interco - florida department of financial services · intercothe m vol. 7, no. 2 publication for...

IINTNTERCOMERCOMIINTNTERCOMERCOMTHETHE

VOL. 7, NO. 2 PUBLICATION FOR AGENTS AND ADJUSTERS FROM Bill NelsonAPRIL -AUGUST 1997 THE STATE OF FLORIDA DEPARTMENT OF INSURANCE Treasurer/Insurance Commissioner/FireMarshal

Continued on page 11

What’s Inside:

Advertising 2

From the Editor 2

Florida HurricaneCatastrophe Fund 3

1997 Legislation 4

• Property &• Casualty 4

• Life & Health 5

• Miscellaneous 8

Return Premiums 11

Temporary CustomerRepresentative 12

Viaticals 13

Notice to Carriersand Agents 13

Disciplinary Actions 14

New Companies 15

Phone Directory 16

National Catastrophe ProgramByBy: Bill Nelson, Florida T: Bill Nelson, Florida Treasurerreasurer, Insurance Commissioner, Insurance Commissioner, F, Fire Marshalire Marshal

With huge losses piling up across the countryeach year from floods, twisters, hurricanes andearthquakes, Congress finally is showing new in-terest in enacting a comprehensive, national ca-tastrophe program to help cover homeowners.This legislation deserves the active support ofFlorida’s insurance agents.

As we Floridians know, perhaps better thananyone else, natural disasters like Hurricane An-drew can have a devastating impact on the insur-ance marketplace far beyond the geographic areawhere the disaster strikes. Many homeownersfrom Maine to the Gulf of Mexico are finding itharder to get insurance because they live in areasthreatened by hurricanes. California homeownersface the same problem because insurers are notwilling to take on the risk of providing earthquakecoverage. Tennessee, Missouri, Arkansas, Ken-tucky and Illinois share the threat of earthquakesalong the New Madrid Fault. And homeownersthroughout the Midwest have been hit by torna-does or plagued by floods.

In Florida, we’ve enacted a number of measuresto attract new companies and new capital and tomove homeowners from the government-run Resi-dential JUA into the private, voluntary market.We’ve also created the Florida Hurricane Catas-trophe Fund (FHCF) which for the current hurri-cane season has the capacity to cover up to $7.5billion in residential losses.

Still, companies are unwilling to write newhomeowners’ policies in the state’s most vulner-able areas, especially in South Florida. Andhomeowners throughout Florida are concernedand angry about the rate increases imposed sinceAndrew. That’s why I’m proposing further, majorsteps in next spring’s legislative session: establish-ing an appropriate cap on the industry’s hurricane

liability, accompanied by a rate rollback; convert-ing the state FHCF into a new Florida HurricaneFacility to cover the higher levels of catastrophicrisk; and requiring companies to cover all otherhomeowners’ risks statewide—including those cur-rently insured by the JUA and Florida WindstormUnderwriting Association. A federal reinsuranceprogram would supplement the new Facility’s re-sources, just as it would our present FHCF.

Like Florida, California and Hawaii have takenmajor steps to solve their own homeowners’ in-surance problems. However, neither the Califor-nia Earthquake Authority, the Hawaii HurricaneRelief Fund, nor Florida’s present Hurricane Ca-tastrophe Fund has the capacity to cover a mega-catastrophe if it should strike a densely populatedarea.

Compared to the loss projections for such a ca-tastrophe, Hurricane Andrew’s $16 billion of in-sured losses and California’s $14.5 billionNorthridge earthquake were just wake-up calls. Ifthese projections are accurate, consider what aCategory 5 hurricane could do to Miami — $53 bil-lion in insured losses; or to Asbury Park, New Jer-sey — $52 billion; or Hampton, Va. — $33 billion;New Orleans — $25.6 billion; Galveston — $42.5billion.

Earthquakes could wreak more than $33 bil-lion of damage in Seattle, $84.4 billion in SanFrancisco, $57.7 billion in Los Angeles, and al-most $70 billion in Memphis.

No single state, no single industry, could handledisasters even approaching those magnitudes.From California to the Eastern Seaboard, a morecomprehensive approach is needed to help ensurethat homeowners’ claims would be paid if andwhen the “Big One” hits.

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INTERCOMINTERCOMAPRIL - AUGUST 97

LIFE LIFE ANDAND HEALTH HEALTHAND ANNUITYAND ANNUITYCONTRCONTRAACTSCTS

The Florida Administrative Code, Sec-tion 4-150, contains the advertising rulesfor life and health and annuity contracts.One of the basic provisions of the rules isthat all advertisements used by agents,producers, brokers, or solicitors musthave prior written approval or prior ver-bal approval with subsequent written con-firmation by the insurer before being dis-seminated. Most contracts betweenagents and insurers contain a prior ap-proval clause regarding advertisements.

When an advertisement has been ap-proved by a company, agents are cau-tioned that even a minor alteration bythem may change the meaning so that theadvertisement no longer complies with

the applicable rules, thus subjecting theresponsible agent to administrative pen-alties. To avoid any possible problems,use the advertisement exactly as ap-proved by the company.

The question most often asked con-cerning advertising is, “What if I am ap-pointed with several companies and I amadvertising for a contract which can beplaced through more than one of my ap-pointing companies?”

Answer— “The agent should obtain ap-proval from at least one of the companiesthat markets the product described in theadvertisement and benefits from the saleof the product.”

The Department cannot approve indi-vidual agent advertisements. All compa-nies authorized to do business in Floridaare aware of the advertising rules andshould have designated staff who can re-

view the material to ensure compliance.When in doubt as to whether an adver-tisement conforms to the rules, request areview by the company before using it.

PROPERTY ANDPROPERTY ANDCASUALTYCASUALTY

While the Florida Administrate Codedoes not include a section titled “Prop-erty and Casualty Advertising,” it doesprohibit the use of any advertising whichis misleading, deceptive or defamatory.The Unfair Trade Practices section of theFlorida Statutes (Section 626.9541) will beused to determine whether advertise-ments placed by agents for these types ofcontracts are in violation. Agents shouldexercise due diligence to avoid unclear ordeceptive advertisements.■

AdvertisingWe are including more on advertising in this issue since the Department continues to receive numerous complaintsWe are including more on advertising in this issue since the Department continues to receive numerous complaints

from consumers and agents concerning advertisements which are not in compliance with the Florida Statutes.from consumers and agents concerning advertisements which are not in compliance with the Florida Statutes.

From the Editor:

Producing The Intercom for the past five years has been one ofthe most enjoyable highlights of my career with state government.

The many accolades and other positive feedback from agents,industry associates, and from my colleagues here in the Depart-ment have been a source of pride and motivation. Thanks to eachof you.

Thanks also to my bosses John E. Hale and Mary Alice Palmerfor the guidance and direction they provided; and thanks to theexperts who contributed the quality input that has enabled thenewsletter to accomplish its objective of keeping the readers up-dated and informed.

Through my work with The Intercom, I have had the opportu-nity to have contact with many of its recipients; the fond memoriesgenerated by your calls, letters, and visits will be a pleasant recallfor me.

This will be my last issue as editor. I have decided to becomethe “retiring editor” so that I can spend more time in my new roleas a wife. You were a great audience.

RELOCATING?ADDRESS CHANGE?NAME CHANGE?“Every licensee shall notify the De-partment in writing within 30 daysafter a change of his name, his resi-dence address, his principal businessstreet address, or mailing address.”—Section 626.551, F.S.

Remember: A name change necessi-tates the re-issuance of your insurance li-cense. A copy of your marriage certificate,divorce decree, or other substantiatingdocumentation is required at the time re-issuance is requested. The fee for the newlicense is $5. Your check or money ordermust accompany the request.

If you are aware of a licensee who is notgetting The IntercomThe Intercom (and will not see thisnotice), please remind the licensee to con-tact the Department to ensure that his/herrecords are current.

Failure to comply with the Florida Stat-utes is a disciplinary violation.

3THEINTERCOMINTERCOM

APRIL - AUGUST 97

Florida Hurricane Catastrophe FundThe Department’s Consumer Hotline

frequently receives complaints or inquiriesfrom consumers who have been unable toget answers from their agent. Many ofthese relate either to surcharges in generalor to surcharges for the Florida HurricaneCatastrophe Fund (FHCF) in particular.

After discussion with the FHCF staff atthe State Board of Administration, we haveprovided answers to some of the basic ques-tions consumers are asking.

Note: The Department of Insurance has soleresponsibility for the recoupment process.Please contact Doug Haseltine at (850) 413-5330with questions relating to specific insurancecompanies. If you need other assistance,please call our Consumer Helpline at (800)342-2762.

QQWhat i s the purpose o f theWhat i s the purpose o f theFHCF?FHCF?

AA The Legislature created the FHCF in 1993 as one of a number of responses to the

property insurance crisis after Hurricane An-drew devastated South Miami in August 1992.The purpose of the FHCF is found in Section215.555(1)(e), F.S. The FHCF is a “state pro-gram established to provide reimbursement toinsurers for a portion of their catastrophic hur-ricane losses [to] create additional insurancecapacity sufficient to ameliorate the current dan-gers to the state’s economy and to the publichealth, safety, and welfare.” The short answeris—additional insurance capacity to provide in-centives to keep private insurers in the state.

QQ How will it benefit me? How will it benefit me?

AA The FHCF benefits homeowners byincreasing reinsurance capacity and

thereby keeping private insurers in the state.The more private insurers in the state, thehealthier the competitive insurance marketand the greater the capacity for insurers towrite homeowners’ insurance policies.

QQ Why should I have to pay into Why should I have to pay intoanother fund that will only helpanother fund that will only help

the insurance company?the insurance company?

