Chapter 642 — Chapter 642
31 sections in this chapter.
Fla. Stat. § 642.011 Short title
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Sections 642.011-642.049 may be cited as the “Legal Expense Insurance Act.”
Fla. Stat. § 642.013 Purpose
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The purpose of ss. 642.011-642.049 is to authorize certification and regulation of certain organizations which provide programs for the payment of the costs of legal services or provide legal services.
Fla. Stat. § 642.015 Definitions
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As used in ss. 642.011-642.049, the term:(1) “Gross written premiums” means the total amount of premiums paid by the consumer for the entire period of the legal expense insurance contract, including commissions.(2) “Insurer” means any person authorized to conduct a life or casual…
Fla. Stat. § 642.016 Chapter exclusive; applicability of other laws
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Except as provided in this chapter, legal expense insurance corporations shall be governed by this chapter and shall be exempt from all other provisions of the Florida Insurance Code.
Fla. Stat. § 642.017 Exemptions
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The provisions of the Florida Insurance Code do not apply to:(1) Retainer contracts made by attorneys at law with individual clients with fees based on estimates of the nature and amount of services to be provided to the specific client and similar contracts made with a group of …
Fla. Stat. § 642.019 Organization of legal expense insurance corporations
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(1) Any number of corporations or adult natural persons may organize a legal expense insurance corporation under the law of this state relating to corporations generally.(2) The articles of incorporation shall conform to the requirements applicable to corporations, and, in additi…
Fla. Stat. § 642.021 Certificate of authority
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(1) It is unlawful for any person to engage in a legal expense insurance business in this state without a valid certificate of authority issued by the office, pursuant to ss. 642.011-642.049, except that a domestic, foreign, or alien insurer authorized to transact life or casualt…
Fla. Stat. § 642.022 Insurance business not authorized
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Nothing in the Florida Insurance Code or this chapter shall be deemed to authorize any legal expense corporation to transact any insurance business other than that of legal expense insurance or to otherwise engage in any other type of insurance unless it is authorized under a cer…
Fla. Stat. § 642.023 Required deposit or bond
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(1) To assure the faithful performance of its obligations in the event of insolvency, each legal expense insurance corporation, prior to the issuance of its certificate of authority, shall deposit and maintain with the department securities of the type eligible for deposit by ins…
Fla. Stat. § 642.024 Levy upon deposit
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No judgment creditor or other claimant of a legal expense insurance corporation shall have the right to levy upon any of the assets or securities held in this state as a deposit under s. 642.023.
Fla. Stat. § 642.025 Policy and certificate forms
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(1) Legal expense insurance may be written as individual, group, blanket, or franchise insurance. Each contractual obligation for legal expense insurance shall be evidenced by a policy. Each person insured under a group policy shall be issued a certificate of coverage.(2) No poli…
Fla. Stat. § 642.0261 Net worth required of applicants
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To receive authority to transact legal expense insurance, an applicant applying for a certificate of authority after October 1, 1993, must possess a net worth not less than the greater of:(1) Ten thousand dollars; or(2) Ten percent of the applicant’s total liabilities. (1) Ten th…
Fla. Stat. § 642.0262 Net worth required to maintain certificate of authority
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To maintain a certificate of authority to transact legal expense insurance, a legal expense insurance corporation must maintain a net worth of not less than the greater of:(1) Ten thousand dollars; or(2) Ten percent of the insurer’s total liabilities. (1) Ten thousand dollars; or…
Fla. Stat. § 642.027 Premium rates
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No policy of legal expense insurance may be issued in this state unless the premium rates for the insurance have been filed with and approved by the office. Premium rates shall be established and justified in accordance with generally accepted insurance principles, including, but…
Fla. Stat. § 642.029 Contracts by insurers
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(1) Contracts made between the insurer and participating attorneys, management contracts, or contracts with providers of other services covered by the legal expense insurance policy shall be filed with and approved by the office.(2) An insurer shall annually report to the office …
Fla. Stat. § 642.0301 Filing, license, statement, and miscellaneous fees
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(1) Every legal expense insurance corporation must pay to the office the following fees:(a) Certificate of authority of legal expense insurance corporation. Filing application for original certificate of authority, including all accompanying documents, filing fee..........$250(b)…
