By: Jason L. Perez
Department Authorized Insurance Education Provider
⭐️⭐️⭐️⭐️⭐️ | The Insurance School .com
Florida Insurance Pre-Licensing Course
Episode Four(a)
CFO | Department of Financial Services – Authority.
iLaw Episode FOUR (a)
CFO | Department of Financial Services – Authority.
DFS | Department of Financial Services
– Floridians, Licensees and Agencies.
In this Episode we’ll discuss…
– #Six Divisions who support the business of insurance.
– #Coercion
– #Authority of DFS Investigators.
– #Investigating out of state insurance crimes.
– #Responsibilities of ELECTED Officials
– #Florida Insurance Brokers Authorization Process
– #Agents (VS) Brokers – Unauthorized Entities
– #[ Contrast ] DFS (VS) OIR Responsibilities
– #Representations (VS) Consumer Fraud
Insurance laws require licensees to properly introduce ourselves at the beginning of ANY insurance focused conversations we initiate. A proper introduction should ALWAYS identify our intent to solicit a policy. These simple guidelines are designed to protect consumers from being cornered into unwanted sales presentations.
Think about the timeshare industry reputation.
® “It’s just a quick tour of the hotel.”
Three (3) hours into a 90-min tour, tourist get testy. Instead of rave reviews about the property, guest leave with bad feeling about their interaction. I’ve been on a timeshare presentation. The resorts are undeniably BEAUTIFUL. I understand the value proposition. Now, ask me if we’ll EVER – EVER go on another timeshare presentation again… NO!
DFS.(L)II1b [626.9541] Unfair Methods of Competition. (26.9.1.2) p. 432,
Timeshare presentations are the definition of HIGH-PRESSURE! These tactics although tolerable in some industries, are [ Defined ] as COERCION when a licensee does it to a consumer. Coercion is a CRIME.
Don’t overlook the background check requirement. If you have a felony in your past, you’re probably not getting a license. If your felony pertained to the mismanagement of funds (OR) FRAUD, you’re not getting a license. Fraud means the person committed the action “with knowledge”. These people could NEVER be deemed trustworthy again. If this sounds like you, this is your stop… “Mmmm, Bye – Bye Now.”
The rest of us Non-Felons LOVE the business of insurance. Once you’ve obtained a license, our next step is to align ourselves with an Insurer Authorized to sell insurance policies to Floridians. Here is where we make our next career decision.
Florida favors Client / BROKER relationships. Brokers appointed with multiple insurers can provide more insight into what’s available in the area. In reference to compliance, all licensees, must adhere to the same sales rules of engagement. We’re all vetted and deemed trustworthy by the DFS. When something doesn’t go as planned, we must answer to the DFS.
Back to obtaining DFS Authorization.
® Step one was to obtain an insurance license.
® STEP TWO is to obtain an Insurer APPOINTMENT.
The appointment process is how insurers give licensees permission to represent their policies. Regardless of if you’re an independent broker (OR) a PRODUCER / Agent for an Insurer, the appointment process is the same.
ü Insurance Company goes BANKRUPT!
[ Define ] Bankrupt as INSOLVENT
® Companies are closely examined by the Office of Insurance Regulation (OIR) to ensure their financial stability. However, if the company is in financial trouble and misrepresents its financial status, policyholders may find that the company will be unable to pay their claims.
§ [Note] OIR | Office of Insurance Regulation AUDITS Domestic Insurers at least ONCE every FIVE (5) Years. When financial deficiencies are discovered, the insurer is referred over the CFO’s Division of Rehabilitation and Liquidation.
ü APPLICANT FRAUD
® A consumer applying for a health insurance policy deliberately withholds information out of fear of being denied coverage.
#(iQ24)
[ Identify ] In Pre-Licensing, this isn’t FRAUD. The statements made on an insurance policy application are deemed REPRESENTATIONS and therefore NOT guaranteed to be true. Consumers should disclose all relevant information however, they are not obligated to accurately disclose anything.
ü UNAUTHORIZED REFERRAL = A laboratory bills a health insurance company for patient’s testing using stolen health insurance information.
ü UNAUTHORIZED AGENT…
® Health insurance agents must be licensed by the Department of Financial Services. An unauthorized agent can defraud or otherwise financially harm an insurance consumer.
As we bring another Episode of iLaw to a close, let’s make sure you know exactly what we’re getting into. Every single keyword and concept we covered comes directly from the Florida’s Department of Financial Services. ALL Authorized Insurance Schools MUST teach from the most current state approved outline. CFO Patronis identifies the laws & guidelines, we explain them.
The problem is most professional courses is, they’re captive to old school textbook style of communicating. Unfortunately, this means instead of repeating IMPORTANT specifically identified concepts, you’ll find a massive amount of NOT TESTED Fluff. When a course typically gets all Shakespearean with a definition (OR), sprinkles in a bunch of legal jargon, we’ll go the other way and visit a CFO Press Release.
Every time we visit My Florida CFO for a Press Release, we’re acknowledging the CFL / DFS’s ability (Responsibility) to freely communicate with Floridians.
In the next several law sections, we continue talking about the CFO’s Department of Financial Services until finally ending up on the Chief Financial Officer’s responsibilities to the Commission. The Florida Financial Services Commission is where the CFO and Florida’s other ELECTED Officials set the industry guidelines pertaining to Insurers and Banks.
Insurance Careers Start Here
Neil Schwabe, M.G.A. LUTCF
Sarah Insure, Independent Broker
