Frequently Asked Questions

Do you have a question about being an insurance agent in Florida?

Below are sorted lists of our most common frequently asked questions (FAQs). Click a topic to review its FAQs and answer(s). If you have any questions, comments, or suggestions for additional FAQ topics, please email us at AgentLicensing@MyFloridaCFO.com.

Expand all

Agent and Adjuster General Licensing and Compliance

1. What license do I need?

Please see our License Qualifications page for more information.

2. What is the definition of transacting insurance?

Pursuant to section 624.10, Florida Statutes, transacting with respect to insurance includes any of the following:

Solicitation or inducement
Preliminary negotiations
Effectuation of a contract of insurance
Transaction of matters subsequent to effectuation of a contract of insurance and arising out of it

3. What are the fees for obtaining a license or appointment?

It depends on the type of license. Please view the Fees list.

4. What payment methods are there?

Credit Cards: We currently accept credit cards from:

VISA, MasterCard, American Express, and Discover for applications for licensure;
VISA, MasterCard, American Express, and Discover for appointments; and
VISA, MasterCard, American Express, and Discover for education course providers.

Note: When entering the credit card information, the addresses must match the cardholder’s billing address. An additional convenience fee is charged by the credit card companies. Convenience fees are $2.45 for applications for licensure and education course providers, and 3% of the transaction for appointments.

eCheck: eCheck payments are only available for appointments. For more information about eCheck transactions, please view the Fees list.

5. I'm a member or veteran of the US Armed Forces or their spouse. Am I exempted from the license application filing fee?

Yes. Members of the United States Armed Forces, their spouses, and individuals who have been honorably discharged within 24 months of completing an application for licensure are exempted from the application filing fee for licenses

You will need to provide one of the following supporting documents; a copy of a military identification card, military dependent identification card, military service record, military personnel file, veteran record, discharge paper, or separation document that indicates such member is currently in good standing or such veteran is honorably discharged. This documentation can be emailed to AgentLicensing@MyFloridaCFO.com. Please include your application ID number in the subject line.

6. Can I apply for a license if I have any prior criminal history?

The department looks at all background information on a case-by-case basis. Please visit Prior Criminal History for more specific guidance.

7. How do I check the status of my application?

The status of applications and licenses can be checked by logging in to MyProfile.

8. I am a member or veteran of the US Armed Forces or their spouse. Am I exempted from the pre-licensing course requirement for an insurance agent license?

Yes. Members of the United States Armed Forces, their spouses, and individuals currently in good standing or have been honorably discharged (no timeframe) are exempt from the licensing pre-qualification requirements.

9. I've submitted fingerprints to the department for another license. Do I need to do it again?

If you currently hold a valid Florida insurance license in good standing, fingerprint results are valid for 48 months from when they were originally processed. If you do not currently hold a valid Florida insurance license in good standing, and are applying for an insurance agent/adjuster license, then the fingerprint results are valid for 12 months.

10. I've submitted fingerprints to another department (outside the Division of Agent & Agency Services). Are those fingerprints acceptable?

No. We cannot accept fingerprints outside of the Division of Agent and Agency Services.

11. I've been approved for an examination but now I have a designation. What do I need to do?

You will need to email the designation to the department at AgentLicensing@MyFloridaCFO.com. Please include your application ID number in the subject line.

If your authorization for examination has not expired, you will need to call the department to get the application corrected for approval. If the authorization for examination has expired, you will need to reapply for the license.

12. How do I renew my license?

Insurance agent and adjuster licenses are perpetual (no renewal required), provided that the licensee is properly appointed. The license will expire if it goes 48 months without an appointment. Failure to complete continuing education requirements may result in cancellation of an appointment that could lead to expiration of the license.

13. What is an appointment?

The authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf of an insurer or employer. Please see the eAppoint and Appointments section on this page for more detailed information.

14. Do all licenses need appointments?

Section 626.112, Florida Statutes, states that no person may be, act as, or advertise or hold himself or herself out to be an insurance agent, insurance adjuster, or customer representative unless he or she is currently licensed by the department and appointed by an appropriate appointing entity or person.

15. How do I change or update my address?

You must update and/or verify your addresses and other information through your MyProfile account. If you have another license, such as an agency license, you will need to verify and update the addresses on file for that license via its separate MyProfile account.

*NOTE: Most licensees have 30 days from the change in your information, to notify the Department or be subject to administrative action (s. 626.551, F.S.); however, bail bond agents have 10 working days to do so (s. 648.421, F.S.).

16. I need to update my name, date of birth, or social security number. How do I update that on my license or with the Department?

You must email the request to change your name, date of birth, or social security number and include LEGIBLE supporting documentation along with your request. Email your request and supporting documentation to: AgentLicensing@MyFloridaCFO.com.

Acceptable forms of supporting documentation:

For an individual name change provide a photo copy of only one of the following documents:

Marriage certificate (if name was change due to marriage) or,

Photo ID or,

Court document (if name was changed through the courts)

For a date of birth change provide a photo copy of only one of the following documents:

Birth certificate or,

Photo ID reflecting correct date of birth

For a business name change provide a photo copy of only one of the following documents:

Articles of incorporation or amendment reflecting the new name or,

Fictitious name filing if adding a DBA or,

Internal Revenue Service document reflecting name and FEIN or EIN number

For Social Security number (SSN) changes provide a photo copy of only one of the following documents:

Social Security card or,

Official letter from the Social Security Administration reflecting Social Security number (SSN)

Please allow 7 - 10 business days after receipt for processing. After your name has been updated, you may download a copy of your license by logging in to your MyProfile account. Bail bond agents must apply for a duplicate license in their MyProfile account and pay a $5 fee.

17. What is an unaffiliated insurance agent?

An "unaffiliated insurance agent" means a licensed insurance agent, except a limited lines agent, who is self-appointed and who practices as an independent consultant in the business of analyzing or abstracting insurance policies, providing insurance advice or counseling, or making specific recommendations or comparisons of insurance products for a fee established in advance by written contract signed by the parties. An unaffiliated insurance agent may not be affiliated with an insurer, insurer-appointed insurance agent, or insurance agency contracted with or employing insurer-appointed insurance agents. [See subsection 626.015(20), F.S.]

An agent who appoints his or her license as an unaffiliated insurance agent may not hold an appointment from an insurer for any license he or she holds; transact, solicit, or service an insurance contract on behalf of an insurer; interfere with commissions received or to be received by an insurer-appointed insurance agent or an insurance agency contracted with or employing insurer-appointed insurance agents; or receive compensation or any other thing of value from an insurer, an insurer-appointed insurance agent, or an insurance agency contracted with or employing insurer-appointed insurance agents for any transaction or referral occurring after the date of appointment as an unaffiliated insurance agent. An unaffiliated insurance agent may continue to receive commissions on sales that occurred before the date of appointment as an unaffiliated insurance agent if the receipt of such commissions is disclosed when making recommendations or evaluating products for a client that involve products of the entity from which the commissions are received. [See subsection 626.311(6), F.S.]

18. How does a licensed agent become an unaffiliated insurance agent?

To become an unaffiliated insurance agent, an agent must self-appoint as an unaffiliated agent for the corresponding license type(s). For instructions on how to self-appoint, please refer to question #7 of the eAppoint and Appointments FAQ.

Licenses that may obtain an unaffiliated appointment:

Life (2-16 & 8-16)
Life including Annuity and Variable Contracts (2-14 & 8-14)
Health (2-40 & 8-40)
Health & Life (2-18 & 8-18)
Health & Life including Annuity and Variable Contracts (2-15 & 8-15)
Property & Casualty General Lines (2-20 & 9-20)
Property and Casualty Personal Lines (20-44 & 90-44)

Agency Licensing and Compliance

1. I'm opening an insurance agency. Do you have any tips to help me out?

View our guidance on opening an insurance agency.

2. Where is the application for an agency license found?

The agency application can be found by logging in to the agency's account in MyProfile. If an account has not yet been created for the agency, they will need to create one first in MyProfile.

3. Are agency licenses renewed?

No. Agency licenses are perpetual as long as there is an agent-in-charge effectively designated. An agency license will expire after 90 days without an agent-in-charge.

4. Which type(s) of license(s) must an individual hold to be the agent-in-charge of an agency?

The agent-in-charge must have at least one of the following license types:

General Lines (2-20 or 9-20)
Life (2-16 or 8-16)
Life including Variable Annuity (2-14 or 8-14)
Health (2-40 or 8-40)
Health and Life (2-18 or 8-18)
Health and Life including Variable Annuity (2-15 or 8-15)
Personal Lines (20-44 or 90-44)

Note: To be the agent-in-charge for an agency, an individual must be both licensed AND appointed for the required agent licenses to transact the lines of insurance being handled at the location. If there are two or more lines of insurance being transacted out of the agency, an agent-in-charge must be licensed for at least two lines of business being conducted. Individuals with only a limited-lines license, or any other license type not listed above, are not eligible to be the agent-in-charge of an agency.

5. When applications are submitted for licensure, are there exemptions for filing fingerprints?

Yes. The exemptions are as follows:

The individual has been fingerprinted with this Division in the past 12 months.
The individual is currently licensed and appointed as a Florida insurance agent.
The directors or officers of a corporation whose voting shares are traded on a securities exchange.

6. How do I update an agency officer(s) and/or owner(s)?

Changes can be made through the agency's MyProfile account, under the "Owners/Officers" link; documentation is not required. Existing officers changing position are not required to submit fingerprints. New officers or owners will be required to submit fingerprints to the department. Information about fingerprinting can be found on our Fingerprinting Information web page.

7. Does a corporate insurance agency have to submit fingerprints for every corporate officer even if the officer has nothing to do with the corporation's insurance operations?

No. Fingerprints are required for each owner, partner, officer, director, president, senior vice president, secretary, treasurer, and limited liability company member who directs or participates in the management or control of the insurance agency, whether through ownership of voting securities, by contract, by ownership of any agency bank account, or otherwise.

8. Do you issue agency licenses outside of the US?

Only for Puerto Rico.

9. What are the duties and responsibilities of the agent-in-charge?

An agent-in-charge is the licensed and appointed agent who is responsible for the supervision of all individuals within an insurance agency location, regardless of whether the agent-in-charge handles a specific transaction or deals with the general public in the solicitation or negotiation of insurance contracts or the collection or accounting of moneys. If there are two or more lines of insurance being transacted out of an agency, the agent-in-charge must be licensed for at least two lines of business being conducted. The agent-in-charge is accountable for misconduct or violations of the Florida Insurance Code committed by the licensee or agent or by any person under his or her supervision while acting on behalf of the agency.