Fla. Stat. § 642.032 Provisions of general insurance law applicable to legal expense insurance corporations
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The following provisions of the Florida Insurance Code shall apply to legal expense 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, …
Fla. Stat. § 642.0331 Grounds for suspension or revocation of certificate
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(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 office may refuse to renew a certificate of authority, if the office determines that the insurer:(a) Has violated any lawful rule or …
Fla. Stat. § 642.0334 Order; notice of suspension or revocation of certificate; effect; publication
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(1) Suspension or revocation of a certificate of authority of an insurer shall be by order of the office mailed to the corporation by registered or certified mail. The office also shall promptly give notice of such suspension or revocation to the sales representatives in this sta…
Fla. Stat. § 642.0336 Duration of suspension; obligations during suspension; reinstatement
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(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 susp…
Fla. Stat. § 642.0338 Administrative fine in lieu of suspension or revocation
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(1) If the office finds that one or more grounds exist for the revocation or suspension of a certificate of authority issued under this chapter, the office may, in lieu of such suspension or revocation, impose a fine upon the insurer.(2) With respect to any nonwillful violation, …
Fla. Stat. § 642.034 License and appointment required
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No person may solicit, negotiate, sell, or execute legal expense insurance contracts on behalf of an insurer in this state unless such person is licensed and appointed as a sales representative or is licensed and appointed under the insurance code as a general lines agent. No per…
Fla. Stat. § 642.036 Sales representatives to be licensed and appointed
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Sales representatives of legal expense insurers shall be licensed, appointed, renewed, continued, reinstated, or terminated as prescribed in chapter 626 for insurance representatives in general, and shall pay the license and appointment fees prescribed in s. 624.501. No employee …
Fla. Stat. § 642.038 Reporting and accounting for funds
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(1) All funds belonging to an insurer or other person received by a sales representative in transactions under his or her license and appointment shall be trust funds so received by such representative in a fiduciary capacity; and the representative, in the applicable regular cou…
Fla. Stat. § 642.041 Grounds for compulsory refusal, suspension, or revocation of license or appointment of contracting sales representatives
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The department shall, pursuant to the insurance code, deny, suspend, revoke, or refuse to renew or continue the license or appointment of any sales representative or the license or appointment of any general lines agent if it finds that, as to the sales representative or general …
Fla. Stat. § 642.043 Grounds for discretionary refusal, suspension, or revocation of license or appointment of sales representatives
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The department may, in its discretion, deny, suspend, revoke, or refuse to renew or continue the license or appointment of any sales representative if it finds that, as to the representative, any one or more of the following applicable grounds exist under circumstances for which …
Fla. Stat. § 642.045 Procedure for refusal, suspension, or revocation of license and appointment of sales representative; departmental action upon violation by licensed insurance agent
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(1) If any sales representative is convicted by a court of a violation of any provision of ss. 642.011-642.049, the license and appointment of such individual shall thereby be deemed to be immediately revoked without any further procedure relative thereto by the department.(2) Wh…
Fla. Stat. § 642.047 Administrative fine in lieu of suspension or revocation of license or appointment
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(1) If, pursuant to procedures provided for in ss. 642.011-642.049, it is found that one or more grounds exist for the suspension or revocation of, or refusal to renew or continue, any license or appointment issued under ss. 642.011-642.049, and except when such suspension, revoc…
Fla. Stat. § 642.0475 Civil remedy
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(1) Any person damaged by a violation of the provisions of this chapter may bring a civil action against a person violating such provisions in the circuit court of the county in which the alleged violator resides, or has his or her principal place of business, or in the county wh…
Fla. Stat. § 642.048 Prohibited sales
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No insurer of prepaid legal services and no legal expense insurance corporation shall market on the premises of any establishment licensed to sell alcoholic beverages any insurance policy or contract which makes provision for legal services or indemnifies for the cost of legal se…
Fla. Stat. § 642.049 Construction
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Nothing contained in ss. 642.011-642.049 shall be construed to regulate the practice of law or limit the powers or authority of the Supreme Court of Florida in the regulation of the conduct of attorneys.