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Volume 2, No. 1 - February 2011   
News You Can Use
- Updating you on what's going on

Notice of Liquidation of Commercial Insurance Alliance
On January 26, 2011, Commercial Insurance Alliance ("CIA") was ordered into receivership for purposes of liquidation by the Second Judicial Circuit Court in Leon County, Florida. The Florida Department of Financial Services is the court appointed Receiver of CIA. The company consented to the receivership.
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CFO Atwater Suspends Insurance Agent's License for Pocketing Consumer Premiums
Florida CFO Jeff Atwater ordered the emergency suspension of a Lake Worth insurance agent's license after he allegedly misappropriated automobile insurance premiums and issued bogus insurance identification cards to consumers.
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OIR Overview of Solvency Regulation to House Insurance and Banking Subcommittee
The Florida Office of Insurance Regulation's (OIR) Deputy Insurance Commissioner, Belinda Miller, recently reviewed the solvency of Florida's property insurance market and presented her findings to the Florida House of Representatives' Insurance and Banking Subcommittee on January 12, 2011.
Click here to read the presentation >>

Red Flags Rule on ID theft takes effect, with narrower application
On December 18, 2010, the president signed into law the Red Flags Program Clarification Act. This legislation limits who is subject to the Red Flags Rule and implements Federal Trade Commission (FTC) enforcement, which had been delayed. The new law limits the circumstances in which creditors are covered by the Red Flags Rule. The rule may or may not apply to your agency; it depends on your activities. For example, if you regularly arrange premium financing for personal lines customers; obtain or use consumer reports for premium financing for personal lines customers; or advance funds on behalf of insureds for personal lines business based on an obligation of the insureds to repay the funds, you might be subject to this rule. However, if all of your agency's business is billed directly by carriers, your agency will not be a creditor or have the type of accounts required to be subject to the rule.  The FTC is revising the materials on their website to reflect the change in the law.

DCA Ruling on Public Adjuster Prohibition
The recent District Court of Appeals ruling that overturned the ban on solicitation by public adjusters during the first 48 hours after a loss has been appealed by the Department of Financial Services. The specific statutory cite is 626.854(6), Florida Statutes.

The Department requested a stay of the ruling to allow our Division of Legal Services to review the opinion. The stay is currently in place. Until a resolution is reached on the ruling, the Department will continue to enforce the statute as outlined below:

Public adjusters are prohibited from initiating telephonic or face to face contact with an insured or claimant during the first 48 hours after a loss unless the contact is initiated by the insured or claimant. However, contact by the public adjuster by means of printed or electronic correspondence such as e-mails, letters, flyers or door hangers is allowed and not in violation of the statute.

When the court renders a verdict on the appeal we will update our website to reflect the ruling.

Make sure you get official notices from us
Add to your Safe Senders List to ensure you are able to receive all notifications from us. Licensees who have a valid e-mail address on file with us, as required by law, receive important e-mail notifications when something that affects your application, license, continuing education, or appointment(s) occurs.  Additionally, we can keep you informed with warnings regarding new schemes and scams being marketed to licensees.  You can update your contact information through your MyProfile account.  We want to keep you informed in a timely manner of pertinent information important to you. You are still required to abide by the Florida Insurance Code regardless of whether you read the information we provide.