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Florida Surety Regulations

Delivered July 4th, 2020. Contributors: Rin P.

Research Outline: Florida Surety Regulations
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Florida Surety Regulations

Our research indicates that a person must be a registered, licensed insurance agent in Florida in order to sell surety bonds in Florida. Information on the types of surety bonds available in Florida, the processes for applying to be a licensed agent and/or to open a licensed agency in Florida, and the financial requirements to become a licensed agent and/or open a licensed agency in Florida are presented. Our report contains information found through Florida government sources and other locations, as cited.

Six Types of Surety Bonds Available in Florida

  • Florida Statutes cover 6 categories of surety bonds as part of the Insurance Code section: Title XXXVII INSURANCE. Chapter 624: INSURANCE CODE: ADMINISTRATION AND GENERAL PROVISIONS.
  • 624.606 “Surety insurance” defined.— (1) “Surety insurance” includes: (a) A contract bond, including a bid, payment, or maintenance bond, or a performance bond, which guarantees the execution of a contract other than a contract of indebtedness or other monetary obligation; (b) An indemnity bond for the benefit of a public body, railroad, or charitable organization or a lost security or utility payment bond; (c) Becoming surety on, or guaranteeing the performance of, any lawful contract where the bond is guaranteeing the execution of a contract other than a contract of indebtedness or other monetary obligation; (d) Becoming surety on, or guaranteeing the performance of, bonds and undertakings required or permitted in a judicial proceeding or otherwise allowed by law, including surety bonds accepted by states and municipal authorities in lieu of deposits as security for the performance of insurance contracts; (e) Fidelity insurance as defined in s. 624.6065 for the purposes of the Florida Insurance Code other than part XX of chapter 627; or (f)Residual value insurance as defined in s. 624.6081."

License Requirements for Surety Bonding in Florida

Licensed Agents and Agencies Requirement
  • A person who wants to create a surety in Florida must be a licensed agent, according to Florida Statutes 626.112.
  • FL Stats 626.112 "License and appointment required; agents, customer representatives, adjusters, insurance agencies, service representatives, managing general agents.—"
  • "(1)(a) No person may be, act as, or advertise or hold himself or herself out to be an insurance agent, insurance adjuster, or customer representative unless he or she is currently licensed by the department and appointed by an appropriate appointing entity or person."
Application Process to Become a Licensed Agent or Agency
  • There is a multi-step process involved in becoming a licensed agent to offer insurance (including surety) in the State of Florida, as presented below:
  • FL Stats 626.171 "Application for license as an agent, customer representative, adjuster, service representative, or reinsurance intermediary.—
  • "(1) The department may not issue a license as agent, customer representative, adjuster, service representative, or reinsurance intermediary to any person except upon written application filed with the department, meeting the qualifications for the license applied for as determined by the department, and payment in advance of all applicable fees."
  • The application process includes a requirement that the applicant swear an oath and provide his/her fingerprints.
  • FL Stats 626.172 "Application for insurance agency license.—(1) The department may issue a license as an insurance agency to any person only after such person files a written application with the department and qualifies for such license."
  • Other requirements for an insurance agency license include providing the names of all officers and owners and their addresses, the physical business address of the agency, the fingerprints of the sole proprietor, owners, directors, and officers of the agency.
  • The specific license needed for a surety is "The Florida 2-20 Property and Casualty Agent License, or General Lines Agent License." Either of these license types "allows an individual, after being appointed by the Insurance Company, to transact any of the following kinds of insurance: property, casualty, surety, health, marine, and miscellaneous lines" and to open an independent insurance agency.
  • Fees are required. A list of fees is here.
  • Another list of fees is here.
Requirements for Bail Bonding
  • A person who wishes to become licensed for bail bonds must meet state requirements that are different/in addition to other surety bond requirements.
Financial Requirements for Surety
  • If a person is a "new insurer", then there are financial requirements that must be met. The requirement for a new surety appears to be $2.5 million "surplus" plus 10 percent of the surety's total liabilities, as described below:
  • FL Stat § 624.407 (2019) "Surplus required; new insurers.—(1) To receive authority to transact any one kind or combinations of kinds of insurance, as defined in part V [See 624.606 above] of this chapter, an insurer applying for its original certificate of authority in this state shall possess surplus as to policyholders at least the greater of: (a) For a property and casualty insurer, $5 million, or $2.5 million for any other insurer; (b) For life insurers, 4 percent of the insurer’s total liabilities; (c) For life and health insurers, 4 percent of the insurer’s total liabilities, plus 6 percent of the insurer’s liabilities relative to health insurance; (d) For all insurers other than life insurers and life and health insurers, 10 percent of the insurer’s total liabilities; (e) Notwithstanding paragraph (a) or paragraph (d), for a domestic insurer that transacts residential property insurance and is: 1. Not a wholly owned subsidiary of an insurer domiciled in any other state, $15 million. 2. A wholly owned subsidiary of an insurer domiciled in any other state, $50 million; (f) Notwithstanding paragraphs (a), (d), and (e), for a domestic insurer that only transacts limited sinkhole coverage insurance for personal lines residential property pursuant to s. 627.7151, $7.5 million; or (g) Notwithstanding paragraphs (a), (d), and (e), for an insurer that only transacts residential property insurance in the form of renter’s insurance, tenant’s coverage, cooperative unit owner insurance, or any combination thereof, $10 million. (2) Notwithstanding subsection (1), a new insurer may not be required to have surplus as to policyholders greater than $100 million. (3) The requirements of this section shall be based upon all the kinds of insurance actually transacted or to be transacted by the insurer in any and all areas in which it operates, whether or not only a portion of such kinds of insurance are transacted in this state. (4) As to surplus as to policyholders required for qualification to transact one or more kinds of insurance, domestic mutual insurers are governed by chapter 628, and domestic reciprocal insurers are governed by chapter 629. (5) For the purposes of this section, liabilities do not include liabilities required under s. 625.041(5). For purposes of computing minimum surplus as to policyholders pursuant to s. 625.305(1), liabilities include liabilities required under s. 625.041(5)."
  • Another type of financial "surplus" requirement is listed at FL Stats 627.754 Sureties upon official bonds.—.

Did this report spark your curiosity?

