629.094 Continued eligibility for certificate of authority.
629.101 Power of attorney.
629.111 Modifications.
629.121 Attorney’s bond.
629.131 Deposit in lieu of bond.
629.141 Action on bond.
629.161 Contributions to insurer.
629.171 Annual statement.
629.181 Financial condition; method of determining.
629.191 Who may be subscribers.
629.201 Subscribers’ advisory committee.
629.211 Subscribers’ liability.
629.221 Subscribers’ liability; on judgment.
629.225 Acquisitions.
629.227 Background information.
629.229 Attorneys in fact, officers, and directors of insolvent reciprocal insurers or other insurers.
629.231 Assessments.
629.241 Time limit for assessments.
629.251 Aggregate liability.
629.261 Nonassessable policies.
629.271 Distribution of savings.
629.281 Subscribers’ share in assets.
629.291 Merger or conversion.
629.301 Impaired reciprocal insurers.
629.401 Insurance exchange.
629.5011 Tax on premiums.
629.520 Authority of a limited reciprocal insurer.
629.525 Rulemaking authority.
629.011 Definitions.—As used in this part, the term:
(1) “Affiliated person” of another person means any of the following:
(a) The spouse of the other person.
(b)1. The parents of the other person or their lineal descendants.
2. The parents of the other person’s spouse or their lineal descendants.
(c) A person who directly or indirectly owns or controls, or holds with the power to vote, 10 percent or more of the outstanding voting securities of the other person.
(d) A person who directly or indirectly owns 10 percent or more of the outstanding voting securities that are directly or indirectly owned or controlled, or held with the power to vote, by the other person.
(e) A person or group of persons who directly or indirectly control, are controlled by, or are under common control with the other person.
(f) A director, officer, trustee, partner, owner, manager, joint venturer, or employee, or another person who is performing duties similar to those of persons in such positions, of the other person.
(g) If the other person is an investment company, any investment adviser of such company or any member of an advisory board of such company.
(h) If the other person is an unincorporated investment company not having a board of directors, the depositor of such company.
(i) A person who has entered into an agreement, written or unwritten, to act in concert with the other person in acquiring, or limiting the disposition of:
1. Securities of an attorney in fact or controlling company that is a stock corporation; or
2. An ownership interest of an attorney in fact or controlling company that is not a stock corporation.
(2) “Attorney in fact” or “attorney” means the attorney in fact of a reciprocal insurer. The attorney in fact may be an individual, a corporation, or another person.
(3) “Controlling company” means a person, corporation, trust, limited liability company, association, or other entity owning, directly or indirectly, 10 percent or more of the voting securities of one or more attorneys in fact that are stock corporations, or 10 percent or more of the ownership interest of one or more attorneys in fact that are not stock corporations.
(4) “Reciprocal insurance” means an interexchange among persons, known as subscribers, of reciprocal agreements of indemnity, the interexchange being effectuated through an attorney in fact common to all such persons.
(5) “Reciprocal insurer” means an unincorporated aggregation of subscribers operating individually and collectively through an attorney in fact to provide reciprocal insurance among themselves.
629.031 Scope of chapter.—All authorized reciprocal insurers shall be governed by those sections of this chapter not expressly made applicable to domestic reciprocal insurers.
(1) Have and use a business name. The name shall include the word “reciprocal,” or “interinsurer,” or “interinsurance,” or “exchange,” or “underwriters,” or “underwriting,” but this requirement shall not apply as to any insurer holding a certificate of authority to transact insurance in this state immediately prior to the effective date of this code.
(1) A domestic reciprocal insurer hereunder formed, if it has otherwise complied with the applicable provisions of this code, may be authorized to transact insurance if it has and thereafter maintains surplus funds of not less than $250,000.
(2) In addition to the surplus required to be maintained under subsection (1), the insurer shall have, when first so authorized, an expendable surplus of not less than $750,000.
(1) Twenty-five or more persons domiciled in this state may organize a domestic reciprocal insurer by applying to the office for a permit to do so. A domestic reciprocal insurer may not be formed unless the persons so proposing have first received a permit from the office.
(2) The permit application, to be filed by the organizers or the proposed attorney in fact, must be in writing and made in accordance with forms prescribed by the commission. In addition to any applicable requirements of s. 628.051 and other relevant statutes, the application must include all of the following:
(a) The name of the proposed reciprocal insurer, which must be in accordance with s. 629.051.
(b) The location of the insurer’s principal office, which must be the same as that of the proposed attorney in fact and must be maintained within this state.
(c) The kinds of insurance proposed to be transacted.
(d) The names and addresses of the original 25 or more subscribers.
(e) The proposed designation and appointment of the proposed attorney in fact and a copy of the proposed power of attorney.
(f) The names and addresses of the officers and directors of the proposed attorney in fact, if a corporation, or of its members, if other than a corporation.
(g) The background information as specified in s. 629.227 for all officers, directors, managers, and those in equivalent positions of the proposed attorney in fact as well as for any person with an ownership interest of 10 percent or more in the proposed attorney in fact.
(h) The articles of incorporation and bylaws, or equivalent documents, of the proposed attorney in fact, dated within the last year and appropriately certified.
(i) The proposed charter of the subscribers’ advisory committee, and the names and terms of office of the members thereof, as well as the background information as specified in s. 629.227 for each proposed member.
(j) A copy of the proposed subscribers’ agreement.
(k) A copy of each policy, endorsement, and application form it then proposes to issue or use.
(l) Any other pertinent information and documents as reasonably requested by the office.
(3) The filing must be accompanied by the application fee required by s. 624.501(1)(a).
(4) The office shall evaluate and grant or deny the permit application in accordance with ss. 628.061, 628.071, and other relevant provisions of the code.
(1) A domestic reciprocal insurer may seek a certificate of authority only after obtaining a permit.
(2) To apply for a certificate of authority as a domestic reciprocal insurer, the attorney in fact of an applicant who has previously received a permit from the office may file an application for a certificate of authority in accordance with forms prescribed by the commission which, in addition to applicable requirements of ss. 624.404, 624.411, 624.413, and other relevant statutes, consists of all of the following:
(a) Executed copies of any proposed or draft documents required as part of the permit application.
(b) A statement affirming that all moneys paid to the reciprocal insurer shall, after deducting therefrom any sum payable to the attorney in fact, be held in the name of the insurer and for the purposes specified in the subscribers’ agreement.
(c) A statement that each of the original subscribers has in good faith applied for insurance of a kind proposed to be transacted, and that the insurer has received from each such subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than 6 months at an adequate rate that was filed with and approved by the office.
(d) A copy of the bond required under s. 629.121.
(e) A statement of the financial condition of the insurer, a schedule of its assets, and a statement that the surplus as required by s. 629.071 is on hand.
(f) Such other pertinent information or documents as reasonably requested by the office.
(3) If the reciprocal insurer intends to issue nonassessable policies upon receipt of a certificate of authority and if the office determines that the reciprocal insurer meets the legal requirements to issue nonassessable policies, including the surplus requirements, the office shall grant the authorization to issue nonassessable policies.
(4) The certificate of authority must be issued in the name of the reciprocal insurer to its attorney in fact.
629.094 Continued eligibility for certificate of authority.—In order to maintain its eligibility for a certificate of authority, a domestic reciprocal insurer must continue to meet all applicable conditions required for receiving the initial permit and certificate of authority under the insurance code and the rules adopted thereunder.
(1) The rights and powers of the attorney in fact of a reciprocal insurer are as provided in the power of attorney given it by the subscribers.
(2) The power of attorney must set forth all of the following:
(a) The powers of the attorney in fact.
(b) That the attorney in fact is empowered to accept service of process on behalf of the insurer in actions against the insurer upon contracts exchanged.
(c) The place where the office of the attorney in fact is maintained.
(d) The general services to be performed by the attorney in fact.
(e) That the attorney in fact has a fiduciary duty to the subscribers of the reciprocal insurer.
(f) The maximum amount to be deducted from advance premiums or deposits to be paid to the attorney in fact and the general items of expense in addition to losses to be paid by the insurer.
(g) Except as to nonassessable policies, a provision for a contingent several liability of each subscriber in a specified amount, which amount may not be less than 5 nor more than 10 times the premium or premium deposit stated in the policy.
(3) The power of attorney may:
(a) Provide for the right of substitution of the attorney in fact and revocation of the power of attorney and rights thereunder.
(b) Impose such restrictions upon the exercise of the power as are agreed upon by the subscribers.
(c) Provide for the exercise of any right reserved to the subscribers directly or through their advisory committee.
(4) The power of attorney must contain other lawful provisions deemed advisable.
(5) The terms of any power of attorney or agreement collateral thereto must be reasonable and equitable, and such power or agreement may not be used or be effective in this state unless filed with the office.
629.111 Modifications.—Modifications of the terms of the subscribers’ agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers’ advisory committee. No such modification shall be effective retroactively, nor as to any insurance contract issued prior thereto.
(1) Concurrently with the filing of the declaration provided for in s. 629.081, the attorney of a domestic reciprocal insurer shall file with the office a bond in favor of this state for the benefit of all persons damaged as a result of breach by the attorney of the conditions of his or her bond as set forth in subsection (2). The bond shall be executed by the attorney and by an authorized corporate surety and shall be subject to the approval of the office.
(2) The bond shall be in the sum of $100,000, aggregate in form, the bond conditioned that the attorney will faithfully account for all moneys and other property of the insurer coming into his or her hands, and that he or she will not withdraw or appropriate to his or her own use from the funds of the insurer any moneys or property to which he or she is not entitled under the power of attorney.
(3) The bond shall provide that it is not subject to cancellation unless 30 days’ advance notice in writing of cancellation is given both the attorney and the office.
629.131 Deposit in lieu of bond.—In lieu of the bond required under s. 629.121, the attorney may maintain on deposit with the department a like amount in value of securities qualified for deposit under s. 625.52 and subject to the same conditions as the bond.
629.141 Action on bond.—Action on the attorney’s bond or to recover against any such deposit made in lieu thereof may be brought at any time by one or more subscribers suffering loss through a violation of its conditions or by a receiver or liquidator of the insurer. Amounts recovered on the bond shall be deposited in and become part of the insurer’s funds. The total aggregate liability of the surety shall be limited to the amount of the penalty of such bond.
629.161 Contributions to insurer.—The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer and, except upon liquidation of the insurer, shall not be withdrawn or repaid except out of the insurer’s realized earned surplus in excess of its minimum required surplus. No such withdrawal or repayment shall be made without the advance approval of the office. This section does not apply as to bank loans or to loans made upon security.
(1) The annual statement of a reciprocal insurer shall be made and filed by its attorney.
(2) The statement shall be supplemented by such information as may be required by the office relative to the affairs and transactions of the attorney insofar as they relate to the reciprocal insurer.
629.181 Financial condition; method of determining.—In determining the financial condition of a reciprocal insurer, the office shall apply the following rules:
(1) The surplus deposits of subscribers shall be allowed as assets, except that any premium deposits delinquent for 90 days shall first be charged against such surplus deposit.
(2) An assessment levied upon subscribers, but not collected, shall not be allowed as an asset.
(3) The contingent liability of subscribers shall not be allowed as an asset.
629.191 Who may be subscribers.—Individuals, partnerships, and corporations of this state may make applications for, enter into agreements for, and hold policies or contracts in or with, and be subscribers of, any domestic, foreign, or alien reciprocal insurer.
(1) The advisory committee of a domestic reciprocal insurer exercising the subscribers’ rights shall be selected under such rules as the subscribers adopt.
