The purpose and effect of this rulemaking is the repeal of rules 69B-151.009, .012, .105, .106 & .107 in Rule Chapter 69B-151, F.A.C., because the rules are duplicative or unnecessary. Rule 69B-151.004, F.A.C., is being amended to clarify the ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Insurance Agents and Agency Services

RULE NOS.:RULE TITLES:

69B-151.001Purpose

69B-151.002Definition of Replacement

69B-151.003Other Definitions

69B-151.004Exemptions

69B-151.006Duties of Replacing Agent

69B-151.009Penalties

69B-151.010Approved Forms

69B-151.012Separability

69B-151.105Notice Furnished by Forms

69B-151.106Violation

69B-151.107Effective Date

PURPOSE AND EFFECT: The purpose and effect of this rulemaking is the repeal of rules 69B-151.009, .012, .105, .106 & .107 in Rule Chapter 69B-151, F.A.C., because the rules are duplicative or unnecessary. Rule 69B-151.004, F.A.C., is being amended to clarify the insurance policies that do not fall under the definition of life insurance. Further, the rulemaking includes the deletion of references to “insurer” and unnecessary definitions. Lastly, the rulemaking corrects a formatting issue in the reference to Form OIR-B2-312.

SUMMARY: These rule repeals and amendments are part of the agency’s comprehensive review of existing rules that focused on eliminating those that were determined to be unnecessary or duplicative.

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 amendments do not impose any costs. The Division of Agent & Agency Services conducted an analysis of the proposed rule’s potential economic impact and determined that the impact does not exceed any of the criteria established in subsection 120.541(1), F.S., and the rule amendment therefore does not require legislative ratification pursuant to subsection 120.541(3), 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(1), 626.9611, 626.9641, FS.

LAW IMPLEMENTED: 624.307(1), 626.9521, 626.9541, 626.9641, 626.99, 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: Monday, October 12, 2015, 9:00 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: Cindy Benefield, telephone: [phone], e-mail: [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: Cindy Benefield, Senior Management Analyst II, Division of Agent & Agency Services, Florida Department of Financial Services, address: 200 E. Gaines Street, Tallahassee, Florida 32399-0320, telephone: [phone], e-mail: [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69B-151.001 Purpose.

The purpose of this rule chapter is:

(1) To implement the provisions of sections Sections 626.9521, 626.9541, 626.9611 and 626.9641, F.S., and such other laws of this state as may be applicable, with respect to the replacement of life insurance and related matters;

(2) To regulate the activities of insurers and agents with respect to the replacement of existing life insurance;

(3) No change.

Rulemaking Specific Authority 624.308, 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541 FS. History–New 7-9-81, Formerly 4-24.01, 4-24.10, 4-24.010, 4-151.001, Amended__________.

 

69B-151.002 Definition of Replacement.

“Replacement” means any transaction in which new life insurance is to be purchased, and it is known or should be known to the proposing agent or to the proposing insurer that by reason of such transaction existing life insurance has been or is to be:

(1) through (5) No Change.

Rulemaking Specific Authority 624.308, 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541, 626.9641 FS. History–New 7-9-81, Formerly 4-24.02, 4-24.11, 4-24.011, 4-151.002, Amended__________.

 

69B-151.003 Other Definitions.

(1) “Cash Dividend” means the current illustrated dividend which can be applied toward payment of the gross premium.

(2) and (3) are renumbered to (1) and (2)

(4) “Generic Name” means a short title which is descriptive of the premium and benefit patterns of a policy or a rider.

(5) through (7) are renmbered to (3) through (5)

Rulemaking Specific Authority 624.308, 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541, 626.9641 FS. History–New 7-9-81, Amended 2-2-83, Formerly 4-24.12, 4-24.012, 4-150.003, Amended__________.

 

69B-151.004 Scope Exemptions.

Rules 69B-151.001- 69B-151.010, F.A.C., do not apply to the solicitation of Unless otherwise specifically included, paragraph 69O-151.007(3)(b) and subsection 69O-151.008(1), F.A.C., shall not apply to:

(1) through (7) No change.

Rulemaking Specific Authority 624.308, 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541, 626.9641 FS. History–New 7-9-81, Formerly 4-24.03, Amended 2-2-83, Formerly 4-24.13, 4-24.013, 4-151.004, Amended__________.

 

69B-151.006 Duties of Replacing Agent.

Where replacement is or may be involved, the agent shall:

(1) Present to the applicant, not later than at the time of taking the application, a Form OIR-B2-312 “Notice to Applicant Regarding Replacement of Life Insurance” rev. 1-91 in the form as described in Exhibit A. The Notice must be signed by the applicant and the agent and left with the applicant.

(2) No change.

(3) Submit to the replacing insurer with the application, a completed copy of the Form OIR-B2-312 “Notice to Applicant Regarding Replacement of Life Insurance” rev. 1-91 (Exhibit A) and a copy of all Sales Proposals used for presentation to the applicant.

Rulemaking Specific Authority 624.308, 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541, 626.9641 FS. History–New 7-9-81, Formerly 4-24.04, Amended 2-2-83, Formerly 4-24.15, 4-24.015, 4-151.006, Amended __________.

 

69B-151.009 Penalties.

Rulemaking Specific Authority 624.308, 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541, 626.9641 FS. History–New 7-9-81, Formerly 4-24.06, 4-24.19, 4-24.019, 4-151.009, Repealed__________.

 

69B-151.010 Approved Forms.

The Form forms OIR-B2-312 “Notice to Applicant Regarding Replacement of Life Insurance,”, rev. 1-91, and OIR-B2-313 “Comparative Information Form”, rev. 1-91 set forth respectively in Exhibits A is and B are hereby incorporated by reference and adopted herein. Copies of the above-mentioned form forms are available to the public through the Office of Insurance Regulation, Bureau of Life and Health Forms and Market Conduct Review, 335 Larson Building, Tallahassee, Florida or http://www.floir.com.

Rulemaking Specific Authority 624.308, 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541, 626.99 FS. History–New 7-9-81, Amended 11-5-82, 2-2-83, Formerly 4-24.21, Amended 3-11-91, Formerly 4-24.021, 4-151.010, Amended__________.

 

69B-151.012 Severability Separability.

Rulemaking Specific Authority 624.308, 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541, 626.9641 FS. History–New 7-9-81, Formerly 4-24.20, 4-24.020, 4-151.012, Repealed__________.

 

69B-151.105 Notice Furnished by Forms.

Rulemaking Specific Authority 624.308(1), 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541, 626.9641 FS. History–New 2-1-79, Formerly 4-44.05, 4-44.005, 4-151.105, Repealed__________.

 

69B-151.106 Violation.

Rulemaking Specific Authority 624.308(1), 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541, 626.9641 FS. History–New 2-1-79, Formerly 4-44.06, 4-44.006, 4-151.106, Repealed__________.

 

69B-151.107 Effective Date.

Rulemaking Specific Authority 624.308(1), 626.9611, 626.9641 FS. Law Implemented 624.307(1), 626.9521, 626.9541, 626.9641 FS. History–New 2-1-79, Formerly 4-44.07, 4-44.007, 4-151.107, Repealed__________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Cindy Benefield, Senior Management Analyst II, Division of Agent & Agency Services, Florida 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: September 3, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: November 19, 2014