Florida State Regulations & NAIC Insurance Law

Licensing

To apply for a Florida resident producer’s license, you must:

Be at least 18 years old.
Be a Florida resident before you submit your application.

Pre-licensing course and exam

Within the 4 years before applying, a Florida general lines agent must have completed 200 hours of department-approved coursework, 3 of them on ethics, or have qualifying full-time property and casualty experience instead; a personal lines agent needs 60 hours. Members and veterans of the U.S. Armed Forces, and their spouses, are exempt from the coursework (Fla. Stat. § 626.732).

The passing score on every Florida insurance licensing examination is 70% (Pearson VUE, Florida Insurance Candidate Handbook).

Fingerprints/background check

An applicant for a Florida agent license must submit fingerprints to the Department of Financial Services and pay the processing fee, and the department may not approve an application until they are submitted (Fla. Stat. § 626.171(4)).

Controlled business

Controlled business is insurance written on the producer’s own life, property or interests, or on those of the producer’s family, employer or a business the producer controls. A producer may insure themselves and their family, but a license exists to sell insurance to the public, so states generally restrict obtaining or using a license principally to write controlled business.

A Florida general lines agent’s license may be refused, suspended or revoked if, during any 12-month period, commissions on controlled business (insurance on the agent’s own interests or those of family, or of a firm or corporation the agent is associated with) exceed 50% of the agent’s total commissions (Fla. Stat. § 626.730).

Non-resident license

A producer licensed in another state can obtain a Florida nonresident license without taking Florida’s examination. Florida waives its examination for a nonresident agent who holds a comparable license in another state with similar examination requirements (Fla. Stat. § 626.221(2)(o)). Under the NAIC’s Producer Licensing Model Act, which most states have adopted in some form, a nonresident receives the license if the person:

Is currently licensed as a resident, and in good standing, in the home state
Has applied (the home-state application or the Uniform Application) and paid the fees
Lives in a home state that grants nonresident licenses to residents of this state on the same basis (reciprocity)

Under the same model, a producer who moves to another state files a change of address, with certification from the new home state, within 30 days. A licensed producer who moves into a state applies for a resident license there within 90 days and does not repeat prelicensing education or the examination for lines already held.

Temporary license

Most states allow the insurance regulator to issue a temporary license, without an examination, when one is needed to keep an insurance business serviced. Typical cases are:

The surviving spouse or personal representative of a producer who dies or becomes disabled, to allow time to sell the business or train new people
A member or employee of a business entity producer, on the death or disability of its designated producer
The designee of a producer entering active military service

The regulator may limit what a temporary licensee may do and may require a licensed sponsor who takes responsibility for the temporary licensee’s acts.

The Department of Financial Services may issue a nonrenewable temporary license for up to 6 months to an employee, family member, business associate or personal representative of a general lines, life or personal lines agent who has died or become unable to perform because of military service or disability, to continue or wind up the agency’s affairs (Fla. Stat. § 626.175).

Military service

A Florida licensee who cannot meet continuing education requirements because of active military duty may ask the Department of Financial Services in writing for a waiver (Fla. Stat. § 626.2815(2)).

Renewal and reinstatement

In Florida, what is renewed on a schedule is an agent’s appointment by an insurer, and a licensed agent must also complete continuing education (Fla. Stat. §§ 626.381, 626.2815).

The appointing insurer renews the agent’s appointment in the agent’s birth month and every 24 months after that (Fla. Stat. § 626.381(1)).

An agent who goes 48 months without an appointment for a class of insurance on the license cannot be appointed for that class again until qualifying as a first-time applicant (Fla. Stat. § 626.431(3)).

Continuing education

Every state, including Florida, requires licensed producers to complete continuing education (CE).

In Florida:

Every 2 years, a licensee must complete a 4-hour update course specific to the license held, plus 20 hours of elective continuing education (16 hours for one licensed 6 or more years) (Fla. Stat. § 626.2815).

Notice of change of name or address

A Florida licensee must notify the Department of Financial Services in writing within 30 days after a change of name, residence or business address, mailing address, telephone number or email address (Fla. Stat. § 626.551).

The model also requires a producer to report to the regulator within 30 days any administrative action taken against the producer in another state or by another government agency, counted from the final disposition, and any criminal prosecution in any jurisdiction, counted from the initial pretrial hearing date. A producer who does business under any name other than their legal name must notify the regulator before using it.

Company regulations

An insurance company must be authorized by the Office of Insurance Regulation to conduct business in Florida.

To receive a certificate of authority, the company applies to the Commissioner and files its charter or articles of incorporation, financial statements showing that it meets the state’s capital and surplus requirements, and the other documents and fees the state requires.

Capital and surplus requirement

A company authorized to conduct insurance business in Florida must meet minimum corporate standards.

The certificate of authority allows the insurer to conduct business in Florida only if it maintains the minimum capital or permanent surplus required. In Florida, the Office of Insurance Regulation must suspend or revoke the certificate of authority of an insurer it finds no longer meets the requirements for the authority originally granted, or in unsound financial condition (Fla. Stat. § 624.418(1)).

Duties of the Commissioner of Insurance Regulation

The Florida Commissioner of Insurance Regulation is a state executive position in Florida state government.

The Commissioner heads the Florida Office of Insurance Regulation, which regulates the state’s insurance providers.
Agents are licensed and disciplined by a separate agency, the Department of Financial Services, headed by the elected Chief Financial Officer (Fla. Stat. § 20.121).
The Commissioner is appointed by the Florida Financial Services Commission, an independent panel composed of the governor, attorney general, and several other state executive officers.
There are no term limits associated with the office.

The Commissioner establishes and enforces regulations in the Florida insurance market in a manner that protects consumers and encourages economic development.

Those duties include:

Investigate all claims and complaints of legal violations relating to insurance. In Florida, investigations of agents belong to the Department of Financial Services (Fla. Stat. § 624.317(1)).
If the Commissioner finds that laws have been violated, the findings and supporting documents may be referred for criminal prosecution.
Monitor transactions of all companies including domestic, foreign, and alien insurance companies.
The Office of Insurance Regulation must examine a high-risk insurer at least once every 3 years, and an average- or low-risk insurer at least once every 5 years (Fla. Stat. § 624.316(2)(a)).
Audit the books and records of any resident producer as frequently as necessary. In Florida, the Department of Financial Services investigates agents’ accounts and records (Fla. Stat. § 624.317(1)).
Collect all fees associated with producers and insurers. In Florida, the Department of Financial Services, the Financial Services Commission or the Office collects each fee, as appropriate to the service (Fla. Stat. § 624.501).
Determine and administer fines for insurers’ violations; fines on agents are imposed by the Department of Financial Services (Fla. Stat. § 626.681(1)).
Issue reports on the suspension and revocation of insurers’ certificates of authority; agents’ licenses are suspended and revoked by the Department of Financial Services (Fla. Stat. § 626.611).
Approve documentation used by insurance companies such as forms and rates.

Sidenote

Know this...

The Commissioner does not have the authority to arrest, issue injunctions or sentence jail time. They can get the process started, but It takes a law officer to arrest and a judge or court of law to issue injunctions or sentence jail time.

In Florida, investigators of the Department of Financial Services’ fraud division are state law enforcement officers who may make arrests for criminal violations their investigations establish (Fla. Stat. § 626.989(7)).

Suspend, revoke or non-renew

The Department of Financial Services has the authority to suspend, revoke, or refuse to renew an agent’s license for:

Providing false information on the application for an insurance license.
Omitting any relevant information on an application that would have disqualified the individual from being eligible to receive a license.
Being found guilty of a violation or the noncompliance of insurance regulations and laws…
Committing fraud while attempting to obtain an insurance license.
Misappropriating, converting or unlawfully withholding money belonging to insurers, insureds, beneficiaries or others that was received in the course of business (Fla. Stat. § 626.611(1)(j)).
Providing false information in reference to the terms and conditions of an insurance contract.
Having been found guilty of, or having pleaded guilty or no contest to, any felony, any crime punishable by imprisonment of 1 year or more, or a misdemeanor directly related to the financial services business, whether or not a judgment of conviction was entered (Fla. Stat. § 626.611(1)(n)).
Having admitted or been found to have committed any insurance unfair trade practice or fraud.
Having engaged in activities of a fraudulent nature which allowed the person to involve themselves in dishonest, coercive, untrustworthy, and financially irresponsible practices.
Having had a prior insurance license revoked or suspended in a state other than Florida.
Using another person’s identity and forging their name on an insurance application.
Being found guilty of using unethical practices or cheating on an examination for an insurance license.

Cease and desist

If the Department of Financial Services or the Office of Insurance Regulation finds that a person has engaged in an unfair or deceptive act or practice, it may order the person to cease and desist (Fla. Stat. § 626.9581).

A cease and desist order does not, by itself, suspend or revoke the producer’s registration.
It does require the producer to stop or limit the activity addressed in the order.

Hearing and penalties

A person facing action by the Department of Financial Services or the Office of Insurance Regulation is entitled to notice and an opportunity for a hearing, within time limits set by Florida law, and may ask a court to review the final order. In Florida the hearing comes first: the complaint gives notice of an opportunity for a hearing, and a cease and desist order follows if no hearing is requested or the charges are proven at one (Fla. Stat. §§ 624.310(3), 626.9581); only an emergency order takes effect immediately on service (§ 624.310(3)(f)).

