THE BILL ITSELF
CS/HB 645
Limited Agent Licenses
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A bill to be entitled
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An act relating to limited agent licenses; amending s.
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626.321, F.S.; renaming "portable electronics
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insurance" as "portable electronics or eyewear
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insurance" to include eyewear for purposes of
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insurance coverage and licenses; providing
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construction; defining the term "eyewear"; revising
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the definition of the term "portable electronics";
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removing the obsolete definition of the term "portable
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electronics transaction"; amending ss. 626.221,
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626.732, and 626.8685, F.S.; conforming provisions to
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changes made by the act; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Paragraph (h) of subsection (1) and subsection
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(4) of section 626.321, Florida Statutes, are amended to read:
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626.321 Limited licenses and registration.—
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(1) The department shall issue to a qualified applicant a
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license as agent authorized to transact a limited class of
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business in any of the following categories of limited lines
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insurance:
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(h) Portable electronics or eyewear insurance.—License for
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property insurance or inland marine insurance that covers only
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loss, theft, mechanical failure, malfunction, or damage for
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portable electronics or eyewear. Such license allows a licensee
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to sell or offer for sale coverage for both portable electronics
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and eyewear, but does not require a licensee to sell or offer
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for sale both types of coverage.
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1. The license may be issued only to:
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a. Employees or authorized representatives of a licensed
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general lines agent; or
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b. The lead business location of a retail vendor that
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sells portable electronics or eyewear insurance. The lead
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business location must have a contractual relationship with a
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general lines agent.
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2. Employees or authorized representatives of a licensee
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under subparagraph 1. may sell or offer for sale portable
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electronics or eyewear coverage without being subject to
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licensure as an insurance agent if:
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a. Such insurance is sold or offered for sale at a
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licensed location or at one of the licensee's branch locations
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if the branch location is appointed by the licensed lead
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business location or its appointing insurers;
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b. The insurer issuing the insurance directly supervises
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or appoints a general lines agent to supervise the sale of such
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insurance, including the development of a training program for
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the employees and authorized representatives of vendors that are
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directly engaged in the activity of selling or offering the
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insurance; and
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c. At each location where the insurance is offered,
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brochures or other written materials that provide the
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information required by this subparagraph are made available to
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all prospective customers. The brochures or written materials
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may include information regarding portable electronics or
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eyewear insurance, service warranty agreements, or other
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incidental services or benefits offered by a licensee.
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3. Individuals not licensed to sell portable electronics
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or eyewear insurance may not be paid commissions based on the
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sale of such coverage. However, a licensee who uses a
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compensation plan for employees and authorized representatives
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which includes supplemental compensation for the sale of
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noninsurance products, in addition to a regular salary or hourly
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wages, may include incidental compensation for the sale of
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portable electronics or eyewear insurance as a component of the
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overall compensation plan.
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4. Brochures or other written materials related to
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portable electronics or eyewear insurance must:
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a. Disclose that such insurance may duplicate coverage
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already provided by a customer's homeowners insurance policy,
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renters insurance policy, or other source of coverage;
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b. State that enrollment in insurance coverage is not
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required in order to purchase or lease portable electronics or
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eyewear or services;
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c. Summarize the material terms of the insurance coverage,
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including the identity of the insurer, the identity of the
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supervising entity, the amount of any applicable deductible and
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how it is to be paid, the benefits of coverage, and key terms
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and conditions of coverage, such as whether portable electronics
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or eyewear may be repaired or replaced with similar make and
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model reconditioned or nonoriginal manufacturer parts or
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equipment;
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d. Summarize the process for filing a claim, including a
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description of how to return portable electronics or eyewear and
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the maximum fee applicable if the customer fails to comply with
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equipment return requirements; and
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e. State that an enrolled customer may cancel coverage at
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any time and that the person paying the premium will receive a
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refund of any unearned premium.
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5. A licensed and appointed general lines agent is not
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required to obtain a portable electronics and eyewear insurance
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license to offer or sell portable electronics or eyewear
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insurance at locations already licensed as an insurance agency,
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but may apply for a portable electronics and eyewear insurance
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license for branch locations not otherwise licensed to sell
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insurance.
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6. A portable electronics and eyewear insurance license
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authorizes the sale of individual policies or certificates under
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a group or master insurance policy. The license also authorizes
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the sale of service warranty agreements covering only portable
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electronics or eyewear to the same extent as if licensed under
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s. 634.419 or s. 634.420.
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7. A licensee may bill and collect the premium for the
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purchase of portable electronics or eyewear insurance provided
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that:
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a. If the insurance is included with the purchase or lease
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of portable electronics or eyewear or related services, the
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licensee clearly and conspicuously discloses that insurance
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coverage is included with the purchase. Disclosure of the stand-
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alone cost of the premium for same or similar insurance must be
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made on the customer's bill and in any marketing materials made
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available at the point of sale. If the insurance is not
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included, the charge to the customer for the insurance must be
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separately itemized on the customer's bill.
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b. Premiums are incidental to other fees collected, are
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maintained in a manner that is readily identifiable, and are
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accounted for and remitted to the insurer or supervising entity
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within 60 days of receipt. Licensees are not required to
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maintain such funds in a segregated account.
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c. All funds received by a licensee from an enrolled
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customer for the sale of the insurance are considered funds held
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in trust by the licensee in a fiduciary capacity for the benefit
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of the insurer. Licensees may receive compensation for billing
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and collection services.
