must, within 35 days after the agency first ceases the transacting of insurance, do ALL the following: ○ Cancel the insurance agency’s license by completing and submitting a form prescribed by the department to notify the department of the cancellation of the license. ○ Notify all insurers by which the agency or agent in charge is appointed of the agency’s cessation of operations, the date on which operations ceased, the identity of any agency or agent to which the agency’s current book of business has been transferred, and the method by which agency records may be obtained during the time periods specified in F.S. 626.561 and 626.748 . ○ Notify all policyholders currently insured by a policy written, produced, or serviced by the agency of the agency’s cessation of operations; the date on which operations ceased; and the identity of the agency or agent to which the agency’s current book of business has been transferred or, if no transfer has occurred, a statement directing the policyholder to contact the insurance company for assistance in locating a licensed agent to service the policy. ○ Notify all premium finance companies through which active policies are financed of the agency’s cessation of operations, the date on which operations ceased, and the identity of any agency or agent to which the agency’s current book of business has been transferred. Ensure that all funds held in a fiduciary capacity are properly distributed to the rightful owners. The Department may impose to following enforcement action for an agency’s failure to comply with the agency closure requirements. Insurance - Property Insurance [Chapter 2022-268, SB 2-D, Effective May 26, 2022] Summary In 2022, the Florida legislature passed SB 2-D into law. This addresses the increasing lack of access and affordability of property insurance in Florida, specifically as it relates to condominium and homeowner unit owners. Some insurance brokers believe these provisions may apply to commercial residential property insurance coverage. Reinsurance to Assist Policyholders Program : The Reinsurance to Assist Policyholders Program (RAP) is funded through the Florida General Revenue Fund. Monies may only be transferred to the RAP if certain conditions are met because of a hurricane. ● SB 2-D authorizes $2 billion reimbursement layer of reinsurance for hurricane losses directly below mandatory layer of the Hurricane Catastrophic Fund, mandatory retention for which is $8.5 billion for 2022/2023 contract year. ● The RAP will provide reimbursements for the two hurricanes causing the largest losses for the insurer during the contract year. ● Insurers do not pay premiums for the RAP but must reduce rates to reflect savings. Insurers that participate in the RAP for 2022/2023 must reduce rates by June 30, 2022. ● Insurers that defer using the RAP until 2023/2024 must reduce rates to reflect savings by May 1, 2023. ● All eligible insurers must participate in the RAP for one year. Insurers that are determined to be in unsound financial condition (as determined by the Insurance Commission) and Citizens are ineligible for the RAP. ● The RAP expires on July 1, 2025, if no general revenue funds have been transferred to fund it. ○ If such funds are transferred, the statute expires on July 1, 2029. ● All unencumbered RAP funds must be transferred back into the general revenue fund. My Safe Florida Home Program: Effective July 1, 2022, SB 2-D appropriates $150 million from general revenue funds to the Department of Financial Services’, My Safe Florida Home Program to provide hurricane mitigation inspections and
An administrative fine against the agent in charge or the director or officer of the agency found to have violated any provision of this section. A proceeding may not be initiated and a fine may not accrue until after the person has been notified in writing of the nature of the violation and the person has been afforded 10 business days to correct the violation but has failed to do so. An administrative fine may be imposed under F.S. 626.681 per violation. In addition to the imposition of an administrative fine, the department may also suspend or revoke the license of the licensee fined. License Application Questions: The Bureau of Licensing reminds new license applicants and current licensees; agents, adjusters, agencies, firms, and other licensees, to answer all questions on license applications accurately. Public Adjuster Apprentice Appointment: The public adjuster appointment requirements under F.S. 626.8651 were updated during this year’s legislative session. The department shall issue an appointment as a public adjuster apprentice to a licensee. Unaffiliated Insurance Agent: The definition of an unaffiliated insurance agent under F.S. 626.015 (12) has been modified , effective July 1, 2022. The restrictions disallowing the agent to be affiliated with an insurer, agency, or agents has been changed, and an unaffiliated agent who also holds an adjuster license may obtain an adjuster appointment. Reference : Other provisions were added to statute related to insurance licensing and prohibited acts for both residential and non-residential licensees. For full details see F.S. 634.095, 626.015, and 626.8651. matching grants on single-family homes with a value of $500,000 or less located in the wind-borne debris regions as set forth in the FBC. The program provides financial incentives for Florida residential property owners to obtain free home inspections that would identify mitigation measures and also provide grants to retrofit such properties, thereby reducing their vulnerability to hurricane damage and helping to decrease the cost of residential property insurance. The bill revises the eligibility criteria for receiving program grants. It: ● Requires that a homeowner who receives a mitigation grant agree to make their home available for inspection after the mitigation project is completed. ● Requires that a building permit for initial construction of the home must have been made before January 1, 2008. ● Requires the home to have undergone an acceptable hurricane mitigation inspection after July 1, 2008. Contractor Solicitations: Contractor solicitations of roof claims are prohibited if they encourage or induce a consumer to contact a contractor or public adjuster for the purpose of making a property insurance claim for roof damage unless the solicitation provides notice that the consumer is responsible for payment of any deductible. It is insurance fraud punishable as a third-degree felony for a contractor to pay or waive a deductible with the intent to injure, defraud, or deceive. It is insurance fraud punishable as a third-degree felony to intentionally file an insurance claim containing false, fraudulent, or misleading information. Separate Roof Deductible: SB 2-D allows property insurers to include in a personal lines residential property insurance policy a separate roof deductible. The policyholder must also be offered the option to decline the roof deductible, in writing on a form approved by the OIR. A policy with a roof deductible provision must be clear and unambiguous. A policy with a roof deductible must include specific disclosures. Prohibits Refusal of Renewal: This statute prohibits an insurer from refusing to issue or renew a homeowner’s insurance policy with a roof that is less than 15 years old solely because of the
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Book Code: CAMFL1524
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