THE
INTERCOM
VOL 6,NO. 1
W1995-FEB19M
I
TO'
By Bill Nekon
S&k Treasurer, Insurance Commtssbtter, and Fim Marshal
As you know,the homeowners insurance inarket in paxts of Florida
remains
*
-As,
paralyzed despite the passage of more than
years since
-
very economic infrastructure.
-,
'1
reward homamms in communides where
-enforcing
i
their building coc%s.
And, over the past months, Plorida has L e n participating a
program mevaluate theenforcemeatofbuildingQodesbycltgand~
building dqmmmts throughout the state, based~suchfactors as t&
srrengtl~of their building codes, the training and q
w
a
d
m
sof tbclf
code enforcers, and the staffing of plan reviews andd*
hpeabns
We have now approved proposals by hsurvlc\ Services mc,
Incorporated for Insurance premium dismunts of u
new homes in communities that receive g o d code
The owners of homes built before the grading system
be able to qualify for a cPtdit by paying for an inspection of
The bottom line-is that code enforcement - and mitigation against
storm losses - should h p m throughout Florida.
h,
USE OF CREMT CARDS
BY BAIL BONDSMEN
Section
F.S., and Rule
4221.145 p
vide that no
assessed with the = of the d t
card. Any fee or discount points
WhiChmaybe~tuthebondF
-
National~ Flood
~ imance
Policy
Issuance 595 Rescinded
r r r a n b y t f i e ~ c a r d ~ ~
b
e
~
b
y
t
h
e
~
r m c b e ~ o n ~ a n p p a r w a ~
intbebUboadfmamim
llltf*---
paymentrrrusckmmEd. A b m d s
Prow
manmaymmkductamderke,slltbondsman shall
cws=-~qa d d i t l o a a l f e e ~ t b e ~ o f ~ In October 1995, the Federal
chargt arxy person a fee for
~ O f ~ r c a s h ~ ~ h c-. a t - Por -pkt
if $1,000 &i Insurance Administration (FI A)
~ o f t h e a m o l m t o f t h t ~ dmqpla@maaedfecardfw&
,
Issued National Hood Insurance
tmdukeifappllcablt, andwllat- hmal, t h e l m d s m n m u s t ~ r h e Program Policy Issuance 5 3 5 on
full$1,000whentkbotrdis8it&
Rebating Agents' Commissions
d e i f - .
charged. m a r e n o whIchrsbnted:=Inordetm~
Ifa-=wQpapment
f o r ~ o r ~ ~ r m b
y ~
the uniform prldagsyscem ofthis
--kFw-=
ofa credit card, the tm&mm may W i l l b c ~ b o t h e ~ a u c -ddprogram,P=h==~ k ~ t c h a r g e o r n x & w e a ~ f el,l n c d i n t h e s t a m m f m c h e ~ policies d i m with the Federal
surcharge or commimion, or m y ~ o f a ~ d t b e Govefnmcnt
~ ~ . as well as with write
~ ~ e e t w h J c h ~ b e
Your Own Companies shall not
engage in rebating agents'
commissions on National Flood
insurance prosram po~clts."me
statement was carried in the JulyUnautlnorhed
CmJRNmGOctOberlssueofTBe~,*
G O ~ : * l n s t I s s w d ~
Entities
the notice that we would include
h r t a w m r ~ a ~ o f t k
further~onthtssubjectin
prwlsiws and rrqulmmem of the
funuedtions.
Qarminsw M a n y d d t s o f ~ b l t l
On November 15, 1995, Dade
='=--e-mtFQ
In D e c e m k , the Dcpartmeb,
~
C
i
m
d
Z
~
~ c c sW
s a a d o. u r ~~l n c h d o d a o m e
m
c
e i v e d ~ f m m m w~thatwasInan~prrslon,
-a--*c'
-----
-
ImtdldImactupYrbecomebnrv. The
~ d m t G c t s t r a l ~ ~ H a r o l d~ ~ L s I n p a n g r a p h f a u r ( )
WmandaElizaliradgmcntajphnm1011-
*
'
'
f
PhWp M O W hh New YO&
ance agency (Cuaomhd WodcMde
Weatlm Insmum&mq Inc.), and
his unllctnstd employee Richard
Kushnm. ' P f a e ~ t s w l e r r f n .
ofthesmmmqandrds" I h t s a u c
A. M
c
~Admwmmwoftht
~
,
FBdffalIxlsursrnce-~1of
a k m ~ e h a t e h l s ~ b e p r o
vkkdloaullamedpnrtleswhomy~
&mcy,-dng-d=to*
a n ~ ~ h t h e ~ o f t binterest
t
made known to H
policy. -'Mditaonally,*tf~neww
A &om
within and outside the insurance
datesanunwdWdreAtndperlodof
industry, comments and insights
60dayswMd~
kyjmthe dute the pliq
mwinpIadas-i
s
~
d
e
k
t
e
t
h
b
&
w
n
WembeIngsOUd~from~pubk
coverage In an m m h r h d , lneliy
c
l
u
r
J
~
1
9
9
5
I
s
a
R
l
c
o
f
T
I
o
s
h
onthe--*ontht
gibk insurer for t h (3) Florida
terpoff. ThetexcoftheCtnrrniqg WLI
~
~
l
a Tfse H W a s ~ I n~t b t a r t l d. e a s w e l lItls
rebating issuc. To accomplish that
.
