discretion, only if accompanied by an additional license continuation fee as provided in §624.0300.

(3) As to any adjuster licensee whose employment or license is being terminated by his employer, information as to the reasons for such termination shall be filed as required under §626.511.


Hlstory.-§220, ch. 59-205; (2) §13, ch. 65-269. Note.--81m!lar provisions found In former §§636.33, 636.42.

626.421 Continuance, expiration of permit; service representatives, claims investigators.-

(!) The permit issued to a claims investigator, unless earlier suspended, revoked or otherwise terminated, shall expire as provided in §626.0417.

(2) The permit issued to a service representative shall continue in force until expired, suspended, revoked or otherwise terminated but subject to annual continuation by the licensee's employer on or before September 1 by payment of the fee provided in §624.0300 (filing, license and miscellaneous fees) accompanied by the employer's written request for the continuation. Any such permit as to which request for renewal or continuation is not received by the commissioner at his office at Tallahassee as required above, shall be deemed to have expired at midnight on the September 30 next following such failure. Request for renewal or continuation of any such permit or payment of fee therefor which is received by the commissioner after such September 1 but on <Jr ~efore the next following October 15 may

be accepted and effectuated by the commissioner, in his discretion; and any such request and payment received by the commissioner after such October 15 and on or before the next following November 15, may be accepted and effectuated by the commissioner, in his discretion, only if accompanied by an additional permit continuation fee as provided in §624.0300.

(3) As to any service representative or claims investigator whose employment or permit is being terminated by his employer, information as to the reasons for such termination shall be filed as required under §626.511.

History.- §221, ch. 59-205; (2) §14, ch. 65-269. Note.--81m!lar provisions found In former §§627.'12, 836.42.

626.431 Effect of expiration of license or permit.-

( I) Upon expiration of any license or permit, as provided in §§626.381-626.421, the individual formerly so licensed or permitted shall be completely without any of the authority or rights theretofore conferred by the license or permit, and shall not thereafter, while without the required license or permit, engage or attempt to engage in any transaction or business for which such a license or permit is required under this code.

(2) No such individual shall again be granted such a license or permit unless and until he applies and fully qualifies therefor as provided in this code, including the taking and passing of any written examination which may be required under applicable provisions; and such an examination shall be required in all cases where application for the new license or permit is made after expiration of two years from the date of expiration or termination of the prior similar license or permit.

History .-§222, ch. 69-205.

626.441 License or permit not transferable. -A license or permit issued under part I of this chapter is valid only as to the individual named therein as licensee or permitee; and is not transferable to another individual.

Hl•tor:r .-§223, ch. 59-205. Note.--slm!lar provisions found In former §621.72.

626.451 Appointment of agents.-(!) Each insurer appointing an agent in

this state shall file the appointment with the commissioner, and at the same time pay the fee and license taxes as prescribed in §624.0300 (filing, license and miscellaneous fees). Every such appointment shall be subject to the issuance of the appropriate agent's license.

(2) As a part of each appointment there shall be a certified statement or affidavit of an appropriate officer or official of the appointing insurer or of its general agent stating what investigation, if any, the insurer or general agent has made concerning the proposed agent and his background, and the insurer's or general agent's opinion to the best of its knowledge and belief as to the moral character, fitness and reputation of the proposed appointee.

(3) In the appointment of a. life agent the

3123


insurer shall also certify therein, if true, that the applicant has the necessary training or that the insurer will guarantee that he will have the necessary training to hold himself out as a life agent; and the insurer shall further certify that it is willing to be bound by the acts of such life agent, within the scope of his employment.

mstory.-§224, ch. 59-205. Note.--slmllar provisions found In former 1§627.74, 627.79,

634.04, 644.05, 644.06.

626.461 Continuation of appointment of agent.-Subject to annual renewal or continuation by the insurer as provided in §626.391, in the case of life agents, disability agents, and agents holding limited licenses under §626.321, and as provided in §626.381 in the case of general lines agents, the insurer's appointment of the agent shall continue in effect until the agent's license is revoked or otherwise terminated, unless written notice of earlier termination of the appointment is filed with the commissioner by either the insurer or the agent.

Blstory.-§225, ch. 59-205. Note.--slmllar provisions found In former §644.11.

626.4 71 Termination of appointment of agent.-

(1) Subject to the agent's contract rights, an insurer may terminate its appointment of any general lines agent, life agent, disability agent, or limited license agent at any time. The insurer shall promptly give written notice of termination to the agent, either by delivery thereof to the agent in person or by mailing it, postage prepaid and addressed to the agent at his address last of record with the insurer or the insurer's general agent. Notice so mailed shall be deemed to have been given when deposited in a United States post office mail depository. As soon as possible and at all events within thirty days after terminating the appointment of an .agent (other. than ~s t? an appointment termmated by the msurer s failure to continue or renew it) the insurer shall file written notice thereof with the commissioner, together with a statement that it has given the agent notice thereof as hereinabove provided.

(2) Upon termination of the appointment of an agent whether by failure to renew or continue the appointment or license or otherwise, the insurer shall file with the commissioner the information required under §626.511.

(3) An agent may ter~inate hi!' .appoi~tment by an insurer at any time, by givmg wntten notice thereof to the insurer and filing a copy of the notice with th~ commissioD;er. Suc,h termination shall be subJect to the msurer s contract rights.

(4) Upon receipt of notice of termination of the agency appointment of an agent, the commissioner shall forthwith terminate the pertinent license of the licensee.

mstory.-§226, ch. 59-205. Note.--slmllar provisions found In former §§627.74, 634.11,

634.12, 644.11, 644.12.

626.481 Termination of appointment of solicitor.-

of a solicitor (other than by failure to renew or continue the appointment as provided in §626.401) shall immediately file written notice thereof with the commissioner, together with a statement that it has given or mailed notice thereof to the solicitor. Notice mailed to the solicitor addressed to him at his address last of record with the agent, postage prepai'd, shall be deemed to be given when placed in a United States post office mail depository.

(2) As to each such termination the appoint-t ing agent shall file with the commissioner the. information relative thereto as required under §626.511.

(3) Upon receipt of the notice of termination of the appointment, the commissioner shall forthwith terminate the solicitor's license.

mstor:r.-§227, ch. 59-205. Note.--slmllar provisions found In former 1627.75.

626.491 Termination of appointment of adjuster, service representative, or claims investi· gator.-

(1) The employer of any adjuster, service representative, or claims investigator, shall promptly file with the commissioner written notice of any termination of the appointment and employment of the licensee or permittee, together with a statement as to the reasons for such termination.

(2) Information, documents, records, and statements furnished or disclosed to the commissioner pursuant to subsection (1), shall be privileged and shall not be basis for or admissible as evidence in any action against the employer.

(3) Upon receiving any such notice of termination the commissioner shall forthwith terminate the license or permit affected thereby.

mstor:r.-§228, ch. 59-205. Note.--stmllar provisions found In former §636.32.

626.501 Alphabetical lists of licenses continued or terminated.-

(1) The insurer in the case of agents, and the appointing general lines agent in the case of solicitors, shall annually, prior to:

(a) March 1, in the case ?f appointments and licenses of life agents, disability agents, and of agents holding limited licenses issued under §626.321, or

(b) September 1, in the case of appointments and licenses of general lines agents or solicitors file with the commissioner an alphabetical li~t for each such license type and class, of the names and addresses of each licensee whose appointment and license in this state is being renewed or is to continue ~n effect, accompanied by payment of the apphcable renewal or continuation fees and license taxes.

(1) An agent terminating the

(2) At the same time the insurer or general lines agent, as the case may be, shall also file with the commissioner an alphabetical list for each such license type and class of the names and addresses of each licensee whose appointment and license in this state is being terminated and is not to remain in effect, accompanied by a statement of the appo~nt~ng insurer

appointment or its general agent or by the appomtmg general

3124


lines agent, as the case may be, and such other reasonable proof as the commissioner may prescribe or accept, that written notice of intention so to terminate his appointment and license has been given to each such licensee. Such notice of intention to terminate may be given, for the purposes of this provision, either by delivery thereof to the licensee or by mailing it postage prepaid and addressed to the licensee at his address last of record with the appointing insurer or appointing general lines agent, as the case may be; notice so mailed shall be deemed to have been given when placed in a mail depository of the United States post office.

(3) As to each such appointment and license being terminated, as referred to in subsection (2), the appointing insurer or general lines agent shall also file with the commissioner the information as to the reasons and facts involved in such termination as required under §626.511.

Hlstory.-§229, ch. 59-205. Note.-simUar provisions found ID former 1§205.45, 627.7'.

626.511 Reasons for termination; privileged information.-

(1) Any insurer terminating the appointment and license of an agent, any general lines agent terminating the appointment and license of a solicitor, and any employer terminating the employment, license or permit of an adjuster, service representative, or claims investigator, whether such termination is by direct action of the appointing insurer, agent, or employer or by failure to renew or continue the appointment and license as in part I of this chapter provided, shall file with the commissioner a statement of the reasons, if any, for and facts relative to such termination. In the case of termination of the appointment of agents, such information may be filed by the insurer or by the insurer's general agent.

(2) In the case of terminations by failure to renew or continue the appointment or license, the information required under subsection (1), shall be filed with the commissioner as soon as possible, and at all events within thirty days, after the date notice of intention not to so renew or continue was filed with the commissioner as required in this chapter. In all other cases the information required under subsection (1) shall be filed with the commissioner at the time of, or at all events within ten days after, notice of the termination was filed with the commissioner as required in part I of this chapter.

(3) Any information, document, record, or statement so furnished or disclosed to the commissioner shall be absolutely privileged and shall not be admissible as evidence in or as basis for any action against the appointing insurer or general lines agent, or employer, or against any representative of any of the foregoing.

Blstory.-§230, ch. 59-205. Note.-Bimllar provisions found In former §§627.74, 627.75,

634.12, 644.12.

for a license as agent, solicitor, or adjuster, or for a permit as service representative or claims investigator, the appointing insurer or its manager or general agent in this state (in the case of agents), or the appointing general lines agent (in the case of solicitors), or the employer (in the case of service representatives, claims investigators, and of adjusters who are not to be self-employed) shall coincidentally with such appointment or employment secure and thereafter keep on file a full detailed credit and/or character report, made by an established and reputable independent credit reporting service, relative to the individual so appointed or employed; except that a life insurer may use its own reporting service for the making of such a report, unless otherwise expressly requested by the commissioner.

(2) Within sixty days after such appointment or employment has been made or commenced, the insurer, manager, general agent, general lines agent, or employer, as the case may be, shall furnish to the commissioner on a form furnished by the commissioner, such information as he may reasonably require relative to such individual and investigation; except, that in the case of a life insurer such information shall be so furnished to the commissioner upon his request.

(3) As to such applicants for adjuster license who are to be self-employed the commissioner shall secure, at the cost of the applicant, a full detailed credit and/or character report, made by an established and reputable independent credit reporting service relative to the applicant.

( 4) Any information so furnished shall be absolutely privileged and shall not be admissible or used as evidence in any action against the insurer, manager, general agent, general lines agent, employer, reporting service, or other persons furnishing the same.

Blstory.-§231, ch. 59-205. Note.-simllar provisions found ID former 1§627.74, 627.75,

634.06, 636.25, 644.06.

626.531 Insurance vending machines.-(1) A licensed resident agent appointed by

the insurer and licensed as to disability insurance (whether under a general lines agent license or otherwise) may solicit applications for and issue policies of personal travel accident insurance by means of mechanical vending machines or other coin-operated devices supervised by him and placed at airports, railroad stations, or bus stations, where transportation tickets for common carriers are sold and of convenience to the traveling public, upon the following conditions only:

(a) That the policy to be so sold provides reasonable coverage and benefits, is reasonably suited for sale and issuance through vending machines, and that use of such a machine therefor in a particular proposed location would be of material convenience to the public;

626.521 Character, credit reports.- (b) That the type of vending machine pro(1) As to each applicant who for the first posed to be used is reasonably suitable and

tbne in this state is applying and qualifying practical for the purpose;

3125


(c) That reasonable means, as determined by the commissioner, are provided for informing the prospective purchaser of any such policy of the coverage and restrictions of the policy;

(d) That prompt refund is provided to the applicant or prospective applicant of money inserted in defective machines and for which no insurance, or a less amount than paid for, is actually received;

(e) Such vending machine shall be so constructed and operated that it shall retain a copy of the application, showing the date, name and address of applicant and beneficiary and the amount of insurance;

(f) No policy of insurance vended through such machine shall be for a period of time longer than forty-eight hours, or for the duration of a specified one-way trip or round trip, as applicable;

(g) Each such machine shall have provided on it or immediately adjacent thereto, in a prominent location, adequate envelopes for the use of patrons of such machines in mailing the policies vended through such machines, or that the policy itself (if designed to permit such procedure) may be mailed without an envelope; and

(h) Such licensed agent shall cause to be inspected and tested each such vending machine with reasonable frequency, and at least once each day on five out of each seven days; and should same not be in good working condition shall cause a notice to be prominently displayed thereon that the same is out of order. Such notice shall be maintained so long as such condition exists.

(2) As to each such vending machine to be so used, the commissioner shall issue to the agent a special vending machine license. The license shall apply to a specific machine or to any machine of identical type which is substituted for it, and shall specify the name and address of the insurer and agent, the name of the policy to be so sold, the serial number of the machine, and the place where the machine is to be in operation. The license shall be subject to termination, suspension, or revocation coincidentally with that of the agent. The commissioner shall also revoke the license as to any machine as to which he finds that any of the conditions upon which the machine was licensed as referred to in subsection (1), have been violated, or no longer exist. Proof of the existence of a subsisting license shall be displayed on or about each such vending machine in use in such manner as the commissioner may reasonably require.

IDstory.-§232, ch. 59-205; (2) §1, ch. 63-20.

626.532 Continuation, expiration of insurance vending machine license.-

(!) The license of a vending machine shall continue in force until expired, suspended, re-

year ?r part thereof for each respective vending machme.

(2) The agent shall on or before September 1 of each year furnish to the commissioner at ~is offic~ at Tallahassee, Florida, a list and mformatwn as to the vending machine licenses being renewed or continued or terminated accompanied by payment of the applicable fees ~uch list shall give the name and address of th~ msurer and agent, name of the policy to be sold serial number of the vending machine, and th~ place where the ~achine is to be in operation.

(3) Any such license as to which request for renewal or continuation is not received by the commissioner at his office at Tallahassee Florida as required by subsection (1) shall b~ deemed to have expired as at midnight on the September 30 next following such failure. Request for renewal or continuation of any such license or payment of fees therefor which is received by the commissioner after such September 1 but on or before the next following October 15 may be accepted and effectuated by the commissioner in his discretion; and any such request and payment received by the commissioner after such October 15 and on or before the next following November 15, may be accepted and effectuated by the commissioner, in his discretion, only if accompanied by an additional license continuation fee of fifteen dollars.

mstory .-§2, ch. 63-20.

