Proposed Unlawful Inducement Rules Withdrawn; Florida Division of Agent and Agency Services To Continue Using Existing Regulation
Dec 29, 2010
The Florida Department of Financial Services (“DFS”), Division of Agent and Agency Services (“Division”), advised today, December 29, 2010, that it is withdrawing proposed Rules 69B-210.005 and 69B-210.010, which relate to the identification of specific unfair methods of competition or unfair or deceptive acts or practices involving the business of insurance that are prohibited by Section 626.9541, F.S.
To view a copy of today’s Notice of Withdrawal, click here.
According to the Division, although all interested parties have worked to come to an agreement on language designed to provide applicable guidance to insurance agents and agencies, enough differences of opinion yet exist that could result in these proposed Rules not being adopted. Meanwhile, the Division has indicated that it will continue to regulate using the current statutory language.
In regard to Proposed Rule 69B-210.010, which relates to unlawful inducements as applicable to title insurance, the Division stated its readiness to work with the Florida Office of Insurance Regulation in order to implement concurrent unlawful inducement Rule language.
As drafted, proposed Rule 69B-210.005, entitled “Unlawful Inducements, Generally,” would define the term “unlawful inducement” and also afford examples of acts and practices that are unlawful inducements to purchase insurance as prohibited by Florida law. Proposed Rule 69B-210.010 relating to title insurance would provide for similar regulation.
Meanwhile, in response to a request by the Florida Legislature’s Joint Administrative Procedures Committee, the DFS determined that legislative ratification will not be required if the proposed Rules are ultimately approved, inasmuch as they are not subject to Chapter 2010-279, Laws of Florida (House Bill 1565), which substantially amends rulemaking procedures pertaining to statements of estimated regulatory costs.
To access a copy of the proposed Rule texts as withdrawn today, click here and here.
Should you have any questions or comments, please contact Colodny Fass.