The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Fiscal Policy
BILL: CS/CS/SB 1398
INTRODUCER: Appropriations Committee on Agriculture, Environment, and General Government;
Banking and Insurance Committee; and Senator DiCeglie
SUBJECT: Consumer Protection
DATE: April 24, 2023 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Moody Knudson BI Fav/CS
2. Sanders Betta AEG Fav/CS
3. Moody Yeatman FP Favorable
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 1398 revises consumer protection laws, including, but not limited to, those related to
public adjusters, annuity investments, and mortgage loan regulations.
As it relates to adjusters, the bill:
 Provides adjusting firms must comply with the same requirements an insurance agency must
comply with regarding firm names, and repeals the grace period for using the terms
“Medicare” or “Medicaid” that expires on July 1, 2023;
 Removes a provision providing public adjuster responsibility and a provision setting the
commission rate that may be charged on the difference between the settlement offer and the
actual settlement amount;
 Modifies a public adjuster’s compensation to no more than one percent, rather than up
to $1,000, of payments or commitments to pay a claim made within a specified time that is
equal to or greater than the policy limit;
 Prohibits a public adjuster from charging any percentage of the amount of insurance claim
payments or settlements paid to the insured where the payment or written agreement to pay
occurs before the public adjuster contract is executed;
 When entering into public adjuster services after July 1, 2023, prohibits a public adjuster
from collecting a fee for services or contracting with third parties on behalf of the named
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insured unless certain conditions are met, and requires a public adjuster to pay third party
fees in specified circumstances;
 Allows the insured or claimant to cancel a contract with a public adjuster that was entered
into based on events that are the subject to a state of emergency for up to 30 days after the
loss or 10 days after the date on which the contract is executed, whichever is longer;
 Specifies an insured may cancel a public adjuster’s contract without penalty or obligation if a
written estimate is not received within 60 days unless the failure to provide the estimate is
caused by factors beyond the control of the public adjuster and provides that the cancellation
period ceases on the date the estimate is provided, and requires the contract to provide notice
of such right;
 Provides that a public adjuster who contracts with anyone other than the named insured must
pay the fees of the third party and such charges may not be charged back to the named
insured;
 Requires public adjusters to pay third party fees if the public adjuster does not first obtain the
insured’s written consent;
 Clarifies the exemption which allows attorneys to participate in the adjustment of any claim
without an adjuster’s license does not apply to certain staff of an attorney or a law firm;
 Requires an independent or public adjuster to post their license in the principal place of
business or have it in the public adjuster’s actual possession in certain circumstances;
 Specifies independent adjusters and public adjusters must retain certain records for five years
and requires such records must be available for inspection by the Department of Financial
Services (“Department”) within specified times;
 Amends public adjuster contract requirements to include certain contact details and
compensation; amends the font type with respect to certain provisions in the contract and
proof-of-loss statement; and requires initials of the insured to be on each page that does not
contain the insured’s signature;
 Provides that a public adjuster must provide the insured with an unaltered copy of the
contract at the time of execution and a copy provided to the insurer or insurer’s
representative within seven days, after execution;
 Provides a public adjuster may not receive compensation for services before the date the
insured receives an unaltered copy of the executed contract or the date the contract is
submitted to the insurer, and requires the public adjuster retain proof of receipt by the insured
and proof of submission to the insurer for not less than five years;
 Requires the public adjuster to provide to and obtain a signed separate disclosure statement
from the insured with specified information;
 Provides that a public adjuster contract which does not comply with s. 626.8796, F.S.,
regarding public adjuster contracts, is invalid and unenforceable;
 Authorizes the Department to have rulemaking authority to implement s. 626.8796, F.S.; and
 Amends the definition of “public adjuster.”