(2) Not less than two-thirds of such committee shall be subscribers other than the attorney, or any person employed by, representing, or having a financial interest in the attorney.
(3) The committee shall:
(a) Supervise the finances of the insurer;
(b) Supervise the insurer’s operations to such extent as to assure conformity with the subscribers’ agreement and power of attorney;
(c) Procure the audit of the accounts and records of the insurer and of the attorney at the expense of the insurer; and
(d) Have such additional powers and functions as may be conferred by the subscribers’ agreement.
(1) The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several, and proportionate liability, and not joint.
(2) Except as to a nonassessable policy, each subscriber shall have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers’ agreement, for payment of actual losses and expenses incurred while his or her policy was in force.
(3) Each assessable policy issued by the insurer shall contain a statement of the contingent liability.
(1) No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for 30 days.
(2) Any such judgment shall be binding upon each subscriber only in such proportion as his or her interests may appear and in amount not exceeding his or her contingent liability, if any.
(1) A person may not, individually or in conjunction with an affiliated person of such person, directly or indirectly, conclude a tender offer or exchange offer for, enter into any agreement to exchange securities for, or otherwise finally acquire 10 percent or more of the outstanding voting securities of an attorney in fact that is a stock corporation or of a controlling company of an attorney in fact that is a stock corporation; or conclude an acquisition of, or otherwise finally acquire, 10 percent or more of the ownership interest of an attorney in fact that is not a stock corporation or of a controlling company of an attorney in fact that is not a stock corporation, unless all of the following conditions are met:
(a)1. The person or affiliated person has filed with the office and sent to the principal office of the attorney in fact, any controlling company of the attorney in fact, the subscribers’ advisory committee, and the domestic reciprocal insurer a letter of notification regarding the transaction or proposed transaction no later than 5 days after any form of tender offer or exchange offer is proposed, or no later than 5 days after the acquisition of the securities or ownership interest if a tender offer or exchange offer is not involved. The notification must be provided on forms prescribed by the commission containing information determined necessary to understand the transaction and identify all purchasers and owners involved.
2. The subscribers’ advisory committee must provide the notification to the subscribers of the reciprocal insurer within 3 business days. Such notification must be provided on a form prescribed by the commission explaining what the notification is and letting the subscribers know of the filing deadlines for objecting to the acquisition.
(b) The person or affiliated person has filed with the office an application, signed under oath and prepared on forms prescribed by the commission, which contains the information specified in subsection (3). The application must be completed and filed within 30 days after any form of tender offer or exchange offer is proposed, or after the acquisition of the securities if a tender offer or exchange offer is not involved.
(c) The office has approved the tender offer or exchange offer, or acquisition if a tender offer or exchange offer is not involved.
(2) The person or affiliated person filing the notice required in paragraph (1)(a) may additionally request the office to waive the requirements of paragraph (1)(b), provided that there is no change in the ultimate controlling shareholders and no change in the ownership percentages of the ultimate controlling shareholders, and no unaffiliated parties acquire any direct or indirect interest in the attorney in fact. The office may waive the filing required in paragraph (1)(b) if it determines that in fact there is no change in the ultimate controlling shareholders and no change in the ownership percentages of the ultimate controlling shareholders, and no unaffiliated parties will acquire any direct or indirect interest in the attorney in fact.
(3) The application to be filed with the office and furnished to the attorney in fact must contain all of the following information and any additional information as the office deems necessary to determine the character, experience, ability, and other qualifications of the person or affiliated person of such person for the protection of the reciprocal insurer’s subscribers and of the public:
(a) The identity and background information specified in s. 629.227 of:
1. Each person by whom, or on whose behalf, the acquisition is to be made; and
2. Any person who controls, directly or indirectly, such other person, including each director, officer, trustee, partner, owner, manager, or joint venturer, or another person performing duties similar to those of persons in such positions, for the person.
(b) The source and amount of the funds or other consideration used, or to be used, in making the acquisition.
(c) Any plans or proposals that such persons may have made to liquidate the attorney in fact or controlling company, to sell any of their assets or merge or consolidate them with any person, or to make any other major change in their business or corporate structure or management.
(d) The nature and the extent of the controlling interest which the person or affiliated person of such person proposes to acquire, the terms of the proposed acquisition, and the manner in which the controlling interest is to be acquired of an attorney in fact or controlling company which is not a stock corporation.
(e) The number of shares or other securities that the person or affiliated person of such person proposes to acquire, the terms of the proposed acquisition, and the manner in which the securities are to be acquired.
(f) Information as to any contract, arrangement, or understanding with any party with respect to any of the securities of the attorney in fact or controlling company, including, but not limited to, information relating to the transfer of any of the securities, option arrangements, puts or calls, or the giving or withholding of proxies, which information names the party with whom the contract, arrangement, or understanding has been entered into and gives the details thereof.
(4) The filing must be accompanied by the fee required under s. 624.501(1)(a).
(5) If any material change occurs in the facts provided in the application filed with the office pursuant to this section, or the background information required under s. 629.227, an amendment specifying such changes must be filed immediately with the office, and a copy of the amendment must be sent to the principal office of the attorney in fact and to the principal office of the controlling company.
(6)(a) The acquisition application must be reviewed in accordance with chapter 120. The office may, on its own initiative, or, if requested to do so in writing by a substantially affected person, shall conduct a proceeding to consider the appropriateness of the proposed filing. Time periods for purposes of chapter 120 are tolled during the pendency of the proceeding. Any written request for a proceeding must be filed with the office within 10 days after the date on which notice of the filing is given, or 10 days after the date on which notice of the filing is sent to the subscribers by the subscribers’ advisory committee, whichever is later. During the pendency of the proceeding or review period by the office, any person or affiliated person complying with the filing requirements of this section may proceed and take all steps necessary to conclude the acquisition as long as the acquisition’s becoming final is conditioned upon obtaining office approval. However, at any time that the office finds that an immediate danger to the public health, safety, and welfare of the reciprocal insurer’s subscribers exists, the office shall immediately order, pursuant to s. 120.569(2)(n), the proposed acquisition disapproved and any further steps to conclude the acquisition ceased.
(b) During the pendency of the office’s review of any acquisition subject to this section, the acquiring person may not make any material change in the operation of the attorney in fact or controlling company unless the office has specifically approved the change, and the acquiring person may not make any material change in the management of the attorney in fact unless advance written notice of the change in management is furnished to the office. As used in this paragraph, the term “material change in the operation of the attorney in fact” means a transaction that disposes of or obligates 5 percent or more of the capital and surplus of the attorney in fact or of any domestic reciprocal insurer. The term “material change in the management of the attorney in fact” means any change in management involving officers or directors of the attorney in fact or any person of the attorney in fact or controlling company having authority to dispose of or obligate 5 percent or more of the attorney in fact’s capital or surplus. The office must approve a material change in operations if it finds the applicable provisions of subsection (7) have been met. The office may disapprove a material change in management if it finds that the applicable provisions of subsection (7) have not been met, and, in such case, the attorney in fact shall promptly change management as acceptable to the office.
(c) If a request for a proceeding is filed, the proceeding must be conducted within 60 days after the date the written request for a proceeding is received by the office. A recommended order must be issued within 20 days after the date of the close of the proceeding. A final order must be issued within 20 days after the date of the recommended order or, if exceptions to the recommended order are filed, within 20 days after the date the exceptions are filed.
(7) The office may disapprove any acquisition subject to this section by any person, or any affiliated person of such person, who:
(a) Willfully violates this section;
(b) In violation of an order issued by the office pursuant to subsection (12), fails to divest himself or herself of any stock or ownership interest obtained in violation of this section or fails to divest himself or herself of any direct or indirect control of such stock or ownership interest, within 25 days after such order; or
(c) In violation of an order issued by the office pursuant to subsection (12), acquires an additional stock or ownership interest in an attorney in fact or controlling company or direct or indirect control of such stock or ownership interest, without complying with this section.
(8) The person filing the application required by this section has the burden of proof. The office must approve any such acquisition if it finds, on the basis of the record made during any proceeding or on the basis of the filed application if no proceeding is conducted, that:
(a) The financial condition of the acquiring person will not jeopardize the financial stability of the attorney in fact or prejudice the interests of the reciprocal insurer’s subscribers or the public.
(b) Any plan or proposal that the acquiring person has made:
1. To liquidate the attorney in fact, sell its assets, or merge or consolidate it with any person, or to make any other major change in its business or corporate structure or management; or
2. To liquidate any controlling company, sell its assets, or merge or consolidate it with any person, or to make any major change in its business or corporate structure or management which would have an effect upon the attorney in fact,
is fair and free of prejudice to the reciprocal insurer’s subscribers or to the public.
(c) The competence, experience, and integrity of those persons who will control directly or indirectly the operation of the attorney in fact indicate that the acquisition is in the best interest of the reciprocal insurer’s subscribers and in the public interest.
(d) The natural persons for whom background information is required to be furnished pursuant to this section have such backgrounds as to indicate that it is in the best interests of the reciprocal insurer’s subscribers and in the public interest to permit such persons to exercise control over the attorney in fact.
(e) The directors and officers, if such attorney in fact or controlling company is a stock corporation, or the trustees, partners, owners, managers, joint venturers, or other persons performing duties similar to those of persons in such positions, if such attorney in fact or controlling company is not a stock corporation, to be employed after the acquisition have sufficient insurance experience and ability to ensure reasonable promise of successful operation.
(f) The management of the attorney in fact after the acquisition will be competent and trustworthy and will possess sufficient managerial experience so as to make the proposed operation of the attorney in fact not hazardous to the insurance-buying public.
(g) The management of the attorney in fact after the acquisition will not include any person who has directly or indirectly through ownership, control, reinsurance transactions, or other insurance or business relations unlawfully manipulated the assets, accounts, finances, or books of any insurer or otherwise acted in bad faith with respect thereto.
(h) The acquisition is not likely to be hazardous or prejudicial to the reciprocal insurer’s subscribers or to the public.
(i) The effect of the acquisition would not substantially lessen competition in the line of insurance for which the reciprocal insurer is licensed or certified in this state or would not tend to create a monopoly therein.
(9) A vote by the stockholder of record, or by any other person, of any security acquired in contravention of this section is not valid. Any acquisition contrary to this section is void. Upon the petition of the attorney in fact, the controlling company, or the reciprocal insurer, the circuit court for the county in which the principal office of the attorney in fact is located may, without limiting the generality of its authority, order the issuance or entry of an injunction or other order to enforce this section. There is a private right of action in favor of the attorney in fact or controlling company to enforce this section. A demand upon the office that it perform its functions is not required as a prerequisite to any suit by the attorney in fact or controlling company against another person, and in no case is the office deemed a necessary party to any action by the attorney in fact or controlling company to enforce this section. Any person who makes or proposes an acquisition requiring the filing of an application pursuant to this section, or who files such an application, is deemed thereby to have designated the Chief Financial Officer, or his or her assistant or deputy or another person in charge of his or her office, as such person’s agent for service of process under this section and is deemed thereby to have submitted himself or herself to the administrative jurisdiction of the office and to the jurisdiction of the circuit court.
(10) Any approval by the office under this section does not constitute a recommendation by the office of the tender offer or exchange offer, or the acquisition if a tender offer or exchange offer is not involved. It is unlawful for a person to represent that the office’s approval constitutes a recommendation. A person who violates this subsection commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084. The statute-of-limitations period for the prosecution of an offense committed under this subsection is 5 years.
