F.S. 1985 INSURANCE CODE: ADMINISTRATION AND GENERAL PROVISIONS Ch. 624 tency examination, and of any disciplinary proceeding affecting the licensee; (c) All agent, solicitor, adjuster, and similar license files and records, including original license qualification records and records of disciplinary proceedings 5 years after a licensee has ceased to be qualified for a license; (d) Insurer certificate of authority files over 2 years old, except that the department shall preserve by reproduction or otherwise a copy of the initial certificate of authority of each insurer; (e) All documents and records which have been photographed or otherwise reproduced as provided in subsection (4), if such reproductions have been filed and an audit of the department has been completed for the period embracing the dates of such documents and records; and (f) All other records, documents, and files not expressly provided for in paragraphs (a) through (e). Hlstory.-s. 26, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 1, ch. 79 52; ss. 2, 3, ch. 81 318; ss. 23, 37, 809(1st), ch. 82-243; s. 41, ch. 83 215. 1 Note.-Expires October 1, 1991, pursuant to s. 809(1st), ch. 82 243, and is sched uled 1 624.312 Reproductions and certified copies of records as evidence.- ( 1) Photographs or microphotographs in the form of film or prints of documents and records made under s. 624.311 (4), or made under former s. 624.311 (3) before October 1, 1982, shall have the same force and effect as the originals thereof and shall be treated as originals for the purpose of their admissibility in evidence. Duly certified or authenticated reproductions of such photographs or microphotographs shall be as admissible in evidence as the originals. (2) Upon the request of any person and payment of the applicable fee, the department shall give a certified copy of any record in its office which is then subject to public inspection. (3) Copies of original records or documents in its office certified by the department shall be received in evidence in all courts as if they were originals. Hlstory.-s. 27, ch. 59 205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81 318; ss. 37, 809(1 st), ch. 82 243; s. 42, ch. 83-215. 1 Note.-Repealed effective October 1, 1991, by s. 809(1st), ch. 82-243, and sched uled 1 624.313 Publications.- (1) No later than September 30 of each year, the department shall have printed and made available a list of all insurers authorized to transact insurance in this state during the preceding calendar year. The list shall show, in tabular form, the insurers' assets and liabilities and such other data and information as the department deems essential and shall be based upon the insurers' financial statements filed with the department. (2) The department may prepare and have printed and published in pamphlet or book form the following : (a) Annually a list of all persons licensed as insurance agents in this state; (b) As needed, questions and answers for the use of persons applying for an examination for licensing as agents or solicitors for property, casualty, surety, health, and miscellaneous insurers; 401 (c) As needed, questions and answers for the use of persons applying for an examination for licensing as agents for life and health insurers; and (d) As needed, questions and answers for the use of persons applying for an examination for licensing as adjusters. (3) The department shall sell the publications mentioned in subsection (2) to purchasers at a price fixed by it at not less than the cost of printing and binding such publications, plus packaging and postage costs for mailing; except that the department may deliver copies of such publications free of cost to state agencies and officers, insurance supervisory authorities of other states and jurisdictions, institutions of higher learning located in Florida, the Library of Congress, insurance officers of Naval, Military and Air Force bases located in Florida, and to persons serving as advisers to the department in preparation of the publications. Hlstory.-s. 28, ch. 59 205; ss. 13, 35, ch. 69-106; s. 1, ch. 73-305; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81 318; ss. 24, 37, 809(1st), ch. 82-243. 'Note.-Expires October 1, 1991, pursuant to s. 809(1st), ch. 82-243, and is scheduled 1624.314 Publications; Insurance Commissioner's Regulatory Trust Fund.-The department shall deposit all moneys received from the sale of publications under s. 624.313 in the Insurance Commissioner's Regulatory Trust Fund for the purpose of paying costs for the preparation, printing, and delivery to the department of the publications mentioned in s. 624.313(2), packaging and mailing costs, and banking, accounting, and incidental expenses connected with the sale and delivery of such publications by the department. All moneys so deposited and all funds hereafter transferred to the Insurance Commissioner's Regulatory Trust Fund are appropriated for the uses and purposes above mentioned. Hlstory.-s. 29, ch. 59 205; s. 2, ch. 61-119; ss. 13, 35, ch. 69-106; s. 1, ch. 74-298; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81 318; ss. 37, 809(1st), ch. 82-243. 'Note.-Repealed effective October 1, 1991, by s. 809(1st), ch. 82 243, and sched uled 1624.315 Department; annual report.- (1) As early as reasonably possible, the department shall annually prepare a report to the Legislature and the Governor showing, with respect to the preceding calendar year: (a) Names of the authorized insurers transacting insurance in this state, with abstracts of their financial statements including such summary of their financial condition as it deems proper; (b) Names of insurers whose business was closed during the year, the cause thereof, and amounts of assets and liabilities as ascertainable; (c) Names of insurers against which delinquency or similar proceedings were instituted, and a concise statement of the circumstances and results of each such proceeding; (d) The receipts and estimated expenses of the department for the year; (e) The recommendations of the department as to amendments or supplementation of laws affecting insurance and as to matters affecting the department; (f) Such other pertinent information and matters as the department deems to be in the public interest;
