08-001645RP Life Insurance Settlement Association vs. Office Of Insurance Regulation And Financial Services Commission Status: Closed DOAH Final Order on Friday, September 12, 2008.

Summary: Financial Services Commission`s Proposed Rule constitututes an invalid exercise of delegated legislative authority within the meaning of Section 120.52(8), Florida Statutes.

STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

LIFE INSURANCE SETTLEMENT )

ASSOCIATION, )

)

Petitioner, )

)

vs. ) Case No. 08-1645RP

)

OFFICE OF INSURANCE REGULATION AND FINANCIAL SERVICES )

COMMISSION, )

)

)

Respondents. )

)

SUMMARY FINAL ORDER

This cause came before Carolyn S. Holifield, Administrative

Law Judge of the Division Administrative Hearings, for

disposition through summary final proceedings.

STATEMENT OF THE ISSUE

The issue for determination is whether Proposed Rule

69O-204.101 is an invalid exercise of delegated legislative

authority.

PRELIMINARY STATEMENT

On November 30, 2007, in Volume 33, Number 48 of the

Florida Administrative Weekly, the Office of Insurance

Regulation, published the text of Proposed Rule 69O-204.101

entitled, "Disclosures to Viator of Disbursement."

Subsequently, Respondent, Office of Insurance Regulation, filed

a Notice of Change to the proposed rule on February 15, 2008,

and, again, on February 22, 2008.

On April 4, 2008, Petitioner, Life Insurance Settlement

Association, filed a Petition to Determine the Invalidity of a

Proposed Rule (hereinafter referred to as "Petition")

challenging the validity of Proposed Rule 69O-204.101.

The case was assigned to the undersigned on April 8, 2008.

In a Notice of Hearing issued April 8, 2008, the final hearing

was scheduled for May 2, 2008.

On April 21, 2008, during a status conference, Petitioner

and Respondent made an ore tenus Motion for Continuance of the

final hearing. On April 22, 2008, the undersigned issued an

Order Granting the Continuance and Requiring a Status Report.

On April 30, 2008, the parties filed a joint status report

in which they indicated that the factual issues in the case had

been resolved and required no action by the undersigned. 1 The

parties further stipulated that the remaining issues of law in

the case could be resolved through the filing of proposed

summary final orders in lieu of a final hearing. On May 13,

2008, an Order was issued requiring the parties to file proposed

summary final orders on June 6, 2008.

Both parties timely filed Proposed Summary Final Orders.

FINDINGS OF FACT

1. Respondent, Office of Insurance Regulation (hereinafter

referred to as "OIR"), is an agency of the State of Florida,

created within the Financial Services Commission (hereinafter

referred to as "Commission"). § 20.121(3)(a)1., Fla. Stat.

(2007). 2

2. Pursuant to Subsection 21.121(3)(a), the OIR is

responsible for all activities concerning insurers and other

risk-bearing entities, including licensing, rates, policy forms,

market conduct, claims, issuance of certificates of authority,

solvency, viatical settlements, premium financing, and

administrative supervision, as provided under the Florida

Insurance Code or Chapter 636. The Florida Insurance Code

includes Chapters 624 through 632.

3. The Commissioner of Insurance Regulation is the agency

head of the OIR. However, the Commission is the agency head for

purposes of rulemaking. § 20.121(3)(c).

4. The matter at issue in this proceeding is Respondent's

Proposed Rule 69O-204.101 entitled, "Disclosures to Viator of

Disbursement" (the "Proposed Rule"). The Commission advertised

the text of the Proposed Rule on November 30, 2007, in

Volume 33, Number 48, of the Florida Administrative Weekly, and,

subsequently, filed a Notice of Change to the Proposed Rule on

February 15, 2008, and, again, on February 22, 2008. A final

public hearing regarding the Proposed Rule was conducted by the

Commission on March 25, 2008, at which time the Commission

approved the Proposed Rule for final adoption.

5. According to the published notice, the purpose and

effect of Proposed Rule 69O-204.101 is "to establish disclosures

to viators of reconciliation of funds."

6. The text of the Proposed Rule, as noticed for final

adoption, reads as follows:

69O-204.101 Disclosures to Viator of

Disbursement.

(1) Prior to or concurrently with a

viator's execution of a viatical settlement

contract, the viatical settlement provider

shall provide to the viator, in duplicate, a

disclosure statement in legible written form

disclosing:

(a) The name of each viatical settlement

broker who receives or is to receive

compensation and the amount of each broker's

compensation related to that transaction.