~ o f I n s u r n a c e ~ , U~ ~ a s ~ w c ~ f o r t he ne d , F I A p u b ~ a N ~ i n t k
~BntldeasSeccion,is~~m
pedcralWol. 60, No. 241
p-mw=Mw=otdated Friday, fkccmkr 15, 1995).
sapbon 6269%1(1Xanh
t s D 1 1 ( 2 l , F & 4 3 p ~ a a
The
Notice also mdnded Mthd
the poUcies--Californla Indemnity
h-b?&w=j=-Fbod
Insurance Program Policy
TnsumCc~(noernbt~ c c r t p l n ~ t o t h e a p p i k
Issuance
5-95 during the period
f u s e d w i t h ~ l n d e r r r r r l t y ~ ~whencxlsoiqev,llesoPoaepollep
arebeIqg~tofuadthtprrrchaseof
wkntbepublicwas~tedtooffa
a a c e C o m ~ , ~ a n ~ ) .
M o l l i n ~ p ~ o n p m b Q t i O n ;laothapLiqcwPanrdty~hom
tht ~ a m e-.
m fwm, ~14-1im feedback to shape policy on this
dorrperlodofmoyeats,orderedto
bue.
isbelng&ptedbyRukC151,
PanllL
~ambamddfInetothe~PuturetdI~ofTBeInSgtraol#
f
w
m a , and ordtred to pay $10,000 In
ththaRshmnoath~cewstslde.
w
I l l i n c l ~ d e ~ ~ o
~ O n t o m i n s l u e d .munll"pw-~,*Depnmncnt
policies
adopted, regarding the-,
M ~ t h e f o r m t o ~ ~
cenfd = p W ,
-,
~
t
o
w
r
i
t
e
W
a
t
K
I
~
~
rebating
issue, by the Pedcz.
wasalso~topayasubdal
~
i
n
H
d
d
a
.
~
~
~
h e aad pemmedy enjoined from
B~~~=Y--cY.
tain a supply and mak the forms
transacting insurance relative to
dlabktotkir~.
morMo~.
li
*
FRONTING AND PLACEMENT OF INSURANCE COVERAGE BY SURPLUS
LINES AND GENERAL LINES AGENTS "COURTESYFILINGS"
A number of Surp1& lines agents have been filing
rvfidav£tswith the mpammt itldicating the placerrment
£ insurance with unauthorized e w k Surplus Lirmes
-.v?Z*:, .although these agents did not afttrally place the
i n s m e . Instead, the mngswere made as a ~~*
5
i c d and appinted S u r p b Iines
agent if they aeport the risk to an eligiBle Surplus L h a
must utilize a Florida l
insurer.
SurplusilnesAgentswhoflleaffldavitsorpaytaxlesas
a "cowmy"to anyone mt licemd as a Surplus linesagtm
t O a g e m s n o t l i c e n s e d a s S u r p 1 ~ l l n e s ~ i n t h S s ~in
. this State are in violation of Sections 626.913(2),
secttons 626.913(2) and 626915(3), F b M a -,
616.915(3) and 626.929(1)0, M d a .SFurther,
the aidIngandabetdngofIrmdtviduats
p r w i d e t h a t ~ ~ d g i b k f a r e x p r t m u s t b esuchactivityin&
p l a o e d w h h a n t 4 . i g i b l e ~ l l o e s i n s l r r e r ~ anot
~ licensed to transact insurance in this State,which is a
seriausvio~mofthemorldahsuranceCde.lleporrs
Florida Surphrs tims agtm. kction 6%.=1X2),
Florida
ofanysuchmnducttotheDeparrmentwiUbe~
Statllbes, pmvrdes that aFesidentGenera1 lines mops
f
o
r
~
M a n a g l n g G e m d ~ w h l l e ~ a s a S u r p b l l n e si m d g a d a n d p m e u t e d . ~
&ons
include dlsdplhary actions up to and itlcludhg
a-mag----and-m
ofthe agent's L i c m . Florida Surplw lines and
L i n c s b u s I n e s s f r o m a n y o t h e r ~ ~
~ I l n e s a g m t a ~ a r a d l l c e n s e d a s t o t h e k I n d o rGeneral Lines agents axe urged to govern themselves
k i n d s o f h w a a @ e ~ h r e d~ s w p l u s l l a e s h w ~
samthatonlyamorlda-HcmxdSurplusllaesagentmsry
phceaMdartskwithaneligiWeSurphrsUneshsum.