10. Do agencies require appointments?

Generally, no. Insurance agencies are not appointed. However, individuals who transact insurance business within the agency must be licensed and appointed.

An insurance agency may be appointed as a Managing General Agent-Firm by having an insurance carrier (insurer) verify statutory requirements for the Managing General Agent (MGA) appointment and thereby appoint the insurance agency.

11. Does each branch of an insurance agency, bank or securities firm that engages in the transaction of insurance have to be licensed or listed as a branch location?

Yes. Florida Statute 626.112(7)(a) provides, in pertinent part, that "no individual, firm, partnership, corporation, association, or any other entity shall act … as an insurance agency, unless it complies with Florida Statute 626.172".

Insurance agency is defined in Florida Statute 626.015(8) as: "Insurance agency" means "a business location at which an individual, firm, partnership, corporation, association, or other entity … engages in any activity or employs individuals to engage in any activity, which by law may be performed only by a licensed insurance agent."

12. May a licensed Florida agent be the agent-in-charge at more than one agency location?

Yes. However, the agent-in-charge remains responsible for activities occurring at the locations even if they are not physically present. Insurance activities requiring licensure as an insurance agent cannot occur at any location when a licensed and appointed agent is not physically present. Also unlicensed employees at the location cannot engage in any insurance activities requiring licensure as an insurance agent or customer representative. If there are two or more lines of insurance being transacted out of the agency, the agent-in-charge must be licensed for at least two lines of business being conducted.

13. If the agent-in-charge of an insurance agency changes, must the department be notified of the change?

Yes. The agency must terminate the previous agent-in-charge and add the new agent-in-charge through the agency's MyProfile account within thirty 30-days of the change. If an agent-in-charge is not assigned, the agency cannot perform duties where a licensed insurance agent would be required. If one is not designated within 90 days, the location or agency license will be terminated automatically.

14. Will the agency appoint the agents working for that agency?

An agency may not appoint its agents. Agents must be appointed by an insurer or insurers. However, customer representatives (4-40) can be appointed through the agency's MyProfile account, rather than a general lines agent (2-20), as long as there is a general lines agent in the office full time.

15. Will agencies be issued lines of authority such as "Life?"

No. Agencies will not be issued lines of authority. However, agencies may transact business only for the lines of authority for which their agents are licensed and appointed.

16. What criteria will be used to disapprove the name of an agency?

An agency name will be disapproved if it contains the word “Medicare” or “Medicaid” or appears that use of the proposed name may mislead or cause harm to the public in any way. Some reasons that will be used to disapprove a name will be terms in a name such as: senior citizen, insurance company, motor club, hospital service plan, state or federal agency, charitable organization, or a name indicating an entity that provides advice and counsel rather than solicits and sells insurance.

17. How can an agency update its license if the agency's name has changed?

You must first follow your state's procedures for properly changing the agency's business name. If the Federal Employer Identification Number (FEIN) has changed, the agency will need to apply for a new license. If the FEIN is remains the same, once the agency's name has been officially changed with your state, provide copies of official documentation (e.g. articles of incorporations, etc.) and a list of officers/directors/owners and their contact information to AgentLicensing@MyFloridaCFO.com requesting that the agency name be updated. It will take 5-7 business days for the agency's name to be updated. The agency's updated name will be reflected in its MyProfile account and the agency certificate will be printable with the new agency name.

18. Does an insurance agency that is licensed and located in another state have to be licensed as an agency in Florida if it transacts insurance in Florida?

Yes.

19. If a funeral director or direct disposer, or an employee of a funeral establishment that holds a certificate of authority under Florida Statute 497.058 is licensed to sell life insurance policies covering the expense of funeral services and products, does the funeral establishment have to be licensed as an insurance agency?

Yes. Every location where an insurance agent engages in the business of insurance is an insurance agency and every insurance agency is required under Florida Statute 626.112(7)(a), to obtain an insurance agency license or be listed as branch location. There is no exemption for agents that work at funeral establishments or for agents that work for any other business that primarily engages in business transactions unrelated to insurance such as banks and securities broker-deals.

However, per Florida Statute 626.785(1)(d), a life insurance agent that is not affiliated with a funeral establishment may obtain a preneed license with the Bureau of Funeral and Cemetery and may contract with a funeral establishment to sell a preneed contract, "…limited policies of insurance covering the expense of final disposition or burial of an insured in the amount of $21,000..." Therefore, per Florida Statute 626.112(7)(a), the life insurance agent would be required to obtain an insurance agency license, there are no exemptions for agents that contract with funeral establishments.

20. How long do I have to maintain records?

Florida Statute 626.561(2) states "The licensee shall keep and make available to the department or office books, accounts, and records as will enable the department or office to determine whether such licensee is complying with the provisions of this code. Every licensee shall preserve books, accounts, and records pertaining to a premium payment for at least 3 years after payment; provided, however, the preservation of records by computer or photographic reproductions or records in photographic form shall constitute compliance with this requirement. The 3-year requirement shall not apply to insurance binders when no policy is ultimately issued and no premium is collected."

All other records shall be maintained in accordance with Florida Statute 626.748 which states:" Every agent transacting any insurance policy must maintain in his or her office, or have readily accessible by electronic or photographic means, for a period of at least 5 years after policy expiration, such records of policies transacted by him or her as to enable the policyholders and department to obtain all necessary information, including daily reports, applications, change endorsements, or documents signed or initialed by the insured concerning such policies."

21. How do I close my insurance agency?

View our guidance on closing an insurance agency.

I'm selling my agency. May I transfer my agency license to the buyer?
If you sell your insurance agency you can arrange for the business name, assets, liabilities, building and equipment to transfer to the new owner as part of the sale, however, neither your license nor appointment is transferable. A license or appointment issued under the Florida Insurance Code is valid only to the person or entity named and is not transferable to another person. Please see s.626.441,F.S.

Bail Bond Agents

1. What Florida laws regulate bail bond agents?

Chapter 648, Florida Statutes and Chapter 69B-221, Florida Administrative Code.

2. What is a limited surety agent?

The official title of the license issued to bail bond agents in Florida is a limited surety agent license.

3. What are the requirements to be a bail bond agent?

Effective July 1, 2023, the requirements to become a limited surety agent have changed. Please refer to the bail bond qualification page for the new requirements.

4. I was convicted of a felony, but I have had my civil rights restored. Can I be a bail bond agent in Florida?
No. Florida Statutes s. 648.34 states you may not be a bail bond agent if you have ever been convicted of a felony. The restoration of your civil rights does not alter this requirement.

5. Can a law enforcement officer also be a bail bond agent?

No. Florida Statutes s. 648.44 prohibits law enforcement officers, jailers, attorneys, employees of any jail, judges, or anyone having custody or control over prisoners from being a bail bond agent.

6. What is a professional bail bond agent?

A professional bail bond agent uses his/her own money to post bail for defendants by pledging United States currency, United States postal money orders, or cashier's checks as security for the bail bond in connection with a judicial proceeding and receives or is promised money or other things of value for doing so. Professional bail bond agents must be licensed and appointed and complete the same continuing education requirements as a limited surety (bail bond) agent.

7. How long is a temporary bail bond agent license valid?

The temporary bail bond agent license is effective for a maximum of 18 months.

8. When can a temporary bail bond agent apply for a permanent bail bond agent license?

Effective July 1, 2023, any individual licensed by the department as a temporary bail bond agent may file an application for a bail bond agent license and take the required bail bond agent licensure examination if otherwise qualified for licensure.

9. Can I sign the bail bonds in advance for use by my employees?

No. Florida Statutes s. 648.441 prohibits any bail bond agent, MGA, or insurer from furnishing any blank forms, applications, stationery, business cards, or other supplies to any person that is not licensed and appointed as a bail bond agent.

10. What if I do not receive a discharge notice from the court?

The statutes do provide that the bail bond agent will make a written request of the clerk of the court for the county where the bond was posted for the discharge notice on the bond when the bail bond agent has reason to believe the bail bond has or should have been discharged. The clerk of the court then has 7 days to respond to the bail bond agent's request or the bail bond is automatically considered discharged. (s. 648.571, F.S.)

11. What are the laws regarding the types of badges I can use?

The only statute that addresses this is s. 648.44(1)(d), F.S., which limits the identification a limited surety agent may wear on the grounds of a jail, courthouse, or any other area where prisoners are confined to the identification issued by the Department of Financial Services. In addition, the use of a badge by a bail bond agent is regulated the same as any other Florida citizen in Chapter 843, F.S. Specifically, s. 843.085, F.S. speaks to the use of badges or any other indicia of authority.

12. How about out of state bail bond agents making an arrest in Florida for an out of state case?

Out of state agents have very limited powers in Florida, which are granted by the very old (1872) Supreme Court Case, Taylor v. Taintor (83 U.S. 366), and not by Florida law. This law provides that a bail bond agent may enter another state to locate a defendant who was released on a bail bond written by that bail bond agent. If the bail bond agent did not write the bail bond, then they are not authorized to make an arrest. In addition, the bail bond agent must comply with other laws governing the transporting of prisoners across state lines. You are probably more familiar with these laws than us.

13. Can I use a bounty hunter to assist with performing apprehensions or pick-ups?

No. Bounty hunters are not permitted in Florida. (See Florida Statutes s. 648.30)

14. How do I update my addresses?

Log in to your individual MyProfile account to access your personal license record with the department and update it. We suggest you do the same for your bail bond agency account(s) in MyProfile if you have any.

15. How much of the bail bond premium goes to my build-up fund account?

This will depend on your contract with your MGA or surety company. The Florida Statutes do state the maximum amount to be 40% of the premium.

16. Can a bail bond agent carry a weapon when conducting an apprehension?

Neither the temporary bail bond agent license nor the limited surety (bail bond) agent license authorize a person to carry a weapon. The Florida Statutes do not specifically address bail bond agents using weapons while working.

Weapon permits are issued through the Florida Department of Agriculture and Consumer Services. These permits are issued to qualifying citizens of the state of Florida. You will need to follow the laws related to the issuance of your permits, which include not carrying your weapon in certain locations [See Section 790.06(12), Florida Statutes for a complete listing]. You may want to direct any questions you have regarding your permits to them. Their web site is http://www.freshfromflorida.com.

17. What if I have other questions not listed above?

Questions may be emailed to Bail.Bond@MyFloridaCFO.com.

