Section 626.207(8), F.S., requires the Department to adopt rules establishing specific penalties against licensees for violations of Section 626.621 F.S. The proposed rule sets forth the penalties for violations of subsections 626.621(13) and (14), ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Insurance Agents and Agency Services

RULE NO.:RULE TITLE:

69B-231.090Penalties for Violation of Section 626.621

PURPOSE AND EFFECT: Section 626.207(8), F.S., requires the Department to adopt rules establishing specific penalties against licensees for violations of Section 626.621 F.S. The proposed rule sets forth the penalties for violations of subsections 626.621(13) and (14), F.S.

SUMMARY: The rule will impose the highest identical penalty, if available, or a substantially similar penalty to the highest penalty imposed for a violation of subsection 626.621(13), F.S. When substantially similar penalties are not available, the rule imposes specified penalties based upon whether the order contains allegations or findings related to monetary loss, fraud, misappropriation, conversion or the unlawful withholding of money. A violation of Section 626.621(14), F.S., will result in the imposition of a 6 month suspension.

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 Department conducted an economic analysis of the potential impact of the proposed changes and determined that there will be no adverse economic impact or regulatory increases that would require legislative ratification.

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, 626.621 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: February 13, 2014, 10:00 a.m.

PLACE: Room 116, Larson Building, 200 E. Gaines Street, Tallahassee, FL

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: Ray Wenger at [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: Ray Wenger, Bureau of Investigations, Division of Insurance Agents and Agency Services, 200 E. Gaines Street, Tallahassee, FL 32399-0320, [phone] or [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69B-231.090 Penalties for Violation of Section 626.621, F.S.

If it is found that the licensee has violated any of the following subsections of Section 626.621, F.S., for which suspension or revocation of license(s) and appointment(s) is discretionary, the following stated penalty shall apply:

(1) through (12) No change.

(13) Section 626.621(13), F.S. –

(a) The highest identical penalty to the penalty imposed by the court, state or federal agency, or national securities, commodities or options exchange or association or, if not available, the highest substantially similar penalty to the penalty imposed.

1. A revocation, removal, lifetime prohibition, lifetime bar or lifetime ban, or the equivalent, or any suspension with a duration greater than 24 months, shall result in revocation; and

2. A suspension with a duration of less than 24 months, shall result in a suspension of equal length.

(b) When substantially similar penalties are not available, the following penalties shall apply:

1. Penalties applicable to fines or restitution:

a. A 6 month suspension if the order does not contain allegations or findings related to monetary loss, fraud, misappropriation, conversion or unlawful withholding of money.

b. A 12 month suspension if the order contains allegations or findings related to monetary loss, fraud, misappropriation, conversion or unlawful withholding of money.

2. Penalties applicable to cease and desist orders or injunctions:

a. A 6 month suspension if the order or injunction does not contain allegations or findings related to monetary loss, fraud, misappropriation, conversion or unlawful withholding of money.

b. A 12 month suspension if the order or injunction contains allegations or findings related to monetary loss, fraud, misappropriation, conversion or unlawful withholding of money.

3. Penalties applicable to censures, probations, license denials, licensing restrictions, and similar situations:

a. A 6 month suspension if the order does not involve allegations or findings related to monetary loss, fraud, misappropriation, conversion or unlawful withholding of money.

b. A 12 month suspension if the order contains allegations or findings related to monetary loss, fraud, misappropriation, conversion or unlawful withholding of money.

4. Penalties applicable to all other situations:

a. A 3 month suspension if the order does not contain allegations or findings related to monetary loss, fraud, misappropriation, conversion or unlawful withholding of money.

b. A 9 month suspension if the order contains allegations or findings related to monetary loss, fraud, misappropriation, conversion or unlawful withholding of money.

(14) Section 626.621(14), F.S. – 6 months suspension.

Rulemaking Authority 624.308, 626.207(8)(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2), 626.621 FS. History–New 7-13-93, Formerly 4-231.090, Amended 8-15-06,__________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Ray Wenger, Division of Insurance Agents and Agency Services

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 4, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: July 31, 2013