For the purpose of this rule, compensation

includes anything of value paid or given by

or at the direction of a viatical settlement

provider or person acquiring an interest in

one or more life insurance policies to a

viatical settlement broker in connection

with the viatical settlement contract; and

(b) A complete reconciliation of the

gross offer or bid by the viatical

settlement provider to the net amount of

proceeds or value to be received by the

viator related to that transaction. For the

purpose of this rule, gross offer or bid

shall mean the total amount or value offered

by the viatical settlement provider for the

purchase of an interest in one or more life

insurance policies, inclusive of

commissions, compensation, or other proceeds

or value being deducted from the gross offer

or bid.

(2) The disclosure statement shall be

signed and dated by the viator prior to or

concurrently with the viator's execution of

a viatical settlement contract with the

duplicate copy of the disclosure statement

to be retained by the viator.

(3) If a viatical settlement contract has

been entered into and the contract is

subsequently amended or if there is any

change in the viatical settlement provider's

gross offer or bid amount or change in the

net amount of proceeds or value to be

received by the viator or change in the

information provided in the disclosure

statement to the viator the viatical

settlement provider shall provide, in

duplicate, an amended disclosure statement

to the viator, containing the information in

paragraphs (1)(a) and (b). The amended

disclosure statement shall be signed and

dated by the viator with the duplicate copy

of the amended disclosure statement to be

retained by the viator. The viatical

settlement provider shall obtain the signed

and dated amended disclosure statement.

(4) Prior to a viatical settlement

provider's execution of a viatical

settlement contract, the viatical settlement

provider must have obtained the signed and

dated disclosure statement and any amended

disclosure statement required by this rule.

In transactions where no broker is used the

viatical settlement provider must have

obtained the signed and dated disclosure

statement from the viator.

(5) The documentation required in this

rule shall be maintained by the viatical

settlement provider pursuant to the

provisions set forth in Subsection

626.9922(2), Florida Statutes, and shall be

available to the office at any time for

copying and inspection upon reasonable

notice to the viatical settlement provider.

7. The Proposed Rule cites Subsection 624.308(1) and

Section 626.9925 as specific authority for the Proposed Rule.

8. The Proposed Rule cites Sections 626.9923, 626.9924,

and 626.9925 as the law implemented by the Proposed Rule.

9. The Proposed Rule involves regulation of viatical

settlement providers pursuant to Florida's Viatical Settlement

Act, Part X, Chapter 626 (hereinafter referred to as the "Act").

The Act regulates both viatical settlements and life

settlements.

10. The Act does not define "viatical settlement" or "life

settlement." However, both types of transactions involve the

sale of the ownership interest in life insurance policies. A

"viatical settlement" involves the sale of an ownership interest

in a life insurance policy by a person who is expected to live

for less than two years. A "life settlement" involves the sale

of the ownership interest in a life insurance policy by a person

who is expected to live longer than two years after the date of

the sale.

11. Viatical settlements and life settlements are

regulated in essentially the same manner and each of the

foregoing transactions are included in the definition of

"viatical settlement contract" as defined in the Act.

Therefore, references to "viatical settlements" under Florida

law refer to both life settlements and viatical settlements.

12. Subsection 626.9911(10) defines "viatical settlement

contract" as follows:

(10) "Viatical settlement contract" means

a written agreement entered into between a

viatical settlement provider, or its related

provider trust, and a viator. The viatical

settlement contract includes an agreement to

transfer ownership or change the beneficiary

designation of a life insurance policy at a

later date, regardless of the date that

compensation is paid to the viator. The

agreement must establish the terms under

which the viatical settlement provider will

pay compensation or anything of value, which

compensation or value is less than the

expected death benefit of the insurance

policy or certificate, in return for the

viator's assignment, transfer, sale, devise,

or bequest of the death benefit or ownership

of all or a portion of the insurance policy

or certificate of insurance to the viatical

settlement provider. A viatical settlement

contract also includes a contract for a loan

or other financial transaction secured

primarily by an individual or group life

insurance policy, other than a loan by a

life insurance company pursuant to the terms

of the life insurance contract, or a loan

secured by the cash value of a policy.

