Florida's insurance law is the Florida Insurance Code (Chapters 624 to 632 and related chapters of the Florida Statutes), supplemented by the Florida Administrative Code. Rules numbered 69B come from the Department of Financial Services, and rules numbered 69O come from the Office of Insurance Regulation. Florida publishes the state-law share of each exam, and it is large. This page covers the rules "common to all lines". The shared national guide covers general concepts.

About the exam

• Florida does not offer separate Property or Casualty exams. Both are tested on the combined General Lines (Property & Casualty) exam.
• Variable annuities and variable life are part of the Life exam.
• Each exam has a General Knowledge half and a Florida Statutes, Rules and Regulations half. The Florida share is about 42% of the Life exam, 41% of Health, 33% of Health & Life, 36% of General Lines and 25% of Personal Lines.
• Unscored pretest questions are mixed in.
• A candidate may take each exam up to five times in 12 months. A passing score is valid for one year.

Who regulates what

• Department of Financial Services (DFS) is headed by the Chief Financial Officer, an elected Cabinet officer (Fla. Stat. 20.121(1)). DFS:
  • licenses and disciplines agents and adjusters (626.016)
  • runs the Division of Consumer Services
  • investigates fraud through the Division of Criminal Investigations
  • acts as receiver for insolvent insurers through the Division of Rehabilitation and Liquidation
• Office of Insurance Regulation (OIR) regulates insurers: certificates of authority, rates, forms, market conduct, claims and solvency. Its Director may also be called the Commissioner of Insurance Regulation.
• Office of Financial Regulation regulates banks, credit unions, finance companies and securities, not insurers.
• Financial Services Commission: the Governor, Attorney General, CFO and Commissioner of Agriculture. It is the agency head of OIR and OFR.
• Insurer types (624.06):
  • Domestic: formed under Florida law. Foreign: formed in another U.S. state. Alien: formed in another country.
  • An authorized (admitted) insurer holds a certificate of authority from OIR (624.401, 624.09).
  • Mutual insurers have no capital stock and are owned by policyholders (628.031).
  • Reciprocals exchange insurance through an attorney-in-fact and may write any line except life and title (629).
  • Fraternal benefit societies run on a lodge system (632.601).
• OIR may conduct market conduct examinations as often as it deems necessary (624.3161).

Licensing

• Transacting insurance means soliciting, negotiating or effectuating a contract, and requires a license (624.10). Knowingly transacting without a license, or helping someone do it, is a third-degree felony (626.112(10)).
• Applicants must be at least 18, a U.S. citizen or legal alien, a bona fide Florida resident, and keep a public place of business in Florida (626.731). Fingerprints are required for state and national background checks (626.171).
• Prelicensing education, all within the 4 years before applying, with 3 hours of ethics in each course:

• Exemptions from prelicensing or the exam:
  • Members and veterans of the armed forces, and their spouses, are excused from prelicensing coursework.
  • CLU holders are exempt from the life course, and from the exam for life or health. ChFC or FLMI replaces the life course.
  • RHU, ChHC, REBC, CEBS or HIA replaces the health course.
  • CPCU holders are exempt from the general lines exam. They may still be tested on the Florida Insurance Code (626.221).
• License types:
  • A personal lines agent is a general lines agent limited to noncommercial P&C (626.015).
  • A customer representative works only under the supervision of a general lines agent or agency (626.7351).
  • An unaffiliated agent is self-appointed, represents no insurer and charges fees under a signed written contract.
  • Funeral directors may hold only a limited preneed life license.
• Nonresidents are licensed reciprocally if they hold the same line in their home state (626.741, 626.792). A transfer from another state requires at least one year licensed there and an application within 90 days of moving (626.292).
• Agencies must be licensed. A sole agent operating under his own name with no employees is exempt (626.112(7)). Each agency location has a full-time licensed agent in charge (626.0428).

Appointments

• An agent must be appointed by an insurer before transacting its business. Appointments are filed monthly, no later than 45 days after the appointment date (626.371).
• Appointments renew every 24 months in the appointee's birth month (626.381).
• If an agent goes 48 months without an appointment for a class of insurance, the agent must requalify as a first-time applicant (626.431(3)).
• By appointing an agent, the insurer certifies it investigated the agent and accepts responsibility for the agent's acts within the appointment (626.451). It must tell DFS within 15 days if it learns the agent pleaded to or was convicted of a felony.
• Terminating an appointment: at least 60 days' advance written notice to the agent, unless the reason is a ground for license discipline or the contract says otherwise (626.471).
• An insurer may not furnish supplies to unappointed agents. If it accepts their business, it is liable to the insureds as if it had appointed them (626.342).