Sources
Sources

Statutes & Constitution :View Statutes : Online Sunshine

leg.state.fl.us
Publication Year: 2020
Quotes
  • "The 2019 Florida Statutes Title XXXVII INSURANCE Chapter 624 INSURANCE CODE: ADMINISTRATION AND GENERAL PROVISIONS View Entire Chapter 624.606 “Surety insurance” defined.— (1) “Surety insurance” includes: (a) A contract bond, including a bid, payment, or maintenance bond, or a performance bond, which guarantees the execution of a contract other than a contract of indebtedness or other monetary obligation;"
  • "(b) An indemnity bond for the benefit of a public body, railroad, or charitable organization or a lost security or utility payment bond; (c) Becoming surety on, or guaranteeing the performance of, any lawful contract where the bond is guaranteeing the execution of a contract other than a contract of indebtedness or other monetary obligation; (d) Becoming surety on, or guaranteeing the performance of, bonds and undertakings required or permitted in a judicial proceeding or otherwise allowed by law, including surety bonds accepted by states and municipal authorities in lieu of deposits as security for the performance of insurance contracts;"
  • "(e) Fidelity insurance as defined in s. 624.6065 for the purposes of the Florida Insurance Code other than part XX of chapter 627; or (f) Residual value insurance as defined in s. 624.6081. (2) “Surety insurance” does not include: (a) Mortgage guaranty insurance, as defined in s. 635.011; (b) Financial guaranty insurance, as defined in s. 627.971; or (c) Any reinsurance contract authorized pursuant to s. 624.610. History.—s. 104, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 86, 809(1st), ch. 82-243; s. 3, ch. 88-87; ss. 184, 187, 188, ch. 91-108; s. 1, ch. 91-110; s. 4, ch. 91-429; s. 17, ch. 95-211."

Bonds Overview

myfloridacfo.com
Quotes
  • "A bond is a contractual guarantee by a third-party that something will happen. There are two general categories of bonds - fidelity and surety."
  • "A surety bond is a three party guarantee put into place to protect the party requesting the bond and guarantees the performance, ability, honesty and integrity of individuals performing various responsibilities and obligations. The three parties involved are the obligee, principal and surety. However, there can be another party to a suretyship called an indemnitor."
  • "Indemnitor: An indemnitor may come into play when the Principal has the capabilities to perform the obligation, but is lacking the financial resources to carry it through to completion. The indemnitor may put up cash, other liquid assets, certificates of deposit (CD’S), etc. to entice the surety to issue the bond to the principal."
  • "Managing General Agents: A person or firm authorized by an insurance company to transact insurance business on its behalf. They have authority to bind coverage, issue policies, appoint agents, adjust claims and provide administrative support."

10 Things About Surety Bonds — Florida Surety Association

floridasurety.com
Publication Year: 2020
Quotes
  • "1. A surety bond is an instrument under which a surety guarantees to fulfill the obligations of one party to a second party if the first party fails to perform the obligations. "
  • "5. There are three types of contract bonds: the bid, performance, and payment bond. They protect the taxpayer by guaranteeing that the contractor is able to enter into the contract; perform the work on time and according to the contract; and that certain workers, subcontractors, and suppliers will be paid."
  • ""

Florida surety bond

wwisinc.com
Quotes
  • "License and permit bonds are required by the state of Florida and other municipal entities to receive a license or permit to operate and comply with business activities. Florida surety bonds guaranty compliance with Florida surety bond law, municipal ordinances and regulations. Many of these bonds are instant issue and can be provided to you at a very low rate. Just pay the premium, sign the agreement and we issue the bond - Its that simple!"
  • "Examples of Florida surety bonds include: Contractors license bonds assure that a contractor (such as a plumber, electrician, or general contractor) comply with laws relating to their field. Customs bonds, including importer entry bonds, assure compliance with all relevant laws, as well as payment of import duties and taxes. Tax bonds assure that a business owner comply with laws relating to the remittance of sales or other taxes. Reclamation and environmental protection bonds guarantee restoration of a site to its original condition after operations have ceased. Brokers bonds, including Insurance, Mortgage, and Title Agency bonds guarantee industry standard, state rule and regulation compliance."
  • "ERISA (Employee Retirement Income Security Act) bonds protect against plan loss due to fraud or dishonesty by persons who "handle" plan funds or other property. Motor vehicle dealer bonds, also called Auto Dealer Bonds, a DMV Bonds, or a Used Car Dealer Bonds. To be licensed, dealers are required to post a bond. Freight Broker Bonds are also called ICC Broker Bonds, Federal Freight Forwarder Bonds or BMC-84 bonds and are a needed to legally operate as a transportation broker. Money transmitter bonds are also called money remitter bonds, money services business bonds, or check casher bonds, assure adherence to industry laws and other standards. Health spa bonds are also called Health and Fitness Club Bonds, or Physical Exercise Club Bonds. These bonds protect spa members from a loss resulting in a spa closing."
  • "Lost Title Bonds are also called bonded titles, lost title bonds or certificate of title bonds. Needed if the owner has lost or needs a replacement title for registration. Performance / Payment Bonds assures contractor or subcontractor payment to their subcontractors, material suppliers or laborers for the work and materials provided. Site Improvement Bonds provide assurance that contractors complete tasks when doing improvements on current sites rather than on a new buildings. Utility Bonds provide financial assurance that a person or organization will pay for utilities on time. Usually required when a large volume of projected use is anticipated."