AA Policyholders do not pay into another fund. Insurance companies pay

a premium to the FHCF. The FHCF benefits

policyholders by providing incentives for in-surers to stay in the state. No insurance com-pany is paid from the FHCF unless the com-pany has sustained losses from hurricanesand has paid its policyholders for those losses.Note that insurance companies buy reinsur-ance as a matter of normal business practice.

QQ Who gets the money? Who gets the money?

AA Insurance companies pay premiums to the FHCF for the insurance cover-

age they receive, just as policyholders paypremiums to their homeowners’ insurancecompanies. The money is then held in trustby the state. If there are no hurricanes, themoney in the FHCF continues to grow. Themoney is used to reimburse insurance com-panies for part of the claims they have paidto policyholders because of hurricane dam-age to residential property. The money isaccumulated for the benefit of individualpolicyholders and paid to insurance com-panies only after individual policyholdershave been paid by the company.

QQ How are the rates established? How are the rates established?Who decides the rates?Who decides the rates?

AA The FHCF rates charged to the insurance companies are based on (1) the

insurance companies’ exposure to hurricanedamage, (2) by Zip Code, (3) by the type ofconstruction of the property (i.e., frame, ma-sonry, etc.), (4) by line of business (i.e.,homeowners, mobile homeowners, etc.), and(5) by deductible. The rates take into ac-count all these factors so that the companiesare charged rates which very accurately re-flect the amount of loss they will sustain fromhurricanes. The rates are established, by law,by an independent actuarial consultant. Therates are required to be unanimously approvedby the Trustees of the State Board of Adminis-tration (the Governor, the Insurance Commis-sioner, and the Comptroller).

The rates for individual homeownerscharged by insurance companies l ikeState Farm and Allstate are determined bythe respective companies and then ap-proved by the Department of Insurance.

QQ Recoupment: Are companies Recoupment: Are companiesa l lowed to recoup the FHCFal lowed to recoup the FHCF

premium from thei r pol icyholders?premium from thei r pol icyholders?

AA Yes. Section 627.062(5), F.S., states “With respect to a rate filing involving cover-

age of the type for which the insurer is requiredto pay a reimbursement premium to theFlorida Hurricane Catastrophe Fund, the in-surer may fully recoup—in its property insur-ance premiums—any reimbursement premi-ums paid to the Florida Hurricane Catastro-phe Fund.”

QQ How much can the companiesHow much can the companies recoup?recoup?

AA All of the FHCF premium, if the com-pany chooses to ask for all of it to be

recouped.

QQ Why does one policyholder’s Why does one policyholder’spremium notice show an FHCFpremium notice show an FHCF

recoupment and another’s does not?recoupment and another’s does not?

AA The Legislature has allowed companiesto recoup their FHCF premiums from

policyholders. Companies must make a ratefiling with the Department of Insurance to re-quest recoupment and the Department mustapprove the amounts and the method of re-coupment for each company. A companythat retrospectively recoups must show therecoupment on a policyholder’s premiumnotice. If the company prospectively chargesenough to cover its FHCF premium coststhen it does not show the recoupment.

QQ Why are my rates different from Why are my rates different frommy neighbors’?my neighbors’?

AA Rates are filed by each company in- dividually; they vary because of dif-

ferences in the experience of each com-pany. They may also differ because ofsuch factors as value of the home, typeof construction, sprinkler systems, stormshutters, etc.

QQ Why do I have to pay for people Why do I have to pay for peoplewho are uninsured?who are uninsured?

AA Policyholders are not paying forpeople who are uninsured. The FHCF

pays insurance companies only after insur-ance companies have paid their policyhold-ers. The FHCF does not pay for any unin-sured properties.■

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1997 LegislationThe following provides a brief The following provides a brief reviewreview of the bills referenced. The Intercom can not include details of of the bills referenced. The Intercom can not include details of

every change made by the new laws. We recommend that our readers obtain copies of the enrolled bills inevery change made by the new laws. We recommend that our readers obtain copies of the enrolled bills inorder to have a complete description of each new act. The Department can also provide further guidanceorder to have a complete description of each new act. The Department can also provide further guidanceif needed. Copies of the new laws may be obtained by contacting your local legislative office or by callingif needed. Copies of the new laws may be obtained by contacting your local legislative office or by callingthe state’s legislative information lines at 1-800-342-1827 or (850) 488-4371.the state’s legislative information lines at 1-800-342-1827 or (850) 488-4371.

House Bill 9House Bill 9Chapter 97-84, Laws ofChapter 97-84, Laws ofFlorida: Florida: Motor VehicleMotor VehicleInsurance/School Trans-Insurance/School Trans-portationportation; Effective Oc-; Effective Oc-tober 1, 1997; by Repre-tober 1, 1997; by Repre-sentat ives Mil ler andsentat ives Mil ler andCulp.Culp.

The bill removes the cur-rent exclusion of schoolbuses from the definition of“motor vehicle” in the mo-tor vehicle no-fault law, butretains the current provisionthat exempts school busesfrom the mandatory insur-ance requirement of the no-fault law. As a result, whena relative of a named in-sured who lives in the samehousehold is injured whilein a school bus, the injurieswill be covered by thenamed insured’s personalinjury protection (PIP) cov-erage. Coverage is subjectto policy limits and exclu-sions, and compensationfor the injuries can be recovered without theneed to sue the at-fault party.

CS/House Bill 549CS/House Bill 549Chapter 97-74, Laws of Florida: Chapter 97-74, Laws of Florida: War-War-ranty Companiesranty Companies ; Effect ive October; Effect ive October1, 1997;1, 1997; by the House Financial Ser-by the House Financial Ser-vices Committee and Representativevices Committee and RepresentativeZiebarth.Ziebarth.

Motor Vehicle Warranties—Motor Vehicle Warranties—Amends the definition of motor vehicle

to include recreational vehicles, or trailers,and other devices used to transport self-pro-pelled water vehicles for the purpose of writ-

ing motor vehicle warranties. Amends s.634.121, F.S., to allow the service agreementcompany to limit the time period in which aconsumer may transfer the agreement to 15days after the date of sale or transfer of themotor vehicle. Eliminates the language thatallowed such transfers until the expirationdate of the agreement.

Home Warranties—Home Warranties—Defines “listing period” as the time pe-

riod between when residential property islisted for sale by a licensed real estate bro-ker and either the date the sale is closed,the date the residence is taken off the mar-

Property & CasualtyProperty & Casualty ket, or the date when the list-ing contract with the real estatebroker expires. Allows homewarranties to be assignable andlimits the transfer period of thewarranty to within 15 days ofsale or transfer. Delineates thata builder may assign a homewarranty to the purchaser of thefinished home. Home warran-ties can be issued on residen-tial property which is for salefor no more than 12 months—provided there is a separate,identifiable charge for coverage.

Service Warranties—Service Warranties—Amends s. 634.406, F.S., to

increase the writing ratio from5:1 to 7:1 for a warranty seller.

CS/Senate Bill 794CS/Senate Bill 794Chapter 97-55, Laws ofChapter 97-55, Laws ofFlor idaFlor ida : Property Insur-Property Insur-anceance ; Ef fec t ive upon be-; Ef fec t ive upon be-coming law; by the Senatecoming law; by the SenateBanking and InsuranceBanking and InsuranceCommittee.Committee.

Establishes a mitigation pro-gram to be administered by theFlorida Windstorm Underwriting

Association (FWUA) for the purpose of pro-viding homeowner applicants with funds toconduct an evaluation of the integrity of theirhomes with respect to withstanding hurricane-force winds. The Department of CommunityAffairs shall establish, by rule, specifics of theprogram. The FWUA shall identify areas ofthe state where the program would be mostbeneficial.

Florida’s private-sector market forhomeowners’ insurance and other forms ofresidential property insurance has beenunstable since 1992 when Hurricane An-drew caused more than $16 billion in in-sured losses. For the last four years, private-


APRIL - AUGUST 97

sector homeowners’ insurance generallyhas been unavailable in some areas of thestate and has, in all areas of the state, beenfar more difficult to obtain than in the yearsprior to Hurricane Andrew. As homeowners’insurance has become less available, it hasalso become more expensive.

In addition to clarifications and othertechnical changes to current law, the bill:

• Revises provisions relating to the finan-cial matters of the Residential Propertyand Casualty Joint Underwriting Associa-tion (RPCJUA) and the Florida Wind-storm Underwriting Association(FWUA).

• Adds the Insurance Consumer Advocateand two consumer representatives to theBoard of Directors of the FWUA.

• Creates additional eligibility requirementsfor FWUA coverage and a temporaryfreeze of FWUA geographic expansion.

• Creates additional geographic require-ments for certain RPCJUA take-out plans.

• Extends current ratemaking standards forthe RPCJUA and requires that premiumscharged by the FWUA not be competi-tive with the voluntary market.

• Creates procedures and disclosures forbonding by the FWUA and RPCJUA.

• Revises hurricane deductibles to allow aninsurer to offer hurricane deductibles offive (5) percent for condominium asso-ciations and cooperatives or ten (10) per-cent for other commercial lines residen-tial properties, if the insurer also offers athree (3) percent hurricane deductible.

CS/Senate Bill 1286CS/Senate Bill 1286Chapter 97-178, Laws of Florida: Chapter 97-178, Laws of Florida: Mo-Mo-tor Vehicle Insurancetor Vehicle Insurance; Effective Octo-; Effective Octo-ber 1, 1997;ber 1, 1997; by the Senate Banking andby the Senate Banking andInsurance Commit tee and SenatorsInsurance Commit tee and SenatorsRossin and Forman.Rossin and Forman.

The bill allows a company to give insur-ance discounts for persons who success-fully complete a driver improvement coursewhich has been approved and certified bythe Department of Highway Safety and Mo-tor Vehicles.

Provides notice requirements in the caseof nonpayment of an initial premium.

Provides that an insurer who advertisesin a language other than English must dis-close in the advertisement that the policywritten in English will control in the event ofa linguistic misunderstanding between the

representations in the advertisement and theprovisions of the policy.

