The purpose of the proposed rule development is to update the rules that govern suspension and revocation of licenses of insurance agents, customer representatives, service representatives and adjusters. The rules are updated by adding new ...

DEPARTMENT OF FINANCIAL SERVICES
Division of Insurance Agents and Agency Services

RULE NO: RULE TITLE
69B-231.010: Purpose
69B-231.020: Scope
69B-231.030: Definitions
69B-231.040: Calculating Penalty
69B-231.070: Prosecutorial Discretion
69B-231.080: Penalties for Violation of Section 626.611
69B-231.090: Penalties for Violation of Section 626.621
69B-231.100: Penalties for Violation of Subsection 626.9541(1)
69B-231.110: Penalties for Violation of Other Specific Provisions of the Florida Insurance Code
69B-231.120: Penalties for Violation of Other Insurance Code Provisions
69B-231.130: Penalties for Violation of Department Rules
69B-231.140: Penalties for Violation of Department Orders
69B-231.150: Criminal Proceedings
69B-231.160: Aggravating/Mitigating Factors
PURPOSE AND EFFECT: The purpose of the proposed rule development is to update the rules that govern suspension and revocation of licenses of insurance agents, customer representatives, service representatives and adjusters. The rules are updated by adding new regulations adopted by the Florida Legislature and deleting laws that have been repealed. The rules are also updated by increasing penalties for violating certain laws in order to reflect the Department’s experience in dealing with the frequency and severity of these violations. The purpose of other changes is to clarify the rules.
SUBJECT AREA TO BE ADDRESSED: Guidelines for determining administrative penalties for insurance agents, customer representatives, service representatives and adjusters.
SPECIFIC AUTHORITY: 624.308(1), 626.207(2) FS.
LAW IMPLEMENTED: 624.307(1), 626.308, 626.207(2), 626.611, 626.621, 626.631, 626.641, 626.681, 626.691, 626.9521, 626.9541, 626.9561, 626.9571, 626.9581, FS.
IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE NOTICED IN THE NEXT AVAILABLE FLORIDA ADMINISTRATIVE WEEKLY.
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Serica Johnson at [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Barry Lanier, Chief of the Bureau of Investigations, Division of Agent & Agency Services, Department of Financial Services, 200 E. Gaines Street, 412 Larson Building, Tallahassee, FL 32399-0319, [phone].

THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS:

69B-231 Penalty Guidelines For Insurance Representatives

69B-231.010 Purpose.

The purpose of this rule chapter is to implement the Department’s duty under Sections 624.307(1) and 626.207(2), F.S., to enforce Sections 626.611, 626.621, 626.631, 626.641, 626.681, 626.691, F.S., by establishing standards for penalties described in those statutory sections, and interpreting provisions in those sections as they relate to penalties imposed upon licensees specified in Rule 69B-231.020, F.A.C.

Specific Authority 624.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2), 626.611, 626.621, 626.631, 626.641, 626.681, 626.691, FS.

 

69B-231.020 Scope.

(1) This rule chapter shall apply to all resident and nonresident insurance agents, customer representatives, solicitors, adjusters and service representatives  claims investigators licensed under Chapter 626, F.S., who are subject to discipline under Sections 626.611 and 626.621, F.S.

(2) This rule chapter does not apply to insurance agencies, title insurance agencies, title insurance agents, insurance administrators, surplus lines agents, bail bond agents or managing general agents.

Specific Authority 624.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2), 626.611, 626.621, 626.681, 626.691 FS. History–New 7-13-93, Amended 8-15-00, 9-23-02, Formerly 4-231.020, Amended ________.

 

69B-231.030 Definitions.

The following definitions shall apply for purposes of this rule chapter.

(1) through (3) No change.

(4) “Crimes involving moral turpitude” means each felony crime identified in Rule subsection 69B-211.042(21) (23), F.A.C., and each felony crime not identified in Rule 69B-211.042(21), F.A.C., that is substantially similar to a crime identified in Rule 69B-211.042(21), F.A.C.

(5) through (9) No change.

Specific Authority 624.308, 626.207(2), FS. Law Implemented 624.307(1),624.308, 626.207(2), 626.611, 626.621, 626.681, 626.691, FS. History–New 7-13-93, Amended 9-23-02, Formerly 4-231.030, Amended ________.

 

69B-231.040 Calculating Penalty.

(1) and (2) No change.

(3) Final Penalty.