Florida Bail Laws - AIA Bail Bond Surety

aiasurety.com
Publication Year: 2015
Quotes
  • "Florida Bail Laws 1. Applicable Statutes: Florida Statutes (FS) Chapter 648, Chapter 903 Florida Administrative Code (AR), Chapter 4-221 Governance by Local Rule. Does not appear to allow local jurisdictions to modify statutes or regulations."
  • "2. Licensing Requirements: In order to undertake bail in Florida, a person must have a license [AR 4-221.001, FS 648.26, 648.30]. Florida law specifies two kinds of bail bond agent: (1) a limited surety agent, defined as a person appointed by an insurer to execute bail bonds [FS 648.25(5)], (2) a professional bail bond agent, defined as a person who pledges US currency as security for a bail bond [FS 648.25(7)]."
  • "A. Qualifications for License Bail bond agents must comply with the following for licensure. Have complied with the provisions of 648.355 and obtained a temporary license [FS 648.34(2)] Be 18 years old and hold a high school diploma or its equivalent [FS 648.34(2)(a)] Be a United States citizen or legal alien with work authorization [FS 648.34(2)(b)] Be a resident of Florida [FS 648.34(2)(b)] Place of business must be located in a Florida county where the records will be maintained and open during reasonable business hours [FS 648.34(2)(c)] Must be vouched for and recommended by three reputable citizens who are residents of the county where the applicant proposes to engage in bail bond business [FS 648.34(2)(d)] Be of good character with no convictions on a felony, crime of moral turpitude, or crime punishable by 1 year or more [FS 648.34(2)(e)] Passage of required examinations [FS 648.34(2)(f)] Furnish photo and fingerprints with application [FS 648.34(4)] Payment for required credit and background checks [FS 648.34(3)] Completion of 14 hours of continuing education courses every two years [FS 648.385]"
  • "Professional bail bond agents have the same requirements as in FS 648.34, but in addition shall: File a detailed financial statement under oath with each application for licensure or renewal [FS 648.35(1)] File the rating plan proposed for use in writing bail bonds. Such rating plan must be approved by the office prior to issuance of the license. [FS 648.35(2)] The regulatory body is the Department of Financial Services [FS 648.26] 3. Notice of Forfeiture [FS 903.26] A. Conditions of forfeiture o Breach of the conditions of the bond and/or failure of defendant to appear [FS 903.26(2)(b)], o Clerk of the court must mail a notice of forfeiture to surety agent and surety company within 5 days [FS 903.26(2)(a)]. 4. Forfeiture to Judgment Forfeitures must be paid within 60 days of date of notice [FS 903.26(2)(a)] If forfeiture is not paid within 60 days, the clerk of the court shall within 10 days furnish the Department of Financial Services and the surety with a certification of the judgment docket [FS 903.27(1)],"
  • "If judgment is not paid within 35 days, the clerk informs the Department of Financial Services and sheriff of jurisdiction that the judgment is unsatisfied [FS 903.27(1)] Surety bail bonds may not be executed by a bail bond agent against whom a judgment has been entered that has remained unpaid for 35 days, and may not be executed for a company against whom a judgment has been entered that has remained unpaid for 50 days. [FS 903.27(3)] No sheriff can approve surety bail bonds from subject agent or company until such a judgment has been paid [FS 903.27(3)] The surety/agent has 35 days to file a motion to set aside a judgment or stay. To make the motion, the surety must pay the clerk the amount of the judgment, which will be put into escrow until the court rules on the motion to set aside judgment. [FS 903.27(5)]. Tolling: If the defendant is returned to the court of jurisdiction, whenever a motion to set aside is filed, the operation of this section is tolled until the court makes its disposition [FS 903.27(1)]"
  • "5. Forfeiture Defenses Unless the indictment is filed within 6 months of the arrest [FS 903.26(1)] and the clerk of the court gives 72 hours notice (exclusive of weekends and holidays) to surety of time of the defendant’s required appearance [FS 903.26(1)(b)], the bond cannot be forfeited Impossible for defendant to appear because of circumstance beyond his control [FS 903.26(5)(a)]. Potential adverse economic consequences shall not be considered as constituting a group for such a determination. Defendant was adjudicated insane and confined in an institution/hospital, or was in jail/prison. [FS 903.26(5)(b)] Surrender or arrest of the defendant if the delay has not thwarted the proper prosecution of the defendant. [FS 903.26(5)(c)] If defendant is arrested and returned to court of jurisdiction prior to judgment [FS 903.26(8)]. However, if the surety agent fails to pay the costs and expenses incurred in returning the defendant to the county of jurisdiction, the clerk shall not discharge the forfeiture of the bond. If the surety agent and the state attorney fail to agree on the amount of said costs, then the court shall determine them. "
  • "6. Remission [FS 903.28] Remission can be granted up to two years subject to the following: If defendant is returned with 90 days, remission may be up to 100% [FS 903.28(2)], within 180 days, remission up to 95% [FS 903.28(3)], within 270 days, up to 90% [FS 903.28(4)], within 1 year, 85% [FS 903.28(5)], within 2 years, 50% [FS 903.28(6)]. The court shall direct remission of up to the above amounts if the surety apprehended and surrendered the defendant or if the apprehension or surrender of the defendant was substantially procured or caused by the surety, or the surety has substantially attempted to procure or cause the apprehension or surrender of the defendant, and the delay has not thwarted the prosecution of the defendant. [FS 903.28] Remission shall also be granted when the surety did not substantially participate or attempt to participate in the apprehension or surrender of the defendant when the costs of returning the defendant to the have been deducted from the remission and when the delay has not thwarted the prosecution of the defendant. [FS 903.28]"
  • "7. Bail Agent Arrest Authority FS 903.20]. A surety may arrest a principal for surrender to official custody before a forfeiture [FS 903.22] or within 2 years of the forfeiture date [FS 903.29]. 8. Other Noteworthy Provisions All insurers shall have a licensed and appointed managing general agent who shall supervise their bail bond agents [AR 4-221.003, FS 648.388]. Qualifications for prelicensing and continuing education classes and instructors [FS 648.386]. 9. Noteworthy State Appellate Decisions 10. Bounty Hunter Provisions. Florida does not allow bounty hunters. Apprehension of bail fugitives is only allowed as set forth in FS 648.30(2)&(3): (2) No person shall represent himself or herself to be a bail enforcement agent, bounty hunter, or other similar title in [Florida]. (3) No person, other than a certified law enforcement officer, shall be authorized to apprehend, detain, or arrest a principal on a bond, wherever issued, unless that person is qualified, licensed, and appointed as provided in this chapter or licensed as a bail bond agent by the state where the bond was written. Violation of this is a 3rd class felony. [FS 648.30(4)]."

