State Governments’ Role
For most of our nation's history, regulation of insurance has been considered a matter for state regulation. For many agents, their initial interaction with insurance regulators concerns state insurance licensing requirements and the general requirement for continuing education. In addition to agent licensing, the state insurance departments' main responsibilities include the oversight and solvency of insurers' operations as well as their marketing practices.
Despite their lack of uniformity, state insurance laws contain common themes. Through their laws and regulations, the states establish rules of practice that provide compliance and ethical guidelines by spelling out what an agent is permitted to do or prohibited from doing. Some of the more common rules deal with the:
¨ requirement that only approved policies may be sold,
¨ prohibition against misrepresentation,
¨ guidelines that must be followed in the replacement of coverage,
¨ returning of premiums or other consideration to a client, i.e. rebating, and
¨ requirement that agents perform their duties in a timely way.
Specific Florida laws are explored in greater detail in Chapter 3.
Chapter 2 Contents
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