Ch.624 INSURANCE CODE: ADMINISTRATION AND GENERAL PROVISIONS F.S. 1985 (g) A summary of all information reported to the department as required by s. 627.915(1 ); (h) Annually after each regular session of the Legislature, a compilation of the laws of this state relating to insurance. Any such publication may be printed, revised, or reprinted upon the basis of the original low bid; (i) An analysis and summary report of the state of the insurance industry in this state evaluated as of the end of the most recent calendar year. The report shall provide an analysis of the impact of the insurance industry on the economy of the state, the market structure of the insurance industry in this state, the market performance of the insurance industry in this state, and the market conduct of the insurance industry in this state. Such analysis shall contain, in addition to any other information the department may provide to complete the analysis, the following data: 1. Impact of the insurance industry on state econo my.- a. The estimated total amount of investments in this state by type of investment, for example, bonds, mortgages, stocks in Florida corporations, and real estate. b. The estimated total employment. c. The total deposits in Florida financial institutions. d. The total amount of premiums written and premiums earned. e. The total amount of losses paid and losses incurred. f. The total revenues to the state from premium taxes, license taxes and fees, and corporate taxes. 2. Market structure of the insurance industry.- a. A listing of insurers by insurer group giving the market share of each insurer and insurer group by line of insurance. b. The market share of the 10 largest insurer groups by line of insurance. 3. Market performance of the insurance industry.- a. The profitability of each major line of insurance. b. The ratio of premiums earned to losses paid by line of insurance. c. The ratio of premiums earned to losses incurred by line of insurance. 4. Market conduct of the insurance industry.- The number of consumer complaints by line of insurance and type of complaint. (2) The department may contract with outside vendors, in accordance with chapter 287, to compile data in an electronic data processing format that is compatible with the systems of the department. History.-s. 30, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 13, ch. 77-468; ss. 2, 3, ch. 81-318; ss. 25, 37, 809(1st), ch. 82-243; s. 5, ch. 82-386. Note.-Expires October 1, 1991, pursuant to s. 809(1 st), ch. 82-243, and is scheduled 1624.316 Examination of insurers.- (1 )(a) The department shall examine the affairs, transactions, accounts, records, and assets of each authorized insurer and of the attorney in fact of a reciprocal insurer as to its transactions affecting the insurer as often as it deems advisable, except as provided in this section. The examination may include examination of the affairs, transactions, accounts, and records relating directly or indirectly to the insurer and of the assets of the insurer's managing general agents and controlling 402 or controlled person, as defined in s. 625.012. The examination shall be pursuant to a written order of the department. Such order shall expire upon receipt by the department of the written report of the examination. (b) As a part of its examination procedure, the department shall examine each insurer regarding all of the information required by s. 627.915. (c) The department shall examine each insurer according to accounting procedures designed to fulfill the requirements of generally accepted insurance accounting principles and practices and good internal control and in keeping with generally accepted accounting forms, accounts, records, methods, and practices relating to insurers. To facilitate uniformity in examinations, the department may adopt, by rule, the Market and Financial Conduct Examination Handbook of the National Association of Insurance Commissioners, or its successor organization. (2)(a) The department shall examine each domestic insurer not less frequently than every 3 years. The examination shall cover the 3 preceding fiscal years of the insurer and shall be commenced within 12 months of the end of the most recent fiscal year being covered by the examination. The examination may include examination of events subsequent to the end of the most recent fiscal year. In lieu of making its own examination, the department may accept an independent certified public accountant's audit report prepared on a statutory basis consistent with the Florida Insurance Code. The department may not accept the report in lieu of the requirement imposed by paragraph (1)(b). When an examination is conducted by the department for the sole purpose of examining the 3 preceding fiscal years of the insurer within 12 months after the opinion date of an independent certified public accountant's audit report prepared on a statutory basis consistent with the Florida Insurance Code, the cost of the examination as charged to the insurer pursuant to s. 624.320 shall be reduced by the cost to the insurer of the independent certified public accountant's audit reports. (b) The department shall examine each insurer applying for an initial certificate of authority to transact insurance in this state before granting the initial certificate. (c) In lieu of making its own examination, the department may accept a full report of the last recent examination of a foreign insurer, certified to by the insurance supervisory official of another state. (d) The examination by the department of an alien insurer shall be limited to the alien insurer's insurance transactions and affairs in the United States, except as otherwise required by the department. Hlatory.-s. 31, ch. 59-205; ss. 12, 13, 35, ch. 69-106; s. 1, ch. 70-324; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 14, ch. 77-468; ss. 2, 3, ch. 81-318; ss. 26, 37, 809(1st), ch. 82-243; s. 1, ch. 85 245. Note.-Expires October 1, 1991, pursuant to s. 809(1st), ch. 82-243, and is scheduled 1624.317 Investigation of agents, adjusters, administrators, service companies, and others.-lf it has reason to believe that any person has violated or is violating any provision of this code, or upon the written complaint signed by any interested person indicating that any such violation may exist, the department shall conduct
