5.5.1 Proper Solicitation
Agents are responsible for soliciting the type of business that falls within the guidelines established by the insurer whom they represent. The insurer relies upon the agent to solicit business that will be profitable. All insurance solicitations should be completed in the appropriate manner, keeping in mind that the agent's responsibility does not end with the insurer, but must pertain to their client and to the public's general welfare.
The solicitation of insurance is the attempt to persuade any person to purchase an insurance product by:
- describing the benefits or terms of insurance coverage, including premiums or rates of return;
- distributing an invitation to contract to prospective purchasers;
- making general or specific recommendations as to insurance products;
- completing orders or applications for insurance products;
- comparing insurance products, advising as to insurance matters, or interpreting policies or coverages; and/or
- offering or attempting to negotiate on behalf of another person a viatical.
Insurance Code provisions define the term transacting insurance as:
- solicitation or inducement to purchase insurance;
- preliminary negotiations toward the sale of insurance;
- effectuation of a contract of insurance; and
- transaction of matters subsequent to effectuation of a contract of insurance and arising out of it.
Please read "What are the general rules relating to solicitation?" (page 422 of the Florida study manual).
