Current through Reg. 50, No. 187; September 24, 2024
(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.
New 12-12-95, Formerly
4-136.017.