F.S. 1985 INSURANCE CODE: ADMINISTRATION AND GENERAL PROVISIONS Ch. 624 such investigation as it deems necessary of the accounts, records, documents, and transactions pertaining to or affecting the insurance affairs of any: (1) General agent, surplus line agent, adjuster, administrator, service company, or other person. (2) Insurance agent or solicitor, subject to the requirements of s. 626.601. (3) Person having a contract or power of attorney under which he enjoys in fact the exclusive or dominant right to manage or control an insurer. (4) Person engaged in or proposing to be engaged in the promotion or formation of: (a) A domestic insurer; (b) An insurance holding corporation; or (c) A corporation to finance a domestic insurer or in the production of the domestic insurer's business. Hlstory.-s. 32, ch. 59-205; ss. 13, 35, ch. 69-106; s. 1, ch. 70-55; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 27, 37, 809(1st), ch. 82-243; s. 1, ch. 83 203. 'Note.-Expires October 1, 1991, pursuant to s. 809(1st), ch. 82 243, and is sched uled 1624.318 Conduct of examination or investigation; access to records; correction of accounts; appraisals. {1) The examination or investigation may be conducted by the accredited examiners or investigators of the department at the offices wherever located of the person being examined or investigated and at such other places as may be required for determination of matters under examination or investigation. In the case of alien insurers, the examination may be so conducted in the insurer's offices and places in the United States, except as otherwise required by the department. (2) Every person being examined or investigated, and its officers, attorneys, employees, agents, and representatives, shall make freely available to the department or its examiners or investigators the accounts, records, documents, files, information, assets, and matters in their possession or control relating to the subject of the examination or investigation. (3) If the department finds any accounts or records to be inadequate, or inadequately kept or posted, it may employ experts to reconstruct, rewrite, post, or balance them at the expense of the person being examined if such person has failed to maintain, complete, or correct such records or accounting after the department has given him notice and a reasonable opportunity to do so. (4) If the department deems it necessary to value any asset involved in such an examination of an insurer, it may make written request of the insurer to designate one or more competent appraisers acceptable to the department, who shall promptly make an appraisal of the asset and furnish a copy thereof to the department. If the insurer fails to designate such an appraiser or appraisers within 20 days after the request of the department, the department may designate the appraiser or appraisers. The reasonable expense of any such appraisal shall be a part of the expense of examination, to be borne by the insurer. (5) Neither the department nor any examiner shall remove any record, account, document, file, or other property of the person being examined from the offices of such person except with the written consent of such person given in advance of such removal or pursuant to an order of court duly obtained. 403 (6) Any individual who willfully obstructs the department or its examiner in the examinations or investigations authorized by this part is guilty of a misdemeanor and upon conviction shall be punished as provided in s. 624.15. Hlstory.-s. 33, ch. 59-205; ss. 13, 35, ch. 69 106; s. 3, ch. 76-168; s. 1, ch. 77-457 ; ss. 2, 3, ch. 81 318; ss. 28, 37, 809(1st), ch. 82-243.. 'Note.-Expires October 1, 1991, pursuant to s. 809(1st), ch. 82-243, and IS sched uled for review pursuant to s. 11.61 in advance of that date. 1624.319 Examination and investigation reports.- (1) The department or its examiner shall make a full and true written report of each examination. The examination report shall contain only information obtained from examination of the records, accounts, files, and documents of or relative to the insurer examined or from testimony of individuals under oath, together with relevant conclusions and recommendations of the examiner based thereon. The department shall furnish a copy of the examination report to the insurer examined not less than 30 days prior to filing the examination report in its office. If such insurer so requests in writing within such 30-day period, the department shall grant a hearing with respect to the examination report and shall not so file the examination report until after the hearing and after such modifications have been made therein as the department deems proper. (2) The examination report when so filed shall be admissible in evidence in any action or proceeding brought by the department against the person examined, or against its officers, employees, or agents. In all other proceedings, the admissibility of the examination report is governed by the evidence code. The department or its examiners may at any time testify and offer other proper evidence as to information secured or matters discovered during the course of an examination, whether or not a written report of the examination has been either made, furnished, or filed in the department. (3) The department may withhold from public inspection any examination report until filed and may withhold any investigation report for so long as the department deems reasonably necessary to protect the person investigated from unwarranted injury or deems to be in the public interest. (4) After the examination report has been filed pursuant to subsection (1 ), the department may publish the results of any such examination in one or more newspapers published in this state whenever it deems it to be in the public interest. (5) After the examination report of an insurer has been filed pursuant to subsection (1 ), an affidavit shall be filed with the department, not more than 30 days after the report has been filed, on a form furnished by the department and signed by the officer of the company in charge of the insurer's business in this state, stating that he has read the report and that the recommendations made in the report will be considered within a reasonable time. Hlstory.-s. 34, ch. 59 205; ss. 13, 35, ch. 69-106; s. 1, ch. 71-46; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 29, 37, 809(1st), ch. 82-243.. 1 Note.-Expires October 1, 1991, pursuant to s. 809(1st), ch. 82 243, and IS sched uled 1624.320 Examination expenses.- (1) Each insurer so examined shall pay to the depart-