2019 Florida Statutes :: Title XXXVII - Insurance

law.justia.com
Quotes
  • "2019 Florida Statutes Title XXXVII - Insurance Chapter 624 - Insurance Code: Administration and General Provisions Chapter 625 - Accounting, Investments, and Deposits by Insurers Chapter 626 - Insurance Field Representatives and Operations Chapter 627 - Insurance Rates and Contracts Chapter 628 - Stock and Mutual Insurers; Holding Companies Chapter 629 - Reciprocal Insurers Chapter 630 - Alien Insurers: Trusteed Assets; Domestication Chapter 631 - Insurer Insolvency; Guaranty of Payment Chapter 632 - Fraternal Benefit Societies Chapter 633 - Fire Prevention and Control Chapter 634 - Warranty Associations Chapter 635 - Mortgage Guaranty Insurance"
  • " Chapter 636 - Prepaid Limited Health Service Organizations and Discount Plan Organizations Chapter 641 - Health Care Service Programs Chapter 642 - Legal Expense Insurance Chapter 648 - Bail Bond Agents Chapter 650 - Social Security for Public Employees Chapter 651 - Continuing Care Contracts"

2019 Florida Statutes :: Title XXXVII - Insurance :: Chapter 626 - Insurance Field Representatives and Operations :: Part I - Insurance Representatives: Licensing Procedures and General Requirements (Ss. 626.011-626.711) :: 626.112 - License and appointment required; agents, customer representatives, adjusters, insurance agencies, service representatives, managing general agents.

law.justia.com
Quotes
  • "2019 Florida Statutes Title XXXVII - Insurance Chapter 626 - Insurance Field Representatives and Operations Part I - Insurance Representatives: Licensing Procedures and General Requirements (Ss. 626.011-626.711) 626.112 - License and appointment required; agents, customer representatives, adjusters, insurance agencies, service representatives, managing general agents."
  • "Universal Citation: FL Stat § 626.112 (2019) 626.112 License and appointment required; agents, customer representatives, adjusters, insurance agencies, service representatives, managing general agents.— (1)(a) No person may be, act as, or advertise or hold himself or herself out to be an insurance agent, insurance adjuster, or customer representative unless he or she is currently licensed by the department and appointed by an appropriate appointing entity or person. (b) Except as provided in subsection (6) or in applicable department rules, and in addition to other conduct described in this chapter with respect to particular types of agents, a license as an insurance agent, service representative, customer representative, or limited customer representative is required in order to engage in the solicitation of insurance. For purposes of this requirement, as applicable to any of the license types described in this section, the solicitation of insurance is the attempt to persuade any person to purchase an insurance product by: 1. Describing the benefits or terms of insurance coverage, including premiums or rates of return; 2. Distributing an invitation to contract to prospective purchasers; 3. Making general or specific recommendations as to insurance products; 4. Completing orders or applications for insurance products; 5. Comparing insurance products, advising as to insurance matters, or interpreting policies or coverages; or 6. Offering or attempting to negotiate on behalf of another person a viatical settlement contract as defined in s. 626.9911."
  • "(2) No agent or customer representative shall solicit or otherwise transact as agent or customer representative, or represent or hold himself or herself out to be an agent or customer representative as to, any kind or kinds of insurance as to which he or she is not then licensed and appointed. (3) No person shall act as an adjuster as to any class of business for which he or she is not then licensed and appointed. (4) No person shall be, act as, or represent or hold himself or herself out to be a service representative unless he or she then holds a currently effective service representative license and appointment. This subsection does not apply as to similar representatives or employees of casualty insurers whose duties are restricted to health insurance. (5) A person may not be, act as, or represent or hold himself or herself out to be a managing general agent unless he or she then holds a currently effective producer license and a managing general agent appointment. (6) An individual employed by a life or health insurer as an officer or other salaried representative may solicit and effect contracts of life insurance or annuities or of health insurance, without being licensed as an agent, when and only when he or she is accompanied by and solicits for and on the behalf of a licensed and appointed agent. (7)(a) An individual, firm, partnership, corporation, association, or other entity shall not act in its own name or under a trade name, directly or indirectly, as an insurance agency unless it complies with s. 626.172 with respect to possessing an insurance agency license for each place of business at which it engages in an activity that may be performed only by a licensed insurance agent. However, an insurance agency that is owned and operated by a single licensed agent conducting business in his or her individual name and not employing or otherwise using the services of or appointing other licensees shall be exempt from the agency licensing requirements of this subsection. (b) A branch place of business that is established by a licensed agency is considered a branch agency and is not required to be licensed so long as it transacts business under the same name and federal tax identification number as the licensed agency and has designated with the department a licensed agent in charge of the branch location as required by s. 626.0428 and the address and telephone number of the branch location have been submitted to the department for inclusion in the licensing record of the licensed agency within 30 days after insurance transactions begin at the branch location. (c) If an agency is required to be licensed but fails to file an application for licensure in accordance with this section, the department shall impose on the agency an administrative penalty of up to $10,000. (d) Effective October 1, 2015, the department must automatically convert the registration of an approved registered insurance agency to an insurance agency license. (8) No insurance agent, insurance agency, or other person licensed under the Insurance Code may pay any fee or other consideration to an unlicensed person other than an insurance agency for the referral of prospective purchasers to an insurance agent which is in any way dependent upon whether the referral results in the purchase of an insurance product. (9) Any person who knowingly transacts insurance or otherwise engages in insurance activities in this state without a license in violation of this section commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084. History.—s. 190, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 3, ch. 81-282; ss. 2, 3, ch. 81-318; ss. 154, 217, 807, 810, ch. 82-243; s. 16, ch. 87-226; s. 56, ch. 89-360; ss. 13, 206, 207, ch. 90-363; s. 4, ch. 91-429; s. 211, ch. 97-102; s. 8, ch. 98-199; s. 45, ch. 2001-63; s. 3, ch. 2001-142; ss. 8, 48, ch. 2002-206; s. 78, ch. 2003-1; s. 910, ch. 2003-261; s. 22, ch. 2003-267; s. 15, ch. 2003-281; s. 20, ch. 2004-390; s. 117, ch. 2005-2; s. 8, ch. 2005-237; s. 7, ch. 2005-257; s. 8, ch. 2006-305; s. 1, ch. 2007-199; s. 7, ch. 2014-123; s. 16, ch. 2018-102."

