In The Know - Summer 2023
Adjusters - Prepare for Hurricane Season Now!
Emergency Adjusters
We’re reminding all lines adjusters who would like to respond to the aftermath of hurricanes or any other natural disaster in Florida that Emergency Adjusters must be licensed and appointed by an insurer or an adjusting firm to legally adjust insurance claims in Florida. Adjusters attempting to enter restricted areas after a disaster without proper license credentials will be turned away. Anyone found adjusting claims without a license could be subject to Department enforcement action and/or criminal penalties.
Emergency adjuster licenses and appointments made last hurricane season are not valid for the 2023 hurricane season. Emergency adjuster licenses are valid for 180 days from issue and do not renew. If you plan to adjust claims in Florida during the 2023 hurricane season, you are responsible for making sure you are property licensed and appointed prior to adjusting claims.
Public Adjusting Firms and Adjusters
Hurricane season started June 1. The time to verify 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 adjuster license active? Is your public adjuster firm license active?
- You can search for the firm's license using our Licensee Search portal.
- Are you self-appointed or appointed by an adjusting firm?
- Have you filed the required $50,000 surety bond filed with AgentLicensing@MyFloridaCFO.com?
- Are you compliant with your continuing education requirements? You can review your continuing education status through your MyProfile account.
- Has a primary adjuster been designated for your firm?
- Is your contact and other demographic information up-to-date? You can update it via your online secure MyProfile account.
- Are any apprentices licensed and appointed?
- Do you have your Department-issued license with you?
We urge all Public Adjusters and firms to review Florida Statutes Chapter 626, Part VI and Rule Chapter 69B-220, F.A.C to ensure you understand the laws and rules which regulate your license.
Legislative Summary 2023
House Bill 1185 - Department of Financial Services (Bill Text)
The DFS Division of Insurance Agent and Agency Services is responsible for the licensing and regulation of insurance agents, adjusters, insurance agencies, as well as related personnel and business entities.
Insurance Agency Names
Licensees with names including the words "Medicare" or "Medicaid" will automatically expire July 1, 2023 unless the words are removed from the name before that date.
Adjusting Firm Names
The Department may disapprove the use of any true or fictitious name other then the bona fide name of an individual if the name is identical or too similar to a name already filed and in use by another adjusting firm or agency or could be misleading to the public. [s. 626.602, F.S.]
Public Adjusters and Public Adjusting Firms
Public adjuster definition changed to include a person, other than an attorney, who completes or files an insurance claim for an insured or third-party claimant regardless of how that person describes their services.
[s. 626.854(1), F.S.]- A public adjuster entering into a public adjusting contract after July 1, 2023, may not collect a fee from an insured unless they have a written contract with the insured or the insured's representative. [s. 626.854(6)(a), F.S.]
- May not contract for services to be provided by a third party on behalf of an insured or in pursuit of a settlement of the named insured's claim if the cost of those services are to be borne by the named insured, unless the named insured agrees in writing to procure the services, and the agreement is entered into after the date of the public adjusting contract and before the services are provided. [s. 626.854(6)(b), F.S.]
- A public adjuster who contracts with a third-party to assist in the settlement of an insured's claim without the written consent of the insured, must pay the fees for the third-party's services and not charge them back to the insured. [s. 626.854(6)(c), F.S.]
- If the public adjusting contract was entered into due to events that are the subject of a declaration of emergency by the Governor, the insured or claimant may cancel the public adjusting contract within 30 days after the date of loss or 10 days after the date the contract was executed, whichever is longer. The public adjuster's contract must include, in minimum 18-point bold type immediately before the insureds signature language to include that information and notification the insured may cancel the contract if the public adjuster fails to provide the insured or claimant and the insurer with a copy of the estimate within 60 days of the effectuation of the public adjuster's contract.
- Additional limitations on public adjuster's fees - A public adjuster may not charge, agree to, or accept from any source compensation, payment, commission, fee, or any other thing of value in excess of:
One percent of the amount of insurance claim payments or settlements, paid to the insured by the insurer for any coverage part of the policy where the claim payment or written agreement by the insurer to pay is equal to or greater than the policy limit for that part of the policy, if the payment or written commitment to pay is provided within 14 days after the date of loss or within 10 days after the date on which the public adjusting contract is executed, whichever is later. [s. 626.875, F.S.]
