Insurance Regulations in Florida

Bail bonding is also a type of insurance governed by Florida Statutes.

Insurance regulations in Florida are covered under Title XXXVIII of the Florida Statutes, as defined by the Legislative Branch of the state government. These statutes cover regulation for a wide range of insurance types, including homeowners, automobile, health, life and credit life policies. Rules and regulations applicable to the licensing of insurance agents, as well as policy rates are also covered under Title XXXVIII.

Administration

During the 2009to 2010 fiscal year, the FOIR monitored nearly 69 million dollars in customer refunds.

The Florida Office of Insurance Regulation (FLOIR) is responsible for the regulation, compliance and enforcement of Florida insurance statutes. As of 2000 to 2010 fiscal year reporting, the FLOIR was responsible for overseeing nearly 4,000 insurance entities, such as property, health, life and casualty insurers, and more than 100 billion dollars worth of insurance premiums. During this same reporting period, the FOLIR assessed nearly 13 million dollars worth of fines.

Agent Licensing

Fingerprints are used to establish criminal history of agent applicants.

To become an insurance agent in Florida, applicants must meet certain criteria as defined by Florida Statutes. Title XXXVIII, chapter 626 of the Florida Statutes covers the application process, eligibility, required examinations, continuing education requirements and reasons for license termination. Basic criteria for insurance agent applicants dictates that the applicant be a bona fide resident of Florida, be at least 18 years of age, pass required examinations and submit to fingerprinting. Applicants cannot be employees of the Department of Veterans Affairs or employed in any capacity funeral director or direct disposer.

Rates

Insurance policy rates and rate increases are controlled by the FLOIR. Insurance entities must apply for permission before applying any across-the-board rate increases to policies in Florida. This process helps to ensure that Florida residents are not subject to inappropriate or illegal increases, as well as providing insurers the ability to increase rates with relation to market changes. Rate increase requests must garner the approval of the Florida Insurance Commissioner prior to going into effect.

Homeowners Insurance

According to Florida Statutes, new homeowners insurance cannot take effect while any section of Florida is under a hurricane watch or warning.

Due to weather and other geographic issues, homeowners insurance is a topic under constant discussion. Major catastrophes, such as the unusually active 2005 hurricane season, can result in billions of dollars worth of destruction and insurance claims. This level of liability has forced many insurers out of the homeowners insurance market, forcing the state to create the Citizens Property Insurance Company. Regulation of homeowners insurance covers types of coverages, limitations, compliance, claims process and coverage termination.

Types

In addition to traditional insurance policies, such as automobile, homeowners and health, the FLOIR is also responsible for the oversight and regulation of a wide range of insurance types. Some of these types include motor vehicle service agreements, home warranties, mortgage guaranty insurance, legal expense insurance, bail bonds, discount medical plans and workers' compensation.

References

• Online Sunshine: The 2010 Florida Statutes, Title XXXVIII Insurance

Resources

• Florida Office of Insurance Regulation