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Agents Must Supervise Customer Representatives

Agents Must Supervise Customer Representatives

The Florida Department of Financial Services (DFS) reminds insurers that the customer representatives they supervise have limited authority under the insurance code. DFS points out that general lines agents and their customer representatives sometimes “blur the lines” relating to the customer representatives’ authority.

Agents should pay particular attention to Chapter 626, Part II General Lines Agents. This especially includes section 626.7315 regarding the unlicensed transaction of insurance. The statute describes activities that may be performed only by licensed agents. Conversely, sections 626.7352, 626.7353, and 626.7354 describe the scope of permissible activities by customer representatives. DFS also urges agents to review Chapter 69B-213, Florida Administrative Code, for additional guidance regarding customer representatives.

A customer representative can only solicit business within the office or by phone from the office. The customer representative cannot “run the office” during the extended absence of a general lines agent. Although a customer representative can conduct activities under his/her license during an absence of the general lines agent, the general lines agent must have daily, in-person contact with the customer representative.