Bail Bond Agency

1. What are the requirements to be a bail bond agency?

Bail bond agencies must be owned only by licensed and appointed bail bond agents and the agency must file the name of the agency with the department, along with the name and license number of the bail bond agent designated as the primary bail bond agent. In addition, the agency must be open and accessible to the public for at least 8 hours during the normal work day, which is defined as 8:00 am to 6:00 pm, Monday through Friday, except legal holidays. All bail bond agents who are members of the same agency must be appointed to represent the same surety companies (insurers). Also, if any agent of a bail bond agency is licensed and appointed as a professional bail bond agent, then all the members in the agency must be so licensed and appointed (please see section 648.55, F.S.).

The following persons or classes cannot be bail bond agents, temporary bail bond agents, or employees of a bail bond agent or a bail bond business and shall not directly or indirectly receive any benefits from the execution of any bail bond:

Jailers or persons employed in any jail
Police officers or employees of a law enforcement agency
Judges, employees of a court, or employees of the clerk of any court
Sheriffs and deputy sheriffs or employees of any sheriff’s department
Attorneys
Persons having the power to arrest or persons who have authority over or control of prisoners
Any person who has been convicted or pleaded guilty or no contest to a felony or a crime involving moral turpitude or a crime punishable by imprisonment of 1 year or more under the law of any state, territory, or country, regardless of whether adjudication of guilt was withheld.
Any person who previously had their license to be a limited surety (bail bond) agent, temporary bail bond agent or professional bail bond agent revoked.

2. I'm opening a bail bond agency. Do you have any tips to help me out?
Please see our guidance on opening a bail bond agency.

3. Does my agency address need to be in my advertisement?

Yes. Florida Statutes s. 648.44 requires the full street address of the bail bond agency to be in every advertisement for that agency, including the business cards for bail bond agents working with the agency. This address must be the same address that is on file with the department.

4. Can I use the word "FREE" in my agency name?

No. Florida Statutes s. 648.44 prohibits the use of the word "free" in any bail bond agency name. It also prohibits the agency from using any wording that implies a reduced premium rate.

5. Do I need a different primary bail bond agent for each agency I own?

Yes.

6. Do I need a different primary bail bond agent for each location of my bail bond agency?

Yes.

7. How do I designate the primary bail bond agent for my bail bond agency?

You are required to have a primary bail bond agent for each bail bond agency you own and for each location of your bail bond agency in accordance with section 648.387, F.S. The primary agent must be a licensed and appointed bail bond agent and may not be the designated primary agent for more than one location.

To do so, you will need to create a secure MyProfile Bail Bond Agency account type (if you have not already). When you do this one-time event, you will be able to do the following actions for that agency:

Add Owner/Officer
Designate and delete a primary bail bond agent.
Add locations
Delete locations
Change an address
Change login information
Email Address Changes
Grant Third-Party Privileges

As the Department strives to go paperless, the switch from paper to electronic is convenient and will allow licensees to update their individual and bail bond agency information via their secure MyProfile accounts in real time online.

This allows the consumer-buying public to find and locate bail bond agents and agencies on the Department’s Licensee Search. This is something that they could not do previously.

Also, now jails and courts will be able to verify that a bail bond agent and agency is registered with the Department after they have designated a primary bail bond agent for a location.

8. How do I update the address with the Department of my bail bond agency?

The agency address can be conveniently updated online via their bail bond agency MyProfile account in real time. While doing so, we encourage you to also log in to your individual MyProfile account and be sure it is updated.

9. Can I use an outside bail bond agent to assist with performing apprehensions or pick-ups for my agency?

Yes. However, the agent you select must be a licensed and appointed bail bond agent.

10. Can I use a bounty hunter to assist with performing apprehensions or pick-ups for my agency?

No. Bounty hunters are not permitted in Florida. (See Florida Statutes §648.30)

11. How long must the agency keep records?

Records must be kept for at least 3 years after the liability on the bond has been terminated.

12. Do the Florida Statutes prohibit a bail bond agent from referring customers to attorneys?

Yes. Subsection s. 648.44(1)(a), Florida Statutes, states bail bond agents and temporary bail bond agents are prohibited from suggesting or advising the use of any particular attorney to represent his or her principal. Any bail bond agent violating this prohibition is subject to suspension or revocation of their license and commits a first-degree misdemeanor subject to applicable criminal penalties.

13. How do I close my bail bond agency?

To close your bail bond agency, you must first contact all insurers you represent. Advise them of your decision and ask them for guidance on the proper handling of the records for the bonds issued for their company. Then send a letter to the department advising of the date your agency will close and the location of your agency's records. This letter must also advise the department of the location of the collateral accepted by your agency and how consumers will receive the return of their collateral at the conclusion of their cases. The letter of termination should be emailed to Bail.Bond@MyFloridaCFO.com.

Please see our guidance on closing a bail bond agency.

14. What happens if the bail bond agency owner dies?

The personal representative or legal guardian may be issued a temporary permit to manage the affairs of the bail bond agency for up to a maximum of 24 months. The person receiving the permit may not act as a bail bond agent, and they must file a revised designation of primary bail bond agent form to identify the bail bond agent-in-charge of that agency.

15. What if I have other questions not listed above?

Questions may be emailed to Bail.Bond@MyFloridaCFO.com.

Continuing Education (CE)

1. What is the continuing education requirement?

The number of continuing education hours required depend on the license type you hold and number of years you've held it. You will find the requirements by license type at CE Requirements by License Type

2. I'm a new agent and would like to know when my continuing education hours due?

Your requirement to complete continuing education hours start the day you are licensed, in which you have a full 24 months, due on the last day of your birth month, and then, every two years thereafter. [Rule 69B-228.220(1)(a), F.A.C.]

Examples:

Licensed - July 11, 2019
Birth Month - June
Compliance start date - July 1, 2020
Due date - June 30, 2022

Licensed - July 11, 2020
Birth Month - November
Compliance start date - December 1, 2020
Due date - November 30, 2022

Licensed - July 11, 2020
Birth Month - July
Compliance start date - August 1, 2020
Due date - July 31, 2022

3. Where do I go to check my continuing education requirement and status?

Go to MyProfile, log in, and click on CE Status. Contact the department at Education@MyFloridaCFO.com if you have questions regarding your requirement.

4. Can I take the same continuing education course next year?

No. You cannot repeat the same course within two (2) years and receive continuing education credit.

5. I'm a non-resident major lines licensee and I'm showing out of compliance. What do I do?

We will verify your home state license and update your continuing education compliance status in our system. If requested by us, you will need to obtain a letter of certification from your home state, or a copy of the National Association of Insurance Commissioners' producer database (PDB) showing your active resident license status, and email it to our department. Please include your Florida license number on your documentation. Note: Major lines are Life, Health, Property & Casualty. Non-residents are not considered noncompliant until 45 days after their Florida compliance date. Please do not send the letter before your Florida compliance cycle has ended.

Email: Education@MyFloridaCFO.com

6. What happens if I do not get my continuing education hours done by the end of my compliance period?

You will first receive a Preliminary Notice of Non-Compliance and a Settlement Stipulation in your MyProfile account approximately 45 days from the end of your compliance period. The Preliminary Notice will list several options to become compliant for your continuing education requirements. Read all the information and proceed according to the option applicable to you.

7. What will happen if I do not sign my Stipulation Agreement and/or do not pay my fine?

Signing the Stipulation Agreement gives you additional time to complete your CE requirement along with options to maintain your appointments and continue transacting insurance business. If you do not sign and agree to one of the options, your appointments will be cancelled.

8. Can I take my continuing education hours online?

Yes. Required hours can be taken online or in a classroom from DFS-approved courses. (Note: There may be some exceptions.)

9. I took a course and don't see it on my transcript. What do I do?

Contact the provider of the course. They are responsible for submitting your course credit to the department. The provider has 21 days after the completion of your course to submit your course credit.

10. I see a course in my transcript but I'm not receiving credit for it. What do I do?

Contact the department at Education@MyFloridaCFO.com or 850-413-3137.

11. How do I get my CE hours reduced?

There are two ways to get a reduction.

1st - Licensed in Florida for more than six years will be an automatic reduction to 16 Electives.

2nd - If you have been licensed for 25 years or more, you get a reduction to six Electives.

This reduction is only applicable to licensees who hold a CPCU or CLU designation or have a degree in Risk Management-Insurance. You must apply for this reduction using form DFS-H2-1109.

12. What do I do if I need an extension for my CE cycle?

First, your reason for requesting an extension must meet the definition of good cause as shown in 69B-228.230(3). “Good cause” means an incident or occurrence which is beyond the control of the applicant and which prevents compliance. Examples of good cause include: Disabling accident, illness, or declared national emergency.

Once your extension request is received by the Department, it may take 2-3 business days for the request to be processed. A response regarding your extension request will be sent via postal service to the mailing address that appears on your MyProfile account.

Extension request form

For more information regarding Continuing Education, please visit our website at Education Information.

eAppoint and Appointments

1. What is eAppoint?

eAppoint is an electronic appointment system for submitting original appointments, appointment terminations, and the renewal of appointments. eAppoint can be found at https://iportal.fldfs.com/eappoint/.

2. What payment methods are there for eAppoint?

eAppoint currently accepts Credit Card payments from VISA, MasterCard, American Express, and Discover.

Note: Credit Card - When entering the credit card information, the addresses must match the cardholder’s billing address. An additional convenience fee is charged by the credit card companies. Convenience fees are $2.45 for applications for licensure and education course providers, and 3.3% of the transaction for appointments.

3. How does eCheck work?

eCheck works similar to paper checks and does not incur a convenience fee. A check’s routing and account number are entered, then withdrawn much like using an account’s debit card.

Please note that some financial institutions require an ACH ID number before allowing an eCheck transaction. If your financial institution requires an ACH ID number, or if you are unsure, you must contact your financial institution prior to selecting the eCheck payment method and provide the following ACH ID number: A272818119 and ACH ID description: DFS AAS Appt.

After providing the ACH ID numbers to your financial institution you will not be required to provide them for future payments made with us. Failure to provide the required ACH ID numbers may result in rejection of payment by your financial institution. If your payment is rejected you will be assessed a service fee of 5% of the face value of the amount, with a minimum of $15, not to exceed $150.

4. Are paper appointments accepted?

No. The department will not accept paper appointments, with the exception of bail bond appointments.

5. I am licensed as a non-resident of Florida. Do I need county appointments?

You only need county appointments if you are physically coming to Florida to conduct business. The insurer must appoint you for every county where you will be transacting insurance while in Florida. Contact the insurer for this.

6. How much is an appointment fee?

Appointments may vary depending on the type of license being appointed. For a breakdown of appointment fees, please visit our Fees and Payments page, and scroll down to appointments.