Ch.624 INSURANCE CODE: ADMINISTRATION AND GENERAL PROVISIONS F.S. 1985 ment the expenses of the examination at the rates adopted by the department. Such expenses shall include actual travel expenses, reasonable living expense allowance, compensation of the examiner or other person making the examination, and necessary attendant administrative costs of the department directly related to the examination. Such travel expense and living expense allowance shall be limited to those expenses necessarily incurred on account of the examination and shall be paid by the examined insurer together with compensation upon presentation by the department to such insurer of a detailed account of such charges and expenses after a detailed statement has been filed by the examiner and approved by the department. (2) All moneys collected from insurers for examinations shall be deposited into the Insurance Commissioner's Regulatory Trust Fund, and the department is authorized to make deposits from time to time into such fund from moneys appropriated for the operation of the department. (3) Notwithstanding the provisions of s. 112.061, the department is authorized to pay to the examiner or person making the examination out of such trust fund the actual travel expenses, reasonable living expense allowance, and compensation in accordance with the statement filed with the department by the examiner or other person, as provided in subsection (1) upon approval by the department. (4) When not examining an insurer, the traveling expenses, per diem, and compensation for the examiners and other persons employed to make examinations, if approved, shall be paid out of moneys budgeted for such purpose as regular employees, reimbursements for such traveling expenses and per diem to be at rates no more than as provided in s. 112.061. (5) The department is authorized to pay to regular insurance examiners, not residents of Leon County, Florida, per diem for periods not exceeding 30 days for each such examiner while at the office of the department in Tallahassee, Florida, for the purpose of auditing insurers ' annual statements. Such expenses shall be paid out of moneys budgeted for such purpose, as for regular employees at rates provided in s. 112.061. (6) The provisions of this section shall apply to rate analysts and rate examiners in the discharge of their duties under s. 627.321. Hlstory.-s. 35, ch. 59-205; s. 1, ch. 61 208; s. 1, ch. 63 125; ss. 13, 35, ch. 69-106; ss. 2, 3, ch. 7146; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 30, 37, 809(1st), ch. 82-243. 1Note.-Expires October 1, 1991, pursuant to s. 809(1st), ch. 82-243, and is scheduled 1624.321 Witnesses and evidence.- (1) As to any examination, investigation, or hearing being conducted under tlilis code, the Insurance Commissioner and Treasurer or his designee: (a) May administer oaths, examine and crossexamine witnesses, receive oral and documentary evidence; and (b) Shall have the power to subpoena witnesses, compel their attendance and testimony, and require by subpoena the production of books, papers, records, files, correspondence, documents, or other evidence which is relevant to the inquiry. 404 (2) If any person refuses to comply with any such subpoena or to testify as to any matter concerning which he may be lawfully interrogated, the circuit court of Leon County or of the county wherein such examination, investigation, or hearing is being conducted, or of the county wherein such person resides, may, on the application of the department, issue an order requiring such person to comply with the subpoena and to testify. (3) Subpoenas shall be served, and proof of such service made, in the same manner as if issued by a circuit court. Witness fees, cost, and reasonable travel expenses, if claimed, shall be allowed the same as for testimony in a circuit court. Hlatory.-s. 36, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 31, 37, 809(1st), ch. 82-243. 'Note.-Expires October 1, 1991, pursuant to s. 809(1 st), ch. 82-243, and is scheduled 1624.322 Testimony compelled; immunity from prosecution.- (1) If any natural person asks to be excused from attending or testifying or from producing any books, papers, records, contracts, documents, or other evidence in connection with any examination, hearing, or investigation being conducted by the department or its examiner, on the ground that the testimony or evidence required of him may tend to incriminate him or subject him to a penalty or forfeiture, and shall notwithstanding be directed to give such testimony or produce such evidence, he must, if so directed by the department and the Department of Legal Affairs, nonetheless comply with such direction; but he shall not thereafter be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he may have so testified or produced evidence; and no testimony so given or evidence produced shall be received against him upon any criminal action, investigation, or proceeding. However, no such person so testifying shall be exempt from prosecution or punishment for any perjury committed by him in such testimony, and the testimony or evidence so given or produced shall be admissible against him upon any criminal action, investigation, or proceeding concerning such perjury. No license or permit conferred or to be conferred to such person shall be refused, suspended, or revoked based upon the use of such testimony. (2) Any such individual may execute, acknowledge, and file in the office of the Department of Insurance a statement expressly waiving such immunity or privilege in respect to any transaction, matter, or thing specified in such statement; and thereupon the testimony of such individual or such evidence in relation to such transaction, matter, or thing may be received or produced before any judge or justice, court, tribunal, grand jury, or otherwise; and, if so received or produced, such individual shall not be entitled to any immunity or privileges on account of any testimony he may so give or evidence so produced. Hlstory.-s. 37, ch. 59-205; ss. 11, 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 32, 37, 809(1st), ch. 82-243. 1 Note.-Expires October 1, 1991, pursuant los. 809(1st), ch. 82-243, and is scheduled 1624.324 Hearings.-The department may hold hearings for any purpose within the scope of this code
