Chapter 1 — Agency Licensure & Contact Information

Any licensed agent or adjuster doing business under a firm or corporate name or under any business name other than his or her own name must, within 30 days after the initial transaction of insurance under the business name:

• File on the appropriate department forms a written statement of the firm, corporate, or business name used
• Include the address of all offices or places of business making use of the name
• The name and Social Security number of each officer and director of the corporation
• The name and Social Security number of each individual associated in the firm or corporation as to the insurance transactions it makes or in the use of the business name

In the event of any change of the name, officers, directors, locations, or personnel, written notice must be filed within 30 days. Any licensed insurance agency must, within 30 days after a change, notify the department of changes to the information contained in the application on file. [Source: §626.541]

A licensee must notify the department in writing within 30 days after a change of:

• Name
• Residence address
• Principal business street address
• Mailing address
• Contact phone numbers, including a business phone, cellphone, and email address

A licensee who has moved his or her principal place of residence and principal place of business from Florida must have his or her license and all appointments immediately terminated. Failure to notify the department within the required time will result in a fine up to $250 for the first offense and a fine of at least $500 or suspension or revocation of the license for subsequent offenses. [Source: §626.551]

An unaffiliated insurance agent is a new type of insurance agent that specifies the scope of the license. This agent is defined as a licensed insurance agent, except a limited lines agent, who is not appointed by or affiliated with any insurer, but is self-appointed.

This agent acts as an independent consultant in the business of analyzing or abstracting insurance policies, providing insurance advice or counseling, or making specific recommendations or comparisons of insurance products for a fee established in advance by a written contract signed by the parties.

The bill prohibits an unaffiliated insurance agent from being affiliated with an insurer, insurer-appointed insurance agent, or insurance agency contracted with or employing insurer-appointed insurance agents. However, these agents may continue to receive commissions on sales made before the date of appointment as an unaffiliated insurance agent, as long as the agent discloses the receipt of commissions to the client.

Unaffiliated insurance agents must pay the same agent appointment fees required under current law for agents appointed by insurers. [Chapter 626.015(18)]

HB633 makes significant changes to the insurance agency licensure law to streamline the licensing process and better align the regulation of insurance agencies in Florida with other states. The Department of Financial Services (DFS) is the state agency responsible for licensing insurance agencies in accordance with s. 626.172, F.S.

The bill eliminates the insurance agency licensing requirement for agencies that are owned and operated by a single licensed agent who conducts business in his/her own name and does not employ or use other insurance licensees. [§Chapter 626.112(7)(a)]

A branch place of business established by a licensed agency is considered a branch agency. A branch agency is not required to be licensed if it transacts business under the same name and federal tax identification number as the licensed agency, has designated a licensed agent in charge, and has submitted the address and telephone number of the branch location to DFS within 30 days after insurance transactions began. [§Chapter 626.112(7)(b)]

HB633 repeals current law allowing certain insurance agencies to obtain a registration in lieu of a license. The bill converts all agency registrations to licenses effective October 1, 2015. This allows agencies to also obtain an agency license in other states, since other states only recognize licensed agencies. [§626.112(7)(d)]

An application for an insurance agency license must be signed by one of the following: owner, partner, officer, director, president, senior vice president, secretary, treasurer, or limited liability company member. An insurance agency may permit a third party to complete, submit, and sign an application on the insurance agency’s behalf; however, the insurance agency is responsible for ensuring that the information is true and correct. [§626.172(2)]

Each person operating an insurance agency and each location of a multiple location agency must designate a licensed and appointed agent in charge for each location. Effective January 1, 2015, HB633 defines agent in charge as the licensed and appointed agent responsible for the supervision of all individuals within an insurance agency.

Each insurance agency and branch office is required to designate an agent in charge and to file the agent’s name, license number, and physical address with DFS. A change of the designated agent in charge must be reported to DFS within 30 days. If the agency fails to designate a new agent in charge within 90 days after the designated agent has ended their affiliation, the agency license automatically expires 91 days after that date.

The agent in charge is accountable for misconduct or violations committed by licensees or agents under his or her supervision acting on behalf of the agency. However, the agent in charge is not criminally liable for the misconduct unless she or he personally committed the act or knew or should have known of the acts. [Source: House of Rep. Final Bill Analysis HB633]

Effective January 1, 2015, HB633 eliminates the three-year expiration of an agency license. An agency license will continue in force until canceled, suspended, revoked, or until it is otherwise terminated or expires by operation of law. [§626.382]

The department may disapprove the use of any true or fictitious name by any insurance agency on any of the following grounds:

• The name interferes with or is too similar to a name already filed and in use by another agency or insurer
• The use of the name may mislead the public
• The name states or implies the agency is an insurer, motor club, hospital service plan, state or federal agency, charitable organization, or entity that primarily provides advice and counsel rather than sells or solicits insurance

[§626.602]

CS/CS/HB 633 passed the House on March 27, 2014, and subsequently passed the Senate on April 25, 2014. The bill amends the insurance agency licensure law.

• Created a new type of insurance agent, an unaffiliated insurance agent, and specifies the scope of the license
• Requires DFS to immediately suspend the license or appointment of licensees charged with certain crimes
• Bars applicants for licensure with sealed or expunged criminal history records from denying or failing to acknowledge arrests covered by these records
• Exempts members of the United States Armed Forces, their spouses, and veterans who have retired within 24 months from the application filing fee for specified licenses
• Requires agents who recommend the surrender of an annuity or life insurance policy to provide financial information to the consumer
• Amends eligibility requirements for mediators under alternative dispute resolution programs administered by DFS
• Bars issuance of any new limited customer representative license after September 30, 2014
• Licenses issued to businesses that rent vehicles will cover the office, branch office, employee, or authorized representative located at the location

• Eliminates the insurance agency licensing requirement for agencies owned and operated by a single licensed agent under certain conditions
• Allows third parties to sign agency applications
• Specifies circumstances under which branch agencies do not have to be licensed
• Repeals provision allowing insurance agencies to obtain a registration in lieu of a license and converts all agency registrations to licenses
• Eliminates the three-year expiration period for agency licenses
• Provides for agency licenses to automatically expire if the agency does not designate a new agent in charge with DFS within 90 days after the agent in charge on record has left the agency
• Defines agent in charge and specifies responsibilities

[Source: Insurance Insights, May & June 2014 issue]