Agency Personnel Powers, Duties, and Limitations
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 (with the exception of a limited license as a travel insurance agent). [§626.311(1), §626.311(2)]
You may not solicit or sell variable life insurance, variable annuity contracts, or any other indeterminate value or variable contract, unless you have successfully completed a licensure examination relating to variable annuity contracts authorized and approved by the department. [§626.7845]
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 (exceptions: consulting actuary advising an insurer; counseling and advising of labor unions, associations, trustees, employers, or other business entities relative to their interests under insurance benefit plans)
- 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 person holds a valid license and appointment to act as a health insurance agent as required by law. Exception: a health insurer may pay a commission to an incorporated insurance agency if all employees, stockholders, directors, or officers who solicit, negotiate, or effectuate health insurance contracts are qualified health insurance agents. [Source: §626.838]
Continuing Education
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 unable to comply with CE requirements due to active duty in the military can submit a written request for a waiver. [Source: §626.2815]
- Each licensee must complete 20 hours of elective CE every two years
- A licensee licensed for six or more years must complete a minimum of 16 hours of elective CE every two years
- A licensee licensed for 25 years or more who is a CLU, CPCU, or holds a B.S. in risk management/insurance must complete a minimum of six hours of elective CE every two years
- Excess hours accumulated during any two-year compliance period may be carried forward to the next compliance period
- Compliance with CE requirements is a condition precedent to the issuance, continuation, reinstatement, or renewal of any appointment
Each licensee (except a title insurance agent) must complete a 4-hour law and ethics update course every two years specific to the license held (reduced from 5 hours on January 1, 2022). The course must address all lines of insurance for which examinations and licenses are required and include: insurance law updates, ethics for insurance professionals, disciplinary trends and case studies, industry trends, premium discounts, determining suitability of products and services, and similar insurance-related topics.
A licensee who holds multiple insurance licenses must complete an update course specific to at least one of the licenses held. For good cause shown, the department may grant an extension of time not to exceed one year.
A nonresident licensee who must complete CE in the home state can use the home state requirements to meet Florida’s requirements if the home state recognizes reciprocity with Florida’s CE. A nonresident whose home state has no CE requirement and is not licensed in a state with CE requirements that reciprocates with Florida must meet Florida’s CE requirements directly.
Reporting Requirements
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 enrolled by or receiving services from the unlicensed insurer
Advertising
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. [Source: §626.887]
Advertising materials and communications developed by insurers must clearly indicate the communication relates to insurance products. When soliciting or selling insurance, agents are required to clearly identify that the agent is acting as an insurance agent and identify the authorized insurer.
There is no liability to the insured on the part of 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, or services connected with, real or personal property, is strictly prohibited. Using the word “free” or words implying provision of insurance without cost, in connection with advertising or offering for sale of any kind of goods, merchandise, or service, is also prohibited. [§626.9541(1)(n)]
Exceptions include: blanket disability insurance, credit life or credit disability insurance, title insurance, and life insurance, trip cancellation insurance, or lost baggage insurance offered by a travel agency as part of a travel package.