A violation of the insurance laws can bring a civil penalty in addition to action against a license. State law sets the maximum, usually per violation and often with a cap on the total, and a higher tier commonly applies to a violation that was knowing or flagrant. Some violations are also crimes.

The Department of Financial Services may fine a licensee up to $500 per violation, or up to $3,500 per violation for willful misconduct or a willful violation, in addition to or instead of suspending or revoking the license (Fla. Stat. § 626.681(1)). A fine may replace a suspension or revocation only on a first offense and only where the action is not mandatory (§ 626.681(1)); a violation of the unfair trade practices law carries a fine of up to $12,500, or up to $100,000 if willful (Fla. Stat. § 626.9521(2)).

Unfair claims settlement practices

Under the NAIC’s model act, these practices are violations when committed flagrantly and in conscious disregard of the law, or often enough to indicate a general business practice. In Florida, settling a claim on an application altered without the insured’s knowledge or consent, or making a material misrepresentation to settle on less favorable terms than the policy provides, is a violation by itself; the other listed practices require a general business practice (Fla. Stat. § 626.9541(1)(i)).

The intentional obstruction and delay of claims payment or the delay of a claims investigation is a violation of regulation.
Neglecting to provide a prompt response and written explanation of insurance policy terms, conditions, and laws related to the contract are examples of unfair claims settlement practices.
Failure to provide claims without launching a thorough investigation is a violation of regulation.
Making settlement claims based on information contained on an application that has been altered without the insured’s consent is a violation of regulation.
Denying a claim without conducting a thorough investigation.
Attempting to settle a claim for less than fair market value.

Policy forms

Insurers file their policy forms with the Commissioner.

In Florida, a policy form is filed with the Office of Insurance Regulation at least 30 days before it is used, and is deemed approved at the end of the 30 days unless the office has approved or disapproved it (Fla. Stat. § 627.410). Most commercial property and casualty forms, other than workers’ compensation, may instead be filed for information 30 days before use with a certification that they comply with state law (Fla. Stat. § 627.4102).

If a policy provision conflicts with Florida law, the policy is read as amended to conform to the law.

Record maintenance

A producer keeps records of each transaction (the policies placed, the insureds, the premiums received and any changes) and makes them available for inspection by the Department of Financial Services.

A Florida agent keeps records of the policies the agent transacts, such as applications and endorsements, in the office or readily accessible electronically, for at least 5 years after the policy expires (Fla. Stat. § 626.748).

Fraudulent producer representation

An insurance producer who represents to the public that they are licensed to conduct insurance business in Florida, but has not passed the appropriate licensing examination, is in violation of regulation. In Florida, no one may act as or hold themselves out to be an agent unless currently licensed by the Department of Financial Services and appointed (Fla. Stat. § 626.112(1)(a)).

This includes any public communication, such as:

Advertisements
Letterheads
Circulars
Business cards
Other methods of representation

A producer found guilty of conducting business in Florida in any line of insurance for which they are not properly licensed may have any other insurance license suspended or revoked. In Florida, when any one license is suspended, revoked or not renewed, the Department must at the same time suspend or revoke all the licensee’s other licenses and appointments (Fla. Stat. § 626.651(1)).

Misrepresentation

Misrepresentation involving the creation or distribution of policies, quotes, and illustrations designed to provide inaccurate information about the terms and conditions of a policy is prohibited.
Providing inaccurate or incomplete information or comparisons regarding the benefits of a policy is an example of misrepresentation.
Providing inaccurate or incomplete information for the purpose of inducing, or tending to induce, the lapse, exchange, conversion, forfeiture, or surrender of a policy is a violation as well (twisting).

In Florida, each of these misrepresentation rules reaches only a person who acts knowingly (Fla. Stat. § 626.9541(1)(a)).

False advertising

Making, publishing or circulating an advertisement, announcement or statement about the business of insurance that is untrue, deceptive or misleading is an unfair trade practice under state law, based on the NAIC’s model act. The medium does not matter: the rule reaches newspapers, magazines, radio and television, and also notices, circulars, pamphlets, letters, posters and any other way of placing the statement before the public. The model act’s test is whether the statement is untrue, deceptive or misleading, not whether the person meant to deceive. Florida’s statute is narrower: it reaches such a statement only when made knowingly (Fla. Stat. § 626.9541(1)(b)).

Defamation

Defamation of an insurer is an unfair trade practice under state law, based on the NAIC’s model act: making, publishing or circulating an oral or written statement that is false, or maliciously critical of or derogatory to the financial condition of an insurer, and that is calculated to injure that insurer or any other person engaged in the business of insurance. Florida’s statute reaches a knowingly made statement that is false or maliciously critical of, or derogatory to, any person and is calculated to injure that person (Fla. Stat. § 626.9541(1)©). Spreading an untrue rumor that a competing insurer is about to fail is the classic example.

Boycott, coercion and intimidation

Entering into an agreement to commit, or by concerted action committing, any act of boycott, coercion or intimidation that results or tends to result in unreasonable restraint of, or monopoly in, the business of insurance is prohibited.

False financial statements

Knowingly making a false or fraudulent statement on or relative to an application for insurance, to obtain a fee, commission, money or other benefit, is an unfair trade practice in Florida (Fla. Stat. § 626.9541(1)(k)1).

Illegal inducements

Offering anything of value not specified in the policy (money, a service, a favor or a gift) as an inducement to buy insurance is prohibited unless state law expressly allows it, and any agreement made as part of the sale must be written into the policy.

Florida’s unfair trade practices law prohibits paying, allowing or giving, or offering, directly or indirectly, as an inducement to an insurance contract, any unlawful rebate of premium, special favor or advantage, or valuable consideration or inducement not specified in the contract (Fla. Stat. § 626.9541(1)(h)).

Florida permits giving insureds, prospective insureds or others merchandise, store gift cards, gift certificates, event tickets or other items worth $100 or less in total per insured or prospective insured in a calendar year, and charitable contributions of up to $100 per insured or prospective insured in a calendar year on their behalf (Fla. Stat. § 626.9541(1)(m)).

Unfair discrimination

Unfair discrimination is treating people or risks that present the same hazard differently. The NAIC’s model act, on which state unfair trade practices laws are based, prohibits:

Unfair discrimination between individuals of the same class and equal expectation of life in life insurance and annuity rates, dividends, benefits or terms
Unfair discrimination between individuals of the same class and essentially the same hazard in health insurance premiums, benefits or terms
Refusing, limiting or canceling coverage because of a person’s sex, marital status, race, religion or national origin
In property and casualty insurance, refusing or limiting coverage solely because of a risk’s geographic location, unless sound underwriting and actuarial principles justify it, or solely because the applicant or insured is physically or mentally impaired

Many states also expressly forbid refusing or limiting coverage solely because a person is blind or partially blind. In Florida the impairment rules are narrower: an insurer may not refuse, cancel or surcharge motor vehicle insurance because the insured or applicant is handicapped or physically disabled (Fla. Stat. § 626.9541(1)(o)6), and a health insurer may not refuse coverage solely because a person is mentally or physically handicapped (§ 627.644).

Errors & Omissions

Errors & Omissions (E&O) insurance is a type of professional liability insurance that protects insurance agents if they are sued for negligent performance of their duties.

E&O covers honest mistakes that result in (financial) damage to customers or prospects.
E&O does not cover violations of insurance regulation.

Rebating

Florida prohibits unlawful rebating (Fla. Stat. § 626.9541(1)(h)), but an agent may rebate part of a commission if the rebate follows a schedule the agent filed with the insurer, is available to every insured in the same actuarial class and applied uniformly, is displayed in the agent’s place of business, and the insurer does not prohibit its agents from rebating (Fla. Stat. § 626.572(1)).

Sidenote

Know this...

To “solicit” or “negotiate” insurance implies that the person is licensed.

Sharing commission

The splitting or sharing of commissions with a licensed producer is allowed.

Both parties must be licensed in the line of business in which the proposed commission is to be split. Under the NAIC’s model act, a commission may also be paid to an insurance agency, or to a person who does not sell, solicit or negotiate insurance. Florida is narrower: an agent may share commissions only with other agents appointed and licensed to write the same kinds of insurance, or with a customer representative (Fla. Stat. § 626.753(1)(a)).

Twisting

Providing false information or expressing derogatory ideas about the financial conditions of a competitor company with the intent to lapse or surrender an existing policy is a violation of the law. Florida’s rule reaches knowingly misleading representations, or incomplete or fraudulent comparisons or material omissions, made to induce anyone to lapse, forfeit, surrender, terminate, retain, borrow on or convert a policy, or to buy one from another insurer (Fla. Stat. § 626.9541(1)(l)).

Under the NAIC’s model act, twisting is a misrepresentation made to induce a policyholder to lapse, forfeit, surrender, exchange or convert a policy. A false or maliciously critical statement about a competing insurer’s finances, made to injure it, is defamation.

Any written or oral statements used to induce the lapse, termination, exchange, or surrender of an insurance contract based on inaccurate information is prohibited.

Unfair marketing practices

The Office of Insurance Regulation is responsible for establishing minimum standards for the full and fair disclosure of policy content.

