Pursuant to subsection 627.7074(1), F.S., the Department certifies the neutral evaluators used in neutral evaluations for sinkhole insurance claims. Subsection 627.7074(18), F.S., was amended to require the Department to adopt rules for obtaining ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Insurance Agent and Agency Services

RULE NO.: RULE TITLE:

69B-251.001 Purpose

69B-251.002 Definitions

69B-251.003 Qualifications for Certification as a Neutral Evaluator

69B-251.020 Penalties for Violations of Section 627.7074

PURPOSE AND EFFECT: Pursuant to subsection 627.7074(1), F.S., the Department certifies the neutral evaluators used in neutral evaluations for sinkhole insurance claims. Subsection 627.7074(18), F.S., was amended to require the Department to adopt rules for obtaining certification, and denying certification of, suspending certification of, and revoking certification of a neutral evaluator. Paragraph 627.706(7)(b), F.S., sets forth the grounds for the denial of an application and for the suspension or revocation of the certification of a neutral evaluator.

SUMMARY: The proposed rules establish the qualifications for obtaining certification as a neutral evaluator, the grounds for denial of applications, and the grounds for the suspension or revocation of the certification of a neutral evaluator.

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 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: 627.7074(18), FS.

LAW IMPLEMENTED: 626.706(2), 627.7074, 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: July 10, 2017, 10:00 a.m.

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

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: Matt Tamplin, Bureau Chief, telephone: [phone], email: [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: Matt Tamplin, Bureau Chief, address: 200 E. Gaines St., Tallahassee, FL 32303, telephone: [phone], email: [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

 

69B-251.001 Purpose.

The purpose of this rule chapter is to establish the qualifications for obtaining certification as a neutral evaluator, specify grounds for the denial of applications, and specify grounds for the suspension or revocation of the certification of a neutral evaluator.

Rulemaking Authority 627.7074(18) FS. Law Implemented 626.706(2), 627.7074 FS. History – New __________. 

 

69B-251.002 Definitions.

When used in this rule chapter, the following terms are defined as follows:

(1) “Applicant” means an individual who submits an application for certification as a neutral evaluator.

(2) “Certification” means the Department approval of an individual who meets the requirements for a neutral evaluator under subsections 627.706(2) and 627.7074(7), F.S.

Rulemaking Authority 627.7074(18) FS. Law Implemented 627.706(2), 627.7074 FS. History – New __________. 

 

69B-251.003  Qualifications for Certification as a Neutral Evaluator.

(1) An applicant seeking certification as a neutral evaluator shall apply to the Department using the Neutral Evaluator Application, Form Number DFS-H2-1783 (Revised 03/2017), which is hereby incorporated by reference. The form can be obtained from the Department on the following website: http://www.myfloridacfo.com/Division/Agents/Licensure/Forms/docs/DFS-H2-1783.pdf.  The completed form shall be mailed to the Department of Financial Services, Bureau of Licensing, 200 East Gaines Street, Tallahassee, FL 32399-0319. 

(2) An application for certification as a neutral evaluator shall be granted if the applicant meets the following eligibility requirements of subsection 627.706(2), F.S.:

(a)1. Is an engineer licensed under Chapter 471, F.S., who has experience and expertise in the identification of sinkhole activity as well as other potential causes of structural damage; or

2. Is a professional geologist licensed under Chapter 492, F.S., who has experience and expertise in the identification of sinkhole activity as well as other potential geologic causes of structural damage;

(b) Has completed a course of study in alternative dispute resolution approved by the Department for use in the neutral evaluation process pursuant to Rule 69B-227.170, F.A.C.;

(c) Is determined to be fair and impartial based on the criteria in subsection (3) below; and

(d) Is not ineligible for certification as a neutral evaluator pursuant to paragraph 627.7074(7)(b), F.S.

(3) An applicant shall be deemed to be fair and impartial unless:

(a) The applicant is currently an employee of an insurer as defined in section 624.03, F.S., adjuster as defined in section 626.015, F.S., or adjusting firm as defined in section 626.8695, F.S.;

(b) The applicant has through word, action, appearance, or otherwise expressed a bias or favoritism for or against insurers or property insurance policyholders; or

(c) The applicant acts or has acted in such a way that would compromise the fairness and impartiality of the neutral evaluation program or the program’s efficient effective operation.

(4) A neutral evaluator must notify the Department in writing within 5 days of failing to meet the standards in subsection (2). Such notice shall be mailed to the Bureau of Licensing at the address in subsection (1) or electronically submitted to the Department at [e-mail].

Rulemaking Authority 627.7074(18) FS. Law Implemented 627.706(2), 627.7074 FS. History – New __________.

 

69B-251.020  Penalties for Violations of Section 627.7074, F.S.

(1) An application for certification as a neutral evaluator shall be denied by the Department if any of the grounds set forth in subparagraphs 627.7074(7)(b)1. through 5., F.S., exist.

(2) If a certified neutral evaluator has violated the following provisions of section 627.7074, F.S., the following stated penalty shall apply:

(a) Failure to voluntarily withdraw from an evaluation due to the existence of any of the grounds set forth in paragraph 627.7074(7)(a), F.S. - revocation.

(b) Subparagraph 627.7074(7)(b)1., F.S.:

1. Suspension of 12 months if, had the application been accurate, the application would have been granted, based on the statutes and Department rules applicable to the application at the time the Department issued the certification and the documentation in the applicant’s file at the time the Department issued the certification; or

2. Revocation if, had the application been accurate, the application would have been denied, based on the statutes and Department rules applicable to the application at the time the Department issued the certification.

(c) Subparagraph 627.7074(7)(b)2., F.S. – revocation.

(d) Subparagraph 627.7074(7)(b)3., F.S. – suspension of 12 months.

(e) Subparagraph 627.7074(7)(b)4., F.S. – revocation.

(f) Subparagraph 627.7074(7)(b)5., F.S. – revocation.

(g) Failure to adhere to the requirements of paragraph 627.7074(7)(d), F.S. – suspension of 6 months.

(h) Failure to submit the report as required in subsection 627.7074(12), F.S. – suspension of 6 months.

Rulemaking Authority 627.7074(18), FS. Law Implemented 627.706(2), 627.7074 FS. History – New __________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Matt Tamplin

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 6, 2017

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: August 26, 2016