Florida § 626.173 - Insurance agency closure; cancellation of licenses.

§ 626.173. Insurance agency closure; cancellation of licenses.

(1) If a licensed insurance agency permanently ceases the transacting of insurance or ceases the transacting of insurance for more than 30 days, the agent in charge, the director of the agency, or other officer listed on the original application for licensure must, within 35 days after the agency first ceases the transacting of insurance, do all of the following: (a) Cancel the insurance agency’s license by completing and submitting a form prescribed by the department to notify the department of the cancellation of the license. (b) Notify all insurers by which the agency or agent in charge is appointed of the agency’s cessation of operations, the date on which operations ceased, the identity of any agency or agent to which the agency’s current book of business has been transferred, and the method by which agency records may be obtained during the time periods specified in ss. 626.561 and 626.748. (c) Notify all policyholders currently insured by a policy written, produced, or serviced by the agency of the agency’s cessation of operations; the date on which operations ceased; and the identity of the agency or agent to which the agency’s current book of business has been transferred or, if no transfer has occurred, a statement directing the policyholder to contact the insurance company for assistance in locating a licensed agent to service the policy. This paragraph does not apply to title insurance, life insurance, or annuity contracts. (d) Notify all premium finance companies through which active policies are financed of the agency’s cessation of operations, the date on which operations ceased, and the identity of any agency or agent to which the agency’s current book of business has been transferred. (e) Ensure that all funds held in a fiduciary capacity are properly distributed to the rightful owners. (2)(a) The department may, in a proceeding initiated pursuant to chapter 120, impose an administrative fine against the agent in charge or the director or officer of the agency found in the proceeding to have violated any provision of this section. A proceeding may not be initiated and a fine may not accrue until after the person has been notified in writing of the nature of the violation and the person has been afforded 10 business days to correct the violation but has failed to do so. (b) A fine imposed under this subsection may not exceed the amounts specified in s. 626.681 per violation. (c) The department may, in addition to the imposition of an administrative fine under this subsection, also suspend or revoke the license of the licensee fined under this subsection. (d) In imposing any administrative penalty or remedy provided under this subsection, the department shall take into account the appropriateness of the penalty or remedy with respect to the size of the financial resources and the good faith of the person charged, the gravity of the violation, the history of previous violations, and other matters as justice may require.