Volume 5, No. 4 - April 2016

Compliance Corner

This section has been created to assist you in keeping your insurance business in compliance. The items are intended as reminders only. Note: Division publications may include references to the Florida Statutes and/or the Florida Administrative Code. The laws noted in our publications are/were in effect at the time of publication but may have been repealed, amended or replaced and new laws may have been enacted subsequently.

Compliance Topic of the Month: Customer Representatives ~ Appointment Required To Transact Insurance

If you are currently working in an agency as a customer representative, you should confirm that you are properly appointed by your supervising general lines agent which may also be your agency's “agent-in-charge”, or the licensed agency you work for.

Per Florida Statutes 626.112, License and appointment required; a customer representative may not engage in soliciting insurance without a valid license and appointment. A customer representative may only be appointed by a general lines licensed insurance agent or by the agency’s license in order to engage in the solicitation of insurance.

Florida Administrative Rule 69B-213.130 further defines the customer representative’s authority to include the following functions:

a) Take insurance applications.

b) Give quotes.

c) Interpret policies.

d) Explain procedures.

e) Give insurance advice.

f) Solicit new customers at the agent’s office or by telephone from that office.

g) Bind new or additional coverages.

h) This section further outlines the preliminary work for assisting in processing claims.

Performing any of the above duties requires an appointment.

If you require an appointment, customer representative appointments are completed by a general lines agent or insurance agency through eAppoint. The eAppoint system is accessed through the general lines or insurance agency's MyProfile account by clicking the “Access eAppoint Website” link. Appointments that require backdating to a date more than two years will require completion of form DFS-H2-1105 for consideration by the Department.

In addition to the appointment, the supervising agent must complete the “Designation of Supervising Agent for Customer Representatives or Limited Customer Representatives” form DFS-H2-1124 on behalf of the 4-40 licensee, and send it to the Bureau of Licensing.

If you have any questions or concerns, please email AgentLicensing@MyFloridaCFO.com.

Public Adjusters - Are You Ready For Hurricane Season?

The time to be sure your license is in compliance is now - not when a storm is heading our way! This is a short checklist to ensure your license is in good standing:

  • Is your license active?
  • Are you self-appointed or appointed by an adjusting firm?
  • Do you have the required $50,000 surety bond?
  • Are you compliant with your continuing education requirements?
  • Has a primary adjuster been designated for your firm?
  • Is all contact information up-to-date? You can update it at MyProfile.
  • Are any apprentices licensed and appointed?
  • Do you have your Department issued license with you?

Florida Surplus Lines Service Office ~ Agent Affidavit Reporting Requirements Amended

Recently passed House Bill 651 was signed into law by Governor Scott. The bill, effective July 1, 2016, amended language to s.626.931, F.S. The amended language relieves surplus lines agents who have not transacted business during a reporting time frame from having to file a quarterly affidavit.

Surplus lines agents who have transacted business during the reporting time frame are still required to follow the affidavit filing requirements found in s.626.931, F.S.

Title Agency Data Call 2016

2016 marks the second year title insurance agencies are required under s.626.8437(11), F.S. to submit information to the Florida Office of Insurance Regulation (OIR) under the data call required by section 627.782(8), Florida Statutes. Title agencies have until May 31, 2016 to make their submission to the OIR. The OIR will send an email to each licensed title agency in Florida to remind them of the new law with instructions on how to complete the process accurately.

The Title Agency Data Call is performed by the title agency by first downloading the template from the OIR website to complete offline. To do this, the agency will need to create an account and subscribe to your agency in the Data Collection and Analysis Modules (DCAM) used by the OIR, which is located at https://apps.fldfs.com/DCAM/Logon.aspx.
(The user's guide for DCAM is located at: https://apps.fldfs.com/DCAM/Help/DCAMUserGuide.pdf)

Once the agency's data template form is completed and the agency is ready to certify it is accurate, the agency must upload the form to the OIR before the deadline, May 31, 2016.

The data template has seven tabs or worksheets:

  1. Version: includes the OIR contact information and reporting date reminder
  2. Instructions: data template must be downloaded from DCAM for the purpose of reporting information
  3. Report_Lines: Two columns extend down a series of questions and required responses (enter either text or numeric characters in the two columns, as shown)
  4. Schedule A: Additional agency information
  5. Schedule B: Agent activities
  6. Schedule C (Residential): Title agent statistical information submission for 1-4 residential units
  7. Schedule C (Commercial): Title agent statistical information submission for commercial units

Each agency's submission must contain a Filing Certification signed by an agency officer (electronic signature accepted), stating the information provided is accurate to the best of their knowledge and belief. A sample copy is available on the OIR's website at: www.floir.com/siteDocuments/CertificationOfTitleDataSubmissionExample.pdf

The agency may include a cover letter, but this is an optional component for the filing.

Each agency is encouraged to include any additional or optional information that is deemed important to the overall submission. These optional items may be uploaded as PDF documents under the "Other Information/Documents" component.

A filing will not be recorded as complete unless the agency clicks on "Submit".

PLEASE NOTE:

It is important to know that the agency's submission is not considered to be complete until the agency receives an email receipt showing the agency's file log number. If you make a submission but do not receive the confirmation email, please let OIR know.

If you have any questions regarding this filing process, please contact the OIR's Market Data Collections Unit at 850-413-3147 or via email: TitleAgencyReporting@floir.com.

Compliance Information

Department licensees and consumers can access compliance information at the Division's web page Compliance Information. Additional information is available by type of license at our Frequently Asked Questions web page.