Provides that electronic notice of the ter-mination of a policy between an insurer anda lienholder is acceptable, if such notice ispreviously agreed upon.

Provides that when repairing a damagedmotor vehicle windshield, the waiver of anycomprehensive deductible—as mandated bystatute—shall not apply with respect to poli-cies issued or delivered outside of Florida.

Provides that an insurer may bind vehiclecoverage for no more than three (3) busi-ness days without first collecting premiums,if the insured already holds coverage onanother vehicle with the same insurer.

Life & HealthLife & Health

CS/House Bill 7CS/House Bill 7Chapter 97-5, Laws of Florida: Chapter 97-5, Laws of Florida: Reim-Reim-bursement Of Physic ian Assis tantsbursement Of Physic ian Assis tants ;;Effective October 1, 1997; by HouseEffective October 1, 1997; by HouseHealth Care Services Committee andHealth Care Services Committee andRepresentatives Morse and Culp.Representatives Morse and Culp.

Requires that if a health insurance policy,health care services plan, or other contractprovides payment for surgical first assistingbenefits or services, the policy, plan, or con-tract is to be construed as providing for pay-ment to a physician assistant. Current lawalready imposes a similar requirement forregistered nurse first surgical assistants.Payment is only permitted if reimbursementfor an assisting medical doctor is coveredand a physician assistant or registered nursesubstitutes.

CS/House Bill 37CS/House Bill 37Chapter 97-182, Laws of Florida: Chapter 97-182, Laws of Florida: UseUseOf Genet ic Informat ion/Test ing ForOf Genet ic Informat ion/Test ing ForInsurance PurposesInsurance Purposes ; Effect ive Janu-; Effect ive Janu-ary 1, 1998; by House Health Careary 1, 1998; by House Health CareServices Committee and Representa-Services Committee and Representa-tives Stafford, Diaz de la Portilla andtives Stafford, Diaz de la Portilla ando the r s .o the r s .

Prohibits the use of genetic informationor genetic tests for insurance underwrit-ing purposes by health insurers, HMOs,prepaid health clinics, prepaid limitedhealth service organizations, and fraternalbenefit societies. Exempts such prohibi-tions for issuers of life insurance, disabil-ity income, long-term care, accident-only,

hospital indemnity, dental, or vision poli-cies. Also specifically prohibits healthinsurers from denying the issuance or re-newal of policy due to a family history ofbreast cancer.

Senate Bill 244Senate Bill 244Chapter 97-171, Laws of Florida: Chapter 97-171, Laws of Florida: Di-Di-rect Access To Dermatologistsrect Access To Dermatologists; Effec-; Effec-tive May 30, 1997; by Senator Myerstive May 30, 1997; by Senator Myersand others.and others.

Requires EPOs and HMOs to develop cri-teria whereby covered individuals may havedirect access to panel dermatologists for upto five (5) visits for minor procedures andtesting within a 12-month period.

CS/CS/House Bill 297CS/CS/House Bill 297Chapter 97-159, Laws of Florida: Chapter 97-159, Laws of Florida: HMOHMOReform/Health Care Intermediaries/Reform/Health Care Intermediaries/Commiss ion On Integrated Heal thCommiss ion On Integrated Heal thCare Delivery SystemsCare Delivery Systems; Effective July; Effective July1, 1997, except as otherwise provided;1, 1997, except as otherwise provided;by the House Health Care Standardsby the House Health Care Standardsand Regula tory Reform Commit teeand Regula tory Reform Commit teeand Representa t ives Logan,and Representa t ives Logan,Maygarden and others.Maygarden and others.

Amends HMO statutes to provide anarray of subscriber protections, includinga prohibition on contracts between HMOsand providers that contain so-called “gagclauses” which would in some way re-strict a physician from communicatinghealth care information to subscribers.HMOs will also be required to developand maintain an out-of-network referralpolicy employing pre-established finan-cial arrangements, and each HMO mustdevelop procedures—following guidelinesprescribed in the law—to be used by sub-scribers when lodging complaints andgrievances. Additionally, each organiza-tion shall develop procedures for the han-dling of urgent grievances.

The law also requires the Departmentof Insurance to register health care fiscalintermediaries and to oversee the opera-tions of the Commission on IntegratedHealth Care Delivery Systems. The Com-mission will report back to the legislatureby January 1, 1998, on the need for anyadditional regulation for entities that arein the business of providing health careservices, but which do not fit into thestate’s current regulatory structure.

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Senate Bill 358Senate Bill 358Chapter 97-45, Laws of Florida: Chapter 97-45, Laws of Florida: Com-Com-munity Health Purchasing Alliancemunity Health Purchasing Alliance ;;Effect ive May 7, 1997; by SenatorEffect ive May 7, 1997; by SenatorBrown-Waite.Brown-Waite.

Amends Section 408.703, F.S., allowing em-ployers who grow beyond 50 employees—butless than 75—to keep their CHPA eligibilityfor the year following their next renewal date.

CS/Senate Bills 530 & 848CS/Senate Bills 530 & 848Chapter 97-48, Laws of Florida: Chapter 97-48, Laws of Florida: BreastBreastCancer Treatment/Insurance Cover-Cancer Treatment/Insurance Cover-ageage; Effective October 1, 1997;; Effective October 1, 1997; by theby theSenate Banking and Insurance Com-Senate Banking and Insurance Com-mittee and Senators Scott, Campbellmittee and Senators Scott, Campbelland others.and others.

Mandates coverage for prosthetic devicesand reconstructive surgery following a mas-tectomy. This includes all surgery necessaryto reestablish symmetry between breasts.The current two (2) year limit on coveragefor reconstructive surgery and prosthetic de-vices when no malignancy is found is re-pealed. Prohibits inpatient hospital cover-age for mastectomies from being limited toless than what is determined to be medicallynecessary by the physician after consulta-tion with the patient. Requires that outpa-tient postsurgical care for mastectomies becomparable to inpatient postsurgical care,which may be provided in a variety of medi-cally appropriate settings.

Prohibits certain insurer incentives to theprovision of less care. Prohibits a personfrom being denied individual coverage, orexcluded from coverage for breast cancer,if the person has remained breast cancerfree for two (2) years. Prohibits breast can-cer follow-up care from being considered anevaluation for a pre-existing condition un-less breast cancer is found.

Applies the above provisions to all indi-vidual, group, and out-of-state health insur-ance policies; multiple employer welfare ar-rangements; and HMO contracts.

CS/Senate Bill 968CS/Senate Bill 968Chapter 97-65, Laws of Florida: Chapter 97-65, Laws of Florida: PrepaidPrepaidLimited Health Services OrganizationsLimited Health Services OrganizationsContracts & Marketing/Chapter 636 Ex-Contracts & Marketing/Chapter 636 Ex-emption For Medicaid Providersemption For Medicaid Providers; Effec-; Effec-tive May 16, 1997; by the Senate Bank-tive May 16, 1997; by the Senate Bank-ing and Insurance Committee anding and Insurance Committee andSenator Rossin and others.Senator Rossin and others.

The act requires that a prepaid limited

• Requiring a copy of the disclosure docu-ment to prospective residents be filedwith the Department of Insurance;

• Granting residents access to manage-ment agreements, related party con-tracts, and—in certain cases—board ap-proved expansion plans; also requiresadvance notice to the residents prior toremoval of assets to another state;

• Creating a new section which providesremedies, including a full refund, to anyresident who has been sold a continuingcare contract in violation of Chapter 651,Florida Statutes.

Increased Funds forIncreased Funds forCapital Improvements—Capital Improvements—

The bill establishes a renewal and re-placement reserve to be used for capital im-provements. The renewal and replacementreserve will be funded by using a portionof the current operating reserves equal to15 percent of the total accumulated depre-ciation based on the annual audited finan-cial statements, not to exceed 15 percent ofthe entity’s average operating expenses forthe past three (3) fiscal years. The bill willallow withdrawals of up to 33 percent of theamount in reserve per fiscal year with a 36-month repayment schedule in equal pay-ments. The expenditures and withdrawalsare subject to approval by the Department.

Licensure Modifications/Licensure Modifications/Regulatory Update—Regulatory Update—

The bill provides for a continuous cer-tificate of authority in lieu of the current an-nual renewal and adds additional groundsfor revoking a certificate of authority. Thebill also requires a provider whose certifi-cate of authority is revoked by the Depart-ment of Insurance (DOI) to fulfill its contrac-tual obligations to its residents and providesDOI with remedies for any provider who failsto do so.

In addition, since CCRCs are regulatedunder a separate chapter, the bill incorpo-rates current practices of DOI regarding suchmatters as office location, official seal, pro-hibited practices by employees of the DOI,general duties and powers relating to exami-nations and investigations, rule making au-thority, enforcement powers, false filings,record keeping, etc.

Redefinit ion of Terms/Redefinit ion of Terms/Other Statutory Adjustments—Other Statutory Adjustments—The bill redefines the term “advertising”

to eliminate the naming of each and every

health service organization’s (PLHSO) con-tracts, marketing materials, and literatureprinted after October 1, 1997, must disclosethe name of the organization and show thatthe entity is licensed as a prepaid limitedhealth service organization under Chapter636, F.S. Also, the PLHSO is required toprovide prospective enrollees, upon re-quest, written information about the termsand conditions of the plan. Furthermore,every provider contract executed after Oc-tober 1, 1997, or within 180 days after Octo-ber 1, 1997, if in existence on October 1,1997, must contain a provision requiring thePLHSO to give 90 days’ advance written no-tice to the provider before canceling, with-out cause, the contract with the provider. Fi-nally, the act also prohibits gag clauses forPLHSOs and exempts Chapter 636, F.S., en-tities that provide only Medicaid servicesfrom certain duplicative reporting require-ments of the chapter.

