The proposed amendment will update the rule to remove a standard made illegal by a court decision.

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Insurance Agents and Agency Services

RULE NO.:RULE TITLE:

69B-235.003Sale of Certificates of Deposit

PURPOSE AND EFFECT: The proposed amendment will update the rule to remove a standard made illegal by a court decision.

SUMMARY: Chapter 69B-235, F.A.C., addresses the Sale of Non-Insurance Products by Insurance Representatives. The proposed modification is to delete the illegal standard to determine discretionary refusal, suspension, or revocation of agent’s license in conjunction with the sale of Certificates of Deposit if an agent has been a source of loss to the public, pursuant to subsection 626.621(6), F.S. The words “detrimental to public interest” as used in Section 626.621, F.S., were found to be unconstitutionally vague in Whitaker v. Department of Insurance and Treasurer, 680 So.2d 528 (Fla. 1st DCA 1996).

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 rule amendment 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(1) FS.

LAW IMPLEMENTED: 517.12, 624.307(1), 626.611, 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: January 15, 2015, 10:00 a.m.

PLACE: Room 139, 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 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: Barry Lanier, Chief, Bureau of Investigations, Room 416, Larson Building, 200 E. Gaines Street, Tallahassee, FL 32399-0320 [phone] or [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69B-235.003 Sale of Certificates of Deposit.

(1) No change.

(2) In determining whether an agent has been a source of injury or loss to the public or detrimental to public interest within the meaning of subsection Section 626.621(6), Florida Statutes, the Office will consider the facts applicable to each transaction.

(a) Conduct determined by the Office of Financial Regulation to violate Sections 517.301 and 517.311, Florida Statutes, constitutes conduct that is a source of injury or loss to the public or detrimental to public interest within the meaning of subsection Section 626.621(6), Florida Statutes.

(b) No change.

Rulemaking Specific Authority 624.308(1) FS. Law Implemented 517.12, 624.307(1), 626.611, 626.621 FS. History–New 1-16-03, Formerly 4-235.003, Amended_________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Barry Lanier, Chief, Bureau of Investigations, Division of Agent and Agency Services, Department of Financial Services

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 15, 2014

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: November 6, 2014