Title Agencies: Update Your Info for the 2021
Subsection 624.501(27)(e)2, F.S., requires any title insurance agency licensed in Florida on January 1 of each year to remit an administrative surcharge of $200 to the Florida Department of Financial Services.
Title insurance agencies licensed in Florida were emailed a reminder this month to the agency's email address on file with the Department. All title insurance agencies licensed in Florida on or around January 1 will be sent a courtesy email reminder in early January. To ensure you receive follow-up emails, please log in to the Mi Perfil account for your title agency and make sure the correct email address is on file. We also recommend you do the same for your individual Mi Perfil account. Demographic changes made to an agency's profile do not populate the profiles of licensees associated with the agency.
Please verify/update your information to ensure you receive all correspondence from the Department. Failure to open the email sent by the Department containing the administrative surcharge reminder does not release an agency from the January 30 deadline. If you need assistance updating your information, please contact us at AgentLicensing@MyFloridaCFO.com.
Be proactive; do not procrastinate. Failure to pay the surcharge on or before January 30, 2021 may result in administrative action which could include a fine in addition to the original surcharge and/or suspension or revocation of the agency's license. Payment of the surcharge must be made securely online via the title agency's Mi Perfil account. Paper checks are not accepted.
More info can be found at: www.myfloridacfo.com/Division/Agents/Industry/Laws-Rules/TitleSurcharge.htm
Unlicensed Agency Personnel
Unlicensed personnel have limited discretion as to how they can support the operations of an insurance agency. Permitted and prohibited activities are described in Rule Chapter 69B-222, F.A.C. Incidental activities and compensation are two of the most important points to remember when employing unlicensed personnel. Incidental activities as described in the rules cannot exceed 10% of an employee's overall activities and compensation cannot be made based on the individual production of the unlicensed person. The following actions are never allowable by unlicensed personnel:
- Comparing insurance products; advising as to insurance needs or insurance matters; or interpreting policies or coverage.
- Binding new, additional or replacement coverage for new or existing customers; or binding coverage on or recording additional property under existing policies.
- Soliciting the sale of insurance by telephone, in person, or by other communication. However, the unlicensed person may telephone persons to set appointments for licensed and appointed agents, customer representatives, or to obtain basic policy information as to existing insurance coverage. The unlicensed person may not engage in a substantive discussion of insurance products.
Transacting insurance without the appropriate license and appointment, regardless of the line of business, is a third-degree felony, punishable as provided in la Sección 775.082, la Sección 775.083, o la Sección 775.084, Estatutos de la Florida
Customer Representatives and the Supervising
Agent - Reminder
The supervising agent must complete the "Designation of Supervising Agent for Customer Representatives or Limited Customer Representatives" form DFS-H2-1124 on behalf of the 4-40 licensee, and submit it to the Bureau of Licensing. A copy of the completed current form must also be maintained at the agency. If you have not submitted a current copy of this form to the Department for your customer representative(s), then it is highly recommended you come into compliance immediately.
Catching Bad Actors Committing Application Fraud
When submitting an application for insurance coverage, the applicant and the agent are both attesting the information supplied on the application is accurate, true, and correct. This includes the information about the policyholder, their contact information, the risk to be covered and the banking information from which premium will be drawn. An agent who intentionally falsifies or misrepresents any information on an application violates s. 626.9541(1)(k), F.S. This can take the form of submitting an application without the knowledge or consent of the proposed insured, impersonating the proposed insured in phone interviews with the carrier, and often includes providing a bank account that is not in the control of the proposed insured. Any of these acts can result in administrative action up to and including suspension or revocation of an insurance license pursuant to s. 626.611(1), F.S. The agent may also incur criminal charges.
As an agent, it is equally important that you protect your credentials from being used for these purposes by someone else. You should check your license status and appointments regularly to ensure all licenses and appointments on record were applied for by you or someone authorized by you to do so. It is also recommended that you change your Mi Perfil password occasionally, especially when changing employers. If you find appointments or licenses for which you have not applied, you should contact the Oficina de Licencias and the carrier in question immediately. Doing so will not only help prevent someone from using your credentials for these purposes but will also allow you to find and resolve any issues before they become a problem for you, such as receiving a 1099 tax form for earnings you didn’t actually receive.
Life and Health Advertising
Life and health advertising must have prior approval from the benefiting insurance company before being disseminated. Any advertisements approved by the insurer should be used exactly as approved. See Rule 69B-150.013(10), F.A.C.
When advertising for life, health or annuity products, if there is a reference in the advertisement to a specific policy feature, interest or bonus rate, premium amount, etc., the name of the insurer issuing the policy needs to be disclosed in the advertisement. Furthermore, the insurer needs to approve the advertisement prior to dissemination. Making any alterations to an advertisement that has been approved by the insurer could cause it to no longer be compliant. See 69B-150.013(10) y 69B-150.114, F.A.C.
Información sobre Cumplimiento
Department licensees and consumers can access compliance information at the Division of Insurance Agent and Agency Services' web page under Información sobre Cumplimiento. Additional information is available by license type on our Preguntas Frecuentes web page.
Note: Some information in archived articles may now be out of date or superseded by changes in Florida law. Please be sure you refer to the most current law.
Make Sure You Don't Miss Important Information From Us
We highly recommend licensees routinely check their Mi Perfil accounts for messages from the Department. We send licensees important emails to keep you informed on issues regarding application, license, continuing education, or when appointment(s) occur. We suggest adding our domains dfs.state.fl.us and MyFloridaCFO.com to your email software's Trusted or Safe Senders List to ensure you receive email notifications from us.
Update your contact information TODAY through your Mi Perfil account to ensure you remain informed. You are required to abide by the Florida Insurance Code regardless of whether you read the information we provide.