They also require:

Standardization of policy content
Simplification of the terms used to describe insurance coverage

Advertising may not involve the following:

Any statement or implication that policies are approved, or that the financial condition of a company is endorsed, by any government agency or by any independent group, individual, organization or society, unless that is the fact.
Any statements regarding advertising that are false or untrue in reference to the time frame in which claims are paid.

Gramm-Leach Bliley Act (GLBA)

This law repealed the Glass-Steagall Act of 1933, allowing consolidation of commercial banks, investment institutions, and insurance companies.

GLBA established a framework of responsibilities for federal and state regulators across these financial industries. It permits financial services companies to merge and engage in a variety of new business activities, including insurance, while attempting to address the regulatory issues raised by such combinations.

McCarran-Ferguson Act

Federal law signed in 1945 in which Congress declared that the insurance industry would be regulated at the state level.

Grants insurers a limited exemption from federal antitrust legislation. Since 2021 the exemption does not cover the business of health insurance, apart from narrow activities such as sharing historical loss data (15 U.S.C. § 1013©).

National Association of Insurance Commissioners (NAIC)

The U.S. standard-setting and regulatory support organization is created and governed by the chief insurance regulators from the 50 states, the District of Columbia, and five U.S. territories.

Through the NAIC, state insurance regulators:

Establish standards and best practices
Conduct peer review
Coordinate regulatory oversight

NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S.

Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA, 15 U.S.C. 1681) regulates consumer reporting agencies and the use of consumer reports, such as credit reports, MIB records and investigative reports, including in insurance underwriting.

When an insurer requests an investigative consumer report, it must disclose that to the consumer within 3 days of the request
When an insurer takes adverse action based on a consumer report, it must notify the consumer and identify the reporting agency. The consumer then has 60 days to request a free copy of the report and may dispute inaccurate information

Privacy Act of 1974

The federal Privacy Act of 1974 governs how federal agencies handle personal information. It does not apply to private insurers. An insurer’s use of an applicant’s personal information is governed by the FCRA, the Gramm-Leach-Bliley Act and state insurance privacy law.

Under Florida’s rule on the privacy of consumer financial and health information, an authorization to disclose nonpublic personal health information must state how long it remains valid, which may be no more than 24 months (Fla. Admin. Code R. 69O-128.018).

Telemarketing

The National Do Not Call Registry is a list of telephone numbers whose owners do not want to receive telemarketing calls. Telemarketers may not call registered numbers without the person’s permission or an established business relationship, and unsolicited sales calls:

May be made only between 8 a.m. and 9 p.m. in the recipient’s local time under federal rules; Florida’s own law is narrower, barring commercial telephone solicitation calls before 8 a.m. or after 8 p.m. in the called person’s time zone, and more than three calls in 24 hours on the same subject, and those limits apply to licensed insurance agents too (Fla. Stat. §§ 501.616(6), 501.604)
Must disclose the caller’s identity, the company the caller represents and that the purpose is a sale

CAN-SPAM

A commercial email must:

Be identified clearly as an advertisement
Carry accurate header information and a subject line that is not deceptive
Include the sender’s valid physical postal address
Offer a way to opt out, and the sender must honor an opt-out within 10 business days

Insurance guaranty association

Every state has a property and casualty insurance guaranty association that pays covered claims when a member insurer becomes insolvent. Insurers licensed to write the covered lines in the state must belong to it, and it is funded by assessments on its members.

The Florida Insurance Guaranty Association pays each covered claim up to an amount less than $300,000, and a homeowner’s policy is covered for an additional $200,000 for the part of a claim relating only to damage to the structure and contents (Fla. Stat. § 631.57(1)(a)).

Auto insurance state minimum

A state’s financial responsibility law sets the minimum liability an auto policy must carry, written as a split limit: the first number is bodily injury liability per person, the second bodily injury liability per accident, and the third property damage liability per accident, each in thousands of dollars.

Florida’s minimums are $10,000 of personal injury protection (PIP) for medical and disability benefits, plus $5,000 in death benefits (Fla. Stat. § 627.736(1)), and $10,000 of property damage liability for every registered vehicle (Fla. Stat. § 324.022(1)).

Licensing

Minimum age: 18, must be Florida resident before applying

Pre-licensing course and exam

General lines agent: 200 hours (3 ethics) within 4 years; personal lines: 60 hours
Military members/veterans/spouses exempt from coursework
Passing score: 70% on all exams

Fingerprints/background check

Fingerprints + fee required before license approval

Controlled business

Insurance on producer’s own/family/employer/controlled business interests
License may be refused/suspended/revoked if controlled business commissions exceed 50% of total in any 12-month period

Non-resident license

Florida waives exam for nonresidents with comparable license elsewhere
Requires: current resident license in good standing, application/fees paid, reciprocity
Address change: file within 30 days
Moving to new state: apply for resident license within 90 days, no repeat of prelicensing/exam

Temporary license

Issued without exam to keep business serviced (death, disability, military service of producer)
Regulator may limit scope, require licensed sponsor
Florida: nonrenewable, up to 6 months

Military service

Active duty licensees may request written waiver of CE requirements

Renewal and reinstatement

Agent appointment renewed in birth month, every 24 months
48 months without appointment in a class = must requalify as first-time applicant

Continuing education

Every 2 years: 4-hour update course + 20 hours electives (16 hours if licensed 6+ years)

Notice of change of name or address

Must notify DFS within 30 days of name/address/contact changes
Report administrative/criminal actions within 30 days of final disposition/pretrial hearing

Company regulations

Insurer must have certificate of authority from Office of Insurance Regulation
Requires charter, financial statements, capital/surplus proof, fees

Capital and surplus requirement

Certificate suspended/revoked if insurer fails to maintain minimum capital/surplus or is financially unsound

Duties of the Commissioner of Insurance Regulation

Heads Office of Insurance Regulation; appointed by Financial Services Commission; no term limits
DFS (Chief Financial Officer) handles agent licensing/discipline
Examine high-risk insurers every 3 years, average/low-risk every 5 years
Approves forms/rates, monitors insurers, refers violations for prosecution
Cannot arrest, issue injunctions, or sentence jail time (law enforcement/courts do)

Suspend, revoke or non-renew

Grounds: false application info, fraud, misappropriation of funds, felony/related misdemeanor conviction, unfair trade practices, prior license revocation elsewhere, exam cheating

Cease and desist

Issued for unfair/deceptive acts
Does not itself suspend/revoke license; requires stopping specific activity

Hearing and penalties

Entitled to notice/hearing before cease and desist (except emergency orders)
Fines: up to $500/violation, $3,500 for willful misconduct
Unfair trade practices: up to $12,500 ($100,000 if willful)

Unfair claims settlement practices

Violations include: delaying claims, failing to investigate, denying without investigation, settling based on altered application, misrepresenting policy terms

Policy forms

Filed with OIR 30 days before use; deemed approved if no action taken
Commercial P&C forms may file for information only with compliance certification

Record maintenance

Agents keep transaction records 5 years after policy expiration

Fraudulent producer representation

Cannot hold self out as licensed agent without license/appointment
Suspension of one license triggers suspension of all licenses/appointments

Misrepresentation

Prohibits inaccurate info on policies, comparisons, or inducing lapse/surrender (twisting)
Florida requires knowing conduct

False advertising

Untrue/deceptive/misleading statements about insurance business prohibited
Florida requires knowing misconduct (narrower than NAIC model)

Defamation

False/malicious statements about insurer’s financial condition, made to injure
Florida covers statements about any person, if knowingly made

Boycott, coercion and intimidation

Prohibits concerted acts restraining trade or creating monopoly in insurance business

False financial statements

Knowingly false statements on applications to obtain fee/commission/benefit prohibited

Illegal inducements

Cannot offer unlisted value as inducement to buy insurance
Florida allows gifts/charitable contributions up to $100 per person/year

Unfair discrimination

Prohibits differential treatment based on sex, marital status, race, religion, national origin
P&C: cannot discriminate solely by geographic location or disability without actuarial basis
Florida: no discrimination in auto insurance for handicap; health insurers can’t refuse for mental/physical handicap

Errors & Omissions

E&O insurance protects agents from negligence lawsuits
Covers honest mistakes causing financial damage; does NOT cover regulatory violations

Rebating

Prohibited unless: rebate follows filed schedule, available to same actuarial class uniformly, displayed in office, insurer permits it

Sharing commission

Allowed only between licensed agents in same line, or with customer representative (Florida)

Twisting

Misrepresentation to induce policy lapse/surrender/exchange
Requires knowing, misleading, or fraudulent comparisons (Florida)

Unfair marketing practices

OIR sets standards for full/fair disclosure, policy standardization
Advertising cannot falsely imply government/organization endorsement or misstate claims timing

Gramm-Leach Bliley Act (GLBA)

Repealed Glass-Steagall; allows merger of banks, investment firms, insurers
Establishes regulatory framework across financial industries

McCarran-Ferguson Act

1945 law: insurance regulated at state level
Grants limited antitrust exemption (excludes health insurance since 2021)

National Association of Insurance Commissioners (NAIC)

Standard-setting body governed by state insurance commissioners
Establishes standards, conducts peer review, coordinates oversight

Fair Credit Reporting Act

Governs consumer reports (credit, MIB, investigative) used in underwriting
Investigative report requests: disclose within 3 days
Adverse action: consumer has 60 days to request free report/dispute

Privacy Act of 1974

Governs federal agencies only, not private insurers
Insurer privacy governed by FCRA, GLBA, state law
Florida: health info authorization valid max 24 months

Telemarketing

National Do Not Call Registry protects consumers
Federal: calls allowed 8am-9pm local time
Florida: stricter, 8am-8pm, max 3 calls/24hrs same subject
Must disclose caller identity, company, sales purpose

CAN-SPAM

Commercial emails must: identify as ad, accurate headers/subject, valid postal address, opt-out honored within 10 business days

Insurance guaranty association

Pays claims when member insurer becomes insolvent
Florida: covers claims up to $300,000, homeowners get additional $200,000 for structure/contents

Auto insurance state minimum

Split limit format: bodily injury/person, bodily injury/accident, property damage/accident
Florida: $10,000 PIP + $5,000 death benefits, $10,000 property damage liability

Florida State Regulations & NAIC Insurance Law

Licensing

To apply for a Florida resident producer’s license, you must:

Be at least 18 years old.
Be a Florida resident before you submit your application.