M o m , --ken&
Surplus Lints
rmrst be
-
o
a c t t v e t y ~ I n ~ ~ o f d J a w r r a o c e ~
EorFlorida~~eligibksurpilmUnes~
General Llnes agents we minded that if they am
unable to place a risk with an admkted m e r ( d t b a
company with whom they are appointed or through
another agent ammind by an ~ d m i -pany),
d
thf~
Department of Insurance Scrutinizes Unlawful Relationships Between
perty & Casualty Agents and Automobile Dealerships
ThepracdceofobmlnlngaooperatIonfmm~bdle con~wStbthedeofanIasurranceproductthen
dealers; sales managers, -md salespersons to solicit the actbity violates Section 626.753, Florida Stztutes. TXre
pmspecth aummobk Insurarpceapplicants Is a violation amtmththat thekeisthe~umforatxmhgpolicy
of the Florida Insurance Code. Such solicitation or m other ancillary p d u c t , which is not an hsurance
Indracement, preIimhary negothdon, or dkttmclon of a
product, Is merely a stmew
to dmmmm the
contract of insurance by automobile dealers and thdr prohibition agalnst unlawful commission s h h g . In
employe€%subjects thoge invohred lo lkpmmem legal ~ , a c a r s a k s p e m m o r ~ a g m t ~ ~ a
acdonforsolidtingifisutaracewithoutbelagduryUctostd, amdltaryploduct~theagatwrfblngtheamsam&s
sections 626.071(2),626.091,and 626.112(1)(2), morlda automobile insurance coverage. Furthermore, if the
Statutes. Further, such activities
result in the
andllary-s)~~prr,Pe-~eaplalned
unlawful sharing of agent commMons or paying some to the appliant, the ageat and otfrers d d be in v h h t b n
other unlawful inducement to an unlicensed person. of Section 626.9%1(1)(~), Florida Stahltes, 'Slidtag."
The Department has implemented an aggressive
Another seriolus fssue involved is the risk to ooflsumersof
possible misrep~esentadon,d o n , Intimidation, and -~+w-~~posc=hpoor qmentation of the hsmmce produce.
in Florida. Department actions will not be Umited to
Il--laeepinmlndthat*arcmm
~anddlsdp~GeaeralLaoes~ts,butwill
for the acts surrounding the e f k m d o n of q insurance h f o c u s m a ~ ~ p s n n d ~ e
are rcmhkd
contract. Agents who engage tn aiding and abe#lng an Aummbik ckkships and their emunlicensed person, unlawful sbarhg commissions, and t h a t , I n ~ o n t o o t t a e r ~ ~ p r o p l d e d b y l a w , t h e y
paying unlawful inducementsnot only subject thtmsehrcs r i s k t h e s u s p t a s a o n o r ~ n o f ~ M o t o r V e b i c l e
tO~kdvIl~,butfilnyalsobejeo~th
Service
e
Warranty Contract License when engaging in
condnuation of their license.
unlaarfulpractlces. Pursuantm#apter634.171,Plorlda
An article, titled "Paymentfor Refemls,*appeared in Statutes, a licensed and appinted Motor Vehicle Service
&January-Match, 1994,Issue ofmItpteroom autbnhg Warranty Contract salesman shall be d h d y respmsibk
and othm
liccnsces conctmlng this approach. The practice has, and acamtable for dl acts of his em,pnmikd among certain -nts
of M d a ' s - t a m .
Further, Chapters634.181 and634.191,
;cneral thsagents.
FloridaStatutes,givlethe~ttheauthorftytotalae
As s t a d 111 the p r e v h s article, it is the p i t h of Eormalac-tionagahstlicefl~eholderswkntbqrarefollrad
theDcpartmtntthrztIfp~~ymtntofrcfiEtral~isconthgatto beengaghginpracdces hviolationoftkIawuarmcc
upon the sale d an Lnsumnct product or any p m k t In Code.
~~
The United States Supreme Court heard oral
argummts in the ase of BamttdWak of Madon
County, N.A.,v. N e k m et ai on January 16.
The case arose out of the purchase of a
Eklkvkw, m..General LIaes insurartce
1
agencybga~diaryoftbe~ameff~ank
h o w m p a n y doing business in a "placeof km than 5,000 hkbimnts."
