By: Jason L. Perez
Department Authorized Insurance Education Provider
⭐️⭐️⭐️⭐️⭐️ | The Insurance School .com
Florida Insurance Pre-Licensing Course
Episode Five (b)
FAQ | Transacting the Business of Insurance.
iLaw Episode FIVE (b)
FAQ | Transacting the Business of Insurance.
Florida | CFO / DFS Regulatory Authority
– DFS.(L)IB1 [624.307] Authority to PUBLISH Information to Floridians.
– What constitutes conducting the business of insurance?
– Step to Obtaining an Insurance License
– [ Compare ] License Types
– Licensee’s Fiduciary Responsibility
– DFS Licensee Appointment Process
CFO | Department of Financial Services
DFS Division of Insurance Agent & Agency Services
® Telemarketing prospects on behalf of a licensee. Unlicensed employees CAN NOT provide marketing assistance. Only Licensed and AUTHORIZED licensees are permitted to assist consumers.
Solicitation / Marketing to consumers
(OR) Inducement / Enticing consumers to interact.
® Preliminary negotiations are prohibited unless you’re properly licensed with valid APPOINTMENTS from the insurers you’re presenting.
(iQ26)
– Insurer Appointments must be registered with the DFS. Appointment fees cost $60. Industry standard is the appointing entity pays the Appointment Fee. Independent Brokers will typically pay their own appointment fees.
® Effectuation of a contract of insurance. Ok Google… [Define] Effectuation. Basically, they’re saying an un-licensed person CAN NOT help a prospective client complete the insurance policy application.
Insurance policy applications are a vital part of the sales presentation. No aspect of the business of insurance aside from basic administrative work may be performed without first obtaining proper authorization (License & Appointment) from the DFS. It’s in the consumers best interest to only communicate with trustworthy, trained and, authorized licensees.
ONLY Authorized licensees are permitted to assist the public with insurance matters however, a harmless INCIDENTAL interaction could occur. Imagine an insurance agency location. It’s located in a high traffic plaza next to a Walmart. It’s possible for a prospect (OR) client to walk in un-scheduled while all licensees are out to lunch.
Now, let’s say they were there to pick up a quote (OR) pay a premium. Both are considered insurance related activities however… It would be unreasonable to not accept a payment (OR) provide the quote. Since the person wasn’t contacted by the un-licensed employee and enticed to stop in, the interaction is classified as INCIDENTAL – NO VIOLATION. Other than incidental contact, UNAUTHORIZED Entities are forbidden from engaging in insurance related activities.
- 2-14 | Life Insurance & Annuities with Variable contracts
RARELY do I recommend just taking the 2-14 course unless you’re going to work for a company who’s paying for it. At only 30-hours, Life would seem like the easiest license to get but be warned. Life insurance REQUIRES us to understand policies we cover in the health course.
We enhance life insurance policies w/ health insurance services like Accidental Death & Dismemberment, Long-Term Care (AND) accelerated benefits for terminal & critical illness diagnosis.
- 2-40 | Health Insurance license
I’m not insinuating the health only class is easier because, it’s not. This course is 40-Hours long and covers more types of policies than the 2-14 Life license. The upside to taking the Health ONLY course is theirs absolutely NO Life Insurance concepts sneaking into our studies.
The 2-40 Health & 2-14 Life Exams both have = 100 Total Questions. 15 of the 100 questions are called “Pre-Test Questions”. These confidence crushers don’t count against your final score. They’re trying new questions out on you.
If an applicant FAILS, their State Exam…
They have FIVE attempts in a 12-Month period.
Insurance Agents are FIDUCIARIES. The public, our neighbors trust us with their most intimate personal information. During an insurance presentation, we’re diving into your daily life to determine what type of coverage to implement. Insurance policy applications are an initial source of underwriting information. Nearly ALL your personal identifying information INCLUDING any medical disclosures are on these applications.
Pre-Licensing isn’t meant to be easy. It’s how Florida establishes MINIMUM Professional competency standards. Fingerprints and extensive background checks only scan for convictions. Licensees are TRUSTED Liaisons who represent consumers and insurers. Insurers expect the information we collect, to be conveyed EXACTLY as it was received.
If a person has poor ethics, it will show in their sales presentations. Leaving out a disadvantage here and a fee there is misrepresentation. Even if it can’t be proved… a pattern of complaints places someone’s TRUSTWORTHINESS into question.
Insurance Careers Start Here
Neil Schwabe, M.G.A. LUTCF
Sarah Insure, Independent Broker