(a) The final penalty which will be imposed against a licensee under these rules shall be the total penalty, as adjusted to take into consideration any aggravating or mitigating factors; , provided however

(b) Tthe Department may shall convert the total penalty to an administrative fine and probation if the licensee has not previously been subjected to an administrative penalty and the current action does not involve  in the absence of a violation of Section 626.611, F.S.;,  if warranted upon

(c) Tthe Department’s  will consideration of the factors set forth in rule subsection 69B-231.160(1), F.A.C., in determining whether to convert the total penalty to an administrative fine and probation.

(d) In the event that the final penalty would exceed a suspension of twenty-four (24) months, the final penalty shall be revocation.

Specific Authority 624.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2), 626.611, 626.621, 626.641; 626.681, 626.69,1 FS. History–New 7-13-93, Formerly 4-231.040, Amended________.

 

69B-231.070 Prosecutorial Discretion.

(1) No charge.

(2) Stipulated Disposition. The provisions of this rule are not intended and shall not be construed to limit the ability of the Department to informally dispose of disciplinary actions by stipulation, agreed settlement or consent order whether or not the Department has initiated administrative charges.

Specific Authority 624.308, 626.207(2) FS Law Implemented 624.307(1), 624.308, 626.207(2), 626.611, 626.621, 626.681, 626.691, 626.9521, 626.9561, 626.9571, 626.9581 FS. History–New 7-13-93, Formerly 4-231.070, Amended________.

 

69B-231.080 Penalties for Violation of Section 626.611.

If it is found that the licensee has violated any of the following subsections of Section 626.611, F.S., for which compulsory suspension or revocation of license(s) and appointment(s) is required, the following stated penalty shall apply:

(1) Section 626.611(1), F.S. – revocation surrender of license

(2) Section 626.611(2), F.S. –

(a) Suspension 12 months if, had the license application been accurate, the application would have been granted, based on the statutes and Department licensing rules applicable to the application at the time the Department issued the license, and the documentation in the applicant’s file at the time the Department issued the license.

(b) Revocation if, had the license application been accurate, the application would have been denied, based on the statutes and Department licensing rules applicable to the application at the time the Department issued the license.

(3) Section 626.611(3), F.S. – revocation  surrender of license

(4) Section 626.611(4), F.S. – suspension 6 3 months

(5) Section 626.611(5), F.S. – suspension 9 6 months

(6) Section 626.611(6), F.S. – suspension 9 6 months

(7) through (9) No change.

(10) Section 626.611(10), F.S. – suspension 12 9

(11) Section 626.611(11), F.S. – suspension 6 months. This provision does not apply if the facts constitute a violation of section 626.753, F.S.

(12) through (14) No change.

(15) Section 626.611(15), F.S. –suspension 12 3

(16) No change.

Specific Authority 624.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2), 626.611, 626.621, 626.681, 626.691 FS. History–New 7-13-93, Amended 9-23-02, Formerly 4-231.080, Amended ________.

 

69B-231.090 Penalties for Violation of Section 626.621.

If it is found that the licensee has violated any of the following subsections of Section 626.621, F.S., for which suspension or revocation of license(s) and appointment(s) is discretionary, the following stated penalty shall apply:

(1) Section 626.621(1), F.S. – revocation suspension 3 months

(2) through (5) No change.

(6) Section 626.621(6), F.S. – see suspension 6 months or Rule 69B-231.100, F.A.C.

(7) through (11) No change.

(12) Section 626.621(12), F.S. – suspension 6 3 months

Specific Authority 624.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2),  626.611, 626.621, 626.681, 626.691 FS. History–New 7-13-93, Formerly 4-231.090, Amended ________.

 

69B-231.100 Penalties for Violation of Subsection 626.621(6) 626.9541(1).

If a licensee is found to have violated subsection 626.621(6), F.S., by engaging in unfair methods of competition or in unfair or deceptive acts or practices as defined in any of the following paragraphs of subsection 626.9541(1), F.S., the following stated penalty shall apply:

(1) through (4) No change.

(5) Section 626.9541(1)(e), F.S. – suspension 6 months; except that the penalty for a violation of Section 626.9541(1)(e)1. shall be a suspension of 12 months.

(6) through (10) No change.

(11) Section 626.9541(1)(k), F.S. – suspension 9 6 months.

(12) Section 626.9541(1)(l), F.S. – suspension 9 6 months.

(13) Section 626.9541(1)(m), F.S. – suspension 3 2 months.

(14) through (26) No Change.

(27) Section 626.9541(1)(aa), F.S. – suspension 9 months.

(28) Section 626.9541(1)(bb), F.S. – suspension 3 months.

Specific Authority 624.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2),  626.611, 626.621, 626.681, 626.691, 626.9541(1) FS. History–New 7-13-93, Formerly 4-231.100, Amended________.

 

69B-231.110 Penalties for Violation of Other Specific Provisions of the Florida Insurance Code.