Pre-licensing course and exam

The passing score on every Florida insurance licensing examination is 70% (Pearson VUE, Florida Insurance Candidate Handbook).

Fingerprints/background check

Controlled business

Non-resident license

Is currently licensed as a resident, and in good standing, in the home state
Has applied (the home-state application or the Uniform Application) and paid the fees
Lives in a home state that grants nonresident licenses to residents of this state on the same basis (reciprocity)

Temporary license

Most states allow the insurance regulator to issue a temporary license, without an examination, when one is needed to keep an insurance business serviced. Typical cases are:

The surviving spouse or personal representative of a producer who dies or becomes disabled, to allow time to sell the business or train new people
A member or employee of a business entity producer, on the death or disability of its designated producer
The designee of a producer entering active military service

The regulator may limit what a temporary licensee may do and may require a licensed sponsor who takes responsibility for the temporary licensee’s acts.

Military service

Renewal and reinstatement

In Florida, what is renewed on a schedule is an agent’s appointment by an insurer, and a licensed agent must also complete continuing education (Fla. Stat. §§ 626.381, 626.2815).

The appointing insurer renews the agent’s appointment in the agent’s birth month and every 24 months after that (Fla. Stat. § 626.381(1)).

Continuing education

Every state, including Florida, requires licensed producers to complete continuing education (CE).

In Florida:

Every 2 years, a licensee must complete a 4-hour update course specific to the license held, plus 20 hours of elective continuing education (16 hours for one licensed 6 or more years) (Fla. Stat. § 626.2815).

Notice of change of name or address

Company regulations

An insurance company must be authorized by the Office of Insurance Regulation to conduct business in Florida.

Capital and surplus requirement

A company authorized to conduct insurance business in Florida must meet minimum corporate standards.

The certificate of authority allows the insurer to conduct business in Florida only if it maintains the minimum capital or permanent surplus required. In Florida, the Office of Insurance Regulation must suspend or revoke the certificate of authority of an insurer it finds no longer meets the requirements for the authority originally granted, or in unsound financial condition (Fla. Stat. § 624.418(1)).

Duties of the Commissioner of Insurance Regulation

The Florida Commissioner of Insurance Regulation is a state executive position in Florida state government.

The Commissioner heads the Florida Office of Insurance Regulation, which regulates the state’s insurance providers.
Agents are licensed and disciplined by a separate agency, the Department of Financial Services, headed by the elected Chief Financial Officer (Fla. Stat. § 20.121).
The Commissioner is appointed by the Florida Financial Services Commission, an independent panel composed of the governor, attorney general, and several other state executive officers.
There are no term limits associated with the office.

The Commissioner establishes and enforces regulations in the Florida insurance market in a manner that protects consumers and encourages economic development.

Those duties include:

Investigate all claims and complaints of legal violations relating to insurance. In Florida, investigations of agents belong to the Department of Financial Services (Fla. Stat. § 624.317(1)).
If the Commissioner finds that laws have been violated, the findings and supporting documents may be referred for criminal prosecution.
Monitor transactions of all companies including domestic, foreign, and alien insurance companies.
The Office of Insurance Regulation must examine a high-risk insurer at least once every 3 years, and an average- or low-risk insurer at least once every 5 years (Fla. Stat. § 624.316(2)(a)).
Audit the books and records of any resident producer as frequently as necessary. In Florida, the Department of Financial Services investigates agents’ accounts and records (Fla. Stat. § 624.317(1)).
Collect all fees associated with producers and insurers. In Florida, the Department of Financial Services, the Financial Services Commission or the Office collects each fee, as appropriate to the service (Fla. Stat. § 624.501).
Determine and administer fines for insurers’ violations; fines on agents are imposed by the Department of Financial Services (Fla. Stat. § 626.681(1)).
Issue reports on the suspension and revocation of insurers’ certificates of authority; agents’ licenses are suspended and revoked by the Department of Financial Services (Fla. Stat. § 626.611).
Approve documentation used by insurance companies such as forms and rates.

Sidenote

Know this...

Suspend, revoke or non-renew

The Department of Financial Services has the authority to suspend, revoke, or refuse to renew an agent’s license for:

Providing false information on the application for an insurance license.
Omitting any relevant information on an application that would have disqualified the individual from being eligible to receive a license.
Being found guilty of a violation or the noncompliance of insurance regulations and laws…
Committing fraud while attempting to obtain an insurance license.
Misappropriating, converting or unlawfully withholding money belonging to insurers, insureds, beneficiaries or others that was received in the course of business (Fla. Stat. § 626.611(1)(j)).
Providing false information in reference to the terms and conditions of an insurance contract.
Having been found guilty of, or having pleaded guilty or no contest to, any felony, any crime punishable by imprisonment of 1 year or more, or a misdemeanor directly related to the financial services business, whether or not a judgment of conviction was entered (Fla. Stat. § 626.611(1)(n)).
Having admitted or been found to have committed any insurance unfair trade practice or fraud.
Having engaged in activities of a fraudulent nature which allowed the person to involve themselves in dishonest, coercive, untrustworthy, and financially irresponsible practices.
Having had a prior insurance license revoked or suspended in a state other than Florida.
Using another person’s identity and forging their name on an insurance application.
Being found guilty of using unethical practices or cheating on an examination for an insurance license.

Cease and desist

A cease and desist order does not, by itself, suspend or revoke the producer’s registration.
It does require the producer to stop or limit the activity addressed in the order.

Hearing and penalties

Unfair claims settlement practices

The intentional obstruction and delay of claims payment or the delay of a claims investigation is a violation of regulation.
Neglecting to provide a prompt response and written explanation of insurance policy terms, conditions, and laws related to the contract are examples of unfair claims settlement practices.
Failure to provide claims without launching a thorough investigation is a violation of regulation.
Making settlement claims based on information contained on an application that has been altered without the insured’s consent is a violation of regulation.
Denying a claim without conducting a thorough investigation.
Attempting to settle a claim for less than fair market value.

Policy forms

Insurers file their policy forms with the Commissioner.

If a policy provision conflicts with Florida law, the policy is read as amended to conform to the law.

Record maintenance

Fraudulent producer representation

This includes any public communication, such as:

Advertisements
Letterheads
Circulars
Business cards
Other methods of representation

Misrepresentation

Misrepresentation involving the creation or distribution of policies, quotes, and illustrations designed to provide inaccurate information about the terms and conditions of a policy is prohibited.
Providing inaccurate or incomplete information or comparisons regarding the benefits of a policy is an example of misrepresentation.
Providing inaccurate or incomplete information for the purpose of inducing, or tending to induce, the lapse, exchange, conversion, forfeiture, or surrender of a policy is a violation as well (twisting).

In Florida, each of these misrepresentation rules reaches only a person who acts knowingly (Fla. Stat. § 626.9541(1)(a)).

False advertising

Defamation

Boycott, coercion and intimidation

False financial statements

Illegal inducements

Unfair discrimination

Unfair discrimination is treating people or risks that present the same hazard differently. The NAIC’s model act, on which state unfair trade practices laws are based, prohibits:

Unfair discrimination between individuals of the same class and equal expectation of life in life insurance and annuity rates, dividends, benefits or terms
Unfair discrimination between individuals of the same class and essentially the same hazard in health insurance premiums, benefits or terms
Refusing, limiting or canceling coverage because of a person’s sex, marital status, race, religion or national origin
In property and casualty insurance, refusing or limiting coverage solely because of a risk’s geographic location, unless sound underwriting and actuarial principles justify it, or solely because the applicant or insured is physically or mentally impaired

Errors & Omissions

Errors & Omissions (E&O) insurance is a type of professional liability insurance that protects insurance agents if they are sued for negligent performance of their duties.

E&O covers honest mistakes that result in (financial) damage to customers or prospects.
E&O does not cover violations of insurance regulation.

Rebating

Sidenote

Know this...

To “solicit” or “negotiate” insurance implies that the person is licensed.

Sharing commission

The splitting or sharing of commissions with a licensed producer is allowed.

