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Volume 2, No. 2 - March 2011   

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.

Submitting Surety Bonds to the Department
If your license requires you to maintain a surety bond on file with the Department (e.g. title agency, surplus lines agent, public adjuster) then you must submit the original bond. Copies are not accepted and can delay your application or make you noncompliant in maintaining your license. Additionally, you need to be sure that the bond you submit is complete with all information provided on the bond.

Health Agent Soliciting Before Appointed
The Florida Insurance Code allows a Florida licensed health agent who is appointed with at least one health insurer to solicit health insurance on behalf of a health insurer for which he or she is not yet appointed, provided the agent simultaneously requests (along with the submission of the application) that the insurer appoint the agent. No commission may be paid to the agent until the new appointment is effectuated by the Department. The two statutes referenced below allow an insurer to provide to such agent, and for such agent to possess, applications and solicitation materials from the insurer which has not yet appointed the agent.
[See Sections 626.341(2) and 626.342(1), Florida Statutes]

Agency License Renewal
Every insurance agency transacting insurance business in Florida must be licensed, if it is not already.*

Florida law requires all licensed agencies to renew their license every three years. Florida law does not require registered agencies to renew their registration or title agencies to renew their license. Agency licenses must be renewed online through MyProfile. Log in using the agency's login account information. Once logged in, select "Renewal" and proceed with the renewal process. There are no fees to renew an agency license. You will be able to print out your new agency license certificate immediately, which you will need to place prominently in the agency location. We e-mail reminders to the e-mail address on file for the agency 90 and 30 days prior to the agency license expiration, which is another important reason to make sure you keep your e-mail address current through MyProfile. Failure to do so can prevent you from receiving important information from us and could lead to an address violation and fine or the expiration of your agency license.

*Some agencies were registered during the implementation of the agency licensure law.

Bail Bond Collateral
Collateral accepted to secure a bail bond must be returned to the person who provided that collateral when the liability on the bail bond has been released.

If the bail bond is forfeited, the collateral may be used to pay the amount of the bond to the court. Any excess collateral must be returned to the owner at that time. If this requires the collateral to be converted to cash, then the person who provided the collateral must be given at least ten (10) days notice of the bail bond agent's intent to convert the collateral to cash. This time period is to allow the person to pay the amount due prior to the collateral being converted and having the original collateral returned.

If the court orders a remission of the bond forfeiture, then the funds used to satisfy that forfeiture must be returned to the owner.

Failure to adhere to the requirements of this statute may result in the bail bond agent being charged with a felony of the third degree. In addition, Florida law compels the Department to impose a penalty of five (5) times the dollar amount of the collateral to anyone violating the collateral requirements.
[See Sections 648.442 and 648.571(4), Florida Statutes]