Opinion ID: 1920397
Heading Depth: 2
Heading Rank: 2

Heading: Florida's Unauthorized Insurers Process Law

Text: Chapter 626, Florida Statutes (2005), generally addresses foreign insurers who are unauthorized to do business in Florida. Sections 626.904 through 626.912 are collectively referred to as the Unauthorized Insurers Process Law. § 626.904, Fla. Stat. (2005). Section 626.905 is entitled Purpose of Unauthorized Insurers Process Law and provides: The purpose of the Unauthorized Insurers Process Law is to subject certain insurers and persons representing or aiding such insurers to the jurisdiction of courts of this state in suits by or on behalf of insureds or beneficiaries under insurance contracts. The Legislature declares that it is a subject of concern that many residents of this state hold policies of insurance issued or delivered in the state by insurers while not authorized to do business in this state, thus presenting to such residents the often insuperable obstacle of resorting to distant forums for the purpose of asserting legal rights under such policies. In furtherance of such state interest, the Legislature herein provides a method of substituted service of process upon unauthorized insurers and persons representing or aiding such insurers, and declares that in so doing it exercises its power to protect its residents and to define, for the purpose of this chapter, what constitutes doing business in this state.... Section 626.906 specifies the acts which will subject unauthorized foreign insurers to the jurisdiction of Florida courts: Any of the following acts in this state, effected by mail or otherwise, by an unauthorized foreign insurer, alien insurer, or person representing or aiding such an insurer is equivalent to and shall constitute an appointment by such insurer or person representing or aiding such insurer of the Chief Financial Officer to be its true and lawful attorney, upon whom may be served all lawful process in any action, suit, or proceeding instituted by or on behalf of an insured or beneficiary, arising out of any such contract of insurance; and any such act shall be signification of the insurer's or person's agreement that such service of process is of the same legal force and validity as personal service of process in this state upon such insurer or person representing or aiding such insurer: (1) The issuance or delivery of contracts of insurance to residents of this state or to corporations authorized to do business therein; (2) The solicitation of applications for such contracts; (3) The collection of premiums, membership fees, assessments, or other considerations for such contracts; or (4) Any other transaction of insurance. The Legislature has defined the term transact as it relates to insurance to include any of the following: (1) Solicitation or inducement. (2) Preliminary negotiations. (3) Effectuation of a contract of insurance. (4) Transaction of matters subsequent to effectuation of a contract of insurance and arising out of it. § 624.10, Fla. Stat. (2005). Section 626.907, Florida Statutes (2005), is entitled Service of process; judgment by default, and specifies the procedure by which service of process is to be made for unauthorized foreign insurers subject to personal jurisdiction under section 626.906. Thus, collectively sections 626.906 and 626.907 allow a Florida court to effectuate service of process on and exercise personal jurisdiction over an unauthorized foreign insurer whenever the insurer engages in one of the acts enumerated in section 626.906. In fact, the United States Court of Appeals for the Eleventh Circuit has referred to the UIPL as a long-arm statute... specifically designed to subject out-of-state insurers who are unauthorized to do business in Florida to the jurisdiction of the Florida courts. Walter v. Blue Cross & Blue Shield United of Wisconsin, 181 F.3d 1198, 1203 (11th Cir.1999). The court noted that [t]he statute lists a number of acts which may subject an unauthorized insurer to the jurisdiction of the Florida courts by allowing substituted service of process. Id.; see also Bookman v. KAH Inc., 614 So.2d 1180, 1182 (Fla. 1st DCA 1993) (noting that the UIPL was enacted to subject certain insurers not authorized to do business in this state to Florida jurisdiction, and that the insurer's doing of an act enumerated in section 626.906 authorizes service of process on the Insurance Commissioner of Florida as the insurer's authorized agent).