News & Updates

Insurance

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. […]

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New Laws Affect Agent Procedures

New Laws Affect Agent Procedures

In the 2019 session, the Florida legislature passed HB 301 with several provisions impacting agents and insurers. Most of these provisions took effect July 1, 2019. Among the law changes, the insurance code now requires a life insurer to notify the servicing agent at least 21 days before a life insurance policy lapses. This notice […]

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Diligent Effort Exemption Expires for Flood Insurance

Diligent Effort Exemption Expires for Flood Insurance

The Florida Department of Financial Services (DFS) advises surplus lines agents that a diligent effort exemption for personal residential flood insurance has expired. The Florida legislature previously adopted Section 627.715, Florida Statutes, to encourage the development of a private market for residential flood insurance. Among its provisions, the statute provided at subsection (4): (4) A surplus […]

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DFS Cautions Against Use of Unlicensed Personnel

DFS Cautions Against Use of Unlicensed Personnel

The Florida Department of Financial Services (DFS) has published a reminder cautioning agencies about the limitations on support activities that may be performed by unlicensed personnel. DFS describes unlicensed personnel as having “limited discretion” in how they can support the operations of an insurance agency. Rule Chapter 69B-222, Florida Administrative Code, describes the permissible scope […]

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AOB Reforms Take Effect

AOB Reforms Take Effect

Many proposals that passed in the 2019 legislative session take effect July 1.  This includes most portions of the Assignment of Benefits (AOB) reform bill passed by the legislature this year.  Although the legislature passed other legislature accelerating the effective date of a new method for dealing with attorneys’ fees, the core portions of the […]

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Governor Signs AOB Reform Bill

Governor Signs AOB Reform Bill

Governor Ron DeSantis has signed HB 7065 reforming the use of assignments in Florida’s property insurance market. He also signed HB 337 relating to Florida’s court system and also accelerating the effective date of HB 7065’s attorney’s fee revisions. Most of the law changes relating to assignments of benefits (AOB) take effect July 1. However, […]

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FHCF Maintains $17 Billion Single-Season Capacity

FHCF Maintains $17 Billion Single-Season Capacity

The Florida Hurricane Catastrophe Fund (FHCF) continues to anticipate it will be able to meet its $17 billion in contracted single-season capacity if the need arises.  The FHCF projects its year-end 2019 fund balance will be $12.4 billion. Adding $1.7 billion in pre-event notes and an expected $1.0 billion in risk transfer (reinsurance), the FHCF projects […]

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Legislature Develops Solution for Long Term Care Insolvencies

Legislature Develops Solution for Long Term Care Insolvencies

The House and Senate based a bill designed to more equitable handle insolvencies associated with long term care insurers. After passing both chambers without opposition, HB 673 goes to Governor Ron DeSantis for action. The bill largely follows the NAIC Model Act related funding long-term care insolvencies. In general, these insolvencies will be divided evenly […]

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AOB Reform Ranks Among Top Issues of Session

AOB Reform Ranks Among Top Issues of Session

The 2019 Florida legislative session has come to a close.  After several years of “wait ’til next year” results on the Assignment of Benefits (AOB) issue, this year’s legislature finally passed much-needed reform.  Media outlets around the state are calling this one of the biggest results of the 2019 session. The legislature’s paramount duty, of […]

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Legislature Passes AOB Reform

Legislature Passes AOB Reform

The Florida legislature has passed HB 7065 designed to curb abuses with “assignments of benefits” in Florida’s property insurance market. Among other things, the bill addresses problems with Florida’s one-way attorneys’ fee statute arising when commercial vendors use the statute in suits against insurers. The bill also allows insurers to adopt policy forms restricting assignments […]

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