Both parties must be licensed in the line of business in which the proposed commission is to be split. Under the NAIC’s model act, a commission may also be paid to an insurance agency, or to a person who does not sell, solicit or negotiate insurance. Florida is narrower: an agent may share commissions only with other agents appointed and licensed to write the same kinds of insurance, or with a customer representative (Fla. Stat. § 626.753(1)(a)).

Twisting

Any written or oral statements used to induce the lapse, termination, exchange, or surrender of an insurance contract based on inaccurate information is prohibited.

Unfair marketing practices

The Office of Insurance Regulation is responsible for establishing minimum standards for the full and fair disclosure of policy content.

They also require:

Standardization of policy content
Simplification of the terms used to describe insurance coverage

Advertising may not involve the following:

Any statement or implication that policies are approved, or that the financial condition of a company is endorsed, by any government agency or by any independent group, individual, organization or society, unless that is the fact.
Any statements regarding advertising that are false or untrue in reference to the time frame in which claims are paid.

Gramm-Leach Bliley Act (GLBA)

This law repealed the Glass-Steagall Act of 1933, allowing consolidation of commercial banks, investment institutions, and insurance companies.

McCarran-Ferguson Act

Federal law signed in 1945 in which Congress declared that the insurance industry would be regulated at the state level.

Grants insurers a limited exemption from federal antitrust legislation. Since 2021 the exemption does not cover the business of health insurance, apart from narrow activities such as sharing historical loss data (15 U.S.C. § 1013©).

National Association of Insurance Commissioners (NAIC)

The U.S. standard-setting and regulatory support organization is created and governed by the chief insurance regulators from the 50 states, the District of Columbia, and five U.S. territories.

Through the NAIC, state insurance regulators:

Establish standards and best practices
Conduct peer review
Coordinate regulatory oversight

Fair Credit Reporting Act

When an insurer requests an investigative consumer report, it must disclose that to the consumer within 3 days of the request
When an insurer takes adverse action based on a consumer report, it must notify the consumer and identify the reporting agency. The consumer then has 60 days to request a free copy of the report and may dispute inaccurate information

Privacy Act of 1974

Telemarketing

May be made only between 8 a.m. and 9 p.m. in the recipient’s local time under federal rules; Florida’s own law is narrower, barring commercial telephone solicitation calls before 8 a.m. or after 8 p.m. in the called person’s time zone, and more than three calls in 24 hours on the same subject, and those limits apply to licensed insurance agents too (Fla. Stat. §§ 501.616(6), 501.604)
Must disclose the caller’s identity, the company the caller represents and that the purpose is a sale

CAN-SPAM

A commercial email must:

Be identified clearly as an advertisement
Carry accurate header information and a subject line that is not deceptive
Include the sender’s valid physical postal address
Offer a way to opt out, and the sender must honor an opt-out within 10 business days

Insurance guaranty association

Auto insurance state minimum

Florida State Regulations & NAIC Insurance Law

Licensing

To apply for a Florida resident producer’s license, you must:

Be at least 18 years old.
Be a Florida resident before you submit your application.

Pre-licensing course and exam

The passing score on every Florida insurance licensing examination is 70% (Pearson VUE, Florida Insurance Candidate Handbook).

Fingerprints/background check

Controlled business

Non-resident license

Is currently licensed as a resident, and in good standing, in the home state
Has applied (the home-state application or the Uniform Application) and paid the fees
Lives in a home state that grants nonresident licenses to residents of this state on the same basis (reciprocity)

Temporary license

Most states allow the insurance regulator to issue a temporary license, without an examination, when one is needed to keep an insurance business serviced. Typical cases are:

The surviving spouse or personal representative of a producer who dies or becomes disabled, to allow time to sell the business or train new people
A member or employee of a business entity producer, on the death or disability of its designated producer
The designee of a producer entering active military service

The regulator may limit what a temporary licensee may do and may require a licensed sponsor who takes responsibility for the temporary licensee’s acts.

Military service

Renewal and reinstatement

In Florida, what is renewed on a schedule is an agent’s appointment by an insurer, and a licensed agent must also complete continuing education (Fla. Stat. §§ 626.381, 626.2815).

The appointing insurer renews the agent’s appointment in the agent’s birth month and every 24 months after that (Fla. Stat. § 626.381(1)).

Continuing education

Every state, including Florida, requires licensed producers to complete continuing education (CE).

In Florida:

Every 2 years, a licensee must complete a 4-hour update course specific to the license held, plus 20 hours of elective continuing education (16 hours for one licensed 6 or more years) (Fla. Stat. § 626.2815).

Notice of change of name or address

Company regulations

An insurance company must be authorized by the Office of Insurance Regulation to conduct business in Florida.

Capital and surplus requirement

A company authorized to conduct insurance business in Florida must meet minimum corporate standards.

The certificate of authority allows the insurer to conduct business in Florida only if it maintains the minimum capital or permanent surplus required. In Florida, the Office of Insurance Regulation must suspend or revoke the certificate of authority of an insurer it finds no longer meets the requirements for the authority originally granted, or in unsound financial condition (Fla. Stat. § 624.418(1)).

Duties of the Commissioner of Insurance Regulation

The Florida Commissioner of Insurance Regulation is a state executive position in Florida state government.

The Commissioner heads the Florida Office of Insurance Regulation, which regulates the state’s insurance providers.
Agents are licensed and disciplined by a separate agency, the Department of Financial Services, headed by the elected Chief Financial Officer (Fla. Stat. § 20.121).
The Commissioner is appointed by the Florida Financial Services Commission, an independent panel composed of the governor, attorney general, and several other state executive officers.
There are no term limits associated with the office.

The Commissioner establishes and enforces regulations in the Florida insurance market in a manner that protects consumers and encourages economic development.

Those duties include:

Investigate all claims and complaints of legal violations relating to insurance. In Florida, investigations of agents belong to the Department of Financial Services (Fla. Stat. § 624.317(1)).
If the Commissioner finds that laws have been violated, the findings and supporting documents may be referred for criminal prosecution.
Monitor transactions of all companies including domestic, foreign, and alien insurance companies.
The Office of Insurance Regulation must examine a high-risk insurer at least once every 3 years, and an average- or low-risk insurer at least once every 5 years (Fla. Stat. § 624.316(2)(a)).
Audit the books and records of any resident producer as frequently as necessary. In Florida, the Department of Financial Services investigates agents’ accounts and records (Fla. Stat. § 624.317(1)).
Collect all fees associated with producers and insurers. In Florida, the Department of Financial Services, the Financial Services Commission or the Office collects each fee, as appropriate to the service (Fla. Stat. § 624.501).
Determine and administer fines for insurers’ violations; fines on agents are imposed by the Department of Financial Services (Fla. Stat. § 626.681(1)).
Issue reports on the suspension and revocation of insurers’ certificates of authority; agents’ licenses are suspended and revoked by the Department of Financial Services (Fla. Stat. § 626.611).
Approve documentation used by insurance companies such as forms and rates.

Sidenote

Know this...

Suspend, revoke or non-renew

The Department of Financial Services has the authority to suspend, revoke, or refuse to renew an agent’s license for:

Providing false information on the application for an insurance license.
Omitting any relevant information on an application that would have disqualified the individual from being eligible to receive a license.
Being found guilty of a violation or the noncompliance of insurance regulations and laws…
Committing fraud while attempting to obtain an insurance license.
Misappropriating, converting or unlawfully withholding money belonging to insurers, insureds, beneficiaries or others that was received in the course of business (Fla. Stat. § 626.611(1)(j)).
Providing false information in reference to the terms and conditions of an insurance contract.
Having been found guilty of, or having pleaded guilty or no contest to, any felony, any crime punishable by imprisonment of 1 year or more, or a misdemeanor directly related to the financial services business, whether or not a judgment of conviction was entered (Fla. Stat. § 626.611(1)(n)).
Having admitted or been found to have committed any insurance unfair trade practice or fraud.
Having engaged in activities of a fraudulent nature which allowed the person to involve themselves in dishonest, coercive, untrustworthy, and financially irresponsible practices.
Having had a prior insurance license revoked or suspended in a state other than Florida.
Using another person’s identity and forging their name on an insurance application.
Being found guilty of using unethical practices or cheating on an examination for an insurance license.

Cease and desist

A cease and desist order does not, by itself, suspend or revoke the producer’s registration.
It does require the producer to stop or limit the activity addressed in the order.

Hearing and penalties

Unfair claims settlement practices

The intentional obstruction and delay of claims payment or the delay of a claims investigation is a violation of regulation.
Neglecting to provide a prompt response and written explanation of insurance policy terms, conditions, and laws related to the contract are examples of unfair claims settlement practices.
Failure to provide claims without launching a thorough investigation is a violation of regulation.
Making settlement claims based on information contained on an application that has been altered without the insured’s consent is a violation of regulation.
Denying a claim without conducting a thorough investigation.
Attempting to settle a claim for less than fair market value.

Policy forms

Insurers file their policy forms with the Commissioner.

If a policy provision conflicts with Florida law, the policy is read as amended to conform to the law.

