Getting a Florida insurance coverage company license: what it’s essential to know

All companies concerned in promoting insurance coverage in Florida are required to have the right licenses to function legally. This is among the first and most vital steps you should take if you wish to begin your individual insurance coverage enterprise within the state. Getting a Florida insurance coverage company license, nonetheless, isn’t any simple matter.  

That will help you type issues out, Insurance coverage Enterprise sifted by means of all data out there on the Florida Workplace of Insurance coverage Regulation’s (FLOIR) web site. We’ll clarify the totally different licensing necessities, the applying course of, and what it takes to keep up your company license. 

In the event you’re planning on beginning your individual insurance coverage gross sales enterprise within the Sunshine State, this information might help. Learn on and discover out all the pieces it’s essential to learn about getting your Florida insurance coverage company license.

In the event you’re opening a enterprise that employs an insurance coverage agent, Florida statutes require you to register your online business as an insurance coverage company and get the right license.

Earlier than you may apply for a license, you should designate a licensed agent answerable for your online business. Aptly referred to as the agent-in-charge, this trade skilled is chargeable for overseeing all insurance coverage brokers and issues involving insurance coverage gross sales. Every department is required to have an agent-in-charge, though they don’t must be separate people.

Brokers-in-charge can handle totally different areas if they’re current each time an insurance coverage gross sales transaction is performed. They’re additionally accountable for any misconduct or violation of the Florida Insurance coverage Code dedicated by your company or brokers below their supervision.

All companies working as an insurance coverage company within the state ought to get a 21-05 insurance coverage company license. This is applicable to all resident and non-resident insurance coverage companies.

Right here’s a step-by-step information on how one can get a Florida insurance coverage company license:

Step 1: Appoint an agent-in-charge.

As talked about, Florida statutes require all insurance coverage companies to nominate an agent-in-charge to oversee insurance coverage gross sales transactions. An agent-in-charge have to be licensed within the strains of authority your online business focuses on. In case your company sells insurance policies in a number of strains, your appointed agent should maintain licenses in all these strains.

Listed here are the totally different licenses your agent-in-charge might have to get hold of:

Florida insurance coverage company license – which kinds of licenses does an agent-in-charge want?

If the worker holds solely a limited-lines insurance coverage license or every other license not included within the desk, they don’t seem to be certified to turn out to be the agent-in-charge of your online business.

Step 2: Apply on your insurance coverage company license.

You possibly can apply on your Florida insurance coverage company license on-line on the MyProfile portal of the Florida Division of Monetary Companies (FLDFS) web site.

In the event you don’t have one but, you have to to create an account to log in and submit your utility. You can too use your account to replace your online business data, together with modifications within the registered enterprise identify, agent-in-charge, and officers concerned in your insurance coverage operations.

A be aware on registered names: FLOIR has tips on what phrases you need to use for your online business. Usually, your identify ought to point out that your online business sells insurance coverage or is an insurance coverage company.  

You’re NOT allowed to make use of any of the next for your online business identify:

• the phrases Medicare or Medicaid

any phrase that suggests that the company is:

an insurance coverage firm

• a motor membership
• a hospital service plan
• a Federal or state company
• a charitable establishment
• an entity that gives recommendation or counsel reasonably than promote insurance coverage
• an entity that engages in insurance coverage actions not permitted below licenses held or utilized for
• names which are too much like these of already registered companies or insurers
• any phrase that will mislead the general public

 In case your chosen identify doesn’t meet these tips, the division might ask you to submit a brand new one.

3. Submit fingerprints.

You’re required to submit fingerprints of all officers and members of your insurance coverage company who take part within the administration and management of the enterprise. These embrace: 

• proprietor
• associate/s
• director/s
• president
• senior vice-president
• secretary
• treasurer
• restricted legal responsibility firm (LLC) members

As a result of they already had their fingerprints submitted previous to acquiring their licenses, licensed insurance coverage brokers don’t have to be fingerprinted.

Fingerprinting charges price $50.75 and have to be paid on to the seller. FLDFS offers further directions on how one can correctly submit fingerprints on your insurance coverage company on its web site.

Step 4: Get your license.

You should use your MyProfile account to examine the standing of your license utility. If there are any necessities that you simply failed to fulfill, you will discover them below pending license kind.

As soon as authorised, you may obtain a duplicate of your Florida insurance coverage company license for printing. Your company license incorporates data that buyers have to confirm your license standing. That’s why you’re required to show your license the place it’s clearly seen to prospects visiting your workplace.

Not like insurance coverage agent licenses, which have to be renewed each two years, company licenses are legitimate for so long as your online business has a chosen agent-in-charge. With out one, your insurance coverage company license will expire after 90 days.

Florida has reciprocity agreements with different states and international locations, permitting brokers to take these jurisdictions’ licensure examinations with out having to finish pre-licensing coursework. These brokers, nonetheless, nonetheless have to cross the native licensure check for a license to promote insurance coverage there.

