DFS Urges Due Diligence When Retaining Licensees
The Florida Department of Financial Services recently published a reminder relating to potential dealings with agents and other licensees whose licenses have been suspended or revoked. DFS points to a provision of the Florida Insurance Code providing that it is unlawful for a former licensee, during his or her period of suspension or revocation of a license or appointment, to engage in or attempt or profess to engage in any transaction or business for which a license or appointment is required. This prohibition is in effect until such time as the license may be reinstated or reissued, if applicable. DFS points out that the former licensee or appointee may not directly or indirectly own, control, or be employed in any manner by an agent, agency, adjuster, or adjusting firm.
Any former licensee or appointee who violates this provision commits a felony of the third degree, subjecting himself or herself to further action by DFS up to and including criminal prosecution.
DFS urges all agencies, adjusting firms and others employing individuals needing licenses to check the licensing status of applicants before hiring them.