Forovertwentyyears(wlthcerratnexcepdons),Florldahaspm~its~censed'
Wf=Smew&V3
s
In bwance agency acdvltics while they m awxiated with or mtrolkd by a hmcial instttutlon. ImmxUely after
the purchase of the insurance agency, Bameu brought suit in k&mlDbtrict Court fegardIng the issue of wtaether a
federai statute permitting the sale of insurance by a national bank,-1
and d n g business in a place of less than
5,000 inhabitants, v p t s Florida's Insurance C h k prdslon prohibidng subsidiaries of bank holding ampnits
from engaging in humnce
Ilcthrldes. The Pedcral Wtrkt Caw&rejeaedBatPett's arguments. Barnctt appealed
totheCltruItCoureinAthtaanda@nitsargumentsweremjected. l % e U . S . S u p r e m e C o u r t ~ ~ s ~
k r w l e w , h ~ ~ Q ~ v i n g o o ~ b e t w e e n t h e ~ ~ C o u r t M o n a r
by mother & p d s Court reviewing a Kentucky statute.
One~tsupposethatafederallawwould~~~pa~law~both~~sam~subjeam
Hoppww,inWcasethefeder;lIstatuterelleduponby~is~oftheFBdaal~kM,a~
d e a l l n g ~ w l t h W i n g A~n.o t h e r f e d t r ; l r l a w , t k . M ~ ~ A c t , ~ d e s t h s # n o ~ l a w
be~0~toinvalidate,~psIr,org~1~aaystateInw~~thepurposeof~~
hmancc. The Atlanta Appeals
referred to this opmatbn of^^ as '~
~
That is,
.
~thereis~ct~themandEaderallaws,~ofttee~hgMngwaymtbtfedaallaw,the
d
~ ~ t e m u s t ~ w a y t o ~ s t a t ; e ~ c e S t a t l l t e .
NodsLdwinthe~is~EarsRRLweCJB,~
Mma ~D~w. h i l e R o r l d s ' ~ ~ ' ~ ~ satme (Saxion 626.888,F.S.) remaimIn force,k w h g been q c a w d l y upheld to date by severat k d s d state and k k ~
courts. ?he Im&mxm intends to pubIisha fodlow-upstory as soon as a deckion is rendered by the maim's Mgka
FLORIDA INSURANCE LICENSE
APPLICATION FORM REVISED
The application form for a Florida
insurance license has been revised. 'lke
DepartmentfRUl~w~acaeptlicmse
appik&iot18 with a revision date prim to
October 1995. outdated applbtion forms
wIllbetwumedtothetwnittet,alongw&h
any fees received. Avoid &lays in
processing by ensuring that your
appuatlon for Iicensuff is submitted on a
cwmltform. Thischange~notaffect
other types of forms such as apphtment
forms, termination forms, fingerprint
d,etc.NewfomsmaybenqucsW
bY=w3~~:
Buffauoflal~
Dqwmtmof-e
200 East Gahw Street
m,
FL 323994319
Each person operating
an insurance agency or
adjusting firm and tach location of a
m~agencym~mustcompkte
a Primary Agent/Primary Adjuster
Form @14-63/64) on or before
January 1 of each year. N o
insurance agency location or
adjusting firm location shall
conduct the business of
a pdmary w
t
--
~~rsmarvw-=~at all m.Pallureto desigorue
or
as
Sactiom 626.592 and 626.8695, F.S., shall constitute
groundsfor~thattheagencyorfirmobtaha
kemw.. P k a s e r e k t o p a s t ~ o f ~ l n t s r o o t r o f o r a
a3pyofthtfwm. I f p h a v t ~ o r n e a d t o r c q w s f f
the form, wrfte to t
k Bureauof ~ t i w at:s200 East
Gainers S,TaMmtmi, FL 32399.0320.
U n d e r P a r t X o f C h a ~ 6 % , F 1 ~ S t a t u t e s , ~ ~ t o f ~ ~ ~ a ~ c e h a s
~ o f ~ c e p o I r d e~ 0s 1.1 6 2 6 . 9 5 l I 2 ) , F . S . , ~ t h i s p a r t o f t h e ~ c e ~ a'IJnfaitbmmxe
sthe
Trade Practices Act." k a u s e of recent wmplaints to the Depamnent, tblsarticle is intended to addnsstofvarious types of pmperty and camdty Insurance.