Zero percent of the amount of insurance claim payments or settlements, paid to the insured by the insurer for any coverage part of the policy where the claim payment or written agreement by the insurer to pay before the date on which the public adjusting contract is executed. [s. 626.875, F.S.]
- Display of license - must at all times be posted in a conspicuous place in the principal place of business of the license holder. If the licensee is conducting business away from the place of business such that the license cannot be posted, the licensee shall have such license in his or her actual possession at the time of carrying on such business. [s. 626.875, F.S.]
- The records of the adjuster relating to a particular claim or loss shall be retained in the adjuster’s place of business for a period of not less than 5 years after completion of the adjustment and shall be available for inspection by the department between the hours of 8 a.m. and 5 p.m., Monday through Friday, excluding state holidays.
[s. 626.875, F.S.] - Public adjuster contracts - all contracts for public adjuster services must be in writing in at least 12-point type, be titled “Public Adjuster Contract,” and prominently display the following statement on the contract in minimum 18-point bold type before the space reserved in the contract for the signature of the insured:
“Pursuant to s. 817.234, Florida Statutes, any person who, with the intent to injure, defraud, or deceive an insurer or insured, prepares, presents, or causes to be presented a proof of loss or estimate of cost or repair of damaged property in support of a claim under an insurance policy knowing that the proof of loss or estimate of claim or repairs contains false, incomplete, or misleading information concerning any fact or thing material to the claim commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, Florida Statutes.” [s. 626.8797, F.S.]
- A public adjuster must provide the insured with a separate disclosure document to be signed by the insured, on a form adopted by the department, regarding the claim process which accomplishes the following:
Defines the following types of adjusters who may be involved in the claim process: company adjuster, independent adjuster, and public adjuster.
are the subject of a declaration of a state of emergency by the Governor, an insured or a claimant may cancel the public adjuster’s contract to adjust a claim without penalty or obligation within 30 days after the date of loss or 10 days after the date on which the contract is executed, whichever is longer.
The public adjuster shall provide an unaltered copy of the executed disclosure document to the insured at the time of execution. [s. 626.8796, F.S.]
A contract that does not comply with this section is invalid and unenforceable. [s. 626.8796, F.S.]
Advertising
Establishes it is an unfair method of competition, or an unfair or deceptive act or practice, if a licensee fails to disclose a third party that it receives royalties, referral fees, or other money for sponsorship, marketing, or use of third-party branding for a health insurance contract. [s. 626.9541, F.S.]
House Bill 487 - Department of Financial Services (Bill Text)
- Removes the requirement that our examination vendor has fingerprinting capabilities in their test centers.
- Relieves title insurance, life insurance, and annuity insurance agents and agencies from the requirement that they notice all active policyholders of an office closure of more than 30 days because the related policies are not continually serviced by the agent or agency.
- Allows a licensee who has an advanced degree beyond a Bachelor’s degree eligibility for a reduced continuing education requirement - six hours every two years, rather than 20 hours every two years, or other variations thereof depending on experience and credentials.
- Allows licensees holding a limited license in motor vehicle damage and mechanical breakdown insurance, industrial fire insurance, burglary insurance, or credit insurance to hold multiple licenses.
- Expands the type of criminal background that allows DFS to suspend, revoke, or refuse to renew or continue the license or appointment of a licensee to include a misdemeanor related to the financial services business in addition to any felony or crime punishable by one year or more in prison.
- Allows DFS to suspend, revoke, or refuse to renew or continue the license or appointment of a licensee who has lost their resident license in another state.
- Allows DFS to suspend, revoke, or refuse to renew or continue the license or appointment of a title agent or agency that misappropriates, converts, or unlawfully withholds funds related to an escrow agreement, real estate sales contract, or settlement of a real estate transaction; or is the subject of an adverse action against a license or similar credential in another state, a court of competent jurisdiction, or federal agency, or similar. [s. 626.8437, F.S.]
