The revisions in the proposed amendment are intended to conform Rule 69B-231.150, F.A.C. relating to administrative license actions based on criminal proceedings to changes already made to Rule 69B-211.042, F.A.C.

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Insurance Agents and Agency Services

RULE NO.:RULE TITLE:

69B-231.150Criminal Proceedings

PURPOSE AND EFFECT: The revisions in the proposed amendment are intended to conform Rule 69B-231.150, F.A.C., relating to administrative license actions based on criminal proceedings to changes already made to Rule 69B-211.042, F.A.C.

SUMMARY: Subsections (1) and (2) are amended to clarify what is meant by the terms “felony” and “revocation”. Also, the word “immediate” is removed to better reflect the administrative process requirements which exist. Subsection (3) is deleted to remove standards which are in conflict with statutory changes. A new subsection (3) is added to conform the penalty scheme with Section 626.207, F.S., and Rule 69B-211.042, F.A.C. Subsection (4) incorporates definitions from Section 626.207, F.S. Subsection (5) adds qualifications for administrative actions based on criminal proceedings outside the United States.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The rule is being amended to conform to changes made to Section 626.207, F.S. The rule does not impose any regulatory costs above those imposed directly by the underlying statute. The statutory costs are themselves very limited. The effect of the statute is to make some insurance agents subject to revocation of licensure that would not have been prior to the amendment of Section 626.207, F.S.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 624.308, 626.207(8) FS.

LAW IMPLEMENTED: 624.307(1), 624.308, 626.207, 626.611, 626.621, 626.631, 626.641 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: Thursday, September 12, 2013, 9:30 a.m.

PLACE: 116 Larson Building, 200 East Gaines Street, Tallahassee, Florida

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Barry Lanier @ [phone] or [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Barry Lanier, Chief, Bureau of Investigation, Division of Insurance Agent & Agency Services, Department of Financial Services, 200 E. Gaines Street, Room 416A, Larson Building, Tallahassee, FL 32399-0320, [phone] or [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69B-231.150 Criminal Proceedings.

(1) If a licensee is convicted by a court of a violation of the Insurance Code or a felony (regardless of whether or not such felony is related to an insurance license), the penalty shall be immediate revocations.

(1)(2) While licensed by the Department, if If a licensee is not convicted of, or but has been found guilty of or has pled pleaded guilty or nolo contendere (no contest) to, a felony or a crime punishable by imprisonment of 1 year or more under the law of the United States of America or of any state thereof or under the law of any other country, regardless of adjudication which is a crime involving moral turpitude and is a crime involving breach of trust or dishonesty, the penalty shall be revocation of all licenses and appointments held by the licensee. The terms of revocation and the conditions for reapplying are contained in subsection 626.641(2) and Section 626.207, Florida Statutes.

(3) If a licensee is not convicted of, but has been found guilty of or has pleaded guilty or nolo contendere to, a felony or a crime punishable by imprisonment of 1 year or more under the law of the United States of America or of any state thereof or under the law of any other country, which is a crime involving moral turpitude or is a crime involving breach of trust or dishonesty, the penalties are as follows:

(a) If the conduct directly relates to activities involving the business of insurance, the penalty shall be revocation.

(b) If the conduct indirectly relates to the business of insurance or involves dishonesty or breach of trust, such as theft of money or property, or mishandling or misappropriation of money, the penalty shall be a 12-month suspension.

(c) If the conduct is not related to the business of insurance and does not involve dishonesty or breach of trust, the penalty shall be a 6-month suspension.

(4) If a licensee is not convicted of, but has been found guilty of or has pleaded guilty or nolo contendere to, a felony or a crime punishable by imprisonment of 1 year or more under the laws of the United States of America or of any state thereof or under the law of any other country, which is not a crime involving moral turpitude and is not a crime involving breach of trust or dishonesty, the penalties are as follows:

(a) If the conduct directly relates to the business of insurance, the penalty shall be a 24-month suspension.

(b) If the conduct indirectly relates to the business of insurance such as theft of money or property, or mishandling or misappropriation of money, the penalty shall be a 12-month suspension.

(c) If the conduct is not related to the business of insurance, the penalty shall be a 3-month suspension.

(2)(a) In accordance with Section 626.207, Florida Statutes, any licensee, while licensed by the Department, that is convicted of, has pled guilty or nolo contendere (no contest) to, or was found guilty of, a first degree felony, a capital felony, a felony involving money laundering, fraud or embezzlement, or a felony directly related to the financial services business, regardless of adjudication, is permanently barred from applying for reinstatement of any revoked or suspended license and from applying for any license under the Florida Insurance Code.

(b) While licensed by the Department, any licensee that is convicted of, has pled guilty or nolo contendere (no contest) to, or was found guilty of, a felony involving moral turpitude, and such felony is not specifically included in section (2)(a) of this rule or subsection 626.207(3), Florida Statutes, regardless of adjudication, is prohibited from applying for reinstatement of any revoked or suspended license and from applying for any license under the Florida Insurance Code in accordance with Section 626.207, Florida Statutes, for a period of 15-years (subject to modification pursuant to Rule 69B-211.042) beginning in accordance with Section 626.207, Florida Statutes, from that person’s final release from supervision or upon completion of that person’s criminal sentence, including payment of fines, restitution, and court costs.

(c) While licensed by the Department, any licensee that is convicted of, has pled guilty or nolo contendere (no contest) to, or was found guilty of, a felony not involving moral turpitude, regardless of adjudication, is prohibited from applying for reinstatement of a revoked or suspended license and from applying for any license under the Florida Insurance Code for a period of 7-years, in accordance with Section 626.207, Florida Statutes, beginning from that person’s final release from supervision or upon completion of that person’s criminal sentence, including payment of fines, restitution, and court costs for such crime.

(3) For purposes of this rule, the definitions of the terms “financial services business,” “felony of the first degree” and “capital felony” contained in Section 626.207, Florida Statutes, apply.

(4) For purposes of this rule, in the event that a conviction or plea is based on the law of a country other than the United States, the Department shall consider the following factors to determine if the crime is the equivalent of a felony crime under Section 626.611 and/or 626.621, Florida Statutes:

(a) Whether the crime would be a felony under the laws of the United States or any state within the United States; and

(b) The degree of penalty associated with the same or similar crimes in the United States.

Rulemaking Specific Authority 624.308, 626.207(8)(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2), 626.611, 626.621, 626.631, 626.631(1), 626.641 FS. History–New 7-13-93, Amended 9-23-02, Formerly 4-231.150, Amended 8-15-06, __________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Barry Lanier, Chief, Bureau of Investigation, Division of Insurance Agent & Agency Services, Department of Financial Services

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jeff Atwater, Chief Financial Officer, Department of Financial Services

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: August 8, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: April 15, 2013