DFS Cautions Against Use of Unlicensed Personnel
The Florida Department of Financial Services points out that unlicensed personnel have limited discretion as to how they can support the operations of an insurance agency. The scope of these activities are further described in Rule Chapter 69B-222, Florida Administrative Code. Incidental activities and compensation are two of the most important points to remember when employing unlicensed personnel. Incidental activities as described in the rules cannot exceed 10% of an employee’s overall activities and compensation cannot be made based on the individual production of the unlicensed person. The following actions are never allowable by unlicensed personnel:
- Comparing insurance products; advising as to insurance needs or insurance matters; or interpreting policies or coverage.
- Binding new, additional or replacement coverage for new or existing customers; or binding coverage on or recording additional property under existing policies.
- Soliciting the sale of insurance by telephone, in person, or by other communication. However, the unlicensed person may telephone persons to set appointments for licensed and appointed agents, customer representatives, or to obtain basic policy information as to existing insurance coverage. The unlicensed person may not engage in a substantive discussion of insurance products.
Transacting insurance without the appropriate license and appointment, regardless of the line of business, is a third-degree felony.