- Changes the reinsurance intermediary credential from a license to an appointment and removes the $50 application and license fee for a reinsurance intermediary; such intermediaries are otherwise licensed as another type of insurance licensee.
- DFS may suspend an insurer’s ability to appoint agents when the insurer fails to timely pay the exchange of business fee the insurer is required to pay for the agent and applicable to reported agent production activity.
- Broadens the qualifying continuing education courses that public adjusters may take from those specially designed for public adjusters to any related to commercial and residential property and casualty coverage, claim adjusting, and any other adjuster courses approved by DFS.
- Allows DFS to deny the privileges of a temporary adjuster who has been lawfully appointed during a catastrophe or emergency for any violation described in Chapter 626, F.S., rather than only those in ss. 626.611 and 626.621, F.S.
- Allows for the expiration of a health insurance navigator’s registration if the navigator fails to maintain a valid, active federal registration.
- Creates a limited insurance license to allow already licensed preneed funeral sales agents to be appointed to represent the preneed insurer.
Bail Bonds
- The “temporary bail bond agent” license type will no longer be issued as of July 1, 2023; all existing temporary bail bond licenses will expire on June 30, 2025.
- The employment reports of a temporary bail bond agent are no longer required to be submitted to the department.
- Anyone currently licensed as a temporary bail bond agent may apply for a 2-34 Limited Surety Agent license as long as they meet the other qualifications for the license.
- Applicants for a bail bond license must have successfully completed the pre-licensing education requirements within 24 months of submitting the application.
- A bail bond agency that holds a current and valid registration number with the department shall have its registration automatically converted to a license on July 1, 2024.
- The department is to start issuing licenses to bail bond agencies starting January 1, 2024.
- The primary bail bond agent (now referred to as the "Bail Bond Agent in Charge") of an agency must have a minimum of 24 months of experience as a licensed bail bond agent immediately preceding the appointment to primary bail bond agent. [s. 648.33875(2), F.S.]
- Starting July 1, 2025, insurers must certify that appointees have signed a specified sworn statement regarding any owed premiums, discharges, and forfeitures.
- A bail bond agency’s license will expire by operation of law for failure to designate a new agent in charge following separation of the previous designee. [ss. 648.30(2)(3), F.S.]
- Both the bail bond agent and the bail bond agency will be required to be appointed with the insurer issuing the bail bond.
- In-person "Classroom" education may be conducted in in-person and through virtual formats consistent with the format allowed for other license types. s.
- Advertising in jails must include the advertiser's email and web addresses.
- Prohibits all in-person or telephone contact by bail bond agents or agencies between 9:00 pm and 8:00 am, regardless of the type of criminal charges(s).
Claims Mediation
- Mandates that a property insurer either make a claim determination or elect to repair under applicable law prior to participating in mediation allowed by statute.
- Allows DFS to suspend an insurer’s ability to appoint agents to represent the insurer if the insurer does not pay required mediation fees timely.
- Removes a requirement that DFS adopt rules governing qualifications, denials of application, suspension, revocation of approval, and penalties applicable to mediators related to DFS property insurance claim mediation program.
- Provides that mediation costs must be reasonable, that the insurer bears all such costs, but requires the policyholder must pay the costs of rescheduling mediations in certain circumstances. If an insurer representative attends a mediation, but lacks authority to settle the claim, the insurer is deemed to have not appeared, in which case the insurer must pay the insured’s actual costs of attendance and the cost of rescheduling the mediation, including DFS’ costs. If the per-mediation-event administrative fee is not paid timely, the mediation administrator may request that DFS suspend the insurer’s ability to appoint agents to represent the insurer.
- Removes mediation-related tolling of time to file a lawsuit on the disputed claim.
- Deletes a requirement that the policy include details on requirements for filing of first-party claims mediation.
- Repeals mediation program requirements, including:
That the mediation must be a formal process;
Mediators be randomly selected, with options and process to handle rejections of the selected mediator; and,
Equal sharing of costs.
- Limits claim eligibility until an insurer has either made a claim determination or elected to repair the property.
- Authorizes DFS to contract with an administrator to oversee sinkhole-related alternative dispute resolution provided by law.