CS/House Bill 1243CS/House Bill 1243Chapter 97-229, Laws of Florida: Chapter 97-229, Laws of Florida: Con-Con-t inuing Care Ret i rement Communi-t inuing Care Ret i rement Communi-tiesties; Effective October 1, 1997; by the; Effective October 1, 1997; by theHouse Elder Affairs and Long-TermHouse Elder Affairs and Long-TermCare Committee and RepresentativeCare Committee and RepresentativeJacobs and others.Jacobs and others.

Makes various technical and substantivechanges to Chapter 651, F.S., related to con-tinuing care contracts including:

Strengthened ConsumerStrengthened ConsumerProvisions—Provisions—

• Adding language to ensure a lender isfully committed to a development priorto release of consumer funds;

• Providing safeguards for residents’ fundsheld in trust under mortgage trust financ-ing structures;

• Allowing consumers to earn interest onany deposits during the seven-day can-cellation period;

• Providing for immediate refund of moniesdue the resident less a reasonable amountto off-set resident obligations in the eventa resident is discharged for “just cause”;

• Prohibiting termination of contracts forthe purpose of decertifying a facility fromChapter 651, F.S.;

• Granting residents a preferred claim sta-tus in the event of a receivership action;

• Requiring a copy of the Resident’s Bill ofRights be provided to all prospectiveresidents;


APRIL - AUGUST 97

• A “reinsurance pool” is created for indi-vidual insurers who wish to reinsureHIPAA eligibles. The pool is closely mod-eled after the small group reinsurancepool.

• Individual health insurers are subject toassessments to fund the reinsurancepool.

In addition, the Florida Insurance Codeis conformed to the provisions of HIPAA forindividual, group, small group, and HMOpolicies as follows:• Maternity coverage — an insurer may not:

—Deny the mother or her newborn eli-gibility, or continued eligibility, to en-roll or renew coverage, for the purposeof avoiding the requirements of thissection.

—Penalize, reduce or limit payment to aprovider who complies with the section.

—Offer incentives to mothers or to pro-viders for “shorter stays” following con-finements. The bill does not require amother to give birth in a hospital.

—Restrict benefits for hospital length ofstay which are less favorable than thebenefits provided under this section.

• Guaranteed renewability—all policies arerenewable except for:—Failure to pay premiums.—Fraud or intentional misrepresentation.—The insurer ceases offering a policy

form, which requires the insurer to give90 days’ notice and an offer for replace-ment coverage. If the insurer is leav-ing its market entirely, there must be180 days’ notice and the insurer can-not issue policies in that market for five(5) more years. For HMOs or other“network plans,” a contract need notbe renewed if the subscriber/employerno longer resides or works in the ser-vice area. For members of a bona fideassociation, coverage may not be re-newed if the policyholder/employer isno longer a member of the association.The guaranteed renewability require-ments apply to certificates of coverageoffered to individuals in Florida as partof a group.

• Preexisting conditions (applies to group,small group, and HMO group policiesonly):—Policies may not exclude coverage for

preexisting conditions for longer than12 months (18 months for late enroll-ees), with a 6-month look back.

—Genetic information is not a preexisting

conceivable form of advertising in favor ofa more concise definition to include writ-ten, visual, or electronic mediums. The billalso redefines the term “continuing care”to eliminate “food” as an element of con-tinuing care which may expand DOI’s over-sight to include those facilities that chargean entrance fee, but do not furnish food.

The bill also makes a number of techni-cal corrections, deleting incorrect or obso-lete references and transferring existing pro-visions to more appropriate sections of thechapter.

House Bill 1357House Bill 1357Chapter 97-237, Laws of Florida: Chapter 97-237, Laws of Florida: Pub-Pub-lic Healthlic Health; Effective July 1, 1997, ex-; Effective July 1, 1997, ex-cept as otherwise provided; by Housecept as otherwise provided; by HouseHealth Care Services Committee.Health Care Services Committee.

An extensive bill dealing with a widerange of public health matters, this legisla-tion makes several statutory changes of in-terest to DOI. It amends Chapter 409.912,F.S, dealing with state purchasing of Medic-aid services, by pushing back to January 1,1998, (from July 1, 1997) the requirement thatcounty health units and federally qualifiedhealth centers offering prepaid health ser-vices to Medicaid clients be licensed by DOIunder Chapter 641, F.S.

The bill also amends Chapter 627.912,F.S., permitting DOI to impose a fine of $250per day, not to exceed $1,000 per case,against an insurer that fails to timely reportto DOI instances of professional liabilityclaims and actions that have resulted in afinal judgment, settlement, or final disposi-tion (this provision is identical to what isfound in HB 1925).

Chapter 627.4326, F.S., the section of lawdealing with bone marrow transplant cov-erage, is also amended to transfer respon-sibility for developing rules on appropriatebone marrow transplant procedures fromthe Department of Health and RehabilitativeServices to the Agency for Health Care Ad-ministration.

House Bill 1523House Bill 1523Chapter 97-87, Laws of Florida: Chapter 97-87, Laws of Florida: Long-Long-Term Care Community Pilot ProjectsTerm Care Community Pilot Projects;;Effective May 23, 1997; by Represen-Effective May 23, 1997; by Represen-tat ives Lit t le f ie ld, Brooks, Brennantat ives Lit t le f ie ld, Brooks, Brennanand others.and others.

Creates the “Long-Term Care CommunityDiversion Pilot Project Act.” The purposeof this Act is to experiment with intermedi-

ate approaches to costly nursing homecare—approaches which emphasize man-aged care and outcome-based reimburse-ment principles. The pilots will be adminis-tered by the Department of Elderly Affairsand the Agency for Health Care Administra-tion. The bill requires that managed care or-ganizations selected for the pilot be organiza-tions licensed by DOI, yet the enrollment ofparticipants in the pilot projects will be doneby the Department of Elderly Affairs—not byagents of the managed care organizations.

CS/Senate Bill 1682CS/Senate Bill 1682Chapter 97-179, Laws of Flor ida:Chapter 97-179, Laws of Flor ida:Health CareHealth Care/Kennedy-Kassebaum; Ef-/Kennedy-Kassebaum; Ef-fective May 30, 1997, except as other-fective May 30, 1997, except as other-wise provided; by Senate Banking andwise provided; by Senate Banking andInsurance Commit tee and SenatorInsurance Commit tee and SenatorDiaz-Balart.Diaz-Balart.

Conforms the Florida Insurance Code tothe provisions of the federal Health Insur-ance Portability and Accountability Act of1996 (HIPAA), which requires that any per-son with 18 months of creditable coverage,who does not have access to other speci-fied health insurance, must be given accessto an insurance policy. Creditable coverageis defined to include any of the following: agroup health plan, individual health insur-ance, Medicare, Medicaid, the Florida Com-prehensive Health Association, and others.However, the last period of creditable cov-erage must have been under a group healthplan.

Federal law permits states to adopt an“acceptable alternative mechanism” for ac-cess to health insurance by HIPAA eligibles(subject to federal approval). The bill cre-ates this alternative mechanism as follows:• For HIPAA eligibles who have access to

a conversion policy, the policy serves asaccess to an insurance policy.

• Insurers offering a conversion policymust offer at least two different policyforms -- the conversion policy or a policythat meets the coverage requirements ofthe “standard” small group policy.

• The premium rate on HMO conversionpolicies is capped at 200 percent of thestandard risk rate. (Conversion policiesoffered by insurers are already cappedat this rate.)

• All other HIPAA eligibles must be givenaccess to an individual health insurancepolicy by any insurer selling individualpolicies in Florida. Again, at least twopolicy forms must be offered.

8THE


condition in the absence of a diagnosis.—No preexisting condition period may

be applied to newborns or adoptedchildren. Pregnancy is no longer con-sidered a “pre-existing” condition.

—Credit must be given for time servedunder other creditable coverage.

• Special enrollment periods (applies togroup, small group, and HMO group poli-cies only):—Employees and dependents must be

allowed to enroll if they previously de-clined enrollment because they hadcoverage.

—New dependents must be allowed toenroll within 30 days of marriage, birthor adoption.

• Prohibited discrimination (applies togroup, small group, and HMO group poli-cies only). Policies may not conditioneligibility or continue eligibility on anindividual’s health status, medical claimsexperience, receipt of health care, medi-cal history, genetic information, or evi-dence of insurability.

House Bill 1785House Bill 1785Chapter 97-166, Laws of Florida: Chapter 97-166, Laws of Florida: ChildChild

Health Supervision/Newborn Cov-Health Supervision/Newborn Cov-erage/Small Group Exceptionerage/Small Group Exception; Ef-; Ef-fective July 1, 1997; by Representa-fective July 1, 1997; by Representa-tives Peaden and Byrd.tives Peaden and Byrd.

• The new law substitutes “prevailing medi-cal standards consistent with the Recom-mendations for Preventive PediatricHealth Care of the American Academyof Pediatrics” in place of the 18 visits listedin the current law which requires indi-vidual and group health insurance poli-cies to provide coverage for child healthsupervision services from the momentof birth until the age of 16.

• Requires HMOs to comply with this childhealth supervision services provision.

• Requires an HMO to cover the newbornchild of a covered family member fromthe moment of birth.

• Permits the HMO to require the sub-scriber to notify the HMO of a plannedbirth and allows the HMO to charge a feeunder certain late notice circumstances.

• Requires an HMO to continue to coverthe dependent child of a subscriber be-yond the limiting age for dependent chil-dren if the child is incapable of self-sus-taining employment by reason of mentalretardation or physical handicap, and ifthe child is chiefly dependent upon the

ten premium for private carriers and 1.5 per-cent net direct written premium for self-in-surance funds. Effective July 1, 1999, if as-sessments collected are not adequate to payclaims on a current basis, this bill establishesa separate “deemed approved” assessment.The rate for the deemed approved assess-ment shall not exceed 1.5 percent.