F.S. 1985 INSURANCE CODE: ADMINISTRATION AND GENERAL PROVISIONS Ch.624 deemed to be necessary. Hlatory.-s. 39, ch. 59 205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 21, ch. 78 95; ss. 2, 3, ch. 81 318; ss. 34, 37, 809(1st), ch. 82-243. 1 Note.-Expires October 1, 1991, pursuant to s. 809(1st), ch. 82 243, and is sched uled 1 624.33 Jurisdiction regarding health or life cover age.- (1) Notwithstanding any other provision of law, and except as provided in this section, any person or other entity which in this state provides life insurance coverage; annuities; or coverage for medical, surgical, chiropractic, physical therapy, speech-language pathology, audiology, professional mental health, dental, hospital, or optometric expenses, or any other health insurance coverage, whether such coverage is by direct payment, reimbursement, or otherwise, shall, upon request, file with the Department of Insurance a copy of Internal Revenue Service form 5500 and attached schedules as filed with the Internal Revenue Service and the United States Department of Labor, and an annual summary, as required by the Employee Retirement Income Security Act of 1974, 29 U.S.C. ss. 1001 et seq., as amended. (2) Any person or entity providing any of the coverages or benefits referred to in subsection (1) which does not meet the filing requirements referred to in subsection (1 ), or which otherwise fails to demonstrate to the department that, while providing such services, it is exempt from state law, shall submit to an examination by the department to determine the organization and solvency of the person or entity and to determine whether or not such entity is in compliance with the applicable provisions of chapters 624-651. (3) A governmental trust which is established or maintained entirely by the state, counties, municipalities, or special taxing districts or any agency or instrumentality thereof or any combination thereof exclusively for the benefit of their employees is exempt from the terms of this section. (4) Any licensed agent, administrator, service company, or other person which, in connection with coverage offered by an entity subject to examination by the department in accordance with subsection (2), is engaged in this state in the solicitation, negotiation, or effectuation of any such coverage or the inspection of risks or the setting of rates, the investigation or adjustment of losses, the collection of premiums, or any other function connected with any such coverage is subject to the jurisdiction of the department and to such examination as the department deems necessary of the accounts, records, documents, and transactions pertaining to or affecting such coverage to the same extent as the person or entity affording such coverage. (5) This section does not apply to an insurer, health care services plan, health maintenance organization, professional service plan corporation, or person providing continuing care, which person or entity possesses a valid certificate of authority issued by the department, except to the extent that such person or entity provides the coverages described in subsection (1) to its employees other than under a policy or contract which is otherwise subject to regulation under chapters 624-651. Hiatory.-s. 2, ch. 83 203; s. 13, ch. 84-70; s. 3, ch. 84-94; s. 1, ch. 85-212. 'Note.-Repealed effective October 1, 1991, by s. 3, ch. 84 94, and scheduled for review pursuant to s. 11.61 in advance of that date. 405 624.34 Authority of Department of Law Enforcement to accept fingerprints of, and exchange criminal history records with respect to, certain persons.- (1) The Department of Law Enforcement may accept fingerprints of organizers, incorporators, subscribers, officers, stockholders, directors, or any other persons involved, directly or indirectly, in the organization, operation, or management of: (a) Any insurer or proposed insurer transacting or proposing to transact insurance in this state. (b) Any other entity which is examined or investigated or which is eligible to be examined or investigated under the provisions of this part. (2) The Department of Law Enforcement may, to the extent provided for by federal law, exchange state, multistate, and federal criminal history records with the department for the purpose of the issuance, suspension, or revocation of a certificate of authority or license to operate in this state. (3) This section does not apply to the licensing of general lines agents and solicitors, life insurance agents, health insurance agents, and insurance adjusters as provided for under chapter 626. Hlatory.-s. 1, ch. 84 131. 624.401 624.402 624.404 624.406 624.407 624.408 624.4081 624.4095 624.410 624.411 624.412 624.413 624.414 624.415 624.416 624.418 624.420 624.421 624.4211 624.422 PART Ill AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS Certificate of authority required. Exceptions, certificate of authority required. General eligibility of insurers for certificate of authority. Combinations of insuring powers, one insurer. Capital funds required; new insurers. Special surplus requirements. Capital and surplus requirements; existing insurers. Premiums written ; restrictions. Permissible insuring combinations without additional capital funds. Deposit requirement; domestic insurers and foreign insurers. Deposit of alien insurers. Application for certificate of authority. Issuance or refusal of authority. Ownership of certificate of authority; return. Continuance, expiration, reinstatement, and amendment of certificate of authority. Suspension, revocation of certificate of authority for violations and special grounds. Order, notice of suspension or revocation of certificate of authority; effect; publication. Duration of suspension; insurer's obligations during suspension period; reinstatement. Administrative fine in lieu of suspension or revocation. Service of process; appointment of Insurance Commissioner and Treasurer as process agent.
