Florida Statutes 626.793 – Excess or rejected business
Current as of: 2024 | Check for updates
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(1) A licensed life agent may place excess or rejected risks within the class of business for which he or she is licensed and appointed, and which the insurer appointing him or her is authorized to transact, with any other authorized insurer without being required to secure an appointment as to such other insurer.
(2) “Excess business” is that portion of a risk above the limits of that which the agent’s own insurer will accept.
(3) “Rejected business” is a risk that the agent’s own insurer is authorized to write but rejects for underwriting reasons, or is willing to accept only on a substandard basis; but which business will be accepted and issued by another authorized insurer at a lower rate.
(4) Within 15 days after the last day of each month, any insurer accepting business under this section shall report to the department the name, address, telephone number, and social security number of each agent from which the insurer received more than four risks during the calendar year. Once the insurer has reported an agent’s name to the department pursuant to this subsection, additional reports on the same agent shall not be required. However, the fee set forth in s. 624.501 must be paid for the agent by the insurer for each year until the insurer notifies the department that the insurer is no longer accepting business from the agent pursuant to this section. The insurer may require that the agent reimburse the insurer for the fee. If the insurer or employer does not pay the fees and taxes due under this subsection within 21 days after notice by the department, the department must suspend the insurer’s or employer’s authority to appoint licensees until all outstanding fees and taxes have been paid.
(5) If a managing general agent handles or an insurer accepts business under this section, relative to that business:
(a) The insurer shall be liable to the insured for coverage arising hereunder and for the acts of the agent in producing their business; and
(b) The managing general agent or insurer shall be responsible and accountable for any violation of this code by the producing agent, and the violation shall be deemed to be a violation of the code by the managing general agent or insurer if the managing general agent or insurer knew of or encouraged, aided, or abetted in the agent’s violation.