Keeping the license

• Continuing education (626.2815):
  • every two years: a 4-hour law and ethics update course for the license held, plus 20 elective hours (24 total)
  • licensed 6+ years: 4 + 16 (20 total)
  • licensed 25+ years and holding a CLU or CPCU (or a qualifying insurance degree): 4 + 6
  • excess hours carry forward
  • CE compliance is required to issue, continue or renew an appointment
• Report within 30 days:
  • a change of name, address, phone or e-mail (626.551)
  • an administrative action by another regulator (626.536)
  • a felony conviction or plea (626.621(10))
• Moving out of Florida: moving both your residence and your business out of state terminates the license and all appointments.
• Records:
  • policy records: 5 years after expiration (626.748)
  • premium records: 3 years (626.561(2))
• Discipline:
  • fines up to $500 per violation, or $3,500 if willful, plus any commission earned (626.681)
  • probation of up to two years (626.691)
  • unfair trade practice fines up to $12,500 per violation, or $100,000 if willful (626.9521)

Fiduciary duties and compensation

• Premiums are held in a fiduciary capacity and may not be mixed with personal funds (626.561). Funds of insurers the agent is not appointed with (other than surplus lines) go in a separate account.
• Misappropriating more than $300 of premium is a felony. Larger amounts are higher-degree felonies.
• Commissions go only to properly licensed and appointed persons (626.753).
• Referral fees paid to unlicensed persons may not depend on whether a sale results (626.112(8)).
• Controlled business (general lines agents and customer representatives, 626.730): insurance on the licensee's own, family's or employer's interests. A violation exists if it produces more than 50% of the agent's commissions in 12 months. This rule doesn't apply to life or health agents.

Unfair Insurance Trade Practices Act (626.9541)

• Misrepresentation and false advertising, including knowingly omitting material facts from a life, health or Medicare supplement replacement comparison.
• Twisting: misrepresentation to induce a lapse or replacement.
• Churning: an internal replacement with the same insurer, done through deception or without a reasonable basis to believe it benefits the policyholder.
• Twisting and churning are first-degree misdemeanors, with fines up to $187,500 for willful fraud (626.9521(3)).
• Sliding: telling a buyer that a coverage is required by law, or adding coverage or fees without informed consent, to raise the premium.
• Defamation of an insurer's finances. Boycott, coercion and intimidation.
• Requiring a power of attorney as a condition of purchase.
• Fraudulent signatures on applications are a third-degree felony.
• Unfair discrimination:
  • between insureds of the same class and hazard
  • refusing coverage solely for race, color, creed, marital status, sex or national origin
  • refusing solely because another insurer declined the applicant
  • penalizing victims of domestic abuse
  • refusing because of severe disability or the sickle-cell trait (626.9705 to 626.9707)
• Gifts and rebates:
  • Gifts, gift cards and tickets up to $100 per person per calendar year are allowed. So are charitable donations up to $100.
  • Rebates are legal only under a written schedule filed with the insurer, applied uniformly to everyone in the same class, and posted in the office (626.572). They can't be based on age, sex, residence, race, marital status or occupation, or given on an insurer's policies if that insurer forbids rebating.
  • Rebate schedules are kept 5 years.
• Free insurance as an inducement to buy property or services is prohibited.
• Senior designations: titles that falsely suggest special training to advise seniors are banned. Agents must make reasonable efforts to find out a consumer's age.
• Policyholders' rights to sue (624.155): the claimant must file a Civil Remedy Notice with DFS, which gives the insurer 60 days to cure.

Fraud and unauthorized insurers

• Presenting a false claim is a felony (817.234).
• Insurers, agents and other licensees who know of or suspect fraud must report it to the DFS Division of Criminal Investigations (626.989(6)).
• Anyone who places coverage with an unauthorized insurer is personally liable for unpaid claims (626.901).

Surplus lines

• Coverage is exported to an eligible nonadmitted insurer through a surplus lines agent (626.914, 626.918).
• Since July 1, 2025, Florida no longer requires three declinations from admitted insurers. Instead, the insured acknowledges in writing that:
  • coverage may be available from admitted insurers
  • surplus lines insureds have no FIGA protection
  • the rates and forms are not approved by Florida regulators (626.916(1)(d))
• Exported coverage can't be priced below the rate most admitted insurers use for the same risk.
• Surplus lines tax is 4.94% (626.932). Filings go through the Florida Surplus Lines Service Office.

Guaranty associations

• FIGA (P&C, 631.57):
  • up to $300,000 per claim
  • homeowners policies get an extra $200,000 for the structure and contents
  • condo and homeowners associations: $200,000 times the number of units
• Florida Life and Health Insurance Guaranty Association (631.717(12)):

Exam traps

• DFS licenses agents. OIR regulates insurers. The CFO is elected. The OIR Director is the "Commissioner of Insurance Regulation."
• Appointments are filed within 45 days and renewed every 24 months. 48 months without one means requalifying.
• CE: 4-hour update + 20 (24 total), or +16 after six years.
• Rebating is legal in Florida, but only under a filed, uniform, posted schedule. Gifts are capped at $100 a year.
• The three-declination surplus lines rule is gone as of July 1, 2025.