(11) A person may rebut a presumption of control by filing a disclaimer of control with the office on a form prescribed by the commission. The disclaimer must fully disclose all material relationships and bases for affiliation between the person and the attorney in fact as well as the basis for disclaiming the affiliation. In lieu of such form, a person or acquiring party may file with the office a copy of a Schedule 13G filed with the Securities and Exchange Commission pursuant to Rule 13d-1(b) or (c), 17 C.F.R. s. 240.13d-1, under the Securities Exchange Act of 1934, as amended. After a disclaimer has been filed, the attorney in fact is relieved of any duty to register or report under this section which may arise out of the attorney in fact’s relationship with the person unless the office disallows the disclaimer.
(12) If the office determines that any person or any affiliated person of such person has acquired 10 percent or more of the outstanding voting securities of an attorney in fact or controlling company that is a stock corporation, or 10 percent or more of the ownership interest of an attorney in fact or controlling company that is not a stock corporation, without complying with this section, the office may order that the person and any affiliated person of such person cease acquisition of the attorney in fact or controlling company and, if appropriate, divest itself of any stock or ownership interest acquired in violation of this section.
(13)(a) The office shall, if necessary to protect the public interest, suspend or revoke the certificate of authority of the reciprocal insurer whose attorney in fact or controlling company is acquired in violation of this section.
(b) If a reciprocal insurer is subject to suspension or revocation pursuant to paragraph (a), any other reciprocal insurer using the same attorney in fact is also subject to suspension or revocation. In such case, the office may offer any affected reciprocal insurer, through its subscriber representatives, the ability to cure any suspension or revocation by procuring another attorney in fact acceptable to the office or by taking any other action agreed to by the office.
(14) This section applies to domestic reciprocal insurers and the attorney in fact of domestic reciprocal insurers. This section does not apply to any acquisition of voting securities or ownership interest of an attorney in fact or of a controlling company by any person who is the owner of a majority of the voting securities or ownership interest with the approval of the office under this section or s. 629.091.
629.227 Background information.—The information as to the background and identity of each person about whom information is required to be furnished pursuant to s. 629.081 or s. 629.225 must include, but need not be limited to, all of the following:
(1) A sworn biographical statement, on forms adopted by the commission, which must include, but need not be limited to, the following information:
(a) Occupations, positions of employment, and offices held during the past 20 years, including the principal business and address of any business, corporation, or organization where each occupation, position of employment, or office occurred.
(b) Whether, at any time during such 20-year period, the person was convicted of any crime other than a traffic violation.
(c) Whether, during such 20-year period, the person has been the subject of any proceeding for the revocation of any license and, if so, the nature of the proceeding and the disposition of the proceeding.
(d) Whether, during such 20-year period, the person has been the subject of any proceeding under the federal Bankruptcy Act.
(e) Whether, during such 20-year period, any person or other business or organization in which the person was a director, officer, trustee, partner, owner, manager, or other official has been the subject of any proceeding under the federal Bankruptcy Act, either during the time of that person’s tenure with the business or organization or within 12 months thereafter.
(f) Whether, during such 20-year period, the person has been enjoined, either temporarily or permanently, by a court of competent jurisdiction from violating any federal or state law regulating the business of insurance, securities, or banking, or from carrying out any particular practice or practices in the course of the business of insurance, securities, or banking, together with details as to any such event.
(g) Whether, during such 20-year period, the person has served as the attorney in fact, a subscribers’ advisory committee member, or any other manager or officer of a reciprocal insurer or insurer that became insolvent or had its certificate of authority suspended or revoked.
(2) A full set of fingerprints of each person, which must be submitted to the department or to a vendor, entity, or agency authorized by s. 943.053(13). The department, vendor, entity, or agency shall forward the fingerprints to the Department of Law Enforcement for state processing, and the Department of Law Enforcement shall forward the fingerprints to the Federal Bureau of Investigation for national processing as described in s. 624.34. Fees for state and federal fingerprint processing shall be borne by the person. The state cost for fingerprint processing shall be as provided in s. 943.053(3)(e).
(3) An authorization for release of information in regard to the investigation of such person’s background.
(4) Any additional information that the office deems necessary to determine the character, experience, ability, and other qualifications of the person, or affiliated person of such person, for the protection of the reciprocal insurer’s subscribers and of the public.
629.229 Attorneys in fact, officers, and directors of insolvent reciprocal insurers or other insurers.—A person who served as an attorney in fact, or as an officer, director, or manager of an attorney in fact; a member of a subscribers’ advisory committee of a reciprocal insurer doing business in this state; or an officer or director of any other insurer doing business in this state, and who served in that capacity within the 2-year period before the date the insurer or reciprocal insurer became insolvent, for an insolvency that occurs on or after July 1, 2024, may not thereafter:
(1) Serve as an attorney in fact, or as an officer, director, or manager of an attorney in fact; a member of a subscribers’ advisory committee of a reciprocal insurer doing business in this state; or an officer or director of any other insurer doing business in this state; or
(2) Have direct or indirect control over the selection or appointment of an attorney in fact, or of an officer, director, or manager of an attorney in fact; or a member of the subscribers’ advisory committee of a reciprocal insurer doing business in this state; or an officer or director of any insurer doing business in this state, through contract or trust or by operation of law,
unless the person demonstrates that his or her personal actions or omissions were not a significant contributing cause to the insolvency.
(1) Assessments may from time to time be levied upon subscribers of a domestic reciprocal insurer liable therefor under the terms of their policies by the attorney upon approval in advance by the subscribers’ advisory committee and the office, or by the department as receiver of the insurer.
(2) Each subscriber’s share of a deficiency for which an assessment is made, but not exceeding in any event his or her aggregate contingent liability as computed in accordance with s. 629.251, shall be computed by applying, to the premium earned on the subscriber’s policy or policies during the period to be covered by the assessment, the ratio of the total deficiency to the total premiums earned during such period upon all policies subject to the assessment.
(3) In computing the earned premiums for the purposes of this section, the gross premium received by the insurer for the policy shall be used as a base, deducting therefrom solely charges not recurring upon the renewal or extension of the policy.
(4) No subscriber shall have an offset against any assessment for which he or she is liable, on account of any claim for unearned premium or losses payable.
629.241 Time limit for assessments.—Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay his or her share of, any assessment, as computed and limited in accordance with this chapter, if:
(1) While his or her policy is in force or within 4 years after its termination, the subscriber is notified by either the attorney or the office of its intentions to levy such assessment; or
(2) An order to show cause why a receiver, conservator, rehabilitator, or liquidator of the insurer should not be appointed is issued while the subscriber’s policy is in force or within 4 years after its termination.
629.251 Aggregate liability.—No one policy or subscriber as to such policy shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one calendar year in excess of the amount provided for in the power of attorney or in the subscribers’ agreement, computed solely upon premium earned on such policy during that year.
629.261 Nonassessable policies.—Upon the impairment of the surplus of a nonassessable reciprocal insurer, the office shall revoke the authorization issued under s. 629.091(3) or s. 629.291(5). Upon the revocation of the authority to issue nonassessable policies, the reciprocal insurer may no longer issue or renew nonassessable policies or convert assessable policies to nonassessable policies and s. 629.301 applies. Such revocation may not render subject to contingent liability any policy then in force and for the remainder of the period for which the premium has theretofore been paid; but, after such revocation, no policy shall be issued or renewed without providing for contingent assessment liability of the subscriber.
(1) A reciprocal insurer may return to its subscribers any unused premiums, savings, or credits accruing to their accounts. Such distribution may not unfairly discriminate between classes of risks or policies, or between subscribers, but may vary as to classes of subscribers based on the experience of the classes.
(2) In addition to the option provided in subsection (1), a domestic reciprocal insurer may, upon the prior written approval of the office, pay to its subscribers a portion of unassigned funds of up to 10 percent of surplus, with distribution limited to 50 percent of net income from the previous calendar year. Such distribution may not unfairly discriminate between classes of risks or policies, or between subscribers, but may vary as to classes of subscribers based on the experience of the classes.
629.281 Subscribers’ share in assets.—Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions of the attorney or other persons to its surplus made as provided in s. 629.161, and the return of any unused premium, savings, or credits then standing on subscribers’ accounts shall be distributed to its subscribers who were such within the 12 months prior to the last termination of its certificate of authority, according to such reasonable formula as the office approves.
(1) A reciprocal insurer, upon affirmative vote of not less than two-thirds of its subscribers who vote on such merger pursuant to due notice, and subject to approval by the office of the terms therefor, may merge with another reciprocal insurer or be converted to a stock or mutual insurer, to be thereafter governed by the applicable sections of the Florida Insurance Code. However, a domestic stock insurer may not convert to a reciprocal insurer.
(2) A plan to merge a reciprocal insurer with another reciprocal insurer or for conversion of the reciprocal insurer to a stock or mutual insurer must be filed with the office on forms adopted by the office and must contain such information as the office reasonably requires to evaluate the transaction.
(3) The office shall not approve any plan for such merger or conversion which is inequitable to subscribers or which, if for conversion to a stock insurer, does not give each subscriber preferential right to acquire stock of the proposed insurer proportionate to his or her interest in the reciprocal insurer, as determined in accordance with s. 629.281, and a reasonable length of time within which to exercise such right.
(4) Reinsurance of all or substantially all of the insurance in force of a domestic reciprocal insurer in another insurer is deemed to be a merger for the purposes of this section.
(5)(a) An assessable reciprocal insurer may convert to a nonassessable reciprocal insurer if:
1. The subscribers’ advisory committee approves the conversion;
2. The attorney in fact submits the application for conversion on the required application form; and
3. The office finds that the application for conversion meets the minimum statutory requirements.
(b) If the office approves the application for conversion, the assessable reciprocal insurer may convert to a nonassessable reciprocal insurer by:
1. Extinguishing the contingent liability of subscribers under all policies then in force in this state;
2. Omitting contingent liability provisions in all policies delivered or issued in this state after the conversion; and
3. Otherwise extinguishing the contingent liability of all of its subscribers. However, if the reciprocal insurer is transacting insurance as an authorized insurer in another state and that state’s laws require the insurer to issue policies with contingent liability provisions, the insurer may issue contingent liability policies in that other state.
(1) If the assets of a domestic reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds contributed by the attorney or others, and to maintain the required surplus, its attorney shall forthwith make up the deficiency or levy an assessment upon the subscribers for the amount needed to make up the deficiency, but subject to the limitation set forth in the power of attorney or policy.
(2) If the attorney fails to make up such deficiency or to make the assessment within 30 days after the office orders him or her to do so, or if the deficiency is not fully made up within 60 days after the date the assessment was made, the insurer shall be deemed insolvent and shall be proceeded against as authorized by this code.
(3) If liquidation of such an insurer is ordered, an assessment shall be levied upon the subscribers for such an amount, subject to limits as provided by this chapter, as the office determines to be necessary to discharge all liabilities of the insurer, exclusive of any funds contributed by the attorney or other persons, but including the reasonable cost of the liquidation.
(1) There may be created one or more insurance exchanges, with one or more offices each, subject to such rules as are adopted by the commission. For the purposes of this section, the term “exchange” applies to any such insurance exchange proposed or created under this section. The purposes of the exchange are:
(a) To provide a facility for the underwriting of:
1. Reinsurance of all kinds of insurance.
2. Direct insurance of all kinds on risks located entirely outside the United States.
3. Surplus lines insurance for risks located in this state eligible for export under s. 626.916 or s. 626.917 and placed through a licensed Florida surplus lines agent subject to compliance with the provisions of ss. 626.921, 626.922, 626.923, 626.924, 626.929, 626.9295, 626.930, and 626.931. With respect to compliance with s. 626.924, the required legend may refer to any coverage provided for by a security fund established under paragraph (3)(d).