7. I need to appoint someone or myself, how do I do that?

Appointments must be completed online (except bail bond agents). Depending on the type of license and appointment, the steps to complete the appointment may be different. Please view the appropriate category below for instructions:

Customer Representative: Customer representatives (4-40) must be appointed through the MyProfile account of the supervising general lines agent (2-20) OR the licensed insurance agency where the customer representative works. To do this:

Go to MyProfile and log in to the supervising general lines agent's or the agency's account.
Select the "Access eAppoint" link under "Apply". If you have never used eAppoint, you must first register and will need to select "Register to become an appointing entity".
Once in the eAppoint Workbench, select the required tab (New Appointment, Renew Appointment, or Terminate Appointment) and follow the instructions on the page. You will need to remit the appropriate appointment fee(s). Appointments must be renewed every 24 months during the birth month for the appointee.

Self-Appointing Surplus Lines Agent, Unaffiliated Insurance Agent, Viatical Settlement Broker, Public or All-Lines Adjuster: Self-appointing surplus lines agents, unaffiliated insurance agents, viatical settlement brokers, public or all-lines adjusters must log in to their own MyProfile account and complete an appointment. To do this:

Go to MyProfile and log in to your account.
Select the "Access eAppoint" button under "Apply". If you have never used eAppoint, you must first register and will need to select "Register to become an appointing entity".
Once in the eAppoint Workbench, select the required tab (New Appointment, Renew Appointment, or Terminate Appointment) and follow the instructions on the page. You will need to remit the appropriate appointment fee(s). Appointments must be renewed every 24 months during the birth month for the appointee.

Adjusting Firm Appointing a Public or All-Lines Adjuster: Adjusting firms that are attempting to appoint a public or all-lines adjuster will access eAppoint by logging into their Adjusting Firm’s MyProfile account. To do this:

Go to MyProfile and log in to the adjusting firm’s account.
Select the "Access eAppoint" link under "Apply". If you have never used eAppoint, you must first register and will need to select "Register to become an appointing entity".
Once in the eAppoint Workbench, select the required tab (New Appointment, Renew Appointment, or Terminate Appointment) and follow the instructions on the page. You will need to remit the appropriate appointment fee(s). Appointments must be renewed every 24 months during the birth month for the appointee.

All Other Entities: All other entities will use eAppoint and will log in using an e-mail address and password. To do this:

Go to eAppoint at https://iportal.fldfs.com/eappoint. If you are having a problem logging in, try clicking the "Retrieve lost password" link on the left side of the screen. If this does not resolve the issue, please contact our Licensing Help Line at AgentLicensing@MyFloridaCFO.com.
Once in the eAppoint Workbench, select the required tab (New Appointment, Renew Appointment, or Terminate Appointment) and follow the instructions on the page. You will need to remit the appropriate appointment fee(s). Appointments must be renewed every 24 months during the birth month of the appointee.

8. During the eAppoint process, will a license number be required?

Yes. eAppoint requires you to provide the licensee's Florida license identification number for each appointment. In the event that the type of appointment requires a supervising licensee, the license number of the supervising licensee must be provided also.

9. I have entered a license number and eAppoint states that there is an error, that the license number doesn't exist. How do I proceed?

Verify that the license number you have listed is one letter followed by six (6) numbers. Example: A123456. If you continue to experience this error, please contact the department at AgentLicensing@MyFloridaCFO.com for further assistance.

10. I have entered a license number and eAppoint states that there is an error, that the licensee has a bad email, home, business, and/or mailing address on file. How can this be corrected?

Please contact the licensee to update his or her addresses on file with the department. The licensee will need to access their MyProfile account and perform an address change, this address change will update immediately. Once the address change has been completed by the licensee, you can then access your In Progress Transactions in eAppoint and complete the appointment.

11. I tried to pay for my submittal and now it is in "Pending Completion Transactions" with a payment status of "Error returned from ECP". What does this mean?

This means the payment session was dropped. This could be due to an error on the page, a forced exit from the payment screen, a pop-up blocker preventing the payment screen from loading, etc.
If you receive this error, please wait approximately 2-3 hours. The session will reset and be placed back in your "In Progress Transactions" where you can complete the submittal.

12. What is considered a late appointment?

A late original appointment is any new appointment that has a requested effective date more than 45 days before the submittal date.

For example, if on March 1, 2018, an appointing entity submits a new appointment with an effective date of January 2, 2018 (more than 45 days from the submittal date) for a licensee, the initial/original appointment will be late.

13. What is the penalty for submitting a late original appointment?

A statutory late fee of $250 in addition to the statutory $60 appointment fee for each original appointment filed late.

For example, if on March 1, 2018, an appointing entity submits a new appointment with an effective date of January 2, 2018(more than 45 days from the submittal date) for a licensee, the appointing entity will be required to pay the $60 original appointment fee and the statutory $250 late fee. The fee cannot be charged back to the appointee, if different than the appointing entity. Appointment fees are non-refundable. [See 626.331(4), 626.371, and 648.382, F.S.]

14. I'm reviewing an appointment renewal invoice, why are some appointees listed in red on the renewal invoice?

These appointees have an invalid email or mailing address on file. At the time the invoice is paid, any appointee listed in red will not be renewed and you will not be charged for these.

15. If appointees are listed in red on the appointment invoice, does the invoice get updated when the appointee updates his or her information?

Yes. When an appointee performs an address change under his or her MyProfile, the licensee will be added back to the appointment invoice for renewal. Once the address change has been completed by the licensee, the invoice will reflect the changes immediately.

16. What is the penalty for submitting a late renewal appointment?

A statutory $25 late fee in addition to the statutory $60 appointment fee for each appointment renewed late. The late fees must be paid by the appointing entity and cannot be charged back to the appointee. The fee cannot be charged back to the appointee, if different than the appointing entity. Appointment fees are non-refundable. [See 624.501, 626.331(4), 626.381, and 648.383, F.S.]

For example, if an appointment expiration date were March 31, 2012, the invoice would become available for payment on March 1, 2012, without late fees being assessed. On April 1, 2012, late fees are assessed at $25 per appointment and the invoice remains available for payment until May 15, 2012. On May 16, 2012, if payment has not been received, the appointment is cancelled.

If the appointing entity wishes to reinstate an appointment after it has been cancelled for non-renewal, and no lapse in appointment coverage is desired, the appointing entity will be required to process a new appointment submission and enter the requested effective date. If the new appointment’s requested effective date is more than 45 days from the submittal date, then the statutory $250 late fee described above will be assessed. [See 626.331(4), 626.371, and 648.382, F.S.]

17. I did not complete an appointment renewal invoice in the renewal month. How long will the invoice be available to renew?

The invoice will be available 45 days from the start of the following month. If the invoice is not renewed after this 45-day period, the appointments will be cancelled for non-renewal and an email notification will be sent to the appointing entity and the licensee.

18. What appointment notifications are sent to the appointing entities and/or licensees?

A renewal email notification will be sent 90 days before a renewal month to insurer and firm appointing entities, this does not include self appointees or insurance agencies. Also, the renewal invoice will be posted 90 days before the renewal month for all appointing entities to view in their eAppoint account.

On the first day of the renewal month, an email notification will be sent to all appointing entities informing them that they can now access the appointment(s) that need to be renewed and paid through eAppoint.

If a renewal invoice is paid which lists an appointee that has a bad email address, the appointee's appointment will be terminated at the end of the renewal month. The payment would not include a charge for the appointee with the bad email address.

On the first day of the month following the renewal month, an email notification will be sent to the appointing entity advising payment was not received, late fees have been assessed, and the invoice will continue to be available for 45 more days for payment, otherwise the appointment will be cancelled.

If the appointment is not renewed after this 45-day period, the appointment will be cancelled for non-renewal and an email notification will be sent to the appointing entity and the licensee notifying them of the appointment cancellation along with information on the process for reappointment.

Examinations

1. Passing the state examination does NOT guarantee licensure. You must also submit an application for licensure and meet all the requirements, including the background requirements and the pre-licensing requirements. You cannot take an examination for a license type more than five (5) times in a rolling 12-month period.

2. If I pass an examination prior to applying for licensure, how long do I have to apply to request the state's review and approval for that license?

You have one (1) year from the passing date to apply for that license via MyProfile. After one year, the examination result becomes void and you will need to retest if you still wish to be considered to obtain that license.

3. What if I miss my appointment to take the exam?

You must schedule another examination with PearsonVUE via their website or by telephone at 888-274-2020. You will be charged by PearsonVUE every time this is done.

4. I failed my examination with PearsonVUE, when can I take a re-examination?

You will need to schedule another examination on PearsonVUE's website or by calling PearsonVUE toll-free at 888-274-2020. You cannot take an examination for a license type more than five (5) times in a rolling 12-month period.

5. If I have taken the examination and passed, what do I do next?

If more than one (1) year has NOT elapsed since you passed the examination, you must apply at MyProfile for the same type/class of license as the examination. Please visit our license qualifications page.

6. How can I find a list of PearsonVUE's test sites?

The test sites and times of operation are listed on PearsonVUE's website or you may obtain information by calling Pearson VUE toll free at 888-274-2020.

7. What type of identification do I need to take to the test center?

One form of current unexpired photo-bearing government issued identification, bearing a valid signature.

8. How often are examinations given?

Examinations are administered six (6) days each week at most sites. Visit PearsonVUE's website, or call PearsonVUE toll free at 888-274-2020 to verify dates and times that test sites are open.

9. If I'm in another state, can I take my Florida examination in that state?

Yes, PearsonVUE has a test site in most states. You may check PearsonVUE's website for that information or by calling PearsonVUE toll-fee at 888-274-2020.

10. Will there be special consideration given to an applicant with a disability?

Yes. An applicant with a disability must contact PearsonVUE directly for assistance. You may contact PearsonVUE via their website or by telephone at 888-274-2020.

11. Can I take the examination in a language other than English?

Yes, some exams are available in Spanish. The exams available in Spanish are General Lines Agent [2-20], Health Agent [2-40], Health and Life and Annuity (incl. Variable Contracts) Agent [2-15], and Life and Annuity (incl. Variable Contracts) [2-14].

12. Where can I find more about Florida insurance license examinations?

If you would like more information relating to insurance examinations you may go to PearsonVUE's website or by calling them toll-free at 888-274-2020.

PearsonVUE's website includes a list of test centers that an applicant may utilize in their area for scheduling an examination date and time. The candidate handbook also contains pertinent information relating to examination requirements. The candidate handbook is free of charge.

Any person interested in obtaining a Florida insurance license should obtain a candidate handbook from PearsonVUE first. If you would like to view the breakdown of an examination, you may view the examination content outline. Other exam information is provided by PearsonVUE on their website.

Navigators

For the specific Florida Statutes regarding Navigators, go to Part XIII of Chapter 626.

