Rule 69O-207.001, F.A.C., is amended to update citations to updated statutes. These changes also allow for the Office to assess greater fines for violations of failing to file an annual report.

 

DEPARTMENT OF FINANCIAL SERVICES

OIR – Insurance Regulation

RULE NO.:RULE TITLE:

69O-207.001Late Filed Reports - Fine Schedule

PURPOSE AND EFFECT: Rule 69O-207.001, F.A.C., is amended to update citations to updated statutes. These changes also allow for the Office to assess greater fines for violations of failing to file an annual report.

SUMMARY: Rule 69O-207.001 lists the schedule under which the Office assess per-day and maximum fines for violations of failure to file an annual report. This amendment removes outdated citations to repealed law, corrects citations where the statutes have been amended, and adds alternative maximums for willful and nonwillful violations.

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), 624.4331, 626.8991, 634.021, 634.137, 634.302, 634.402, 641.36, 641.403, 651.015(3), F.S.

LAW IMPLEMENTED: 624.307(1), 624.424, 624.442(5), 626.681(1)-(2), 626.894(2)-(3), 627.833, 634.137(3), 634.313(3), 634.415(3), 641.26(4), 641.41(2), 642.0338(2), 651.012(2)(c), 651.026(1), F.S.

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: Christopher Wildermuth, Assistant General Counsel, [e-mail], [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69O-207.001 Late Filed Reports - Fine Schedule.

(1) The following schedule of fines is hereby adopted by the Commission as a guideline in assessing fines against the referenced entities for the late filing of annual reports or statements as required by law:

Entity	Per Day Fine A	B	Maximum Fine
(a) Continuing Care (Sections 651.026(1) and 651.015(2)(c), 651.026(1) F.S.)	$5025 per day	$50 per day	None
(b) Health Maintenance Organizations (Section 641.26(43), F.S.)	$1,000 first 10 days $2,000 after 10 days 100 per day	$200 per day	$100,000
(c) Prepaid Health Clinics (Section 641.41(2), F.S.) (Section 637.118(2), F.S.)	$25 per day	$50 per day	None
(d) Multiple Employer Welfare Arrangements (Section 624.442(5)624.4211(2), F.S.)	$1,000 first 10 days $2,000 after 10 days 100.00 per day	$200 per day	$100,0002,500
(e) Motor Vehicle Service Agreements (Sections 634.137(3), 634.131(3), F.S.)	$100 per day	$100 per day	None
(f) Home Warranty (Section 634.313(3), F.S.)	$10025 per day	$50 per day	None
(g) Premium Finance (Section 627.833,626.681, F.S.) (Rule 69O-196.007(2), F.A.C.)	$12.50 per day	$25 per day	$10,000500
(h) Prepaid Legal (Section 642.0338(2), F.S.) (Rule 69O-201.012(2), F.A.C.)	$1,000, nonwillful $5,000, willful 12.50 per day	$25 per day	$5,000, nonwillful 25,000, willful 1,000
(i) Service Warranty (Section 634.415(3), F.S.)	$10050 per day	$100 per day	None
(j) Insurance Administrators (Section 626.894(2), (3), F.S.)	$1,000, nonwillful $5,000, willful 12.50 per day	$25 per day	$5,000, nonwillful $25,000, willful 1,000

“A” is applicable if the entity filed late last year and filed late this year, but within 5 days after notice or if timely filed last year and late by more than five days after notice in current year. “B” is applicable if the entity filed late last year and filed late in current year more than 5 days after notice.

(2) In assessing tThe fines provided in subsection (1), above, the Office will consider may be increased or decreased based on the following mitigating and aggravating factors:

(a) Mitigating:

1. The entity has given advance notice to the Office that it will be filing late.

2. Justifiable unforeseen cause not within control of entity.

3. The entity has timely submitted major portions of the report.

4. Other mitigating factors as the Office may determine on the facts of the particular situation.

(b) Aggravating:

1. The entity has not given prior notice to the Office that it will be filing late.

2. Adverse financial condition indicated when report is filed.

3. Past violations by the entity.

4. Willfully or intentionally failing to file the report.

5. Other aggravating factors as the Office may determine on the facts of the particular situation.

(3) The fines referenced in subsection (1), above, are in addition to any other penalties that may be allowed by law, including the summary suspension of authority to transact business until the report is filed.

(4) For purposes of this rule an annual report or statement, required by law, is deemed received by the Office on the date it is submitted electronically at http://www.floir.com/iportal.

Rulemaking Authority 624.308(1), 624.4331, 626.8991, 634.021, 634.137, 634.302, 634.402, 634.137, 641.36, 641.403, 651.015(3), FS. Law Implemented 624.307(1), 624.424, 624.442(5), 626.681(1)-(2), 626.894(2)-(3), 627.833, 634.137(3), 634.313(3), 634.415(3), 637.118(2), 637.278(2), 637.423, 641.26(4), 641.41(2), 642.0338(2), 651.012(2)(c), 651.026(1), FS. History–New 1-28-91, Formerly 4-120.001, 4-207.001, Amended 7-30-17, Amended_______.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Christopher Wildermuth, Assistant General Counsel

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 12, 2024

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: May 15, 2024