Six new provisions provided by Senate Bill 1662 go into effect in Florida this week and provide the Office of Insurance Regulation and the Department of Financial services with new powers to crack down on fraudulent insurance operations.
Provisions of the bill include:
1) Authorizes OIR and DFS to issue an immediate final order against an unauthorized insurer to cease and desist activity that violates the unauthorized entities section;
2) Provides legislative findings that a violation of prohibitions against unauthorized insurance activity constitutes an imminent threat to the health, safety and welfare of the residents of this state;
3) Authorizes OIR to investigate the accounts, records, documents and transactions pertaining to activities of any unauthorized insurer or person aiding such insurer;
4) Clarifies what is meant by independent procurement of coverage (IPC) to state that IPC is coverage which is not solicited, marketed, negotiated of sold in Florida;
5) Requires that unauthorized insurers must initially obtain a COA or a bond when such insurers seek to defend against an enforcement action filed in Circuit Court by the OIR or DFS; and
6) Places a time limit of 30 days (after service of process) in which authorized insurers or their representatives can file a motion to challenge service of process.
This bill substantially amends Florida Statutes sections 626.901, 626.902 and 626.908.
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