As it relates to annuity investments, the bill:
 Amends s. 627.4554, F.S., to adopt, with minimal exceptions, the National Association of
Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation
(2020);
 Broadens the scope of the section to apply to any sale or recommendation of an annuity;
BILL: CS/CS/SB 1398 Page 3
 Amends the duties of insurers and agents to require the agent to act in the consumer’s best
interest which includes satisfying obligations regarding care, disclosure, conflict of interest,
and recordkeeping;
 Specifies transactions for which an agent does not have an obligation to a consumer;
 Revises an insurer’s obligation to establish a supervision system to provide additional
consumer protections;
 Prohibits insurers from dissuading, or attempting to dissuade, a consumer from providing
truthful information, filing complaints, or cooperating with a complaint investigation;
 Provides any sale in compliance with comparable standards satisfies the requirements of the
section, and provides this provision does not limit an insurer’s care obligation; and
 Provides for training requirements for agents who engage in the sale of annuities;
As it relates to other insurance provisions, the bill:
 Provides it is an unfair method of trade for an agent to fail to disclose a third party that
receives certain remuneration for specified marketing practices for policy of health
insurance;
 Shortens the timeframe in which the hurricane deductible on an insurance policy can be
applied to a claim; amends the definition of “hurricane;” and defines the term “hurricane
deductible;”
 Reduces the underwriting timeframe on property insurance from nine days to 60 days;
 Provides Citizens Property Insurance Corporation (“Citizens”) may cancel certain policies
within 90 days or less for misrepresentation or failure to comply with underwriting
requirements established before the effectuation of coverage; and
 Provides notice of claims made under s. 627.714, F.S., must be given to the insurer in
accordance with the terms of the policy within three years of the date of loss.
As it relates to mortgage loan regulations, the bill:
 Expands the options of where a mortgage lender may transact business;
 Specifies a remote location must be operated under the full charge, control, and supervision
of the licensee;
 Provides when a licensee may allow loan originators to work from a remote location; and
 Amends the definition of “branch office” and defines the term “remote location.”
As it relates to money services businesses, the bill:
 Specifies a licensee may not cash corporate checks where the aggregate face amount of all
corporate checks cashed for each payee exceeds 200 percent of the payee’s workers’
compensation policy coverage amount during the same policy coverage period; and
 Provides a person who violates this provision commits a felony of the third degree.
As it relates to crowd-funding campaigns, the bill:
 Requires organizers of crowd-funding campaigns related to disasters to take certain steps
relating to collecting and retaining certain information, disclosing specified information,
cooperating with law enforcement, and displaying and directing donors to certain fundraisers;
 Requires an organizer to attest to the accuracy and completeness of specified information;
 Defines several terms, including “crowd-funding campaign,” “crowd-funding platform,”
“disaster,” and “organizer.”
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As it relates to distributed energy generation platform, the bill:
 Adds three disclosures related to the sale or lease of a distributed energy generation system
which must be separate from the agreement between the seller or lessor and buyer and lessee;
and
 Requires a sale or lease agreement to include the customer contact center phone number for
the Department of Business and Professional Regulation.
The bill provides motor vehicle service agreements that maintain a contractual liability insurance
policy in lieu of maintaining unearned premium reserve may have a policy with certain terms.
The bill revises the definition of the term “manufacturer” for purposes of part III of ch. 634, F.S.,
to exclude a business that maintains outstanding debt obligations, if any, rated in the top four
rating categories by a recognized rating service, and makes conforming changes to
s. 634.406, F.S.
The bill creates a new third degree felony, which is punishable by a term of imprisonment not to
exceed five years,1 a fine not to exceed $5,000,2 or in the case of a habitual offender, a term of
imprisonment not to exceed ten to fifteen years.3 The new third degree felony may increase state
court revenues and expenditures. In addition, the bill may have an indeterminate negative state
prison bed impact. The Criminal Justice Impact Conference, which provides the final, official
estimate of the prison bed impact, if any, of legislation, has not yet reviewed the bill.
The bill, except as otherwise provided, is effective July 1, 2023.
II. Present Situation:
Insurance
In January 2003, the Financial Services Commission (“Commission”) was created within the
Department of Financial Services (Department).4 The Commission is composed of the Governor,
the Attorney General, the Chief Financial Officer, and the Commissioner of Agriculture.5 The
Commission consists of the Office of Insurance Regulation (OIR) and the Office of Financial
Regulation (OFR).6
The OIR is responsible for the regulation of activities related to insurers and other risk bearing
entities, including, amongst other things, licensing, rates, policy forms market conduct, claims,
issuance of certificates of authority.7 A person may not act, advertise, or hold himself or herself
1
Section 775.082, F.S.