2019 Florida Statutes :: Title XXXVII - Insurance :: Chapter 626 - Insurance Field Representatives and Operations :: Part I - Insurance Representatives: Licensing Procedures and General Requirements (Ss. 626.011-626.711) :: 626.171 - Application for license as an agent, customer representative, adjuster, service representative, or reinsurance intermediary.

law.justia.com
Quotes
  • "2019 Florida Statutes Title XXXVII - Insurance Chapter 626 - Insurance Field Representatives and Operations Part I - Insurance Representatives: Licensing Procedures and General Requirements (Ss. 626.011-626.711) 626.171 - Application for license as an agent, customer representative, adjuster, service representative, or reinsurance intermediary."
  • "Universal Citation: FL Stat § 626.171 (2019) 626.171 Application for license as an agent, customer representative, adjuster, service representative, or reinsurance intermediary.— (1) The department may not issue a license as agent, customer representative, adjuster, service representative, or reinsurance intermediary to any person except upon written application filed with the department, meeting the qualifications for the license applied for as determined by the department, and payment in advance of all applicable fees. The application must be made under the oath of the applicant and be signed by the applicant. An applicant may permit a third party to complete, submit, and sign an application on the applicant’s behalf, but is responsible for ensuring that the information on the application is true and correct and is accountable for any misstatements or misrepresentations. The department shall accept the uniform application for nonresident agent licensing. The department may adopt revised versions of the uniform application by rule. (2) In the application, the applicant shall set forth: 1(a) His or her full name, age, social security number, residence address, business address, mailing address, contact telephone numbers, including a business telephone number, and e-mail address."
  • "b) A statement indicating the method the applicant used or is using to meet any required prelicensing education, knowledge, experience, or instructional requirements for the type of license applied for. (c) Whether he or she has been refused or has voluntarily surrendered or has had suspended or revoked a license to solicit insurance by the department or by the supervising officials of any state. (d) Whether any insurer or any managing general agent claims the applicant is indebted under any agency contract or otherwise and, if so, the name of the claimant, the nature of the claim, and the applicant’s defense thereto, if any. (e) Proof that the applicant meets the requirements for the type of license for which he or she is applying. (f) The applicant’s gender (male or female). (g) The applicant’s native language. (h) The highest level of education achieved by the applicant. (i) The applicant’s race or ethnicity (African American, white, American Indian, Asian, Hispanic, or other). (j) Such other or additional information as the department may deem proper to enable it to determine the character, experience, ability, and other qualifications of the applicant to hold himself or herself out to the public as an insurance representative. However, the application must contain a statement that an applicant is not required to disclose his or her race or ethnicity, gender, or native language, that he or she will not be penalized for not doing so, and that the department will use this information exclusively for research and statistical purposes and to improve the quality and fairness of the examinations. (3) Each application must be accompanied by payment of any applicable fee. (4) An applicant for a license as an agent, customer representative, adjuster, service representative, or reinsurance intermediary must submit a set of the individual applicant’s fingerprints, or, if the applicant is not an individual, a set of the fingerprints of the sole proprietor, majority owner, partners, officers, and directors, to the department and must pay the fingerprint processing fee set forth in s. 624.501. Fingerprints must be used to investigate the applicant’s qualifications pursuant to s. 626.201. The fingerprints must be taken by a law enforcement agency, designated examination center, or other department-approved entity. The department shall require all designated examination centers to have fingerprinting equipment and to take fingerprints from any applicant or prospective applicant who pays the applicable fee. The department may not approve an application for licensure as an agent, customer service representative, adjuster, service representative, or reinsurance intermediary if fingerprints have not been submitted. (5) The application for license filing fee prescribed in s. 624.501 is not subject to refund. (6) Members of the United States Armed Forces and their spouses, and veterans of the United States Armed Forces who have separated from service within 24 months before application for licensure, are exempt from the application filing fee prescribed in s. 624.501. Qualified individuals must provide a copy of a military identification card, military dependent identification card, military service record, military personnel file, veteran record, discharge paper or separation document that indicates such members are currently in good standing or such veterans were honorably discharged. (7) Pursuant to the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996, each party is required to provide his or her social security number in accordance with this section. Disclosure of social security numbers obtained through this requirement must be limited to the purpose of administration of the Title IV-D program for child support enforcement. History.—s. 196, ch. 59-205; ss. 13, 35, ch. 69-106; s. 4, ch. 71-86; s. 1, ch. 72-34; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 3, ch. 81-282; ss. 2, 3, ch. 81-318; ss. 158(2nd), 217, 807, 810, ch. 82-243; s. 3, ch. 85-208; ss. 16, 206, 207, ch. 90-363; s. 4, ch. 91-429; s. 42, ch. 92-146; s. 212, ch. 97-102; s. 66, ch. 97-170; s. 10, ch. 98-199; s. 4, ch. 2001-142; ss. 9, 50, ch. 2002-206; s. 912, ch. 2003-261; s. 23, ch. 2003-267; s. 16, ch. 2003-281; s. 22, ch. 2004-390; s. 8, ch. 2005-257; s. 1, ch. 2006-184; s. 138, ch. 2007-5; s. 2, ch. 2008-237; s. 3, ch. 2012-209; s. 8, ch. 2014-123; s. 41, ch. 2018-7; s. 17, ch. 2018-102. 1Note.—Section 12, ch. 2008-237, provides in part that “[e]ffective [June 30, 2008,] the Department of Financial Services may adopt rules to implement this act.”"

