Volume 1, No. 8 - November 2010
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.

Unlicensed Insurance Agency Personnel

Unlicensed personnel have limited discretion as to how they can support the operations of an insurance agency. Permitted and prohibited activities are described in Chapter 69B-222 of the Florida Administrative Code. Incidental activities and compensation are two of the most important points to remember when employing unlicensed personnel. Incidental activities as described in the rules cannot exceed 10% of an employee's overall activities and compensation cannot be made based on the individual production of the unlicensed person. The following actions are never allowable by unlicensed personnel:

  1. Comparing insurance products; advising as to insurance needs or insurance matters; or interpreting policies or coverages.
  2. Binding new, additional, or replacement coverage for new or existing customers; or binding coverage on or recording additional property under existing policies.
  3. Soliciting the sale of insurance by telephone, in person, or by other communication. However, the unlicensed person may telephone persons to set appointments for licensed and appointed agents, customer representatives, or to obtain basic policy information as to existing insurance coverage. The unlicensed person may not engage in a substantive discussion of insurance products.

Ethically Placing Coverage Properly
You should know the policy language for the companies you are doing business with and make sure that you fully understand the coverage. For example, if you have a customer who has a sign for their business venture in their car's rear window, you could be held liable if it is determined that you knew of the sign and didn’t inquire with the customer about the need for commercial coverage. The company would most likely deny any claim as the vehicle was being used for business purposes and not solely private passenger. Some companies will not provide coverage if the vehicle is used for business. Be cognizant that you are placing the proper coverage for your customer.

Reinstating a Suspended or Revoked License
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 fee(s) at time of application. The suspended licensee is required to reveal the administrative action on the reinstatement application or be subject to additional administrative action. If your license is ever revoked, you will need to re-qualify and apply as a first time applicant after the two-year revocation period, in which you would also need to reveal the administrative action on your application. If a person has ever had a bail bond agent license revoked, they may not apply for another bail bond license. [Sections 626.641 and 648.49, Florida Statutes]