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8. Notwithstanding any other provision of law, the terms
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for the termination or modification of coverage under a policy
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of portable electronics or eyewear insurance are those set forth
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in the policy.
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9. Notice or correspondence required by the policy, or
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otherwise required by law, may be provided by electronic means
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if the insurer or licensee maintains proof that the notice or
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correspondence was sent. Such notice or correspondence may be
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sent on behalf of the insurer or licensee by the general lines
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agent appointed by the insurer to supervise the administration
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of the program. For purposes of this subparagraph, an enrolled
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customer's provision of an electronic mail address to the
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insurer or licensee is deemed to be consent to receive notices
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and correspondence by electronic means if a conspicuously
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located disclosure is provided to the customer indicating the
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same.
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10. The fingerprinting requirements in s. 626.171(4) do
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not apply to licenses issued to qualified entities under this
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paragraph.
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11. A branch location that sells portable electronics or
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eyewear insurance may, in lieu of obtaining an appointment from
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an insurer or warranty association, obtain a single appointment
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from the associated lead business location licensee and pay the
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prescribed appointment fee under s. 624.501 if the lead business
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location has a single appointment from each insurer or warranty
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association represented and such appointment applies to the lead
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business location and all of its branch locations. Branch
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location appointments shall be renewed 24 months after the
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initial appointment date of the lead business location and every
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24 months thereafter. Notwithstanding s. 624.501, the renewal
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fee applicable to such branch location appointments is $30 per
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appointment.
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12. For purposes of this paragraph:
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a. "Branch location" means any physical location in this
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state at which a licensee offers its products or services for
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sale.
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b. "Eyewear" means smart glasses and nonelectronic
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eyewear. As used in this sub-subparagraph, the term
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"nonelectronic eyewear" includes prescription and
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nonprescription eyeglasses and sunglasses.
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c.b. "Portable electronics" means equipment that is
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personal, self-contained, and easily carried by an individual;
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has electrical, digital, magnetic, wireless, electromagnetic, or
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similar capabilities; and operates using batteries, rechargeable
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power sources, or other energy sources. The term includes
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equipment used for communication, data processing, viewing,
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listening, recording, gaming, computing, navigation, household,
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health or activity monitoring, or similar uses and may also
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incorporate features responsive to user input or environmental
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conditions, battery-operated electronic communication, viewing,
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listening, recording, gaming, computing or global positioning
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devices, including cell or satellite phones, pagers, personal
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global positioning satellite units, portable computers, portable
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audio listening, video viewing or recording devices, digital
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cameras, video camcorders, portable gaming systems, docking
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stations, automatic answering devices, and other similar devices
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and their accessories, and service related to the use of such
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devices.
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c. "Portable electronics transaction" means the sale or
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lease of portable electronics or a related service, including
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portable electronics insurance.
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(4) Except as otherwise expressly provided, a person
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applying for or holding a limited license is subject to the same
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applicable requirements and responsibilities that apply to
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general lines agents in general if licensed as to motor vehicle
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physical damage and mechanical breakdown insurance, industrial
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fire insurance or burglary insurance, motor vehicle rental
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insurance, credit insurance, crop hail and multiple-peril crop
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insurance, in-transit and storage personal property insurance,
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or portable electronics or eyewear insurance; or as apply to
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life agents or health agents in general, as applicable, if
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licensed as to travel insurance.
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Section 2. Paragraph (b) of subsection (2) of section
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626.221, Florida Statutes, is amended to read:
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626.221 Examination requirement; exemptions.—
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(2) However, an examination is not necessary for any of
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the following:
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(b) An applicant for a limited license as agent for travel
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insurance, motor vehicle rental insurance, credit insurance, in-
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transit and storage personal property insurance, or portable
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electronics or eyewear insurance under s. 626.321.
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Section 3. Subsection (7) of section 626.732, Florida
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Statutes, is amended to read:
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626.732 Requirement as to knowledge, experience, or
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instruction.—
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(7) This section does not apply to an individual holding
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only a limited license for travel insurance, motor vehicle
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rental insurance, credit insurance, in-transit and storage
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personal property insurance, or portable electronics or eyewear
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insurance. Section 4. Section 626.8685, Florida Statutes, is amended
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to read:
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626.8685 Portable electronics or eyewear insurance claims;
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exemption; licensure restriction.—
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(1) This part does not apply to any individual who
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collects claims information from, or furnishes claims
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information to, insureds or claimants, and who conducts data
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entry, including entering data into an automated claims
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adjudication system, provided that the individual is an employee
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of a business entity licensed under this chapter, or its
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affiliate, and no more than 25 such persons are under the
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supervision of one licensed independent adjuster or licensed
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agent who is exempt from licensure pursuant to s. 626.862. For
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purposes of this subsection, the term "automated claims
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adjudication system" means a preprogrammed computer system
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designed for the collection, data entry, calculation, and final
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resolution of portable electronics or eyewear insurance claims
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that:
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(a) May be used only by a licensed independent adjuster,
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licensed agent, or supervised individual operating pursuant to
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this subsection;
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(b) Must comply with all claims payment requirements of
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the insurance code; and
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(c) Must be certified as compliant with this subsection by
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a licensed independent adjuster that is an officer of a licensed
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business entity under this chapter.
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(2) Notwithstanding any other provision of law, a resident
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of Canada may not be licensed as a nonresident independent
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adjuster for purposes of adjusting portable electronics
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insurance or eyewear claims unless the person has successfully
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obtained an adjuster's license in another state.
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Section 5. This act shall take effect July 1, 2026.