Qualification to Obtain and Hold a License, Exemption From Financial Examination, Forms Incorporated by Reference

DEPARTMENT OF FINANCIAL SERVICES
OIR – Insurance Regulation

Rule No.: RULE TITLE
69O-200.004: Qualification to Obtain and Hold a License
69O-200.014: Exemption From Financial Examination
69O-200.015: Forms Incorporated by Reference

NOTICE OF CHANGE

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 36 No. 27, July 9, 2010 issue of the Florida Administrative Weekly.

Rule 69O-200.004 has been revised to read as follows:

(1) An applicant must submit legible fingerprint cards, investigative background checks and biographical statements on Form OIR-CI-1423422, incorporated by reference in Rule 69O-200.015, F.A.C., for the following:

(a) Officers, directors, and stockholders holding 10% or more of the outstanding voting stock of the applicant and of any company or entity which has control over the applicant;

(b) Officers and dDirectors of the applicant and of any company or entity having which has control over the applicant; and,

(c) Partners, members, sStockholders and other individuals holding a voting interest of 10% or more in any greater shares of outstanding stock of the applicant and any company or entity having direct or indirect which has control over the applicant.

(2) An applicant that is a motor vehicle manufacturer, as defined in Section 634.011(7), Florida Statutes, must submit legible fingerprint cards, investigative background checks and biographical statements on Form OIR-C1-1423 for all officers and directors of the applicant only.

(3)(2) Subsequent to the date of licensure, individuals who become associated with the motor vehicle service agreement company in any of the above capacities shall submit the information required in subsection (1) above; however, those individuals who become associated with an agreement company which:

(a) Manufacturers motor vehicles;

(b) Demonstrates it has they have a gap net worth in excess of $100,000,000, as reported under generally accepted accounting principles (GAAP);

(c) Annually files with the Office a 10K Report; and,

(d) Annually notifies the Office in writing of any changes in officers (Executive Vice Presidents and above) and directors of the agreement company, shall be exempt from the requirements of subsection (1).

(4) Individuals named as officers or directors of a motor vehicle manufacturer licensee must within 45 days submit legible fingerprint cards, investigative background checks and biographical statements on Form OIR-C1-1423 for those officers and directors directly overseeing the Florida service contract operations, unless the licensee is exempt under subsection (3) above or subsection (7) below.

(5) In addition to background requirements for newly associated individuals, as noted in subsections (1) through (4) above, an acquisition filing pursuant to Section 628.4615, Florida Statutes, will require updates of previously filed background documentation for material changes.

(6)(3) Motor vehicle service agreement companies are required to notify the department in writing within 15 days of any change in the corporate name, business name, address or phone number of the company.

(7)(4) The Office will may, at its discretion, waive any of the above provisions if the applicant or licensee can satisfy the Office that the documents are not required in determining if the individual(s) in question can manage the company and its affairs and is competent and trustworthy. The following criteria will be considered by the Office in making this determination:

(a) The financial condition of the applicant or licensee;

(b) The financial condition of the companies having control over the applicant or licensee;

(c) The history and structure of the companies;

(d) The A.M. Best rating of all insurance companies involved; and,

(e) The position held by the individual(s) in question.

(8) Subsequent to the date of licensure, a motor vehicle service agreement company may submit in writing a request to the Office that, for future reporting and compliance requirements, it be recognized as a motor vehicle manufacturer as defined in Section 634.011(7), Chapter 634, F.S. Such request must be certified by an officer of the licensee and must include documentation that clearly sets forth how the licensee meets the definition in Section 634.011(7), F.S.

Rulemaking Specific Authority 634.021 FS. Law Implemented 634.041 FS. History–New 5-26-93, Formerly 4-200.004, Amended_________.

 

Rule 69O-200.014 has been revised to read as follows:

(1) The Office may, upon receipt of a written request, grant an exemption from the financial examination required by Section 634.141, Florida Statutes.

(2) A company applying for exemption must first submit documentation that demonstrates that the company:

(a) Has a statutory net worth in excess of $500 million;

(b) Has been licensed as a motor vehicle service agreement company for more than 6 years;

(c) Is publicly traded on the New York Stock Exchange;

(d) Files an annual report on the Office’s form on or before March 1 of each year; and

(e) Files with the Office its current Form 10K and 10Q, within 30 days of filing with the Securities and Exchange Commission;

(f) Annually by On or before March 1, 1993 and in three year intervals thereafter, files a written request for the exemption. This request for exemption shall be accompanied by an exemption fee of $2000 to be deposited into the Chief Financial Officer’s Regulatory Trust Fund.

(3) Motor vehicle manufacturers, as defined in Section 634.011(7), Florida Statutes, must only comply with paragraph (2)(f) above to apply for exemption from examination.

