Changes in Florida’s legislation during the spring session and new administrative changes requiring agency licensure or registration were detailed by Hazel Muhammad, bureau chief of Agent and Agency Licensing with Florida’s Department of Financial Services, Division of Insurance Agents and Agency; and Ron Villella, a private lobbyist with Smith, Bryan and Myers; during a “Legislative Update” sponsored by the Professional Insurance Agents Association of Florida in St. Petersburg.
According to Muhammad, more changes related to insurance agencies have occurred in this year’s Florida Legislature than any other year. Muhammad was chosen to head the agency licensing effort due to her experience with Bureau of Financial Services Fraud Unit for due to her many years of experience with the department.
“Florida was one of the last states to approve legislation implementing licensure of insurance agencies,” Muhammad explained.
Muhammad and PIA of Florida distributed information including 24-pages of information about SB 1912 detailing the specifications of agency licensing and registration. Included in the information was a description of the actual legislative changes, definitions, license and appointment details and implementation.
According to the information, every insurance agency in Florida has until Oct. 1, 2006 to apply for either registration of licensure.
Muhammad said registration applies to agencies which have been in business prior to Jan. 1, 2003, and which are: wholly owned by insurance agents currently licensed and appointed under Chapter 626; an incorporated agency whose voting shares are traded on a securities exchange; or an agency whose primary function is offering insurance as a service or member benefit to members of a nonprofit organization.
Muhammad explained that licensure applies to agencies that were in business on or after Jan. 1, 2003, or the agencies that do not meet the criteria for registration. She said an agency that qualifies for registration may prefer to obtain a license instead of a registration. She said that if an agency is seeking to be licensed in a state other than Florida, the Florida license will not likely be recognized through reciprocity; however, the registration may not be honored for agency licensing in another state.
She said Oct. 1, 2006, is the deadline for an agency to apply for registration or licensure. Failure of an agency to submit an application that qualifies for registration by that date can result in a penalty of a fine up to $5,000. An agency that requires licensure must submit an application by Oct. 1, 2006, or be subject to a fine of up to $10,000.
The department’s website at www.fldfs.com will accept applications and information will be provided when the system is designed for these applications.
Muhammad described the literature provided by the department as “the uniform process for implementing the new licensing requirements for insurance agencies.” She said that, based on feedback she obtains during educational sessions, the questions and answers will be updated to include new information.
She said this legislation was implemented primarily to increase consumer protection and help the Department of Financial Services better track unlicensed owners, officers and directors.
Muhammad concluded her presentation by saying agencies must notify Tallahassee if there is any change in their corporate structure or ownership.
Topics Florida Legislation Agencies
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