Application for Insurance Agency License

2019 florida statutes title xxxvii - insurance chapter 626 - insurance field representatives and operations part i - insurance representatives: licensing procedures and general requirements (ss. 626.011-626.711) 626.172 - application for insurance agency license.
Quotes
  • "2019 Florida Statutes Title XXXVII - Insurance Chapter 626 - Insurance Field Representatives and Operations Part I - Insurance Representatives: Licensing Procedures and General Requirements (Ss. 626.011-626.711) 626.172 - Application for insurance agency license."
  • "Universal Citation: FL Stat § 626.172 (2019) 626.172 Application for insurance agency license.— (1) The department may issue a license as an insurance agency to any person only after such person files a written application with the department and qualifies for such license. (2) An application for an insurance agency license must be signed by an individual required to be listed in the application under paragraph (a). An insurance agency may permit a third party to complete, submit, and sign an application on the insurance agency’s behalf; however, the insurance agency is responsible for ensuring that the information on the application is true and correct and is accountable for any misstatements or misrepresentations. The application for an insurance agency license must include: (a) The name of each owner, partner, officer, director, president, senior vice president, secretary, treasurer, and limited liability company member who directs or participates in the management or control of the insurance agency, whether through ownership of voting securities, by contract, by ownership of any agency bank account, or otherwise. (b) The residence address of each person required to be listed in the application under paragraph (a)."
  • "(c) The name, principal business street address, and valid e-mail address of the insurance agency and the name, address, and e-mail address of the agency’s registered agent or person or company authorized to accept service on behalf of the agency. (d) The physical address of each branch agency, including its name, e-mail address, and telephone number, and the date that the branch location began transacting insurance. (e) The name of the agent in full-time charge of the agency office, including branch locations, and his or her corresponding location. (f) The fingerprints of each of the following: 1. A sole proprietor; 2. Each individual required to be listed in the application under paragraph (a); and 3. Each individual who directs or participates in the management or control of an incorporated agency whose shares are not traded on a securities exchange. Fingerprints must be taken by a law enforcement agency or other entity approved by the department and must be accompanied by the fingerprint processing fee specified in s. 624.501. Fingerprints must be processed in accordance with s. 624.34. However, fingerprints need not be filed for an individual who is currently licensed and appointed under this chapter. This paragraph does not apply to corporations whose voting shares are traded on a securities exchange. (g) Such additional information as the department requires by rule to ascertain the trustworthiness and competence of persons required to be listed on the application and to ascertain that such persons meet the requirements of this code. However, the department may not require that credit or character reports be submitted for persons required to be listed on the application. (3) The department must accept the uniform application for nonresident agency licensure. The department may adopt by rule revised versions of the uniform application. (4) The department must issue a license to each agency upon approval of the application, and each agency location must display the license prominently in a manner that makes it clearly visible to any customer or potential customer who enters the agency location. History.—ss. 161, 807, ch. 82-243; ss. 206, 207, ch. 90-363; s. 4, ch. 91-429; s. 213, ch. 97-102; s. 9, ch. 2005-257; s. 9, ch. 2014-123."

Florida 2-20 Property and Casualty general Lines Agent License

centralinsuranceschool.com
Quotes
  • "The Florida 2-20 Property and Casualty Agent License, or "General Lines Agent License," allows an individual, after being appointed by the Insurance Company, to transact any of the following kinds of insurance: property, casualty, surety, health, marine, and miscellaneous lines. The Florida 2-20 Property and Casualty Agent License allows an individual to: Open their own Independent Insurance Agency Appoint a 4-40 Customer Service Representative Sell Property and Casualty insurance, as well as Health insurance"

General Lines Agents

2019 florida statutes title xxxvii - insurance chapter 626 - insurance field representatives and operations part ii - general lines agents (ss. 626.726-626.754) 626.726 - short title.
Quotes
  • "2019 Florida Statutes Title XXXVII - Insurance Chapter 626 - Insurance Field Representatives and Operations Part II - General Lines Agents (Ss. 626.726-626.754)"
  • "626.726 - Short title. 626.727 - Scope of this part. 626.728 - This part supplements licensing law. 626.729 - “Industrial fire insurance” defined. 626.730 - Purpose of license. 626.731 - Qualifications for general lines agent’s license. 626.7315 - Prohibition against the unlicensed transaction of general lines insurance. 626.732 - Requirement as to knowledge, experience, or instruction. 626.733 - Agency firms and corporations; special requirements. 626.734 - Corporations, liability of agent. 626.7351 - Qualifications for customer representative’s license. 626.7352 - Customer representative’s office. 626.7353 - Appointment of customer representatives. 626.7354 - Customer representative’s powers; agent’s or agency’s responsibility. 626.741 - Nonresident agents; licensing and restrictions. 626.742 - Nonresident agents; service of process. 626.743 - Nonresident agents; retaliatory provision. 626.744 - Service representatives; application for license. 626.745 - Service representatives, managing general agents; managers; activities."
  • " 626.7451 - Managing general agents; required contract provisions. 626.7452 - Managing general agents; examination authority. 626.7453 - Managing general agents; errors and omissions insurance. 626.7454 - Managing general agents; duties of insurers. 626.7455 - Managing general agent; responsibility of insurer. 626.748 - Agent’s records. 626.749 - Place of business in residence. 626.7491 - Business transacted with producer controlled property and casualty insurer. 626.7492 - Reinsurance intermediaries. 626.752 - Exchange of business. 626.753 - Sharing commissions; penalty. 626.754 - Rights of agent following termination of appointment."

2019 Florida Statutes :: Title XXXVII - Insurance :: Chapter 626 - Insurance Field Representatives and Operations :: Part II - General Lines Agents (Ss. 626.726-626.754) :: 626.733 - Agency firms and corporations; special requirements.

law.justia.com
Quotes
  • "2019 Florida Statutes Title XXXVII - Insurance Chapter 626 - Insurance Field Representatives and Operations Part II - General Lines Agents (Ss. 626.726-626.754) 626.733 - Agency firms and corporations; special requirements."
  • "Universal Citation: FL Stat § 626.733 (2019) 626.733 Agency firms and corporations; special requirements.—If a sole proprietorship, partnership, corporation, or association holds an agency contract, all members thereof who solicit, negotiate, or effect insurance contracts, and all officers and stockholders of the corporation who solicit, negotiate, or effect insurance contracts, must qualify and be licensed individually as agents or customer representatives, and all of such agents must be individually appointed as to each property and casualty insurer entering into an agency contract with such agency. Each appointing insurer shall comply with this section and shall determine and require that each agent so associated with such agency is likewise appointed as to the same such insurer and for the same type and class of license. However, an insurer is not required to comply with the appointment provisions of this section for an agent within an agency who does not solicit, negotiate, or effect insurance contracts for that insurer."