If the licensee is found to have violated any of the following provisions of the Insurance Code, the following stated penalty shall apply:

(1) Section 624.318(2)  626.041(2), F.S. – suspension 3 months.

(2) Section 626.051(2), F.S. –suspension 3 months.

(3) Section 626.062(2), F.S. – suspension 3 months.

(4) Section 626.112(2), F.S. – suspension 3 months.

(3) (5) Section 626.342(1), F.S. – suspension 3 months.

(4) (6) Section 626.441, F.S. – suspension 6 months.

(5) Section 626.536, F.S. – administrative fine of $500.

(6) (7) Section 626.541 F.S. – suspension 2 months.

(7) (8) Section 626.551, F.S. – administrative fine of not more than $250 for the first violation; administrative fine of not less than $500 for the second violation; administrative fine of not less than $500 and suspension for 2 months for the third and subsequent violations.

(8) (9) Section 626.561(1), F.S. – suspension 9 months.

(9) (10) Section 626.561(2), F.S. – suspension 3 2 months.

(10) (11) Section 626.572, F.S. – suspension 3 months.

(11) (12) Section 626.591 626.592(1), F.S. – suspension 6 3 months.

(13) Section 626.592(4), F.S. – suspension 6 months.

(14) Section 626.592(5), F.S. – suspension 9 months.

(15) Section 626.592(6), F.S. – suspension 6 months.

(16) Section 626.592(7), F.S. – suspension 3 months.

(12) Section 626.593, F.S. – suspension 3 months.

(13) (17) Section 626.601(2), F.S. – suspension 3 2 months.

(14) (18) Section 626.631(1), F.S. – revocation.

(15) (19) Section 626.641(4), F.S. – revocation.

(16) Section 626.7315, F.S. – suspension 3 months.

(17) (20) Section 626.741(3), F.S. – suspension 3 months.

(18) (21) Section 626.741(4), F.S. – suspension 6 months.

(19) (22) Section 626.747, F.S. – suspension 3 months.

(20) (23) Section 626.748, F.S. – suspension 2 months.

(21) (24) Section 626.752, F.S. – suspension 3 months.

(22) (25) Section 626.753, F.S. – revocation.

(23) Section 626.7845, F.S. – suspension 3 months.

(24) (26) Section 626.792(3), F.S. – suspension 3 months.

(25) (27) Section 626.792(6), F.S. – revocation.

(26) (28) Section 626.793, F.S. – suspension 2 months.

(27) (29) Section 626.794, F.S. – suspension 6 months.

(28) (30) Section 626.798, F.S. – suspension 9 6 months.

(29) Section 626.8305, F.S. – suspension 3 months.

(30) (31) Section 626.835(3), F.S. – suspension 3 months.

(31) (32) Section 626.835(6), F.S. – revocation.

(32) (33) Section 626.837, F.S. – suspension 6 months.

(33) (34) Section 626.8373, F.S. – suspension 6 months.

(34) (35) Section 626.838, F.S. – suspension 6 months.

(35) (36) Section 626.901(1), F.S. – suspension 6 months.

(36) (37) Section 626.901(2), F.S. – suspension 12 months.

(37) Section 627.4554, F.S. – suspension 12 months.

(38) Section 627.901, F.S. – suspension 3 months.

Specific Authority 624.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2), 626.611, 626.621, 626.681, 626.691 FS. History–New 7-13-93, Formerly 4-231.110, Amended________.

 

69B-231.120 Penalties for Violation of Other Insurance Code Provisions.

If the licensee is found to have violated a provision of the Insurance Code, the stated penalty, unless otherwise prescribed in these rules or in the code provision violated, shall be a six (6) month suspension if the violation was willful, or shall be a three (3) month suspension if the violation was nonwillful.

Specific Authority 624.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2), 626.611, 626.621, 626.681, 626.691 FS. History–New 7-13-93, Formerly 4-231.120, Amended________.

 

69B-231.130 Penalties for Violation of Department Rules.

If the licensee is found to have violated a Department rule, the stated penalty, unless otherwise prescribed in these rules or in the specific rule violated, shall be a six (6) month suspension if the violation was willful, or shall be a three (3) month suspension if the violation was nonwillful.

Specific Authority 624.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2), 626.611, 626.621, 626.681, 626.691 FS. History–New 7-13-93, Formerly 4-231.130, Amended________.

 

69B-231.140 Penalties for Violation of Department Orders.

