19.3.3 Agents' Responsibilities to Policyowners
The agent's responsibility is to handle the principal's needs in a proficient and scrupulous manner, thus enabling the principal to reach its goals. In order to accomplish this, he must represent the principal to the insured in a skilled and confident manner. Should a subject arise in which the agent is unskilled, he must refer the client to another source. In this way, the agent demonstrates that he cares about the client's needs and that servicing the client's needs above his own is paramount and, at the same time, insuring the best representation of the principal.
The insurance agent has a responsibility to the public of providing clients and prospective clients the best policies that fit the individual's needs and that the prospect or client can afford. The producer must analyze the client's needs (problem analysis), devise a plan (action planning), recommend the product that is best suited (product recommendation) and put the plan to work (plan implementation). Toward that end, the producer has two important commitments to policyowners:
- A commitment to obtain and maintain the knowledge and skills necessary to carry out those tasks; and
- A commitment to educate prospects and clients about the products and plans the producer recommends.
Florida law was amended in 2004 to permit a licensed health agent to be compensated at rates other than that which an insurer files with the Office of Insurance Regulation. This alternative form of compensation is limited to providing advice, counsel or recommendations regarding any group health insurance or group health benefit plans. Such compensation must be based upon a written contract between the agent and the party being charged the separately negotiated fee. Such written contract must clearly define the amount of compensation to be paid to the agent and must inform the person being charged that any commission received by the agent from the insurer will be rebated to that party within 30 days of receipt by the agent from the insurer. A copy of such contract must be retained by the licensed agent for three years after services have been fully performed. Any agent that is compensated in this fashion should be sure that fees or rates charged under such an arrangement are equitably applied to similarly situated persons.
