Section 626.9895, F.S., authorized the Division of Insurance Fraud to establish a direct-support organization to support the prosecution, investigation, and prevention of motor vehicle insurance fraud, to be known as the “Automobile Insurance Fraud ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Insurance Fraud

RULE NOS.:RULE TITLES:

69D-3.001Definitions

69D-3.002Governance of Organization

69D-3.003Use of Division Property or Facilities

PURPOSE AND EFFECT: Section 626.9895, F.S., authorized the Division of Insurance Fraud to establish a direct-support organization to support the prosecution, investigation, and prevention of motor vehicle insurance fraud, to be known as the “Automobile Insurance Fraud Strike Force” (Strike Force). Section 626.9895(5)(c), F.S., requires the Department to adopt rules prescribing the procedures by which the Strike Force is governed and any conditions with which the Strike Force must comply to use the Division’s property.

SUMMARY: Rule 69D-3.001, F.A.C., defines the terms “Board of Directors,” “Division,” “Motor vehicle insurance fraud,” and “Organization.” Rule 69D-3.002, F.A.C., sets forth procedural rules for the operation of the Strike Force. Rule 69D-3.003 sets forth the conditions which the Strike Force must comply with to use the Division’s property or facilities.

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 changes 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: 626.9895(5)(c) FS.

LAW IMPLEMENTED: 626.9895 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: October 21, 2013, 9:30 a.m.

PLACE: Room 230A, Alexander Building, 2020 Capital Circle S.E., 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: Jack Kelley 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: Jack Kelley, Assistant Director, Division of Insurance Fraud, 200 E. Gaines Street, Tallahassee, FL 32399-0318, [phone] or [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69D-3.001 Definitions. As used in this rule chapter, the term:

(1) “Board of Directors” means the Organization’s governing board as described in Section 626.9895(4), F.S.

(2) “Division” means the Division of Insurance Fraud of the Department of Financial Services.

(3) “Motor vehicle insurance fraud” means any act defined as a “fraudulent insurance act” under Section 626.989, F.S., which relates to the coverage of motor vehicle insurance as described in part XI of Chapter 627, F.S.

(4) “Organization” means the direct-support organization established under Section 626.9895, F.S., the Automobile Insurance Fraud Strike Force.

Rulemaking Authority 626.9895(5)(c) FS. Law Implemented 626.9895 FS. History–New__________.

 

69D-3.002 Governance of Organization.

(1) By May 30th of each year, the Organization shall apply to the Division for certification that it is in compliance with the requirements of Section 626.9895(2), F.S., and with the written contract entered into with the Division pursuant to Section 626.9895(3), F.S. The award of the annual certification shall be recorded in the minutes of the meeting of the Organization.

(2) Membership, appointment, and terms of the Board of Directors shall be as provided under Section 626.9895(4), F.S.

(3) The Board of Directors shall approve the Articles of Incorporation, the Bylaws, and any amendments to such Articles or Bylaws. The Articles of Incorporation and Bylaws shall provide that the Organization is organized and operated exclusively in support of the Division and its efforts to reduce motor vehicle insurance fraud.

(4) The Chief Financial Officer, or designee, shall serve as the chair of the Board of Directors.

(5) The Organization shall be subject to an annual financial audit in accordance with Section 215.981, F.S.

(6) The Board of Directors of the Organization shall approve and submit an annual budget for approval by the Division by May 30 of each year. Amendments to the budget must be approved by the Division.

(7) If the Organization fails to obtain the annual certification from the Division or is dissolved, reversion of all moneys and property held in trust by the Organization shall be in accordance with Section 626.9895(3), F.S.

Rulemaking Authority 626.9895(5)(c) FS. Law Implemented 626.9895 FS. History–New__________.

 

69D-3.003 Use of Division Property or Facilities.

(1) The Organization shall obtain written approval from the the Division prior to the use of fixed property or facilities of the Division.

(2) The Organization may enter into a lease with the Division for the use of Division facilities. Such lease shall:

(a) Specify the property to be used, the purpose for which the property will be used, and the term of the lease.

(b) Specify the compensation or other consideration, if any, the Organization will pay to the Division for the use of such facilities.

(c) Provide for the terms of liability.

Rulemaking Authority 626.9895(5)(c) FS. Law Implemented 626.9895 FS. History–New__________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Jack Kelley, Assistant Director

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 23, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: July 31, 2013