The bill removes the bar for payment ofclaims occurring prior to January 1, 1994,and provides an election of remedies for thepre-1994 claimants.

Self-insurance funds are required to main-tain a positive surplus and may record fu-ture investment income which is based onreal assets and multiplied by the three-yearTreasury Note rate.

This bill provides that pending and futurereceivership hearings on a Petition to ShowCause are not de novo proceedings, but arelimited to the record before the court; addi-tionally the bill provides for the appointmentof a Special Master.

The bill provides for a $5 million appro-priation from the Insurance Commissioner’sRegulatory Trust Fund to the FSIFGA or suc-cessor entity for the payment of claims andadministrative expenses.

Special Disability Trust Fund—Special Disability Trust Fund—The Special Disability Trust Fund (Fund)

is the state’s second injury fund. The Fundhas approximately 100,000 pending Noticesof Claim. A recent actuarial analysis estimatedthe Fund liability to be $1.65 billion (dis-counted) and $4.05 billion (undiscounted).

This bill terminates the Fund, prospec-tively, effective with accidents occurring onor after January 1, 1998.

Each Notice of Claim filed or refiled onor after July 1, 1997, must be accompaniedby a $250 notification fee. A Proof of Claimmust be filed within one (1) year after thedate the Notice of Claim is filed or refiled,accompanied by a $500 Proof-of-Claim fee,or the claim shall be barred. Notices of Claimwhich are in the system prior to June 30,1997, and for which no Proof of Claim hasbeen filed, may be withdrawn and refiled ata later date providing the refiling is withinthe time period specified in s. 440.49(7), F.S.

The $250 notification fee will be waivedif the Notice of Claim and the Proof of Claimare submitted together as a single filing. TheSpecial Disability Trust Fund shall pay theaccepted claims on a first-in, first-out basis.Fees are waived for an insurer in receiver-ship proceedings. All fees will be utilizedfor cost recovery in Fund claims handling,

subscriber for support and maintenance.— These additional HMO provisions are

consistent with group health insur-ance requirements.

In an unrelated provision, the bill revisesstandards for the issuance of small grouphealth insurance policies to permit a smallemployer carrier to require—as a conditionof offering health insurance benefits—that theemployer not have had health insurancecoverage for its employees for a period of atleast six (6) months.

Misce l l aneousMisce l l aneousHouse Bill 1933House Bill 1933

Chapter 97-262, Laws of Flor ida:Chapter 97-262, Laws of Flor ida:Workers ’ Compensat ion Insurance/Workers ’ Compensat ion Insurance/Special Disability Trust FundSpecial Disability Trust Fund; Effec-; Effec-tive May 30, 1997, except as otherwisetive May 30, 1997, except as otherwiseprovided; by the House Financial Ser-provided; by the House Financial Ser-v ices Commit tee , Representa t ivev ices Commit tee , Representa t iveSafley and others.Safley and others.

Florida Workers’ CompensationFlorida Workers’ CompensationGuaranty Association—Guaranty Association—

The Florida Insurance Guaranty Associa-tion (FIGA) provides a payment mechanismfor covered claims under certain lines of in-surance in cases of insurer insolvency. Self-insurance is not covered under the FIGA.The Florida Self-Insurance Fund GuarantyAssociation, Inc. (FSIFGA), effective Janu-ary 1, 1994, was created to serve as a tempo-rary banking mechanism to ensure continu-ation of claim payments in the event of a self-insurance fund failure.

Currently over 600 claimants from insol-vent funds have been statutorily barred fromcoverage under the FSIFGA because theirrespective insurable events occurred priorto January 1, 1994, FSIFGA’s enactment date,and because self-insurance is excluded fromthe FIGA. These pre-1994 claimants are un-able to recover from either the insolvent in-surer or the FSIFGA.

This bill merges the FSIFGA and theworkers’ compensation insurance accountfrom the FIGA. The merged entity will benamed the Florida Workers’ CompensationInsurance Guaranty Association, Inc.(FWCIGA). The new Board of Directors willconsist of 11 members. The board may makereports to, assist, and make recommenda-tions to the Department in the detection andprevention of insolvencies.

The assessment rates will be capped notto exceed two (2) percent of net direct writ-


APRIL - AUGUST 97

to assist in the retirement of the Fund’s li-ability, and to help off-set reduced revenuesresulting from imposition of a capped, maxi-mum assessment rate. The assessment rateis capped at 4.52 percent.

Current methods for reporting antici-pated recoveries from the Fund on financialstatements will be phased out over time. Uni-form methods for reporting and disclosuresare required.

The Florida Department of Labor andEmployment Security shall provide an an-nual report to the Legislature which reflectsthe current status of the Special DisabilityTrust Fund.

This bill provides for an appropriation offunds to the Division of Labor and Employ-ment Security from the Special DisabilityTrust Fund: $2,743,000 is appropriated forOther Personal Services and $300,000 is ap-propriated for related expenses.

CS/House Bill 269CS/House Bill 269Chapter 97-196, Laws of Florida: Chapter 97-196, Laws of Florida: Sur-Sur-plus Lines Insuranceplus Lines Insurance; Effective Octo-; Effective Octo-ber 1, 1997, except as otherwise pro-ber 1, 1997, except as otherwise pro-vided; by the House Financial Ser-vided; by the House Financial Ser-vices Committee and Representativesvices Committee and RepresentativesBainter and Cosgrove.Bainter and Cosgrove.

Creates the Florida Surplus Lines ServiceOffice as a private, nonprofit entity to supple-ment the regulatory functions of DOI with re-spect to surplus lines insurance. The serviceoffice is required to maintain files of surpluslines policy forms, maintain records of sur-plus lines transactions, and collect and remitto DOI the existing five (5) percent tax on sur-plus lines premiums. The service office is tobe funded by a fee in the amount of up to 0.3percent on surplus lines premiums, as deter-mined by DOI. It is to operate subject to aplan of operation approved or adopted by DOI,and is to be governed by a board appointedby DOI.

The bill also provides circumstances un-der which certain surplus lines insurers maybe subject to the minimum surplus require-ments applicable to admitted insurers, ratherthan the higher requirements applicable to sur-plus lines insurers.

CS/House Bill 487CS/House Bill 487Chapter 97-204, Laws of Florida: Chapter 97-204, Laws of Florida: Pre-Pre-mium Finance Companiesmium Finance Companies ; Effective; EffectiveMay 30, 1997; by the House FinancialMay 30, 1997; by the House FinancialServices Committee and Representa-Services Committee and Representa-tive Dennis.tive Dennis.

Allows a premium finance company tobecome licensed if the company has evi-dence of a net worth of $10,000 and obtainsa $35,000 surety bond.

Eliminates the need for the audited finan-cial statement for licensure.

All premium finance companies shallhave errors and omissions coverage of atleast $500,000 covering the acts of its offic-ers, employees, and agents. Sets a maxi-mum deductible of two (2) percent for er-rors & omissions coverage. Allows premiumfinance companies with a net worth of $15million to self-insure. Gives the Departmentthe ability to adopt rules and forms to en-sure this requirement is met.

Provides that a premium finance companycannot finance or collect payments for mem-bership in an automobile club relating to main-tenance or operation of automobiles, for ac-cidental death and dismemberment insur-ance, or for any product not regulated underthe Insurance Code.

Requires notification by the insurer tothe insured and agent of any unearnedpremium and any unearned commissionheld by the agent upon cancellation of a policy.The premium finance company must notifythe agent and insured also. Additionally,within 15 days of receipt of any unearned pre-mium not used to satisfy the finance contractfrom the premium finance company, the agentmust return the unearned premium and anyunearned commission to the insured or se-cure, in writing, authorization that the agentmay use the refund to purchase a new policyfor the insured.

House Bill 743House Bill 743Chapter 97-214, Laws of Florida: Chapter 97-214, Laws of Florida: CivilCivilImmunity/InsuranceImmunity/Insurance ; Effective Octo-; Effective Octo-ber 1, 1997; by Representative Bainter.ber 1, 1997; by Representative Bainter.

Under current law, an insurance com-pany may not use the same accountant orthe same partner in an accounting firm toprepare its independent audit for more thanfive (5) consecutive years; the bill allows aninsurance company to use the same accoun-tant for up to seven (7) consecutive years.

The bill also provides limited immunityfrom civil liability for: the Florida [Automo-bile] Joint Underwriting Association; its di-rectors, agents, and employees; memberinsurers and their agents and employees;and DOI and its employees. The bill revisesprovisions dealing with the insolvency of analien (i.e., non-U.S.) insurer or reinsurer.

The bill allows an entity which holds a creditlife and disability license, other than a lend-ing institution or financial institution, to alsosell credit property insurance.

House Bill 793House Bill 793Chapter 97-216, Laws of Florida: Chapter 97-216, Laws of Florida: Mu-Mu-tual Insurance Holding Companiestual Insurance Holding Companies ;;Effective October 1, 1997; by Repre-Effective October 1, 1997; by Repre-sentative Thrasher.sentative Thrasher.

Creates a new form of corporate organi-zation known as a “mutual insurance hold-ing company.” The creation of this new cor-porate form provides an alternative to cur-rent provisions allowing a mutual insurancecompany to convert to a stockholder-ownedinsurance company.

A mutual insurance company is ownedsolely by its policyholders, while a stock in-surance company is owned by stockholders.

A mutual insurance company has moremanagement flexibility than a stock insur-ance company because the managementof the mutual insurance company neednot focus on short-term results. However,a mutual insurance company has less finan-cial flexibility than a stock insurance com-pany. A mutual insurance company cannotraise capital through the issuance of stock,its ability to issue debt instruments is severelylimited, and it lacks flexibility with respectto mergers and acquisitions. Conversion toa stock insurance company is complex andrequires the valuation of each mutualpolicyholder’s equity interest. The conceptof a mutual insurance holding company hasarisen in recent years as an alternative to thecosts and complexities of conversion.

