Volume 3, No. 3 - May 2012

Compliance Corner

We continue to see a pattern of noncompliance in the areas noted below. This section has been created to assist you in keeping your insurance business in compliance. The items are intended as reminders only and are not necessarily the exact text of the Florida Statutes or Florida Administrative Code. The legal cites have been provided for your further reference.

Rebating - When Allowed

No insurance agent or agency shall rebate any portion of a commission except as follows:

  • The rebate shall be available to all insureds in the same actuarial class.
  • The rebate shall be in accordance with a rebating schedule filed by the agent with the insurer issuing the policy to which the rebate applies.
  • The rebating schedule shall be uniformly applied in that all insureds who purchase the same policy through the agent for the same amount of insurance receive the same percentage rebate.
  • Rebates shall not be given to an insured with respect to a policy purchased from an insurer that prohibits its agents from rebating commissions.
  • The rebate schedule is prominently displayed in public view in the agent's place of doing business and a copy is available to insureds on request at no charge.
  • The age, sex, place of residence, race, nationality, ethnic origin, marital status, or occupation of the insured or location of the risk is not utilized in determining the percentage of the rebate or whether a rebate is available.

The insurance agent or agency shall maintain a copy of all rebate schedules for the most recent 5 years and their effective dates.

No rebate shall be withheld or limited in amount based on factors which are unfairly discriminatory.

No rebate shall be given which is not reflected on the rebate schedule.

No rebate shall be refused or granted based upon the purchase or failure of the insured or applicant to purchase collateral business.

[See 626.572, Florida Statutes] - Note: These guidelines do not pertain to title insurance. Additionally, bail bond agents are entirely prohibited from rebating commissions or premiums.

Requirement to Display Agency License or Registration

All Florida insurance agencies are required to display the Department-issued agency license or registration prominently and in a manner that makes the certificate clearly visible to any customer or potential customer who enters the agency under Subsection 626.172(4), Florida Statutes. Posting your Department-issued agency certificate provides consumers with the information they need to verify an agency's license/registration status prior to making any purchase decision. Failure to comply with this statute may result in disciplinary action to the agency. Please be sure you have prominently displayed your agency certificate today!

[See 626.172(4), Florida Statutes]


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