4. Surplus lines insurance in any other state subject to the applicable surplus lines laws of such other state for risks located entirely outside of this state.
(b) To manage the facility authorized by this section, in accordance with rules adopted by the commission.
(c) In no event shall the exchange be considered to be an underwriter or broker with respect to any contract of insurance or reinsurance written by a member of the exchange, and the exchange shall not incur any liability therefor.
(2) The operation of this subsection shall become effective with respect to any exchange only after a determination by the office that the exchange may operate in an economic and beneficial manner. A committee shall be appointed to write the constitution and bylaws of the proposed exchange, to make such other recommendations as may be necessary to assure maximum coordination of the operations of the exchange with existing insurance industry operations, and to assure maximum economic benefits to the state from the operations of the exchange. The committee shall consist of 13 members, 6 to be appointed by the Chief Financial Officer, 2 each to be appointed by the Speaker of the House of Representatives and the President of the Senate, 1 each to be appointed by the minority leader of the House of Representatives and the minority leader of the Senate, and 1 to be the Chief Financial Officer or his or her designated representative. The chair shall be elected by a majority of the committee. The committee shall transmit such proposed constitution and bylaws and such other recommendations to the office and to the Legislature no later than 5 days prior to the adjournment of a regular annual legislative session or no later than 5 days prior to the commencement of any special or organizational legislative session. Subject to the disapproval of the constitution and bylaws by either house of the Legislature by resolution before the end of such legislative session, the exchange shall have full authority to function pursuant to its constitution and bylaws 60 days after the end of the session. The initial board of governors of the exchange shall consist of 14 members, 3 appointed by the Chief Financial Officer, 3 by the Speaker of the House of Representatives, 3 by the President of the Senate, 1 by the minority leader of the House of Representatives, 1 by the minority leader of the Senate, and 3 by the Governor, to serve until the first election pursuant to the constitution or bylaws.
(3) The constitution and bylaws of the exchange shall provide for, but shall not be limited to:
(a) The selection of 13 governors, at least 7 of whom shall be appointed by and serve at the pleasure of the Chief Financial Officer. Five of the governors appointed by the Chief Financial Officer shall not be members of the exchange. One of the remaining two governors appointed by the Chief Financial Officer shall be a broker member, and one shall be a representative of an underwriting member. The remainder of the governors shall be elected by the membership of the exchange in accordance with the constitution and bylaws, except that at least five governors shall be elected by the underwriting members of the exchange.
(b) The location of the principal offices of the exchange and the principal offices of its members to be within this state for the purpose of the transaction of the type of business described in subsection (1). A principal office shall be one where officers and qualified personnel who are engaged in the administration, underwriting, claims, policyholders’ service, marketing, accounting, recordkeeping, and all supportive services shall be located.
(c) The submission by members and all applicants for membership on the exchange of such financial information as may be required by the office.
(d)1. The establishment by the exchange of a security fund in such form and amount as approved by the office.
2. With respect to contracts of insurance written or renewed on or after July 2, 1987:
a. The security fund shall pay that amount of each covered claim which is determined to be payable in accordance with the constitution and bylaws and is in excess of $100 and less than $300,000, except that the fund shall not be obligated to a policyholder or claimant in an amount in excess of the obligation of the insolvent underwriting member under the policy from which the claim arises.
b. The security fund shall have no obligation and shall make no payment of any obligation arising under any such contract or with respect to any contract of reinsurance written or renewed on or after July 2, 1987, to the extent the payment or payments exceed, either individually or in the aggregate, 10 percent of the insolvent underwriting member’s surplus as to policyholders as reflected on the most recent sworn annual statement of the insolvent underwriting member filed with the office prior to issuance of such contract.
c. For the purposes of this subparagraph, each reinsurance treaty and each contract of insurance inuring to the benefit of multiple parties shall constitute only one contract, and covered claims include unpaid claims, including claims of unearned premiums, which arise out of and are within the coverage and are not in excess of the applicable limits of an insurance policy issued by an insolvent underwriting member through the facilities of the exchange.
(e) The voting power of members who are underwriting syndicates.
(f) The voting power and other rights granted under the provisions of the not-for-profit corporation law, chapter 617, to participate in the conduct and management of the affairs of the exchange, by brokers, agents, and intermediaries transacting business on the exchange, each of whom shall be considered “members” only under the provisions of such law.
(g) The rights and duties of exchange members, which may include, but shall not be limited to, the manner and form of conducting business, financial stability, dues, membership fees, mandatory arbitration, and all other matters necessary or appropriate to conduct any business permitted herein.
Any amendments to the constitution and bylaws shall be subject to the approval of the office.
(4) Any insurance exchange formed under the provisions of this section shall not be subject to any state or local taxes or fees measured by income, premiums, or gross receipts; except that for purposes of taxation under s. 624.509, direct premiums written, procured, or received by a member or members through the exchange on risks located in this state shall be construed to be written, procured, or received by the exchange, and the premium tax due on said premium shall be reported and paid by the exchange.
(5) The exchange shall reimburse the office for any expenses incurred by the office relating to the regulation of the exchange and its members.
(6)(a)1. The provisions of ss. 625.012 and 625.031 shall be applicable to the underwriting members of an exchange in the same manner as those sections apply to domestic insurers authorized to do business in this state.
2. The provisions of ss. 625.302-625.338 shall be applicable to the underwriting members of an exchange in the same manner as those sections apply to domestic insurers authorized to transact business in this state.
(b) In addition to the insurance laws specified in paragraph (a), the office shall regulate the exchange pursuant to the following powers, rights, and duties:
1. General examination powers.—The office shall examine the affairs, transactions, accounts, records, and assets of any security fund, exchange, members, and associate brokers as often as it deems advisable. The examination may be conducted by the accredited examiners of the office at the offices of the entity or person being examined. The office shall examine in like manner each prospective member or associate broker applying for membership in an exchange.
2. Office approval and applications of underwriting members.—No underwriting member shall commence operation without the approval of the office. Before commencing operation, an underwriting member shall provide a written application containing:
a. Name, type, and purpose of the underwriting member.
b. Name, residence address, business background, and qualifications of each person associated or to be associated in the formation or financing of the underwriting member.
c. Full disclosure of the terms of all understandings and agreements existing or proposed among persons so associated relative to the underwriting member, or the formation or financing thereof, accompanied by a copy of each such agreement or understanding.
d. Full disclosure of the terms of all understandings and agreements existing or proposed for management or exclusive agency contracts.
3. Investigation of underwriting member applications.—In connection with any proposal to establish an underwriting member, the office shall make an investigation of:
a. The character, reputation, financial standing, and motives of the organizers, incorporators, or subscribers organizing the proposed underwriting member.
b. The character, financial responsibility, insurance experience, and business qualifications of its proposed officers.
c. The character, financial responsibility, business experience, and standing of the proposed stockholders and directors, or owners.
4. Notice of management changes.—An underwriting member shall promptly give the office written notice of any change among the directors or principal officers of the underwriting member within 30 days after such change. The office shall investigate the new directors or principal officers of the underwriting member. The office’s investigation shall include an investigation of the character, financial responsibility, insurance experience, and business qualifications of any new directors or principal officers. As a result of the investigation, the office may require the underwriting member to replace any new directors or principal officers.
5. Alternate financial statement.—In lieu of any financial examination, the office may accept an audited financial statement.
6. Correction and reconstruction of records.—If the office finds any accounts or records to be inadequate, or inadequately kept or posted, it may employ experts to reconstruct, rewrite, post, or balance them at the expense of the person or entity being examined if such person or entity has failed to maintain, complete, or correct such records or accounts after the office has given him or her or it notice and reasonable opportunity to do so.
7. Obstruction of examinations.—Any person or entity who or which willfully obstructs the office or its examiner in an examination is guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.
8. Filing of annual statement.—Each underwriting member shall file with the office a full and true statement of its financial condition, transactions, and affairs. The statement shall be filed on or before March 1 of each year, or within such extension of time as the office for good cause grants, and shall be for the preceding calendar year. The statement shall contain information generally included in insurer financial statements prepared in accordance with generally accepted insurance accounting principles and practices and in a form generally utilized by insurers for financial statements, sworn to by at least two executive officers of the underwriting member. The form of the financial statements shall be the approved form of the National Association of Insurance Commissioners or its successor organization. The commission may by rule require each insurer to submit any part of the information contained in the financial statement in a computer-readable form compatible with the office’s electronic data processing system. In addition to information furnished in connection with its annual statement, an underwriting member must furnish to the office as soon as reasonably possible such information about its transactions or affairs as the office requests in writing. All information furnished pursuant to the office’s request must be verified by the oath of two executive officers of the underwriting member.
9. Record maintenance.—Each underwriting member shall have and maintain its principal place of business in this state and shall keep therein complete records of its assets, transactions, and affairs in accordance with such methods and systems as are customary for or suitable to the kind or kinds of insurance transacted.
10. Examination of agents.—If the department has reason to believe that any agent, as defined in s. 626.015 or s. 626.914, has violated or is violating any provision of the insurance law, or upon receipt of a written complaint signed by any interested person indicating that any such violation may exist, the department shall conduct such examination as it deems necessary of the accounts, records, documents, and transactions pertaining to or affecting the insurance affairs of such agent.
11. Written reports of office.—The office or its examiner shall make a full and true written report of any examination. The report shall contain only information obtained from examination of the records, accounts, files, and documents of or relative to the person or entity examined or from testimony of individuals under oath, together with relevant conclusions and recommendations of the examiner based thereon. The office shall furnish a copy of the report to the person or entity examined not less than 30 days prior to filing the report in its office. If such person or entity so requests in writing within such 30-day period, the office shall grant a hearing with respect to the report and shall not file the report until after the hearing and after such modifications have been made therein as the office deems proper.
12. Admissibility of reports.—The report of an examination when filed shall be admissible in evidence in any action or proceeding brought by the office against the person or entity examined, or against his or her or its officers, employees, or agents. The office or its examiners may at any time testify and offer other proper evidence as to information secured or matters discovered during the course of an examination, whether or not a written report of the examination has been either made, furnished, or filed in the office.
13. Publication of reports.—After an examination report has been filed, the office may publish the results of any such examination in one or more newspapers published in this state whenever it deems it to be in the public interest.
14. Consideration of examination reports by entity examined.—After the examination report of an underwriting member has been filed, an affidavit shall be filed with the office, not more than 30 days after the report has been filed, on a form furnished by the office and signed by the person or a representative of any entity examined, stating that the report has been read and that the recommendations made in the report will be considered within a reasonable time.
15. Examination costs.—Each person or entity examined by the office shall pay to the office the expenses incurred in such examination.
16. Exchange costs.—An exchange shall reimburse the office for any expenses incurred by it relating to the regulation of the exchange and its members, except as specified in subparagraph 15.
