Florida Statutes 1983, Volume 3 - Florida State University College of ...

Ch.642 LEGAL EXPENSE INSURANCE F.S.1983
relations. The department may require more frequent
reports from an insurer or group of insurers.
History.-s. 1, ch. 79-103; s. 2, ch. 81-318; ss. 7, 20, 21, ch. 83-278.
'Note.-Expires October 1, 1993, pursuant to s. 21, ch. 83-278, and is scheduled
for review pursuant to 8. 11.61 in advance of that date.
1642.032 Provisions of general insurance
law applicable to legal expense insurance corporations.-The
following provisions of the insurance
laws of this state shall apply to legal service insurance
corporations, to the extent that they are not
inconsistent with the provisions of ss.
642.011-642.049:
(1) Chapter 624, administration and general provisions.
(2) Chapter 625, accounting, investments, and
deposits.
(3) Chapter 626, part VIII, unfair insurance trade
practices.
(4) Chapter 627, part I, rates and rating organizations,
and part II, the insurance contract.
(5) Chapter 631, insurer insolvency; guaranty of
payment.
History.-s. 1, ch. 79-103; s. 2, ch. 81-318; ss. 8, 20, 21, ch. 83-278.
'Note.-Expires October 1, 1993, pursuant to s. 21, ch. 83-278, and is scheduled
for review pursuant to s. 11.61 in advance of that date.
1642.0331 Grounds for suspension or revocation
of certificate.-
(1) The certificate of authority of an insurer,
whether issued pursuant to this chapter or the insurance
code, may be revoked or suspended, or the department
may refuse to renew a certificate of authority,
if the department determines that the insurer:
(a) Has violated any lawful rule or order of the
department or any provision of this chapter.
(b) Is in an unsound financial condition which
would render its further transaction of business in
this state hazardous or injurious to its policyholders,
its certificate holders, or the public.
(c) Is using such methods or practices in the conduct
of its business so as to render its further transaction
of business in this state hazardous or injurious
to its policyholders, its certificateholders, or the public.
(d) Has refused to be examined or to produce its
accounts, records, or files for examination, or if any
of its officers have refused to give information with
respect to its affairs or have refused to perform any
other legal obligation as to such examination, when
required by the department.
(e) Has failed to pay any final judgment rendered
against it in this state within 60 days after the judgment
became final.
(f) Without just cause has refused to pay proper
claims or perform services arising under its policies
or contracts; without just cause has compelled policyholders
or certificateholders to accept less than the
amount due them; or has employed attorneys, or has
brought suit against the association, to secure full
payment or settlement of such claims.
(g) Is affiliated with, and under the same general
management or interlocking directorate or ownership
as, another insurer which transacts business in this
state without having a certificate of authority.
(2) The department may, pursuant to s. 120.60, in
776
its discretion and without advance notice or hearing
thereon, immediately suspend the certificate of any
insurer, whether such certificate was issued pursuant
to this chapter or the insurance code, if it finds that
one or more of the following circumstances exist:
(a) The insurer is insolvent or impaired.
(b) The deposit required by s. 642.023 is not being
maintained.
(c) Proceedings for receivership, conservatorship,
or rehabilitation or other delinquency proceedings regarding
the insurer have been commenced in any
state.
(d) The financial condition or business practices
of the insurer otherwise pose an imminent threat to
the public health, safety, or welfare of the residents
of this state.
History.-ss. 9, 21, ch. 83-278.
'Note.-Expires October 1, 1993, pursuant to s. 21, ch. 83-278, and is scheduled
for review pursuant to s. 11.61 in advance of that date.
1642.0334 Order; notice of suspension or
revocation of certificate; effect; publication.-
(1) Suspension or revocation of a certificate of
authority of an insurer shall be by order of the department
mailed to the corporation by registered or
certified mail. The department also shall promptly
give notice of such suspension or revocation to the
sales representatives in this state of the corporation
who are of record in the office of the department.
The insurer shall not solicit or write any new contracts
in this state during the period of any such suspension
or revocation.
(2) In its discretion, the department may cause
notice of the revocation or suspension to be published
in one or more newspapers of general circulation
published in this state.
History.-ss. 10, 21, ch. 83-278.
'N ote.-Expires October 1, 1993, pursuant to s. 21, ch. 83-278, and is scheduled
for review pursuant to s. 11.61 in advance of that date.
1642.0336 Duration of suspension; obligations
during suspension; reinstatement.-
(1) Suspension of an insurer's' certificate of authority
shall be for such period, not to exceed 1 year,
as is fixed in the order of suspension, unless such suspension
or the order upon which the suspension is
based is modified, rescinded, or reversed.
(2) During the period of suspension, the insurer
shall file its annual statement and pay fees as required
under this chapter as if the certificate of authority
had continued in full force.
(3) Upon expiration of the period of suspension,
if within such period the certificate of authority has
not otherwise terminated, the certificate of authority
shall automatically be reinstated, unless the causes of
the suspension have not been removed or the insurer
is otherwise not in compliance with the requirements
of this chapter.
(4) Upon reinstatement of an insurer's certificate
of authority following suspension, the authority of
the sales representatives in this state to represent the
insurer shall be reinstated.
History.- ss. 11, 21, ch. 83-278.
'Note.-Expires October 1, 1993, pursuant to s. 21, ch. 83-278, and is scheduled
for review pursuant to s. 11.61 in advance of that date.
1642.0338 Administrative fine in lieu of suspension
or revocation.-
(1) If the department finds that one or more