626.541 Corporation and business names• officers; associates; notice of changes.- '

(1) Any individually licensed agent or agents, or adjuster or adjusters, doing business und!'lr a firm or corporation name or under any busmess name other than their own individual name or names shall annually on or before September 1 file with the commissioner, on forms furnished by him a written statement of the firm, corporation or business name being so used, the address of any office or offices or places of business making use of such name and the name and residence address of each' director and each officer of the corporation and of each individual associated in such firm or corporation as to the insurance transactions thereof or in the use of such business name.

(2) In the event of any change of such name, or directors or officers, or of any of such addresses, or in the personnel so associated written notice of such change shall promptly be filed with the commissioner by or on behalf of those licensees terminating any such firm corporation, or business name or continuing t~ operate thereunder.

Hlstory-§233, ch. ~9-205.

626.551 Notice of change of address.-Every licensed agent or adjuster shall promptly notify the commissioner in writing of a change of his principal business address.

Hlstory.-§234, ch. 59-205. Note.-Bimllar provisions found In former §§634.1~, 644.1~.

voked, or otherwise terminated, but subject to 626.561 Reporting and accounting for annual continuation by the agent named therein funds.-on or before September 1 by payment of the (1) A 11 premiums, return premiums or other fee as provided in §624.0300, for each license funds belonging to insurers or others received

3126


by an agent, solicitor or adjuster in transactions under his license shall be trust funds so received by the licensee in a fiduciary capacity, and the licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured or other person entitled thereto.

(2) Any agent, solicitor or adjuster who, not being lawfully entitled thereto, diverts or appropriates such funds or any.portion thereof to his own use, shall upon conviction be guilty of larceny by embezzlement and shall be punished as provided by law.

Hlstory.-§235, ch. 59-205.

626.571 Delinquent agencies; notice of trusteeship.-If any agent or agency becomes delinquent in payment of accounts owing to the insurer or insurers represented by the agent or agency, and a trusteeship or similar arrangement for the administration of the affairs of the agent or agency is instituted, the insurer or insurers involved therein shall immediately give written notice thereof to the commissioner. The notice shall state the name and address of each such agent, the circumstances and estimated amount of delinquency, and such other information as the insurer deems pertinent or as the commissioner may reasonably require.

Blstory.-§236, ch. 59-205.

626.581 Commissions contingent upon adjustment savings prohibited.-

(!) It shall be unlawful for any insurer to enter into any agreement or understanding with its general or state agent or for any insurer, either directly or through its general or state agent, to enter into any agreement or understanding with any local resident agent of such insurer in this state, the effect of which is to make the net amount of any such agent's commissions on policies of insurance negotiated and issued by such insurer in this state contingent upon savings effected in the adjustment, settlement and payment of losses covered by such insurer's policies, and in pursuance of which agreement or understanding the agent acts as adjuster for claims under such policies and pays claims incurred by such insurer under the policies from a stated percentage of the premiums collected or remitted to the &gent thereon and retained by him; and any such agreements and understandings now existing are declared unlawful and shall be terminated immediately.

(2) Nothing in this section shall be construed to apply to or affect any contingent commissions agreement under which the general or state agent or local resident agent does not pay claims arising under policies of the insurer he represents from a stated percentage of premiums collected by him or remitted to such agent and retained by him.

History .-§237, ch. 59-205. Note.-simllar provisions found In former §627.0100.

626.591 Same; penalty for violation.-If any insurer or agent is found by the commissioner to be in violation of §626.581 the commissioner

may, in his discretion, suspend or revoke the insurer's certificate of authority and the agent's license. Any such suspension or revocation shall be for a period of not less than six months, and the insurer or agent shall not subsequently be authorized or licensed to transact insurance unless the commissioner is satisfied that the insurer or agent will not again violate any of the provisions of §626.581.

Blstory.-§238, ch. 59-205. Note.-slmllar provisions found In former §§627.0101, 627.0102.

626.601 Improper conduct; inquiry.-(1) The commissioner may, upon his own

motion, and shall, upon a written complaint signed by any interested person and filed with the commissioner, inquire into any alleged improper conduct of any licensed agent, solicitor or adjuster in this state, or of any person holding a permit as service representative or claims investigator under this code.

(2) In the prosecution of such inquiries the agent, solicitor or adjuster shall, whenever so required by the commissioner, cause his books and records to be open for inspection for the purpose of such inquiries.

(3) As a prerequisite to exercising the right or authority to investigate the books and records of such a licensee, the commissioner shall serve upon the licensee a copy of the general charges against him, so as to appraise the licensee of the general purpose, nature, and scope of the investigation or inquiry, and including the name and identity of the person, if any, who may have filed a complaint with the commissioner as referred to in subsection (1) if the investigation is in any way related to such complaint.

(4) Such general charges are not required to allege any facts constituting any alleged improper conduct of the licensee, for such inquiry or investigation is authorized as a factfinding inquiry or investigation for the purpose of determining the existence or non-existence of facts constituting such improper conduct as would justify the commissioner in instituting proceedings to suspend or revoke the license of any such licensee as hereinafter in this chapter provided.

(5) Service of such copy of general charges may be made by delivering copy to the licensee or mailing same by registered or certified mail with return receipt requested addressed to him at his business or residence address. If so mailed, notice shall be deemed to have been given when deposited in a mail depository of the United States post office.

(6) The charges or complaints against any agent, solicitor or adjuster may be informally alleged and need not be in any such language as is necessary to charge a crime on an indictment or information.

(7) The expense for any hearings or investigations under this law, as well as the fees and mileage of witnesses, may be paid out of the appropriate fund.

Hl•tory.-§239, ch. 59-205. Note.-.stmllar provisions found In former §626.28.

3127


626.611 Grounds for compulsory refusal, suspension, revocation of license or permit.The commissioner shall deny, suspend, revoke, or refuse to renew or continue the license of any agent, solicitor, or adjuster, or the permit of any service representative or claims investigator if he finds after notice and hearing thereon as provided for in §626.631 that as to the applicant, licensee or permittee any one or more of the following applicable grounds exist:

(1) Lack of one or more of the qualifications for the license or permit as specified in this code.

(2) Material misstatement, misrepresentation or fraud in obtaining the license or permit, or in attempting to obtain the same.

(3) Failure to pass to the commissioner's satisfaction any examination required under this code.

( 4) If the license or permit is wilfully used, or to be used, to circumvent any of the requirements or prohibitions of this code.

(5) Wilful misrepresentation of any insurance policy or annuity contract or wilful deception with regard to any such policy or contract, done either in person or by any form of dissemination of information or advertising.

(6) If, as an adjuster or claims investigator or agent permitted to adjust claims under this code, he has materially misrepresented to an insured or other interested party the terms and coverage of an insurance contract with intent and for the purpose of effecting settlement of claim for loss or damage or benefit under such contract on less favorable terms than those provided in and contemplated by the contract.

(7) For demonstrated lack of fitness or trustworthiness to engage in the business of insurance.

(8) For demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or permit.

(9) Fraudulent or dishonest practices in the conduct of business under the license or permit.

(10) Misappropriation, conversion or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license.

(11) For rebating, or attempt thereat, or for unlawfully dividing or offering to divide his commission with another.

(12) Has obtained or attempted to obtain or has used or is using a license as agent or solicitor for the purpose of soliciting or handling "controlled business" as such controlled business is defined in an applicable provision of this code.

(13) Wilful failure to comply with, or wilful violation of, any proper order, rule or regulation of the commissioner, or wilful violation of any provision of this code.

Hlsto..,.-§240, ch. 59-205. Note.--BimUar provisions found In former 11827.'1'1, 827.13,

627.94, 634.13, 634.16, 638.37, 638.44, 844.13, 844.18.

626.621 Grounds for discretionary refusal, suspension, revocation of license or permit.The commissioner may, in his discretion, deny, suspend, revoke or refuse to renew or continue the license of any agent, solicitor or adjuster, or the permit of any service representative or claims investigator if he finds after notice and hearing thereon as provided in §626.631 that as to the applicant, licensee or permittee any one or more of the following applicable grounds exist under circumstances for which such denial, suspension, revocation or refusal is not mandatory under §626.611:

(1) For any cause for which issuance of the license or permit could have been refused had it then existed and been known to the commissioner.

(2) Violation of any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or permit.

(3) Violation of any lawful order or rule or regulation of the commissioner.

(4) Failure or refusal, upon demand, to pay over to any insurer he represents or has represented any money coming into his hands belonging to the insurer.

(5) Violation of the provision against "twisting," as defined in §626.0604.

(6) If in the conduct of business under the license or permit he has engaged in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part VII of this chapter, or has otherwise shown himself to be a source of injury or loss to the public or detrimental to the public interest.

(7) Wilful overinsurance of any property insurance risk.

(8) Conviction of a felony. (9) If a life agent, he has violated the code

of ethics. mstor)' .-§241, ch. 59-205. Note.--Bimllar provisions found In former §1825.21, 627.'1'1,

627.93, 634.13, 634.16, 638.37, 636.44, 644.13, 644.16.

626.631 Procedure for refusal, suspension or revocation of license or permit.-

(1) If any licensee or permittee is convicted by a court of a violation of this code, the license or permit of such individual shall thereby be deemed to be immediately revoked, without any further procedure relative thereto by the commissioner.

(2) As to licenses and permits denied by the commissioner upon application therefor, the applicant if aggrieved thereby shall have the right to a hearing thereon and may appeal to the court from any adverse decision of the commissioner relative thereto as provided in general in part II of chapter 624 (the insurance commissioner).

(3) As to licenses or permits issued under part I of this chapter and thereafter suspended or revoked, or renewal or continuation thereof refused by the commissioner except for failure of the licensee to pass any examination required under part I of this chapter, the procedures

3128


hereinafter set forth in this section shall apply. (4) If after an investigation or upon other

evidence the commissioner has reason to believe that there may exist any one or more grounds for the suspension, revocation, or refusal to renew or continue the license of any agent or solicitor or adjuster or the permit of any service representative or claims investigator, as such grounds are specified in §§626.611 and 626.621, the commissioner shall mail written notice of his intention to suspend, revoke, or refuse to renew or continue the license or permit, as the case may be, accompanied by a copy of the charges against the licensee or permittee, to the licensee or permittee and to each insurer represented by a licensee agent or employing a licensee adjuster or permittee, and to the appointing general lines agent as to a licensee solicitor. Such notice and charges shall be mailed by registered mail, addressed to the licensee or permittee at his residence or principal business address last of record with the commissioner, and to the insurer or appointing agent addressed to the insurer or agent at its or his address last of record with the commissioner. The notice shall be deemed given when so addressed and mailed postage prepaid at a United States post office or branch thereof.

(5) If within twenty days after the date of mailing the notice and charges as provided for in subsection (4), neither the licensee or the permittee, nor the insurer or appointing agent have filed with the commissioner at his office in Tallahassee a written answer to such charges coupled with a written request for a hearing thereon, the commissioner may proceed to suspend, revoke, or refuse to renew the license or permit.

(6) If within such twenty days an answer and request for hearing is so filed with the commissioner, the commissioner shall hold a hearing with respect to the charges, the hearing to be held within sixty days of the date of the mailing of the notice and charges referred to in subsection ( 4), unless postponed by mutual consent of the parties. The commissioner shall give the licensee or permittee and each insurer or appointing agent that has filed with him the answer to the charges and request for hearing as provided in subsection (5) written notice of the hearing and of the matters to be considered thereat not less than ten days in advance of the hearing date.

(7) All such hearings shall be conducted under the provisions of §624.0125 (conduct of hearings), and in accordance with other applicable provisions of part II of chapter 624 (the insurance commissioner) including, but not limited to, §§624.0120 (witnesses and evidence), 624.0121 (testimony compelled· immunity from prosecution) and 624.0122 (;arne· penalty for refusal to testify), to the extent that such provisions are not in conflict with the express provisions of this section.

(8) The commissioner's statement of charges, papers, documents, reports or evidence

relative to the subject of a hearing under this section shall not be subject to subpoena without his consent until after the same shall have been published at the hearing, unless after notice to the commissioner and hearing the court determines that the commissioner would not be unnecessarily hindered or embarrassed by such subpoenas.

(9) Following the hearing the commissioner shall make his order thereon as required under §624.0126 (order on hearing) and mail a copy thereof by registered mail to the address last of record in his office of each party to the hearing. If by his findings made upon the hearing the commissioner finds that one or more of the grounds therefor exist as specified in §§626.611 and 626.621, his order shall incorporate the taking of action relative to suspension, revocation, or refusal to renew or continue the license or permit as required under §626.611 or as authorized under §626.621.

Blstor:r.-§242, ch. 59-205, Note.-slmllar provisions found ln former §§627.73, 627.94.

627.0102, 634.13, 636.38, 644.13.

626.641 Duration of suspension or revocation.-

(1) The commissioner shall, in his order suspending a license or permit, specify the period during which the suspension is to be in effect, but such period shall not exceed one year. The license or permit shall remain suspended during the period so specified; subject, however, to any rescission or modification of the order by the commissioner, or modification or reversal thereof by the court, prior to expiration of the suspension period. A license or permit which has been suspended shall not be reinstated except upon request for such reinstatement, but the commissioner shall not grant such reinstatement if he finds that the circumstance or circumstances for which the license or permit was suspended still exist or are likely to recur.

(2) No individual licensed or the permittee under any license or permit which has been revoked by the commissioner, shall have the right to apply for another license or permit under this code within two years from the effective date of such revocation, or, if judicial review of such revocation is sought, within two years from the date of final court order or decree affirming the revocation. The commissioner shall not, however, grant a new license or permit to any individual if he finds that the circumstance or circumstances for which the previous license or permit was revoked still exist or are likely to recur; if an individual's license as agent or solicitor has been revoked upon the ground specified in §626.611 (12) (controlled business), the commissioner shall refuse to grant or issue any new license so applied for.

(3) If licenses as agent or solicitor as to the same individual have been revoked at two separate times, the commissioner shall not thereafter grant or issue any license or permit under this code as to such individual.

3129


(4) During the period of suspension, or after revocation of the license or permit, the former licensee or permittee shall not engage in or attempt to profess to engage in any transaction or business for which a license or permit is required under this code.

Bistory.-§243, ch. 59-205. Note.--simllar provisions found In former § §627.94, 634.13,

636.38, 644.13, 645.12.

626.651 Effect of suspension, revocation upon associated licenses and licensees.-

(1) Upon suspension, revocation or refusal to renew or continue any one license of an agent or solicitor the commissioner shall at the same time likewise suspend or revoke all other licenses held by the licensee under this code.