Record maintenance

Fraudulent producer representation

This includes any public communication, such as:

Advertisements
Letterheads
Circulars
Business cards
Other methods of representation

Misrepresentation

Misrepresentation involving the creation or distribution of policies, quotes, and illustrations designed to provide inaccurate information about the terms and conditions of a policy is prohibited.
Providing inaccurate or incomplete information or comparisons regarding the benefits of a policy is an example of misrepresentation.
Providing inaccurate or incomplete information for the purpose of inducing, or tending to induce, the lapse, exchange, conversion, forfeiture, or surrender of a policy is a violation as well (twisting).

In Florida, each of these misrepresentation rules reaches only a person who acts knowingly (Fla. Stat. § 626.9541(1)(a)).

False advertising

Defamation

Boycott, coercion and intimidation

False financial statements

Illegal inducements

Unfair discrimination

Unfair discrimination is treating people or risks that present the same hazard differently. The NAIC’s model act, on which state unfair trade practices laws are based, prohibits:

Unfair discrimination between individuals of the same class and equal expectation of life in life insurance and annuity rates, dividends, benefits or terms
Unfair discrimination between individuals of the same class and essentially the same hazard in health insurance premiums, benefits or terms
Refusing, limiting or canceling coverage because of a person’s sex, marital status, race, religion or national origin
In property and casualty insurance, refusing or limiting coverage solely because of a risk’s geographic location, unless sound underwriting and actuarial principles justify it, or solely because the applicant or insured is physically or mentally impaired

Errors & Omissions

Errors & Omissions (E&O) insurance is a type of professional liability insurance that protects insurance agents if they are sued for negligent performance of their duties.

E&O covers honest mistakes that result in (financial) damage to customers or prospects.
E&O does not cover violations of insurance regulation.

Rebating

Sidenote

Know this...

To “solicit” or “negotiate” insurance implies that the person is licensed.

Sharing commission

The splitting or sharing of commissions with a licensed producer is allowed.

Both parties must be licensed in the line of business in which the proposed commission is to be split. Under the NAIC’s model act, a commission may also be paid to an insurance agency, or to a person who does not sell, solicit or negotiate insurance. Florida is narrower: an agent may share commissions only with other agents appointed and licensed to write the same kinds of insurance, or with a customer representative (Fla. Stat. § 626.753(1)(a)).

Twisting

Any written or oral statements used to induce the lapse, termination, exchange, or surrender of an insurance contract based on inaccurate information is prohibited.

Unfair marketing practices

The Office of Insurance Regulation is responsible for establishing minimum standards for the full and fair disclosure of policy content.

They also require:

Standardization of policy content
Simplification of the terms used to describe insurance coverage

Advertising may not involve the following:

Any statement or implication that policies are approved, or that the financial condition of a company is endorsed, by any government agency or by any independent group, individual, organization or society, unless that is the fact.
Any statements regarding advertising that are false or untrue in reference to the time frame in which claims are paid.

Gramm-Leach Bliley Act (GLBA)

This law repealed the Glass-Steagall Act of 1933, allowing consolidation of commercial banks, investment institutions, and insurance companies.

McCarran-Ferguson Act

Federal law signed in 1945 in which Congress declared that the insurance industry would be regulated at the state level.

Grants insurers a limited exemption from federal antitrust legislation. Since 2021 the exemption does not cover the business of health insurance, apart from narrow activities such as sharing historical loss data (15 U.S.C. § 1013©).

National Association of Insurance Commissioners (NAIC)

The U.S. standard-setting and regulatory support organization is created and governed by the chief insurance regulators from the 50 states, the District of Columbia, and five U.S. territories.

Through the NAIC, state insurance regulators:

Establish standards and best practices
Conduct peer review
Coordinate regulatory oversight

Fair Credit Reporting Act

When an insurer requests an investigative consumer report, it must disclose that to the consumer within 3 days of the request
When an insurer takes adverse action based on a consumer report, it must notify the consumer and identify the reporting agency. The consumer then has 60 days to request a free copy of the report and may dispute inaccurate information

Privacy Act of 1974

Telemarketing

May be made only between 8 a.m. and 9 p.m. in the recipient’s local time under federal rules; Florida’s own law is narrower, barring commercial telephone solicitation calls before 8 a.m. or after 8 p.m. in the called person’s time zone, and more than three calls in 24 hours on the same subject, and those limits apply to licensed insurance agents too (Fla. Stat. §§ 501.616(6), 501.604)
Must disclose the caller’s identity, the company the caller represents and that the purpose is a sale

CAN-SPAM

A commercial email must:

Be identified clearly as an advertisement
Carry accurate header information and a subject line that is not deceptive
Include the sender’s valid physical postal address
Offer a way to opt out, and the sender must honor an opt-out within 10 business days

Insurance guaranty association

Auto insurance state minimum

Licensing

Minimum age: 18, must be Florida resident before applying

Pre-licensing course and exam

General lines agent: 200 hours (3 ethics) within 4 years; personal lines: 60 hours
Military members/veterans/spouses exempt from coursework
Passing score: 70% on all exams

Fingerprints/background check

Fingerprints + fee required before license approval

Controlled business

Insurance on producer’s own/family/employer/controlled business interests
License may be refused/suspended/revoked if controlled business commissions exceed 50% of total in any 12-month period

Non-resident license

Florida waives exam for nonresidents with comparable license elsewhere
Requires: current resident license in good standing, application/fees paid, reciprocity
Address change: file within 30 days
Moving to new state: apply for resident license within 90 days, no repeat of prelicensing/exam

Temporary license

Issued without exam to keep business serviced (death, disability, military service of producer)
Regulator may limit scope, require licensed sponsor
Florida: nonrenewable, up to 6 months

Military service

Active duty licensees may request written waiver of CE requirements

Renewal and reinstatement

Agent appointment renewed in birth month, every 24 months
48 months without appointment in a class = must requalify as first-time applicant

Continuing education

Every 2 years: 4-hour update course + 20 hours electives (16 hours if licensed 6+ years)

Notice of change of name or address

Must notify DFS within 30 days of name/address/contact changes
Report administrative/criminal actions within 30 days of final disposition/pretrial hearing

Company regulations

Insurer must have certificate of authority from Office of Insurance Regulation
Requires charter, financial statements, capital/surplus proof, fees

Capital and surplus requirement

Certificate suspended/revoked if insurer fails to maintain minimum capital/surplus or is financially unsound

Duties of the Commissioner of Insurance Regulation

Heads Office of Insurance Regulation; appointed by Financial Services Commission; no term limits
DFS (Chief Financial Officer) handles agent licensing/discipline
Examine high-risk insurers every 3 years, average/low-risk every 5 years
Approves forms/rates, monitors insurers, refers violations for prosecution
Cannot arrest, issue injunctions, or sentence jail time (law enforcement/courts do)

Suspend, revoke or non-renew

Grounds: false application info, fraud, misappropriation of funds, felony/related misdemeanor conviction, unfair trade practices, prior license revocation elsewhere, exam cheating

Cease and desist

Issued for unfair/deceptive acts
Does not itself suspend/revoke license; requires stopping specific activity

Hearing and penalties

Entitled to notice/hearing before cease and desist (except emergency orders)
Fines: up to $500/violation, $3,500 for willful misconduct
Unfair trade practices: up to $12,500 ($100,000 if willful)

Unfair claims settlement practices

Violations include: delaying claims, failing to investigate, denying without investigation, settling based on altered application, misrepresenting policy terms

Policy forms

Filed with OIR 30 days before use; deemed approved if no action taken
Commercial P&C forms may file for information only with compliance certification

Record maintenance

Agents keep transaction records 5 years after policy expiration

Fraudulent producer representation

Cannot hold self out as licensed agent without license/appointment
Suspension of one license triggers suspension of all licenses/appointments

Misrepresentation

Prohibits inaccurate info on policies, comparisons, or inducing lapse/surrender (twisting)
Florida requires knowing conduct

False advertising

Untrue/deceptive/misleading statements about insurance business prohibited
Florida requires knowing misconduct (narrower than NAIC model)

Defamation

False/malicious statements about insurer’s financial condition, made to injure
Florida covers statements about any person, if knowingly made

Boycott, coercion and intimidation

Prohibits concerted acts restraining trade or creating monopoly in insurance business

False financial statements

Knowingly false statements on applications to obtain fee/commission/benefit prohibited

Illegal inducements

Cannot offer unlisted value as inducement to buy insurance
Florida allows gifts/charitable contributions up to $100 per person/year

Unfair discrimination

Prohibits differential treatment based on sex, marital status, race, religion, national origin
P&C: cannot discriminate solely by geographic location or disability without actuarial basis
Florida: no discrimination in auto insurance for handicap; health insurers can’t refuse for mental/physical handicap

Errors & Omissions

E&O insurance protects agents from negligence lawsuits
Covers honest mistakes causing financial damage; does NOT cover regulatory violations

Rebating

Prohibited unless: rebate follows filed schedule, available to same actuarial class uniformly, displayed in office, insurer permits it

Sharing commission

Allowed only between licensed agents in same line, or with customer representative (Florida)

Twisting

Misrepresentation to induce policy lapse/surrender/exchange
Requires knowing, misleading, or fraudulent comparisons (Florida)

Unfair marketing practices

OIR sets standards for full/fair disclosure, policy standardization
Advertising cannot falsely imply government/organization endorsement or misstate claims timing

Gramm-Leach Bliley Act (GLBA)

Repealed Glass-Steagall; allows merger of banks, investment firms, insurers
Establishes regulatory framework across financial industries

