DFS Cautions Against Aiding and Abetting Unlicensed Persons
The Florida Department of Financial Services cautions licensees against assisting companies and individuals in the unauthorized transaction of insurance. DFS reminds agents that the insurance code prohibits representing or aiding any insurer not authorized to transact insurance in this state. As an example, DFS points to an agent’s representing an unauthorized company that offers health insurance coverage to residents of Florida and claims to have exemption from state regulation under the Federal ERISA ACT of 1974. DFS points licensees to section 626.901(1)(a)-(h) for further discussion of the statutory prohibition. DFS also acknowledges that transacting surplus lines insurance in accordance with the Surplus Lines Law is an exception to the prohibition against representing unauthorized insurers.
Although the prohibition against assisting unauthorized insurers is well understood, DFS also reminds agents and others that it is unlawful under the insurance code to knowingly authorize, assist or allow an unlicensed person to transact insurance. Doing so is considered aiding and abetting that unlicensed individual to violate the insurance code pursuant to section 626.621(12), Florida Statutes.