1. What is a navigator?

"Navigator" means an individual authorized by an exchange to serve as a navigator, or who works on behalf of an entity authorized by an exchange to serve as a navigator, pursuant to 42 U.S.C. s. 18031(i)(1), who facilitates the selection of a qualified health plan through the exchange and performs any other duties specified under 42 U.S.C. s. 18031(i)(3).

2. What are the requirements to be registered in Florida as a navigator?

To be registered as a navigator, the individual must:

Be a natural person at least 18 years of age.
Be United States citizen or legal alien who possesses work authorization from the United States Bureau of Citizenship and Immigration Services.
Submit the application for registration by answering all of the questions and paying the fees to complete the online application.
Provide official certification that he or she has successfully completed all required training by the federal government and has been certified by them as a Marketplace Navigator. The certificate of completion that states it is "not an official certification record" is not sufficient. Please provide the official certificate that has the navigator's unique ID number assigned by HHS and the organization they are employed.
Submit fingerprints for a criminal background check.
Certain crimes would either permanently bar an individual from registration or disqualify an applicant for specified periods.
More information can be found on the qualifications page.

3. What are navigators prohibited from doing?

Soliciting, negotiating, or selling health insurance;
Recommending the purchase of a particular health plan or represent that one health plan is preferable over any other;
Recommending or assisting with the cancellation of insurance coverage purchased outside the Exchange;
Receiving compensation or anything of value from an insurer, health plan, business, or consumer in connection with performing activities as a navigator, other than from the Exchange or an entity or individual who has received a navigator grant under the PPACA.

4. Can you be a non-resident and apply as a navigator?

Yes, there is nothing in the law that prevents non-residents of Florida from applying to be a navigator.

5. How do I apply to become registered as a navigator?

To apply for registration as a navigator, you must go to MyProfile and apply. If you do not already have a MyProfile account, you will need to create one first.

6. I'm a certified application counselor. Do I need to register with the Florida Department of Financial Services as a navigator?

Certified Marketplace Application Counselors are not required to be registered as a navigator by the Florida Department of Financial Services (DFS) as they are not regulated by DFS. If you are a certified Marketplace Application Counselor, please do not apply for registration as a Florida navigator.

7. If I'm interested in becoming a navigator, who should I contact?

You should contact the Navigator entities that are awarded grants by the federal government.

8. If I'm already registered as a navigator in Florida, do I need to re-apply?

No, you do not need to re-apply, re-qualify, or re-register with us. Please be sure to check your registration status via your MyProfile account.

Providers (Education)

To find the specific Rule go to the Florida Administrative code site and search by rule number: https://www.flrules.org/. As most of the rules listed below are given in sentence form, be careful not to search for a rule with a period after it. Once you find the Rule, click on the Microsoft Word icon to open it on your computer.

1. What are the requirements to become a pre-licensing provider?

The requirements to become a pre-licensing provider are found in Florida Administrative Code 69B-227.140.

2. What are the requirements to become a continuing education provider?

The requirements to become a continuing education provider are found in Florida Administrative Code 69B-228.040.

3. Can you be a non-resident and apply as a provider?

Yes, for both pre-licensing and continuing education courses.

4. How do I apply to become a provider?

To apply to become a provider, you must first go to MyProfile and create an account if you have not already. You will need to select Provider. You must enter your social security number and your date of birth on this page. Log in and follow the prompts to complete your online application. The department will send you an e-mail requesting that you check your MyProfile Inbox, which will notify you of your status.

5. What are the requirements to become a pre-licensing instructor?

The requirements to become a pre-licensing instructor are found in Florida Administrative Code 69B-227.160.

6. What are the requirements to become a continuing education instructor?

The requirements to become a continuing education instructor are found in Florida Administrative Code 69B-228.060.

7. How do I apply to become an instructor?

To apply to become an instructor, you must first go to MyProfile and log in to your "Instructor" account using your username and password. If you do not have an account created, you must create one. Log in and follow the prompts to complete your online application.

8. Is there a fee to become a provider or an instructor?

No.

9. Does the Department charge the provider any fees?

Only for continuing education course applications; currently there is no charge for pre-licensing course applications. The fee for continuing education course applications is $100, and an additional processing fee of $2.45 is charged by the credit card companies. VISA, Mastercard, American Express, and Discover are accepted.

10. What are the requirements to have a prelicensing course approved?

Requirements for a prelicensing course are found in Florida Administrative Code 69B-227.170.

11. What are the requirements to have a continuing education course approved?

Requirements for continuing education are found in Florida Administrative Code 69B-228.080.

12. What are the requirements to have an on-line self study continuing education course approved?

Contact the provider of your course. General course requirements are found in Florida Administrative Code 69B-228.080. Additional requirements for an on-line self study continuing education course are found in Florida Administrative Code 69B-228.080(5).

13. How do I submit a course for approval?

To submit a course for approval, you must first go to MyProfile then log in to your "Provider" account with your username and password. Log in and click on the "Apply" tab. Select "Course" and follow the prompts to complete your online application. The department will send you an email requesting that you check your MyProfile Inbox, which will notify you of the status of your course.

14. Do classroom and self study courses expire?

Approval of courses which have not been offered for a period of 2 years will expire. See Florida Administrative Code 69B-228.080(12)(a).

15. Do seminar courses expire?

Seminar courses expire 12 months from their approval date. See Florida Administrative Code 69B-228.080(4)(b).

16. Do 4 Hour Law & Ethics Update courses expire?

4 Hour Law & Ethics Update courses expire 12 months from their approval date. See Florida Administrative Code 69B-228.080(14)(c).

Public Adjusters

1. Can my public adjusting firm appoint a Public Adjuster Apprentice?

Yes, as long as the firm has at least one (1) 3-20 All Lines Public Adjuster appointed that will supervise the Apprentice.

2. How many Public Adjuster Apprentices can work under a 3-20 All Lines Public Adjuster?

An All Lines 3-20 Public Adjuster cannot appoint a Public Adjuster Apprentice. Only a licensed public adjusting firm can appoint Public Adjuster Apprentices and only up to four (4), as long as the firm has at least four (4) 3-20 All Lines Public Adjusters employed to supervise the Apprentices.

3. What are the requirements to qualify for the 3-20 All Lines Public Adjuster license?

You must be licensed in this state as an all-lines adjuster, and appointed on a continual basis for 6 months as a public adjuster apprentice under s. 626.8561, as an independent adjuster under s. 626.855, or as a company employee adjuster under s. 626.856.

4. Does the Public Adjuster Apprentice have to disclose that he/she is an apprentice to the client?

5. Does the supervising Public Adjuster's name need to be on the Apprentice's Business Card?

6. Can a Public Adjuster Apprentice act as a Public Adjuster (in other words there are no restrictions on what we do) but ultimately the supervising Public Adjuster is responsible?

A public adjuster apprentice has the same authority as the licensed public adjuster or public adjusting firm that employs the apprentice, except an apprentice may not execute contracts for the services of a public adjuster or public adjusting firm.

7. How can I obtain a Public Adjuster Apprentice appointment?

You must hold a 6-20 all lines adjuster license and file an original fifty thousand dollar ($50,000) surety bond, using the bond form provided by the Department.

8. Can a Public Adjuster Apprentice work in the field on hurricane disasters?

Yes

9. What are the requirements for opening a Public Adjusting Firm?

They must have a Public Adjusting Firm license and a designated primary adjuster who is a Florida licensed and appointed public adjuster.

10. Can a Public Adjuster Apprentice sign their contracts?

Yes, an apprentice may sign the contract as the soliciting adjuster. However, an apprentice may not sign the contract in a manner which suggests they are executing the contract for the services of a public adjuster or public adjusting firm.

If my 3-20 license is suspended, terminated, or revoked will I have to take an exam once the action is complete?

Yes. Florida Statute 626.865(3) states "The department may not issue a license as a public adjuster to any individual who has not passed the examination for a public adjuster’s license. Any individual who is applying for reinstatement of a license after completion of a period of suspension and any individual who is applying for a new license after termination, cancellation, revocation, or expiration of a prior license as a public adjuster must pass the examination required for licensure as a public adjuster after approval of the application for reinstatement or for a new license regardless of whether the applicant passed an examination prior to issuance of the license that was suspended, terminated, canceled, revoked, or expired."

Title Agents

1. What are the requirements to be licensed as a title insurance (4-10) agent?

Resident agents / Non-resident agents

2. Will a background check be performed?

Yes. Please refer to our Fingerprinting Information page for more information.

3. How do I print my official license or obtain proof of my licensure?

Once you've met all license qualifications, the department will send your approval by email. You may then go to your MyProfile account and print your license. You will not be able to print your license until the department has received a passing result from the testing/examination vendor.

4. What are the requirements to be an agent in charge (or attorney in charge)?

The agent in charge (or attorney in charge) for a title insurance agency must be a licensed and appointed title insurance agent or an attorney in good standing with the Florida Bar. The licensed title insurance agent or attorney must be designated in the title insurance agency's MyProfile account with the Department.

5. Can I pay real estate agents, brokers or others for each piece of business they send to me?

No. The Florida Statutes prohibit title insurance agents and agencies from paying, allowing, giving, or offering to pay, allow or give a direct or indirect inducement for the purchase of title insurance. Paying someone for each piece of business they send to you would be considered an inducement, which would be a violation of the Florida Insurance Code. [Florida Statutes s. 626.9541(1)(h)3.a. and Rule 69B-186.010, F.A.C.]

6. Is there a Florida Statute that requires a title agent to have an E&O and/or fidelity coverage?

No. It's not required for an individual 4-10 title insurance agent license.

7. Can I prepay or advance payment for an estoppel certificate?

The Department believes that it is a violation of subparagraph 626.9541(1)(h)3., Florida Statutes, and subsection 69B-186.010(4)(a), Florida Administrative Code, for a title insurance agent and/or agency to pay for an estoppel certificate without being reimbursed for the expenditure. However, if a title insurance agent and/or agency pay for an estoppel certificate, and the title insurance agent or agency is reimbursed at closing for the estoppel certificate, such advance payment for the estoppel certificate does not constitute an "unlawful rebate." If the closing falls through then the title agent/agency should make efforts to request and obtain reimbursement. The efforts must be documented in the file for Department to review those records to ensure compliance with Florida law.

8. Can I arrange for my bank to sweep my escrow account at night to earn a higher interest rate, which will allow me to offset my overhead expenses?

The Florida Statutes provide detailed directions as to the types of accounts and investments that may be used for escrow accounts. These requirements are the same for the entire day, not just during business hours. Florida Statutes s. 626.8473(3) states the funds must be immediately placed in a financial institution that is a member of the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF). This means the funds may be invested in any type of investment that meets the requirements of Florida Statute s. 17.57 as long as it is an account that is maintained with a member of the FDIC or the NCUSIF.