(2) In case of the suspension or revocation of license of any general lines agent, the license of any and all other agents who are members of such agency, whether incorporated or unincorporated, and any and all solicitors employed by such agency, who knowingly are parties to the act which formed the ground for the suspension or revocati9n may likewise be suspended or revoked for the same period as that of the offending agent; but this shall not prevent any agent or solicitor, except the one whose license was first suspended or revoked, from being licensed as a member of or a solicitor for some other agency. The provisions of this subsection shall not apply to life agents.

(3) The procedures provided for in §626.631 shall likewise apply as to suspensions, revocations and refusals to renew or continue as referred to in subsection (2).

Bistory.-§244, ch. 59-205. Note.--simllar provisions found In former 1§627.93, 627.0100.

626.661 Surrender of license or permit.(1) Though issued to a licensee or permit

tee, all certificates of licenses and permits issued under this chapter are at all times the property of the state of Florida, and upon notice of any suspension, revocation, refusal to renew, failure to renew, expiration or other termination of the license, such license or permit shall no longer be in force and effect.

(2) This section shall not be deemed to require the surrender to the commissioner of any certificate of license or permit, unless such surrender has been requested by the commissioner.

Bistory.-§245, ch. 59-205; §2, ch. 61-105.

626.671 Penalty for violation.-Any individual who knowingly makes a false or otherwise fraudulent application for any license or permit under part I of this chapter, or who knowingly violates any provision of part I of this chapter, shall upon conviction thereof and in addition to any applicable denial, suspension, revocation, or refusal to renew or continue any license or permit, be punishable as for a misdemeanor by a fine of not less than $100 nor more than $1,000 or by imprisonment in the county jail for not more than 6 months, or by both such fine and imprisonment in the dis-

cretion of the court. Each instance of violation ahall be considered a separate offense.

History .-§246, ch. 59-205. Note.--similar provisions found In former §§625.011, 627.96,

627.0103, 634.16, ti44.16.

626.681 Administrative fine in lieu of suspension, revocation of license.-

(1) If, upon procedures provided for in §626.631, the commissioner finds that one or more grounds exist for the suspension, revocation, or refusal to renew or continue any license or permit issued under this chapter, the commissioner may, in his discretion, in lieu of such suspension, revocation or refusal, and except on a second offense or where such suspension, revocation or refusal is mandatory, impose upon the licensee or permittee an administrative penalty in the amount of $100, or if the commissioner has found wilful misconduct or wilful violation on the part of the licensee or permittee, $500. The administrative penalty may, in the commissioner's discretion, be augmented in amount by an amount equal to any commissions received by or accruing to the credit of the licensee in connection with any transaction as to which the grounds for suspension, revocation or refusal related.

(2) The commissioner may allow the licensee or permittee a reasonable period, not to exceed 30 days, within which to pay to the commissioner the amount of the penalty so imposed. If the licensee or permittee fails to pay the penalty in its entirety to the commissioner at his office at Tallahassee within the period so allowed, the licenses or permit of the licensee or permittee shall stand suspended, revoked, or renewal or continuation refused, as the case may be, upon expiration of such period and without any further proceedings.

Blstory.-§247, ch. 59-205.

626.691 Probation.-(1) If, upon procedures provided for in

§626.631, the commissioner finds that one or more grounds exist for the suspension, revocation or refusal to renew or continue any license or permit issued under part I of this chapter the commissioner may, in his discretion, except where an administrative fine is not permissible under §626.681, or where such suspension, revocation or refusal is mandatory, in lieu of such suspension, revocation or refusal, or in connection with any administrative monetary penalty imposed under §626.681, place the offending licensee or permittee on probation for a period, not to exceed two years, as specified by the commissioner in his order.

(2) As a condition to such probation or in connection therewith, the commissioner may specify in his order reasonable terms and conditions to be fulfilled by the probationer during the probation period. If during the probation period the commissioner has good cause to believe that the probationer has violated such terms and conditions or any of them, he shall forthwith suspend, revoke or refuse to renew or continue the license or permit of the

3130


probationer, as upon the original ground or grounds referred to in subsection (1), by his order given to the licensee or permittee and insurers or agents represented by him, without the necessity of further advance notice, hearing, or procedure.

mstory.-§248, ch. 59-205.

626.701 Appeal from the commissioner.Any action, decision, order of the commissioner, or failure of the commissioner to act, decide, or order, relative to any matter which is subject to this chapter, shall be subject to review by the courts as provided in §624.0128 (appeals from the commissioner).

mstory.-§249, ch. 59-205.

626.711 Retaliatory provision, agents.-(1) When under the laws of any other state

any fine, tax, penalty, license fee, deposit of money, or security, or other obligation or prohibition is imposed upon resident insurance agents

of Florida doing business in such other state, then so long as such laws continue in force or are so administered, the same requirements, obligations and prohibitions, of whatever kind, shall be imposed upon every insurance agent of such other state doing business in Florida.

(2) If any insurer permits its insurance contract to be issued in violation of this section, its certificate of authority to do business in Florida shall be suspended for a period of three months.

(3) If any resident agent of Florida shall knowingly countersign any insurance contract in violation of this section, or shall otherwise knowingly violate any of the provisions hereof, his license to write insurance in this state shall be suspended for a period of three months.

( 4) This section does not apply as to life or disability insurance.

History .-§250, ch. 69-205. Note.-slmllar provisions found in former §627.0106,

PART II

GENERAL LINES AGENTS AND SOLICITORS; QUALIFICATIONS AND REQUIREMENTS

626.0100 626.0101 626.0102

626.0103 626.0104 626.0105 626.0106

Short title. Scope of part II. Part II is supplementary to licen-

sing law. Industrial fire insurance defined. Purpose of license. Qualifications for agent license. Requirement as to knowledge, expe-

rience or instruction. 626.0107 Agency firms and corporations; spe-

cial requirements. 626.01071 Corporations, liability of agent. 626.0108 Qualifications for solicitor license. 626.0109 Solicitor's office domicile defined. 626.0110 Who may appoint solicitors; appoint-

ment exclusive. 626.0111 Solicitor's powers; agent's responsi

bility. 626.0112 Temporary license; death, disability,

absence of agent. 626.0113 Same; industrial fire agent; pending

examination.

626.0100 Short title.-Part II of this chapter may be referred to in any legal proceedings as the "general lines agents law."

Blstory-§252, ch. 59-205. Note.-Bimllar provisions found in former §627.71.

626.0101 Scope of part 11.-Part II of this chapter applies only as to:

(1) General lines agents, as defined in §626.041;

(2) Solicitors, as defined in §626.071; and (3) Service representatives, as defined in

§626.081. Blstory.-§251, ch. 59-205. Note.-Bimllar provisions found in former §§627.72, 627.98,

627.0104, 628.12.

626.0102 Part II is supplementary to licensing law.-Part II of this chapter is supplementary to part I of this chapter of the code "the licensing procedures law." '

Wslory.-§253, ch. 59-205.

626.0114

626.0115 626.0116 626.0117

626.0118 626.0119

626.0120 626.0121 626.0122 626.0123

626.0124 626.0125 626.0126 626.0127

Nonresident agents; licensing and restrictions.

Same; service of process. Same; retaliatory provision. Service representatives; application

for permit. Same; managers; activities. Furnishing supplies to unlicensed

agent prohibited; penalty. Branch agencies. Agent's records. Place of business in residence. Compensation of agents; mutual in-

surers. Same; reciprocal insurers. Exchange of business. Sharing commissions; penalty. Rights of agent following termination

of appointment. 626.0128 Appeals.

626.0103 Industrial fire insurance defined.For the purposes of this code "industrial fire insurance" is 'insurance against loss by fire of either buildings and other structures or contents, which may include extended coverage and windstorm insurance, under which the premiums are collected monthly or more often and the face amount of the insurance provided by the policy on one risk is not more than five thousand dollars including the contents of such buildings and other structures and the insurer issuing such policy is operating under a system of collecting a debit by its agents. A temporary license issued pursuant to §626.0113 shall be solely for the purpose of collecting premiums and servicing in force policies, and such licensee shall not directly or indirectly solicit, negotiate or effect contracts of insurance.

Bistory.-§254, ch. 59-205; §1, ch. 67-327. Note.-Bimllar provi.Sion found In former §627.72.

3131


. 626.0104 Purpose of license.-(!) The purpose of a license issued under

this code to a general lines agent or solicitor is to authorize and enable the licensee actively and in good faith to engage in the insurance business as such an agent or solicitor with respect to the general public, and to facilitate the public supervision of such activities in the public interest; and not for the purpose of enabling the licensee to receive a rebate of premium in the form of "commission" or other compensation as an "agent" or "solicitor," or to enable the licensee to receive commissions or other compensation based upon insurance solicited or procured by or through him upon his own interests or those of other persons with whom he is closely associated in capacities other than that of insurance agent or solicitor.

(2) The commissioner shall not grant, renew, continue, or permit to exist any license as such agent or solicitor as to any applicant therefor or licensee thereunder if he finds that the license has been or is being or will probably be used by the applicant or licensee for the purpose of securing rebates or commissions on "controlled business," that is, on insurance written on his own interests or those of his family or of any firm, corporation or association with which he is associated, directly or indirectly, or in which he has an interest other than as to the insurance thereof.

(3) A violation of this section shall be deemed to exist or be probable (as to an applicant for license) if the commissioner finds that during any twelve months period aggregate commissions or other compensation accruing in favor of the applicant or licensee based upon the insurance procured or to be procured (in the case of an applicant for license) by or through the licensee with respect to insurance of his own interests or those of his family or of any firm, corporation or association with which he is associated or in which he is interested as above referred to in subsection (2), have exceeded or will exceed thirty-five per cent of the aggregate amount of commissions and compensation accruing or to accrue in his favor during the same period as to all insurance coverages procured or to be procured by or through him. Except, any general lines agent who, on July 1, 1959, had aggregate commissions or other compensation on controlled business as defined in this section in excess of the aforesaid thirty-five per cent, shall be permitted to continue writing such insurance for the same insured or insureds, so long as the agent continues to hold a general lines agent's license in good standing to transact the same kinds of insurance so written, until the termination of such license by failure to renew or continue, suspension or revocation.

( 4) This section shall not be deemed to prohibit the licensing under a limited license as to motor vehicle physical damage insurance, as provided for in §626.321, any person employed by or associated with a motor vehicle sales or financing agency, with respect to in-

surance of the interest of such agency in a motor vehicle sold or financed by it. This section shall not apply with respect to the interest of a real estate mortgagee in or as to insurance covering such interest, or in the real estate subject to such mortgage,

mstory.-§255, ch. 59-205. Note.--Bimllar provisions found 1n former 1§627.79, 627.93.

626.0105 Qualifications for agent license.The commissioner shall not grant or issue a license as general lines agent as to any individual found by him to be untrustworthy or incompetent or who does not meet each and all of the following qualifications, and unless from the application for license it affirmatively appears:

(1) That the applicant is a natural person of at least twenty-one years of age.

(2) That the applicant is a citizen of the United States; has been a bona fide resident of this state for at least one year last past, and will actually reside in this state at least six months out of each year.

(3) That his place of business will be located in this state and he will be actively engaged in the business of insurance, and will maintain a place of business accessible to the public.

(4) That the license is not being sought for the purpose of writing or handling controlled business, in violation of §626.0104.

(5) That the applicant is qualified as to knowledge, experience, or instruction in the business of insurance and meets the requirements relative thereto as provided in §626.0106.

(6) That the applicant is not a service representative, as defined in §626.081, nor a supervising or managing general agent, as defined in §626.091, nor a special agent or similar service representative of a disability insurer which also transacts property, casualty, or surety insurance; except, that the president, vice-president, secretary or treasurer, including a member of the board of directors, of a corporate insurer, if otherwise qualified under and meeting the requirements of part II of this chapter, may be licensed as a local resident agent.

Blstory.-§256, ch. 59-205. Note.-Bimllar provisions found In former §§627.72, 627.77,

627.79.

626.0106 Requirement as to knowledge, experience or instruction.-

(!) Except as provided in subsection (3), no applicant for a license as a general lines agent (other than as to a limited license as to baggage insurance pursuant to §626.321 (1) (d)) shall be qualified therefor or be so licensed unless within the two years immediately preceding the date his application for license is filed with the commissioner, he has:

(a) Successfully completed c I a s s r o om courses in insurance satisfactory to the commissioner at a school, college, or extension division thereof, approved by the commissioner; or

(b) Completed a correspondence course in insurance satisfactory to the commissioner and

3132

Ch. 626 INSlffiANCE CODE; FIELD REPRESENTATIVES AND OPERATIONS Ch. 626

regularly offered by accredited institutions of higher learning in this state and, except those applying for limited licenses under §626.321, has had at least six months of responsible insurance duties as a substantially full time bona fide employee of an agent, an insurer, their managers, general agents, or representatives, in all lines of insurance set forth in §626.041 (1); or

(c) Had at least one year in responsible insurance duties as a substantially full-time bona fide employee of an agent, an insurer, their managers, general agents, or representatives, in all lines of insurance (exclusive of aviation and wet marine and transportation insurances, but not exclusive of boats of less than thirtysix feet in length or aircraft not held out for hire) as set forth in §626.041 (1), without the education requirement mentioned in paragraphs (a) or (b).

(2) Where applicant's qualifications as required in paragraphs (b) or (c) are based in part upon the periods of employment at responsible insurance duties prescribed therein, the applicant shall submit with his application for license, on a form prescribed by the commissioner, the affidavit of his employer setting forth the period of such employment, that the same was substantially full-time, and giving a brief abstract of the nature of the duties performed by the applicant.

(3) In the case of applicants for license who are enrolled in and actively pursuing classroom courses as referred to in subsection (1) (a), or a correspondence course as specified in subsection (1) (b), the commissioner may in his discretion permit the applicant to file his application for license not earlier than sixty days prior to the completion of such courses and of the six months of insurance employment and experience as referred to in subsection (1) (b), in order that the completion of the courses and of such insurance employment and experience may run concurrently with the sixty day waiting period required under §626.231 (2) for eligibility for examination. An individual who was qualified to sit for an agent's or adjuster's examination at the time he was employed by the commissioner and who while so employed was employed in responsible insurance duties as a full-time bona fide employee shall be permitted to take an examination if application for such examination is made within ninety days after the the date of termination of his employment with the commissioner.

Blstory.-§257, ch. 59-205. Note.-43imllar provisions found 1n former §§627. 79, 627.81,

628.12.

pointed by and licensed as to each property and casualty insurer entering into an agency contract with such agency. Each such appointing insurer as soon as known to it shall comply with this section and shall determine and require that each agent so associated in or so connected with such agency is likewise appointed and licensed as to the same such insurer.

Blstory.-§258, ch. 59-205. Note.-43imUar provision found 1n former §§627.77, 627.86.

