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The Florida Senate

2000 Florida Statutes

SECTION 112
License and appointment required; agents, customer representatives, solicitors, adjusters, insurance agencies, service representatives, managing general agents.
Section 626.112, Florida Statutes 2000

626.112  License and appointment required; agents, customer representatives, solicitors, adjusters, insurance agencies, service representatives, managing general agents.--

(1)  No person shall be, act as, or advertise or hold himself or herself out to be an insurance agent, customer representative, solicitor, or adjuster unless he or she is currently licensed and appointed.

(2)  No agent, customer representative, or solicitor shall solicit or otherwise transact as agent, customer representative, or solicitor, or represent or hold himself or herself out to be an agent, customer representative, or solicitor as to, any kind or kinds of insurance as to which he or she is not then licensed and appointed.

(3)  No person shall act as an adjuster as to any class of business for which he or she is not then licensed and appointed.

(4)  No person shall be, act as, or represent or hold himself or herself out to be a service representative unless he or she then holds a currently effective service representative license and appointment. This subsection does not apply as to similar representatives or employees of casualty insurers whose duties are restricted to health insurance.

(5)  No person shall be, act as, or represent or hold himself or herself out to be a managing general agent unless he or she then holds a currently effective managing general agent license and appointment.

(6)  An individual employed by a life or health insurer as an officer or other salaried representative may solicit and effect contracts of life insurance or annuities or of health insurance, without being licensed as an agent, when and only when he or she is accompanied by and solicits for and on the behalf of a licensed and appointed agent.

(7)(a)  No individual, firm, partnership, corporation, association, or any other entity shall act in its own name or under a trade name, directly or indirectly, as an insurance agency, when required to be licensed by this subsection, unless it complies with s. 626.172 with respect to possessing an insurance agency license for each place of business at which it engages in any activity which may be performed only by a licensed insurance agent or solicitor.

(b)  An insurance agency shall, as a condition precedent to continuing business, obtain an insurance agency license if the department finds that, with respect to any majority owner, partner, manager, director, officer, or other person who manages or controls the agency, any person has, subsequent to the effective date of this act:

1.  Been found guilty of, or has pleaded guilty or nolo contendere to, a felony in this state or any other state relating to the business of insurance or to an insurance agency, without regard to whether a judgment of conviction has been entered by the court having jurisdiction of the cases.

2.  Employed any individual in a managerial capacity or in a capacity dealing with the public who is under an order of revocation or suspension issued by the department. An insurance agency may request, on forms prescribed by the department, verification of any person's license status. If a request is mailed within 5 working days after an employee is hired, and the employee's license is currently suspended or revoked, the agency shall not be required to obtain a license, if the unlicensed person's employment is immediately terminated.

3.  Operated the agency or permitted the agency to be operated in violation of s. 626.747.

4.  With such frequency as to have made the operation of the agency hazardous to the insurance-buying public or other persons:

a.  Solicited or handled controlled business. This subparagraph shall not prohibit the licensing of any lending or financing institution or creditor, with respect to insurance only, under credit life or disability insurance policies of borrowers from the institutions, which policies are subject to part IX of chapter 627.

b.  Misappropriated, converted, or unlawfully withheld moneys belonging to insurers, insureds, beneficiaries, or others and received in the conduct of business under the license.

c.  Unlawfully rebated, attempted to unlawfully rebate, or unlawfully divided or offered to divide commissions with another.

d.  Misrepresented any insurance policy or annuity contract, or used deception with regard to any policy or contract, done either in person or by any form of dissemination of information or advertising.

e.  Violated any provision of this code or any other law applicable to the business of insurance in the course of dealing under the license.

f.  Violated any lawful order or rule of the department.

g.  Failed or refused, upon demand, to pay over to any insurer he or she represents or has represented any money coming into his or her hands belonging to the insurer.

h.  Violated the provision against twisting as defined in s. 626.9541(1)(l).

i.  In the conduct of business, engaged in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under 1part X of this chapter.

j.  Willfully overinsured any property insurance risk.

k.  Engaged in fraudulent or dishonest practices in the conduct of business arising out of activities related to insurance or the insurance agency.

l.  Demonstrated lack of fitness or trustworthiness to engage in the business of insurance arising out of activities related to insurance or the insurance agency.

m.  Authorized or knowingly allowed individuals to transact insurance who were not then licensed as required by this code.

5.  Knowingly employed any person who within the preceding 3 years has had his or her relationship with an agency terminated in accordance with paragraph (d).

6.  Willfully circumvented the requirements or prohibitions of this code.

(c)  An agency required to be licensed in accordance with paragraph (b) shall remain so licensed for a period of 3 years from the date of licensure unless the license is suspended or revoked in accordance with law. The department may revoke or suspend the agency authority to do business for activities occurring during the time the agency is licensed, regardless of whether the licensing period has terminated.

(d)  Notwithstanding the provisions of this subsection, no insurance agency shall be required to apply for an agency license if such agency can prove to the department that:

1.  The agency is severing its relationship with each majority owner, partner, manager, director, officer, or other person who managed or controlled such agency and who violated any of the provisions of paragraph (b).

2.  No such majority owner, partner, manager, director, officer, or other person who managed such agency is to be affiliated with such agency in any capacity for a period of 3 years from the date of such severance.

History.--s. 190, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 3, ch. 81-282; ss. 2, 3, ch. 81-318; ss. 154, 217, 807, 810, ch. 82-243; s. 16, ch. 87-226; s. 56, ch. 89-360; ss. 13, 206, 207, ch. 90-363; s. 4, ch. 91-429; s. 211, ch. 97-102; s. 8, ch. 98-199.

1Note.--Redesignated as part IX of ch. 626 to conform to the transfer of ss. 626.941-626.945, comprising former part IX, by ch. 98-89.