DFS Outlines Limits Services by Unlicensed Agency Personnel
In most its recent Insurance Insights update, the Florida Department of Financial Services (DFS) reminded licensees that unlicensed personnel can perform only limited activities within an insurance agency. Rule Chapter 69B-222, Florida Administrative Code, outlines permitted and prohibited activities for unlicensed personnel. The rules focus on ensuring that unlicensed individuals are involved in certain types of agency activities only on an incidental basis (or not at all). The rules also limit the types of compensation unlicensed personnel can receive.
DFS also reminds licensees that the following actions are never allowable for 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 set appointments for licensed 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.
Insurance agencies should carefully consider the scope of activities performed by unlicensed persons. The penalties for transacting insurance without a required license are severe. This can include being subject to charges as a third-degree felony, punishable as provided in sections 775.082, 775.083, or 775.084, Florida Statutes.