2019 Florida Statutes :: Title XXXVII - Insurance :: Chapter 624 - Insurance Code: Administration and General Provisions :: Part III - Authorization of Insurers and General Requirements (Ss. 624.401-624.490) :: 624.407 - Surplus required; new insurers.

law.justia.com
Quotes
  • "2019 Florida Statutes Title XXXVII - Insurance Chapter 624 - Insurance Code: Administration and General Provisions Part III - Authorization of Insurers and General Requirements (Ss. 624.401-624.490) 624.407 - Surplus required; new insurers"
  • "Universal Citation: FL Stat § 624.407 (2019) 624.407 Surplus required; new insurers.— (1) To receive authority to transact any one kind or combinations of kinds of insurance, as defined in part V of this chapter, an insurer applying for its original certificate of authority in this state shall possess surplus as to policyholders at least the greater of: (a) For a property and casualty insurer, $5 million, or $2.5 million for any other insurer; (b) For life insurers, 4 percent of the insurer’s total liabilities; (c) For life and health insurers, 4 percent of the insurer’s total liabilities, plus 6 percent of the insurer’s liabilities relative to health insurance; (d) For all insurers other than life insurers and life and health insurers, 10 percent of the insurer’s total liabilities; (e) Notwithstanding paragraph (a) or paragraph (d), for a domestic insurer that transacts residential property insurance and is:"
  • "1. Not a wholly owned subsidiary of an insurer domiciled in any other state, $15 million. 2. A wholly owned subsidiary of an insurer domiciled in any other state, $50 million; (f) Notwithstanding paragraphs (a), (d), and (e), for a domestic insurer that only transacts limited sinkhole coverage insurance for personal lines residential property pursuant to s. 627.7151, $7.5 million; or (g) Notwithstanding paragraphs (a), (d), and (e), for an insurer that only transacts residential property insurance in the form of renter’s insurance, tenant’s coverage, cooperative unit owner insurance, or any combination thereof, $10 million. (2) Notwithstanding subsection (1), a new insurer may not be required to have surplus as to policyholders greater than $100 million. (3) The requirements of this section shall be based upon all the kinds of insurance actually transacted or to be transacted by the insurer in any and all areas in which it operates, whether or not only a portion of such kinds of insurance are transacted in this state. (4) As to surplus as to policyholders required for qualification to transact one or more kinds of insurance, domestic mutual insurers are governed by chapter 628, and domestic reciprocal insurers are governed by chapter 629. (5) For the purposes of this section, liabilities do not include liabilities required under s. 625.041(5). For purposes of computing minimum surplus as to policyholders pursuant to s. 625.305(1), liabilities include liabilities required under s. 625.041(5). History.—s. 51, ch. 59-205; s. 1, ch. 63-29; s. 1, ch. 67-235; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 43, 64, 809(1st), ch. 82-243; s. 2, ch. 85-245; s. 25, ch. 89-360; ss. 15, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 5, ch. 93-410; s. 11, ch. 2007-1; s. 4, ch. 2007-90; s. 5, ch. 2011-39; s. 3, ch. 2014-112; s. 3, ch. 2014-132; s. 1, ch. 2016-197; s. 5, ch. 2017-132."

2016 Florida Statutes :: TITLE XXXVII - INSURANCE :: Chapter 624 - INSURANCE CODE: ADMINISTRATION AND GENERAL PROVISIONS :: Part III - AUTHORIZATION OF INSURERS AND GENERALREQUIREMENTS (ss. 624.401-624.489) :: 624.425 - Agent countersignature required, property, casualty, surety insurance.

law.justia.com
Quotes
  • "Universal Citation: FL Stat § 624.425 (2016) 624.425 Agent countersignature required, property, casualty, surety insurance.— (1) Except as stated in s. 624.426, no authorized property, casualty, or surety insurer shall assume direct liability as to a subject of insurance resident, located, or to be performed in this state unless the policy or contract of insurance is issued by or through, and is countersigned by, an agent who is regularly commissioned and licensed currently as an agent and appointed as an agent for the insurer under this code. If two or more authorized insurers issue a single policy of insurance against legal liability for loss or damage to person or property caused by the nuclear energy hazard, or a single policy insuring against loss or damage to property by radioactive contamination, whether or not also insuring against one or more other perils proper to insure against in this state, such policy if otherwise lawful may be countersigned on behalf of all of the insurers by a licensed and appointed agent of any insurer appearing thereon. The producing agent shall receive on each policy or contract the full and usual commission allowed and paid by the insurer to its agents on business written or transacted by them for the insurer."
  • "(2) If any subject of insurance referred to in subsection (1) is insured under a policy, or contract, or certificate of renewal or continuation thereof, issued in another state and covering also property and risks outside this state, a certificate evidencing such insurance as to subjects located, resident, or to be performed in this state, shall be issued by or through and shall be countersigned by the insurer’s commissioned and appointed producing agent."
f

Important Distinctions Between Suretyship and Insurance

forcon.com
Publication Year: 2011
Quotes
  • "As the United States Supreme Court succinctly stated, “suretyship is not insurance.”1 Rather, suretyship is a “contractual relation resulting from an agreement whereby one person, the surety, engages to be answerable for the debt, default, or miscarriage of another, the principal."2 Thus, “[s]uretyship is a form of credit enhancement and is not ‘insurance.’”3"
  • "3. 4A Philip L. Bruner & Patrice J. O’Connor, Bruner & O’Connor on Construction Law § 12.9 (2011); accord David W. Slaughter, Ch. 1, Introduction to the Surety’s Rights as the Foundation for the Indemnity Agreement, in The Surety’s Indemnity Agreement: Law and Practice 1, 4-5 (Marilyn Klinger, George J. Bachrach & Tracey L Haley, eds., 2d ed. 2008)(surety bond is not like an insurance policy which “afford[s] protection against accidental and generally foreseeable losses caused by a calamitous or catastrophic event….”). "
  • "A surety bond, unlike an insurance policy, is a tripartite agreement among the surety, the principal and the obligee.4 Under this arrangement, the surety and principal are liable to the obligee; but, as between the surety and the principal, the surety is secondarily liable and the principal retains the primary obligation to perform the contract.5 In addition, a principal owes a common law duty to exonerate its surety.6 If the surety is required to perform, it has a right of indemnity from the principal who thus ultimately bears the loss. "
  • "In the insurance context, upon assertion of a third-party claim against a policy, an insurer has a fiduciary obligation to protect its insured from a judgment exceeding the policy limits.7 This fiduciary obligation arises because an insurance policy requires that the insured surrender to the insurer control over settlement of the claim. "
  • "In contrast, a surety does not undertake such a fiduciary duty to either the obligee or the principal when it issues a performance bond.8 A surety’s refusal to settle a claim within its penal sum does not alter the rights of the parties to the tripartite surety arrangement in the way it impacts an insured on an insurance policy, i.e., potentially exposing that insured to damages not covered by the policy. "
n

