The Department of Financial Services (DFS) administers two insurance claim mediation programs. The first program is for property insurance claims (homeowner and commercial residential) pursuant to Section 627.7015, F.S., and the second is for ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Insurance Agent and Agency Services

RULE NOS.:RULE TITLES:

69B-250.001Purpose and Scope

69B-250.002Qualifications of Mediators

69B-250.003Penalties for Violation of Section 627.745, F.S.

PURPOSE AND EFFECT: The Department of Financial Services (DFS) administers two insurance claim mediation programs. The first program is for property insurance claims (homeowner and commercial residential) pursuant to Section 627.7015, F.S., and the second is for automobile insurance claims pursuant to Section 627.745, F.S. The mediators must be approved by the DFS to conduct such mediations. The requirements for approval as a DFS mediator in paragraph 627.745(3)(b), F.S., were amended in 2014 to allow an individual who possesses an active certification as a Florida Supreme Court certified circuit court mediator to qualify as a DFS mediator. The amendment also grandfathered in current and active DFS mediators if they conducted at least one mediation for the DFS from July 1, 2010, through July 1, 2014. Paragraph 627.7015(4)(b), F.S., was amended to require the DFS to adopt rules for the denial of applications, suspension, revocation, and other penalties for mediators as provided in Section 627.745, F.S., and the Florida Rules for Certified and Court-Appointed Mediators. Subsection 627.745(4), F.S., sets forth the grounds for the denial of an application and for the suspension or revocation of the approval of a mediator.

SUMMARY: The proposed rules establish mediator qualifications, specify grounds for the denial of applications, and specify grounds for the suspension or revocation of mediator approval.

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: 627.7015(4), 627.745, 627.745(4), FS

LAW IMPLEMENTED: 627.7015, 627.745, 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: Tuesday, May 9, 2017, 10:30 a.m.

PLACE: Room 116, Larson Bldg., 200 E. Gaines Street, 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-250.001  Purpose and Scope.

(1) The purpose of this rule chapter is to establish mediator qualifications, specify grounds for the denial of applications, and specify grounds for the suspension or revocation of mediator approval.

(2) This rule chapter shall apply to all applicants for mediator approval and approved mediators participating in the property insurance claim mediation program pursuant to Section 627.7015, F.S., and in the motor vehicle insurance claim mediation program pursuant to Section 627.745, F.S.

Rulemaking Authority 627.7015(4), 627.745 FS.  Law Implemented 627.7015, 627.745 FS. History – New______________.

 

69B-250.002  Qualifications of Mediators.

(1)  An applicant for approval to participate as a mediator in the property insurance claim mediation program pursuant to Section 627.7015, F.S., or the motor vehicle insurance claim mediation program pursuant to Section 627.745, F.S., must submit a completed Mediator Application, Form DFS-H2-591, to the Department of Financial Services, Bureau of Licensing, 200 E. Gaines Street, Tallahassee, FL 32399-0319. The Mediator Application is incorporated by reference in Rule 69B-211.002, F.A.C., and can be obtained at the following website: http://www.myfloridacfo.com/Division/Agents/Licensure/Forms/documents/DFS-H2-591.pdf. 

(2) An applicant for approval as a mediator must meet one of the following requirements:

(a)  Possess an active certification as a Florida Supreme Court certified circuit court mediator; or

(b)  Was approved as a Department mediator as of July 1, 2014, and conducted at least one mediation on behalf of the Department during the period of June 30, 2010, through July 1, 2014. 

(3) The Department shall deny an application if the applicant fails to meet one of the qualifications in subsection (2) above.

(4) A mediator shall incur a 6-month suspension of approval to participate in the property insurance claim and motor vehicle insurance claim mediation programs for failure to maintain his or her certification as a Florida Supreme Court certified circuit court mediator. Mediators qualifying based on their status as a Florida Supreme Court certified circuit court mediator must notify the Department in writing within 5 business days if such certification is placed in a lapsed, suspended, sanctioned, or decertified status. 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]. A Florida Supreme Court certified circuit court mediator in a lapsed, suspended, sanctioned, or decertified status is not eligible to participate in either of the mediation programs until the certification is reinstated by the Florida Supreme Court.

(5) The Department shall maintain a list of all approved mediators, which will include the mediator’s name, address, telephone number, a listing of counties in which each mediator is willing to mediate, and the date the mediator’s name was added to the list.

Rulemaking Authority 627.7015(4) FS. Law Implemented 627.7015, 627.745 FS History – New_________. 

 

69B-250.003  Penalties for Violation of Section 627.745, F.S.

(1) An application for approval as a mediator shall be denied by the Department if any of the grounds set forth in paragraphs 627.745(4)(a) through (e), F.S., exist.             

(2) If an approved mediator has violated any of the following provisions of subsection 627.745(4), F.S., the following penalty shall apply:

(a) Paragraph 627.745(4)(a), F.S. – suspension of approval for 6 months.

(b) Paragraph 627.745(4)(b), F.S. –

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

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

(b) Paragraph 627.745(4)(c), F.S. – suspension of approval for 12 months.

(c) Paragraph 627.745(4)(d), F.S. – revocation of approval.

(d) Paragraph 627.745(4)(e), F.S. – revocation of approval.

Rulemaking Authority 627.745(4), 627.7015(4) FS. Law Implemented 627.7015, 627.745 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, Department of Financial Services

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: March 31, 2017

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 24, 2016