Chapter 2 — CE Requirements & Advertising

An individual employed by an agent/agency on salary who is a full-time clerical worker, with incidental taking of insurance applications, quoting, or receiving premiums on incoming inquiries in the office, is not deemed an agent or customer representative if compensation does not include commissions on business and is not related to the production of applications, insurance, or premiums. However, an employee cannot perform duties requiring a license or appointment. These office employees are also prohibited from initiating contact with anyone for the purpose of soliciting insurance. [§626.0428]

Except with respect to a limited license, the license of a life agent covers all classes of life insurance business. The license of a health agent covers all kinds of health insurance and is not limited to a particular class of health insurance (with the exception of a limited license as a travel insurance agent).

You may not solicit or sell variable life insurance, variable annuity contracts, or any other indeterminate value or variable contract, unless the individual has successfully completed a licensure examination relating to variable annuity contracts authorized and approved by the department. Except as otherwise provided, no individual can, unless licensed as a life agent:

• Solicit insurance, annuities, or procure applications
• Engage or hold yourself out as engaging in the business of analyzing or abstracting insurance policies or of counseling, advising, or giving opinions relative to insurance contracts
• In Florida or with a resident of Florida, offer or attempt to negotiate on behalf of another a viatical settlement contract

No licensed health agent or insurer can pay commissions for services as a health insurance agent in Florida unless such a person holds a valid license and appointment to act as a health insurance agent as required by law. [Source: §626.838]

CE applies to individuals licensed to engage in the sale of insurance or adjustment of insurance claims for all lines of insurance for which an exam is required for licensing. Licensees who are unable to comply with CE requirements due to active duty in the military can submit a written request for a waiver. [Source: §626.2815]

Excess hours accumulated during any two-year compliance period may be carried forward to the next compliance period. For good cause shown, the department may grant an extension of time not to exceed one year.

A nonresident licensee who must complete CE requirements in the home state can use the home state requirements to meet Florida’s CE requirements if the licensee’s home state recognizes reciprocity with Florida’s CE. A nonresident licensee whose home state does not have CE requirements must meet the CE requirements of Florida.

• Any part of the Life Underwriter Training Council Life Course Curriculum: 24 hours; Health Course: 12 hours
• Any part of the American College “CLU” diploma curriculum: 24 hours
• Insurance Institute of America’s program in general insurance: 12 hours
• American Institute for CPCU professional designation program: 24 hours
• Certified Insurance Counselor program: 21 hours
• Accredited Advisor in Insurance: 21 hours
• Title agents — Certified Land Closer (CLC) professional designation: 24 hours
• Title agents — Certified Land Searcher (CLS) professional designation: 24 hours
• Any insurance-related course approved by the department and taught by an accredited college or university: 12 hours per credit hour granted

The department may immediately terminate or refuse to renew the appointment of an agent or adjuster who has been notified that the CE requirements have not been certified, unless the agent or adjuster has been granted an extension or waiver.

Within 30 days after final disposition of an administrative action against a licensee or agency by a governmental or regulatory agency in any state or jurisdiction relating to the business of insurance, the sale of securities, or activity involving fraud, dishonesty, trustworthiness, or breach of a fiduciary duty, the licensee or agency must submit a copy of relevant legal documents to the department. [Source: §626.536]

Any agent, TPA, or insurer with knowledge of an unlicensed insurer doing business in Florida is required to report by mail or phone:

• Organizational information concerning the reportable MEWA, PEO arrangement, welfare benefit plan, or other unlicensed insurer
• Information on any insurance or reinsurance contracts, benefits, or coverage
• Names, addresses, and phone numbers of any officers or agents of the unlicensed insurer
• Names, addresses, and phone numbers of any employers, employees, or individuals who may be enrolled by or receiving services from the unlicensed insurer

Advertising by any regulated business must employ stringent methods of approval to refrain from misleading the public. An administrator can use only advertising pertaining to the business underwritten by an insurer as has been approved in writing by the insurer in advance of its use. [626.887]

Advertising materials and communications developed by insurers must clearly indicate the communication relates to insurance products. When soliciting or selling insurance products, agents are required to clearly indicate to prospective insureds that the agent is acting as an insurance agent with regard to insurance products and identified insurers.

There is no liability to the insured on the part of, and no cause of action may arise against any licensed and appointed insurance agent for the insolvency of any risk-bearing entity when such entity has been authorized or approved by the office to do business in Florida. However, if the licensed and appointed agent was a controlling producer of the risk-bearing entity within two years preceding the insolvency, the agent may be subject to a penalty. [§626.9531]

Gifts valued at $25 or less may be given to insureds, prospective insureds, and others for the purpose of advertising. [§626.9541(1)(m)]

Advertising, offering, or providing free insurance as an inducement to the purchase or sale of real or personal property is strictly prohibited. Using the word “free” or words that imply the provision of insurance without a cost in connection with advertising any kind of goods, merchandise, or service is also prohibited. [§626.9541(1)(n)]

This does not apply to:

• Insurance of loss of or damage to the real or personal property involved in the sale or services under a policy covering the interests of the seller or vendor
• Blanket disability insurance
• Credit life or credit disability insurance
• Any individual, isolated, nonrecurring, unadvertised transaction not in the regular course of business
• Title insurance
• Any purchase agreement involving the purchase of a cemetery lot where any balance due is forgiven upon the death of the purchaser
• Life insurance, trip cancellation insurance, or lost baggage insurance offered by a travel agency as part of a travel package