This bill allows a mutual insurance com-pany, with the approval of DOI, to convert to apolicyholder-owned mutual insurance hold-ing company. The mutual insurance holdingcompany would own a majority of stock insubsidiaries which could be other holdingcompanies or insurance companies.

House Bill 1001House Bill 1001Chapter 97-75, Laws of Florida: Chapter 97-75, Laws of Florida: Insur-Insur-ance/Temporary Customer Represen-ance/Temporary Customer Represen-tativestatives; Effective October 1, 1997; by; Effective October 1, 1997; bythe House Financial Services Commit-the House Financial Services Commit-tee and Representative Bitner.tee and Representative Bitner.

Allows a person who has applied for acustomer representative’s license or a lim-ited customer representative’s license to belicensed for 90 days as a “temporary cus-

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lapse or cancellation for nonpaymentof premiums;

• updating the mortality tables used for thevaluation of life and annuity policies;

• authorizing the Department to examineas often as it deems necessary, as op-posed to not less than once every five(5) years, each authorized insurer, in-cluding life and health insurers, and au-thorizing the Department to contract outfor such examinations;

• allowing insurers to engage the same in-dependent certified accountant for seven(7) consecutive years to prepare their in-dependent audits—rather than five (5)years;

• providing an amended formula for cal-culation of assessments of workers’ com-pensation premiums—redefining “net pre-mium”—for assessments paid to Workers’Compensation Trust Fund and SpecialDisabilities Trust Fund;

• authorizing an entity other than a lend-ing or financial institution holding a lim-ited license for credit life or disability in-surance to also be authorized to sellcredit property insurance;

• updating a reference to the National As-sociation of Insurance Commissioners’Insurance Holding Company SystemRegulatory Act and the Insurance Hold-ing Company System Model RegulationAct, as existing on January 1, 1997.

CS/Senate Bill 1246CS/Senate Bill 1246Chapter 97-177, Laws of Florida: Chapter 97-177, Laws of Florida: StateStateMinimum Building CodesMinimum Building Codes ; Effective; EffectiveMay 30, 1997; by Senate Governmen-May 30, 1997; by Senate Governmen-tal Reform and Oversight Committeetal Reform and Oversight Committeeand Senator Dudley.and Senator Dudley.

Restricts provisions that may be includedin the development of or amendment to anyState Minimum Building Code.

CS/House Bill 443CS/House Bill 443Chapter 97-19, Laws of Flor ida:Chapter 97-19, Laws of Flor ida:Firesafety Continuing EducationFiresafety Continuing Education; Ef-; Ef-fective April 22, 1997; by House Busi-fective April 22, 1997; by House Busi-ness Regulation & Consumer Affairsness Regulation & Consumer AffairsCommit tee and Representa t iveCommit tee and Representa t iveTrovi l l ion.Trovi l l ion.

The bill provides for continuing edu-cation for holders of Contractor V certifi-cates. The continuing education hoursare required to be obtained within the li-censure year except that acceptable train-

ing and education, including seminarsand conferences rece ived wi th in 18months prior to June 30, 1997, are allowedduring this first year of continuing educa-tion requirement.

House Bill 1603House Bill 1603Chapter 97-124, Laws of Flor ida:Chapter 97-124, Laws of Flor ida:Firesafety Board MembershipFiresafety Board Membership; Effec-; Effec-tive July 1, 1997; by Representativestive July 1, 1997; by RepresentativesFuller and Westbrook.Fuller and Westbrook.

Provides that a holder of a fire equip-ment license or permit may opt out ofworking on halon extinguishers and sys-tems and, thereby, not be subject to therequirement of purchasing the necessaryequipment to work on halon. An initial90 days is added to the existing 90-daytraining period for fire equipment traineesunder certain conditions. Provides thatthe State Fire Marshal may designate oth-ers to supply identification cards as re-quired. Establishes criteria for tagging offire extinguishers and preengineered sys-tems to include NFPA and manufacturer’srequirements. Clarifies language concern-ing an investigation with respect to the fire“loss of any real or personal property.”Provides that firefighters employed by pri-vate entities under contract with public en-tities must be certified. Amends eligibil-ity requirements for the Florida Fire SafetyBoard to include those fire equipmentdealers who hold a current Class A, B, orC and a Class D fire equipment dealer’slicense. Includes permitholders in theclass of persons who may request a re-view of the recommended disciplinaryaction to the Division of State Fire Mar-shal by the Florida Fire Safety Board.

Senate Bill 1754Senate Bill 1754Chapter 97-277, Laws of Flor ida:Chapter 97-277, Laws of Flor ida:Economic Development/Surety Bonds;Economic Development/Surety Bonds;Effec t ive Ju ly 1, 1997; by SenatorEffec t ive Ju ly 1, 1997; by SenatorThomas.Thomas.

Exempts U.S. Customs surety bondsfrom s. 624.425, F.S.,—the resident agent andcountersignature law—if the bonds are is-sued by a corporate surety approved by theDepartment of Treasury and names the U.S.as the beneficiary.

Also, it amends s. 288.776, F.S., to requirea representative from an insurance com-pany involved in covering trade financingrisks to be appointed to the Florida ExportFinance Corporation.■

tomer representative.” Only one (1) tem-porary representative is allowed at any timeat a given insurance agency location, andno more than two (2) temporary represen-tatives may be employed at any one loca-tion in one calendar year. A temporary rep-resentative is able to perform the same tasksas a licensed customer representative or lim-ited customer representative, under the su-pervision of a licensed general lines insur-ance agent.

(More on the qualifications and compliance issuesof this new license in the article entitled “Tempo-rary Customer Representative - New License” onpage 12.)

Senate Bill 840Senate Bill 840Chapter 97-291, Laws of Florida: Chapter 97-291, Laws of Florida: In-In-surance/Risk-based Capital/Materialsurance/Risk-based Capital/MaterialTransactionsTransactions; Effective July 1, 1997,; Effective July 1, 1997,except as o therwise prov ided; byexcept as o therwise prov ided; bySenator Holzendorf.Senator Holzendorf.

Insurers have been subject to financialtests since 1979 to determine if they haveearned profits exceeding levels allowed ins. 627.215, F.S.—the excess profits law. If prof-its are found to be excessive, DOI requiresinsurers to refund or credit the excess to thepolicyholders of record.

The bill enacts the substance of the Na-tional Association of Insurance Commission-ers’ (NAIC) model risk-based capital andmaterial transactions laws. The NAIC re-quires adoption of these laws in order forDOI to maintain its accredited status. Therisk-based capital and material transactionslaws strengthen the Department’s ability tomonitor the solvency of insurance compa-nies. NoteNote: CS/SB 904 by the Committeeon Banking & Insurance and Senator Grantincludes the public records exemption por-tion of the NAIC model risk-based capital law.

With respect to excess profits, the bill re-moves the ability of DOI to require that acompany’s anticipated underwriting profit beless than zero. The bill does not affect profitfactors for ratemaking purposes. [Currently,DOI has the authority to require that a com-pany use a negative profit factor from insur-ance activities in making excess profits calcu-lations.] The bill also clarifies that commer-cial umbrella liability policies are includedwithin current excess profits exemptions.

The bill also makes a number of otherchanges to the Insurance Code including:• revising the requirements for life insur-

ers to provide notice of impending


APRIL - AUGUST 97

RETURN PREMIUMSOne of the most important services

agents provide to their customersis the handling of their money

which is paid as insurance premiums.More often than not, this means forward-ing their money to the insurer or premiumfinance company. In some instances, acustomer is owed a refund because of anendorsement or cancellation. Do you, astheir agent, simply trust the insurer to cal-culate the refund correctly or do youcheck it out as part of the service you oweyour clients?

Most, if not all, insurers electronicallycalculate return premiums on their policies;however, this does not mean their calcula-tions are always correct. Furthermore,agents may need to give customers an ideaof the amount of return premium to expectin the event of an endorsement or cancel-lation. Return premiums can easily be esti-mated by using a cancellation wheel.

In order to calculate a return, it is neces-sary to know the inception date of the policy,the date of endorsement or cancellation, thepolicy term (usually six or twelve months)and the correct, current premium. The can-cellation wheel is used to determine thepercentage of premium that is earned or thatis to be refunded.

To determine the pro-rate factor, setthe base line of the wheel on the incep-tion date of the policy, then move the armof the wheel to the endorsement or can-cellation date. Most wheels show the per-

centages for six and twelve months andfor earned and unearned premiums. Todetermine a refund amount, use the un-earned premium factor and multiply thecorrect premium by the factor to get thegross refund amount.

Remember, companies are allowed to

has been added to her new husband’spolicy. Using the wheel, the factor for theunearned premium is .707. In this case,the ten percent penalty applies, so multi-ply .707 by .90 and get .636. Then multi-ply the correct annual premium of $575by .636 and get a gross refund of $366.

If the premium was paid in full, the cus-tomer could expect to receive approxi-mately $366 refund. If the policy was fi-nanced, the appropriate finance chargesand any unpaid installments would be de-ducted from that amount. If the policywas not financed but was not paid in full,the amount not paid would be deducted.

If an agent pays the insurer based onnet premium (premium less commis-sion), the insurer will refund the agent orthe premium finance company on a netbasis. Unearned commissions must berefunded to the consumer or the premiumfinance company.

This method of calculation applies tomost property and casualty policies.Some exceptions are policies which areissued with minimum earned premiums(usually surplus lines, workers’ compen-sation and bonds) and policies issued bycompanies that have filed a short-rate can-cellation table.

Cancellation wheels may be ob-tained from locations where agentsupplies are sold.■

charge a ten percent penalty for policiescancelled by the insured’s request. In thatcase, multiply the factor by .90, then multi-ply that percentage by the correct premium.

