Florida Laws, Rules and Regulations
Licensing and market conduct
Florida regulates insurance through the Department of Financial Services and the Office of Insurance Regulation. Agents and adjusters must be licensed, and appointments tie a licensee to an insurer. Continuing education, address changes, and timely renewal are compliance duties. Florida prohibits unfair trade practices, including misrepresentation, false advertising, twisting, rebating, and improper inducements. Premium tax and guaranty-fund assessments fund regulation and protect policyholders of insolvent authorized insurers.
Florida-specific traps
- FIGA does not cover surplus lines insurers. The Florida Insurance Guaranty Association protects covered claims of insolvent authorized insurers, not unauthorized/surplus lines insurers.
- A surplus lines agent needs a Florida surplus lines license; ordinary agent authority is not enough.
- Surplus lines placements must use an eligible surplus lines insurer and comply with FSLSO reporting.
- Rebating is prohibited; offering an inducement not in the policy is an unfair trade practice.
- FSLSO is a service/compliance office, not an insurer and not a guaranty fund.
Worked example
An agent places a homeowners policy with an eligible surplus lines insurer because admitted insurers declined. The insured later asks whether FIGA will pay if the insurer fails. Answer: no. The policy is surplus lines, and the insured should receive the required disclosure that the insurer is not authorized and is not protected by the guaranty fund. The agent must still hold a surplus lines license, use an eligible insurer, document diligent effort, and report through FSLSO.
Rule of thumb: authorized insurer → guaranty fund may apply; surplus lines insurer → no FIGA protection, but disclosure and FSLSO compliance are required.