13. In a viatical settlement transaction, the "viatical

settlement provider" is the purchaser of the ownership interest

in a life insurance policy, including the right to receive the

policy proceeds upon the death of the insured. Also see

§ 626.9911(12). 3

14. The "viator" is the owner of an insurance policy who

sells the ownership interest in the policy. Also see

§ 626.9911(14). 4

15. The term "viatical settlement broker" is defined in

Subsection 626.9911(9), as follows:

(9) "Viatical settlement broker" means a

person who, on behalf of a viator and for a

fee, commission, or other valuable

consideration, offers or attempts to

negotiate viatical settlement contracts

between a viator resident in this state and

one or more viatical settlement providers.

Notwithstanding the manner in which the

viatical settlement broker is compensated, a

viatical settlement broker is deemed to

represent only the viator and owes a

fiduciary duty to the viator to act

according to the viator's instructions and

in the best interest of the viator. The

term does not include an attorney, licensed

Certified Public Accountant, or investment

adviser lawfully registered under

chapter 517, who is retained to represent

the viator and whose compensation is paid

directly by or at the direction and on

behalf of the viator.

16. Pursuant to Subsection 626.9911(9), the "viatical

settlement broker" is an agent of the viator and, as such, owes

a fiduciary duty to the viator to obtain the best price for the

insurance policy. Thus, typically, the viatical settlement

broker solicits bids from multiple viatical settlement providers

on behalf of the viator.

17. The Proposed Rule requires viatical settlement

providers to furnish viators with a detailed accounting of all

funds involved in viatical settlement transactions and to ensure

that viators are aware of the accounting.

18. The issues of disclosures required for viatical

settlement contracts and transactions are addressed in two

provisions of the Act, Sections 626.99181 and 626.9923.

19. Section 626.99181, Florida Statutes, requires a

viatical settlement broker to disclose its compensation and

states, "[a] viatical settlement broker shall disclose to a

prospective viator the amount and method of calculating the

broker's compensation." That provision states the

"compensation" includes "anything of value paid or given to a

viatical settlement broker for the placement of a policy."

20. Section 626.9923 addresses viatical settlement

contracts and required disclosures to viators and states that:

Viatical settlement contracts; required

disclosures.--The viatical settlement

broker, or the viatical settlement provider

in transactions in which no broker is used,

must inform the viator by the date of

application for a viatical settlement

contract:

(1) That there are possible alternatives

to viatical settlement contracts for persons

who have a catastrophic or life-threatening

illness, including, but not limited to,

accelerated benefits offered by the issuer

of a life insurance policy.

(2) That proceeds of the viatical

settlement could be taxable, and assistance

should be sought from a personal tax

advisor.

(3) That viatical settlement proceeds

could be subject to the claims of creditors.

(4) That receipt of viatical settlement

proceeds could adversely affect the

recipient's eligibility for Medicaid or

other government benefits or entitlements,

and advice should be obtained from the

appropriate agencies.

(5) That all viatical settlement

contracts entered into in this state must

contain an unconditional rescission

provision which allows the viator to rescind

the contract within 15 days after the viator

receives the viatical settlement proceeds,

conditioned on the return of such proceeds.

(6) The name, business address, and

telephone number of the independent third-

party escrow agent, and the fact that the

viator may inspect or receive copies of the

relevant escrow or trust agreements or

documents.

21. Petitioner is an established trade association in the

life settlement industry and is comprised of over 175 member

companies, some of which include Florida-licensed viatical

settlement providers who would be subject to the Proposed Rule.

Petitioner's members would be substantially affected by the

Proposed Rule because it would require them to make disclosures

to viators in addition to the disclosures required by the Act.

CONCLUSIONS OF LAW

22. The Division of Administrative Hearings has

jurisdiction over the parties and the subject matter of this

proceeding pursuant to Section 120.56.

23. Any person substantially affected by a proposed rule

may seek an administrative determination of the invalidity of

the rule on the grounds that the rule is an invalid exercise of

delegated legislative authority. § 120.56(1)(a). Petitioner

has standing under Subsection 120.56(1)(a) to challenge the

Proposed Rules as a trade association, because some of its

members would be substantially affected by the Proposed Rule.

24. The issue in this case is whether the Proposed Rule is

an invalid exercise of delegated legislative authority within

the meaning of Subsection 120.52(8)(b) and (c).