Example: Your customer’s annualpolicy was effective February 14, 1997.The correct annual premium is $575. Yourcustomer cancels the policy on June 1,1997, because she is getting married and

{ }

National Catastrophe ProgramContinued from page 1

Currently, there are two bills pendingbefore Congress designed to help states andthe insurance industry cope with major natu-ral disasters.

One measure (H.R. 219) is sponsored byReps. Rick Lazio of New York and Vic Fazioof California; the other (H.R. 230) by one ofFlorida’s own Congressmen, Rep. BillMcCollum. Both would provide federal re-insurance, financed by industry premiums,to help cover losses from a catastrophichurricane, earthquake, tidal wave, or volca-nic eruption. The two bills differ in detailsand scope, but the best features of each can

and should emerge from the lawmaking pro-cess. The U.S. House Subcommittee onHousing and Community Development isholding public hearings on the legislation,including one held in Miami on August 25.

Obviously, this is a topic of great concernto Florida and to each of you as insuranceagents. I testified in support of a federal planat the Miami hearing and intend to continuelobbying my former colleagues in Congresson this issue. I hope you will join in this ef-fort. I’m also urging insurance companies,consumer groups and my fellow insuranceregulators across the nation to support this

legislation. By working together, we canachieve a national disaster insurance pro-gram that will help make homeowners’ in-surance available and affordable throughoutour land.■

12THE


Temporary Customer Representative– New License –

HB 1001HB 1001, passed by the 1997 Florida Legislature, provides for Temporary Customer Representative’s licenses., passed by the 1997 Florida Legislature, provides for Temporary Customer Representative’s licenses.Such a license shall be granted upon finding that the applicant:Such a license shall be granted upon finding that the applicant:

a) Is 18 years of age;

b) Is employed at the time of applicationfor license, and at all times throughoutthe existence of the temporary license,by only one (1) General Lines agencyor licensed General Lines agent;

c) Is supervised by one (1) licensed andappointed General Lines agent whowill oversee the work of the applicantand be responsible for the applicant'sacts under s 626.7355, F.S. Any indi-vidual who is currently serving an ad-ministrative probation imposed by theDepartment shall not be permitted toact as the designated supervising Gen-eral Lines agent to supervise the ac-tivities of a temporary licensee;

d) Is a bona fide resident of Florida, Geor-gia or Alabama;

e) Has no law enforcement record(within the last five [5] years) show-ing that the applicant has been con-victed, found guilty, or pled nolo con-tendere to a felony or any crime pun-ishable by one (1) year or more inprison;

f) Is not the subject of pending criminal,administrative or civil charges;

g) Is not serving criminal probation for afelony crime or any misdemeanorcrimes which are punishable by one(1) year or more in prison; participat-ing in a pre-trial intervention programor on administrative probation issuedby the Department of Insurance;

h) Provides evidence of enrollment in acustomer representative educationalqualification course approved by theDepartment;

i) Is employed with an agency which isin compliance with the Primary Agentlaw (Section 626.592, F.S.).

The Temporary Customer Represen-tative license is good for 90 days and iseffective the date that the supervisingGeneral Lines agent certifies theapplicant on a form prescribed by theDepartment. This form, along with theapplication for licensure and otherrequired information and fees, must besubmitted to the Department within 48hours of employment as a TemporaryCustomer Representative.

Compliance Issues:Compliance Issues:

• There must be no more than one (1)Temporary Customer Representativelicensee in the employing GeneralLines agency location where the tem-porary licensee is housed. The tem-porary licensee shall be housedwholly and completely within the ac-tual confines of the office of the agentor agency represented by the Tempo-rary Customer Representative. Suchagency must be in compliance withthe provisions of Section 626.592, F.S.,commonly referred to as the PrimaryAgent law, for the most recent report-ing period. No such temporary lic-ensee may be employed at any loca-tion except where the temporarylicensee’s designated supervisingGeneral Lines agent spends his or herfull time. No General Lines agency lo-cation may employ more than two (2)Temporary Customer Representativelicensees in one (1) calendar year.

• The temporary licensee cannot be theonly person conducting the businessof insurance in the office at any time.

• The applicant’s employer and super-vising General Lines agent shall be re-sponsible for the acts of any licenseeunder this section.

• Under the temporary license, the lic-ensee shall have the authority tohandle only such classes of businessas the supervising General Lines agentis authorized (licensed and ap-pointed) to handle. A temporary lic-ensee shall not transact life or healthinsurance business under this license.

• After expiration of the temporarylicense, in no event shall a temporarylicensee licensed under this sectionperform any of the functions forwhich a Customer Representative orGeneral Lines agent’s license isrequired—unless the temporaryl icensee has passed the writ tenexamination for a regular CustomerRepresentative or General Linesagent’s license and has subsequentlybeen licensed and appointed as suchby the Department.

• The Department shall have the au-thority to take administrative actionagainst the license of a temporaryl icensee or supervis ing GeneralLines insurance agent for conductwhich is in violation of any provisionof this section or other provisions ofthe Insurance Code or rules of theDepartment.

To ensure compliance with the provisionsof this law, the Bureau of Agent andAgency Investigations will be conductingrandom visits to the agency locationswhere temporary licensees areemployed..■


APRIL - AUGUST 97

The Viatical Bill passed by the 1996Florida Legislature provides that the Depart-ment of Insurance shall license and regu-late Viatical Settlement Providers (compa-nies) and Viatical Settlement Brokers (indi-viduals or firms). The law also provides thatthe Department shall monitor the conductof these licensees as it relates to the viator(seller of the life insurance contract).

A licensed life insurance agent may per-form the functions of a Viatical Broker with-out any additional licenses from the Depart-ment as long as the agent is properly ap-pointed by the Viatical Provider being rep-resented. All other persons or entities mustbe licensed by the Department to act as aViatical Broker or Provider.

Viatical Brokers can only be appointed

Carriers and agents who insure em-ployers, contractors, or minimum pre-mium policies for workers' compensationinsurance should be aware of the follow-ing statute. This statute applies to thoseinsureds who obtain building permits andwho must provide workers' compensa-tion proof of insurance to municipalitiesand governmental agencies.

Section 440.103, F. S., Building permits.Except as otherwise provided in thischapter, every employer shall, as a con-dition to receiving a building permit, showproof that it has secured compensationfor such employees under this chapter asprovided in ss. 440.10 and 440.38. Suchproof of compensation must be evi-

Notice to Carriersand Agents

VIATICALS

by Viatical Providers who have been licensed by the Department. Until recently there wereno authorized Viatical Providers. Following are the five providers authorized in Florida (atthe time of this writing):

Viaticus, Inc.200 South Wacker DriveChicago, IL 60606Phone (800) 390-1390FAX (800) 490-1490

Dedicated Resources of Florida, Inc.4723 West Atlantic Avenue, Suite A-2Delray Beach, FL 33445Phone (561) 495-1934FAX (561) 495-9089

Mutual Benefits Corporation2881 East Oakland Park Boulevard, Suite 200Ft. Lauderdale, FL 33306Phone (954) 564-7990FAX (954) 564-7996

ViatiCare Capital, L. P.1300 Nicollet Mall, Suite 4060-AMinneapolis, MN 55403Phone (800) 333-2249FAX (612) 333-0056

Viatical Settlement Brokers should be sure that they are properly appointed by the ViaticalProvider they are representing and that the provider is authorized to conduct business inFlorida. Representing an unlicensed provider or broker could result in administrative penal-ties for aiding and abetting an unauthorized entity.

To confirm whether a Viatical Provider or Broker is licensed in Florida, call our InsuranceConsumer Helpline @ 1-800 -342 -2762. To determine whether you are properly appointed bya Viatical Provider, call the Bureau of Licensing @ (904) 922-3137, Ext. 1101.■

Wm. Page & Associates, Incd/b/a Page & Associates and/or The Lifeline Program2810 East Oakland Park Boulevard, Suite 300Ft. Lauderdale, FL 33306Phone (954) 568-3658FAX (954) 568-3685

The law requires that all workers'compensation certificates of insur-ance, which are issued to secure abuilding permit for a specific job,must show the words “minimum pre-mium policy” on the face of the cer-tificate. This applies to all contractorsand sub-contractors performing workthat requires a building permit.

denced by a cer-tificate of cover-age issued by thecarrier, a valid ex-emption certifi-cate approved bythe Division ofWorkers’ Com-pensation, or acopy of theemployer's au-thority to self-in-sure. Each certificate of coverage mustshow on its face whether or not cover-age is secured under the minimum pre-mium provisions of the National Councilof Compensation Insurers’ rules. The

words "minimum premium policy" or simi-lar language may be typed, printed,stamped or legibly handwritten.

14THE


DISCIPLINARYACTIONS

January-June 1997

Many of the following disciplinary actions have been re-solved through consent orders based upon settlement stipu-lations in which there was no finding or admission of guilt bythe licensee. The Department believes that notification ofthese actions is in the public interest and, although everyeffort is made to provide correct information, our readers arecautioned to check with the Department before making a de-cision based upon this listing. This listing does not reflectpending appeals or requests for hearings. Inquiries shouldbe directed to: Bureau of Agent and Agency Licensing, 200East Gaines Street, Larson Bldg, Tallahassee, FL 32399-0319;telephone (850) 922-3137.

Warning: No part of this listing may be used by alicensee to gain a competitive advantage over anyperson named herein. Any licensee who does so maybe in violation of Section 626.9541(1)(c), F.S.

SUSPENSIONS

Last Name, First, MI City St.

