Advocacy Committee Chairman
Following the advocacy efforts of FPA of Florida, on Friday June 13th
Governor Rick Scott signed into law HB 633. The bill creates
a new type of insurance agent, an unaffiliated insurance agent, to
allow an agent who is not appointed by an insurance company to
maintain his or her license.
The new unaffiliated insurance agent will
close a gap that previously existed in Florida's statutes, and
enable certain financial planners to provide their clients with
insurance advice without being appointed by an insurance company.
Until recently most individuals engaged in the sale of
insurance - or the rendering of advice on insurance - were required
to be appointed with an insurance carrier in order to obtain or
maintain their insurance license. Bu what if financial
planners only gave advice on insurance and did not sell insurance
products? They would likely not be appointed. For financial
planners that have chosen not to sell insurance products to their
clients, this made it illegal to give them insurance advice.
Going forward these financial planners will
be able to obtain an insurance license by completing the necessary
requirements and "self-appointing". Although they will not be
required to be appointed with an insurance carrier, they will be
required to meet the same standards of professional fitness as
affiliated insurance agents and be subject to the same
administrative charges with penalties. While unaffiliated insurance
agents cannot sell insurance products or receive any form of
compensation for the purchase of insurance from a third party, they
can however offer advice without being affiliated with an insurance
company and receive a fee from their client for services rendered.
Your FPA of Florida has been working hard
with the Department of Financial Services over the past few years to
find a solution to this gap. Fortunately the Agency was able to
introduce language this legislative session that was receptive and
benefits our Florida citizens as well as members of FPA in Florida.
Plans are in the works for the Fall
Tallahassee Trip. The Advocacy team plans to travel to Tallahassee
on October 12th and will be scheduling appointments with Regulators
and Legislators. The team is excited to hold the fall trip in
conjunction with the FPA of FL’s Strategic Planning and Annual
Meeting. More information will be posted.