642.021 Certificate of authority.
530 words·~2 min read·
/fl/title-xxxvii/chapter-642/642-021·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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 casualty insurance in this state may transact legal expense insurance provided it complies with the applicable provisions of ss. 642.011 - 642.049 . A certificate of authority under ss. 642.011 - 642.049 may be issued only to a legal expense insurance corporation.
(2)The corporation shall file with the office an application for a certificate of authority upon a form adopted by the commission and furnished by the office, which shall include or have attached the following:
(a)The names, addresses, and occupations of all directors and officers and of each shareholder who owns or controls 10 percent or more of the shares of the applicant corporation.
(b)A certified copy of the corporate articles and bylaws and, for the 3 most recent years, the annual statements and reports of the corporation.
(c)Each agreement relating to the corporation to which any director or officer, or any shareholder who owns or controls 10 percent or more of the shares of the corporation, is a party.
(d)A statement of the amount and sources of the funds available for organization expenses and the proposed arrangements for reimbursement and compensation of incorporators or other persons.
(e)A statement of compensation to be provided directors and officers.
(f)The forms to be used for any proposed contracts between the corporation and participating attorneys or between the corporation and corporations which perform administration, marketing, or management services and the forms relating to the provision of services to insureds.
(g)The plan for conducting the insurance business, which plan shall include all of the following:
1. The geographical area in which business is intended to be conducted in the first 5 years.
2. The types of insurance intended to be written in the first 5 years, including specification whether and to what extent indemnity rather than service benefits are to be provided.
3. The proposed marketing methods.
(h)A current statement of the assets and liabilities of the corporate applicant.
(i)Forms of all legal service contracts the applicant proposes to offer showing the rates to be charged for each form of contract.
(j)Such other documents and information as the commission or office may reasonably require.
(3)Copies of the documents filed pursuant to paragraphs
(f)and
(i)of subsection
(2)shall be filed with The Florida Bar within 5 days after filing with the office.
(4)The office shall issue a certificate of authority only to a legal expense insurance corporation, provided it is satisfied that:
(a)All requirements of law have been met;
(b)All natural persons who are directors and officers, and each shareholder who owns or controls 10 percent or more of the shares of the applicant corporation, are trustworthy and collectively have the competence and experience to engage in the particular insurance business proposed; and
(c)The business plan is consistent with the interests of potential insureds and of the public.