Aronfeld Robert D Miami FLBarber Ruth M Belleview FLBendana Nancy M Miami FLBolding Jr Edward L Tampa FLBoser Thomas E Sarasota FLBraddy Jimmy M Havana FLChacon Raul E Tampa FLChipman David R West Palm Beach FL*Day Jr Samuel L Lynn Haven FLDudley Sally J Largo FLFloyd James B Tallahassee FLGiraud Raymond A Orlando FLHardin Diana M Fort Pierce FLJanovitz Morris L N. Miami Beach FLMarchant Stephen Orlando FLMidulla Joseph A Brandon FLMiranda Michael J Hialeah FLOshea Kelley J Coral Springs FLPou Maria A Hialeah FLRobinson Jr Willie Sarasota FLRodriguez Mario J Miami FLRodriguez-Bajdor Rosa Mara Miami FLRojas Fernando G Miami FLSantisteban Peter G Miami FLSanz Justo M Hialeah FL

Severe Jean G Union NJSmith John R Okeechobee FLSmith William M Belleville ILSousa Joaquin Miami FLStrother Stanley M Belleview FLTriplitt Roger D St Petersburg FL

*License reinstated 5/29/97

■ ● ■

REVOCATIONS

Last Name, First, MI City St.

Advantage Title Inc Pembroke Pines FLAlexander II Edwin F Schaumburg ILAll American Title Inc Winter Haven FLAndarge Fozia M Orlando FLBachman Lynn Clearwater FLBender Francis J St Petersburg FLBibaud David F West Palm Beach FLBright Amy L Fort Walton Beach FLBross Michael P Mulberry FLBrown Patricia A Sebring FLBurns Francis R Punta Gorda FLButler Rickey K Kissimmee FLCarrington Ricardo I St Petersburg FLChristie Vincent W Casper WYClouse Daniel G Tallahassee FLColgrove James W Coral Springs FLContinental Title Services Inc Orange Park FLCountrywide Title Co Inc Port Charlotte FLCourtois Yvrose Opa Locka FLCox III John M Winter Park FLCrockett Brian E Beltsville MDDailey Elizabeth Macon GADavies David L Altamonte Springs FLDicks William J Chattahoochee FLDiss David M Tampa FLDixon Harry W Lake Worth FLDonovan Jeffrey M Bradenton FLEilers Kenneth J Hartford CTElkins Ranita S Plant City FLEllwood Gary F Fort Pierce FLEnsure Title Corporation Hollywood FLFargo Anthony J Rochester NYFaulkner Jr Donald E St Louis MOFindley William L Pasadena TXFischel Ronald F Longwood FLFlorida Suncoast Title Services Largo FLFlukers John A Hialeah FLFrancois Jackson M West Palm Beach FLFrank Steven Coral Springs FLFretz Stephen L Fort Lauderdale FLFulton Rita Carmichael CAFung-A-Fat Claudette P Miami FLGarmon Arthur C Tampa FLGonzalez Thomas P Leesburg FL


APRIL - AUGUST 97

Gonzalez Carlos L Coral Gables FLGriffis Patsy S Jacksonville FLGuadalupe Antonio Fort Lauderdale FLHarry Tonya M Sarasota FLHaskell Lyman E Jacksonville FLHerndon Jr Robert C Lakeland FLHird James R Miami FLHodges Jr George T Sanford FLHollywood’s Finest Used Cars Miramar FLHorton John M Bryn Mawr PAHunter Dwetta J Miami FLHutcherson Roslyn Apopka FLIndian River Title Corp Vero Beach FLIngram Cassiell Jacksonville FLInlet Title Company Jupiter FLJackman Roger E Fort Myers FLJames Robert Ocala FLJohnson Edward St Louis MOJohnson Curtis W Jacksonville FLKaster John W Sanford FLKiger Robert S Englewood FLKing Jerry E Orlando FLLangley William H Tampa FLLaux Anthony J Gainesville FLLee Donald W Fort Lauderdale FLLiberty Land Title Co Inc Venice FLMarrero Maria V Miami FLMartinez Vivian R Hialeah FLMesser Lucretia A Tallahassee FL

Miller James R Scottsdale AZNelson Samas Hialeah FLOlt Heath D Tampa FLParker Kenneth W Winter Springs FLParris James F Marianna FLPaxton Jr John P Pompano FLPendergrass George S Jacksonville FLPoole Joseph C Jacksonville FLRedoutey Joseph F Casselberry FLSchultheis Michael J Poincianna FLSchwartz Steven M W. Palm Beach FLScreen Natria Tallahassee FLSendel Elizabeth J Vienna VASmith Collis A Panama City Beach FLSmith Geroge D Sarasota FLSpringen Daniel E Orlando FLSuarez Jesus Key Biscayne FLSullivan Jeffrey S Keystone Heights FLThe Car Lot Tallahassee FLTucker Ronald C Cape Canaveral FLVandyne Bruce E Heathrow FLWalker William S Daytona Beach FLWhite Michael F Altamonte Springs FLWilliams David S Orlando FLWilliams(Pulido) Karen Y Brandon FLWilson Olivia E Tampa FLWortham Danette L Bradenton FLWright Robert K Gulf Breeze FLZolnoski Duane A Lakeland FL

NEW COMPANIESGateway Insurance CompanyGateway Insurance Company was

authorized on 4/28/97. Lines of business:Reinsurance - Commercial Automobile Li-ability, Commercial Auto Physical Disabil-ity. Address: 52 Maryland Plaza, St. Louis,MO 63108; telephone: (314) 361-3600.

Alaska National Insurance Com-Alaska National Insurance Com-panypany was authorized on 4/28/97. Lines ofbusiness: Reinsurance - Ocean Marine,Workers’ Compensation, Other Liability,Commercial Automobile Liability, Com-mercial Auto Physical Disability. Address:7001 Jewel Lake Road, Anchorage, AK99502; telephone: (907) 248-2642.

Mid-State Surety CorporationMid-State Surety Corporation wasauthorized on 4/21/97. Lines of business:Reinsurance - Surety. Address: 3400 EastLafayette, Detroit, MI 48207; telephone:(313) 882-7979.

AHL Select HMO, Inc. AHL Select HMO, Inc. was authorizedon 4/21/97. Lines of business: Health Main-tenance Organizations. Address: 1776 Ameri-can Heritage Life Drive, Jacksonville, FL32224; telephone: (904) 922-2764.

Sunamerica Nat ional Li fe Insur-Sunamerica Nat ional Li fe Insur-ance Companyance Company was authorized on 3/24/97.Lines of business: Reinsurance - Life. Ad-dress: One Sunamerica Center Los Ange-les, CA 90067; telephone: (310) 772-6000.

Sirius Reinsurance CorporationSirius Reinsurance Corporation wasauthorized on 7/06/97. Lines of business: Fire,Allied Lines, Farmowners Multi Peril,Homeowners Multi Peril, Commercial MultiPeril, Ocean Marine, Inland Marine, Auto War-ranties, Medical Malpractice, Earthquake. Re-insurance - Workers’ Compensation, Other Li-ability, Prepaid Legal, Private Passenger AutoLiability, Reinsurance - Commercial Auto Liabil-

ity, PPA Physical Damage, Commercial AutoPhysical Damage, Aircraft, Fidelity, Surety,Bailbonds, Glass, Burglary and Theft, Boilerand Machinery, Credit, Livestock, IndustrialFire, Credit Disability, Accident and Health,Industrial Extended Coverage, Mobile HomeMulti Peril, Mobile Home Physical Damage,Multi Peril Crop, Home Warranties, ServiceWarranties (non-auto), Workers’ Compensa-tion. Address: 110 William Street, New York,NY 10038; telephone (212) 225-1000.

Tampa General HealthPlan, IncTampa General HealthPlan, Inc.,was authorized on 6/28/97. Lines of busi-ness: Health Maintenance Organizations.Address: 100 S. Ashley Drive, Suite 300,Tampa, FL 33602; telephone (813) 576-5020.

16THE


INTERCOMINTERCOMTHETHE

INTERCOMINTERCOMThe IntercomThe Intercom is published bythe Department of Insurance,Division of Agent and Agency Services,200 East Gaines Street,Tallahassee, FL 32399-0318.

Lucy WelchEditor/Publisher

Don PrideCynthia FullerElaine ThornburgCindy Gokel (FHCF)Jane Hunter

We welcome suggestions and inquiries concerning The Intercom.The Intercom. Writtensuggestions should be mailed to Lucy Welch, Florida Department of Insurance,200 E. Gaines Street, Tallahassee, Florida 32399-0318.©Copyright all rights reserved. Reproduction in whole or in part withoutpermission is prohibited.

Department of InsuranceDivision of Agent and Agency Services200 East Gaines StreetTallahassee, FL 32399-0318.

Bill NelsonBill NelsonTreasurer/Insurance Commissioner/Fire MarshalTreasurer/Insurance Commissioner/Fire Marshal

DIVISION OF AGENT AND AGENCY SERDIVISION OF AGENT AND AGENCY SERVICESVICES

John E. HaleJohn E. Hale, Division DirectorMary Alice PalmerMary Alice Palmer, Assistant Division DirectorPhil FountainPhil Fountain, Chief, Bureau of InvestigationsShirley KernsShirley Kerns, Chief, Bureau of Licensing

Bureau of Invest igat ionsBureau of Invest igat ions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (850) 922-3136Bureau of LicensingBureau of Licensing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (850) 922-3137Educat ionEducat ion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (850) 922-3134 Ext. 1108Quali f icat ions Sect ionQuali f icat ions Sect ion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (850) 922-3137 Ext. 1101

Adjuster’s Qualifications•Fingerprint InformationNonresident Agents•Bail Bonds

Managing General Agents•TerminationsCustomer Representatives•Mediator Approval

License Control SectionLicense Control Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (850) 922-3137 Ext. 1100

Certification & Clearance LettersForms

Appointment RenewalsCompany & Agency Name Changes

Mailing Lists

BULK RATEU.S. Postage

PAIDPermit No. 996So. Fla Facility

Barry LanierDOI Legislative AffairsShirley KernsDenise PratherDon PowersJoan Cabbage

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