Sectton626.951lil), F.S., indicates that this section applies to *any Indirrldual, ampration, assodation,partaership,
r e c i p d ~ , I n ~ , I l o y r d s ~ , ~ ~ s o d e t y , o r b ~ ~ o ~ a n y m ~
b u a I r a w s o f ~ ~ t ~. "~ 0 l l ~ o f ~ U ~ T ~ P r a c t i c c s A r t l l l a d e r ~ oF.S.,
a 6"2U6~.m~e1t ,
hods
of ~l~npetitron
and unfair or deceptive acts" relarc tn advlertJstng. The Rat,626.9541(lXa), F.S., d e c h s the folhmhg
anuufair~ofcompetitionandanunfairordeceptkact
Tlae second, Section 626.9541(1)@), F.S., &cia= the fobwing an unfair method of competition and an unfarr w
-act:
The penalties for suchviolatio~lsrangefrom Bases and probertionto susor revocadond a lioeasee'scli@lity.
~,Anesofupm$100,000maybeIm~uponanypensonwfmo~vio~anyprovlsfonofthese
statutes. ~ ~ , ~ a a p p m v l n g a n ~ t f o e @ l i c ~ m , a n
compliance with the hwanct Code. When hvescigating,a oomplaint concerning agent and a g m q
the
Dqmment will be guided by Sacdon 626-5641(1) (c), F.S., which states:
a ~ ~ s A a U k a w ~ ~ t o f ~ ~ a d o # r e r s e l l t n g a p ~ U u
t e and bah&
hr-tion
on the WPts and I h h i b n s ofapdicy."
m
P l c a s e ~ ~ a n ~ ~ ~ m a y b e ~ ~ k f w a f l ~ ~ t a t I ~ o r ~ E w m d m b e m l
deccptfve,oruntrue. I n o r d c r m ~ n e t h a t ~ o f c h t ~ , ~ , c o ~ o f l ~ , a r t w m s o f a
pdtcy are propcriy
please refa to the sections of the Hod& -S
listed abovt. Any w o r n &add be
dkcted to:
e,
DivMnofAgmtandAgency~es
2003~StreeC
FL 32399-0320
I
SERVING CONSUMERS
IN THE BEST WAY POSSIBLE
IS YOUR BUSINESS AND OURS
Insurance agents share a very
important role with the Division of
Insurance Consumer Services. They,
along with the specialists who work In
the Division, educate consumers on
insurance hues, assist them in resoMng
claims, and answer their questions.
The Deparment believes that most
agents strive to serve their clients' needs
In the best way possible, yet a growing
number of requests to the Division of
Consumer Services indicates that
vioh.£onsof the Florida Insurance Code
and good business practices are
not divulge a consumer's poor driving
record, by deiiberately leaving that
portion of the auto hamnce a p p l i h
blank; or the agent changes pnimof
an application for coverage after the
ammmer has signed it;
9 misrepresenting policy benefitsexample: to sell a health policy, some
increasing.
Once a violation is documented, the
fiiei!?referredmtheDepartmgnt's~
ofAgent andAgency hwsdgado~~.
Mm
=-policy.
thanhalfofthercfwredfib~ultfrom
qumionabk or deceptive practices by
agents and agencies. Such activities
inch&:
9 inaccurately calmking premiums;or
holding coklml premiums that should
be forwarded to the premium finance
company;
9 not fdlJ'inf~mng
COnSUmerS of the
consequences of large ($2,000) PIP
deducdbles when the consumer mqucss
a M c or in-ive
policy,
9 IncIudJng aflduary coverages,such as .
accidental death mverage or motor club
memberships as Upartof a package" (this
L lrfiierred to as "&ding");
4 incorrectly
and/or omitting
information on an application for
amrage, which d t s in -1Won
or
nm-renewal of the policy-exampple: a
mobile-home policy, which may have
beeninfotcefor~years,issudddy
canceled or non-renewed after the
company notes that the application
indicate that there Is no slrlrting on the
mobile home, when actually there is;or,
in order to make a sale, the agent does
~ ~ t b a t t l . t e f f i S n 0 ~
clause, when in fact there is;or to sell a
life~cepoltcy(~eklafymoften
targeted) the agent falls to ctiscloseto the
~thattkmareamseq~for
-~bomrwIng-a@-
should be aware that hudu%nt activities
SUchas~~tacklngofmul~paeW
or dupliate polida, twisdng, churning
and pockdng premiums may &t
h
heavy penalties, inchding revoation of
licemum.
Reports to the Department of
actMty try agents are not
communicated by a consumer. Many
hImesaden~agentwilldlwhw
them is reason to believe that another
agent's actions pose a threat to the
-
-
reputatrondagmtsingaed.
Effor~~by~tstouKplah~
terms, coverages and processes;
searching for the most cost~fficient
insurance; and assisting customers in
other ways are recognized and
appreciated. These efforts make the
Division's job much easier. Still, to reduce the number of complaints against
all insurance entities, we are
ourernphaslsonmnsumerahtationand
aware^^. Should you have a question
regarding the laws or rules governing
insurance, please call our coll-free
Helpline at 1-800-342-2762 or visit any
l d Florida lkpartment of Insufance
Service Office.