- Allows mediation of issues involving litigants referred by a county court or circuit court.
DFS, Division of Investigative and Forensic Services (DIFS)
- Allows DIFS to initiate, not just conduct, investigations and specifies that such investigations may cover any matter under the jurisdiction of the CFO, including the CFO’s role as State Fire Marshal; and
- Expands DIFS authority to refer suspected criminal violations for prosecution to include criminal violation of federal law, in addition to state law criminal violations.
- Prohibits insurance agents from selling nonprofit religious organization health coverage that is exempt from the Florida Insurance Code.
Adjuster Licensing Examination Exemption
Authorizes the Professional in Claims (PIC) designation from 2021 Training, LLC, to be accepted as an exemption from the adjuster licensing examination.
Insurance Fraud
Removes the requirement that a conviction be obtained to qualify for a reward under the Anti Fraud Reward Program. A tip that leads to an arrest will be eligible for the reward.
Annuities*
The law allows us to adopt the most recent NAIC (National Association of Insurance Commissioner's) model act.
[s. 627.4554, F.S.]
*Effective January 1, 2024.
Annuity Suitability
Agents are required to act in the best interest of the consumer when making a recommendation of an annuity without placing the financial interest of the agent or insurer ahead of the consumer’s interest. [s. 627.4554(5)(a), F.S.]
Agents should make a reasonable effort to obtain consumer profile information from the consumer before making a recommendation of an annuity. The consumer profile information means information that is reasonably appropriate to determine if a recommendation addresses the consumer’s financial situation, insurance needs, and financial objectives, including at a minimum the following:
- Age,
- annual income,
- financial situation, experience, objectives, and resources,
- insurance needs,
- intended use,
- financial time horizon,
- existing assets,
- liquidity needs,
- liquid net worth,
- risk tolerance,
- tax status.
[s. 627.4554(5)(a)2.a., F.S.]
Before an agent recommends an annuity, the agent is to disclose to the consumer a description of the scope and terms of the relationship between the agent and the consumer, along with the role of the agent in the transaction.
The agent is to provide the consumer with an affirmative statement that says what products the agent is licensed and authorized to sell. [s.627.4554(5)(a)2.a.(III), F.S.]
The agent is to give the consumer a description of the sources and types of cash and noncash compensation to be received by the agent, including how the agent is being compensated for the annuity being recommended.
[s. 627.4554(5)(a)2.a.(IV), F.S.]
Agents who engage in the sale of annuity products are required to complete a one-time 4-hour training course that is separate from the agent’s continuing education requirement. This course is to be completed by July 1, 2024.
[s. 627.4554(6)(b), F.S.]
Reduces the time that an insurer has to cancel a policy
for reasons other than material misstatement, nonpayment of premium, or failure
to comply with underwriting requirements from 90 days to 60 days, but allows
Citizens Property Insurance Corporation 90 days to underwrite when it has
assumed policies from insurers placed into receivership.
Service Agreements and Manufacturer Warranties
Provides an additional exception to unearned premium
reserve requirements for service agreement companies; revises solvency
requirements for manufacturers who sell service warranties.
Effective July 1, 2023.
Senate Bill 1002 - Motor Vehicle Windshield Claims and Practices (Bill Text)
A person, including an insurer, agent, adjuster, or any person or entity acting on the insurer’s, agent’s, or adjuster’s behalf, may not require a claimant to use a particular company or location for the provision of motor vehicle windshield glass replacement, repair, or calibration services or windshield glass products which are subject to a claim for replacement, repair, or calibration, in whole or in part, under the terms of a personal lines automobile insurance policy.
An insurer, agent, adjuster, or any person or entity acting on the insurer’s, agent’s, or adjuster’s behalf may provide an explanation of motor vehicle comprehensive coverage benefits and any applicable limit of liability to a claimant.
An insurer, or any person or entity acting on the insurer’s behalf, must provide an actuarially sound discount to the insured if they offer, and an insured accepts, a policy that contains a repair arrangement for the provision of windshield glass replacement, repair, or calibration services or windshield glass products.