Ch.624 INSURANCE CODE: ADMINISTRATION AND GENERAL PROVISIONS F.S. 1985 624.423 624.424 624.4241 624.4245 624.425 624.426 624.428 624.429 624.430 624.436 624.437 624.438 624.439 624.44 624.441 624.442 624443 624.444 624.445 624.446 Serving process. Annual statement and other information. NAIC filing requirements. Change in controlling interest of foreign or alien insurer; report required. Resident agent and countersignature required, property, casualty, surety insurance. Exceptions to resident agent and countersignature law. Licensed agent law, life and health insurances. Retaliatory provision, insurers. Withdrawal of insurer or discontinuance of writing certain classes of insurance. Florida Nonprofit Multiple-Employer Welfare Arrangement Act. "Multiple-employer welfare arrangement" defined ; approval required; penalty. General eligibility. Filing of application. Financial condition, loss reserves, reinsurance, or working capital; determination of inadequacy. Insolvency protection. Annual reports and triennial actuarial reports. Place of business; maintenance of records. Suspension, revocation of approval. Order, notice, duration, effect of suspension or revocation ; administrative fine. Rehabilitation, dissolution. 1624.401 Certificate of authority required.- (1) No person shall act as an insurer, and no insurer or its agents, attorneys, subscribers, or representatives shall directly or indirectly transact insurance, in this state except as authorized by a subsisting certificate of authority issued to the insurer by the department, except as to such transactions as are expressly otherwise provided for in this code. (2) No insurer shall from offices or by personnel or facilities located in this state solicit insurance applications or otherwise transact insurance in another state or country unless it holds a subsisting certificate of authority issued to it by the department authorizing it to transact the same kind or kinds of insurance in this state. (3) This state hereby preempts the field of regulating insurers and their agents and representatives; and no county, city, municipality, district, school district, or political subdivision shall require of any insurer, agent, or representative regulated under this code any authorization, permit, or registration of any kind for conducting transactions lawful under the authority granted by the state under this code. Hlatory.-s. 45, ch. 59-205; s. 1, ch. 61-75; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 64, 809(1st), ch. 82-243. 'Note.- Repealed effective October 1, 1991, by s. 809(1st), ch. 82-243, and scheduled 1624.402 Exceptions, certificate of authority required.-a certificate of authority shall not be required of an insurer with respect to: 406 (1) Investigation, settlement, or litigation of claims under its policies lawfully written in this state, or liquidation of assets and liabilities of the insurer (other than collection of new premiums), all as resulting from its former authorized operations in this state. (2) Transactions involving a policy, subsequent to issuance thereof, covering only subjects of insurance not resident, located, or expressly to be performed in this state at the time of issuance, and lawfully solicited, written, or delivered outside this state. (3) Transactions pursuant to surplus lines coverages lawfully written under 2 part VIII of chapter 626. (4) Reinsurance, when transacted as authorized under s. 624.610. (5) Continuation and servicing of life insurance or health insurance policies or annuity contracts remaining in force as to residents of this state when the insurer has withdrawn from the state and is not transacting new insurance therein. (6) Investment by a foreign insurer of its funds in real estate in this state or in securities secured thereby, if the foreign insurer complies with the laws of this state relating generally to foreign business corporations. Hlatory.- s. 46, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 38, 64, 809(1st), ch. 82-243. Note.-Expires October 1, 1991, pursuant to s. 809(1st), ch. 82-243, and is sched uled Note.-The reference to ' part VIII" of chapter 626 was substituted for ' part VII" by the editors to conform to the renumbering of the part incident to compiling those session laws which affected the subject matter organization of chapter 626 in 1985. 1624.404 General eligibility of insurers for certificate of authority.-to qualify for and hold authority to transact insurance in this state, an insurer must be otherwise in compliance with this code and with its charter powers and must be an incorporated stock insurer, an incorporated mutual insurer, or a reciprocal insurer, of the same general type as may be formed as a domestic insurer under this code; except that: (1) No insurer shall be authorized to transact insurance in this state which does not maintain reserves as required by part I of chapter 625 applicable to the kind or kinds of insurance transacted by such insurer, wherever transacted in the United States, or which transacts insurance in the United States on the assessment premium plan, stipulated premium plan, cooperative plan, or any similar plan. (2) No foreign or alien insurer or exchange shall be authorized to transact insurance in this state unless it is otherwise qualified therefor under this code and has operated satisfactorily for at least 3 years in its state or country of domicile; however, the department may waive the 3-year requirement if the foreign or alien insurer or exchange: (a) Has operated successfully and has capital and surplus of $5 million; (b) Is the wholly owned subsidiary of an insurer which is an authorized insurer in this state; (c) Is the successor in interest through merger or consolidation of an authorized insurer; or (d) Provides a product or service not readily available to the consumers of this state. (3) The department shall not grant or continue authority to transact insurance in this state as to any insurer the management of which is found by it to be incom-