17. Powers of examiners.—Any examiner appointed by the office, as to the subject of any examination, investigation, or hearing being conducted by him or her, may administer oaths, examine and cross-examine witnesses, and receive oral and documentary evidence, and shall have the power to subpoena witnesses, compel their attendance and testimony, and require by subpoena the production of books, papers, records, files, correspondence, documents, or other evidence which the examiner deems relevant to the inquiry. If any person refuses to comply with any such subpoena or to testify as to any matter concerning which he or she may be lawfully interrogated, the Circuit Court of Leon County or the circuit court of the county wherein such examination, investigation, or hearing is being conducted, or of the county wherein such person resides, on the office’s application may issue an order requiring such person to comply with the subpoena and to testify; and any failure to obey such an order of the court may be punished by the court as a contempt thereof. Subpoenas shall be served, and proof of such service made, in the same manner as if issued by a circuit court. Witness fees and mileage, if claimed, shall be allowed the same as for testimony in a circuit court.
18. False testimony.—Any person willfully testifying falsely under oath as to any matter material to any examination, investigation, or hearing shall upon conviction thereof be guilty of perjury and shall be punished accordingly.
19. Self-incrimination.—
a. If any person asks to be excused from attending or testifying or from producing any books, papers, records, contracts, documents, or other evidence in connection with any examination, hearing, or investigation being conducted by the office or its examiner, on the ground that the testimony or evidence required of the person may tend to incriminate him or her or subject him or her to a penalty or forfeiture, and the person notwithstanding is directed to give such testimony or produce such evidence, he or she shall, if so directed by the office and the Department of Legal Affairs, nonetheless comply with such direction; but the person shall not thereafter be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he or she may have so testified or produced evidence, and no testimony so given or evidence so produced shall be received against him or her upon any criminal action, investigation, or proceeding; except that no such person so testifying shall be exempt from prosecution or punishment for any perjury committed by him or her in such testimony, and the testimony or evidence so given or produced shall be admissible against him or her upon any criminal action, investigation, or proceeding concerning such perjury, nor shall he or she be exempt from the refusal, suspension, or revocation of any license, permission, or authority conferred, or to be conferred, pursuant to the insurance law.
b. Any such individual may execute, acknowledge, and file with the office a statement expressly waiving such immunity or privilege in respect to any transaction, matter, or thing specified in such statement, and thereupon the testimony of such individual or such evidence in relation to such transaction, matter, or thing may be received or produced before any judge or justice, court, tribunal, grand jury, or otherwise; and if such testimony or evidence is so received or produced, such individual shall not be entitled to any immunity or privileges on account of any testimony so given or evidence so produced.
20. Penalty for failure to testify.—Any person who refuses or fails, without lawful cause, to testify relative to the affairs of any member, associate broker, or other person when subpoenaed and requested by the office to so testify, as provided in subparagraph 17., shall, in addition to the penalty provided in subparagraph 17., be guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.
21. Name selection.—No underwriting member shall be formed or authorized to transact insurance in this state under a name which is the same as that of any authorized insurer or is so nearly similar thereto as to cause or tend to cause confusion or under a name which would tend to mislead as to the type of organization of the insurer. Before incorporating under or using any name, the underwriting syndicate or proposed underwriting syndicate shall submit its name or proposed name to the office for the approval of the office.
22. Capitalization.—An underwriting member approved on or after July 2, 1987, shall provide an initial paid-in capital and surplus of $3 million and thereafter shall maintain a minimum policyholder surplus of $2 million in order to be permitted to write insurance. Underwriting members approved prior to July 2, 1987, shall maintain a minimum policyholder surplus of $1 million. After June 29, 1988, underwriting members approved prior to July 2, 1987, must maintain a minimum policyholder surplus of $1.5 million to write insurance. After June 29, 1989, underwriting members approved prior to July 2, 1987, must maintain a minimum policyholder surplus of $1.75 million to write insurance. After December 30, 1989, all underwriting members, regardless of the date they were approved, must maintain a minimum policyholder surplus of $2 million to write insurance. Except for that portion of the paid-in capital and surplus which shall be maintained in a security fund of an exchange, the paid-in capital and surplus shall be invested by an underwriting member in a manner consistent with ss. 625.301-625.340. The portion of the paid-in capital and surplus in any security fund of an exchange shall be invested in a manner limited to investments for life insurance companies under the Florida insurance laws.
23. Limitations on coverage written.—
a. Limit of risk.—No underwriting member shall expose itself to any loss on any one risk in an amount exceeding 10 percent of its surplus to policyholders. Any risk or portion of any risk which shall have been reinsured in an assuming reinsurer authorized or approved to do such business in this state shall be deducted in determining the limitation of risk prescribed in this section.
b. Restrictions on premiums written.—If the office has reason to believe that the underwriting member’s ratio of actual or projected annual gross written premiums to policyholder surplus exceeds 8 to 1 or the underwriting member’s ratio of actual or projected annual net premiums to policyholder surplus exceeds 4 to 1, the office may establish maximum gross or net annual premiums to be written by the underwriting member consistent with maintaining the ratios specified in this sub-subparagraph.
(I) Projected annual net or gross premiums shall be based on the actual writings to date for the underwriting member’s current calendar year, its writings for the previous calendar year, or both. Ratios shall be computed on an annualized basis.
(II) For purposes of this sub-subparagraph, the term “gross written premiums” means direct premiums written and reinsurance assumed.
c. Surplus as to policyholders.—For the purpose of determining the limitation on coverage written, surplus as to policyholders shall be deemed to include any voluntary reserves, or any part thereof, which are not required by or pursuant to law and shall be determined from the last sworn statement of such underwriting member with the office, or by the last report or examination filed by the office, whichever is more recent at the time of assumption of such risk.
24. Unearned premium reserves.—An underwriting member must at all times maintain an unearned premium reserve equal to 50 percent of the net written premiums of the subscribers on policies having 1 year or less to run, and pro rata on those for longer periods, except that all premiums on any marine or transportation insurance trip risk shall be deemed unearned until the trip is terminated. For the purpose of this subparagraph, the term “net written premiums” means the premium payments made by subscribers plus the premiums due from subscribers, after deducting the amounts specifically provided in the subscribers’ agreements for expenses, including reinsurance costs and fees paid to the attorney in fact, provided that the power of attorney agreement contains an explicit provision requiring the attorney in fact to refund any unearned subscribers fees on a pro-rata basis for canceled policies. If there is no such provision, the unearned premium reserve shall be calculated without any adjustment for fees paid to the attorney in fact. If the unearned premium reserves at any time do not amount to $100,000, there shall be maintained on deposit at the exchange at all times additional funds in cash or eligible securities which, together with the unearned premium reserves, equal $100,000. In calculating the foregoing reserves, the amount of the attorney’s bond, as filed with the office and as required by s. 629.121, shall be included in such reserves. If at any time the unearned premium reserves are less than the foregoing requirements, the subscribers, or the attorney in fact, shall advance funds to make up the deficiency. Such advances shall only be repaid out of the surplus of the exchange and only after receiving written approval from the office.
25. Loss reserves.—All underwriting members of an exchange shall maintain loss reserves, including a reserve for incurred but not reported claims. The reserves shall be subject to review by the office, and, if loss experience shows that an underwriting member’s loss reserves are inadequate, the office shall require the underwriting member to maintain loss reserves in such additional amount as is needed to make them adequate.
26. Distribution of profits.—An underwriting member shall not distribute any profits in the form of cash or other assets to owners except out of that part of its available and accumulated surplus funds which is derived from realized net operating profits on its business and realized capital gains. In any one year such payments to owners shall not exceed 30 percent of such surplus as of December 31 of the immediately preceding year, unless otherwise approved by the office. No distribution of profits shall be made that would render an underwriting member either impaired or insolvent.
27. Stock dividends.—A stock dividend may be paid by an underwriting member out of any available surplus funds in excess of the aggregate amount of surplus advanced to the underwriting member under subparagraph 29.
28. Dividends from earned surplus.—A dividend otherwise lawful may be payable out of an underwriting member’s earned surplus even though the total surplus of the underwriting member is then less than the aggregate of its past contributed surplus resulting from issuance of its capital stock at a price in excess of the par value thereof.
29. Borrowing of money by underwriting members.—
a. An underwriting member may borrow money to defray the expenses of its organization, provide it with surplus funds, or for any purpose of its business, upon a written agreement that such money is required to be repaid only out of the underwriting member’s surplus in excess of that stipulated in such agreement. The agreement may provide for interest not exceeding 15 percent simple interest per annum. The interest shall or shall not constitute a liability of the underwriting member as to its funds other than such excess of surplus, as stipulated in the agreement. No commission or promotion expense shall be paid in connection with any such loan. The use of any surplus note and any repayments thereof shall be subject to the approval of the office.
b. Money so borrowed, together with any interest thereon if so stipulated in the agreement, shall not form a part of the underwriting member’s legal liabilities except as to its surplus in excess of the amount thereof stipulated in the agreement, nor be the basis of any setoff; but until repayment, financial statements filed or published by an underwriting member shall show as a footnote thereto the amount thereof then unpaid, together with any interest thereon accrued but unpaid.
30. Liquidation, rehabilitation, and restrictions.—The office, upon a showing that a member or associate broker of an exchange has met one or more of the grounds contained in part I of chapter 631, may restrict sales by type of risk, policy or contract limits, premium levels, or policy or contract provisions; increase surplus or capital requirements of underwriting members; issue cease and desist orders; suspend or restrict a member’s or associate broker’s right to transact business; place an underwriting member under conservatorship or rehabilitation; or seek an order of liquidation as authorized by part I of chapter 631.
31. Prohibited conduct.—The following acts by a member, associate broker, or affiliated person shall constitute prohibited conduct:
a. Fraud.
b. Fraudulent or dishonest acts committed by a member or associate broker prior to admission to an exchange, if the facts and circumstances were not disclosed to the office upon application to become a member or associate broker.
c. Conduct detrimental to the welfare of an exchange.
d. Unethical or improper practices or conduct, inconsistent with just and equitable principles of trade as set forth in, but not limited to, ss. 626.951-626.9641 and 626.973.
e. Failure to use due diligence to ascertain the insurance needs of a client or a principal.
f. Misstatements made under oath or upon an application for membership on an exchange.
g. Failure to testify or produce documents when requested by the office.
h. Willful violation of any law of this state.
i. Failure of an officer or principal to testify under oath concerning a member, associate broker, or other person’s affairs as they relate to the operation of an exchange.
j. Violation of the constitution and bylaws of the exchange.
32. Penalties for participating in prohibited conduct.—
a. The office may order the suspension of further transaction of business on the exchange of any member or associate broker found to have engaged in prohibited conduct. In addition, any member or associate broker found to have engaged in prohibited conduct may be subject to reprimand, censure, and/or a fine not exceeding $25,000 imposed by the office.
b. Any member which has an affiliated person who is found to have engaged in prohibited conduct shall be subject to involuntary withdrawal or in addition thereto may be subject to suspension, reprimand, censure, and/or a fine not exceeding $25,000.
33. Reduction of penalties.—Any suspension, reprimand, censure, or fine may be remitted or reduced by the office on such terms and conditions as are deemed fair and equitable.
34. Other offenses.—Any member or associate broker that is suspended shall be deprived, during the period of suspension, of all rights and privileges of a member or of an associate broker and may be proceeded against by the office for any offense committed either before or after the date of suspension.
35. Reinstatement.—Any member or associate broker that is suspended may be reinstated at any time on such terms and conditions as the office may specify.
36. Remittance of fines.—Fines imposed under this section shall be remitted to the office and shall be paid into the Insurance Regulatory Trust Fund.
37. Failure to pay fines.—When a member or associate broker has failed to pay a fine for 15 days after it becomes payable, such member or associate broker shall be suspended, unless the office has granted an extension of time to pay such fine.
