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DFS Legislative Package: Exchange of Business


   

CS/CS/CS/HB 1073

Exchange of Business

pp. 24, 39–41, p.43; §§624.501, 626.752, 626.793, 626.837

Amends the “exchange of business” and the “excess or rejected business” statutes to reduce the number of policies a brokering agent may write for an insurer without an appointment from 24 to four. The bill also changes the requirement for a brokering agent to maintain a “bound journal” of brokered transactions to a “permanent record” of such transactions, to allow for electronic recordkeeping.

Under current “exchange of business” or “excess or rejected business” laws, brokering agents are permitted to write up to 24 policies for an insurer each year without being appointed by the insurer. Once an agent has written more than 24 policies, the insurer must report them to the DFS under the exchange of business appointment type. This appointment type costs $30 per year. Under §626.451(3), F.S., an appointment of an agent by an insurer is a certification to the DFS that the insurer is willing to be bound by the acts of the agent, within the scope of the licensee’s employment or appointment.

Effective date: July 1, 2018
Chapter No. 2018-102, LOF

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