F.S. 1985 INSURANCE CODE: ADMINISTRATION AND GENERAL PROVISIONS Ch. 624 petent or untrustworthy, or so lacking in insurance company managerial experience as to make the proposed operation hazardous to the insurance-buying public, or which it has good reason to believe is affiliated directly or indirectly through ownership, control, reinsurance transactions, or other insurance or business relations, with any person or persons whose business operations are or have been marked, to the detriment of policyholders or stockholders or investors or creditors or of the public, by manipulation of assets, accounts, or reinsurance or by bad faith. (4) No authorized insurer shall act as a fronting company for any unauthorized insurer. A "fronting company" is an authorized insurer which by reinsurance or otherwise generally transfers to one or more unauthorized insurers substantially the entire risk of loss under substantially all of the insurance written by it in this state, _on one or more lines of insurance, on all of the business produced through one or more agents or agencies or on all of the business from a designated geographical territory. This provision does not apply as to any policies which are in force on the effective date of this code. (5) No in,surer shall be authorized to transact insurance in this state which, during the 3 years immediately preceding its application for a certificate of authority, has violated any of the insurance laws of this state and after being informed of such violation has failed to correct the same; except that, if all other requirements are met, the department may nevertheless issue a certificate of authority to such an insurer upon the filing by the insurer of a sworn statement of all such insurance so written in violation of law, and upon payment to the department of a sum of money as additional filing fee equivalent to all premium taxes and other state taxes and fees as would have been payable by the insurer if such insurance had been lawfully written by an author:.. ized insurer under the laws of this state. This fee, when collected, shall be deposited to the credit of the Insurance Commissioner's Regulatory Trust Fund. (6) Nothing in this code shall be deemed to prohibit the granting and continuance of a certificate of authority to a domestic title insurer organized as a business trust, if the declaration of trust of such insurer was filed in the office of the Secretary of State prior to January 1, 1959, and if the insurer otherwise meets the applicable re quirements of this code. Such an insurer may hereinafter in this code be referred to as a "business trust insurer." (7) For the purpose of satisfying the requirements of pervision of an insurer by a public insurance supervisory authority shall not be deemed to be an ownership, control, or operation of the insurer for the purposes of this subsection. Hletory.-s. 48, ch. 59-205; s. 3, ch. 65-269; ss. 13, 35, ch. 69-106; s. 1, ch. 74-44; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 15, ch. 77-488; ss. 2, 3, ch. 81 318; ss. 40, 64, 809(1st), ch. 82 243; s. 3, ch. 83 288; s. 1, ch. 84 65. Note.-Expires October 1, 1991, pursuant to s. 809(1st), ch. 82 243, and is scheduled 1624.406 Combinations of insuring powers, one insurer.-an insurer which otherwise qualifies therefor may be authorized to transact any one kind or combination of kinds of insurance as defined in part V except: (1) A life insurer may also grant annuities, but shall not be authorized to transact any other kind of insurance except health insurance, disability income insurance, excess coverage for health maintenance organizations, or excess insurance, specific and aggregate, for selfinsurers of a plan of health insurance and multipleemployer welfare arrangements. (2) A reciprocal insurer shall not transact life insurance. (3) Except as to domestic business trust title insurers as referred to in s. 624.404(6), so authorized prior to the effective date of this code, a title insurer shall be a stock insurer. (4) A health insurer may also transact excess insurance, specific and aggregate, for self-insurers of a plan of health insurance and multiple-employer welfare arrangements. Hletory.-s. 50, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 42, 64, 809(1st), ch. 82 243; s. 2, ch. 84-65. 'Note.-Expires October 1, 1991, purs uant to s. 809(1st), ch. 82 243, and is sched uled 1624.407 Capital funds required; new insurers.- (1) To qualify for authority to transact any one kind of insurance, as defined in part V of this chapter, or combination of kinds of insurance as shown below, an insurer hereafter applying for its original certificate of authority in this state shall possess, and thereafter maintain unimpaired, paid-in capital stock, if a stock insurer; or unimpaired surplus, if a foreign mutual or foreign reciprocal insurer, or a net trust fund, if a business trust insurer, in an amount not less than as applicable under the schedule below, and shall possess when first so authorized such additional surplus as is required under s. 624.408. Kind or kinds of insurance: Minimum capital, surplus, or net trust fund required to be maintained: ss. 624.407 and 624.408, the investment portfolio of an - insurer applying for an initial certificate of authority. to do Life.......................................... $750,000 business in this state shall value its bonds and stocks Health....................................... 750,000 in accordance with the provisions of the 1982 edition of Life and health................................. 750,000 the publication "Valuations of Securities" by the National Property.......................................... 750,000 Association of Insurance Commissioners or its succes- Casualty........................................... 750,000 sor organization. Surety............'!............................ 750,000 (8) No insurer, the voting control or ownership of Marine......................................... 750,000 which is held in whole or substantial part by any govern- Title......................................... 350,000 ment or governmental agency, or which is operated for Multiple lines (Any two or by any such government or agency, shall be author- or more: property, ized to transact insurance in this state. Membership in casualty, surety, a mutual insurer, subscribership in a reciprocal insurer, marine, and all kinds ownership of stock of an insurer by the alien property of insurance other custodian or similar official of the United States, or su- than life).......................................... 750,000 407
