Chapter 1 — Regulatory Awareness

Any licensed agent or adjuster doing business under a firm or corporate name other than his or her own name must, within 30 days after the initial transaction of insurance under the business name, file with the department: [Source: §626.541]

• A written statement of the firm, corporate, or business name used
• 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

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.

A licensee must notify the department, in writing, within 30 days after a change of name, residence address, principal business street address, mailing address, or contact phone numbers (including business phone, cellphone, and email address).

An unaffiliated insurance agent is 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 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 both parties.

An unaffiliated insurance agent may not be affiliated with an insurer, insurer-appointed insurance agent, or insurance agency contracted with insurer-appointed insurance agents. However, these agents may continue to receive commissions on sales made before the date of appointment as an unaffiliated agent, as long as the agent discloses the receipt of commissions to the client when making recommendations. [Chapter 626.015(18)]

HB633 made significant changes to insurance agency licensure law. The Department of Financial Services (DFS) is responsible for licensing insurance agencies in accordance with s. 626.172, F.S.

• Eliminated the insurance agency licensing requirement for agencies owned and operated by a single licensed agent who conducts business in their own name and does not employ other insurance licensees
• Allows third parties to sign agency applications; however, the insurance agency remains responsible for ensuring information is true and correct
• Converted all agency registrations to licenses effective October 1, 2015
• Effective January 1, 2015, eliminated the three-year expiration of an agency license — an agency license continues in force until canceled, suspended, revoked, or otherwise terminated

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: (1) transacts business under the same name and federal tax identification number as the licensed agency and has designated a licensed agent in charge; and (2) has submitted to DFS the address and telephone number of the branch location within 30 days after insurance transactions began. [Source: §626.112(7)(b)]

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. [Source: §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” and specifies the scope of their responsibilities.

An agent in charge is defined as the licensed and appointed agent responsible for the supervision of all individuals within an insurance agency. Each business location must be in the active full-time charge of a licensed and appointed agent holding the required licenses for the lines of insurance transacted at the location.

The agent in charge may be responsible for additional branch locations if: (1) insurance activities requiring licensure do not occur at the location when an agent is not physically present; and (2) unlicensed employees at the location do not engage in insurance activities that require licensure.

• Each insurance agency must designate an agent in charge and 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
• When the agent in charge ends their affiliation with the agency, the agency must designate another agent in charge within 30 days
• If the agency fails to designate within 90 days, the agency license automatically expires 91 days after the designated agent ended their affiliation

Effective January 1, 2015, HB633 eliminated the three-year expiration of an agency license. An agency license continues in force until canceled, suspended, revoked, or until it otherwise expires by operation of law. [Source: §626.382]

The department may disapprove the use of any true or fictitious name by any insurance agency if the name interferes with or is too similar to a name already in use by another agency or insurer, if the use of the name may mislead the public, or if the name implies the agency is an insurer, state or federal agency, charitable organization, or entity that primarily provides advice rather than sells insurance. Uses of the words “state” or “states” in the agency name does not in and of itself imply that the agency is a state agency. [Source: §626.602]

CS/CS/HB 633 passed the House on March 27, 2014, and the Senate on April 25, 2014. Among other changes:

• Created a new type of insurance agent — the unaffiliated insurance agent
• Requires DFS to immediately suspend the license or appointment of licensees charged with certain crimes
• Bars applicants with sealed or expunged criminal history records from denying arrests covered by those records
• Exempts members of the U.S. Armed Forces, their spouses, and veterans who have retired within 24 months from the application filing fee for specified licenses
• Requires agents who recommend surrender of an annuity or life insurance policy to provide financial information to the consumer
• Bars issuance of any new limited customer representative license after September 30, 2014

• Eliminated agency licensing requirement for agencies owned and operated by a single licensed agent under certain conditions
• Converted all agency registrations to licenses
• Eliminated the three-year expiration period for agency licenses
• Agency licenses automatically expire if no new agent in charge is designated with DFS within 90 days after the prior agent in charge leaves
• Repeals current law governing branch agencies and creates s. 626.0428(4), F.S., to define agent in charge and specify responsibilities