Florida Administrative Code 69O-186.008 prohibits a title insurance agent or title insurer from endangering the funds entrusted to them through the escrow process. In addition, this section of the code sets forth the procedures for accepting escrow funds and disbursing against the funds collected. A title insurance agent or insurer may only disburse on funds that are in the escrow at the time of the closing, or it is reasonable to expect the money is in the account at that time.

Florida Administrative Code 69O-186.008(4) adds that funds received in excess of the insured amount must be deposited in a financial institution that has a rating not less than the minimum standards established by the Government National Mortgage Association (GNMA). Basically these requirements state the funds must be invested in an account at an institution that is a member of an Automated Clearing House (ACH) or a correspondent of a member. It also must be rated by a suitable rating agency and receive an acceptable rating.

A title insurance agent, agency, or title insurer could allow for escrow funds to be "swept" into another investment account provided:

The funds are still maintained in an account that meets investment guidelines of the Florida Statutes and the Florida Administrative Code.

The buyer and the seller have both agreed at the time of deposit to allow the title insurance agent, agency or title insurer to earn interest on the escrow funds.
The buyer and the seller have agreed to the terms and the provisions of the investment agreement that transfers the funds from the escrow into any other acceptable account.
The investment grade of the account being used meets the Federal and State guidelines.
The funds will be available for disbursement at the time of closing.

Any deviation from the Florida Statutes and the Florida Administrative Code could be considered as grounds for administrative action against the agent, the agency, or the insurer. A person engaging in this type of investment strategy would need to be very careful not to violate the multitude of provisions in the Florida Statutes, the Florida Administrative Code, and possibly some federal regulations.

Unless advance permission has otherwise been granted by the escrow depositor, it has always been the position of this Department that escrow accounts utilized in moving the funds to various other investments, such as sweep accounts, are not in compliance with the Florida Insurance Code, particularly Section 626.8473(3), Florida Statutes, which requires escrow funds to at all times be maintained under protection of the FDIC or NCUSIF. Accordingly, we will pursue action against any licensee that we discover is engaging in this practice.

9. Can I or my agency advertise they offer rebates?

Yes. The advertisement must be truthful and not be misleading. The advertisement cannot say the agency is discounting the title insurance premium, as that is misleading and inaccurate. The agency must charge the promulgated rate for title insurance and then the agency may rebate any portion of their share of the premium. Some examples: Advertising that your agency charges the lowest rates is misleading in that everyone must charge the same rates in Florida. Stating your agency reduces the title insurance premium by 20% is deceptive. You must charge the same rate, but you could provide a rebate of your portion of the premium that equates to 20% of the full premium. The rebate must be given to the person/entity who pays the premium.

10. What if I have other questions that are not addressed here?

You can send your specific question or concern via email to Title@myfloridacfo.com.

Title Agency

All Title Agencies must pay a Title Administrative Surcharge the beginning of every year.

1. What should I know to open a title agency?

Read our tips and guidance on opening a title agency.

2. Are there any restrictions for the name of my title agency?

Yes. Florida Statutes s. 626.8413 states a title agency "…shall not adopt a name which contains the words "title insurance," "title guaranty," or "title guarantee," unless such words are followed by the word "agent" or "agency" in the same size and type as the words preceding them…"

3. Will a background check be performed?

Yes. Please refer to our Fingerprinting Information page for more information.

In addition, insurers appointing a title agency for the first time will secure on the officers of the agency a detailed credit and character report for the 5-year period immediately prior to the date of application for appointment. Information contained in credit and character reports furnished to the department are confidential and exempt from the public disclosure requirements. [s. 626.842, Florida Statutes]

4. What are the requirements to be an agent in charge (or attorney in charge)?

Title agencies (including any branch offices) are subject to the provisions of section 626.0428, F.S. Each branch location that does title insurance work must designate an agent in charge and notify the department of the identity of the person and Florida license number (or Florida Bar number) designated as well as the location of the branch. This is completed through the title agency's MyProfile account.

The agent/attorney in charge can be the same as another location as long as there are not any title insurance transactions taking place while the agent in charge is not present unless another licensed and appointed title agent is present at the location.

5. How do I license a branch location for a title insurance agency?

Title agencies do not require branch licenses. The license of the main office may be used for each branch location, which means that a violation discovered at one branch could affect all the locations. In addition, each branch location that does title insurance work must designate an agent-in-charge and notify the department of the identity of the person designated and location of the branch.

Any branch location(s) transacting insurance under the same name and FEIN of a licensed title agency must be listed as a branch location under the licensed title agency (also known as the parent location/office). Branch locations maintained by the licensed agency, are held to the same standards as a licensed agency and must have an agent-in-charge (or attorney in charge) at all times. The title agency will be able to add and maintain branch locations in their title agency's MyProfile account once their agency license has been approved.

Offices that perform closings only do not need to be licensed and do not need a licensed agent at that location.

The agent in charge can be the same as another location as long as there are not any title insurance transactions taking place while that agent/attorney in charge is not present unless another licensed and appointed title agent or attorney licensed with the Florida Bar is present at the location.

6. What fees may I charge on a settlement statement form or Closing Disclosure?

The only amounts that may be charged by a title agency for issuing the title Insurance and completing the closing are:

Closing Services - "Closing services" means services performed by a licensed title insurer, title Insurance agent or agency, or attorney agent in the agent's or agency's capacity as such, including, but not limited to, preparing documents necessary to close the transaction, conducting the closing, or handling the disbursing of funds related to the closing in a real estate closing transaction in which a title insurance commitment or policy is to be issued.

Title Search - "Title search" means the compiling of title information from official or public records.

Premium - "Premium" means the charge, as specified by rule of the commission that is made by a title insurer for a title insurance policy including the charge for performance of primary title services by a title insurer or title insurance agent or agency.

This means the closing services fee listed on the settlement statement form is to include all the fees and charges made by the agency to close and complete the transaction. Consumers should not be charged additional fees in addition to the amount listed as the closing or settlement services fee on the HUD-1, Closing Disclosure, or other settlement statement form.

Examples of fees that should not be listed as separate line items on the form include, but are not limited to:

Postage and handling
Notary services
Copies
Digital documents
Document preparation fees
Document storage or warehousing fees
Electronic conversion of documents to CD or DVD formats

Agencies that charge additional fees as separate line items may be found to be engaging in deceptive practices against Florida consumers in violation of the Florida Statutes. The penalty for violations such as this can be as strong as suspending or revoking the license of the agent and the agency involved in the practice. Agencies may provide consumers with an itemized listing of the fees and charges that comprise the closing services fee being charged. This itemized listing would be in addition to the settlement statement form and the amounts included would need to total to the same number listed on the settlement statement form as the closing services fee.

No other charges are authorized by the Florida Statutes to be charged by a title insurance agent or agency for these services.

7. Can I use an outside notary to assist with performing closings for my title agency?

Yes. However, this would be an expense of the title agency and not an expense of the closing file. The cost for this service should be calculated in the closing services fee recorded on line 1100 of the settlement statement form. The notary service is conducting the closing which is clearly defined in Florida Statute s. 627.7711(1)(a) as being part of the closing services. By hiring an outside vendor to assist your title agency, you are assuming the responsibility for that vendor as if they were your employee. The title agency will be held responsible for the closing transaction performed by the outside vendor.

8. Are there any fees I must pay each year for my title agency?

Each licensed title insurance agency must pay $200 as an administrative surcharge by the end of January in the current year. Failure to pay this amount can result in administrative action and/or a fine being assessed against the license of the title agency.

9. Where do I send surcharge payments?

Surcharge payments must be paid via the title agency's MyProfile account.

10. What if I forget to pay the surcharge?

Failure to pay the surcharge on or before January 30th may result in administrative action and/or a fine in addition to the original surcharge amount. Agencies that fail to pay the surcharge may have their license and appointments suspended until the surcharge and fines are paid.

11. Can I prepay or advance payment for an estoppel certificate?

12. How do I close my title agency?

To close your title agency, you must first contact all title insurers of your title agency is appointed to represent. Advise them of your decision and ask them for guidance on the proper handling of the records for the policies issued for their company. The Florida Statutes require the title agent or insurer to maintain records pertinent to the issuance of the title policies. If your title agency will be closed, the insurer may need to make arrangements for maintaining your files. The title agency escrow account needs to remain open until all outstanding checks have cleared. Checks outstanding for more than 5 years can be turned over to the Bureau of Unclaimed Funds. Please visit the Bureau's website for more information: https://www.fltreasurehunt.gov.

The agency's surety bond must remain in effect and unimpaired as long as the agency is appointed by a title insurer pursuant to s. 626.8419(1)(d), F.S.

Once you have made the arrangements noted above, send a letter on your title agency letterhead to the Department of Financial Services, along with your license. The letter must indicate you want the title agency's license terminated and must include the last day business was conducted by the title agency.

The letter of termination can be sent to AgentLicensing@MyFloridaCFO.com or mailed to:
Florida Department of Financial Services
Division of Insurance Agent and Agency Services
Bureau of Licensing
200 East Gaines Street
Tallahassee FL 32399

13. Does a title agency need to have a surety bond?

A title insurance agency must have obtained a surety bond in an amount not less than $35,000 made payable to the title insurer or title insurers appointing the agency. The surety bond must be for the benefit of any appointing title insurer damaged by a violation by the title insurance agency of its contract with the appointing title insurer. If the surety bond is payable to multiple title insurers, the surety bond must provide that each title insurer is to be notified in the event a claim is made upon the surety bond or the bond is terminated. The surety bond must remain in effect and unimpaired as long as the agency is appointed by a title insurer. The agency must provide written proof to the appointing title insurer or insurers on an annual basis evidencing that the surety bond is still in effect and unimpaired.[s. 626.8419(1)(c), F.S.] Please do not send your bond to the Department.

14. Is there a Florida Statute that requires a title agency to have E&O insurance?

Yes. The title insurance agency is required to carry errors and omissions insurance in an amount acceptable to the insurer appointing the agency. The amount of coverage may not be less than $250,000 per claim with a deductible no greater than $10,000. [Florida Statutes s. 626.8419(1)(b)]

15. Does a title agency need to have a fidelity bond?

Yes. Title insurance agencies must obtain a fidelity bond in an amount not less than $50,000 and acceptable to the insurer appointing the agency. [Florida Statutes s. 626.8419(1)(a)]

16. How long must I maintain records?

Title agents must maintain records for seven (7) years pursuant to Florida Statute s. 627.7845(2) which state:

"The title insurer shall cause the evidence of the determination of insurability and the reasonable title search or search of the records of a Uniform Commercial Code filing office to be preserved and retained in its files or in the files of Its title insurance agent or agency for a period of not less than 7 years after the title insurance commitment, title insurance policy, or guarantee of title was issued. The title insurer or agent or agency must produce the evidence required to be maintained by this subsection at its offices upon the demand of the office. Instead of retaining the original evidence, the title insurer or the title insurance agent or agency may, in the regular course of business, establish a system under which all or part of the evidence is recorded, copied, or reproduced by any photographic, photo static, microfilm, micro card, miniature photographic, or other process which accurately reproduces or forms a durable medium for reproducing the original."

