Insurance Agency and Agent License Requirements

How does Florida regulate and authorize licenses?   

A “license” to regulate professions and occupations means any permit, registration, certificate, or license issued in Florida. An occupational license is a privilege accorded by the state or its subdivisions to conduct a business at a particular location and is not a property right protected by substantive due process; the denial of such license does not prevent the business owner from pursuing a lawful occupation but merely stops the business from operating at a particular location. Ammons v. Okeechobee County, 710 So. 2d 641 (Fla. 4th DCA 1998).  

On July 1, 2021, the Florida Legislature passed Section 163.211 into law, which prevents any county, municipality, or other political subdivision of Florida from implementing additional licensing requirements for most occupations. Therefore, a prospective applicant only needs to satisfy state statutory requirements. 

Need help receiving, renewing, or defending your license? Schedule your consultation today with a top administrative law and licensing attorney.  

Which laws and regulations apply to Florida insurance agency and agent licenses?  

The Florida Department of Financial Services (DFS) is the state’s primary regulatory body for insurance agency and agent licenses. The DFS’s Division of Agent and Agency Services handles the licensing and regulation of insurance agents, agencies, and other insurance-related entities.  

The principal statutes governing insurance agency and agent licenses are in the Florida Insurance Code (Title XXXVII), which encompasses several chapters detailing various insurance regulation aspects. Chapter 626, titled Insurance Field Representatives and Operations, contains most laws related to insurance agents and agencies. It establishes insurance agent and agency licensing requirements, examination procedures, appointment processes, and disciplinary actions. Another relevant chapter, Chapter 648, focuses on regulating insurance agencies, including registration, licensing, and administrative penalties.  

The DFS also issues administrative rules to provide further guidance and interpretation of the statutes. For example, Florida Admin Code Chapter 69B notably includes insurance agencies’ and representatives’ licensing and renewal requirements.  

What are Florida’s application and retention requirements for insurance agency and agent licenses? 

Application Requirements:

Applicants must meet specific criteria outlined in the Florida Insurance Code and the corresponding administrative rules to obtain an insurance agent or agency license in Florida. For individual agents, the requirements include being at least 18 years old, having good character, passing a written examination, and completing an application that includes a fingerprint background check.  

Insurance agencies must meet additional requirements to obtain a license. These include registering the agency with the DFS, having a designated primary agent responsible for supervising the agency’s operations, and getting appropriate insurance coverage. 

Retention Requirements:

To retain their licenses, insurance agents and agencies must comply with ongoing requirements, such as continuing education, maintaining good moral character, and adhering to ethical standards. For example, individual agents must complete 24 hours of continuing education courses every two years. Insurance agencies must also maintain proper records, report any changes to their business structure or operations to the DFS, and renew their licenses every two years by paying a renewal fee.  

Furthermore, insurance agents and agencies must adhere to the ethical standards outlined in the Florida Insurance Code, such as avoiding conflicts of interest and engaging in fair business practices. Violations of these standards may result in disciplinary actions, including fines, license suspension, or revocation. Compliance with these ongoing requirements ensures that agents and agencies maintain high ethical standards and continue to serve the best interests of their clients and the general public. 

To determine whether you meet the requirements for an insurance agency or agent license, please contact our office to set up your initial consultation. 

Can the DFS’s license decision be appealed?  

Yes, an adverse license decision made by the DFS is appealable. The authority for appealing such decisions comes from the Florida Administrative Procedure Act (APA), Chapter 120 of the Florida Statutes. Specifically, the right to appeal derives from Florida Statutes §120.569 and §120.57. The APA establishes the framework for challenging agency actions, such as licensing decisions, through administrative hearings and judicial review.  

If an applicant or licensee receives an adverse decision from the DFS, they may request an administrative hearing to challenge it. The request for a hearing must be submitted within the timeframe specified in the agency’s notice, which is generally 15 days from the date of the notice, as provided in Section 120.569(2)(a), Florida Statutes. 

The administrative hearing process commences with submitting a petition for a hearing to the agency. The petition must comply with the requirements outlined in Rule 28-106.201, Florida Administrative Code. If the petitioner qualifies for an administrative hearing, the case is referred to the Division of Administrative Hearings (DOAH) and assigned to an administrative law judge (ALJ). 

The ALJ conducts the hearing, like a trial, with both parties presenting evidence and testimony. After the hearing, the ALJ issues a recommended order, which includes findings of fact, conclusions of law, and a recommendation for a final decision. The DFS then reviews the recommended order and issues a final order, either adopting, modifying, or rejecting the ALJ’s recommendations. 

Suppose the petitioner is unsatisfied with the DFS’s final order. In that case, they can seek judicial review by filing a notice of appeal with the appropriate District Court of Appeal, as provided in Section 120.68, Florida Statutes. The court reviews the case to determine if the agency’s decision follows from competent, substantial evidence and complies with the law. 

Have more questions about a professional licensing-related situation?  

Crucially, this overview of insurance agency and agent licenses does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances. 

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively. 

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant. 

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.