25. Subsection 120.52(8) states, in relevant part, as

following:

"Invalid exercise of delegated legislative

authority" means action which goes beyond

the powers, functions, and duties delegated

by the Legislature. A proposed or existing

rule is an invalid exercise of delegated

legislative authority if any one of the

following applies:

* * *

(b) The agency has exceeded its grant of

rulemaking authority, citation to which is

required by s. 120.54(3)(a)1.;

(c) The rule enlarges, modifies, or

contravenes the specific provisions of law

implemented, citation to which is required

by s. 120.54(3)(a)1.;

* * *

A grant of rulemaking authority is

necessary but not sufficient to allow an

agency to adopt a rule; a specific law to be

implemented is also required. An agency may

adopt only rules that implement or interpret

the specific powers and duties granted by

the enabling statute. No agency shall have

authority to adopt a rule only because it is

reasonably related to the purpose of the

enabling legislation and is not arbitrary

and capricious or is within the agency's

class of powers and duties, nor shall an

agency have the authority to implement

statutory provisions setting forth general

legislative intent or policy. Statutory

language granting rulemaking authority or

generally describing the powers and

functions of an agency shall be construed to

extend no further than implementing or

interpreting the specific powers and duties

conferred by the same statute. [Emphasis

added.]

26. According to Subsection 120.52(8), in addition to

having a grant of rulemaking authority, an agency may adopt

rules "only where the Legislature has enacted a specific

statute, and authorized the agency to implement it, and then

only if the [proposed] rule implements or interprets specific

powers or duties." See Board of Trustees of the Internal

Improvement Trust Fund v. Day Cruise Association, Inc. ,

794 So. 2d 696, 700 (Fla. 1st DCA 2001).

27. The Proposed Rule cites Subsection 624.308(1) and

Section 626.9925 as the Commission's specific authority to

promulgate the Proposed Rule.

28. Subsection 624.308(1) provides:

(1) The department and the commission may

each adopt rules pursuant to ss. 120.536(1)

and 120.54 to implement provisions of law

conferring duties upon the department or the

commission, respectively.

29. Section 626.9925 provides the following:

626.9925 Rules.-- The commission may adopt

rules to administer this act, including

rules establishing standards for evaluating

advertising by licensees; rules providing

for the collection of data, for disclosures

to viators, for the reporting of life

expectancies, and for the registration of

life expectancy providers; and rules

defining terms used in this act and

prescribing recordkeeping requirements

relating to executed viatical settlement

contracts. [5] [Emphasis supplied.]

30. Clearly, Subsection 624.308(1) provides the Commission

with the authority to adopt rules "to implement provisions of

law conferring duties upon the . . . commission." However, that

provision does not refer to or confer on the Commission any

rulemaking authority relative to disclosure to viators or to any

other provisions under the Act.

31. Section 626.9925 authorizes the Commission to adopt

rules to administer the Act, including rules . . . for

disclosure to viators."

32. Although Section 626.9925 is a "grant of rulemaking

authority" within the meaning of Subsection 120.52(8)(b), the

Commission's authority to adopt such rules is limited to

implementing the particular disclosure requirements contained

elsewhere in the Act.

33. Subsection 626.9923 of the Act addresses "viatical

settlement contracts" and "disclosure requirements".

34. The Proposed Rule identifies the laws to be

implemented as Sections 626.9923, 626.9924, and 626.9925.

35. Section 626.9923, quoted in paragraph 20 above,

requires that the enumerated disclosures be made to viators by

viatical settlement brokers. That provision requires viatical

settlement providers to make the specified disclosures only in

transactions in which no broker is used.

36. The Proposed Rule requires additional disclosures not

required or contemplated in Section 626.9923. Moreover, while

Section 626.9923 imposes disclosure obligations only on the

viatical settlement providers in transactions where a broker is

not used, the Proposed Rule imposes disclosure obligations on

viatical settlement providers in every transaction, even if a

broker is involved.

37. For these reasons, the Proposed Rule does not

implement the provisions of Section 626.9923.

38. Section 626.9924 is the second statute cited as the

law implemented by the Proposed Rule. That section states:

(1) A viatical settlement provider

entering into a viatical settlement contract

with any viator must first obtain a

witnessed document in which the viator

consents to the viatical settlement

contract, represents that he or she has a

full and complete understanding of the

viatical settlement contract and the

benefits of the life insurance policy,

releases his or her medical records, and

acknowledges that he or she has entered into

the viatical settlement contract freely and

voluntarily.

(2) All viatical settlement contracts

subject to this act must contain an

unconditional rescission provision which

allows the viator to rescind the contract

within 15 days after the viator receives the

viatical settlement proceeds, conditioned on

the return of such proceeds.

