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Volume 5, No.10 - October 2016

In The Know

- Keeping you informed is what it's all about

Suspension and Revocation - All License Types Except Bail Bond

Immediate suspension

The Department shall, upon receipt of information or an indictment, immediately temporarily suspend a license or appointment when the licensee is charged with a felony enumerated in subsection 626.207(3), F.S. Such suspension shall continue if the licensee is found guilty of, or pleads guilty or nolo contendere to, the crime, regardless of whether a judgment or conviction is entered, during a pending appeal. A person may not transact insurance business after suspension of his or her license or appointment. [See s.626.112, F.S.]

Suspension

If your insurance license is suspended in accordance with an Order issued by the Division of Legal Services, you will receive notification from the Division of Agent and Agency Services, Bureau of Licensing that your insurance license has been suspended along with any appointments associated with the license.

Pursuant to section 626.641, F.S. as a suspended licensee you shall not:

  • Engage in or attempt or profess to engage in any transaction or business for which a license or appointment is required under the Florida Insurance Code.
  • Directly or indirectly own, control, or be employed in any manner by any insurance agent or agency or adjuster or adjusting firm.
  • Serve as an officer or director of, or remain listed on any corporate records as an officer or director of, an insurance agency or adjusting firm.
  • Be named on or affiliated with any bank account that relates in any manner to an insurance agent or agency or adjuster or adjusting firm.

Please note that an insurance license and/or appointment is valid only for the person named and it is not transferrable to another person. You may not allow any other person to transact insurance by utilizing the license or appointment that was issued to you by the Department. [See s.626.441, F.S.]

After your suspension period has ended, you will be able to file an application for reinstatement of licensure; however, your application is subject to the same conditions as a first time applicant. The Department will not re-instate a license if the same circumstances for which the license was suspended still exist or are likely to re-occur. [See s.626.641(1), F.S.]

If you knowingly transact insurance or otherwise engage in insurance activities in this state without a license, or while your licenses are suspended you are committing a felony of the third degree. [See s.626.112(9), F.S.]

If you ever have your license suspended, you must file a reinstatement application via MyProfile, submit new fingerprints (if previous fingerprint results are over 1 year old) and pay the applicable application and fingerprint processing fees at time of application. If your license is suspended, you are required to reveal the administrative action on the reinstatement application or be subject to additional administrative action.

Note: This section does not apply to bail bond agents under immediate temporary suspension.

Revocation

If your insurance license are revoked in accordance with an Order issued by the Division of Legal Services, you will receive notification from the Division of Agent and Agency Services, Bureau of Licensing that your insurance license has been revoked along with any appointments associated with the license.

Pursuant to section 626.641, F.S., if your license is revoked, you shall not:

  • Have the right to apply to the Department for another license under the Florida Insurance Code within two (2) years of the effective date of the revocation.
  • Engage in or attempt or profess to engage in any transaction or business for which a license or appointment is required under the Florida Insurance Code.
  • Directly or indirectly own, control, or be employed in any manner by any insurance agent or agency or adjuster or adjusting firm.
  • Serve as an officer or director of, or remain listed on any corporate records as an officer or director of, an insurance agency or adjusting firm.
  • Be named on or affiliated with any bank account that relates in any manner to an insurance agent or agency or adjuster or adjusting firm.

If you knowingly transact insurance or otherwise engage in insurance activities in this state without a license, or while your license is revoked, you are committing a felony of the third degree.

Compensation and Other Inducements

An insurance agent, insurance agency, customer representative, or insurance agency employee is prohibited from directly or indirectly accepting any compensation, inducement, or reward from an inspector for the referral of the owner of the inspected property to the inspector or inspection company. This prohibition applies to an inspection intended for submission to an insurer in order to obtain property insurance coverage or establish the applicable property insurance premium. [See s.626.621(15), F.S.]

License and Appointment Required

In order to solicit and transact insurance you must be licensed by the Department and appointed by the appropriate appointing entity or person. Transacting insurance is defined in s.624.10, F.S. and considered the solicitation (as defined in s.626.112(1)(b), F.S.) or inducement to purchase an insurance product, engaging in the preliminary negotiations for the sale, effectuation of a contract of insurance and the transaction of matters subsequent to the transaction of a contract for insurance.

Regarding appointments, it is ultimately your responsibility to ensure you have been appointed by the appropriate entity or person. Insurance agencies cannot appoint an agent.

The Florida Statutes Are Available Online

The Florida Statutes can be viewed at Online Sunshine - Title XXXVII Insurance.