By: Jason L. Perez
Department Authorized Insurance Education Provider
⭐️⭐️⭐️⭐️⭐️ | The Insurance School .com
Florida Insurance Pre-Licensing Course
Episode Five (d)
NON-Resident Licensing, Recordkeeping & Consumer Protections
iLaw Episode FIVE (d)
NON-Resident Licensing, Recordkeeping & Consumer Protections
Florida | CFO / DFS Regulatory Authority
– DFS.(L)IB1 [624.307] Authority to PUBLISH Information to Floridians.
– Obtaining Non-Resident Insurance Licensee Authorization
– [ Define ] Domestic, Foreign & Alien Insurers
– Notifying DFS of permanent In-State (OR) Out-of-State address changes.
– [ Identify ] Licensee Recordkeeping Requirements
– Lawsuits against Insurers
Elements of an Insurance Contract
– [ Define ] Unilateral Contract
– [ Define ] Contract of Adhesion
– [ Define ] Aleatory Contracts
– [ Define ] Conditional Contracts
– Who oversees the daily activities of insurers?
– What is the Financial Services Commission
– Who is the Commission comprised of?
– [ Identify ] Office of Insurance Regulations responsibilities?
– Limitations when suing an insurer
® Once licensed (Domestically) in Florida, licensees can obtain a (Foreign) Non-Resident Licensee from RECIPROCATING states.
ü When a Florida licensee obtains Non-Resident Authorization from a reciprocating foreign state, they’re only required to satisfy Florida’s Continuing Education requirements.
® When a licensee Authorized in Florida MOVES to another state, they have 90-Days to change their Florida Resident Authorization status to Non-Resident status. If a licensee DOES NOT comply, the DFS will terminate all active appointments.
® [ Note ] When a licensee moves within Florida, they must notify the DFS within 30-Days of the move. In fact, whenever any aspect of your personal contact information changes, the DFS must be notified.
When consumers enter contracts with insurers, ONLY the insurer makes enforceable promises. Consumers DO NOT make legally binding statements (OR) enforceable promises on the policy application. The information consumers place on insurance policy contracts are considered REPRESENTATIONS… which ARE NOT guaranteed to be 100% accurate.
Insurers provide an AMAZING service. They’re also undeniably in control of the entire relationship. Consumers aren’t given an opportunity to negotiate terms. Policies are OFFERED to us on a “Take it (OR) Leave it” basis. To make matters worse, when contract disputes arise, consumers don’t have the financial resources to fight large corporations in court.
Insurers make all the rules however, they also make binding promises. These lopsided relationships are why the CFO is the RECEIVER of ALL Lawsuits against insurers in Florida. The Chief Financial Officer position is a Consumer Protection – Floridians receive help… NOT CORPORATIONS. The CFO & his DFS protect consumers from unfair insurance & banking practices.
When a policyowners aren’t satisfied, their insurer will be answering to CFO (OR) the APPOINTED Commissioner of Insurance Regulations. While the CFO & Department are focused on consumers, the Office of Insurance Regulations and Commissioner are overseeing Insurers. Up to now, 100% of our insurance law discussions have been focused on the CFO and his Department of Financial Services. This is the FIRST Official mention of someone else relevant to insurance other than the CFO.
With Aleatory contracts, the amounts exchanged between the parties isn’t equal. Let’s imagine a person who purchased a one-million-dollar life insurance policy. They have it for 3-days when, BOOM – they die in a car accident. Their insurer is responsible for paying a ONE MILLION Dollar death benefit despite only collecting one premium payment.
On flip side, we could have a policyowner with a 10, 20 (OR) 30-Year Term Life policy. Term is short for TEMPORARY. These Term Life policies only provide a death benefit during the identified period of coverage. If the policyowner outlives the term of coverage, the policy expires without paying a benefit.
In the 1st example, it was the insurer who lost. They paid a One-Million Dollar death benefit despite only receiving one small premium payment. In our second example, it was the policy owner who lost. They paid a premium to protect themselves against something that never (thankfully) occurred.
Insurance Careers Start Here
Neil Schwabe, M.G.A. LUTCF
Sarah Insure, Independent Broker