This section applies to motor vehicle windshield glass claims under the comprehensive or combined additional coverage provisions of a personal lines motor vehicle insurance policy. [s. 627.7291, F.S.]
Effective May 25, 2023.
Senate Bill 7052 - Insurer Accountability (Bill Text)
Specifying a requirement for the Office of Insurance Regulation in referring criminal violations; authorizing electronic responses to certain requests from the Division of Consumer Services of the Department of Financial Services concerning consumer complaints; revising requirements and conditions for certain insurer market conduct examinations after a hurricane; specifying factors the office may consider in determining whether the continued operation of an insurer may be deemed to be hazardous to its policyholders or creditors or to the general public; revising and specifying applicable fines for unfair methods of competition and unfair or deceptive acts or practices, etc.
Effective July 1, 2023.
House Bill 881 - My Safe Florida Home Program (Bill Text)
My Safe Florida Home Program; Provides that licensed inspectors are to provide hurricane mitigation inspections on site-built, single-family, residential properties; revises information provided to homeowners as part of hurricane mitigation inspection; revises criteria for mitigation grant eligibility for homeowners; revises amount low-income homeowners may receive from DFS under grant program; removes provision authorizing low-income homeowners to use grant funds for specified purposes; removes provision requiring contracts entered into by DFS to be reviewed & approved by LBC; requires DFS to develop certain quality assurance & reinspection program.
Effective July 1, 2023.
FIFEC Annual Meeting - July 12 - 14, 2023
Registration is open for the 31st Annual FIFEC Conference scheduled for July 12 – 14, 2023, at the Renaissance Orlando at SeaWorld, 6677 Sea Harbor Drive, Orlando, Florida.
The Florida Insurance Fraud Education Committee (FIFEC) was founded as a not-for-profit, joint venture between Florida’s Division of Investigative and Forensic Services and volunteers from the special investigation units of insurance companies serving Florida. FIFEC is staffed entirely by volunteers with a mission to plan and host this annual three-day conference to provide education on identifying, investigating and prosecuting insurance fraud cases.
We are happy to report that all 2023 FIFEC conference courses have been accredited for continuing education credits.
- Florida 620 licensed adjusters may earn up to 16 Florida CE credits by attending the FIFEC Conference and completing the 8 classes they selected from the 65 presentations offered covering a wide range of important, timely and relevant insurance topics.
- Most of the classes are also accredited to satisfy CE requirements for Florida 220 licensed agents!
- Florida licensed attorneys may also earn up to 15.5 CLEs, including up to 9 Ethics and 16.5 Technology CLEs.
FIFEC registration is extremely affordable and includes your choice of 8 classes; the Exhibitors’ Welcome Reception; The FIFEC Awards Luncheon Banquet; 2 continental breakfasts; 2 evening networking events with entertainment and refreshments; delicious snacks during breaks, a conference program and a welcome gift.
This is our first year at the Renaissance Orlando at SeaWorld. This beautiful hotel & conference center is offering a special FIFEC rate to mark this inaugural event starting at $179/night which includes the option to select or waive the $40 resort fee, and complimentary parking. This special rate and benefits are only available when reserving via the link listed below.
Click https://www.fifec.org/conference-information to:
- Review this year’s class offerings,
- Register for the conference,
- Reserve your hotel room,
- Volunteer to assist at FIFEC,
- Nominate a worthy candidate for a FIFEC Award.
Don’t delay your registration and take advantage of the discounted rate currently available. Need additional information, visit www.fifec.org or write to us at info@fifec.org.
FinCEN Renews and Expands Real Estate Geographic Targeting Orders
The terms of the GTOs are effective beginning April 25, 2023, and ending on October 21, 2023. The GTOs continue to provide valuable data on the purchase of residential real estate by persons possibly involved in various illicit enterprises. Renewing the GTOs will further assist in tracking illicit funds and other criminal or illicit activity, as well as continuing to inform FinCEN’s regulatory efforts in this sector. Read the press release...
Alternate Text File: Helping Consumers No Longer Eligible for Medicaid: What Marketplace Agents and Brokers Need to Know
Navigators and Certified Application Counselors (CAC)