38. Changes in ownership or assets.—In the event of a major change in the ownership or a major change in the assets of an underwriting member, the underwriting member shall report such change in writing to the office within 30 days of the effective date thereof. The report shall set forth the details of the change. Any change in ownership or assets of more than 5 percent shall be considered a major change.
39. Retaliation.—
a. When by or pursuant to the laws of any other state or foreign country any taxes, licenses, or other fees, in the aggregate, and any fines, penalties, deposit requirements, or other material obligations, prohibitions, or restrictions are or would be imposed upon an exchange or upon the agents or representatives of such exchange which are in excess of such taxes, licenses, and other fees, in the aggregate, or which are in excess of such fines, penalties, deposit requirements, or other obligations, prohibitions, or restrictions directly imposed upon similar exchanges or upon the agents or representatives of such exchanges of such other state or country under the statutes of this state, so long as such laws of such other state or country continue in force or are so applied, the same taxes, licenses, and other fees, in the aggregate, or fines, penalties, deposit requirements, or other material obligations, prohibitions, or restrictions of whatever kind shall be imposed by the office upon the exchanges, or upon the agents or representatives of such exchanges, of such other state or country doing business or seeking to do business in this state.
b. Any tax, license, or other obligation imposed by any city, county, or other political subdivision or agency of a state, jurisdiction, or foreign country on an exchange, or on the agents or representatives on an exchange, shall be deemed to be imposed by such state, jurisdiction, or foreign country within the meaning of sub-subparagraph a.
40. Agents.—
a. Agents as defined in ss. 626.015 and 626.914 who are broker members or associate broker members of an exchange shall be allowed only to place on an exchange the same kind or kinds of business that the agent is licensed to place pursuant to Florida law. Direct Florida business as defined in s. 626.916 or s. 626.917 shall be written through a broker member who is a surplus lines agent as defined in s. 626.914. The activities of each broker member or associate broker with regard to an exchange shall be subject to all applicable provisions of the insurance laws of this state, and all such activities shall constitute transactions under his or her license as an insurance agent for purposes of the Florida insurance law.
b. Premium payments and other requirements.—If an underwriting member has assumed the risk as to a surplus lines coverage and if the premium therefor has been received by the surplus lines agent who placed such insurance, then in all questions thereafter arising under the coverage as between the underwriting member and the insured, the underwriting member shall be deemed to have received the premium due to it for such coverage; and the underwriting member shall be liable to the insured as to losses covered by such insurance, and for unearned premiums which may become payable to the insured upon cancellation of such insurance, whether or not in fact the surplus lines agent is indebted to the underwriting member with respect to such insurance or for any other cause.
41. Improperly issued contracts, riders, and endorsements.—
a. Any insurance policy, rider, or endorsement issued by an underwriting member and otherwise valid which contains any condition or provision not in compliance with the requirements of this section shall not be thereby rendered invalid, except as provided in s. 627.415, but shall be construed and applied in accordance with such conditions and provisions as would have applied had such policy, rider, or endorsement been in full compliance with this section. In the event an underwriting member issues or delivers any policy for an amount which exceeds any limitations otherwise provided in this section, the underwriting member shall be liable to the insured or his or her beneficiary for the full amount stated in the policy in addition to any other penalties that may be imposed.
b. Any insurance contract delivered or issued for delivery in this state governing a subject or subjects of insurance resident, located, or to be performed in this state which, pursuant to the provisions of this section, the underwriting member may not lawfully insure under such a contract shall be cancelable at any time by the underwriting member, any provision of the contract to the contrary notwithstanding; and the underwriting member shall promptly cancel the contract in accordance with the request of the office therefor. No such illegality or cancellation shall be deemed to relieve the underwriting syndicate of any liability incurred by it under the contract while in force or to prohibit the underwriting syndicate from retaining the pro rata earned premium thereon. This provision does not relieve the underwriting syndicate from any penalty otherwise incurred by the underwriting syndicate.
42. Satisfaction of judgments.—
a. Every judgment or decree for the recovery of money heretofore or hereafter entered in any court of competent jurisdiction against any underwriting member shall be fully satisfied within 60 days from and after the entry thereof or, in the case of an appeal from such judgment or decree, within 60 days from and after the affirmance of the judgment or decree by the appellate court.
b. If the judgment or decree is not satisfied as required under sub-subparagraph a., and proof of such failure to satisfy is made by filing with the office a certified transcript of the docket of the judgment or the decree together with a certificate by the clerk of the court wherein the judgment or decree remains unsatisfied, in whole or in part, after the time provided in sub-subparagraph a., the office shall forthwith prohibit the underwriting member from transacting business. The office shall not permit such underwriting member to write any new business until the judgment or decree is wholly paid and satisfied and proof thereof is filed with the office under the official certificate of the clerk of the court wherein the judgment was recovered, showing that the judgment or decree is satisfied of record, and until the expenses and fees incurred in the case are also paid by the underwriting syndicate.
43. Tender and exchange offers.—No person shall conclude a tender offer or an exchange offer or otherwise acquire 5 percent or more of the outstanding voting securities of an underwriting member or controlling company or purchase 5 percent or more of the ownership of an underwriting member or controlling company unless such person has filed with, and obtained the approval of, the office and sent to such underwriting member a statement setting forth:
a. The identity of, and background information on, each person by whom, or on whose behalf, the acquisition is to be made; and, if the acquisition is to be made by or on behalf of a corporation, association, or trust, the identity of and background information on each director, officer, trustee, or other natural person performing duties similar to those of a director, officer, or trustee for the corporation, association, or trust.
b. The source and amount of the funds or other consideration used, or to be used, in making the acquisition.
c. Any plans or proposals which such person may have to liquidate such member, to sell its assets, or to merge or consolidate it.
d. The percentage of ownership which such person proposes to acquire and the terms of the offer or exchange, as the case may be.
e. Information as to any contracts, arrangements, or understandings with any party with respect to any securities of such member or controlling company, including, but not limited to, information relating to the transfer of any securities, option arrangements, or puts or calls or the giving or withholding of proxies, naming the party with whom such contract, arrangements, or understandings have been entered and giving the details thereof.
f. The office may disapprove any acquisition subject to the provisions of this subparagraph by any person or any affiliated person of such person who:
(I) Willfully violates this subparagraph;
(II) In violation of an order of the office issued pursuant to sub-subparagraph j., fails to divest himself or herself of any stock obtained in violation of this subparagraph, or fails to divest himself or herself of any direct or indirect control of such stock, within 25 days after such order; or
(III) In violation of an order issued by the office pursuant to sub-subparagraph j., acquires additional stock of the underwriting member or controlling company, or direct or indirect control of such stock, without complying with this subparagraph.
g. The person or persons filing the statement required by this subparagraph have the burden of proof. The office shall approve any such acquisition if it finds, on the basis of the record made during any proceeding or on the basis of the filed statement if no proceeding is conducted, that:
(I) Upon completion of the acquisition, the underwriting member will be able to satisfy the requirements for the approval to write the line or lines of insurance for which it is presently approved;
(II) The financial condition of the acquiring person or persons will not jeopardize the financial stability of the underwriting member or prejudice the interests of its policyholders or the public;
(III) Any plan or proposal which the acquiring person has, or acquiring persons have, made:
(A) To liquidate the insurer, sell its assets, or merge or consolidate it with any person, or to make any other major change in its business or corporate structure or management; or
(B) To liquidate any controlling company, sell its assets, or merge or consolidate it with any person, or to make any major change in its business or corporate structure or management which would have an effect upon the underwriting member
is fair and free of prejudice to the policyholders of the underwriting member or to the public;
(IV) The competence, experience, and integrity of those persons who will control directly or indirectly the operation of the underwriting member indicate that the acquisition is in the best interest of the policyholders of the underwriting member and in the public interest;
(V) The natural persons for whom background information is required to be furnished pursuant to this subparagraph have such backgrounds as to indicate that it is in the best interests of the policyholders of the underwriting member, and in the public interest, to permit such persons to exercise control over such underwriting member;
(VI) The officers and directors to be employed after the acquisition have sufficient insurance experience and ability to assure reasonable promise of successful operation;
(VII) The management of the underwriting member after the acquisition will be competent and trustworthy and will possess sufficient managerial experience so as to make the proposed operation of the underwriting member not hazardous to the insurance-buying public;
(VIII) The management of the underwriting member after the acquisition will not include any person who has directly or indirectly through ownership, control, reinsurance transactions, or other insurance or business relations unlawfully manipulated the assets, accounts, finances, or books of any insurer or underwriting member or otherwise acted in bad faith with respect thereto;
(IX) The acquisition is not likely to be hazardous or prejudicial to the underwriting member’s policyholders or the public; and
(X) The effect of the acquisition of control would not substantially lessen competition in insurance in this state or would not tend to create a monopoly therein.
h. No vote by the stockholder of record, or by any other person, of any security acquired in contravention of the provisions of this subparagraph is valid. Any acquisition of any security contrary to the provisions of this subparagraph is void. Upon the petition of the underwriting member or controlling company, the circuit court for the county in which the principal office of such underwriting member is located may, without limiting the generality of its authority, order the issuance or entry of an injunction or other order to enforce the provisions of this subparagraph. There shall be a private right of action in favor of the underwriting member or controlling company to enforce the provisions of this subparagraph. No demand upon the office that it perform its functions shall be required as a prerequisite to any suit by the underwriting member or controlling company against any other person, and in no case shall the office be deemed a necessary party to any action by such underwriting member or controlling company to enforce the provisions of this subparagraph. Any person who makes or proposes an acquisition requiring the filing of a statement pursuant to this subparagraph, or who files such a statement, shall be deemed to have thereby designated the Chief Financial Officer as such person’s agent for service of process under this subparagraph and shall thereby be deemed to have submitted himself or herself to the administrative jurisdiction of the office and to the jurisdiction of the circuit court.
i. Any approval by the office under this subparagraph does not constitute a recommendation by the office for an acquisition, tender offer, or exchange offer. It is unlawful for a person to represent that the office’s approval constitutes a recommendation. A person who violates the provisions of this sub-subparagraph is guilty of a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084. The statute-of-limitations period for the prosecution of an offense committed under this sub-subparagraph is 5 years.
j. Upon notification to the office by the underwriting member or a controlling company that any person or any affiliated person of such person has acquired 5 percent or more of the outstanding voting securities of the underwriting member or controlling company without complying with the provisions of this subparagraph, the office shall order that the person and any affiliated person of such person cease acquisition of any further securities of the underwriting member or controlling company; however, the person or any affiliated person of such person may request a proceeding, which proceeding shall be convened within 7 days after the rendering of the order for the sole purpose of determining whether the person, individually or in connection with any affiliated person of such person, has acquired 5 percent or more of the outstanding voting securities of an underwriting member or controlling company. Upon the failure of the person or affiliated person to request a hearing within 7 days, or upon a determination at a hearing convened pursuant to this sub-subparagraph that the person or affiliated person has acquired voting securities of an underwriting member or controlling company in violation of this subparagraph, the office may order the person and affiliated person to divest themselves of any voting securities so acquired.
k.(I) The office shall, if necessary to protect the public interest, suspend or revoke the certificate of authority of any underwriting member or controlling company:
(A) The control of which is acquired in violation of this subparagraph;
(B) That is controlled, directly or indirectly, by any person or any affiliated person of such person who, in violation of this subparagraph, has obtained control of an underwriting member or controlling company; or
(C) That is controlled, directly or indirectly, by any person who, directly or indirectly, controls any other person who, in violation of this subparagraph, acquires control of an underwriting member or controlling company.