17. How long must I maintain escrow records?

Escrow Account records must be maintained in accordance with Florida Administrative Code 69O-186.009 which states "Every licensed title insurance agent shall maintain a monthly reconciliation of every escrow account required to be maintained pursuant to Florida Statute 626.8473 and shall, on a monthly basis, report such reconciliation together with appropriate supporting documentation to each title insurer which licensed the agent during the reconciliation period. The reconciliation shall be supported by appropriate documentation, including a monthly bank statement, a list of all outstanding checks as of the date of the reconciliation which is not shown on the monthly bank statement, and a trial balance of the escrow ledger records required to be maintained by subsection (2). Licensed title insurance agents and title insurers shall provide a copy of the monthly escrow account reconciliation to the Office upon Its request. Such records shall be maintained by the title insurer for a period of five years." Also part (2) states, "Every licensed title insurance agent shall maintain a separate ledger card for each real estate closing transaction for which funds are received in escrow. The ledger card shall contain chronological entries of dates and amounts of moneys received and disbursed including the name of the remitter and payee and each check number issued on such escrow account. Such records shall be maintained by the title insurance agent for a period of three years. The ledger card required by this rule may be maintained in computer storage with a print-out available upon request of a title insurer or the Office.

18. Can our agency pay real estate agents, brokers or others for each piece of business they send to us?

No. The Florida Statutes prohibit title insurance agents and agencies from paying, allowing, giving, or offering to pay, allow or give a direct or indirect inducement for the purchase of title insurance. Paying someone for each piece of business they send to you could be considered an inducement, which would be a violation of the statutes. [Florida Statutes s. 626.9541(1)(h)3.a. and Rule 69B-186.010, F.A.C.]

19. Who selects the title agency to be used to issue the title insurance?

The person paying the premium.

20. Can I help the brokers that send me business by holding open houses for them?

No. While we understand your desire to assist the people that are assisting you to increase your business, holding open houses for brokers would be viewed as an unfair trade practice and an inducement for the future sale of title insurance.
[Florida Statutes §626.9541(1)(h)3.a. and Rule 69B-186.010, F.A.C.]

21. Can a title insurance agency advertise?

Yes. The ad must be honest and accurate. It should promote the title agency and not any other business. If the title agency places an ad that solicits customers for any other business, it may be viewed as an unfair trade practice and an inducement for the future purchase of insurance.

22. Can the title insurance agency advertise they offer rebates?

23. Who can act as an Escrow agent in Florida?

Only a Licensed Title Insurance Agent; Florida Bar Licensed Attorney; Financial Institution; or Licensed Real Estate Agent.

24. Can I arrange for my bank to sweep my escrow account at night to earn a higher interest rate, which will allow me to offset my overhead expenses?

The Florida Statutes provide detailed directions as to the types of accounts and investments that may be used for escrow accounts. These requirements are the same for the entire day, not just during business hours. Florida Statutes §626.8473(3) states the funds must be immediately placed in a financial institution that is a member of the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF). This means the funds may be invested in any type of investment that meets the requirements of Florida Statute §17.57 as long as it is an account that is maintained with a member of the FDIC or the NCUSIF.

Florida Administrative Code 69O-186.008 prohibits a title insurance agent or title insurer from endangering the funds entrusted to them through the escrow process. In addition, this section of the code sets forth the procedures for accepting escrow funds and disbursing against the funds collected. A title insurance agent or insurer may only disburse on funds that are in the escrow at the time of the closing, or it is reasonable to expect the money is in the account at that time.

Florida Administrative Code 69O-186.008(4) adds that funds received in excess of the insured amount must be deposited in a financial institution that has a rating not less than the minimum standards established by the Government National Mortgage Association (GNMA). Basically these requirements state the funds must be invested in an account at an institution that is a member of an Automated Clearing House (ACH) or a correspondent of a member. It also must be rated by a suitable rating agency and receive an acceptable rating.

A title insurance agent, agency, or title insurer could allow for escrow funds to be "swept" into another investment account provided:

The funds are still maintained in an account that meets investment guidelines of the Florida Statutes and the Florida Administrative Code.

The buyer and the seller have both agreed at the time of deposit to allow the title insurance agent, agency or title insurer to earn interest on the escrow funds.
The buyer and the seller have agreed to the terms and the provisions of the investment agreement that transfers the funds from the escrow into any other acceptable account.
The investment grade of the account being used meets the Federal and State guidelines.
The funds will be available for disbursement at the time of closing.

25. What if I have other questions that are not addressed here?

You can send your specific question or concern via email at Title@myfloridacfo.com.

Title Closings

1. Where do "related title services" get recorded on the Closing Disclosure form?

Related title services are now referred to as "Closing Services" under s. 627.7711 (1)(a), Florida Statutes, and should be recorded as closing costs on the Closing Disclosure form. The examination of records is not a part of closing services; it is considered part of the primary title services. Similarly, the title search is not included in the definition of "Related Title Services" and is defined separately.
Closing Services include:

Services performed by the licensee
Preparing the documents for the closing
Conducting the closing
Disbursing the funds from the closing

According to the Consumer Financial Protection Bureau (CFPB), the closing services fee would be shown on the Closing Disclosure form under Total Closing Costs (J), and they could also be shown as part of the Due From Borrower at Closing section (K). We recommend consulting the instructions provided by the CFPB for completing their forms.

2. Where do I record the recertification fee?

The recertification of a title is considered part of the primary title services, which are a component of the premium and a separate fee is not charged to the consumer.

3. Can I charge a separate fee for postage, mailing, or overnight shipping?

The Florida Statutes defines "closing services" as including preparing the documents and conducting the closing. Therefore, any charges related to these functions should be included in the agency's closing services fee. The definition of "primary title services" includes performing the steps necessary to issue the title insurance policy. The insurer's liability for the gap period does not end until the proper documents are recorded in the county where the property is located. Therefore, the expense incurred by the agency to get these documents should be included in that agency's share of the title insurance premium. In many closings, the lender will require certain debts of the buyer to be satisfied as part of the loan process. In order for the title agency to disburse these funds from the escrow account within the payoff deadline, it may be necessary to send the payments to each creditor using a wire transfer, overnight or express mail services. While these payoffs are being disbursed from the escrow account, the primary purpose of the payments is to satisfy a lender requirement not a title insurance requirement. The department would not object to separate charges being made to the buyer for this service, as long as the agency did not add an amount to the charges from the provider of these services. The department would expect these charges to be recorded in the sections identified by the CFPB for the proper completion of their Closing Disclosure form.

4. Can I charge for the examination of the title records?

The examination or evaluation of records to determine the insurability of a property is considered part of the primary title services, which are a component of the premium and a separate fee is not charged to the consumer.

5. How do I properly record a rebate my agency is giving?

To assure proper credit to the appropriate party, any rebate of the agent's share of the premium should be noted on the Closing Disclosure form on any line not assigned to another topic. It is important to note Florida Statutes s. 627.780 requires licensees to "quote, charge, accept, collect or receive" only the promulgated rate (premium), which should be recorded on the Closing Disclosure form in the proper area as defined by the Consumer Financial Protection Bureau (CFPB).

6. Can I charge for the storage of the closing records?

The Florida Statutes require the title insurance agency and the title insurance company to retain copies of the records related to the issuance of the title insurance policy and the funds disbursed from the escrow account. These fees should not be passed on to the consumer as separate line item charges. The title insurance agency may include the cost of storage of these records in the agency's calculations for their closing services fee.

7. How long do I have after a closing to record the deed and mortgage?

The liability to the insurance company remains open ended until the deed and the mortgage are properly recorded. Therefore, it is in everyone's best interest to record these documents as soon after the closing as possible. Failing to record the documents could create a claim for the insurer, which could put the agency in violation of the Florida Statutes, as well as jeopardize the agency's contract to represent that title insurer.

8. Does the “Florida Insurance Premium Disclosure & Settlement Agent Certification" form have to be used in every closing that involves a Closing Disclosure (CD) with an owner's and lender's policy?

First, the form itself is optional. If the licensee has another form, or forms, that will provide the same information, then they may use those forms.

Second, there are actually three areas covered in the rule and each could be the determining factor as to when the information MUST be provided.

If the transaction includes a lender’s and an owner’s policy AND the premiums listed on the CD prepared for the lender, or on behalf of the lender, are not correct, then the title agent must provide the correct premiums and compare these premiums to the premiums shown on the CD.
If the title agent will be holding any escrow funds, then the escrow authorization is to be completed proving the parties did authorize the agent to disburse the funds for the transaction.
Since the majority of the forms will be prepared, or could be prepared by someone other than the title agent, we need the title agent to make an affirmation that he/she does agree to be bound by directions of the transaction. Previously, we would tie the title agent to the transaction by virtue of the agent/agency completing the forms, which meant they must have known what was expected of them.

9. Who is a "licensee's designee"?

A licensed title agent does not always handle the closing for every transaction in a title agency. They do delegate some of the closing functions to their employees, especially when they are very busy. In some cases, multiple closings may be taking place at the same time. The title agent is still involved in the oversight of the transaction, but he/she may not be the one actually completing the form. To address this issue, we use the term “licensee’s designee.”

The rule and the form still require the title agency to be identified and the Department of Financial Services will hold that agency and the title agent in charge of that agency accountable for the acts of all the employees in that agency. (§626.0428(4)(d), F.S.)

10. Could a “licensee’s designee” be an unlicensed person?

Yes, an unlicensed person may be the one doing the actual closing paperwork. We will still hold the agent in charge accountable, and we will still require that only a licensed and appointed title insurance agent employed by a licensed and appointed title agency can sign the title insurance policies.

11. A Title (Settlement) Agent in a purchase/sale/finance transaction must close in compliance with three main transaction-governing documents: (1) the sales contract, (2) the loan closing instructions, and (3) the title commitment. The manner in which the TILA-RESPA Integrated Disclosure (TRID) Rule is written automatically creates a discrepancy between title premium disclosed and Florida promulgated rates. In turn, a third form [e.g., closing or settlement statement] will be necessary in order to properly administer escrow.