626.01071 Corporations, liability of agent.Any general lines insurance agent who is an officer, director, stockholder, or employee of an incorporated general lines insurance agency shall remain personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of this code committed by such licensee or by any person under his direct supervision and control while acting on behalf of the corporation.

Hlstory.-§4, ch. 63-20.

626.0108 Qualifications for solicitor license. -The commissioner shall not grant or issue a license as solicitor as to any individual found by him to be untrustworthy or incompetent, or who does not meet each and all of the following qualifications, and unless from the application for the license it affirmatively appears:

(1) That the applicant is a natural person. (2) That the applicant is a citizen of the

United States and has been a bona fide resident of this state for more than six months last past.

(3) That within the twelve months next preceding the date the application for license was filed with the commissioner, the applicant has completed a course in insurance approved by the commissioner or has had at least six months experience in responsible insurance duties as the substantially full-time employee of an agent, or of an insurer, their managers, general agents, or representatives.

( 4) That the license is not Leing sought for the purpose of writing or handling controlled business, in violation of §626.0104.

(5) That the applicant will be employed by only one agent, which agent will supervise the work of the applicant and his conduct in the insurance business, and that the applicant will spend all of his business time in the employment of the agent, and will be domiciled in the office of the appointing agent as defined in §626.0109.

(6) That as of upon issuance of the license applied for the applicant is not an agent, and is not a service representative, as defined in §626.081, nor a supervising or managing gen-

626.0107 Agency firms and corporations; eral agent, as defined in §626.091. special requirements.-If a partnership, cor- (7) That the appointing agent, if any, has poration or association holds an agency con- endorsed the application, and has obligated himtract all members of the partnership or asso- self thereby to supervise the solicitor's conduct ciation who solicit, negotiate or effect insur- and business. ance contracts, and all officers and stockholders Blstory.-§259, ch. 59-205. of the corporation who solicit, negotiate or Note.-43im!lar provisions found 1n former §§205.45, 627.72, effect insurance contracts are required to 627·80•

qualify and be licensed individually as agents, 626.0109 Solicitor's office domicile defined.and all of such agents shall be individually ap- "Domiciled in the office of the appointing

3133


agent" as used in §626.0108 (5) means that the solicitor shall be housed wholly and completely within the actual confines of the office of the agent whom he represents, together with any such furniture, books, records, equipment and paraphernalia necessary for the conduct of such insurance business. The solicitor shall not maintain any such office or furniture, bo'oks, records, equipment or paraphernalia at any other address or location, nor shall he maintain or make use of any other quarters, or space, or address, for the purpose of the conduct of such business. No advertising or letterhead or telephone listing of the solicitor shall indicate any business address other than that of the agent by whom he is employed. No solicitor may be employed from any location except where an agent licensed to write such lines spends his full time in charge of such location.

Bistory.-§260, ch. 59-205. Note.-slmllar provisions found In former §627.80.

626.0110 Who may appoint solicitors; appointment exclusive.-

(!) Every person duly licensed as a general lines agent, except those holding limited licenses provided for in §626.321, may appoint as solicitors any persons who hold or have qualified for a solicitor's license.

(2) The same individual shall not be licensed as solicitor as to more than one appointing agent at any one time, as the name of such appointing agent is designated in the solicitor's license.

(3) Appointment of a solicitor shall be made as part of the application for license, as provided in §626.171.

History.-§ 261, ch. 59-205. Note.-Bimllar provisions found In former §§205.45, 827.75,

827.85.

626.0111 Solicitor's powers; agent's responsibility.-

(1) A solicitor's license shall not cover any kind of insurance for which the agent by whom he is appointed is not then licensed.

(2) A solicitor, as such, shall not have power to bind an insurer upon or with reference to any risk or insurance contract, or to countersign his name to insurance contracts.

(3) All business transacted by a solicitor under his license shall be in the name of the agent by whom he is appointed, and the agent shall be responsible for all acts of the solicitor within the scope of such appointment.

Blstory.-§262, ch. 59-205. Note.-Blmllar provisions found In former §627.88.

become deceased; or unable to perform his duties as agent because of military service, or illness or other physical or mental disability; or, in the case of a direct writing insurer, as above mentioned, have had his employment or agency appointment terminated by the insurer;

(b) There must be no other person connected with the agent's business who is licensed as a general lines agent.

(c) The proposed temporary licensee must be qualified as for a regular general lines agent's license under this code except as to residence, examination, education, or experience.

(d) Application for the temporary license must be made by the applicant upon statements and affidavit filed with the commissioner on forms as prescribed and furnished by him.

(e) The temporary license shall be issued and be valid for a period of not over six months, and, except as to disabling or confining illness, shall not be renewed either to the then holder of the temporary license or to any other person for or on behalf of the agent, agency, or direct writing insurer.

(f) Under a temporary license the licensee shall not represent as agent any insurer not last represented by the agent so being replaced, nor be licensed as to any additional kind or classification of insurance than those covered by the last existing agency appointments of such replaced agent; except, that if during the temporary license period an insurer withdraws from such agency, the temporary licensee may be appointed and licensed as agent by another like insurer only for"the period remaining under the temporary license originally issued as to such withdrawing insurer or during any renewal of such original license as authorized under paragraph (e), and the agency contract between the licensee and such other insurer shall so provide. This provision shall not be deemed to prohibit termination of its appointment by any insurer.

(g) The holder of a temporary license may be granted a regular agent's license upon taking and successfully completing a classroom course or correspondence course in insurance or having the insurance employment experience as prescribed in §626.0106, and passing an examination as required by §626.221; but the commissioner may waive the requirements as to residence, and the time of taking such examination as prescribed in §626.231 (2).

626.0112 Temporary license; death, disabil-ity, absence of agent.- (2) Except in the case of renewal of a tem-

(1) The commissioner may, in his discre- porary license due to the continuing disability tion, issue a temporary license as agent to a li- of the agent, as defined and provided for in censed agent's employee, family member, busi- paragraph (e), the commissioner shall not grant ness associate, or personal representative, or to to the same individual more than one temporary the representative of a direct writing insurer license during any twelve months period. There of which the agent was the licensed agent in shall be not more than one renewal of the ternthe area served by the agency, for the purpose porary license due to such disabling or confinof continuing or winding up the business af- ing illness of such licensed agent, and such refairs of the agent or agency, all subject to the newal shall follow consecutively the expiration following conditions: of the original temporary license, and in no

(a) The agent so being replaced must have event shall the total period covered by any

3134


original temporary license and the renewal thereof exceed twelve consecutive months.

(3) If a temporary licensee is used to replace an individual whose agency appointment or employment and license has been terminated by the insurer, such latter individual shall not again be appointed or licensed as an agent of the same insurer or affiliated insurers within a period of twenty-four months following the date of such termination.

( 4) If an absent or disabled agent being replaced under a temporary license returns or becomes able to resume the active conduct of the agency, or if the disposition of the affairs of the agency of a deceased or mentally incompetent agent is completed, or the temporary licensee has qualified for a regular license, before expiration otherwise of the temporary license, the temporary license shall thereupon forthwith terminate, and the licensee shall promptly deliver the temporary license certificate to the commissioner at Tallahassee for cancellation.

(5) The applicant for a temporary license shall pay to the commissioner, prior to the issuance thereof, the applicable license fee as specified therefor in §624.0300 (filing, license, and miscellaneous fees).

(6) Except as in this section expressly provided, the holder of a temporary license shall be subject to the same requirements and responsibilities as apply under this code to agents regularly licensed.

History.-§263, ch. 59-205. Note.-Bimllar provisions found In former §627.78.

626.0113 Same; industrial fire agent; pending examination.-

(!) The commissioner may in his discretion, issue a temporary limited license as industrial fire agent, as such a limited license is provided for in §626.321, for a temporary period not exceeding ninety days to an individual otherwise qualified, who is completing the educational or training requirements prescribed in §626.0106, and who will, prior to termination of such ninety day period, take the required examination.

(2) The fee for such a temporary license shall be as specified in §624.0300 (filing, license and miscellaneous fees).


626.0114 Nonresident agents; licensing and restrictions.-

(!) The commissioner may, upon written application and the payment of a license fee as specified therefor in §624.0300 (filing, license and miscellaneous fees), issue a license as a general lines agent to an individual who is otherwise qualified therefor under parts I and II of this chapter (licensing procedures law), but who is not a resident of this state, if by the laws of the state of his residence, residents of this state may be licensed in like manner as a nonresident agent of his state.

(2) The commissioner shall not, however, issue any such license to any nonresident who

has an office or place of business in this state, or who has any direct or indirect pecuniary interest in any insurance agent, insurance agency, or in any solicitor licensed as a resident of this state; nor to any individual who does not, at time of issuance and throughout the existence of the Florida license, hold a license as agent or broker issued by the state of his residence; nor to any individual who is employed by any insurer as a service representative or who is a supervising or managing general agent in any state, whether or not also licensed in another state as an agent or broker. The commissioner shall have discretion to refuse to issue any such license to a nonresident when he has reason to believe that the applicant by ruse or subterfuge is attempting to avoid the intent and prohibitions contained in this subsection, or to believe that any of the grounds exist as for suspension or revocation of license as set forth in §§626.611 and 626.621.

(3) Such a nonresident shall not enter this state for the purpose of inspecting any risk or property without the written permission of the insured, or of a countersigning agent, resident in this state, on such risk. Nor shall he directly or indirectly solicit, negotiate or effect insurance contracts in this state unless accompanied by a countersigning agent, resident in this state, on such risk.

(4) All insurance policies as defined in §627.01011, written under the nonresident agent's license, including those written or issued pursuant to the surplus lines law, part VI of this chapter, on risks or property located in this state must be countersigned by a local agent resident of this state; and it shall be the duty and responsibility of the nonresident agent, and, if called upon to do so by the countersigning agent, of the insurer likewise, to assure that such resident local agent receives the same commission as allowed by the state of residence of the nonresident agent, but in no event shall the resident local agent receive, accept, or retain less than fifty per cent of the usual Florida local agent's commission, or fifty per cent of the nonresident agent's commission, whichever is less, on policies of insurance covering property as defined in §624.0403 and insurance covering in whole or in part real property and tangible personal property, including property floater policies. On all other policies of insurance, including insurance covering motor vehicles, plate glass, burglary, robbery, theft, larceny, boiler and machinery, workmen's compensation, fidelity and surety, bodily injury lfability, and property damage liability, in no event shall he receive, accept, or retain less than twenty-five per cent of the usual Florida local agent's commission or twenty-five per cent of the nonresident agent's commission, whichever is less.

(5) Except as in this section and §§626.0115 and 626.0116 provided, nonresident agents shall be subject to the same requirements as apply to agents resident in this state.

History .-§265, ch. 59-205. Note.-Bimllar provisions found In former §627.8&,

3135


626.0115 Same; service of process.-(1) Each licensed nonresident agent shall

appoint the commissioner as his attorney to receive service of legal process issued against the agent in this state, upon causes of action arising within this state out of transactions under his license. Service upon the commissioner as attorney shall constitute effective legal service upon the agent.

(2) The appointment shall be irrevocable for as long as there could be any cause of action against the agent arising out of his insurance transactions in this state.

(3) Duplicate copies of such legal process against such agent shall be served upon the commissioner by a person competent to serve a summons.

( 4) Upon receiving such service, the commissioner shall forthwith send one of the copies of the process, by registered mail with return receipt requested, to the defendant agent at his last address of record with the commissioner.

(5) The commissioner shall keep a record of the day and hour of service upon him of all such legal process.


626.0116 Sam e; retaliatory provision.When under the laws of any other state any fine, tax, penalty, license fee, deposit of money or security or other obligation, limitation or prohibition is imposed upon resident insurance agents of Florida in connection with the issuance of, and activities under, a nonresident agent's license under the laws of such state as to such Florida agent, including the sharing of commissions, then so long as such laws continue in force or are so administered, the same requirements, obligations, limitations and prohibitions, of whatever kind, shall be imposed upon every insurance agent of such other state doing business in Florida under a nonresident agent's license issued under §626.0114.

Histor;r.-§267, ch. 5£--205.

626.0117 · Service representatives; application for permit.-The application for a permit as service representative (as defined in §626.-081), shall show the applicant's name, residence address, name of employer, position or title, type of work to be performed by the applicant in this state, and such additional information as the commissioner may reasonably require.

History.-§268, ch. 59-205. Note.-Bimllar provisions found In former §627. 72.

. 626.0118 Same; managers; activities.-Individuals employed by insurers, their managers, general agents or representatives as service representatives, and supervising or managing general agents (as defined in §626.091) employed for the purpose of or engaged in assisting agents and solicitors in negotiating and effecting contracts of insurance, shall engage in such activities when, and only when, accompanied by, or at the specific direction in writing of, an agent or solicitor duly licensed as a resident licensee under this code.

Bistory.-§269, ch. 59-205. Note.-Bimllar provisions found In former §627.72.

626.0119 Furnishing supplies to unlicensed agent prohibited; penalty.-

(1) No insurer shall furnish to any agent, or prospective agent named or appointed by it, any blank forms, applications, stationery or other supplies to be used in soliciting, negotiating or effecting contracts of insurance, on its behalf until such agent shall have received from the commissioner a license to act as an insurance agent and shall have duly qualified as such.

(2) Any insurer, or any officer, director or agent thereof violating the provisions of this section shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of $100 for each and every violation, or by imprisonment for not less than 90 days nor more than 6 months in the county jail.

Histor:r.-§270, ch. 59-205. Note.-Bimllar provisions found In former §627.09.

626.0120 Branch agencies.-(!) Each branch place of business estab

lished by an agent or agency firm, corporation, or association, shall be in active full time charge of a licensed general lines agent.

(2) If the agent or agency establishes places of business in more than one county, additional county license tax is payable as provided in §624.0303.

Histor;r.-§271, ch. 59-205. Note.-Bimllar provisions found In former §627.79.

626.0121 Agent's records.-Every agent issuing or countersigning any insurance policy, as defined in §627.01011, must maintain in his office such records of policies written or countersigned by him to enable the insuring public to obtain all necessary information, including daily reports, concerning such policies at least until the expiration date thereof.

Blatory.-§272, ch. 59-205. Note.-Btmllar provisions found In former §627.91.

626.0122 Place of business in residence.No requirement of part II of this chapter that an agent shall maintain within this state a place of business which is accessible to the public shall be deemed to prohibit the maintenance of such a place of business in connection with the place of residence of either the agent or of other persons, if:

(1) A separate room is set aside by the agent for and is actually used as his office or place of business, and

(2) Such room is easily accessible to the public and is in fact in the usual course of his business used by the agent in his dealings with the public, and

(3) The existence of such place of business is suitably advertised, as determined by the commissioner.

Blstor;r.-§273, ch. 59-205.

626.0123 Compensation of agents; mutual insurers.-A mutual insurer may compensate its agents upon such basis as is fixed by agreements between the insurer and its respective agents.