Right here’s a listing of states and international locations the place Florida has reciprocal agreements with:

Life and well being, together with variable annuity, license reciprocity

Insurance coverage brokers who had been licensed inside the final 4 years are exempt from taking pre-licensing schooling in these states. Nonetheless, they need to cross the state licensure examination to get their non-resident agent license.

The next states have conditional reciprocity agreements with Florida. Which means that insurance coverage brokers should meet further necessities to safe a non-resident license. They don’t must take the pre-licensing programs however have to cross the state licensure check.

• Alabama
• Maryland
• Massachusetts
• Montana
• Nevada
• New Hampshire
• North Dakota
• Oregon
• Rhode Island
• Texas
• Vermont
• Virginia
• Washington

Surplus strains license reciprocity

Florida insurance coverage brokers who handed the excess strains examination are exempted from taking the check in these states.

Puerto Rico license reciprocity

Florida has a reciprocal settlement with Puerto Rico for the next strains of insurance coverage:

• 21-05 – Insurance coverage company
• 8-14 – Life and variable annuity
• 8-15 – Life, well being/incapacity, and variable annuity
• 8-40 – Well being
• 9-20 – Property and casualty
• 91-20 – Surplus strains

Canada license reciprocity

Florida has reciprocal agreements with all Canadian provinces and territories, besides Québec, for the next insurance coverage strains.

• 8-14 – Life and variable annuity
• 8-15 – Life, well being/incapacity, and variable annuity
• 8-40 – Well being

Florida statutes require any enterprise or particular person concerned in insurance coverage gross sales to get the right licenses. Promoting insurance coverage with out the required licenses may end up in a felony cost. In case your insurance coverage company or somebody you use is caught doing so, you may face substantial monetary and authorized penalties. These embrace fines, blocked commissions, and even suspension or revocation of insurance coverage and enterprise licenses.

The FLOIR may additionally challenge cease-and-desist orders to forestall your insurance coverage company from doing enterprise. You could be required to pay any unsettled insurance coverage claims if this occurs.

Getting the fitting licenses is simply step one in working your individual insurance coverage company. The true problem is preserving your online business worthwhile.

To maintain purchasers coming and money flowing, you should have a transparent imaginative and prescient of how one can preserve profitability. Listed here are some sensible recommendations on how to take action.

1. Be away from your targets.

Setting targets performs an important position in giving your insurance coverage company a transparent imaginative and prescient of the place it desires to go, how one can attain these targets, and what new services and products it will possibly supply. Being goal-oriented additionally helps preserve you and your staff motivated. If set accurately, your online business targets might help you measure how profitable your insurance coverage company is.

2. Establish your area of interest.

As purchasers’ wants evolve continually, so does the demand for various insurance coverage merchandise. This presents a chance on your insurance coverage company to discover a area of interest that can assist it develop. Whereas the street to discovering your online business’ area of interest market takes effort and time, it will possibly additionally reap dividends in the long term.

3. Discover and nurture new leads.

Success in insurance coverage gross sales means having to continually drive leads. There are a number of methods that may assist your brokers faucet new leads. These embrace focused advertising and multi-channel lead era. If you wish to study extra lead-generation methods, this information to discovering new insurance coverage leads might assist.

4. Enhance your community.

In a relationship-oriented trade reminiscent of insurance coverage, constructing robust connections with purchasers is important to the success of each enterprise. A great insurance coverage networking system helps your insurance coverage company set up significant connections with potential prospects and win them over. You will discover a number of sensible methods on how one can enhance your insurance coverage community on this information.

5. Make the most of the most recent expertise.

Many insurance coverage specialists consider that the one means for the trade to maneuver ahead is to embrace technological innovation. That is mirrored within the elevated adoption of AI, blockchain, cloud computing, IoT, and telematics to cut back prices, mitigate dangers, and preserve purchasers engaged.

6. Care for your staff.

One other efficient technique to make your insurance coverage company succeed is to care for your most vital asset – your staff. A fantastic insurance coverage employer presents the perfect work atmosphere that paves the best way for workers to thrive and develop. A constructive office tradition can be among the many high elements that preserve staff engaged. An engaged workforce is essential to decreasing turnover, boosting productiveness, and sustaining profitability.

Is beginning your individual insurance coverage company in Florida a good suggestion?

The continued progress of the insurance coverage sector presents a large alternative for aspiring insurance coverage entrepreneurs who wish to dip their toes within the trade.

Florida’s insurance coverage market, nonetheless, operates otherwise than these in most states. That’s why beginning your individual insurance coverage company requires cautious planning, arduous work, and dedication. If you wish to begin your individual insurance coverage enterprise however will not be fairly positive the place to start, this step-by-step information on how one can begin an insurance coverage firm can help you.

Do you suppose getting a Florida insurance coverage company license is well worth the effort? Is beginning your individual insurance coverage company in Florida enterprise enterprise? Tell us within the feedback part beneath.