(3) A viatical settlement transaction may

be completed only through the use of an

independent third-party trustee or escrow

agent. Immediately upon receipt by the

independent third-party trustee or escrow

agent of documents from the viator to effect

the transfer of the insurance policy, the

viatical settlement provider must pay the

proceeds of the settlement to an escrow or

trust account managed by the independent

third-party trustee or escrow agent in a

financial institution licensed under Florida

law or a federally chartered financial

institution that is a member of the Federal

Reserve System, pending acknowledgment of

the transfer by the issuer of the policy.

An advance or partial payment of the

proceeds due under a viatical settlement

contract may not be used to effect transfer

of the subject policy; any such advance or

partial payment is made at the sole

discretion and risk of the viatical

settlement provider.

(4) Upon receipt of all viatical

settlement contract proceeds, the

independent third-party trustee or escrow

agent must release to the viatical

settlement provider all documents necessary

to complete the transfer of the insurance

policy or certificate of insurance so that

the transfer, assignment, sale, bequest, or

devise may be effected.

(5) The independent third-party trustee

or escrow agent must transfer all proceeds

of the viatical settlement contract within

3 business days after receiving from the

issuer of the subject policy acknowledgment

of the transfer, assignment, bequest, sale,

or devise. Failure to transfer proceeds as

required by this subsection renders the

viatical settlement contract and the

transfer, assignment, bequest, sale, or

devise voidable.

(6) A viatical settlement provider may

not negotiate or enter into a viatical

settlement contract with a viator if the

subject policy contains an accelerated

benefits provision allowing benefits to be

paid for a period in advance of the expected

death which is equal to or exceeds the time

period available under the viatical

settlement contract, and at an amount which

is equal to or exceeds the amount available

under the viatical settlement contract,

unless the issuer of the policy, in writing,

denies, declines, or refuses to provide such

accelerated benefits. If the insurer does

not respond to a request to effectuate an

accelerated benefits provision sent by

certified mail within 30 days after

receiving the request, the insurer shall be

deemed to have denied, declined, or refused

to provide such accelerated benefits.

(7) At any time during the contestable

period, within 20 days after a viator

executes documents necessary to transfer

rights under an insurance policy or within

20 days of any agreement, option, promise,

or any other form of understanding, express

or implied, to viaticate the policy, the

provider must give notice to the insurer of

the policy that the policy has or will

become a viaticated policy. The notice must

be accompanied by the documents required by

s. 626.99287(5)(a) in their entirety.

(8) If the owner of the insurance policy

is not the insured, the provider shall

notify the insured that the policy has

become the subject of a viatical settlement

contract within 20 days after the transfer

of rights under the contract.

(9) If the provider transfers ownership

or changes the beneficiary of the insurance

policy, the provider must communicate the

initial change in ownership or beneficiary

to the insured within 20 days after the

change.

(10) The viatical settlement provider who

effectuated the viatical settlement contract

with the viator (the "initial provider") is

responsible for tracking the insured,

including, but not limited to, keeping track

of the insured's whereabouts and health

status, submission of death claims or

assisting the beneficiary in the submission

of death claims, and the status of the

payment of premiums until the death of the

insured. This responsibility may be

contracted out to a third party; however,

the ultimate responsibility remains with the

initial provider. This responsibility

continues with the initial provider,

notwithstanding any transfers of the

viaticated policy in the secondary market.

This subsection applies only to those

viaticated policies that are or are to

become the subject of viatical settlement

purchase agreements.

39. Subsection 626.9924(1) requires a viatical settlement

provider to obtain a witnessed document in which the viator:

(1) consents to the viatical settlement contract; (2) represents

that he or she has a full and complete understanding of the

viatical settlement contract and benefits of the life insurance

policy; (3) releases his or her medical records; and

(4) acknowledges that he or she has entered into the viatical

settlement contract freely and voluntarily. The remainder of

Section 626.9924 provides recission rights to the viator,

procedures for releasing proceeds of the transaction,

restrictions regarding accelerated benefits, procedures for

providing notice to the insured, and tracking requirements.

40. The disclosures required in the Proposed Rules are not

mandated or contemplated by Section 626.9924, but instead are

additional disclosures. For the foregoing reason, the Proposed

Rule does not implement any provisions of Section 626.9923.

41. Section 626.9925 is the third statutory provision

cited as the law implemented by the Proposed Rule. That

provision is quoted in paragraph 29 above.

42. Section 626.9925 authorizes the Commission to adopt

rules to administer the Act, including rules "establishing

standards" for, among other things, "disclosures to viators."