Bistor:r .-§274, ch. 59-205. Note.-Blmllar provisions found In former §627.99.

3136


626.0124 Same; reciprocal insurers.-Each agent of a reciprocal insurer shall be compensated either by commission or by salary, but not by both commission and salary. At the time its certificate of authority is issued, renewed or continued under this code each reciprocal insurer shall certify to the commissioner whether each of its agents will be paid upon a commission basis or upon a salary basis.

History .-§275, ch. 59-205. Note.-8lm1lar provisions found In former §628.12.

626.0125 Exchange of business.-(!) (a) "Excess business" is defined as

risks requiring insurance above the limits of that which the agent's own insurer will accept.

(b) "Rejected business" is defined as risks which an agent's own insurer is authorized to write but rejects for underwriting reasons.

(2) An agent may place only such excess or rejected business for which he is appointed and licensed, and for which the insurer by which he is appointed is authorized to write, with an insurer for which he is not a licensed agent, by placing such business through a licensed agent of such other insurer; provided, however, an agent may place a class of business which his insurer is authorized to write, with an insurer for which he is not a licensed agent, by placing such business through a licensed agent of such insurer, when it is to the best interest of the insured to do so and whether or not it is "rejected business."

(3) The foregoing limitations and restrictions shall not be construed, and shall not apply, to the placing of surplus lines business under the provisions of part VI of this chapter.

Hlstory.-§278, ch. 69-205. Note.-81m1lar provisions found In former §827.811.

626.0126 Sharing commissions; penalty.(1) No agent or solicitor shall divide with

others or share in any commissions payable on account of insurance, except as follows:

(a) A resident agent may divide or share in commissions with his own employed solici-

tors, and with other resident agents appointed and licensed to write the same kind or kinds of insurance.

(b) A resident agent and a nonresident agent, subject to provisions of §626.0114, may divide among themselves commissions as to kinds of insurance for which both are appointed and licensed.

(2) No such licensee shall share a commission with any corporation unless such corporation is an insurance agency.

(3) In addition to other penalties provided therefor, the license of any licensee violating or participating in the violation of this section shall be revoked.

Hlstory.-§277, ch. 59-205. Note.-slmllar provisions found In former §827.89.

626.0127 Rights of agent following termination of appointment.-

(!) Following termination of his agency appointment and license as to an insurer, the agent may for the period herein provided continue to service, and receive from the insurer commissions or other compensation relative to, policies written by him for the insurer during the existence of the appointment and license. He may countersign all certificates or endorsements necessary to continue such policies to the expiration date thereof, including renewal option periods, and collect and remit premiums due thereon, but shall not otherwise, except with the consent of the insurer, change or modify the policy in any way nor increase the hazards insured against therein.

(2) This section does not apply as to agents of direct writing insurers or to agents and insurers between whom the relationship of employer and employee exists.

History .-§278, ch. 69-205. Note.-81m1lar provisions found In former §627.90.

626.0128 Appeals.-Appeals from the actions of the commissioner in the administration of this chapter may be taken as provided in §624.0128 (appeals from the commissioner).

History.-§ 279, ch. 611-200.

PART III LIFE INSURANCE AGENTS

626.0200 626.0201 626.0202

626.0203 626.0204 626.0205

Short title. Scope of part III. Part III is supplementary to licensing

law. Life agent defined. Life insurer defined. Ordinary class insurer and ordinary

variable annuity class insurer defined.

626.0206 Industrial class insurer defined. 626.0207 Ordinary-combination class insurer

defined. 626.0208 Purpose of license. 626.0209 Qualifications for license. 626.0210 Application for license.

626.0211 Application of qualification standards.

626.0212 Veterans administration employees disqualified.

626.0213 :Military service; special provisions. 626.0214 Temporary license; pending exami-

626.0215 626.0216 626.0217 626.0218

nation. Same; executors, administrators. Nonresident agents. Excess or rejected business. Unlawful payment or sharing of com-

missions. 626.02181 Corporations, liability of agent. 626.0219 Representing another insurer in same

industrial debit territory. 626.0220 Code of ethics.

626.0200 Short title.-Part III of this chap- as the "life agent law." ter may be referred to in any legal proceedings -Hiator:r.-§281, ch. 69-205.

3137

Ch. 626 INSURANCE CODE; FIELD REPRESENTATIVES AND OPERATIONS Ch.626

626.0201 Scope of part lli.-Part I~I o.f this chapter applies only as to agents of hfe msurers and to agents who are appointed by and lic~nsed as to the same insurer as to both life and disability insurances.

Blstory.-§280, ch. 59-205.

626.0202 Part Ill is supplementary to licensing law.-Part III of this chapter is s~~plem~ntary to part I of this chapter, the hcensmg procedures law."

mstory.-§282, ch. 59-205.

626.0203 Life agent defined.-For the purposes of part III of this chapter a "life agent" is as defined in §626.051.

Blstory.-§283, ch. 69-205. Note.-81mllar provisions found In former 183•.01. 626.0204 Life insurer defined.-For the p~r

poses of part III of this chapter a "life insurer" means an insurer writing life insurance, fixed dollar annuity contracts and variable annuity contracts, or either of such types of contracts.

Blstory.-§284, ch. 59-205; §8, ch. 61-441. Note.-simllar provisions found In former 1634.01.

626.0205 Ordinary class insurer and ordinary-variable annuity class insurer defined.-

(!) An "ordinary class" insurer is an insurer writing life insurance on the legal reserve plan, for amounts ?f one thousand dollars or more, with premmms payable on the annual, semi-annual, quarterly, monthly or weekly basis.

(2) An "<!rdinary-va.r~able ann~ity class" insurer is an msurer wntmg an ordmary class of insurance which issues annuity contracts providing for payments or values which vary directly according to investment experience.

Bistory.-§285, ch. 59-205; (2) n . by §18, ch. 61-441. Note.-slmllar provisions found In former §634.01.

626.0206 Industrial class insurer defined.An "industrial class" insurer is an insurer writing industrial life insurance, as defined in §627.0301, and as to such insurance operates under a system of collecting a debit by its agent. Blstory.-~286, ch. 59-205. Note.-simllar provisions found In former 163•.01.

626.0207 Ordinary-combination class insurer defined.-An "ordinary-combination class" insurer is an insurer writing both ordinary class insurance and industrial class insurance, as defined in §§626.0205 and 626.0206, respectively.

Blstory.-§287, ch. 59-205. Note.-slmllar provisions found In former §634.01.

626.0208 Purpose of license.-(1) The purpose of a license issued under

this code to a life agent is to authorize and enable the licensee actively and in good f aith to engage in the insurance business as such an agent with respect to the general public, and to facilitate the public supervision of such activities in the public interest; and not for the purpose of enabling the licensee to receive a rebate of premium in the form of "commission" or other compensation as an "agent," or to en· able the licensee to receive commissions or other compensation based upon insurance solicited or procured by or through him upon his own interests or upon those of other persons with

whom he is closely associated in capacities other than as an insurance agent.

(2) The commissioner shall not renew, continue, or permit to exist any license of a life agent if he finds that such licensee obtained, or attempted to obtain, such license not for the purpose of holding himself out to the general public as a life insurance agent but primarily for the purpose of soliciting, negotiating or procuring life insurance or annuity contracts covering himself or members of his family, or officers, directors, stockholders, partners, or employees of a business in which he, or a member of his family is engaged, or the debtors of a firm, association, or corporation of which he is an officer, director, stockholder, partner, or employee.

(3) This section shall not be deemed to prohibit the licensing of any person employed by or associated with a lending or financing institution or creditor, with respect to insurance only, under credit life and/or disability insurance policies which are subject to part VIII of chapter 627, of borrowers from such institution.

Blstory.-§288, ch. 59-205; (2) a. by §1, cb. 61-360. Note.-simllar provisions found In former § §634.05, 634.13.

626.0209 Qualifications for license.-(!) The commissioner shall not grant or is

sue a license as life agent as to any individual found by him to be untrustworthy or incompetent, or who does not meet the following qualifications:

(a) Must be a natural person of at least eighteen years of age.

(b) Must be a citizen of the United States or of Canada, and be a bona fide resident of this state.

(c) Must not be an employee of the United States veterans administration or state service office as referred to in §626.0212, or be on active duty in the armed forces of the United States, as provided in §626.0213.

(d) Must not be a funeral director or undertaker, or an employee or representative thereof, or have an office in or in connection with a funeral establishment.

(e) Must not intend or be likely to use the license primarily for the purpose of writing or handling "controlled business" as referred to in §626.0208.

(f) Must take and pass any examination for license required under §626.221.

(2) An individual who is a bona fide resident of this state shall be deemed to meet the residence requirement of subsection (1) (b), notwithstanding the existence, at time of application for license, of a license in his name on the records of another state as a resident agent of such other state, if the applicant furnishes or the commissioner acquires proof satisfactory to the commissioner that the applicant has made written request for the cancellation of such other license, either to the insurer represented thereunder or to the proper official of the other state.

Blstory.-§289, ch. 59-205. Note.-81mllar provisions found In former §§634.05, 634.06.

3138


626.0210 Application for license.-(1) Application for a license as life agent

shall be made and filed as provided under §626.-171.

(2) In the application the applicant shall set forth:

(a) His full name, age, residence, place of business and occupation for the five years next prior to the date of application;

(b) His qualifications for the license, namely:

1. What efforts he has made or intends to make to familiarize himself with the life insurance laws of this state and with the provisions of the contracts to be negotiated;

2. What insurance experience he has had, if any;

3. What insurance instruction he has had or expects to receive;

(c) Whether he has been refused or has had suspended or revoked a license to solicit insurance by the insurance department or supervising officials of any state;

(d) Whether any insurer or any general agent claims the applicant is indebted under any agency contract or otherwise, and if so, the name of the claimant, the nature of the claim and the applicant's defense thereto, if any;

(e) Whether he has had an agency contract cancelled, and if so, when, by what insurer or general agent, and the reason therefor; and

(f) Such other or additional information as the commissioner may deem proper to enable him to determine the character, experience, ability and other qualifications of the applicant to hold himself out to the public as a life agent.

Blstory.-§290, ch. 59-205. Note.-Simllar provlsloru found In former §634.18.

626.0211 Application of qualification standards.-In determining the competence and qualifications of applicants for license as life agents the commissioner may take into consideration whether the agent will be appointed and licensed as to the ordinary class, or ordinaryvariable annuity class, of life insurance, or as to the industrial class; and in the application of the standards of competence and qualification as provided in this chapter he may require greater degree thereof as to applicants for license as to the ordinary class or ordinaryvariable annuity class of insurance.

Blstory.-§291, ch. 59-205; §9, ch. 61-441.

626.0212 Veterans administration employees disqualified.-N o person employed by the United States veterans administration or state service office shall be licensed as a life agent. The license of any person who accepts such employment shall automatically terminate when the employment commences.

Blstory.-§292, ch. 59-205. Note.-Simllar provisions found In former §634.17.

cense as life agent to any person on active duty in the armed forces of the United States; except, that the existing license of a person when called into active duty may be renewed or continued for a period not to extend beyond the time when the licensee's active continuous service in the armed forces reaches six months duration.

(2) The license of any person who is called into such active duty shall automatically terminate at such time as his active continuous service reaches six months duration.

(3) Any person whose license has terminated as provided in subsection (2), shall if otherwise qualified therefor be entitled to a similar license within twelve months after an honorable discharge if application therefor is made within four years after entry into such service, upon payment of applicable license tax and fees therefor, but without taking or passing an examination.

(4) Any provision of subsections (1), (2), or (3), to the contrary notwithstanding, any person on active duty in the armed forces who held a current and valid license as life agent on April 1, 1957, shall have the privilege of renewing or continuing the license annually.

(5) Any person who has successfully taken and passed an examination for a life agent license and who was entitled to the license but the same was not issued due to his entry into active service with the armed forces .of the United States shall upon being honorably discharged be entitled to be licensed as provided in subsection (3), if such service began within twelve months after he took and successfully passed the examination.

Blstory.-§293, ch. 59-205. Note.-Simllar provisions found In former §634.17.

626.0214 Temporary license; pending examination.-

(1) Each applicant for a life agent's li· cense to represent an insurer of the industrial or ordinary-combination class, may at the insurer's request have issued to him a temporary license for a period not exceeding ninety days, within which ninety day period the applicant must take a written examination as provided in §626.241 (scope of examination). The commissioner shall not issue a temporary license as to an ordinary class agent except as provided in §626.0215.

(2) If the applicant fails to pass the first examination his temporary license terminates unless, in the commissioner's discretion, the applicant is permitted to take a second examination. An applicant permitted to take the second examination must file application therefor and take the examination within the time set by the commissioner. If he fails to pass the second examination his temporary license is then and there terminated.

(3) After failing to pass the second exami· 626.0213 Military service; special provi- nation the applicant is not eligible for a re

sions.- examinatiQn until a sixty day waiting period (1) The commissioner shall not issue a li- has elapsed, at the end of which period he may,

3139


through an insurer, apply for another license just as any other first time applicant.

( 4) The commissioner may refuse to issue such a temporary license pending passage of the examination, as to applicants for license as to any insurer whose applicants have repeatedly and without good cause failed to appear for the examination during the ninety day temporary license period.

(5) If within the ninety day period of such a temporary license, and not later than the expiration date of the license, the applicant holding such license takes and passes personal written examination to the commissioner's satisfaction, a regular license shall be issued to him to complete the license year then current.

(6) Application for the temporary license shall be accompanied by the applicable fee as prescribed in §624.0300 (filing, license and miscellaneous fees). No refund of such a fee shall be made after a temporary license is issued.

mstory.-§294, ch. 59-205. Note.-Bimllar provisions found In former §834.09.

626.0215 Same; executors, administrators.The commissioner, if he is satisfied with the honesty and trustworthiness of the applicant, upon the payment of the required license fee, may issue a temporary life agent's license without requiring the applicant to pass a written examination, as follows:

(1) To the executor or administrator of the estate of a deceased person who at the time of his death was a licensed life agent;

(2) To a surviving next of kin of such a deceased person, if no administrator or executor has been appointed and qualified, but any license issued under this subsection shall be revoked upon issuance of a license to an executor or administrator under subsection (1) ;

(3) No license issued under this section shall be effective for more than ninety days. The commissioner, in his discretion, may renew the license once upon proper application and for good cause.

Blstor;r.-§295, ch. 59-205. Note.-Bimllar provisions found In former §834.10.

626.0216 Nonresident agents.-(1) The commissioner may issue a license

as life agent to a person not resident of this state, upon compliance with the applicable provisions of this code, if the state or province of Canada of such person's residence will accord the same privilege to a resident of this state.

