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Life-Health-Laws 9
Excess or rejected business, Insurance agency licensing

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Criminal Action *****

If an agent pleads guilty or nolo contendere ("no contest") to a felony or a crime punishable by imprisonment of 1 year or more, the agent must notify the Department in writing within 30 days of entering the plea. The issue here is the entering of the plea, and has no regard to whether a judgment of conviction has been entered by the court having jurisdiction of such cases. This little fact will be repeated three or four times in the following text.

Agents' additional appointments

At any time while an individual's insurance license is in force, an individual may apply to the Department for an additional appointment as a general lines agent, or life or health agent. Once the Department receives the appointment and the applicable fees, the Department may issue the additional appointment without any further investigation concerning the applicant.

There is an odd, outstanding circumstance where the agent may solicit (ask for/sell) appliations for policies on behalf of a company for which the agent is not appointed, and that is if the request for appointment is submitted simultaneously to the issuer of the application. Keep in mind, though, that no commissions may be paid to this person until the additional appointment has been received by the Department.

 

Check Mark

Insurance agency licensing *****

We said earlier in this chapter that agency locations have to each be licensed agency locations, however, this general rule of thumb has some exceptions and some specifics that are worth remembering.

If an agency is owned and operated by a single licensed agent who does business in her/his own name and that person does not employ other licensees, then that agency is not required to have an insurance agency license.

If an agency license is required for a location, that agency license will continue indefinitely until it is canceled, suspended, revoked, or otherwise terminated. If a branch place of business of a licensed insurance agency transacts business under the name and federal tax ID number of the licensed agency then it is not required to be licensed. Such a branch location must have designated with the department a licensed insurance agent in charge of the branch. (NOTE: Please pay close attention... This idea that the branch location must have an agent in charge of the branch will come up again in a moment.)

*Previously there were also agency "registrations", but effective October 15, 2015, all registered insurance agency "registrations" will be converted to agency licenses.

Now, sometimes it's easier to let someone else fill out the paperwork and you just have to sign it, right? In those cases, I'm sure you would agree that if your signature is on the paperwork then you are responsible for the information within the paperwork, even if you were not the one who filled it out.

This is also the case with getting agency locations approved...

Insurance agencies may have a third party to complete, submit and sign the licensing application on the insurance agency's behalf. This is allowed under Florida law. However, the agency is still responsible for making sure that the information provided in the application is true and correct, and the agency will be held accountable for any misstatements or misrepresentations.

Insurance agency applications must include:

With regard to the agent in full-time charge of the agency location, the same agent is allowed to be the agent in charge of several locations of the agency as long as insurance activities that require a licensed insurance agent do not occur at any location when an agent is not physically present. In other words, if there is to be insurance business conducted at that location, there needs to be a licensed agent physically present at the location at the time the insurance business is conducted. This is just another way of saying that the only person who can do insurance business in the state is a licensed and appointed agent.

An insurance agency and each branch place of business must file the name and license number of the agent in charge and the physical address of the insurance agency location with the department at the department's designated website. The agent in charge may be changed by the agency. A change of the designated agent in charge needs to be provided within 30 days after such change and will be approved by the Department.

 

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