Florida Department of Financial Services re Statutory Requirement for Licensure or Registration of Insurance Agencies 05/12/06

Memorandum

To: Florida Insurance Agents

From: Florida Department of Financial Services, Bureau of Licensing

Date: May 11, 2006

Subject: Requirement to Hold an Insurance Agency License or Registration

In 2005 the Florida legislature enacted a law that requires all insurance agencies conducting business in Florida to be Licensed or Registered with the Florida Department of Financial Services by October 1, 2006. As a licensee, you may own your own agency, or you may work for someone who does. If you are the owner of an insurance agency, please visit the Department’s website at http://www.fldfs.com/Agents/ for a list of Frequently Asked Questions, a PowerPoint presentation as well as a comprehensive analysis of this legislation. The online application is available on the same web page by selecting “Apply for License.” Below are some highlights of the law for agency Licensure and Registration.

� All insurance agencies conducting business in Florida must apply for Licensure or Registration prior to October 1, 2006.

� There is no fee for Licensure or Registration. However, a fine may be assessed for failure to timely apply.

� Agencies are eligible for Registration if they were in business prior to January 1, 2003, AND are one of the following:

� Entirely owned by licensed and appointed insurance agents

� Publicly traded on a stock exchange

� Primary function is offering insurance as a service or member benefit to members of a nonprofit organization.

� All other agencies must apply for Licensure

� Every location must have a licensed and appointed agent in full-time charge of that agency. An agent may not be the Agent In Charge of multiple agencies. The application will require you to identify the Agent In Charge of each location.