We disagree that the TRID Rule automatically creates a discrepancy between the title premium disclosed and Florida promulgated rates. For example, if the owner does not purchase an owner’s policy, the premium quoted on the Closing Disclosure (CD) will be the same as the premium promulgated by the insurance code.

An exact comparison of the title insurance premiums for each policy to the title insurance costs reported on the Closing Disclosure form would be required when there is a discrepancy. This additional information may be supplied as part of the forms the agency would routinely supply to every consumer, or an additional document may be used, like our Florida Insurance Premium Disclosure & Settlement Agent Certification form, to explain how the premiums will actually be disbursed as required under the Florida Insurance Code.

12. Is the language "I agree to disburse the escrow funds in accordance with the terms of this transaction and Florida law" referring to the Buyer/Seller contractual agreement ["terms of this transaction"] as to who pays owner’s policy and lender’s policy premium?

It is referring to the entire transaction, which includes the requirements of (6) of the rule. In other words, if the Closing Disclosure (CD) lists the cost for the lender’s and owner’s policies different from the actual promulgated premiums in Florida, then the title agent is responsible to make the disclosure of the promulgated premiums to the consumer and compare them to what was provided on the federal forms. This disclosure and comparison is considered part of the title insurance transaction, which is a part of the real estate closing transaction. The title agency must verify that all parts of the real estate transaction are being followed.

This is also the reason why the rule clearly states this is considered part of the insurance transaction. It is not a part of the loan transaction. The lenders are not required to follow the rule, unless they are licensed, appointed and acting as the title insurance agency in the transaction.

13. Are signatures required on all escrow disbursement transactions?

Yes, signatures are required for all transactions.

14. For transactions that do not fall under the TILA_RESPA Integrated Disclosure (TRID) rule, does the DFS require that another type of written form authorization regarding escrow administration [collection/disbursement] be signed by all parties [Buyers, Borrowers, Sellers, and Lenders] involved in the transaction? Here, “Lender” could be a private investor or an institutional Lender on a “TRID-Exempt” Transaction.

The use of our form is optional. The title agent can either use our form and mark out the premium comparison chart, or they can use their own form to satisfy the requirements of the rule.

We did adopt a form as part of our rule to provide a form that could be used if the agency did not have access to an acceptable form on its own. We also did it as a way to show that all the information required could be provided on a single page. It is not required that this form be used in any transaction.

15. Why the specification "completed by the lender? While most large lenders have decided to prepare the Consumer [Borrower] Closing Disclosure [CD] due to liability issues relating to content, timing, and delivery, the TILA_RESPA Integrated Disclosure (TRID) rule requires Settlement Agents to follow the same rules when the Creditor [Lender] chooses to outsource CD preparation and/or delivery.

The lender is held responsible for the CD. If the lender allows someone else to complete the form, they are assuming the liability for the actions of that entity under the CFPB. The title agent must disclose to the consumer(s) the correct premium being charged for the title insurance policies being sold. Please keep in mind, the settlement agent must certify, “I have reviewed the Closing Disclosure, the settlement statement, the lender’s closing instructions and any and all other forms concerned with the funds held in escrow, including any disclosure of the Florida title insurance premiums being paid, and I agree to disburse the escrow funds in accordance with the terms of this transaction and Florida law.” If this is not done, then the department will look to take action against the licenses of the title insurance agency and the agent in charge of that agency.

16. On a refinance or second mortgage transaction where the lender’s policy premium disclosed on the Closing Disclosure (CD) is the same as the actual Florida-promulgated lender’s policy premium, is the title agency required to provide the additional information cited in 69B-186.008(6)(a), F.A.C.?

No, there would be nothing to disclose to the consumers since the premiums are the same as the cost shown on the Closing Disclosure (CD) form.

17. Is there a reason Rule 69B-186.008, F.A.C.’s text only requires comparison of the lender’s policy rather than the lender’s policy and the owner’s policy? The sample form has room for comparing both premiums.

Yes, there is a reason. The premium for the owner’s policy does not change under the Florida insurance code. The lender’s policy may be any amount between $25 and the full promulgated rate allowed under 69O-186.003, Florida Administrative Code.

We had discussions with the CFPB on the Closing Disclosure (CD) form and the way they require the premiums to be disclosed. The CFPB was very quick to remind us that they are NOT quoting premiums, they are quoting costs. Their position is the owner’s cost that is listed is the difference between the cost of a policy covering the lender’s risk and the total to the consumer for all title insurance policies. This is the reason for requiring the comparison of the premiums to the amounts listed on the CD form. We want the consumer to understand that the total costs listed on the CD form equal the total premiums for the policies being purchased as calculated using the promulgated rates.

18. When a company creates their own escrow disbursement disclosure form, do the owner’s policy and lender’s policy endorsements need to be shown separately?

The provisions of the rule would be what apply. The rule states, “The cost comparison must clearly disclose the premiums being charged for all endorsements in addition to the base policy.” The separation of the endorsements was a recommendation made to us as part of the hearing held August 5, 2015 on this rule. Since this looked to be a pro-consumer issue, and the industry was supporting it to be disclosed in this manner, we agreed and we revised our form to include the comparison chart you see today. So, yes, we will be looking for every agency to disclose the premium comparison information in a very similar manner.

19. Does the rule, 69B-186.008, F.A.C., or the sample DFS form alter the title insurance premium?

This rule does not change the title premium rates or provisions of 69O-186, F.A.C.

20. Must a copy of the form that satisfies the requirements of 69B-186.008, also be given to a "Borrower" in a refinance transaction?

Yes. In a refinance transaction, the borrower is both the seller and the buyer, because the owner of the property is agreeing to sell the property to him/herself at a higher price using the funds from the lender.

21. Why does the rule say that any form or forms used to satisfy the rule are considered a part of the title insurance and escrow transaction and they are not a loan document?

Under the federal rules, the lender is responsible for the loan transaction, and overseeing all parts of the loan transaction, including the completion of the forms. The insurance is provided by the title agency for the title insurance company they are appointed to represent. These forms are considered to be a part of the insurance transaction being provided by the title insurance agency. The Department will not look to the lender to be responsible for these activities.

Title Escrow Accounts

1. Can I deposit escrow funds into an interest bearing account?

You may if the buyer and the seller have given you permission in writing to do so prior to depositing the funds. However, the escrow funds are considered fiduciary funds the agency is holding for benefit of another. Any interest earned on these funds should be addressed in this permission and it should note that the agency may not accept the interest unless both parties have voluntarily released their right to that interest.

2. Are Sweep accounts allowed for escrow funds?

As a general rule, no. Most sweep accounts remove funds from an escrow account at the end of the business day to be invested in other investments that are not federally insured as required by §626.8473. In addition, the buyer and the seller must agree in advance to allowing the funds to earn interest.

3. Is there any way to get a sweep account that is allowed?

Yes. Every buyer and every seller must agree to allow the escrow funds to earn interest prior to those funds being deposited into the account to be swept. In addition, the sweeping of the account must only result in the funds being transferred into an account that meets the requirements of §626.8473. A separate escrow account must be maintained for escrow funds accepted as part of a closing where the buyer or the seller did not agree to allow the account to earn interest.

4. What is the penalty if I allow my escrow account to be swept into an account that does not comply with §626.8473?

If the escrow funds being moved are greater than $300, the transfer may be considered a felony crime and punishable as provided in §775.082, 775.083, or 775.084, depending on the total amount of funds involved.

5. Can a title insurance agency accept escrow funds for a transaction that does not include the issuance of title insurance?

The Florida Statutes do not prohibit the acceptance of escrow funds outside a title insurance transaction and Florida Statutes §877.101 specifically identifies licensed title insurance agencies as an entity that may accept escrow funds.

PLEASE NOTE: Accepting escrow funds for a transaction outside one that results in the issuance of a title insurance policy may not be covered under your agency's surety and fidelity bonds. You should also check your agency's errors and omission coverage, too.

6. If there is less than $10 in the escrow account, can a check be written to the title insurance agency to bring the balance to "0"?

No. Escrow funds are received by an agency in a fiduciary capacity. All funds must be properly accounted and paid to appropriate party. Failing to disburse any amount from the escrow fund is a violation of Florida Statutes §626.8473.

7. Is it okay to enter into an agreement where my title insurance agency keeps any amount due to the consumer that is less than $25?

The Florida Statutes defines all funds received by a title insurance agent or agency received from others as escrow funds to be trust funds held in a fiduciary capacity. The title insurance agent or agency is not the owner of these funds. A title insurance agent, title insurance agency or a title insurer is entitled to receive only the amounts listed on the settlement statement form for the services or products that entity provided. Anyone that retains any portion of a fee that the consumer overpaid must refund that overage immediately. The Department of Financial Services does not recognize any waiver of the provisions of the Florida Statutes that relate to funds held in escrow and/or disbursed from escrow by a licensee.

A title insurance agent or agency must immediately return any amounts that are due to the consumer, regardless of the amount.

Florida Statutes §626.8473(7):
A title insurance agent, or any officer, director, or employee thereof, or any person associated therewith as an independent contractor for bookkeeping or similar purposes, who converts or misappropriates funds received or held in escrow or in trust by such title insurance agent, or any person who knowingly receives or conspires to receive such funds, commits:

If the funds converted or misappropriated are $300 or less, a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.
If the funds converted or misappropriated are more than $300, but less than $20,000, a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
If the funds converted or misappropriated are $20,000 or more, but less than $100,000, a felony of the second degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
If the funds converted or misappropriated are $100,000 or more, a felony of the first degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

8. How do I handle payment of fees for electronic recording of title documents?

Section 695.27, Florida Statutes, permits the electronic transmission and recording of real property documents. Electronic filings may require that an electronic payment accompany the documents to be recorded. The consumer should be charged the exact amount of the fee charged to the agency to record the documents pursuant to Section 626.8473, Florida Statutes. The exact amount of the fee charged by the county for an electronic recording is recorded the same as the fee for recording paper documents. However, any fees paid to a third party to file documents electronically on behalf of the title agent or agency must be included in the calculation of the closing services fee that is shown on the settlement statement for that transaction.

There is no statutory prohibition on the electronic payment of title fees directly to a title agency's account, nor do the statutes address how the agency should handle such payments. If a title agency chooses to accept electronic payments for these services, such payments may be made to escrow or other accounts, following the guidelines below. Electronic recording payments are trust funds subject to the provisions of Section 626.8473, Florida Statutes; agencies must hold trust funds in a fiduciary capacity and the funds are at no time the property of the title agency or agent.

Warranty Licenses