Volume 6, No. 9 - September 2017

Compliance Corner

This section has been created to assist you in keeping your insurance business in compliance. The items are intended as reminders only. Note: Division publications may include references to the Florida Statutes and/or the Florida Administrative Code. The laws noted in our publications are/were in effect at the time of publication but may have been repealed, amended or replaced and new laws may have been enacted subsequently.

 

To All Agents: Stay Informed - Stay Legal Before You Sell!

DON'T DO IT!

Do not allow yourself to be recruited by a marketer touting cheaper health insurance or a guaranteed "can't lose" investment for your clients.

Many times the sales materials will be impressive, and fabricated letters from regulators or others will give the appearance of legitimacy. Some of the warning signs of an unauthorized or bogus health plan will be the use of trade associations, unions or affinity groups that a consumer must join to be eligible for coverage.

Another warning sign is the use of the phrase "Multiple Employer Welfare Arrangement" (MEWA). While MEWAs can be legitimate, they must be licensed by the state, and not many are.

The marketers may claim their plan is a federal plan or an Employee Retirement Income Security Act (ERISA) plan and is exempt from state regulation, which is a definite red flag.

 

There is always someone who has a guaranteed, get-rich-quick investment seeking out insurance professionals with an established market of clients to whom they can sell these products.

These bogus investments can range from communications equipment companies to real estate and land development opportunities, which almost always turn out to be unregistered securities. These investments have been so well packaged and pitched that some agents also purchased them, as did their family members.

Read more>>

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Title Agency Data Call 2017

2017 marked the third year title insurance agencies were required under s.626.8437(11), F.S. to submit information to the Florida Office of Insurance Regulation (OIR) under the data call required by s.627.782(8), Florida Statutes. Title agencies had until June 1, 2017, to make their submission to the OIR.

According to OIR, more than 300 agencies failed to comply with the requirements of the data call. Agencies that did not comply by the June 1, 2017 deadline are being reviewed for possible disciplinary action against their license.

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Note: Some information in archived articles may now be out of date or superseded by changes in Florida law. Please be sure you refer to the most current law.