(II) If any underwriting member is subject to suspension or revocation pursuant to sub-sub-subparagraph (I), the underwriting member shall be deemed to be in such condition, or to be using or to have been subject to such methods or practices in the conduct of its business, as to render its further transaction of insurance presently or prospectively hazardous to its policyholders, creditors, or stockholders or to the public.
l.(I) For the purpose of this sub-sub-subparagraph, the term “affiliated person” of another person means:
(A) The spouse of such other person;
(B) The parents of such other person and their lineal descendants and the parents of such other person’s spouse and their lineal descendants;
(C) Any person who directly or indirectly owns or controls, or holds with power to vote, 5 percent or more of the outstanding voting securities of such other person;
(D) Any person 5 percent or more of the outstanding voting securities of which are directly or indirectly owned or controlled, or held with power to vote, by such other person;
(E) Any person or group of persons who directly or indirectly control, are controlled by, or are under common control with such other person; or any officer, director, partner, copartner, or employee of such other person;
(F) If such other person is an investment company, any investment adviser of such company or any member of an advisory board of such company;
(G) If such other person is an unincorporated investment company not having a board of directors, the depositor of such company; or
(H) Any person who has entered into an agreement, written or unwritten, to act in concert with such other person in acquiring or limiting the disposition of securities of an underwriting member or controlling company.
(II) For the purposes of this section, the term “controlling company” means any corporation, trust, or association owning, directly or indirectly, 25 percent or more of the voting securities of one or more underwriting members.
m. The commission may adopt, amend, or repeal rules that are necessary to implement the provisions of this subparagraph, pursuant to chapter 120.
44. Background information.—The information as to the background and identity of each person about whom information is required to be furnished pursuant to sub-subparagraph 43.a. shall include, but shall not be limited to:
a. Such person’s occupations, positions of employment, and offices held during the past 10 years.
b. The principal business and address of any business, corporation, or other organization in which each such office was held or in which such occupation or position of employment was carried on.
c. Whether, at any time during such 10-year period, such person was convicted of any crime other than a traffic violation.
d. Whether, during such 10-year period, such person has been the subject of any proceeding for the revocation of any license and, if so, the nature of such proceeding and the disposition thereof.
e. Whether, during such 10-year period, such person has been the subject of any proceeding under the federal 1Bankruptcy Act or whether, during such 10-year period, any corporation, partnership, firm, trust, or association in which such person was a director, officer, trustee, partner, or other official has been subject to any such proceeding, either during the time in which such person was a director, officer, trustee, partner, or other official, or within 12 months thereafter.
f. Whether, during such 10-year period, such person has been enjoined, either temporarily or permanently, by a court of competent jurisdiction from violating any federal or state law regulating the business of insurance, securities, or banking, or from carrying out any particular practice or practices in the course of the business of insurance, securities, or banking, together with details of any such event.
45. Security fund.—All underwriting members shall be members of the security fund of any exchange.
46. Underwriting member defined.—Whenever the term “underwriting member” is used in this subsection, it shall be construed to mean “underwriting syndicate.”
47. Offsets.—Any action, requirement, or constraint imposed by the office shall reduce or offset similar actions, requirements, or constraints of any exchange.
48. Restriction on member ownership.—
a. Investments existing prior to July 2, 1987.—The investment in any member by brokers, agents, and intermediaries transacting business on the exchange, and the investment in any such broker, agent, or intermediary by any member, directly or indirectly, shall in each case be limited in the aggregate to less than 20 percent of the total investment in such member, broker, agent, or intermediary, as the case may be. After December 31, 1987, the aggregate percent of the total investment in such member by any broker, agent, or intermediary and the aggregate percent of the total investment in any such broker, agent, or intermediary by any member, directly or indirectly, shall not exceed 15 percent. After June 30, 1988, such aggregate percent shall not exceed 10 percent and after December 31, 1988, such aggregate percent shall not exceed 5 percent.
b. Investments arising on or after July 2, 1987.—The investment in any underwriting member by brokers, agents, or intermediaries transacting business on the exchange, and the investment in any such broker, agent, or intermediary by any underwriting member, directly or indirectly, shall in each case be limited in the aggregate to less than 5 percent of the total investment in such underwriting member, broker, agent, or intermediary.
49. “Underwriting manager” defined.—“Underwriting manager” as used in this subparagraph includes any person, partnership, corporation, or organization providing any of the following services to underwriting members of the exchange:
a. Office management and allied services, including correspondence and secretarial services.
b. Accounting services, including bookkeeping and financial report preparation.
c. Investment and banking consultations and services.
d. Underwriting functions and services including the acceptance, rejection, placement, and marketing of risk.
50. Prohibition of underwriting manager investment.—Any direct or indirect investment in any underwriting manager by a broker member or any affiliated person of a broker member or any direct or indirect investment in a broker member by an underwriting manager or any affiliated person of an underwriting manager is prohibited. “Affiliated person” for purposes of this subparagraph is defined in subparagraph 43.
51. An underwriting member may not accept reinsurance on an assumed basis from an affiliate or a controlling company, nor may a broker member or management company place reinsurance from an affiliate or controlling company of theirs with an underwriting member. “Affiliate and controlling company” for purposes of this subparagraph is defined in subparagraph 43.
52. Premium defined.—“Premium” is the consideration for insurance, by whatever name called. Any “assessment” or any “membership,” “policy,” “survey,” “inspection,” “service” fee or charge or similar fee or charge in consideration for an insurance contract is deemed part of the premium.
53. Rules.—The commission shall adopt rules necessary for or as an aid to the effectuation of any provision of this section.
(7) The performance of the contractual obligations of the exchange or its members entered into pursuant to subsection (1) shall not be covered by any of the Florida state security or guaranty funds.
629.520 Authority of a limited reciprocal insurer.—The authority of any limited reciprocal insurer to accept new business or renewals shall not continue beyond October 1, 1992; however, such limited reciprocal insurer shall continue to service its obligations previously incurred or with the approval of the office, arrange for the transfer of these obligations to an authorized insurer. All power of the office with respect to limited reciprocal insurers shall continue undiminished. This section does not affect any other power of the office or any other function of the office.
629.525 Rulemaking authority.—The commission shall adopt, amend, or repeal rules pursuant to chapter 120 which are necessary to implement this chapter.
P. BARR, v. AMERICAN ASSOCIATION OF POLITICAL CONSULTANTS, INC., 140 S. Ct. 2335 (U.S. 2020)
. . . Payne, Deputy Attorney General, North Carolina, Department of Justice, Post Office Box 629, Raleigh, . . .
SEILA LAW LLC, v. CONSUMER FINANCIAL PROTECTION BUREAU, 140 S. Ct. 2183 (U.S. 2020)
. . . Id., at 628-629, 55 S.Ct. 869. No such powers or agencies exist. . . . Id., at 629, 55 S.Ct. 869.
About two decades later, an again-unanimous Court in Wiener v. . . . Id., at 355, 78 S.Ct. 1275 (quoting Humphrey's , 295 U.S., at 629, 55 S.Ct. 869 ). . . .
GE ENERGY POWER CONVERSION FRANCE SAS, CORP. SAS, v. OUTOKUMPU STAINLESS USA, LLC,, 140 S. Ct. 1637 (U.S. 2020)
. . . Korean Air Lines Co. , 516 U.S. 217, 226, 116 S.Ct. 629, 133 L.Ed.2d 596 (1996) ). . . . Id. , at 226, 116 S.Ct. 629. . . . Zicherman , 516 U.S. at 227, 116 S.Ct. 629. . . . postratification conduct" of the governments of contracting states, Zicherman , 516 U.S. at 227, 116 S.Ct. 629 . . .
UNITED STATES, v. SINENENG- SMITH, 140 S. Ct. 1575 (U.S. 2020)
. . . Y. , 385 U.S. 589, 87 S.Ct. 675, 17 L.Ed.2d 629 (1967). . . .
NEW YORK STATE RIFLE PISTOL ASSOCIATION, INC. v. CITY OF NEW YORK, NEW YORK,, 140 S. Ct. 1525 (U.S. 2020)
. . . Id. , at 577-605, 628-629, 128 S.Ct. 2783. . . . See 554 U.S. at 629-634, 128 S.Ct. 2783. . . .
RAMOS, v. LOUISIANA, 140 S. Ct. 1390 (U.S. 2020)
. . . S. 373, 379, 86 S.Ct. 1523, 16 L.Ed.2d 629 (1966).
See Art. III, § 2.
See J. . . . L. 629, 642 (2008).
P. R. Const., Art. . . .
L. STEWART, v. WILMINGTON SAVINGS FUND SOCIETY, 140 S. Ct. 935 (U.S. 2020)
. . . WILMINGTON SAVINGS FUND SOCIETY
No. 19-629
Supreme Court of the United States. . . .
ELHADY, v. H. KABLE,, 391 F. Supp. 3d 562 (E.D. Va. 2019)
BIRD, v. i DEPARTMENT OF HUMAN SERVICES DHS, R., 935 F.3d 738 (9th Cir. 2019)
. . . Servs., LLC , 629 F.3d 876, 893 (9th Cir. 2010) (quoting Leadsinger, Inc. v. . . .
R. PESCI, v. BUDZ, LLC, LLC,, 935 F.3d 1159 (11th Cir. 2019)
. . . North Carolina Prisoners' Labor Union, Inc. , 433 U.S. 119, 128, 97 S.Ct. 2532, 53 L.Ed.2d 629 (1977) . . .
CHAMBERLAIN GROUP, INC. v. TECHTRONIC INDUSTRIES CO. OWT ET Co., 935 F.3d 1341 (Fed. Cir. 2019)
. . . Bunzl USA, Inc. , 661 F.3d 629, 638 (Fed. Cir. 2011). . . .
IN RE J. BARIBEAU,, 603 B.R. 797 (Bankr. W.D. Tex. 2019)
. . . In re Benjamin Moore & Co. , 318 F.3d 626, 629 (5th Cir. 2002). . . . In re Benjamin Moore & Co. , 318 F.3d at 629. . . .
TURCO v. CITY OF ENGLEWOOD, NEW JERSEY,, 935 F.3d 155 (3rd Cir. 2019)
. . . Klein [Argued], Weiner Law Group, 629 Parsippany Road, P.O. . . .
SENNE v. KANSAS CITY ROYALS BASEBALL CORP. LLC LLC LP St. LLC LLC LLC LLC L. P. L. P. LLC LLC L. P. AZPB L. P. P LLC LLC LP LLP LLC LLC,, 934 F.3d 918 (9th Cir. 2019)
. . . Tac & C Energy, Inc. , 177 W.Va. 648, 355 S.E.2d 629 (1987), the West Virginia Supreme Court of Appeals . . .
PASSARO, Jr. v. VIRGINIA, 935 F.3d 243 (4th Cir. 2019)
. . . See generally D'Ambrosio , 809 S.E.2d at 629-30 (discussing issue preclusion under Virginia law). . . .
DEJORIA, v. MAGHREB PETROLEUM EXPLORATION, S. A., 935 F.3d 381 (5th Cir. 2019)
. . . United States , 372 F.2d 629, 633 (5th Cir. 1967) ("[L]ay testimony can be sufficient to satisfy [a party's . . .
PIZZUTO, Jr. v. BLADES,, 933 F.3d 1166 (9th Cir. 2019)
. . . See id. at 129 (citing Bancec , 462 U.S. at 629, 103 S.Ct. 2591 ). . . . and for most purposes, will not be regarded when to do so would work fraud or injustice." 462 U.S. at 629 . . . separate legal status would work a 'fraud or injustice.' " Id. at 128 (quoting Bancec , 462 U.S. at 629 . . .