McCarran-Ferguson Act

1945 law: insurance regulated at state level
Grants limited antitrust exemption (excludes health insurance since 2021)

National Association of Insurance Commissioners (NAIC)

Standard-setting body governed by state insurance commissioners
Establishes standards, conducts peer review, coordinates oversight

Fair Credit Reporting Act

Governs consumer reports (credit, MIB, investigative) used in underwriting
Investigative report requests: disclose within 3 days
Adverse action: consumer has 60 days to request free report/dispute

Privacy Act of 1974

Governs federal agencies only, not private insurers
Insurer privacy governed by FCRA, GLBA, state law
Florida: health info authorization valid max 24 months

Telemarketing

National Do Not Call Registry protects consumers
Federal: calls allowed 8am-9pm local time
Florida: stricter, 8am-8pm, max 3 calls/24hrs same subject
Must disclose caller identity, company, sales purpose

CAN-SPAM

Commercial emails must: identify as ad, accurate headers/subject, valid postal address, opt-out honored within 10 business days

Insurance guaranty association

Pays claims when member insurer becomes insolvent
Florida: covers claims up to $300,000, homeowners get additional $200,000 for structure/contents

Auto insurance state minimum

Split limit format: bodily injury/person, bodily injury/accident, property damage/accident
Florida: $10,000 PIP + $5,000 death benefits, $10,000 property damage liability

Florida State Regulations & NAIC Insurance Law

Licensing

To apply for a Florida resident producer’s license, you must:

Be at least 18 years old.
Be a Florida resident before you submit your application.

Pre-licensing course and exam

The passing score on every Florida insurance licensing examination is 70% (Pearson VUE, Florida Insurance Candidate Handbook).

Fingerprints/background check

Controlled business

Non-resident license

Is currently licensed as a resident, and in good standing, in the home state
Has applied (the home-state application or the Uniform Application) and paid the fees
Lives in a home state that grants nonresident licenses to residents of this state on the same basis (reciprocity)

Temporary license

Most states allow the insurance regulator to issue a temporary license, without an examination, when one is needed to keep an insurance business serviced. Typical cases are:

The surviving spouse or personal representative of a producer who dies or becomes disabled, to allow time to sell the business or train new people
A member or employee of a business entity producer, on the death or disability of its designated producer
The designee of a producer entering active military service

The regulator may limit what a temporary licensee may do and may require a licensed sponsor who takes responsibility for the temporary licensee’s acts.

Military service

Renewal and reinstatement

In Florida, what is renewed on a schedule is an agent’s appointment by an insurer, and a licensed agent must also complete continuing education (Fla. Stat. §§ 626.381, 626.2815).

The appointing insurer renews the agent’s appointment in the agent’s birth month and every 24 months after that (Fla. Stat. § 626.381(1)).

Continuing education

Every state, including Florida, requires licensed producers to complete continuing education (CE).

In Florida:

Every 2 years, a licensee must complete a 4-hour update course specific to the license held, plus 20 hours of elective continuing education (16 hours for one licensed 6 or more years) (Fla. Stat. § 626.2815).

Notice of change of name or address

Company regulations

An insurance company must be authorized by the Office of Insurance Regulation to conduct business in Florida.

Capital and surplus requirement

A company authorized to conduct insurance business in Florida must meet minimum corporate standards.

The certificate of authority allows the insurer to conduct business in Florida only if it maintains the minimum capital or permanent surplus required. In Florida, the Office of Insurance Regulation must suspend or revoke the certificate of authority of an insurer it finds no longer meets the requirements for the authority originally granted, or in unsound financial condition (Fla. Stat. § 624.418(1)).

Duties of the Commissioner of Insurance Regulation

The Florida Commissioner of Insurance Regulation is a state executive position in Florida state government.

The Commissioner heads the Florida Office of Insurance Regulation, which regulates the state’s insurance providers.
Agents are licensed and disciplined by a separate agency, the Department of Financial Services, headed by the elected Chief Financial Officer (Fla. Stat. § 20.121).
The Commissioner is appointed by the Florida Financial Services Commission, an independent panel composed of the governor, attorney general, and several other state executive officers.
There are no term limits associated with the office.

The Commissioner establishes and enforces regulations in the Florida insurance market in a manner that protects consumers and encourages economic development.

Those duties include:

Investigate all claims and complaints of legal violations relating to insurance. In Florida, investigations of agents belong to the Department of Financial Services (Fla. Stat. § 624.317(1)).
If the Commissioner finds that laws have been violated, the findings and supporting documents may be referred for criminal prosecution.
Monitor transactions of all companies including domestic, foreign, and alien insurance companies.
The Office of Insurance Regulation must examine a high-risk insurer at least once every 3 years, and an average- or low-risk insurer at least once every 5 years (Fla. Stat. § 624.316(2)(a)).
Audit the books and records of any resident producer as frequently as necessary. In Florida, the Department of Financial Services investigates agents’ accounts and records (Fla. Stat. § 624.317(1)).
Collect all fees associated with producers and insurers. In Florida, the Department of Financial Services, the Financial Services Commission or the Office collects each fee, as appropriate to the service (Fla. Stat. § 624.501).
Determine and administer fines for insurers’ violations; fines on agents are imposed by the Department of Financial Services (Fla. Stat. § 626.681(1)).
Issue reports on the suspension and revocation of insurers’ certificates of authority; agents’ licenses are suspended and revoked by the Department of Financial Services (Fla. Stat. § 626.611).
Approve documentation used by insurance companies such as forms and rates.

Sidenote

Know this...

Suspend, revoke or non-renew

The Department of Financial Services has the authority to suspend, revoke, or refuse to renew an agent’s license for:

Providing false information on the application for an insurance license.
Omitting any relevant information on an application that would have disqualified the individual from being eligible to receive a license.
Being found guilty of a violation or the noncompliance of insurance regulations and laws…
Committing fraud while attempting to obtain an insurance license.
Misappropriating, converting or unlawfully withholding money belonging to insurers, insureds, beneficiaries or others that was received in the course of business (Fla. Stat. § 626.611(1)(j)).
Providing false information in reference to the terms and conditions of an insurance contract.
Having been found guilty of, or having pleaded guilty or no contest to, any felony, any crime punishable by imprisonment of 1 year or more, or a misdemeanor directly related to the financial services business, whether or not a judgment of conviction was entered (Fla. Stat. § 626.611(1)(n)).
Having admitted or been found to have committed any insurance unfair trade practice or fraud.
Having engaged in activities of a fraudulent nature which allowed the person to involve themselves in dishonest, coercive, untrustworthy, and financially irresponsible practices.
Having had a prior insurance license revoked or suspended in a state other than Florida.
Using another person’s identity and forging their name on an insurance application.
Being found guilty of using unethical practices or cheating on an examination for an insurance license.

Cease and desist

A cease and desist order does not, by itself, suspend or revoke the producer’s registration.
It does require the producer to stop or limit the activity addressed in the order.

Hearing and penalties

Unfair claims settlement practices

The intentional obstruction and delay of claims payment or the delay of a claims investigation is a violation of regulation.
Neglecting to provide a prompt response and written explanation of insurance policy terms, conditions, and laws related to the contract are examples of unfair claims settlement practices.
Failure to provide claims without launching a thorough investigation is a violation of regulation.
Making settlement claims based on information contained on an application that has been altered without the insured’s consent is a violation of regulation.
Denying a claim without conducting a thorough investigation.
Attempting to settle a claim for less than fair market value.

Policy forms

Insurers file their policy forms with the Commissioner.

If a policy provision conflicts with Florida law, the policy is read as amended to conform to the law.

Record maintenance

Fraudulent producer representation

This includes any public communication, such as:

Advertisements
Letterheads
Circulars
Business cards
Other methods of representation

Misrepresentation

Misrepresentation involving the creation or distribution of policies, quotes, and illustrations designed to provide inaccurate information about the terms and conditions of a policy is prohibited.
Providing inaccurate or incomplete information or comparisons regarding the benefits of a policy is an example of misrepresentation.
Providing inaccurate or incomplete information for the purpose of inducing, or tending to induce, the lapse, exchange, conversion, forfeiture, or surrender of a policy is a violation as well (twisting).

In Florida, each of these misrepresentation rules reaches only a person who acts knowingly (Fla. Stat. § 626.9541(1)(a)).

False advertising

Defamation

Boycott, coercion and intimidation

False financial statements

Illegal inducements

Unfair discrimination

Unfair discrimination is treating people or risks that present the same hazard differently. The NAIC’s model act, on which state unfair trade practices laws are based, prohibits:

Unfair discrimination between individuals of the same class and equal expectation of life in life insurance and annuity rates, dividends, benefits or terms
Unfair discrimination between individuals of the same class and essentially the same hazard in health insurance premiums, benefits or terms
Refusing, limiting or canceling coverage because of a person’s sex, marital status, race, religion or national origin
In property and casualty insurance, refusing or limiting coverage solely because of a risk’s geographic location, unless sound underwriting and actuarial principles justify it, or solely because the applicant or insured is physically or mentally impaired

Errors & Omissions

Errors & Omissions (E&O) insurance is a type of professional liability insurance that protects insurance agents if they are sued for negligent performance of their duties.