(2) The commissioner may enter into reciprocal agreements with the appropriate official of any such other state or province waiving the written examination of any applicant resident in such other state or province, if:

(a) A written examination is required of applicants for a life insurance agent's license in such other state or province;

(b) The appropriate official of the other state or province certifies that the applicant holds a currently valid license as a life insur-

ance agent in such other state or province and either passed such a written examination or was the holder of a life insurance agent's license prior to the time a written examination was required; and

(c) In such other state or province a resident of this state is privileged to procure a life insurance agent's license upon the foregoing conditions and without discrimination as to fees or otherwise in favor of the residents of such other state or province.

(3) No such applicant or licensee shall have a place of business in this state, nor be an officer, director, stockholder, or partner in any corporation or partnership doing business in this state as a life insurance agency.

(4) If the laws of another state or province of Canada require the sharing of commissions with resident agents of that state or province on applications for life insurance, or life insurance including disability insurance, written by nonresident agents, then the same provisions shall apply when resident agents of that state or province, licensed as nonresident agents of Florida, write applications for insurance on residents of this state.

Blstory.-§296, ch. 59-205; §3, ch. 63-20; §2, ch. 67-91. Note.-Bimllar provisions found In former §634.08.

626.0217 Excess or rejected business.(!) A licensed life agent may place excess

or rejected risks within the class of business for which he is licensed and which the insurer licensing him is authorized to transact, with any other authorized insurer without being required to secure a license as to such other insurer.

(2) "Excess business" is that portion of a risk which is in excess of the amount thereof that the agent's own insurer will accept.

(3) "Rejected business" is a risk that the agent's own insurer is authorized to write but rejects for underwriting reasons, or is willing to accept only on a substandard basis; but which business will be accepted and issued by another authorized insurer at a lower rate.

Blstor;r.-§297, ch. 59-205. Note.-Bimllar provisions found In former §634.0'1.

626.0218 Unlawful payment or sharing of commissions.-

( I) No life insurer or licensed life agent shall pay directly or indirectly any commission or other valuable consideration to any person for services as a life insurance agent within this state, unless such person holds a currently valid license to act as a life insurance agent as required by the laws of this state; except that a life insurer may pay such commission or other valuable consideration to and a licensed life insurance agent may share any commission or other valuable consideration with an incorporated insurance agency in which all employees, stockholders, direCitors or officers who solicit, negotiate or effectuate life insurance contracts are qualified life insurance agents holding a currently valid license as required by the laws of this state.

(2) No person other than a duly licensed life agent shall accept any such commission or

8140


other valuable consideration, except as provided in subsection (1).

(3) This section shall not prevent the payment or receipt of renewal or other deferred ,commissions or pensions to or by any person solely because such person has ceased to hold a license to act as a life insurance agent; and shall not prevent the payment of renewal or other deferred commissions to any incorporated insurance agency solely because any of its stockholders has ceased to hold a license to act as a life insurance agent.

Hlstory.-§298, ch. 59-205; §1, ch. 63-381. :l-=._ . Note.-slmilar provisions found 1n former 1634.17.

626.02181 Corporations, liability of agent.Any life insurance agent who is an officer, director, stockholder, or employee of an incorporated life insurance agency shall remain personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of this code committed by such licensee or by any person under his direct supervision and control while acting on behalf of the corporation.

IDs tory .-§5, ch. 63-20.

626.0219 Representing another insurer in same industrial debit territory.-

(1) No insurer shall employ or appoint to sell weekly premium or industrial insurance in a given debit territory any agent who has within the six months next preceding sold such in-

surance for another insurer in the same or any part of the same debit territory, unless prior to such employment the written approval of the previous insurer is obtained and filed :with the commissioner.

(2) This section shall not be construed as preventing such an individual from representing another insurer in a different debit territory.

Hlstoi'J.-§299, ch. 59-205. Note.-81milar provisions found 1n former §634.04.

626.0220 Code of ethics.-(1) The commissioner shall after consulta

tion with the Florida association of life underwriters adopt a "code of ethics," or continue any such code heretofore so adopted, to govern the conduct of life agents in their relations with the public, other agents and the insurers.

(2) The code of ethics shall apply standards of conduct designed to avoid the commission of acts or the existence of circumstances which would constitute ground for suspension, revocation, or refusal of license under §§626.611 and 626.621, and to avoid the use of unfair trade practices and unfair methods of competition which would be in violation of any provision of part VII of this chapter (trade practices and frauds).

(3) All applicants for license as life agents shall subscribe to the code of ethics.

Hlstoi'J.-§300, ch. 59-205. Note.-81milar provlslons found 1n former §634.03.

PART IV

DISABILITY INSURANCE AGENTS

626.0300 626.0301 626.0302

626.0303 626.0304 626.0305 626.0306

Short title. Scope of part IV. Part IV is supplementary to

ing law. Disability agent defined. Purpose of license. Qualification for license. Application for license.

licens-

626.0300 Short title.-Part IV of this chapter may be referred to in any legal proceedings as the "disability agent law."

mstory .-§302, ch. 59-205.

626.0301 Scope of part IV.-(1) Part IV of this chapter applies only

as to agents of disability insurers, which agents are not appointed or licensed as to the same insurer as to either life insurance, or as to property, casualty, or surety insurance.

(2) Agents appointed and licensed as to the same insurer as to both life insurance and disability insurance are deemed to be "life agents," are not subject to this chapter, but are

626.0307 Veterans administration employees

626.0308 626.0309 626.0310 626.0311 626.0312

disqualified. Military service; special provisions. Nonresident agents. Same; service of process. Excess or rejected business. Unlawful payment or sharing of com-

missions. 626.0313 Corporations, liability of agent.

not subject to part IV of this chapter, but are subject to part I (licensing procedures law) part II (general lines agent law) of this chapter.

( 4) All agents subject to this chapter are "disability agents" as defined in §626.0303.

Wstory.-§301, ch. 59-205. Note.-slmilar provisions found 1n former §644.04.

626.0302 Part IV is supplementary to licensing law.-Part IV of this chapter is supplementary to part I of this chapter, the "licensing procedures law."

History.-§ 303, ch. 59-205. Note.-81mllar provisions found In former §644.17.

subject to part I (licensing procedures law) 626.0303 Disability agent defined.-and part III (life agents law) of this chapter. (1) A "disability agent" is any person ap-

(3) Agents appointed and licensed as to pointed as agent by an insurer to solicit applithe same insurer as to both disability insurance cations for or to negotiate and effectuate conand property or casualty or surety insurance tracts of disability insurance, as such insurare deemed as to be "general lines agents," are ance is defined in §624.0402.

3141

Ch. 626 INSURANCE CODE; FIELD REPRESENTATIVES AND OPERATIONS t;h. 626

(2) Any person who acts for an insurer, or on behalf of a licensed representative of an insurer, to solicit applications for or to negotiate and effectuate disability insurance contracts, whether or not he is appointed as an agent, subagent, solicitor, canvasser, or by any other title, shall be deemed to be a disability agent as defined in this section.

mstor:y.-§304, ch. 59-205. Note.-Slmllar provisions found In former § 644.01,

626.0304 Purpose of Iicense.-(1) The purpose of a license issued under

this code to a disability agent is to authorize and enable the licensee actively and in good faith to engage in the insurance business as such an agent with respect to the general public, and to facilitate the public supervision of such activities in the public interest; and not for the purpose of enabling the licensee to receive a rebate of premium in the form of "commission" or other compensation as an "agent," or to enable the licensee to receive commissions or other compensation based upon insurance solicited or procured by or through him upon his own interests or upon those of other persons with whom he is closely associated in capacities other than as an insurance agent.

(2) The commissioner shall not grant, renew, continue, or permit to exist any license as a disability agent as to any applicant therefor or licensee thereunder if he finds that the license has been or is being or will be used by the applicant or licensee, not for the purpose of holding himself out to the general public as a disability agent, but principally for the purpose of soliciting, negotiating, handling or procuring "controlled business,"-that is, disability insurance covering himself or member of his family, or the officers, directors, stockholders, partners, employees, or debtors of a partnership, association, or corporation, of which he or a member of his family is an officer, director, stockholder, partner or employee, or covering members of an association of which he is a director, officer or employee.

(3) A violation of this section shall be deemed to exist, or be probable (as to applicant for license), if the commissioner finds that during a twelve month period the premium writings represented by such "controlled business" insurance contracts signed, countersigned, issued or sold by the licensee have been, or in the case of applicant for license, probably will be under circumstances found by the commissioner to exist, in excess of premium writings during the same period by the licensee or proposed licensee as represented by disability insurance contracts to the general public other than the classes of persons above classified as "controlled business."

( 4) This section shall not be deemed to prohibit the licensing of any person employed by or associated with a lending or financing institution, with respect to insurance only, under credit life and/or disability insurance policies

which are subject to part VIII of chapter 627, of borrowers from such institution or creditor.

mstor:y.-§305, ch. 59-205. Note.-Simllar provisions found In former §644.13.

626.0305 Qualification for license.-(1) The commissioner shall not grant or

issue a license as disability agent as to any individual found by him to be untrustworthy or incompetent, or who does not meet the following qualifications:

(a) Must be a natural person of at least eighteen years of age.

(b) Must be a citizen of the United States or of Canada, and be a bona fide resident of this state.

(c) Must not be an employee of the United States veterans administration or state service office, as referred to in §626.0307, or be on active duty in the armed forces of the United States, as provided in §626.0308.

(d) Must not intend or be likely to use the license principally for the purpose of writing or handling "controlled business" as referred to in §626.0304.

(e) Must take and pass any examination for license required under §626.221.

(2) An individual who is a bona fide resident of this state shall be deemed to meet the residence requirement of subsection (1) (b), notwithstanding the existence, at time of application for license, of a license in his name on the records of another state as a resident agent of such other state, if the applicant furnishes or the commissioner acquires proof satisfactory to the commissioner that the applicant has made written request for the cancellation of such other license, either to the insurer represented thereunder or to the proper official of the other state.

mstor:y.-§306, ch. 59-205. Note.-Simllar provisions found In former §644.07.

626.0306 Application for license.-(1) Application for a license as disability

agent shall be made and filed as provided under §626.171.

(2) In the application the applicant shall set forth:

(a) His full name; his residence, age, occupation and place of business for five years next preceding the date of application;

(b) Whether he has ever held a license to solicit disability insurance or any other kind of insurance in any state;

(c) Whether he has been refused, or has had suspended or revoked a license to solicit disability insurance or any other kind of insurance in this or any other state;

(d) What insurance experience he has had; (e) What instruction in disability insur

ance and in the insurance laws of this state he has had or expects to have;

(f) Whether any insurer or general agent claims that he is indebted under an agency contract or otherwise, and if so~ the name of the

3142


claimant, the nature of the claim and the applicant's defense thereto;

(g) Whether he has had an agency contract cancelled and if so when, by what insurer or general agent, and the ~easons therefor;

(h) Whether he will devote all or part of his efforts to acting as a disability agent, and, if part only, how much time he will devote to such work, and in what other business or businesses he is engaged or employed;

(i) Whether, if applicant is married, his or her spouse has ever applied for or held a license to solicit disability insurance or any other kind of insurance in any state and whether such license has been refused, suspended, or revoked; and

(j) Such other information as the commissioner may deem proper to enable him to determine the character, experience, ability and other qualifications of the applicant to hold himself out to the public as a disability agent.

Hlstory.-§307, ch. 59-205. Note.-slmllar provisions found In former §644.06.

626.0307 Veterans administration employees disqualified.-No person employed by the United States veterans administration or state service office shall be licensed as a disability agent. The license of any person who accepts such employment shall automatically terminate when the employment commences.

Wstory .-§ 308, ch. 59-205. Note.-slmllar provisions found In former §644.03.

626.0308 Military service; special provi· . sions.-

(1) The commissioner shall not issue a license as disability agent to any person on active duty in the armed forces of the United States; except, that the existing license of a person when called into active duty may be renewed or continued for a period not to extend beyond the time when the licensee's active continuous service in the armed forces reaches six months duration.

(2) The license of any person who is called into such active duty shall automatically terminate at such time as his active continuous services reaches six months duration.

(3) Any person whose license has terminated as provided in subsection (2), shall if otherwise qualified therefor be entitled to a similar license within twelve months after an honorable discharge if application therefor is made within four years after entry into such service, upon payment of applicable license tax and fees therefor, but without taking or passing an examination.

agent license and who was entitled to the license but the same was not issued due to his entry into active service with the armed forces of the United States shall, upon being honorably discharged, be entitled to be licensed as provided in subsection (3), if such service began within twelve months after he took and successfully passed the examination.

Hldory.-§309, ch. 69-206. Note.-slmllar provisions found In former §644.03.

626.0309 Nonresident agents.-(1) The commissioner may issue a license

as a disability agent to a person not a resident of this state, upon compliance with the appli· cable provisions of this code, if the state of such person's residence will accord the same privilege to a resident of this state.

(2) The commissioner may enter into recip· rocal agreements with the appropriate official of any such other state waiving the written examination of any applicant resident in such other state, provided:

(a) A written examination is required of applicants for disability insurance agent's license in such other state;

(b) The appropriate official of the other state certifies that the applicant holds a currently valid license as a disability insurance agent in such other state and either passed such a written examination or was the holder of a disability insurance agent's license prior to the time a written examination was required;

(c) That in such other state, a resident of this state is privileged to procure a disability insurance agent's license upon the foregoing conditions and without discrimination as to fees or otherwise in favor of the residents of such other state.

(3) No such applicant or licensee shall have a place of business in this state, nor be an officer, director, stockholder, or partner in any corporation or partnership doing business in this state as a disability insurance agent.

( 4) If the laws of another state require the sharing of commissions with resident agents of that state on applications for disability insurance written by nonresident agents, then the same provisions shall apply when resident agents of that state, licensed as nonresident agents of Florida, write applications for insurance on residents of this state.

Blstory.-§310, ch. 59-205. Note.-slmllar provisions found In former §644.09.

626.0310 Same; service of process.-The provisions of §626.0115 (nonresident agents; service of process) shall also apply as to nonresident disability insurance agents licensed by the commissioner pursuant to §626.0309.

mstory.-§311, ch. 59-205. (4) Any provision of subsections (1), (2),

or (3) to the contrary notwithstanding, any person on active duty in the armed forces who held a current and valid license as disability 626.0311 Excess or rejected business.-agent on April 1, 1957, shall have the privilege (1) A licensed disability agent may place of renewing or continuing the license annually. excess or rejected risks within the class of busi-

(5) Any person who has successfully taken ness for which he is licensed and which the inand passed an examination for a disability surer licensing him is authorized to transact.

3143


with any other authorized insurer without being required to secure a license as to such other insurer, but subject to the agent's agreement with the insurer licensing bini.

(2) "Excess business" is that portion of a risk which is in excess of the amount thereof that the agent's own insurer will accept.

(3) "Rejected business" is a risk that the agent's own insurer is authorized to write but rejects for underwriting reasons, or is willing to accept only on a substandard basis; but which business will be accepted and issued by another authorized insurer at a lower rate.