I 24-HOUR INSURANCE COVERAGE PlLO7 PlZOGlZAM
with an authorkd Wth maintenance oiganhtion to
During a special legislath sessionh November lW3,
the Florida Ixgjslature amended W o n 440.135, F.S., to
write HMO coverage may market both workers'
a ~ t h e e S M b l i s h e n t o f o n e o r ~ p I l o t~~ ~ o n a n d H M 0 ~ .
providing for 24hour ififllrartce cowrage. lkterm *24
(C) r
'omfortheworkas' compenwionand
hour coverage" is used to &scribe insurance COVtheHMO axwagemust be paid q a m e l y to the m q ~ & ~
which combines tditional health insurance amwage,
m s ) . The oommkionsfirom the twocwage annot
workers' compensationamage, and employers' W t y
be combinedor split betweenthe C;eneral liws agent and
inrmrance underasin@ policy. 'ke intent ofthek g i s k u e the Health insurance agent unless tkir Ucensure a k w s
is to determine whetkr the total cost to an m p w that
for sharing of co-m.
p m k k a policy or plan ofhealth insurance and a q m m e
(dl There may be separate applications for the
policy or plan ofworlrers' compenwion for its emwork& cornpewation and the HMO mwmge or tbere
mnbe reducedby combining aweraga unda a policy or
may be one applicationpage divided into the two separate
plan that p r o v i k 24-bur insurancecmmge.
cowraga. AGeneralLinesagmtansignImhlirmesof
The Oepamnent of hswmce (DOl) expects to have
the application for the HMO awerage and the worken'
contmctsm g o W soon with private, jointmm gmup
compensation coverage only if this agent also holds a
to offer 24hour coverage, with implementation of the
Property and M t y and H d t h insuranceapphtment.
pragram during 19%. Upon successful negotiation of a
When rovenge is solicitedsepamtelyby the General Lines
contract, each joint-venture group will be able to offer2 4
agent and the Health insurance agent, the separate
hour coverage in Hillsborough, Pindas, Pasco, Dade,
applications must contain the signature and licensing
Browardand Palm Beache e s . MUman & Robermn,
identifiation rmmberof both the General Lines agent and
Inc., an independent actuarial firm, will be doing an the Health hsumce agent.
evaluation ofthe project andwillmprt the results to DO1
(e) Each application shall contain the following
h
q
p
g e "I certify that each question on this appliation
at the end of the twoyear d u a t i o n perid.
..
Marketingand sa%s mphmmtspercarnrngto the 2 4
was a d d by me ofthe applicant(s) mmd a h , and all
answers are accurately recorded." Additionally, each
hour cowmge a~ as follows:
applicuion must contain the following statement related
(a) All mrkting and s a k material to be used by the
carrier and agents must receive approval by DO1 prior to
to bud, 'Any pwson who knowingly and with intent to
use. Eachmrrierhhed In the pilotprplPrPlect is mpmble injure, m u d , or deceive any insurer, files a statement of
for the training and-tion
oftheir mpeaivemarkdng claim or an application containing any fake, incomplete,
and s a k personnel and all agents involved h the sale of or misleadinginformation is guilty of a felony of the third
the 24hour coverage.
degree." Fach application must be completed and signed
by the respective agent and include the license number of
(b) Agents maketing the workers' compensation
caveragemust k licensed by DO1 as a General Lines agent
each agent.
and appointed with a Property and Casualty insurer
(f) If a carrier or agent brokers the 2 4 h p h t
a d m k dto transact such hsurance in the State dFlorlda.
pmha,they are subject to the reqrrirwnentsas &heated
Agents marketing HMO avemge must be licased by the
in ss.626.752 and 626.837,F.S.
Department as a Health Insurance agent and appointed
(g) The 24hour pilot project cwerage cannot be
with a h d t h maintenance oqpnimtion authorized to sell
mukted or sold in n m x w i c eama counties. Coordinated,
HMO coverage in Florida. Agents licensed by the
mn-pilot project pducts with marketing mamiah that
Department as a General Unes agent and appointed with
commingle HMO cmerage with WOW
cwnpensation
an authorized Property and Casualty insum to write
caverage c a f l l ~k
t sold in n o n h e a m counths.
workers' compensation insurance who are dso appointed
.
When completing an application for an insurance license (or
a d d i d o n a l U c ~ ) , a ~ ~ r e q u i r e d t o ~ a l
a n d t o m a k e a u m ~ ~ o f ~ c r I m l n a l r e c o r d , ~
~ o f r a w a l ~ .
