DFS Discusses Revisions to Agent Penalty Rules
The Florida Department of Services (DFS) conducted a workshop on Friday to receive comments to its proposed revisions to Rule Chapter 69B-231. These rules set forth penalty guidelines for various misconduct by agents, adjusters and other licensees. In instances where DFS has discretionary authority to suspend a licensee’s license, the rule identifies the suspension periods that will apply to specific statutory violations.
Comments at the workshop centered on a few key issues. One potential concern is that the rules would impose a suspension period in situations where an applicant for a license made a misstatement in the application but the misstatement would not have affected DFS’ decision to issue to the license. Workshop participants questioned whether a suspension is warranted when the nature of the misstatement would not have affected the licensing decision.
Other comments related to rules providing for the suspension of agency licenses and adjusting firm licenses. Unlike some of the other rule revisions, these changes do not appear to be supported by underlying statutory rulemaking authority. In addition, the rules would extend to provisions of managing general agency contracts that appear to be regulated by the Office of Insurance Regulation.
DFS will accept written comments relating to the rules through August 31.