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FL
237123
5-Hour Law and Ethics Update - Bail Bonds - CE5-237
Section
1
REGULATORY AWARENESS
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8
Other Requirements
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Bail bondsmen should be aware of the various statutory requirements, unfair methods of competition and unfair or deceptive acts or practices and how these statutory provisions affect or impact their conduct as a member of the insurance industry or as an employee or owner of an insurance entity. [<p id="2" />] [<b>]Registration[</b>] [<font face = "Times New Roman" size = "3">] [<i>][<b>]§648.421 Notice of change of address or telephone number.—[</b>] Each licensee under this chapter shall notify in writing the department, insurer, managing general agent, and the clerk of each court in which the licensee is registered within 10 working days after a change in the licensee’s principal business address or telephone number. The licensee shall also notify the department within 10 working days after a change of the name, address, or telephone number of each agency or firm for which he or she writes bonds and any change in the licensee’s name, home address, e-mail address, or telephone number. [<p />] [<b>]69B-221.060 Notice of Change of Address[</b>] Each licensee under Chapter 648, F.S., shall notify in writing the Department of Financial Services, Bail Bond Section, Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0320, insurer, managing general agent and the clerks of each court in which they are registered, of a change of each business address, telephone number, or name of each agency or firm for which they write bonds within ten (10) working days of such change. Each licensee shall use Form DFS-H2-1564 (Rev. 8-12-04), entitled “Bail Bond Agent Notice of Change of Address,” which is hereby incorporated and adopted by reference, to comply with the notice requirements of this rule. This form may be obtained from the address listed above or from the Department’s website: www.MYFLORIDACFO.com/Division/Agents.com. [<p />] [</font face = "Times New Roman" size = "3">] [</i>] [<b>]Advertising Recordkeeping [</b>] The surety and the bail bond agent are required to maintain records and to report certain required information to the Department as follows: [<p />] [<font face = "Times New Roman" size = "3">] [<i>] [<b>]§626.112 License and appointment required; agents, customer representatives, adjusters, insurance agencies, service representatives, managing general agents.—[</b>] (1)(a) No person may be, act as, or advertise or hold himself or herself out to be an insurance agent, insurance adjuster, or customer representative unless he or she is currently licensed by the department and appointed by an appropriate appointing entity or person. [<p />] (7)(a) An individual, firm, partnership, corporation, association, or other entity shall not act in its own name or under a trade name, directly or indirectly, as an insurance agency unless it complies with s. 626.172 with respect to possessing an insurance agency license for each place of business at which it engages in an activity that may be performed only by a licensed insurance agent. However, an insurance agency that is owned and operated by a single licensed agent conducting business in his or her individual name and not employing or otherwise using the services of or appointing other licensees shall be exempt from the agency licensing requirements of this subsection. [<p />] (b) A branch place of business that is established by a licensed agency is considered a branch agency and is not required to be licensed so long as it transacts business under the same name and federal tax identification number as the licensed agency and has designated with the department a licensed agent in charge of the branch location as required by s. 626.0428 and the address and telephone number of the branch location have been submitted to the department for inclusion in the licensing record of the licensed agency within 30 days after insurance transactions begin at the branch location. [<p />] (c) If an agency is required to be licensed but fails to file an application for licensure in accordance with this section, the department shall impose on the agency an administrative penalty of up to $10,000. [<p />] (d) Effective October 1, 2015, the department must automatically convert the registration of an approved registered insurance agency to an insurance agency license. [<p />] (8) No insurance agent, insurance agency, or other person licensed under the Insurance Code may pay any fee or other consideration to an unlicensed person other than an insurance agency for the referral of prospective purchasers to an insurance agent which is in any way dependent upon whether the referral results in the purchase of an insurance product. [<p />] (9) Any person who knowingly transacts insurance or otherwise engages in insurance activities in this state without a license in violation of this section commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084. [<p />] [<b>]§626.9531 Identification of insurers, agents, and insurance contracts.—[</b>] (1) Advertising materials and other communications developed by insurers, or other risk bearing entities authorized under this code and approved by the office to do business in this state, regarding insurance products shall clearly indicate that the communication relates to insurance products. When soliciting or selling insurance products, agents shall clearly indicate to prospective insureds that they are acting as insurance agents with regard to insurance products and identified insurers, or other risk bearing entities authorized under this code and approved by the office to do business in this state. [<p />] (2) There shall be no liability to the insured on the part of, and no cause of action of any nature shall arise against, any licensed and appointed insurance agent for the insolvency of any risk bearing entity when such entity has been duly authorized or approved by the office to do business in this state. However, if the licensed and appointed agent was a controlling producer, as defined in s. 626.7491(2), of the risk bearing entity within 2 years preceding the insolvency, the agent is subject to penalty as provided in s. 626.7491(8). [<p />] [<b>]§626.9541(1)(a)-(b) Unfair methods of competition and unfair or deceptive acts or practices defined.—[</b>] (a) Misrepresentations and false advertising of insurance policies.—Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, comparison, or property and casualty certificate of insurance altered after being issued, which: [<p />] 1. Misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [<p />] 2. Misrepresents the dividends or share of the surplus to be received on any insurance policy. [<p />] 3. Makes any false or misleading statements as to the dividends or share of surplus previously paid on any insurance policy. [<p />] 4. Is misleading, or is a misrepresentation, as to the financial condition of any person or as to the legal reserve system upon which any life insurer operates. [<p />] 5. Uses any name or title of any insurance policy or class of insurance policies misrepresenting the true nature thereof. [<p />] 6. Is a misrepresentation for the purpose of inducing, or tending to induce, the lapse, forfeiture, exchange, conversion, or surrender of any insurance policy. [<p />] 7. Is a misrepresentation for the purpose of effecting a pledge or assignment of, or effecting a loan against, any insurance policy. [<p />] 8. Misrepresents any insurance policy as being shares of stock or misrepresents ownership interest in the company. [<p />] 9. Uses any advertisement that would mislead or otherwise cause a reasonable person to believe mistakenly that the state or the Federal Government is responsible for the insurance sales activities of any person or stands behind any person’s credit or that any person, the state, or the Federal Government guarantees any returns on insurance products or is a source of payment of any insurance obligation of or sold by any person. [<p />] (b) False information and advertising generally.—Knowingly making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public: [<p />] 1. In a newspaper, magazine, or other publication,[<br/>] 2. In the form of a notice, circular, pamphlet, letter, or poster,[<br/>] 3. Over any radio or television station, or[<br/>] 4. In any other way,[<br/>] an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, deceptive, or misleading.