( 4) This section shall be construed to permit an agent properly licensed by the commissioner to broker business with another licensed agent in this state, if both such agents are so licensed as to the class of business involved, and where such brokerage arrangement is desired and to the best interest of the insured.

Blstory.-§312, ch. 59-205. Note.-81mllar provisions found ln former §644.10.

626.0312 Unlawful payment or sharing of commissions.-

(1) No disability insurer or licensed disability agent shall pay directly or indirectly any commission or other valuable consideration to any person for services as a disability insurance agent within this state, unless such person holds a currently valid license to act as a disability insurance agent as required by the laws of this state; except that a disability insurer may pay such commission or other valuable consideration to and a licensed disa-

bility insurance agent may share any commission or other valuable consideration with an incorporated insurance agency in which all employees, stockholders, directors or officers who solicit, negotiate or effectuate disability insurance contracts are qualified disability insurance agents holding a currently valid license as required by the laws of this state.

(2) No person other than a duly licensed disability agent shall accept any such commission or other valuable consideration, except as provided in subsection (1).

(3) This section shall not prevent the payment or receipt of renewal or other deferred commissions or pensions to or by any person solely because such person has ceased to hold a license to act as a disability insurance agent; and shall not prevent the payment of renewal or other deferred commissions to any incorporated insurance agency solely because any of its stockholders has ceased to hold a license to act as a disability insurance agent.

mstor:y.-§313, ch. 59-205; §2, ch. 63-381. Note.-81mllar provisions found 1n former 1844.03.

626.0313 Corporations, liability of agent.Any disability insurance agent who is an officer, director, stockholder, or employee of an incorporated disability insurance agency shall remain personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of this code committed by such licensee or by any person under his direct supervision and control while acting on behalf of the corporation.

mstor:y.-§6, ch. 63-20.

PART V

INSURANCE ADJUSTERS

626.0400 Short title. 626.0401 Scope of part V. 626.0402 Part V is supplementary to licensing

law. 626.0403 Public adjuster defined. 626.0404 Independent adjuster defined. 626.0405 Company employee adjuster defined. 626.0406 Claims investigator defined. 626.0407 Nonresident adjuster defined. 626.0408 Emergency adjuster defined. 626.0409 Attorneys at law exempted. 626.0410 Insurers' officers, employees, recip

rocals' representatives may adjust.

626.0411 Agents and solicitors; adjustments by. 626.0412 Licensed independent adjusters re

quired; insurers' responsibility. 626.0413 Adjuster license types; combinations

prohibited. 626.0414 Public adjuster's qualifications, bond.

626.0400 Short title.-Part V of this chapter may be refened to in any legal proceedings as the "insurance adjusters law."

mstory .-~ 315, ch. 59-205. Note.-81mllar provisions found 1n former §636.22.

626.0415 Independent adjuster's qualifications. 626.0416 Company employee adjuster's quali

fications. 626.0417 Claims investigator permit; qualifi

cations and conditions. 626.0418 License, permit classes; company

employee adjusters, claims investigators.

626.0419 Application for license or permit. 626.0420 Relicensing after military service. 626.0421 Temporary license. 626.0422 Nonresident adjusters. 626.0423 Catastrophe or emergency adjusters. 626.0424 Office and records. 626.0425 Exclusive employment, public and

independent adjusters. 626.0426 Adjustments to comply with contract,

law. 626.0427 Rules and regulations; code of ethics.

insurance adjusters and claims investigators as hereinafter in this part V defined.

(2) Unless otherwise required by context, the term "adjusters" as used in this said part applies to all licensees and permittees defined

626.0401 Scope of part V.- herein as any type of adjuster or as a claims (1) Part V of this chapter applies only as to investigator.

3144


(3) Said part V does not apply as to life insurance or annuity contracts.

•Bistory.-§314, ch. 59-205; (3) §2, ch. 65-16. Note.-Slmilar provisions found 1n former 1636.23.

626.0402 Part V is supplementary to licensing law.-Part V of this chapter is supplementary to part I of this chapter, the "licensing procedures law."

mstory.-§ 316, ch. 59-205.

626.0403 Public adjuster defined.-A "public adjuster" is any person, except a duly licensed attorney at law as hereinafter in §626.0409 provided, who, for money, commission, or any other thing of value, acts or aids in any manner on behalf of an insured in negotiating for or effecting the settlement of a claim or claims for loss or damage covered by an insurance contract, or who advertises for employment as an adjuster of such claims; and also includes any person who, for money, commission or any other thing of value, solicits, investigates or adjusts such claims on behalf of any such public ad· juster.

mstory.-§317, ch. 59-205. Note.-Simllar provisions found 1n former §636.23.

626.0404 Independent adjuster defined.-An "independent adjuster" is any person who is self-employed or is associated with or employed by an independent adjusting firm or other independent adjuster, and who undertakes on behalf of an insurer to ascertain and determine the amount of any claim, loss, or damage payable under an insurance contract and/or undertakes to effect settlement of such claim, loss or damage.

mstory.-§318, ch. 59-205. Note.-Simllar provisions found 1n former i636.23.

626.0405 Company employee adjuster de-_.fined.-A "company employee adjuster" is a

person employed on an insurer's staff of adjusters, and who undertakes on behalf of such insurer or other insurers under common control or ownership to ascertain and determine the amount of any claim, loss or damage payable under a contract of insurance, and/or undertakes to effect settlement of such claim, loss or damage.

Bistory.-§319, ch. 59-205. Note.-SlmUar provisions found 1n former §636.23.

626.0406 Claims investigator defined.-A "claims investigator" is a person who is an employee of a currently licensed independent adjuster or adjusting firm or insurer and whose responsibilities shall be as defined in §626.0404 or §626.0405 as for an independent adjuster or company employee adjuster, and who will operate as a student or learner under the instruction and supervision of a licensed insurance adjuster, except that a claims investigator shall not be permitted by his employer to negotiate settlements with the insured or claimant for amounts in excess of one thousand dollars.

History.-§ 320, ch. 59-205. Note.-SimUar provisions found 1n former §636.23.

626.0407 Nonresident adjuster defined.-A "nonresident adjuster" is a person who is not a resident of this state and who is a currently licensed or authorized adjuster in his home state for the type or kinds of insurance he intends to adjust claims for in this state, and who is an employee of an insurer admitted to do business in this state, and who does not maintain an office in this state for the purpose of adjusting losses in this state.

Blstory.-§321, ch. 59-205. Note.-Simllar provisions found 1n former §636.23.

626.0408 Emergency adjuster defined.-A "catastrophe" or "emergency" adjuster is a per~ son who is not a licensed adjuster under part V of this chapter, but who has been designated and certified to the commissioner by insurers as qualified to adjust claims, losses, or damages under policies or contracts of insurance issued by such insurer, whom the commissioner may permit, in the event of a catastrophe or emergency, for the purposes and under the conditions which the commis.sioner shall fix and for the period of the emergency as the commissioner shall determine, to adjust claims, losses, or damages under the policies of insurance issued by the insurers.

mstory.-§322, ch. 59-205. Note.-SlmUar provisions found 1n former §636.23.

626.0409 Attorneys at law exempted.-Attorneys at law duly licensed t? practice law. in the courts of this state, and m good standmg . with the Florida bar, shall not be required to be licensed under the provisions of this code to authorize them to adjust or participate in the adjustment of any claim, loss or damage arising under policies or contracts of insurance.

Blstory.-§323, ch. 59-205. Note.-Simllar provisions found 1n former §636.36.

626.0410 Insurers' officers, employees, reciprocals' represe':ltatives may adjust,.-

(1) Nothing m part V of th1s c~apter shall be construed to prevent an executive ?fficer of any insurer, or a re~ularly. salar~ed employee of an insurer handhng claims with respect to disability insurance, or the duly designated attorneY: or agent au~horized .and acting for subscribers to reciprocal msurers, from adjusting any claim loss or da.mage under any insurance contract of such msurer.

(2) If any such o~cer, .employee, ~ttorney or agent, in connectiOn with the adJustme~t of any such claim, loss or damage engages m any of the misconduct described i!l ~r contemplated by §626.611(6), the commissioner may suspend or revoke the insurer's certificate of authority.

Blstory.-§324, ch. 59-205 ; §3, ch. 65-16. Note.-SimUar provisions found 1n former §636.35.

626.0411 Agents and solicitors; adjustments by.- . h

(1) A licensed insuranc.e agent ~ay, Wit -out being licensed as an adJuster! adJust loss~s for the insurer represented by h1m as agent If so authorized by the insurer. ThP. license of the

3145

------------------------- -- --- ------


agent may be suspended or revoked for violation of or misconduct prohibited by, §626.611 (6).

(2) A licensed insurance solicitor shall not adjust losses unless licensed as an adjuster.

History.-§ 325, ch. 59-205. :Note.-simllar provisions found in former §636.34.

626.0412 Licensed independent adjusters required; insurers' responsibility.-

(!) · An insurer shall not knowingly refer any claim or loss for adjustment in this state to any person purporting to be or acting as an independent adjuster unless such person 1s currently licensed as an independent adjuster under this code.

(2) Before referring any such claim or loss, the insurer shall ascertain from the commissioner whether the proposed independent adjuster is currently licensed as such. Having once ascertained that a particular person is so licensed, the insurer may assume that he will continue to be so licensed until the insurer has knowledge, or receives information from the commissioner, to the contrary.

such contracts as to enable and qualify him to engage in the business of insurance adjuster fairly and without injury to the public or any member thereof with whom he may have business as a public adjuster.

(e) Must have taken and passed any written examination required under §626.221 and related sections of this code.

(2) At the time of application for license as a public adjuster the applicant shall file with the commissioner a bond executed and issued by a surety insurer authorized to transact such business in this state, in the penal sum of five thousand dollars, conditioned for the faithful performance of his duties as a public adjuster under the license applied for. The bond shall be in favor of the commissioner and shall specifically authorize recovery by the commissioner of the damages sustained in case the licensee is guilty of fraud or unfair practices in connection with his business as public adjuster. The aggregate liability of the surety for all such damages shall in no event exceed the penal sum . of the bond.

Blstory.-§328, ch. 59-205; (1) (d) §4, ch. 65-16. :Note.-8imllar provisions found 1n !ormer ~63ti.26.

(3) This section does not apply as to "catastrophe" or "emergency" adjusters as provided for in part V of this chapter.

Hlstory.-§326, ch. 59-205. 626.0415 Independent adjuster's qualifica-626.0413 Adjuster license types; combinations.-The commissioner shall issue a license

tions prohibited.- to an applicant for an independent adjuster's (1) An individual qualified as such under license upon determining that the license fee

this code may be licensed as either a public ad- therefor specified in §624.0300 (filing, license and miscellaneous fees) has been paid, and that

juster or independent adjuster or company em- the applicant possesses the following qualifi- . ployee adjuster. cations:

(2) The same individual shall not be con- · currently licensed as to more than one of the (1) Is a natural person at least twenty-one adjuster types referred to in subsection (1). years of age.

Bistory.-§327, ch. 59-205. (2) Is a citizen of the United States, is a Note.-simllar provisions found in former §636.25. bona fide resident of Florida and has been such 626.0414 Public adjuster's qualifications, a resident for not less than one year immedi-

bond.- ately preceding the date of filing application (1) The commissioner shall issue a license for the license; except, that the commissioner

to an applicant for a public adjuster's license may, in his discretion, waive the requirement upon determining that the applicant has paid for one year residence in this state if the applithe license fee therefor specified in §624.0300 cant is an employee of an adjuster licensed by (filing, license and miscellaneous fees), and the commissioner or an employee of an adjustpossesses the following qualifications: ing firm or corporation supervised by a cur-

( a) Is a natural person at least twenty-one rently licensed adjuster. years of age. . (3) Is trustworthy and has such business

(b) Is a citizen of the United States, and is reputation as reasonably to assure that he a bona fide resident of Florida and has been will conduct his business as insurance adjuster such a resident for not less than one year im- fairly and in good faith and without detriment mediately preceding the date of filing applica- to the public. tion for the license. ( 4) Has had sufficient experience, training

(c) Is trustworthy and has such business or instruction concerning the adjusting reputation as reasonably to assure that he will of damage or loss under insurance contracts conduct his business as insurance adjuster (other than life and annuity contracts), and fairly and in good faith and without detriment is sufficiently informed as to the terms and the to the public. effects of the provisions of such types of con-

(d) Has had sufficient experience, training tracts and possesses adequate knowledge of or instruction concerning the adjusting the insurance. laws of this state relating to of damages or losses under insurance con- such contracts as to enable and qualify him tracts (other than life and annuity contracts), to engage in the business of insurance adjust-· and is sufficiently informed as to the terms er fairly and without injury to the public or and effects of the provisions of those types of any member thereof with whom he may have insurance contracts and possesses adequate relations as an insurance adjuster, and to adknowledge of the laws of this state relating to just all claims in accordance with the policy

3146


or contract and the insurance laws of this state.

(5) Must have taken and passed any written examination required under §626.221 and related sections.

Blstory.-§329, ch. 59-205; (4) §5, ch. 65-16. Note.-similar provisions found In former §636.27.

626.0416 Company employee adjuster's qualifications.-The commissioner shall issue a license to an applicant for a company employee adjuster's license upon determining that the license fee therefor specified in §624.0300 (filing, license and miscellaneous fees) has been paid and that the applicant possesses the following qualifications:

(1) Is a natural person at least twenty-one years of age.

(2) Is a citizen of the United States, and a bona fide resident of Florida.

(3) Is trustworthy and has such business reputation as reasonably to assure that he will conduct his business as insurance adjuster fairly and in good faith and without detriment to the public.

( 4) Has had sufficient experience, training, or instruction concerning the adjusting of damage or loss of risks described in his application, and is sufficiently informed as to the terms and the effects of the provisions of insurance contracts covering such risks, and possesses adequate knowledge of the insurance laws of this state relating to such insurance contracts as to enable and qualify him to engage in such business as insurance adjuster fairly and without injury to the public or any member thereof with whom he may have relations as an insurance adjuster, and to adjust all claims in accordance with the policy or contract and the insurance laws of this state.

(5) Has taken and passed any written examination as required under §626.221 and related sections of this code.

Blstory.-§330, ch. 59-205. Note.-simllar prov1slons found In former §636.28.

