Florida Administrative Code
69 - DEPARTMENT OF FINANCIAL SERVICES
69O - OIR - Insurance Regulation
Chapter 69O-196 - PREMIUM FINANCE COMPANIES
Section 69O-196.009 - Other Reports and Corrective Action Plans

Universal Citation: FL Admin Code R 69O-196.009

Current through Reg. 50, No. 187; September 24, 2024

To aid the Office in determining a licensee's continued eligibility to hold a premium finance license:

(1) If the Office has reason to believe that the owners, officers, or directors of the premium finance company or any parent or controlling company, if any, have been involved in activity which has been shown to be hazardous to the insurance-buying public in this or any other state, the Office shall require all owners of 10% or more of the company's stock, and all officers and directors, to update the biographical information on file with the Office.

(2) Changes in senior corporate officers, chief executive officer, chief financial officer, or directors (or members of a properly authorized and appointed executive committee thereof) or, if the licensee is not incorporated, changes in management personnel who have decision or policy-making authority over the premium finance company, shall be reported in writing to the Office within 60 days after the effective date of the change. Such changes will require completion of biographical information in the form required by the Office adopted in Rule 69O-196.015, F.A.C., and an independent investigative background report of the person or entity, plus an investigation fee. All filings shall be submitted electronically to https://www.floir.com/iportal.

(3) Every premium finance company is subject to the provisions of Section 628.4615, F.S. Each application for acquisition of an authorized premium finance company is subject to a license fee and an investigation fee.

(4) Whenever the financial condition of the premium finance company is such that administrative supervision is appropriate based on the standards set forth in Rule 69O-141.002, F.A.C., the Office shall order the premium finance company to file with the Office and implement a corrective action plan designed to do one or more of the following:

(a) Reduce the total amount of present liability by assignment of contracts or other means.

(b) Reduce the expenses of the premium finance company by methods specified in the corrective plan, subject to the standards set forth in Rule 69O-141.003, F.A.C.

(c) Suspend or limit the writing of new business for a period of time necessary to protect the public from the hazardous financial condition of the premium finance company.

(d) Require an increase in the premium finance company's net worth sufficient to bring the company into compliance with Section 627.828, F.S.

(5) If the premium finance company fails to submit a corrective action plan within 30 days of the Office's order or submits a plan which is insufficient to correct the premium finance company's financial condition, the Office shall order the premium finance company to implement one or more of the corrective actions listed in subsection (4).

(6) If the Office determines that a company is insolvent, the Office shall notify the company of such insolvency. If the company disagrees with the Office's determination, it shall within 15 calendar days file with the Office all information that proves that the company is not insolvent.

(7) If the company fails within the 15-day period provided in subsection (6) to supply information showing to the satisfaction of the Office that the company is not insolvent, the Office shall:

(a) Instruct the company to suspend acquisition of any new business if acquisition of new business would place the public at substantial risk;

(b) Suspend or revoke the company's license if administrative supervision is not viable due to the severity of the company's condition or the company's unwillingness to cooperate with the Office in the development and implementation of a corrective plan; or

(c) Place the company in administrative supervision under Section 624.81, F.S., subject to the limitations imposed by that section.

Rulemaking Authority 624.308 FS. Law Implemented 624.307(1), 624.424, 624.80, 624.81, 627.828, 627.829, 627.832, 627.834, 627.836, 628.4615 FS.

New 7-27-95, Formerly 4-196.009, Amended 7-30-17, 5-24-21.

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