What are Surety Companies? - National Association of Surety Bond Producers

nasbp.org
Publication Year: 2020
Quotes
  • "What Are Surety Companies? Most surety bonds in the United States are written by subsidiaries or divisions of insurance companies regularly engaged in the business of acting as a surety. Surety companies typically are authorized and qualified to do business by the state insurance commissioner where they are domiciled and in the jurisdiction where the bond is issued. The state departments of insurance regulate surety companies, which must meet minimum capital requirements, file periodic financial reports in those jurisdictions where they are authorized to do business, and are subject to market conduct investigations, among other regulatory requirements and actions."
  • "Both surety bonds and traditional insurance policies, such as property insurance, are risk transfer mechanisms regulated by state insurance departments. However, traditional insurance is a two-party agreement designed to compensate the insured against unforeseen adverse events. The policy premium is actuarially determined based on aggregate premiums earned versus expected losses. Surety companies operate on a different business model. Surety bonds are three-party agreements designed to prevent a loss. The surety does not “assume” the primary obligation but is secondarily liable, if the principal defaults on its bonded obligation."
  • "The surety views its underwriting as a form of credit, much like a lending arrangement. For contract surety, for instance, the surety will examine in-depth the contractor’s credit history and financial strength, experience, equipment, work in progress, management capacity, and character. After the surety assesses such factors, it makes a determination as to the appropriateness and the amount, if any, of surety credit."
  • "Thus, if the surety extends surety credit to a contractor, the surety does not expect to suffer losses because the surety expects the bonded contractor to perform its obligations successfully AND the surety has a signed indemnity agreement from the contractor to protect it from any losses. The general agreement of indemnity, or GIA, is a contract between a surety company and a contractor. The GIA is a powerful legal document that obligates the named indemnitors to protect the surety from any loss or expense the surety suffers as a result of having issued bonds on behalf of the bonded principal. A surety company almost always requires that the principal, the individuals who own and/or control the company, their spouses, and often affiliated companies to sign the GIA before it will issue bonds on behalf of the contractor."

Insurance Representative Fees

myfloridacfo.com
Quotes
  • "Payment Methods & Fees All fees are nonrefundable, per 215.322(3)(b), 624.501, 626.171(5), and 626.331(4), F.S. Credit Cards: We currently accept credit cards from: VISA, MasterCard, American Express, and Discover for applications for licensure; MasterCard, American Express, and Discover for appointments; and VISA, MasterCard, American Express, and Discover for education course providers; VISA, MasterCard, American Express, and Discover for continuing education fines ($250 invoice payments)."
  • "eCheck: We only accept eCheck payments for appointments. If paying by eCheck, you should find out if your financial institution requires an ACH ID number before allowing an eCheck transaction. If your financial institution requires an ACH ID number, provide them with the following: ACH ID number: Z596001874 ACH ID description: DES/PPD/TEL/WEB or SETT-STFLDFSE3 After providing the ACH ID numbers to your financial institution you will not be required to provide them for future payments made with us. Failure to provide the required ACH ID numbers may result in rejection of payment by your financial institution. If your payment is rejected you will be assessed a service fee of 5% of the face value of the amount, with a minimum of $15, not to exceed $150."
  • "License Application Paid during application process $50.00* EXCEPTION: Title Agent/Agency $10.00"
  • "License ID Paid during application process $5.00 Fingerprint Paid to the fingerprinting vendor $48.05* COST BREAKDOWN: $24.00 - FDLE Fee $13.25 - FBI Fee $10.80* - Idemia Identity & Security USA Fee *Local Florida county sales tax may apply."
  • "State Exam Paid to the examination vendor $44.00 - as of October 1, 2018 Appointments Paid through eAppoint RESIDENTS: $60.00 NONRESIDENTS: $60.00* *Additional per/county $6.00 fee must be paid for every county in which a nonresident agent intends to physically transact insurance. *Nonresident Adjusters do not pay a county fee. EXCEPTIONS: Bail Bonds/Surety Agents - (Not submitted through eappoint. A check is required when submitting DFS - H2-1544 appointment form) $80.00 Surplus Lines $150.00 Military Registration (Life Insurance) $20.00"
  • "LATE FEES FOR APPOINTMENTS: Original/Initial $250.00 per appointment Renewal $25.00 per appointment Temporary Appointments Paid through eAppoint VALID FOR 4 MONTHS: Resident Surplus Lines $20.00 VALID FOR 6 MONTHS: Resident Debit Collection Life Agent $30.00 Resident Life & Variable Annuity $30.00 Resident General Lines $30.00 Resident Personal Lines $30.00 Non-Resident Personal Lines $30.00"
  • "VALID FOR 18 MONTHS: Limited Surety/Bail Bond - (Not submitted through eAppoint. A check is required when submitting DFS - H2-1544 appointment form to the address on the form) $90.00 Continuing Education Paid through MyProfile Continuing Education Fine - (Available for payment after the department receives the signed settlement stipulation and after the consent order/invoice is posted to licensee's MyProfile account) $250.00"

Statutes & Constitution :View Statutes : Online Sunshine

leg.state.fl.us
Publication Year: 2020
Quotes
  • "Long list of fees for insurance agents to pay, depending on circumstances."

Statutes & Constitution :View Statutes : Online Sunshine

leg.state.fl.us
Publication Year: 2020
Quotes
  • "Title XXXVII INSURANCE Chapter 627 INSURANCE RATES AND CONTRACTS View Entire Chapter 627.754 Sureties upon official bonds.— (1) An authorized surety insurer having policyholder surplus of not less than $1 million shall, upon proper proof thereof and production of evidence of solvency, be acceptable as surety upon the bonds of all city, county, and state officers. (2) The various officers of this state whose duty it is to approve the sureties upon bonds may accept such an insurer as one of the sureties, or as the only surety, upon such bond as the solvency of the insurer may warrant. (3) No insurer shall be relieved of its liability upon any bond by reason of the fact that the books and accounts of the principal have been examined and approved as correct by the proper authorities when in fact there has been a breach of the bond and a loss accruing from the breac"