IMPORTANT INFORMATION
REGARDING THE INSURANCE
AGENCY LICENSING LAW
IN FLORIDA
A law was passed in 2005 that requires all
insurance agencies to apply for licensure or
registration by October 1, 2006. This document is
an overview of the major points of the law. To see a list of
Frequently Asked Questions go to
the Agency Licensing and
Registration FAQ page (linked here).
Licensure and
Registration
§
ALL INSURANCE AGENCIES CONDUCTING BUSINESS IN
FLORIDA MUST APPLY FOR LICENSURE OR REGISTRATION
PRIOR TO OCTOBER 1, 2006.
§
There is no fee for Licensure or Registration.
§
Any location that an individual uses to perform
a function that requires an agent license must
be licensed or registered as an insurance
agency. This means that an agent that is based
in his/her home must obtain an agency license
for that location.
§
Failure to apply for Licensure or Registration
before the October 1, 2006 deadline may result
in a fine of up to $10,000.
§
Agencies are eligible for Registration if they
were in business prior to January 1, 2003 AND
are one of the following:
·
Entirely owned by licensed and appointed
insurance agents
·
Publicly traded on a stock exchange
·
An agency whose primary function is offering insurance as a
service or benefit to members of a
nonprofit organization
§
All other agencies MUST apply for Licensure.
§
Every agency
location
must be licensed or registered with the
department. You may not obtain one license in
order to cover multiple agency locations.
§
EVERY LOCATION MUST HAVE A LICENSED AND
APPOINTED AGENT IN FULL-TIME CHARGE OF THAT
AGENCY. The
application will require you to identify the
Agent In Charge of each location.
§
Registrations MAY NOT be recognized by other
states for reciprocity. Licenses will be
recognized by other states for reciprocity.
§
Agency licenses must be renewed every 3 years.
There is no charge for renewals. Registrations
do not have to be renewed.
§
Agencies will apply for Licensure or
Registration online at
https://aalf.fldfs.com.
Renewals, Agent In Charge changes, address
updates, requests for Letters of Certification,
and other functions will also be performed at
the same site.
Click here
for a PowerPoint presentation on how to apply
for agency licensure or registration.
§
Agencies will NOT be appointed by insurance
companies, and will NOT appoint the agents that
operate within those agencies. Agencies are
only authorized to appoint Customer Service
Representatives (who may also be appointed
directly by General Lines Agents).
Fingerprint Requirements
§
Officers, owners and directors of insurance
agencies are required to be fingerprinted unless
they meet one of the following exemptions:
·
The agency qualifies for Registration
·
The individual is a licensed
and appointed
insurance agent
·
The agency is publicly traded on a stock
exchange
§
Any owner, officer or director on an insurance
agency that does not meet one of these
exemptions must be fingerprinted, even if he or
she is added to the agency after licensure is
obtained.
§
Directions for fingerprinting are available
here at the Electronic Fingerprinting Page link.
§
Failure to comply with the fingerprinting
requirement will prevent the agency from
obtaining a license. If the agency is already
licensed and adds a new owner that fails to meet
the requirement, then the agency will be
referred to the Bureau of Investigation for
disciplinary action.
Tracking/Enforcement
§
There are several instances that require an
individual to be licensed and appointed. Agents
In Charge must be licensed and appointed. An
agency that qualifies for Registration by being
entirely owned by insurance agents must have
owners that are all licensed and appointed. The
department IS TRACKING the license and
appointment status of each individual associated
with the agency.
§
If an Agent In Charge loses his/her license or
all appointments, that agency must either
correct his/her license status OR identify a new
Agent In Charge within 30 days.
§
An agency that qualifies for Registration by
being owned entirely by insurance agents must
ensure that those owners maintain a license and
at least one appointment at all times. If an
owner loses all licenses or appointments, then
that agency will lose its qualification for
Registration and will have to apply for a
License.
§
Agents that are associated with an agency MUST
complete their Continuing Education
requirements. Failing to timely complete C. E.
will cause an agent to lose all of his/her
appointments, which may have an impact on the
compliance of the agency.
For a more comprehensive analysis see the document
titled "Legislative Information Pertaining to
CS to CS to SB 1912 (click here for the PDF document)."
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