Rulemaking Specific Authority 634.021 FS. Law Implemented 634.141 634.1216 FS. History–New 5-26-93, Formerly 4-200.014, Amended_________.

 

Rule 69O-200.015 has been revised to read as follows:

(1) The following forms are incorporated into this rule chapter by reference to implement the provisions of Chapter 634, Part I, Florida Statutes:

Title	Form Number
(a) Application Cover Letter	OIR-CI-982 (02/92)
(b) Application Instructions	OIR-CI-994 (02/92)
(c) Application Checklist	OIR-CI-993 (02/92)
(d) Invoice	OIR-CI-990 (02/92)
(d)(e) Fingerprint Fee Invoice	OIR-CI-903 (09/91)
(e)(f) Application for License as a Motor Vehicle Service Agreement Company	OIR-CI-469 (02/92)
(f)(g) Consent to Service of Process	OIR-CI-144 (11/90)
(g)(h) Resolution Form	OIR-CI-514 (11/90)
(h)(i) Statement of Acquisition	OIR-CI-448 (05/89)
(i)(j) Sample Contractual Liability Policy	OIR-CI-969 (08/92)
(j)(k) Instructions for Deposit	OIR-CI-992 (05/94)
(k)(l) List of Salesman	OIR-CI-995 (02/92)
(l)(m) Management Information	OIR-CI-844 (10/91)
(m)(n) Stockholder Listing	OIR-CI-973 (10/91)
(n)(o) Biographical Statement	OIR-CI-1423422 (09/08) (11/90)
(p) Abbreviated Biographical	OIR-CI-449 (01/91)
(o)(q) Release of Information	OIR-CI-450 (08/92)
(p)(r) Equifax Instructions	OIR-CI-934 (10/91)
(q)(s) Fingerprint Instructions	OIR-CI-938 (04/91)
(r)(t) Annual Statement	OIR-A3-467 (01/92)
(s)(u) Quarterly Report	OIR-A3-466 (02/87)
(t) Application for License Motor Vehicle Service Agreement Company Manufacturer.	OIR-A3-1983 (02/09)
(u) Annual Report for Motor Vehicle Manufacturers. (v) Application for Exemption from Field Examination. (w) Application for License Continuance Motor Vehicle Service Agreement Company.	OIR-A3-1984 (01/10)   OIR-A3-1985 (01/10)   OIR-A3-2019 (01/10)

(2) These forms are effective on the dates referenced above. Copies of the forms may be obtained from the Office of Insurance Regulation, Bureau of Specialty Insurers, Larson Building, Tallahassee, FL 32399-0300.

Rulemaking Specific Authority 634.021 FS. Law Implemented 634.041, 634.061, 634.071, 624.501, 634.161, 634.252 FS. History– New 6-25-90, Formerly 4-114.015, Amended 5-26-93, 6-6-94, Formerly 4-200.015, Amended_________.

 

Form OIR-CI-1423 “Biographical Affidavit” has been revised to include the rule number associated with the form. The revised form is available from the contact person, Steve Szypula at [e-mail].

Form OIR-A3-1983 “Application For License Motor Vehicle Service Agreement Company – Manufacturer” has been revised to include Sections 634.071 and 624.501, Florida Statutes, in the list of laws implemented. Section III of the form will now refer to the following form: “List of Proposed Sales Representatives”. This form, pertaining to sales representatives, will be included as part of OIR-A3-1983. The revised form is available from the contact person, Steve Szypula at [e-mail].

Form OIR-A3-1984 “Report for Motor Vehicle Manufacturers” will be revised to be titled as “Annual Report for Motor Vehicle Manufacturers”. Form OIR-A3-1984 will no longer refer to invoice form OIR-CI-1990 (2/92). An invoice titled “Annual Report For Motor Vehicle Manufacturers Request For Payment Of Application Fees” will be included in Form OIR-A3-1984. Form OIR-A3-1984 will also include the following exhibits/forms: Exhibit III “Reported Claims Incurred”, Exhibit VI “Claims Exposure – Florida”, “List of Officers/Directors and Key Personnel”, “List of Companies, Application for License Continuance Motor Vehicle Service Agreement Company” and” Application for Exemption From Field Examination Motor Vehicle Service Agreement Company or Manufacturer”. The revised form is available from the contact person, Steve Szypula at [e-mail].

The “Motor Vehicle Manufacturer Interrogatories” form will be revised to remove line number 10. The interrogatory description of line 3 has been revised to read as follows “Have any legal actions been taken against the Licensee during the period covered by this report? If “YES”, provide all documentation related to the legal actions taken against the Licensee related to the business of service contracts”. The revised form is available from the contact person, Steve Szypula at [e-mail].

The remainder of the rule reads as previously published.