CS/CS/HB 1133 - Division of Insurance Agent and Agency Services

• Removes restrictions on general lines agents transacting health insurance, allowing them to do so when the insurer also appoints them for property, casualty, or surety insurance.

• Revises examination requirements and exemptions for insurance agent licenses, including new exemptions for applicants with specific degrees (minimum 9 credit hours of insurance instruction) in personal lines, life, and health agent categories.

• Modifies prelicensure education requirements by changing course hour specifications and requiring instruction on unauthorized entities engaging in insurance business, including the Florida Nonprofit Multiple-Employer Welfare Arrangement Act and ERISA.

• Changes compensation rules for customer representatives by deleting the prohibition on commissions but prohibiting compensation from being primarily based on commissions, and allows agents and customer representatives to share commissions.

• Requires insurance agents to provide written information to policyholders before surrender of annuity or life insurance policies, including estimated surrender charges, tax consequences, forfeited death benefits, and investment performance guarantees; defines "surrender" and requires agents to maintain records of information provided.

• Allows insolvency notices to be delivered to policyholders by registered mail, certified mail, or email with delivery receipt required.

• Effective date: July 1, 2015.