69O-136.017. Authorization to Transact Insurance; When Required

(1) No insurer shall issue insurance policies or otherwise transact insurance, as that term is defined in section 624.10, F.S., involving risks resident or located in this state unless the insurer has a current certificate of authority issued by the Office.

(2) No insurer shall from offices or by personnel or facilities located in this state solicit insurance applications or otherwise transact insurance in another state or country unless it holds a current certificate of authority issued by the Office authorizing it to transact the same kind or kinds of insurance in this state.

(3) A current certificate of authority issued by the Office is not required under certain specific circumstances. These circumstances are as follows:

(a) A current Florida certificate of authority is not required if the activities of the unauthorized insurer involve only the investigation, settlement, or litigation of claims under policies previously lawfully written in this state, or only the liquidation of the assets and liabilities of the insurer which are the result of previously authorized operations in this state. This exception to the requirement shall not be construed to include the collection of premiums or the renewal of policies.

(b) A current Florida certificate of authority is not required to service a policy within the state, subsequent to the lawful issuance of the policy, so long as the subject of the policy of insurance was not resident, located, or expressly to be performed in this state at the time of issuance, and so long as the policy of insurance was lawfully solicited, written, or delivered outside of this state. The Office interprets section 624.402(2), F.S., to mean that an unauthorized insurer may utilize personnel or facilities located in this state to transact insurance in other states or in foreign countries, provided that all such activities occur subsequent to and do not pertain to the issuance or effectuation of the insurance coverage.

(c) A current Florida certificate of authority is not required to engage in transactions pursuant to surplus lines coverage lawfully written under part VIII of chapter 626, F.S., so long as the insurer is an eligible surplus lines insurer under sections 626.917 or 626.918, F.S. The Office interprets section 626.918(2)(b), F.S., to mean that an unauthorized insurer cannot meet the requirements to be an eligible surplus lines insurer unless the unauthorized insurer has offices in and transacts insurance in its state or country of domicile. A surplus lines insurer eligible pursuant to section 626.918, F.S., is not prohibited by this rule from utilizing offices or personnel in this state to transact insurance in another jurisdiction, provided it is licensed as a surplus lines or authorized insurer in that jurisdiction.

(d) A current Florida certificate of authority is not required to transact the business of reinsurance, so long as such reinsurance is transacted as authorized under section 624.610, F.S.

(e) A current Florida certificate of authority is not required when an insurer has withdrawn from and is not transacting any new insurance in this state, but is solely continuing in force and continuing to service life insurance or health insurance policies or annuity contracts which remain in force and which insure residents of this state.

(f) A current Florida certificate of authority is not required when an unauthorized foreign insurer invests its funds in real estate in this state or in securities secured thereby, if the foreign insurer complies with the laws of this state relating generally to foreign business corporations.

(4) For purposes of this rule and section 624.402(2), F.S., the issuance of an insurance policy includes any of the following acts:

(a) Solicitation of prospective insureds. For purposes of this rule, solicitation means face-to-face communications, or intra- or inter-state transmission of written, electronic, or telephonic communications from an unauthorized insurer or its agent to a prospective insured, for the purpose of generating a response or inquiry or which incidentally includes mention of matters of insurance.

(b) Transmitting applications to prospective insureds. For purposes of this rule, transmitting applications means face-to-face communications, or intra- or inter-state transmission of written, electronic, or telephonic communications from an unauthorized insurer or its agent to prospective insureds, for the purpose of consummating a contract of insurance or a relationship which may lead to a contract of insurance.

(c) Receiving applications from or on behalf of prospective insureds. For purposes of this rule, receiving applications means face-to-face communications, or intra- or inter-state transmission of written, electronic, or telephonic communications to an unauthorized insurer or its agent for use by the unauthorized insurer as a basis to determine the eligibility or insurability of prospective insureds or risks.

(d) Underwriting to determine insurability of a risk. For purposes of this rule, underwriting means face-to-face communications, or intra- or inter-state transmission of written, electronic, or telephonic communications from prospective insureds or risks for use by the unauthorized insurer as a basis to determine the eligibility or insurability of prospective insureds or risks.

(e) Analysis of insurance applications, questionnaires, or materials prepared by or concerning prospective insureds or risks to determine the eligibility, insurability, or underwriting in any fashion of prospective insureds or risks.

(f) Receiving initial premium payments from or on behalf of insureds.

(g) Mailing or otherwise transmitting a policy or any other evidence of coverage, as described in subsection (5), below, to an insured, to a policyholder, or to any other person.

(5) For purposes of this rule and section 624.402(2), F.S., the effectuation of an insurance policy means the issuance of an oral or written agreement called an insurance contract, an insurance policy, a certificate of insurance, an insurance binder or cover note, a summary plan description or trust document; or any letter or other communication confirming insurance coverage; or an insurance identification card or other proof of insurance intended to demonstrate insurance coverage to a third party; or any similar document, by whatever name called, which evidences or is intended to evidence insurance coverage. For purposes of this rule, the issuance of any of the documents described in the preceding sentence constitutes the effectuation of insurance when such issuance occurs after face-to-face communications, or intra- or inter-state transmission of written, oral, electronic or telephonic communications from an unauthorized insurer or its agent consummating an insurance contract. Effectuation of an insurance contract is also evidenced by the receipt by an unauthorized insurer or its agent of any monies intended by the prospective insured or third party to serve as premium payment or consideration for an insurance contract.

(6) Any person conducting insurance-related activities in this state, whether or not required to be licensed under the provisions of this rule chapter, shall be subject to the provisions of the Unfair Insurance Trade Practices Act (part IX of chapter 626, F.S.), regardless of the situs or residence of the risk insured.

Rulemaking Authority 624.308 FS. Law Implemented 624.09, 624.10, 624.307(1), 624.401, 624.402, 626.901, 626.917, 626.918, 626.9511, 626.9521, 627.402, 627.420 FS. History–New 12-12-95, Formerly 4-136.017.