Florida to Grant Temporary Agent Licenses Amid Testing Freeze

The Florida Division of Agent and Agency Services will resume its ability to begin processing insurance agent licenses despite the closure of testing centers around the state, under a directive from Florida CFO Jimmy Patronis.

This directive issued April 17 gives insurance agencies the ability to hire new agents who have completed all the other requirements to obtain a license but are unable to take the state exam because of the COVID-19 pandemic, DFS said in a statement. These individuals will be thoroughly vetted by the Division of Agent and Agency Services and if they meet the requirements to obtain a license, the Division would issue applicants a temporary license pending examination.

Applicants must pass both criminal and administrative background checks and must have completed state approved pre-licensing insurance education. The directive also provides additional consumer protections by requiring insurers to take full responsibility for the acts of these new licensees. Finally, those who are granted a temporary license pending examination will only be able to work when doing so under the direct supervision of a more seasoned agent.

The third-party examination provider contracted by DFS to provide examinations has closed all examination centers in response to the directives from the Center for Disease Control, and agents with pending applications have been unable to secure licenses required by Florida law to operate in the state, the directive states.

The directive suspends the examination requirements “in order to afford flexibility to applicants for insurance agent licensure who are otherwise qualified for issuance of a Florida insurance agent license, but impacted by the closure of authorized examination sites.” Issuance of a temporary license as provided by law shall be dependent upon applicants meeting all other requirements of the Florida Insurance Code.

The holder of a temporary license issued pursuant to the order will be appointed by a sponsoring insurer which assumes responsibility for all acts of the temporary licensee and may only solicit insurance under the direct supervision of a licensed and appointed insurance agent authorized to sell the type of insurance being solicited. The order further states all temporary licenses will expire six months after the date they are issued or upon issuance of a permanent license of the same type and class, whichever occurs first.

DFS will cease issuing temporary licenses pursuant to this order 14 days from the date upon which at least half of the examination centers reopen, or upon expiration of the governor’s executive order 20-52, including any extensions thereto, whichever occurs sooner.

“The licensing of insurance agents came to a complete standstill when a testing vendor shut their doors due to COVID-19,” Patronis said. “This has occurred during a time when insurance agencies are experiencing an uptick in demand. Since insurance is such an important part of Florida’s economy, we wanted to create a process where folks can start working while consumers are still protected.”