626.0417 Claims investigator permit; qualifications and conditions.-Upon the filing of an application for a permit as claims investigator and the advance payment of the registration fee therefor as specified in §624.0300, (filing, license and miscellaneous fees), the commissioner may issue such a permit, but subject to the following conditions:

(1) The applicant must be a natural person of at least twenty years of age; must be a citizen of the United States and a bona fide resident of Florida; must be trustworthy, and must have such business reputation as reasonably to assure that he will conduct his business as claims investigator fairly and in good faith and without detriment to the public;

(2) The applicant's employer is responsible for the adjustment acts of the claims investigator during the twelve months learning period provided for in subsection (6);

(3) The applicant must have had sufficient

instruction concerning the investigation of damage or loss of risks described in his application, and must be sufficiently informed as to the terms and the effect of the provisions of those types of insurance contracts covering such risks, and possess adequate knowledge of the insurance laws of this state relating to such contracts as to enable and qualify him to engage in such business of claims investigator, and to investigate all claims in accordance with the policy or contract and the insurance laws of this state;

(4) The application shall be accompanied by a certificate of employment and a report as to the applicant's integrity and moral character, on a form to be prescribed by the commissioner and executed by the employer;

(5) The applicant must file application for and take an appropriate adjuster's examination as provided in §626.221, and related sections of this code, given by the commissioner within twelve months from the date of the permit. The permit shall automatically be revoked if the applicant fails to take and pass such examination within the twelve months. If, during the twelve months period, the applicant takes and passes the examination, the commissioner shall, upon receipt of adjuster's license tax, issue to him a license as independent adjuster or company employee adjuster, as the case may be;

(6) Under the permit the permittee shall have authority to handle only such classes of business as his supervising licensed adjuster is licens·ed to handle;

(7) The permit shall be effective for a period of twelve months only from its date of issue; and

(8) The commissioner shall not issue a claims investigator's permit to any individual who had ever theretofore held such a permit in this state.

Blstory.-§331, ch. 69-205; §6, ch. 65-16. Note.-slmllar provisions found In former §636.30.

626.0418 License, permit classes; company employee adjusters, claims investigators.-

(!) An applicant for license as a company employee adjuster or claims investigator licensed to represent such an adjuster may qualify as to, and his license or permit when issued may be limited to cover adjusting in, any one of the following classes of insurance or combinations thereof:

(a) Motor vehicle physical damage, as de-fined in §626.321 (1) (a);

(b) Fire and allied lines including marine; (c) Casualty; (d) Workmen's compensation; (e) Boiler and machinery; or (f) Any combination of the foregoing. (2) The applicant's application for license

or permit shall specify which of the foregoing classes of business the application and license or permit are to cover.

History .-§332. ch. 59-205.

3147


626.0419 Application for license or permit.(1) Application for a license or permit un

der part V of this chapter shall be made as provided in §626.171 and related sections of this code.

(2) The commissioner shall so prepare the form of the application as to elicit and require from the applicant the information necessary to enable the commissioner to determine whether the applicant possesses the qualifications prerequisite to issuance of the license or permit to the applicant as set forth in the applicable sections of part V of this chapter.

(3) The commissioner may, in his discretion, require that the application be supplemented by the certificate or affidavit of such person or persons as he deems necessary for his determination of the applicant's residence, business reputation and reputation for trustworthiness. The commissioner shall prescribe and may furnish the forms for such certificates and affidavits.

Blstor;r.-§333, ch. 59-205. Note.-slmllar provisions found In former §636.25.

626.0420 Relicensing after military service. -The commissioner may, without requiring a further written examination, issue a license as adjuster to a formerly licensed adjuster of this state who held a currently effective adjuster's license at the time of entering service in the armed forces of the United States, subject to the following conditions:

(1) The period of military service must not have been in excess of three years;

(2) The application for the license must be filed with the commissioner and the license fee therefor paid, within twelve months following date of honorable discharge of the applicant from the military service; and

(3) The new license will be of the same type and class as that currently effective at the time the applicant entered military service; and if such type and class of license is not being currently issued under this code, the new license shall be of that type and class or classes most closely, in the commissioner's opinion, resembling those of the former license.

mstor;r.-§334, ch. 59-205. Note.-Bimllar provisions found In former §636.33.

626.0421 Temporary license.-The commissioner may, in his discretion, issue a temporary license as independent adjuster or as company employee adjuster, subject to the following conditions:

(1) The applicant must be an employee of an adjuster currently licensed by the commissioner or an employee of an authorized insurer or 'an employee of an established adjusting fir'm or corporation which is supervised by a currently licensed independent adjuster;

(2) The application must be accompanied by a certificate of employment and a report as to applicant's integrity and moral character on a form prescribed by the commissioner and executed by the employer;

(3) One or more of the following reasons or circumstances must exist, or such other reasons or circumstances as in the commissioner's discretion may reasonably necessitate the issuance of the temporary license:

(a) Absence of licensed employee adjuster by reason of death, illness, or other disability, call to military service, vacation, insurance or adjusting schools;

(b) Opening of new offices or expansion of operation on temporary basis and/or unusual or seasonal influx of claims or losses requiring larger staff temporarily;

(c) Termination of license of an employee adjuster; or

(d) Losses or claims involving specialized policies or risks requiring the services of a specially trained adjuster.

(4) Existence of any of the reasons or circumstances referred to in subsection (3), shall be certified by the employer.

(5) The temporary license shall be effective for a period of sixty days, but subject to earlier termination at the request of the employer or if suspended or revoked by the commissioner upon grounds applicable under this code as to adjusters.

(6) In no event shall an adjuster licensed under this section adjust losses in this state after expiration of the temporary license without having taken and passed the written examination as for a regular adjuster's license.

(7) If during the sixty day temporary license period the applicant takes and passes the examination as for a regular license the theretofore temporary license shall continue in effect as a regular license (but subject to expiration, renewal or continuation as provided for adjuster licenses under this code) if the licensee remains continuously employed as referred to in subsection (1), under the supervision of a licensed adjuster or as an employee of an authorized insurer, and if the licensee resides continuously in this state for one year.

(8) The license fee specified therefor in §624.0300 must be paid before issuance of the temporary license.

Blstor;r.-§335, ch. 59-205. Note.-Bimllar provisions found In former §636.29.

626.0422 Nonresident adjusters.-The commissioner shall, upon application therefor, issue a license to an applicant for a nonresident adjuster's license upon determining that the applicant has paid the license fee required under §624.0300 and possesses the following qualifications:

(1) Is a currently licensed insurance adjuster in his home state, if such state requires a license.

(2) Is an employee of an insurer admitted to do business in this state.

(3) Does not maintain an office in this state for the purpose of adjusting losses in this state.

(4) That he has filed a certificate or letter of authorization from the insurance department of his home state, if such state requires an ad-

3148


juster to be licensed, stating that he holds a current license or authorization to adjust insurance losses. Such certificate or authorization must be signed by the insurance commissioner, or his deputy, of the adjuster's home state and reflect whether or not the adjuster has ever had his license or authorization in his home state suspended or revoked and if such is the case, the reason for such action.

Blstor;r.-§336, ch. 59-205. Note.-Bimllar provisions found 1n former §636.31.

626.0423 Catastrophe or emergency adjusters.-

(1) In the event of a catastrophe or emergency, the commissioner may issue a permit, for the purposes and under the conditions which he shall fix and for the period of emergency as he shall determine, to persons who are residents or nonresidents of this state and who are not licensed adjusters under part V of this chapter but who have been designated and certified to him as qualified to act as adjusters by independent resident adjusters or by an authorized insurer or by a licensed general lines agent to adjust claims, losses or damages under policies or contracts of insurance issued by such insurers. The fee for such permit shall be as provided in §624.0300(12) (c).

(2) If any person not a licensed adjuster who has been permitted to adjust such losses, claims or damages under the conditions and circumstances set forth in subsection (1), engages in any of the misconduct described in or contemplated by §§626.611 and 626.621 (grounds for suspension, revocation or refusal of license), the commissioner, without notice and hearing, shall be authorized to issue his order denying such person the privileges granted under this section, and thereafter it shall be unlawful for any such person to adjust any such losses, claims or damages in this state.

Blstor;r.-§337, ch. 59-205. Note.-Bim!lar provisions found 1n former §636.40.

626.0424 Office and records.-(1) Every licensed independent adjuster

and every licensed public adjuster shall have and maintain in this state a place of business accessible to the public, and keep therein the usual and customary records pertaining to

transactions under the license. This provision shall not be deemed to prohibit maintenance of such an office in the home of the licensee. The license of the adjuster shall show the address of his place of business, and the licensee shall promptly give written notice to the commissioner of any change of such address.

(2) The records of the adjuster relating to a particular claim or loss shall be so retained in the adjuster's place of business for a period of not less than one year after completion of the adjustment. This provision shall not be deemed to prohibit return or delivery to the insurer or insured of documents furnished to or prepared by the adjuster and required by the insurer or insured to be returned or delivered thereto.

Bistor;r.-§336, ch 59-2011.

626.0425 Exclusive employment, public and independent adjusters.-

(1) No individual licensed as a public adjuster shall be so employed during the same period by more than one public adjuster or public adjuster firm or corporation.

(2) No individual licensed as an independent adjuster shall be so employed during the same period by more than one independent adjuster or independent adjuster firm or corporation.

Bistor;r.-§339, ch. 69-205.

626.0426 Adjustments to comply with contract, law.-Every adjuster and claim investigator shall adjust or investigate every claim, damage, or loss made or occurring under an insurance contract, in accordance with the terms and conditions of the contract and of the applicable laws of this state.

Bistor;r.-§340, ch. 59-205.

626.0427 Rules and regulations; code of ethics.-The commissioner may promulgate such reasonable rules and regulations as may be necessary for the proper administration of part V of this chapter, including a code of ethics to foster the education of adjusters concerning the ethical, legal and business principles which should govern their conduct.

History.-§ 341, ch. 59-205. Note.-slmllar provisions found 1n former §636.41.

PART VI

626.0500

626.0501

626.0502

626.0503

626.0504 626.0505

626.0506

UNAUTHORIZED INSURERS AND SURPLUS LINES

Representing or aiding unauthorized insurer prohibited.

Penalty for representing unauthorized insurer.

Suits by unauthorized insurers prohibited.

Unauthorized insurers process law; short title; interpretation.

Purpose of process law. Acts constituting commissioner as

process agent. Service of process; judgment by de

fault.

626.0507

626.05071

626.05072

626.0508 626.0509 626.0510

626.0511 626.0512 626.0513

3149

Defense of action by unauthorized insurer; damages and attorney fee.

Jurisdiction of commissioner; service of process on secretary of state.

Penalty for violation by unauthor-ized insurers.

Attorney fee. Exemptions from process act. Surplus lines law; short title; pur-

poses. Definitions. Surplus lines insurance authorized. Eligibility for export.


626.0514 Eligibility for export; wet marine, aviation.

626.0515 Eligible surplus lines insurers. 626.0516 Withdrawal of eligibility; surplus

lines insurer. 626.0517 Export procedure. 626.0518 Surplus lines examining office; filings

confidential. 626.0519 Evidence of the insurance; changes;

penalty. 626.0520 Filing copy of policy or certificate. 626.0521 Information required on contract. 626.0522 Surplus lines insurance valid. 626.0523 Liability of insurer as to losses and

unearned premiums. 626.0524 Licensing of surplus lines agent. 626.0525 Surplus lines agent's bond.

626.0500 Representing or aiding unauthor· ized insurer prohibited.-

(!) No person shall in this state directly or indirectly act as agent for, or otherwise represent or aid on behalf of another, any insurer not then authorized to transact such insurance in this state, in the solicitation, negotiation, procurement or effectuation of insurance or annuity contracts, or renewals thereof, or in the dissemination of information as to coverage or rates, or forwarding of applications, or delivery of policies or contracts, or inspection of risks, or fixing of rates, or investigation or adjustment of claims or losses, or collection or forwarding of premiums, or in any other manner represent or assist such an insurer in the transaction of insurance w.iti1 respect to subjects of insurance resident, located or to be performed in this state.

(2) This section does not apply to: (a) Matters authorized to be done by the

commissioner under the unauthorized insurers process law, §§626.0503 through 626.0509.

(b) Surplus lines insurance when written pursuant to the surplus lines law, §§626.0510 through 626.0534.

(c) Transactions as to which certificate of authority is not required of an insurer, as stated in §624.0201 (exceptions, certificate of authority required).

(3) No insurance contract entered into in violation of this section shall be deemed to have been rendered invalid thereby.

Blstory.-§342, ch. 59-205. eJ.~i~·--simllar provisions found in former §§625.212, 637.83,

626.0501 Penalty for representing unau· thorized insurer.-

(1) Any person who in this state represents or aids an unauthorized insurer in violation of §626.0500 shall upon conviction thereof be guilty of a misdemeanor, and be subject to a fine not in excess of $1,000, or imprisonment in the county jail for not more than 6 months, or by both such fine and imprisonment in the discretion of the court.

626.0526 May accept business from local agents; local agent shall not misrepresent.

626.0527 Records of surplus lines agent. 626.0528 Quarterly report; summary of ex-

ported business. 626.0529 Surplus lines tax. 626.0530 Collection of tax. 626.0531 Accounting for funds; contingent

commissions. 626.0532 Suspension, revocation or refusal of

surplus lines agent license. 626.0533 Special procedure; failure to file re

port or pay tax. 626.0534 Actions against insurer; service of

process. 626.0535 Report and tax of independently pro-

cured coverages. 626.0536 Records produced on order.

for in subsection (1), such violator shall be liable, personally, jointly and severally with any other person or persons liable therefor, for payment of taxes payable on account of such insurance under §626.0535 (report and tax of independently procured coverages).

Blstory.-§343, ch. 59-205. Note.--Bimllar provisions found in former §§837.83, 644.02,

645.14.

626.0502 Suits by unauthorized insurers prohibited.-As to transactions not permitted under §624.0201, no unauthorized insurer shall institute, file, or maintain, or cause to be instituted, filed, or maintained, any suit, action or proceeding in this state to enforce any right, claim or demand arising out of any insurance transaction in this state.

Bistory.-§344, ch. 59-205.

626.0503 Unauthorized insurers process law; short title; interpretation.-

(!) Sections 626.0503 through 626.0509 may be cited as the "unauthorized insurers process law."

(2) Such law shall be so interpreted as to effectuate its general purpose to make uniform the law of those states which enact it. Blstory.-~345, ch. 59-205. N ote.-simllar provisions found in former §625.28.

626.0504 Purpose of process law.-The purpose of the unauthorized insurers process law is to subject certain insurers to the jurisdiction of courts of this state in suits by or on behalf of insureds or beneficiaries under insurance contracts. The legislature declares that it is a subject of concern that many residents of this state hold policies of insurance issued or delivered in the state by insurers while not authorized to do business in this state, thus presenting to such residents the often insuperable obstacle of resorting to distant forums for the purpose of asserting legal rights under such policies. In furtherance of such state interest, the legislature herein provides a method of substituted service of process upon such insurers and declares that in so doing it exercises its power to protect its residents and to define,

(2) In addition to the penalties provided for the purpose of this chapter, what constitutes

3150

ch. 625 insurance code; accounting, investments and ... · ch. 625 insurance code; accounting,...

Documents