The rule is being updated to remove and correct out of date information.

 

DEPARTMENT OF FINANCIAL SERVICES

OIR – Insurance Regulation

RULE NO.:RULE TITLE:

69O-230.033Reporting Requirements for Licensees Concerning Unlicensed Insurance Activity by Multiple Employer Welfare Arrangements, Labor Leasing Organizations, and Purportedly Collectively Bargained Plans

PURPOSE AND EFFECT: The rule is being updated to remove and correct out of date information.

SUMMARY: References to repealed statutes are removed from the rule. The address and name of the unit to report unlicensed activity is updated. Definitions in the rule are amended.

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: Agency personnel familiar with the subject matter of the rule amendment have performed an economic analysis of the rule amendment that shows that the rule amendment is unlikely to have an adverse impact on the State economy in excess of the criteria established in Section 120.541(2)(a), Florida Statutes.

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), 624.33(2), 624.401(1), 624.4431, 629.989(6) FS.

LAW IMPLEMENTED: 624.09, 624.44, 624.307, 624.317, 624.437, 624.442, 624.446, 626.901, 626.910, 626.9571, 626.9581, 626.9591, 626.9601 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Michael Lawrence, Jr., Assistant General Counsel, Office of Insurance Regulation, [e-mail], [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69O-230.033 Reporting Requirements for Licensees Concerning Unlicensed Insurance Activity by Multiple Employer Welfare Arrangements, Labor Leasing Organizations, and Purportedly Collectively Bargained Plans.

(1) No change.

(2) Definitions. For purposes of this rule, the following definitions shall apply.

(a) “Agent” means and includes any person holding any type and class of licensure, whether limited or unlimited, issued by the Department Office under chapter 626, Florida Statutes. The term also includes any person licensed or registered by the Office as an agent, sales representative, sales agent, salesperson, runner, or bail bondsman, under any of the following statutes: section 632.634, F.S., (fraternal benefit agents); section 634.031, F.S., (warranty association sales person); section 635.051, F.S., (mortgage guaranty insurance agent); section 637.141, F.S., (optometric service plan sales representative); section 637.301, F.S., (pharmaceutical service plan sales representative); section 638.181, F.S., (ambulance service association or insurer sales representative); section 639.185, F.S., (pre-need funeral merchandise or services contract sales agent); section 641.386, F.S., (health maintenance organization sales agent); section 642.036, F.S., (legal expense insurance sales representative); or section 648.30, F.S., (bail bondsman or bail runner). The term includes such persons whether residents of Florida or not.

(b) through (i) No change.

(j) “Reportable multiple-employer welfare arrangement (MEWA),” for purposes of this rule, means a person that provides or offers insurance benefits or coverage to the employees of two or more employers, whether alone or with other benefits. “Reportable MEWA” does not include:

1. through 4. No change.

(k) “Third party administrator” or “TPA” means “administrator” under section 626.88, F.S., and includes, but is not limited to, all persons licensed by the Office department as administrators.

(l) No change.

(m) “Department” means the Florida Department of Financial Services.

(3) Information Required to Be Reported.

(a) Any agent, third party administrator or insurer with knowledge of an unlicensed insurer doing business in the State of Florida, shall report the activities of the unlicensed insurer to the Office and, if known, shall provide the following information:

1. through 2. No change.

3. The names, addresses, and phone numbers of any officers or agents of the reportable MEWA, employee leasing arrangement, welfare benefit plan, employee organization, collectively bargained arrangement, or other unlicensed insurer; and

4. The names, addresses, and phone numbers of any employers, employees, or individuals who may be enrolled by, or who will be receiving services from the reportable MEWA, employee leasing arrangement, welfare benefit plan, employee organization, collectively bargained arrangement, or other unlicensed insurer. ;

(b)(4) The report shall be made with the Office at the following address: Attn: Unlicensed Entity Coordinator, Florida Office of Insurance Regulation, Market Regulation Division of Insurance Fraud. The report can be made by phone, [phone] 4000, or by mail to 200 East Gaines Street, Larson Building, 2020 Capital Circle, S. E., Alexander Building, Tallahassee, FL 32399 32301.

Rulemaking Authority 624.308(1), 624.33(2), 624.401(1), 624.4431, 629.989(6) FS. Law Implemented 624.09, 624.44, 624.307, 624.317, 624.437, 624.442, 624.446, 626.901, 626.910, 626.9571, 626.9581, 626.9591, 626.9601 FS. History–New 6-15-92, Amended 9-7-93, 7-23-01 Formerly 4-230.033, Amended ____________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Michael Lawrence, Jr., Assistant General Counsel

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 3, 2019

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 8, 2019