In adopting rules establishing standards for such disclosures,

the Commission is not given unbridled discretion. The

Legislature enumerated the specific viator disclosures required

in Section 626.9923 of the Act. Thus, the Commission's

rulemaking authority with regard to "disclosures to viators" in

Section 626.9925 must be interpreted in conjunction with Section

626.9923. As noted above, Section 626.9923 imposes disclosure

requirements on the brokers and these requirements apply to

viatical settlement providers only when no broker is involved in

the transaction.

43. The Proposed Rule imposes the broker's duty of

disclosure on viatical settlement providers. However, Section

626.9925, standing alone or when read in conjunction with

Section 626.9923, does not authorize the Commission to impose

the broker's duty of disclosure on the viatical settlement

providers.

44. To the extent the Proposed Rule requires disclosures

which are not required by Section 626.9923, the Proposed Rule

constitutes an invalid exercise of delegated legislative

authority by exceeding the Commission's grant of rulemaking

authority.

45. The Commission's Proposed Rule constitutes an invalid

exercise of delegated legislative authority within the meaning

Commission's rulemaking authority granted in Section 626.9925;

and (2) enlarges the specific laws to be implemented.

ORDER

Based on the foregoing Findings of Fact and Conclusions of

Law, it is

ORDERED that the Proposed Rule is an invalid exercise of

delegated legislative authority.

DONE AND ORDERED this 12th day of September, 2008, in

Tallahassee, Leon County, Florida.

S

CAROLYN S. HOLIFIELD

Administrative Law Judge

Division of Administrative Hearings

The DeSoto Building

1230 Apalachee Parkway

Tallahassee, Florida 32399-3060

[phone] SUNCOM 278-9675

Fax Filing [phone]

www.doah.state.fl.us

Filed with the Clerk of the

Division of Administrative Hearings

this 12th day of September, 2008.

ENDNOTES

1/ The Status Report indicated that these factual issues

included those in paragraphs 24 and 26(c), both of which allege

that the Proposed Rule is invalid because it is vague,

arbitrary, or capricious.

2/ Unless otherwise indicated, all references are to 2007

Florida Statutes.

3/ Section 626.9911(12) defines "viator settlement provider" as

follows:

"Viatical settlement provider" means a

person who, in this state, from this state,

or with a resident of this state,

effectuates a viatical settlement contract.

4/ Section 626.9911(14) defines "viator" as follows:

"Viator" means the owner of a life insurance

policy or a certificateholder under a group

policy, which policy is not a previously

viaticated policy, who enters or seeks to

enter into a viatical settlement contract.

This term does not include a viatical

settlement provider or any person acquiring

a policy or interest in a policy from a

viatical settlement provider, nor does it

include an independent third-party trustee

or escrow agent.

5/ Each of the other areas, including Section 626.9925, in which

the Commission may adopt rules, are specifically addressed in

various provisions in the Act. For example, Subsection

626.9913(2) addresses reporting and collection of data; Section

626.9923 addresses disclosures to viators; Subsection

626.9913(2) addresses reporting of life expectancies; Section

626.99175 addresses registration of life expectancy providers;

and Section 626.9922 addresses recordkeeping requirements.

COPIES FURNISHED :

Kevin M. McCarty, Commissioner

Office of Insurance Regulation

200 East Gaines Street

Tallahassee, Florida 32399-0305

Steve Parton, General Counsel

Office of Insurance Regulation

200 East Gaines Street

Tallahassee, Florida 32399-0305

James A. McKee, Esquire

Foley & Lardner LLP

106 East College Avenue, Suite 900

Tallahassee, Florida 32301

Stephen H. Thomas, Esquire

Office of Insurance Regulation

200 East Gaines Street

Tallahassee, Florida 32399

Scott Boyd, Executive Director

and General Counsel

Joint Administrative Procedures Committee

120 Holland Building

Tallahassee, Florida 32399-1300

Liz Cloud, Program Administrator

Bureau of Administrative Code

Department of State

R.A. Gray Building, Suite 101

Tallahassee, Florida 32399-0250

NOTICE OF RIGHT TO JUDICIAL REVIEW

A party who is adversely affected by this Final Order is

entitled to judicial review pursuant to Section 120.68, Florida

Statutes. Review proceedings are governed by the Florida Rules

of Appellate Procedure. Such proceedings are commenced by

filing the original notice of appeal with the Clerk of the

Division of Administrative Hearings and a copy, accompanied by

filing fees prescribed by law, with the District Court of

Appeal, First District, or with the District Court of Appeal in

the Appellate District where the party resides. The notice of

appeal must be filed within 30 days of rendition of the order to

be reviewed.