Rule 4-211.029 sets forth Department policy, statutory
interpretation, and procedure, regarding these offenses. The
Department is concerned with the law enforcement record of
-
a p p l i m m o n l y f o r t h e ~ o f ~ f r o m ~
whether or not the personM d teprtscnt a dgnifbnt thrm to the
public w e k if Uccastd under Chapter 626, Florida Smum. It L
not part of the Dqmmmts responsibilitia, and the Departtracnt
not attunpa to ",*' ~ p I i a e , or
" "punish* any person
mncemiq any d u c t pdor to licensuff.
- The Ikpwmmt docs, w,
deem all manem that are part ofan
applicant's law ~~t
record to be a s w a m and material
element ofthe applhtion. Pahe, on the part ofappllmnts, to rweal
thcir-plete.iswmbmcmmt-rdonmapp1l~lsamsrmal
mimepresentation or material r
n and can result
~ In denial~ of the appIicadon or adddsmt4ve action
against the Ucerwe4n cases where the license has already been Issued.
l7w Mhwing nrEe addtmwa the Issw
was pmmulgatW by the Department and
--
o f a m f i r mto tmmW illsumma in #mfth. llte ~ r u l e
efhctlw on
12,1995.
--
--
RULE CHAPTER 4136
REQ-
W R D I N G COMPANIES
TRANSACTING INSURANCE IN FIDRJDA
(1)
No insurer shall isme insurance policies w otherwise trhsact insurance, as that term is k f m d In
Section 624. LO, W d a S t a m , inPnMng risks resident w located in this state unless the Inmuler has a
m n t certificate of authority i m d by the lkpmmm.
(2) N o ~ s h a l l ~ m o f f l c e s w b y ~ d o r E a d l l t f e s ~ i n t h i s s c a t e ~ t i n s u r a n c e a p p W ~ ~ l ~
w ~ ~ ~ h a n o c t a e r s t a t e o r ~ ~ I t ~
~dbyh~a~ngitmcransactthesameMorklndsof~Inthisstatc.
(3) A current &Bate
of authoritg issrmed by the lkpmmmt is not required under certain spedfic
drrumstances. T h e s e ~ c e s ~ ~ r s ~ :
<a) A current Florida m t e of-a
is not required if the activith of the um&o&d
a
~
insum
i n m > l w o n l y t h e ~d,e m e n t , o r ~ o f c l a i m s m d e r p o ~ ~ ~
wrltteain~st;rtt,or~theliquidabionoftlaeassttsand~desafttae~wNch~~
result d previously autho&ed opaadom in this state. This exception to the requiemat shall not
bt m m e d to inch& the ~olIectIonof pmnhm or the mmmalof policies.
(b) A c u r r c n t E a o r I d a ~ o f a u t h o r f e y I l s n o t ~ m ~ ~ e a p o H c y w i t h i n k s t a t e , ~
to the lawful h m m e ofthe policy, so long as the subject ofthe policy of m c e was noc mident,
locawd,ot~mbepcrf~Itlthisstateatthetimeof~ce,andsolongas~policyof
~ ~ ~ ~ 0 1 l d t e d , w Y i a C n , o r ~ o u t s l d e o d t h i sThemp$u--Stat.
Secdon 624.402(2), M d a S t a m , to mean that an Utlauth0rh.dInsuftfmay
paswnel or
Wtles~inth~statemtransltct~ceInother~orIn~~~,~de
t a a t ~ ~ h ~ o c c u r s u ~ t u l m d d o n o t ~ m t h e ~ c e o r ~ d o n o f t h
I f l ! 3 u m c e ~ .
(c) Acufient ~ c e r d A c a t e o f a u t t w r i t y i s n o t ~ t o e n g d g c I n ~ w s p r u s u ; tosurplus
znt
=r=
~ i r a e s c c w e r a g e ~ a ~ ~ w r l # e n u n d c r ~ v ~ o626,PiotldaStatutes,s~Iongastk~
f
I s a n ~ r m r p l u s ~ i t m r e r u n d e r S c c t l o n .69 1 7 o r ~ o n 6 2 6 . 9 1 8 , ~ S t ; ; r t u t eThe
s.
Department Interpms Section 626.9tS(2m),
FbMa Smms, tomean that an unaimnmr
cannotmeecthe~n#takaneUgiblesurpfitsllraes~unlessthe~f*2~inwlrrr
hasoffl~~~In~ndtrafisactslnsurancehi~sstateorc0unqofdomici%.Asurp1~1~bInsurer
digible puffuant to Section 6&.918, Florida S,is not prohibited by this ruk! from milizhg
offices or pemntael in this state to cransace Insurance in armher juridiction, provided it Is Iicend
asaswp1usllacswauthoriml~inthatj~.
(6)A current HoMa adflak of a-dty
is not reQuIrad to tmmct the business of r e h w m c e , SQ
long assuch mimumwe is ~ a s a u t h m k d u n c k r ~ o n 6 2 4 . 6 1PEorida
0,
Statutes.