2
Section 775.083, F.S.
3
Section 775.084, F.S.
4
Section 20.121(3), F.S.
5
Id.
6
Section 20.121(3)(a), F.S.
7
Section 20.121(3)(a), F.S.
BILL: CS/CS/SB 1398 Page 5
out as an insurance agent,8 insurance adjuster,9 or customer representative unless he or she is
licensed by the Department and appointed by an appropriate appointing entity or person.10 To
obtain a license, such individuals must comply with certain requirements, including submit an
application which contains specified information such as the applicant’s name, address, and other
contact information.11 A licensee has an obligation to notify the Department, in writing, within
30 days after a change of name, residence address, principal business street, address, mailing
address, contract telephone numbers, including a business telephone number, or e-mail address.12
A licensee who failure to notify the Department of such change within the 30 days is subject to a
fine not to exceed $250 for a first offence and a fine of at least $500 or suspension or revocation
of certain licenses for a subsequent offense.13
Public Adjusters
A public adjuster is any person, except a duly licensed attorney-at-law as exempted under
s. 626.860, F.S., who, for money, commission, or any other things of value, directly or indirectly
prepares, completes, or files an insurance claim for an insured14 or third-party claimant, or who,
for money, commission, or any other thing of value, acts on behalf of, or aids an insured or third-
party claimant in negotiating for or effecting the settlement of a claim or claims for loss or
damage covered by an insurance contract, or who, advertises for employment as an adjuster of
such claims.15 The term also includes any person who, for money, commission, or any other
thing of value, directly or indirectly solicits, investigates, or adjusts such claims on behalf of the
public adjuster, as insured, or a third-party claimant.16 The term excludes several categories of
persons who do not fall within the definition, such as licensed health care providers or employees
thereof who prepares or files health insurance claim forms on behalf of a patient.17
8
Section 626.015(3), F.S., defines “agent” as a general lines agent, life agent, health agent, or title agent, or all such agents,
as indicated by context. The term “agent” includes an insurance producer or producer, but does not include a customer
representative, limited customer representative, or service representative. Section 626.015(6), F.S., defines “customer
representative” as an individual appointed by a general lines agent or agency to assist that agent or agency in transacting the
business of insurance from the office of the agent or agency. Section 626.015(13), F.S., defines “limited customer
representative” as a customer representative appointed by a general lines agent or agency to assist that agent or agency in
transacting only the business of private passenger motor vehicle insurance from the office of that agent or agency.
Section 626.015(19), F.S., defines “service representative” as an individual employed by an insurer or managing general
agent for the purpose of assisting a general lines agent in negotiating and effecting insurance contracts when accompanied by
a licensed general lines agent.
9
Section 626.015(2), F.S., defines “adjuster” as a public adjuster as defined in s. 626.854, F.S., or an all-lines adjuster as
defined in s. 626.8548, F.S. which defines the term as a person who, for money, commission, or any other thing of value,
directly or indirectly undertakes on behalf of a public adjuster or an insurer to ascertain and determine the amount of any
claim, loss, or damage payable under an insurance contract or undertakes to effect settlement of such claim, loss, or damage.
The term also includes any person who, for money, commission, and any other thing of value, directly or indirectly solicits
claims on behalf of a public adjuster, but does not include a paid spokesperson used as part of a written or an electronic
advertisement or a person who photographs or inventories damaged property or business personal property if such person
does not otherwise adjust, investigate, or negotiate for or attempt to effect the settlement of a claim.
10
Section 626.112(1)(a), F.S.
11
Section 626.171, F.S.
12
Section 626.551, F.S.
13
Id.
14
Section 626.854(4), F.S., defines “insured,” for purposes of this section, as only the policyholder and any beneficiaries
named or similarly identified in the policy.
15
Section 626.854(1), F.S.
16
Id.
17
Section 626.854(2)(a), F.S.
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Prohibited acts
Section 626.854, F.S., prohibits public adjusters from engaging in certain conduct, including
giving legal advice or acting on behalf of any person negotiating or settling certain claims.18 An
attorney who is licensed to practice law in Florida and in good standing with The Florida Bar is
not required to hold a separate license under ch. 626, F.S., to adjust or participate in the
adjustment of any claim, l