2044 Chapter 15 & 16 Florida Statutes

Key Figures and Entities

• Jimmy Patronis serves as Florida's Chief Financial Officer, overseeing financial regulations and consumer protection.
• The Financial Services Commission includes the Governor, Attorney General, Commissioner of Agriculture, and the Chief Financial Officer.

Divisions and Their Functions

• Division of Consumer Services: Advocates for consumers seeking assistance and resolving issues.
• Division of Consumer Finance: Licenses and regulates financial service industries, excluding deposit-holding entities.
• Division of Financial Institutions: Ensures state-chartered financial institutions comply with safety and financial standards.
• Division of Securities: Regulates securities transactions within Florida, ensuring compliance with state law.
• Bureau of Financial Investigations: Conducts criminal investigations relating to financial regulation.

Insurance Company Types

• Admitted Company: Licensed to do business in Florida, meeting state requirements.
• Non-admitted Insurer: Not licensed to operate in Florida but able to provide surplus lines.
• Domestic Insurance Company: Chartered in Florida and operates primarily there.
• Foreign Insurance Company: Chartered in a different state but conducts business in Florida.
• Alien Insurance Company: Incorporated outside the United States, unrestricted by state boundaries.

Insurance Licenses and Regulations

• 20-44 License: For Personal Lines; allows agents to transact auto, homeowners, and marine insurance.
• 4-40 License: A Customer Service Representative License.
• 2-20 General Lines Agent: Authorizes agents to solicit insurance in various sectors, including property, casualty, and health.

Insurance Agent Practices

• Controlled Business: Refers to insurance sold to entities where the agent has financial interest.
• Appointment: Authority to transact insurance, valid for 24 months.
• Unaffiliated Insurance Agent: Independent consultant practicing without employer affiliation.

Continuing Education Requirements

• Licensed for less than six years: Requires a 5-hour update course plus 19 elective hours every two years.
• Licensed for over six years: Requires a 5-hour update course plus 15 elective hours every two years.

Miscellaneous Regulations

• Transfer of Insurance: Must be completed within 90 days of relocating to a new state.
• Retention of Policy Files: Agents must maintain client records for five years.
• False Statements: Making knowingly false entries can lead to penalties or criminal charges.

Ethical Violations

• Defamation: False statements made to harm a business or individual.
• False Statements: Deliberate misrepresentation of material facts.
• Boycott, Coercion, and Intimidation: Agreements leading to unreasonable restraints in the insurance business.
• Unlawful Rebates: Offering incentives in exchange for policy sales is considered unethical.

Insurance Fraud Types

• Churning: Using existing policy values to buy new policies with the same insurer for undue commission.
• Twisting: Misrepresenting policies to persuade clients to switch insurers.
• Sliding: Adding supplemental coverage without client consent or knowledge.

Insurance Market Protections

• Florida Insurance Guaranty Fund: Provides support for unpaid claims and unearned premiums from insolvent insurers.
• Risk Retention Group: Collective insurance entities that share liability risks among members.

Consequences of Misconduct

• Lying on insurance applications can result in a third-degree felony charge.
• Reports of fraud or fiduciary breaches must be submitted to the Department of Financial Services within 30 days.

Professional Employer Organizations (PEOs)

• Companies that manage HR functions and assume employer liabilities through contractual agreements.

Test your knowledge of Florida's Chief Financial Officer and the responsibilities outlined in Chapters 15 and 16 of the Florida Statutes. This quiz includes important terms and definitions related to unlicensed entities and consumer services in Florida.