69B-222.020. Definitions

For purposes of this rule chapter the following definitions shall apply.

(1) “Giving a quote” refers to the basic tasks of obtaining certain basic underwriting answers from the inquirer, and then consulting written underwriting materials that state the rate. Giving a quote does not involve application of judgment, processing, binding, policy interpretation, signing an application, procedure explanation, or insurance advice and counsel, or similar activity.

(2) “Incidental” means:

(a) Conduct by insurance agency personnel qualifies as “incidental” only if it meets the following three criteria:

1. All the work done under the “incidental” exception, in terms of the amount of time the unlicensed employee spends doing it, is 10% or less of the employee’s time compared to time spent on other tasks;

2. The exact amount and timing of the work is unpredictable; and,

3. On an agency-wide aggregate level, all the work done by unlicensed employees under the “incidental” exception is 10% or less of such work as compared to the amount of such work done by agents, solicitors, and customer representatives in that office.

(b) Absent evidence of abuse of the “incidental” exception, the Department will evaluate “incidental” by looking at the operation of the agency over a 6 to 12 month period. For example, if it were shown that over the course of a year an agent’s receptionist spent just 20 minutes a day doing work under the incidental exception, except that for four weeks during the year while the agent was hospitalized or on vacation the receptionist spent almost full-time taking applications and giving quotes, then this activity would still qualify as “incidental.” Note that an agent’s illness or vacation does not expand the types of activities unlicensed staff may conduct.

(3) “Taking an application” means filling in the blanks on an application form in response to information provided by the applicant, and then passing the application to an agent or customer representative for further application of judgment, processing, binding, policy interpretation, procedure explanation, or insurance advice and counsel, or similar activity. Taking an application does not include application of judgment, processing, binding, policy interpretation, signing an application, procedure explanation, or insurance advice and counsel, or similar activity.

Rulemaking Authority 624.308 FS. Law Implemented 624.307(1), 626.0428, 626.112 FS. History–New 10-12-93, Formerly 4-222.020.