(e) A c u f i e n t ~ H ~ o f a ~ I s r m t t . e q u i r e d w h # l a n ~ h a s w i t h ~ W a n d i s
not
a n y a e w ~ c e i n t W s t a t e , b u t ~f ~ i n f w c e a n c l c o n t i n u i u g t n
sm!i=ce
or
m c e p o w or
arnmcts wMch remaio in fmx and
which hurt! mshknts of this state.
@ AmtPlo~~ofa~tyIsmrequiredwhenanuna~Eoffignlnsurwlnvests
i ~ ~ h ~ ~ i n t h i s s t a t e o r I n ~ ~ ~ b y , I f t h e h r d g n ~ c o m p l l
with the laws of this s€atedating
to foreign -b
corporations.
(4) For pwpom of this rule and Secdon 624.402C2), Florida Statum, the issuance of an insurance policy
includes any of the follawlng acts:
(a) SoHcitatiw of pmpectivr insureds. For purpoeres of this rule, solicitation means face-to-face
communications, or intram or Inter-state transmission of written, electronic, or telephonic
c o m m M o n s from ari uaauthorlzed insureror its agent to a p p e c t k insuted, for the p w p w
of generatinga resor Inquiry or which Mdentally hcluQs mention of matters of insurance.
(b) TmmmWng appiidons to prospective insuds. Forpuqwxsofthis rule,
apprlcations
means facetoface aommunImdons, or intra- or htemate transmlsslon of writtm, electronic, or
ulephonic c o r m n ~ o m
from an unauthorkd h s w x or its agent to prospective ,-I
for
the purpme of conrsummatlng a contract of insumnce or a reladonship which may lead to a contract
of insurance.
(c) ReceMng appWom from or on behalf of pwpecdve Insureds. Por purposes ofthis &, receiving
appIicadm means face-wfacc rommunimions, or in#- or Inter-state transmission of written,
electlronlc, or telephonic ~mmunlc~tiws
to an unauthorhd insuer or its agent for use bv the
unauthoW insurer as a basis to determine the eligibility or inswbility of p r & m ~nsuff'dsor
risks.
- +
'
--
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D I V I S I O N O F A G E N r A r n ~ ~
nteIntwwmtiSpub~bythe
mparment of rIlfmance, Division of Agent
and Agency Servia, 200 East G a h Streei,
~
8
-
Tallahassee,FL 323940318.
-
w-
Dan McLaughlh
-wm
Phil-
M$
Dana Phnnmcr
J-
Barry-
IasePasan
DaveWlsch
SarahCone
J o h n E ~ ~ D i r w t o r
~AUesPalmer.Assistant~Dimdw
Phil Fwnhh, Chief, Bureau of
-I
ShbkyK#ns,Chief,Bureauaf~
............................ (904)-1
of
38
...................................... (m)922-3138 Ext. 5844
Burea~
J
................................... (W)
m-3137
Ssetkn ....................... (gW) 9225154 Ext 1108
Ow-l
Sseakn ................ (904)922-3137 Ext. 1101
~ u s t e h ~ t b m * ~ l n k r m r r l i o n
--*Bailraanagirq Oeneral ~ ~ T e r m i l ? a n m 3
oustomer R e p m * ~ & & ~ A p p m v a l
JulkBddg
-PyfE
K
t
r
r
y
w
DonPowlers
m-Sectlon
Stanpisher
We welcome wgpthms aod hqdrh maceming TRe Imtmrom. Writtm
~ s t m u l d b t m a l l w l D o I m y ~ , ~ ~ d ~ ,
200 E. CaLats Stitet,,
morib 323990318.
L
.............(904)9Z&3137E~t.1100
CerttRcaaion&ClearaneeLetters
Fwmrr
Ap@mNRenervals
-mN-8AgeneyChanees
Malllng Lhts
J
If your name, m d e m e a d d m p r i m business maddress, w mailing a d d m
you u
notifythe ~ w l t M n 3 0 d a y s d I h e ~ . ~ w h o f e i l ~ m p l y a r e i n ~ o f C h s p d e r 8 2 8 . 5 8 1 .
ES., and are subm to Ifwedgationand possi#e diacipeinaryacth.
Please mi ywr notice of change to:
Bureau of i h d n g
Oepartment of lnsuranee
200EastGalnesStreet
faWxl&w, FL 323980318
A f w m d m w t w m d t a b t h e ~ d y o u ~ ~ ~ F e m e m b e s e o ~ ~ 5 6 f
andaeoWofwmarrlegem,dRKmremaralSrer-stIhethreyoum-
Ihpmmmof~ce
~mofAgmtand~Suvkes
200 East Gaines S
m
i
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