Section 648.43, F.S., requires every insurer engaged in the writing of bail bonds through bail bond agents in the State of Florida to submit and have approved by the Department a sample power of attorney, which will be the only form of power of ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Insurance Agents and Agency Services

RULE NO.:RULE TITLE:

69B-221.075Power of Attorney; Penal Sum of Bond; Not Applicable to Automobile Clubs

PURPOSE AND EFFECT: Section 648.43, F.S., requires every insurer engaged in the writing of bail bonds through bail bond agents in the State of Florida to submit and have approved by the Department a sample power of attorney, which will be the only form of power of attorney the insurer will issue to bail bond agents in this State.

SUMMARY: The proposed rule sets forth the information a sample power of attorney must contain in order to be approved by the Department. The proposed amendment will allow insurance companies to continue using their existing forms as long as the items required for approval are included on the form.

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: 624.308(1), 648.26 FS.

LAW IMPLEMENTED: 648.43, 903.09 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: September 24, 2013, 9:30 a.m..

PLACE: Room 142, 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 five 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-221.075 Power of Attorney; Penal Sum of Bond; Not Applicable to Automobile Clubs.

(1) Section 903.09, F.S., is interpreted to mean that every licensed limited surety agent must attach to each bond a duly executed power of attorney in an amount of at least the penal sum of the bond. This section shall not apply to any card or certificate of membership of an automobile club or association qualified under Section 627.758, F.S., relating to Guaranteed Arrest Bond Certificates, Bail Bond Certificates, or Powers of Attorney for Bail Bonds sold by licensed surety companies to recognized automobile clubs or associations.

(2) The Department shall approve the power of attorney form of an insurer that includes the following:

(a) The full name and phone number of the surety company issuing the power.

(b) A number that will be unique to each power issued.

(c) The maximum amount the power may be written.

(d) The date the power will become void.

(e) Sections that allow for the following information to be entered on each power:

1. Amount of the bail bond.

2. Name of the defendant.

3. Name of the court.

4. Case number.

5. Executing bail bond agent’s name.

(f) The number of pages or copies to be a part of the form and the identity of each party to receive a part of the form. Examples include: defendant, court, clerk, insurer, bail bond agent.

(g) The limitations of the power. An example of a limitation of the power would be:

This power of attorney is for use with bail bonds for State, County, and Municipal Courts only (not valid in Federal Court) and not to exceed the above stated amount. This power must be filed with the court as a permanent court record to obligate the surety, for court appearances only, of the named Defendant. This power shall not obligate the surety for the Defendant’s future lawful conduct, court imposed conditions, restrictions, or fines, costs, restitution or any other circumstances not specifically related to court appearances.This power is void if its original format has been altered, if it exceeds the maximum amount listed, is used with other (surety name) powers to cover one bond amount, or is used by an individual who is not authorized to execute surety bonds on behalf of (surety name).

(h) A company statement appointing the licensed bail bond agent as attorney-in-fact for the insurer. An example of an acceptable appointing statement would be:

Know all men by these presents that (surety company), a corporation duly organized and existing under the laws of the State of XXXX, does constitute and appoint the below named executing agent as its true and lawful Attorney-in-Fact in its name, place and stead to execute, seal and deliver for and on its behalf, a surety bail bond for the named Defendant.

(i) A signature statement from an official of the insurer. An example of an acceptable signature statement would be:

In witness whereof, (surety company) has caused this instrument to be signed and sealed by its duly authorized officer.

(j) Corporate seal of the insurer.

(3) The Department shall advise the insurer of approval of the power of attorney via email.

Rulemaking Specific Authority 624.308(1), 648.26 FS. Law Implemented 648.43, 903.09 FS. History–Repromulgated 12-24-74, Formerly 4-1.08, Amended 9-10-91, Formerly 4-1.008, Formerly 4-221.075, Amended__________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Ray Wenger, Bureau of Investigations

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: August 26, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: May 6, 2013