REYES, v. FISCHER, J. X., 934 F.3d 97 (2nd Cir. 2019)
. . . Williams , 19 N.Y.3d 100, 104, 945 N.Y.S.2d 629, 968 N.E.2d 983 (2012) ("Such a defendant who is conditionally . . .
AGUA CALIENTE TRIBE OF CUPE O INDIANS OF PALA RESERVATION, v. SWEENEY, 932 F.3d 1207 (9th Cir. 2019)
. . . Ct. 786, 202 L.Ed.2d 629 (2019), to conclude that the Indian Reorganization Act's "expansive definition . . .
TEXAS, v. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION EEOC P. U. S., 933 F.3d 433 (5th Cir. 2019)
. . . Grant Co. , 345 U.S. 629, 632, 73 S.Ct. 894, 97 L.Ed. 1303 (1953) ("[V]oluntary cessation of allegedly . . .
UNITED STATES v. PRADO,, 933 F.3d 121 (2nd Cir. 2019)
VIRNETX INC. v. APPLE INC., 931 F.3d 1363 (Fed. Cir. 2019)
. . . Bunzl USA, Inc. , 661 F.3d 629, 639, 642-48 (Fed. Cir. 2011). . . . Wolf Bros. & Co. , 240 U.S. 251, 257, 36 S.Ct. 269, 60 L.Ed. 629 (1916) ); see also Major League Baseball . . . Bunzl USA, Inc. , 661 F.3d 629, 646 (Fed. Cir. 2011) ). . . . Bunzl USA, Inc. , 661 F.3d 629 (Fed. Cir. 2011) and Fresenius USA, Inc. v. . . . Wolf Bros. & Co. , 240 U.S. 251, 257, 36 S.Ct. 269, 60 L.Ed. 629 (1916) )). In Reece v. . . .
STEWARD HOLY FAMILY HOSPITAL, INC. v. MASSACHUSETTS NURSES ASSOCIATION,, 932 F.3d 14 (1st Cir. 2019)
STATE BY AND THROUGH TENNESSEE GENERAL ASSEMBLY, v. UNITED STATES DEPARTMENT OF STATE,, 931 F.3d 499 (6th Cir. 2019)
. . . Id. at 629. This appeal followed. . . .
WARNER, v. EXPERIAN INFORMATION SOLUTIONS, INC., 931 F.3d 917 (9th Cir. 2019)
. . . Ortiz , 484 U.S. 301, 304, 108 S.Ct. 586, 98 L.Ed.2d 629 (1988) (per curiam) ("The rule that only parties . . .
PEREZ, v. ABBOTT,, 390 F. Supp. 3d 803 (W.D. Tex. 2019)
. . . United States , 425 U.S. 130, 96 S.Ct. 1357, 47 L.Ed.2d 629 (1976). . . .
TENNESSEE GAS PIPELINE COMPANY, LLC v. PERMANENT EASEMENT FOR ACRES, PERMANENT OVERLAY EASEMENT FOR ACRES AND TEMPORARY EASEMENTS FOR ACRES IN MILFORD AND WESTFALL TOWNSHIPS, PIKE COUNTY, PENNSYLVANIA, TAX PARCEL NUMBERS a c o L. P., 931 F.3d 237 (3rd Cir. 2019)
. . . Id. at 629-30. . . . Certain Parcels of Land, 144 F.2d at 629. . . . Certain Parcels of Land in Phila. , 144 F.2d at 629 (emphasis added). . . .
KERR, V. M. E. K. W. B. C. Ph. D. A. L. M. D. L. Re- E. a k a J. L. a k a L. P. W. Re- K. C. Re- J. Re- IJ G. v. POLIS,, 930 F.3d 1190 (10th Cir. 2019)
. . . Id. at 629. . . . Id. at 629 ; see also id. at 630 ("[O]ur holding simply allows a political subdivision to sue its parent . . . Id. at 629. . . . schools,' " of which the school-district plaintiffs were "direct political descendants." 161 F.3d at 629 . . . that the plaintiffs were " 'essentially' the beneficiaries of the federal trust at issue." 161 F.3d at 629 . . .
CABRERA, v. P. BARR,, 930 F.3d 627 (4th Cir. 2019)
. . . Holder , 629 F.3d 440, 448-49 (4th Cir. 2011) (holding that an alien exhausted remedies by raising a . . .
MARINELARENA, v. P. BARR,, 930 F.3d 1039 (9th Cir. 2019)
. . . Ct. 865, 202 L.Ed.2d 629 (2019) ; Gutierrez v. . . . Ct. 865, 202 L.Ed.2d 629 (2019).
See, e.g. , Salem v. . . .
UNITED STATES v. CORTEZ, a k a S. T. J. D J. M. F. Jr. P. A. W. H. D. A., 930 F.3d 350 (4th Cir. 2019)
. . . Supp. 3d at 629. . . . Supp. 3d at 629 (quoting Garcia v. . . . Supp. 3d at 629 (quoting Garcia , 786 F.3d at 797 n.2 (Berzon, J., concurring)); see also Ortiz-Santiago . . .
GIBSON, Ca v. SCE GROUP, INC. d b a d b a s,, 391 F. Supp. 3d 228 (S.D.N.Y. 2019)
. . . Hellman , 284 A.D.2d 113, 726 N.Y.S.2d 629 (2001) (finding that plaintiff's complaint was deficient because . . .
KNIGHT CAPITAL PARTNERS CORPORATION, v. HENKEL AG COMPANY, KGAA,, 930 F.3d 775 (6th Cir. 2019)
. . . Supp. 2d 629 (M.D. Tenn. 2006), Coloplast Corp., v. Am. Breast Care, L.P. , 209 F. . . .
WESTERN WATERSHEDS PROJECT, v. BERNHARDT,, 392 F. Supp. 3d 1225 (D. Or. 2019)
. . . BLM , 629 F. Supp. 2d 951, 970 (D. . . .
ALARM DETECTION SYSTEMS, INCORPORATED, v. VILLAGE OF SCHAUMBURG, a, 930 F.3d 812 (7th Cir. 2019)
IN RE SPIECH FARMS, LLC,, 603 B.R. 395 (Bankr. W.D. Mich. 2019)
. . . (In re Elder-Beerman Stores Corp.) , 197 B.R. 629, 633 (Bankr. S.D. . . .
KHAN, v. UNITED STATES, 928 F.3d 1264 (11th Cir. 2019)
. . . Smith , 219 F.3d 620, 629-30 (7th Cir. 2000) (holding that counsel was ineffective for waiting until . . .
WILLIAMS Jr. v. BIG PICTURE LOANS, LLC LLC, Jr., 929 F.3d 170 (4th Cir. 2019)
. . . Breakthrough , 629 F.3d at 1191. . . . Breakthrough , 629 F.3d at 1195. . . . See Breakthrough , 629 F.3d at 1195.
C. . . . Breakthrough , 629 F.3d at 1187-88. . . . Breakthrough , 629 F.3d at 1195. . . .
BROWN, v. MAXWELL, v. L. M. v. L. v., 929 F.3d 41 (2nd Cir. 2019)
. . . Superior Court of California, Riverside Cty. , 464 U.S. 501, 510, 104 S.Ct. 819, 78 L.Ed.2d 629 (1984 . . .
A. ZADEH v. ROBINSON,, 928 F.3d 457 (5th Cir. 2019)
. . . State Bd. of Dental Exam'rs , 204 F.3d 629, 632 (5th Cir. 2000). . . . Dayton Christian Schs., Inc. , 477 U.S. 619, 629, 106 S.Ct. 2718, 91 L.Ed.2d 512 (1986).
U.S. . . . Bd. of Dental Exam'rs , 204 F.3d 629, 639 (5th Cir. 2000).
Id. at 639.
Id. . . .
R. BROWN, E. R. A. v. COLLIER, R. R. A. v., 929 F.3d 218 (5th Cir. 2019)
. . . Id. at 629-30. . . . Supp. 3d at 629.
Parties Joint Ex. 15.
Parties Joint Ex. 16.
Parties Joint Ex. 14. . . .
UNITED STATES v. JONES, v., 930 F.3d 366 (5th Cir. 2019)
. . . commonsense assessment of all the circumstances surrounding the extrinsic offense.' " Juarez , 866 F.3d at 629 . . .
CHABAD LUBAVITCH OF THE QUAD CITIES, INC. v. CITY OF BETTENDORF, IOWA, P., 389 F. Supp. 3d 590 (S.D. Iowa 2019)
. . . Twp. of Northville , 629 F.3d 533, 537-38 (6th Cir. 2010) ; Grace Cmty. Church v. . . . The finality requirement applies to related free exercise claims, see Miles Christi , 629 F.3d at 536 . . . Iowa Code § 414.11 ; see Murphy , 402 F.3d at 351 ; Miles Christi , 629 F.3d at 542. . . .
IN RE M. THORPE,, 602 B.R. 906 (Bankr. E.D. Pa. 2019)
. . . State, 629 So. 2d 238, 241 (Fla. 3d DCA 1993) (holding that even in light of the admission of unduly . . .
FESSENDEN, v. RELIANCE STANDARD LIFE INS. CO. USA,, 927 F.3d 998 (7th Cir. 2019)
. . . See Gilbertson , 328 F.3d at 634-35 ; see id. at 629 n.3, 631 n.4. . . .
ESTATE OF OSUNA, v. COUNTY OF STANISLAUS, s, 392 F. Supp. 3d 1162 (E.D. Cal. 2019)
. . . Civiletti , 629 F.2d 637, 642 (9th Cir. 1980) ). . . . discovery would not uncover the identities, or that the complaint would be dismissed on other grounds.
629 . . . County of San Diego , 57 Cal. 4th 622, 629, 160 Cal.Rptr.3d 684, 305 P.3d 252 (2013) (brackets omitted . . .
DOMINIC W. ON BEHALF OF SOFIA W. v. NORTHERN TRUST COMPANY EMPLOYEE WELFARE BENEFIT PLAN d b a, 392 F. Supp. 3d 907 (N.D. Ill. 2019)
. . . Long Term Disability Plan , 422 F.3d 621, 629 (7th Cir. 2005) (internal quotation mark omitted). . . .
WORLD WATER WORKS HOLDINGS, INC. v. CONTINENTAL CASUALTY CO. W. Jr. Co. v., 392 F. Supp. 3d 923 (N.D. Ill. 2019)
DIVA LIMOUSINE, LTD. v. UBER TECHNOLOGIES, INC., 392 F. Supp. 3d 1074 (N.D. Cal. 2019)
. . . Ass'n , 629 F.3d 992, 998-99 (9th Cir. 2010) ("It is appropriate to take judicial notice of this information . . .
AMERICAN LEGION, v. AMERICAN HUMANIST ASSOCIATION, v., 139 S. Ct. 2067 (U.S. 2019)
. . . San Diego , 629 F.3d 1099, 1116 (C.A.9 2011). . . . San Diego , 629 F.3d 1099, 1102 (C.A.9 2011) ("Resurrection of this Cross as a war memorial does not . . .
IN RE L. FULTON, In S. In In, 926 F.3d 916 (7th Cir. 2019)
. . . In re Lisse , 921 F.3d 629, 639 (7th Cir. 2019) ("The basic premise [of Chapter 13] is to facilitate . . .
GIGUERE, Zu- v. PORT RESOURCES INC., 927 F.3d 43 (1st Cir. 2019)