E&O covers honest mistakes that result in (financial) damage to customers or prospects.
E&O does not cover violations of insurance regulation.

Rebating

Sidenote

Know this...

To “solicit” or “negotiate” insurance implies that the person is licensed.

Sharing commission

The splitting or sharing of commissions with a licensed producer is allowed.

Both parties must be licensed in the line of business in which the proposed commission is to be split. Under the NAIC’s model act, a commission may also be paid to an insurance agency, or to a person who does not sell, solicit or negotiate insurance. Florida is narrower: an agent may share commissions only with other agents appointed and licensed to write the same kinds of insurance, or with a customer representative (Fla. Stat. § 626.753(1)(a)).

Twisting

Any written or oral statements used to induce the lapse, termination, exchange, or surrender of an insurance contract based on inaccurate information is prohibited.

Unfair marketing practices

The Office of Insurance Regulation is responsible for establishing minimum standards for the full and fair disclosure of policy content.

They also require:

Standardization of policy content
Simplification of the terms used to describe insurance coverage

Advertising may not involve the following:

Any statement or implication that policies are approved, or that the financial condition of a company is endorsed, by any government agency or by any independent group, individual, organization or society, unless that is the fact.
Any statements regarding advertising that are false or untrue in reference to the time frame in which claims are paid.

Gramm-Leach Bliley Act (GLBA)

This law repealed the Glass-Steagall Act of 1933, allowing consolidation of commercial banks, investment institutions, and insurance companies.

McCarran-Ferguson Act

Federal law signed in 1945 in which Congress declared that the insurance industry would be regulated at the state level.

Grants insurers a limited exemption from federal antitrust legislation. Since 2021 the exemption does not cover the business of health insurance, apart from narrow activities such as sharing historical loss data (15 U.S.C. § 1013©).

National Association of Insurance Commissioners (NAIC)

The U.S. standard-setting and regulatory support organization is created and governed by the chief insurance regulators from the 50 states, the District of Columbia, and five U.S. territories.

Through the NAIC, state insurance regulators:

Establish standards and best practices
Conduct peer review
Coordinate regulatory oversight

Fair Credit Reporting Act

When an insurer requests an investigative consumer report, it must disclose that to the consumer within 3 days of the request
When an insurer takes adverse action based on a consumer report, it must notify the consumer and identify the reporting agency. The consumer then has 60 days to request a free copy of the report and may dispute inaccurate information

Privacy Act of 1974

Telemarketing

May be made only between 8 a.m. and 9 p.m. in the recipient’s local time under federal rules; Florida’s own law is narrower, barring commercial telephone solicitation calls before 8 a.m. or after 8 p.m. in the called person’s time zone, and more than three calls in 24 hours on the same subject, and those limits apply to licensed insurance agents too (Fla. Stat. §§ 501.616(6), 501.604)
Must disclose the caller’s identity, the company the caller represents and that the purpose is a sale

CAN-SPAM

A commercial email must:

Be identified clearly as an advertisement
Carry accurate header information and a subject line that is not deceptive
Include the sender’s valid physical postal address
Offer a way to opt out, and the sender must honor an opt-out within 10 business days

Insurance guaranty association

Auto insurance state minimum

Licensing

Minimum age: 18, must be Florida resident before applying

Pre-licensing course and exam

General lines agent: 200 hours (3 ethics) within 4 years; personal lines: 60 hours
Military members/veterans/spouses exempt from coursework
Passing score: 70% on all exams

Fingerprints/background check

Fingerprints + fee required before license approval

Controlled business

Insurance on producer’s own/family/employer/controlled business interests
License may be refused/suspended/revoked if controlled business commissions exceed 50% of total in any 12-month period

Non-resident license

Florida waives exam for nonresidents with comparable license elsewhere
Requires: current resident license in good standing, application/fees paid, reciprocity
Address change: file within 30 days
Moving to new state: apply for resident license within 90 days, no repeat of prelicensing/exam

Temporary license

Issued without exam to keep business serviced (death, disability, military service of producer)
Regulator may limit scope, require licensed sponsor
Florida: nonrenewable, up to 6 months

Military service

Active duty licensees may request written waiver of CE requirements

Renewal and reinstatement

Agent appointment renewed in birth month, every 24 months
48 months without appointment in a class = must requalify as first-time applicant

Continuing education

Every 2 years: 4-hour update course + 20 hours electives (16 hours if licensed 6+ years)

Notice of change of name or address

Must notify DFS within 30 days of name/address/contact changes
Report administrative/criminal actions within 30 days of final disposition/pretrial hearing

Company regulations

Insurer must have certificate of authority from Office of Insurance Regulation
Requires charter, financial statements, capital/surplus proof, fees

Capital and surplus requirement

Certificate suspended/revoked if insurer fails to maintain minimum capital/surplus or is financially unsound

Duties of the Commissioner of Insurance Regulation

Heads Office of Insurance Regulation; appointed by Financial Services Commission; no term limits
DFS (Chief Financial Officer) handles agent licensing/discipline
Examine high-risk insurers every 3 years, average/low-risk every 5 years
Approves forms/rates, monitors insurers, refers violations for prosecution
Cannot arrest, issue injunctions, or sentence jail time (law enforcement/courts do)

Suspend, revoke or non-renew

Grounds: false application info, fraud, misappropriation of funds, felony/related misdemeanor conviction, unfair trade practices, prior license revocation elsewhere, exam cheating

Cease and desist

Issued for unfair/deceptive acts
Does not itself suspend/revoke license; requires stopping specific activity

Hearing and penalties

Entitled to notice/hearing before cease and desist (except emergency orders)
Fines: up to $500/violation, $3,500 for willful misconduct
Unfair trade practices: up to $12,500 ($100,000 if willful)

Unfair claims settlement practices

Violations include: delaying claims, failing to investigate, denying without investigation, settling based on altered application, misrepresenting policy terms

Policy forms

Filed with OIR 30 days before use; deemed approved if no action taken
Commercial P&C forms may file for information only with compliance certification

Record maintenance

Agents keep transaction records 5 years after policy expiration

Fraudulent producer representation

Cannot hold self out as licensed agent without license/appointment
Suspension of one license triggers suspension of all licenses/appointments

Misrepresentation

Prohibits inaccurate info on policies, comparisons, or inducing lapse/surrender (twisting)
Florida requires knowing conduct

False advertising

Untrue/deceptive/misleading statements about insurance business prohibited
Florida requires knowing misconduct (narrower than NAIC model)

Defamation

False/malicious statements about insurer’s financial condition, made to injure
Florida covers statements about any person, if knowingly made

Boycott, coercion and intimidation

Prohibits concerted acts restraining trade or creating monopoly in insurance business

False financial statements

Knowingly false statements on applications to obtain fee/commission/benefit prohibited

Illegal inducements

Cannot offer unlisted value as inducement to buy insurance
Florida allows gifts/charitable contributions up to $100 per person/year

Unfair discrimination

Prohibits differential treatment based on sex, marital status, race, religion, national origin
P&C: cannot discriminate solely by geographic location or disability without actuarial basis
Florida: no discrimination in auto insurance for handicap; health insurers can’t refuse for mental/physical handicap

Errors & Omissions

E&O insurance protects agents from negligence lawsuits
Covers honest mistakes causing financial damage; does NOT cover regulatory violations

Rebating

Prohibited unless: rebate follows filed schedule, available to same actuarial class uniformly, displayed in office, insurer permits it

Sharing commission

Allowed only between licensed agents in same line, or with customer representative (Florida)

Twisting

Misrepresentation to induce policy lapse/surrender/exchange
Requires knowing, misleading, or fraudulent comparisons (Florida)

Unfair marketing practices

OIR sets standards for full/fair disclosure, policy standardization
Advertising cannot falsely imply government/organization endorsement or misstate claims timing

Gramm-Leach Bliley Act (GLBA)

Repealed Glass-Steagall; allows merger of banks, investment firms, insurers
Establishes regulatory framework across financial industries

McCarran-Ferguson Act

1945 law: insurance regulated at state level
Grants limited antitrust exemption (excludes health insurance since 2021)

National Association of Insurance Commissioners (NAIC)

Standard-setting body governed by state insurance commissioners
Establishes standards, conducts peer review, coordinates oversight

Fair Credit Reporting Act

Governs consumer reports (credit, MIB, investigative) used in underwriting
Investigative report requests: disclose within 3 days
Adverse action: consumer has 60 days to request free report/dispute

Privacy Act of 1974

Governs federal agencies only, not private insurers
Insurer privacy governed by FCRA, GLBA, state law
Florida: health info authorization valid max 24 months

Telemarketing

National Do Not Call Registry protects consumers
Federal: calls allowed 8am-9pm local time
Florida: stricter, 8am-8pm, max 3 calls/24hrs same subject
Must disclose caller identity, company, sales purpose

CAN-SPAM

Commercial emails must: identify as ad, accurate headers/subject, valid postal address, opt-out honored within 10 business days

Insurance guaranty association

Pays claims when member insurer becomes insolvent
Florida: covers claims up to $300,000, homeowners get additional $200,000 for structure/contents

Auto insurance state minimum

Split limit format: bodily injury/person, bodily injury/accident, property damage/accident
Florida: $10,000 PIP + $5,000 death benefits, $10,000 property damage liability