If a licensee is found to have violated a Department order, the stated penalty shall be a six (6) month suspension if the violation was willful, or shall be a three (3) month suspension if the violation was nonwillful, unless the penalty is prescribed in the order itself; except that if a licensee or an affiliated party  transacts insurance in violation of an order of suspension, the penalty shall be revocation of license(s) and appointment(s) if the violation was willful, or shall be an additional suspension of three (3) months if the violation was nonwillful.

Specific Authority 624.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2), 626.611, 626.621, 626.681, 626.691 FS. History–New 7-13-93, Formerly 4-231.140, Amended________.

 

69B-231.150 Criminal Proceedings.

(1) If it is found that a licensee has violated either Section 626.611(14) or 626.621(8), F.S., the following stated penalty shall apply:

(1) (a) If a the licensee is convicted by a court of a violation of the Insurance Code or a felony (regardless of whether or not such felony is related to an insurance license), the penalty shall be immediate revocation.

(2) (b) If a the licensee is not convicted of, but has been found guilty of or has pleaded guilty or nolo contendere to, a felony or a crime punishable by imprisonment of 1 year or more under the law of the United States of America or of any state thereof or under the law of any other country, which is a crime involving involves moral turpitude and is a crime involving breach of trust or dishonesty, the penalty shall be revocation.

(3) (c) If a the licensee is not convicted of, but has been found guilty of or has pleaded guilty or nolo contendere to, a felony or a crime punishable by imprisonment of 1 year or more under the law of the United States of America or of any state thereof or under the law of any other country, which is a crime involving involves moral turpitude or is a crime involving breach of trust or dishonesty, the penalties are as follows:

(a) 1. If the conduct directly relates to activities involving the business of insurance an insurance license, the penalty shall be revocation a 24 month suspension.

(b) 2. If the conduct indirectly relates to the business of insurance or involves dishonesty or breach of trust, such as theft of money or property, or mishandling or misappropriation of money, the penalty shall be a 12 month suspension.

(c) 3. If the conduct is not related to the business of insurance and does not involve dishonesty or breach of trust license, the penalty shall be a 6 month suspension.

(4) (d) If a the licensee is not convicted of, but has been found guilty of or has pleaded guilty or nolo contendere to, a felony or a crime punishable by imprisonment of 1 year or more under the laws of the United States of America or of any state thereof or under the law of any other country, which is not a crime involving does not involve moral turpitude and is not a crime involving breach of trust or dishonesty, the penalties are as follows:

(a) 1. If the conduct directly relates to the business of insurance activities involving an insurance license, the penalty shall be a 24-month suspension.

(b) 2. If the conduct indirectly relates to the business of insurance involves dishonesty or breach of trust such as theft of money or property, or mishandling or misappropriation of money, the penalty shall be a 12-month suspension.

(c) 3. If the conduct is not related to the business of insurance license, the penalty shall be a 3-month suspension.

(2) Foreign Law Enforcement Records. In the event that a law enforcement record includes convictions, charges, or arrests outside the United States, the Department shall consider the following factors to reduce, eliminate, or apply a waiting period:

(a) Whether the crime in the criminal record would be a crime under the laws of the United States or any state within the United States;

(b) The degree of penalty associated with the same or similar crimes in the United States; and

(c) The extent to which the foreign justice system provided safeguards similar to those provided criminal defendants under the Constitution of the United States.

Specific Authority 624.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308, 626.207(2), 626.601, 626.611, 626.621, 626.631, 626.631(1), 626.681, 626.691 FS. History–New 7-13-93, Amended 9-23-02, Formerly 4-231.150, Amended ________.

 

69B-231.160 Aggravating/Mitigating Factors.

The Department shall consider the following aggravating and mitigating factors and apply them to the total penalty in reaching the final penalty assessed against a licensee under this rule chapter. After consideration and application of these factors, the Department shall, if warranted by the Department’s consideration of the factors, either decrease or increase the penalty to any penalty authorized by law.

(1) For penalties other than those assessed under Rule 69B-231.150, F.A.C.:

(a) Willfulness of licensee’s conduct;

(b) Degree of actual injury to victim;

(c) Degree of potential injury to victim;

(d) Age or capacity of victim;

(e) Timely restitution;

(f) Motivation of licensee agent;

(g) Financial gain or loss to licensee agent;

(h) Cooperation with the Department;

(i) Vicarious or personal responsibility;

(j) Related criminal charge; disposition;

(k) Existence of secondary violations in counts;

(l) Previous disciplinary orders or prior warning by the Department; and

(m) Other relevant factors.

(2) No change.

Specific Authority 626.308, 626.207(2) FS. Law Implemented 624.307(1), 624.308,  626.207(2), 626.611, 626.621, 626.631, 626.681, 626.9541 FS. History–New 7-13-93, Formerly 4-231.160, Amended________.