Ch.624 INSURANCE CODE: ADMINISTRATION AND GENERAL PROVISIONS F.S. 1985 (2) Capital, surplus, and net trust fund requirements shall be based upon all the kinds of insurance actually transacted or to be transacted by the insurer in any and all areas in which it operates, whether or not only a portion of such kinds are to be transacted in this state. (3) As to surplus required for qualification to transact one or more kinds of insurance and thereafter to be maintained, new domestic mutual insurers are governed by chapter 628, and domestic reciprocal insurers are governed by chapter 629. Hlatory.-s. 51, ch. 59-205; s. 1. ch. 63-29; s. 1, ch. 67-235; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 43, 64, 809(1st), ch. 82-243; s. 2, ch. 85-245. Note.-Expires October 1, 1991, pursuant to s. 809(1st), ch. 82-243, and is sched uled 1624.408 Special surplus requirements.- (1) In addition to the minimum paid-in capital stock (stock insurers), minimum surplus (mutual and reciprocal insurers), or net trust fund (business trust insurers) required by s. 624.407, an insurer hereafter applying for an initial certificate of authority in this state shall possess, when first authorized in this state, surplus or additional surplus or additional net trust fund equal to the larger of $1 million (stock, mutual, reciprocal, and business trust insurers) or, as applicable: (a) For life, health, or life and health insurers, 3 percent of the total of its net reserves for annuities as required under the Florida Insurance Code, plus 5 percent of the total of its other net reserves as required by the Florida Insurance Code, except the reserves for accrued liabilities required under s. 625.041 (5) and reserves on single premium life insurance and annuities for which the insurer has established reserves computed on a standard basis in accordance with the Florida Insurance Code equal to 100 percent of its liabilities, provided that the value of future guaranteed benefits is not reduced by the contingent surrender charges that may not be available upon cash surrender; or (b) For property, casualty, surety, marine, title, or multiple lines insurers, 10 percent of the total of its net reserves as required under the Florida Insurance Code, except the reserve for accrued liabilities required under s. 625.041 (5). However, any insurer with surplus as to policyholders that exceeds $100 million shall not be required to increase or maintain its surplus in accordance with the provisions of paragraphs (a) and (b). (2) If, within 3 years after date of its initial certificate of authority to transact insurance in this state, such an insurer requests authority to transact an additional kind or kinds of insurance, it shall not be so authorized unless it then possesses surplus or additional surplus in such an amount as would be required under this section as for an original certificate of authority covering all the kinds of insurance the insurer then proposes to transact. (3)(a) A title insurer must at all times have and maintain surplus as to policyholders in the amount of not less than $1 million ; and, if the insurer is a stock insurer, not less than $250,000 of such surplus as to policyholders must be represented by surplus in excess of paid-in capital stock. (b) After issuance of its initial certificate of authority, any insurer shall maintain a surplus or net trust fund 408 such as required under this section of not less than the larger of $250,000 or, as applicable: 1. For life, health, or life and health insurers, 3 percent of the total of its net reserves for annuities as required under the Florida Insurance Code, plus 5 percent of the total of its other net reserves as required by the Florida Insurance Code, except the reserves for accrued liabilities required under s. 625.041 (5) and reserves on single premium life insurance and annuities for which the insurer has established reserves computed on a standard basis in accordance with the Florida Insurance Code equal to 100 percent of its liabilities, provided that the value of future guaranteed benefits is not reduced by the contingent surrender charges that may not be available upon cash surrender; or 2. For property, casualty, surety, marine, title, or multiple lines insurers, 10 percent of the total of its net reserves as required under the Florida Insurance Code except the reserve for accrued liabilities required under s. 625.041 (5). However, any insurer with surplus as to policyholders that exceeds $100 million shall not be required to increase or maintain its surplus in accordance with the provisions of subparagraphs 1. and 2. Hlatory.-s. 52, ch. 59-205; s. 2, ch. 63-29; s. 2, ch. 67-235; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 1, 2, ch. 79-72; ss. 2, 3, ch. 81-318; ss. 44, 64, 809(1st), ch. 82-243; s. 4, ch. 83-288; s. 3, ch. 85-245. 1 Note.-Expires October 1, 1991, pursuant to s. 809(1 st), ch. 82-243, and is scheduled 624.4081 Capital and surplus requirements; existing insurers.- 1(1) Beginning with calendar year 1983, any insurer which does not meet the requirements of ss. 624.407 and 624.408 shall increase its surplus as to policyholders so that 2 such surplus equals at least $750,000 as of December 31, 1986, and the insurer shall thereafter maintain such surplus at $750,000 until such time as the provisions of subsection (2) apply. (2) Beginning with calendar year 1987, any insurer which does not meet the requirements of ss. 624.407 and 624.408 shall increase its surplus as to policyholders so that 2 such surplus as of December 31, 1989, is not less than the larger of $1 million or, as applicable: (a) For life, health, or life and health insurers, 3 percent of the total of its net reserves for annuities as required under the Florida Insurance Code, plus 5 percent of the total of its other net reserves as required by the Florida Insurance Code, except the reserve for accrued liability required under s. 625.041 (5) and reserves on single premium life insurance and annuities for which the insurer has established reserves computed on a standard basis in accordance with the Florida Insurance Code equal to 100 percent of its liabilities, provided that the value of future guaranteed benefits is not reduced by the contingent surrender charges that may not be available upon cash surrender; or (b) For property, casualty, surety, marine, title, or multiple lines insurers, 10 percent of the total of its net reserves as required under the Florida Insurance Code except the reserve for accrued liability required under s. 625.041 (5).