19.1 Florida Insurance Regulation
Governmental supervision is necessary to protect public interest and trust. The technical character of the insurance contract requires expert control and the operations of insurance companies directly affect the state and national economy. There are four entities that exercise regulatory authority over the insurance industry in Florida.
- The State Legislature
- The Department of Financial Services
- The Office of Insurance Regulation
- The State Court System
The Florida Insurance Code gives the Chief Financial Officer power to regulate financial planners through the General Rules Relating to Solicitation:
Terms such as financial planner, investment adviser, financial consultant, or financial counseling shall not be used in such a way as to imply that the insurance agent is generally engaged in an advisory business in which compensation is unrelated to sales unless such is actually the case.
Financial planners, consultants, and counselors are paid for providing advice, not selling a specific product. An insurance agent is selling a product. The rule protects the consumer from being duped into paying double for the same service.
It is unlawful for agents to share commissions with anyone other than with agents who are also duly licensed in the same line.
