19.3 Marketing Practices
Every marketing communication that is intended to be used in the marketing of an insurance plan must be submitted for review by the office prior to use and must contain certain disclosures.
Entities marketing insurance within Florida must have established marketing procedures to assure that any comparison of policies by its agents or other producers will be fair and accurate. Marketing procedures must assert that excessive insurance is not sold or issued.
Making use directly or indirectly of any method of marketing which fails to disclose in a conspicuous manner that a purpose of the method of marketing is solicitation of insurance and that contact will be made by an insurance agent or insurance company is prohibited.
Each insurance agency is required to have an "Agent in Charge." Although the agent does not have any specific statutory duties or responsibilities, a licensed agent must be designated to be "in full-time charge" of each licensed agency location. A licensed agent may be the agent in charge of additional branch office locations of the agency as long as insurance activities requiring licensure as an insurance agent do not occur at any location when the agent is not physically present.
If a life or health insurance agent works out of his/her home, is the agent's home an insurance agency that must be licensed if the agent does not hold the home out as being a business location at which consumers can purchase or inquire about insurance products?
No. The home would not have to be licensed as an insurance agency. However, this does not apply to Florida resident property and casualty agents since they are by law required to maintain an office that is accessible to the public.
Florida requires that each agency must have a licensed and appointed agent in full time charge of each location (agent in charge). In 2006, a new rule went into effect requiring agencies to identify an agent in charge of each agency and to complete an application for agency registration or licensure. It is no longer required for the agency to file the primary agent form with the Department. Registration is offered to agencies that were in business prior to January 1, 2003, and which qualify as one of the following:
- An agency wholly owned by licensed and appointed Florida insurance agents;
- an incorporated agency whose voting shares are traded on a securities exchange;
- an agency whose primary function is offering insurance as a service or member benefit to members of a nonprofit organization;
- or an agency subject to supervision and inspection as a branch office under the rules of FINRA.
A registered agency is not subject to compulsory or discretionary refusal, suspension, or revocation. However, if any of the principals of the registered agency are found to have violated any part of the insurance code, the agency must obtain an agency license.
Licensure is required for agencies that were in business on or after January 1, 2003, or the agencies that were in business prior to that date and do not meet the criteria listed above for registration. An agency license must be renewed three years from the original issue date.
If an agency qualifies for registration and fails to file an application, the Department may impose an administrative penalty on the agency in an amount up to $5,000. If an agency does not qualify for registration and fails to file an application for licensure, the Department may impose an administrative penalty on the agency in an amount up to $10,000.
