642.011 – Short Title.

642.011 Short title.—Sections 642.011-642.049 may be cited as the “Legal Expense Insurance Act.” History.—s. 1, ch. 79-103; s. 2, ch. 81-318; ss. 20, 21, ch. 83-278; ss. 6, 7, ch. 93-147.

642.013 – Purpose.

642.013 Purpose.—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. History.—s. 1, ch. 79-103; s. 2, ch. 81-318; ss. 20, 21, ch. 83-278; ss. 6, 7, ch. 93-147.

642.015 – Definitions.

642.015 Definitions.—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 casualty insurance business in this state or a legal expense insurance corporation authorized […]

642.016 – Chapter Exclusive; Applicability of Other Laws.

642.016 Chapter exclusive; applicability of other laws.—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. History.—ss. 29, 52, ch. 85-321; ss. 6, 7, ch. 93-147.

642.017 – Exemptions.

642.017 Exemptions.—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 clients involved in the same or closely […]

642.019 – Organization of Legal Expense Insurance Corporations.

642.019 Organization of legal expense insurance corporations.— (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 addition: (a) The name of the corporation shall indicate that legal […]

642.021 – Certificate of Authority.

642.021 Certificate of authority.— (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 […]

642.022 – Insurance Business Not Authorized.

642.022 Insurance business not authorized.—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 certificate of authority issued by the […]

642.023 – Required Deposit or Bond.

642.023 Required deposit or bond.— (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 insurers under s. 625.52, which securities shall be held […]

642.024 – Levy Upon Deposit.

642.024 Levy upon deposit.—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. History.—ss. 41, 52, ch. 85-321; ss. 6, 7, ch. 93-147.

642.025 – Policy and Certificate Forms.

642.025 Policy and certificate forms.— (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 policy or certificate of legal expense insurance may be issued […]

642.0261 – Net Worth Required of Applicants.

642.0261 Net worth required of applicants.—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. History.—ss. 3, 7, ch. 93-147.

642.0262 – Net Worth Required to Maintain Certificate of Authority.

642.0262 Net worth required to maintain certificate of authority.—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. History.—ss. 4, 7, ch. 93-147; s. 83, ch. 2000-158.

642.027 – Premium Rates.

642.027 Premium rates.—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 not limited to, the experience or judgment of the insurer […]

642.029 – Contracts by Insurers.

642.029 Contracts by insurers.— (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 the number and geographical distribution of attorneys and providers of other […]

642.0301 – Filing, License, Statement, and Miscellaneous Fees.

642.0301 Filing, license, statement, and miscellaneous fees.— (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) Annual license fee for legal expense insurance corporations……….$300 (c) Statements of legal expense insurance corporation: 1. Annual […]

642.032 – Provisions of General Insurance Law Applicable to Legal Expense Insurance Corporations.

642.032 Provisions of general insurance law applicable to legal expense insurance corporations.—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, investments, and deposits. (3) Chapter 626, part IX, […]

642.0331 – Grounds for Suspension or Revocation of Certificate.

642.0331 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 office may refuse to renew a certificate of authority, if the office determines that the insurer: (a) Has violated any lawful rule or order of […]

642.0334 – Order; Notice of Suspension or Revocation of Certificate; Effect; Publication.

642.0334 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 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 […]

642.0336 – Duration of Suspension; Obligations During Suspension; Reinstatement.

642.0336 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 […]