Florida Statute 626.561 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXVII
INSURANCE

Chapter 626
INSURANCE FIELD REPRESENTATIVES AND OPERATIONS

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F.S. 626.561

626.561 Reporting and accounting for funds.—

(1) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, insurance agency, customer representative, or adjuster in transactions under the license are trust funds received by the licensee in a fiduciary capacity. An agent or insurance agency shall keep the funds belonging to each insurer for which an agent is not appointed, other than a surplus lines insurer, in a separate account so as to allow the department or office to properly audit such funds. The licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto.

(2) 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. All other records shall be maintained in accordance with s. 626.748. The 3-year requirement shall not apply to insurance binders when no policy is ultimately issued and no premium is collected.

(3) Any agent, insurance agency, customer representative, or adjuster who, not being lawfully entitled thereto, either temporarily or permanently diverts or misappropriates such funds or any portion thereof or deprives the other person of a benefit therefrom commits the offense specified below:

(a) If the funds diverted or misappropriated are $300 or less, a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.

(b) If the funds diverted 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.

(c) If the funds diverted 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.

(d) If the funds diverted 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.

History.—s. 235, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 3, ch. 81-282; ss. 2, 3, ch. 81-318; ss. 202, 217, 807, 810, ch. 82-243; ss. 50, 206, 207, ch. 90-363; s. 4, ch. 91-429; s. 3, ch. 95-340; s. 232, ch. 97-102; s. 25, ch. 98-199; s. 57, ch. 2002-206; s. 943, ch. 2003-261; s. 18, ch. 2005-257.

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Amendments to 626.561

Arrestable Offenses / Crimes under Fla. Stat. 626.561

Level: Degree
Misdemeanor/Felony: First/Second/Third

S626.561 3a - EMBEZZLE - MISAPPLY INSURANCE PREMIUM 300 DOLLARS OR LESS - M: F

S626.561 3b - EMBEZZLE - MISAPPLY INSUR PREMIUM OVER 300 UND 20K DOLS - F: T

S626.561 3c - EMBEZZLE - MISAP INSUR PREMIUM 20K UNDER 100K DOLS - F: S

S626.561 3d - EMBEZZLE - MISAPPLY INSUR PREMIUM 100K DOLS OR MORE - F: F

Annotations, Discussions, Cases:

Cases Citing Statute 626.561

Total Results: 10

Russell v. State, Department of Insurance

Court: Fla. Dist. Ct. App. | Date Filed: 1996-02-16T00:00:00-08:00

Citation: 668 So. 2d 276, 1996 Fla. App. LEXIS 1356, 1996 WL 65650

Snippet: belonging to an insurer, in violation of sections 626.561, 626.611 and 626.621, Florida Statutes (1993). … the funds constituted a violation of sections 626.561(1), 626.611(10) and 626.621(4) and warranted suspension…suspension of his insurance license. Section 626.561(1)1 provides criminal penalties for an agent’s refusal…belonging to the insurer. We note that under sections 626.561(1) and 626.611(10), the Department must establish… insured, or other person entitled thereto.” § 626.561(1), Fla.Stat. (1993). . "Misappropriation

Ganter v. Department of Insurance

Court: Fla. Dist. Ct. App. | Date Filed: 1993-05-28T00:00:00-07:00

Citation: 620 So. 2d 202, 1993 Fla. App. LEXIS 5886, 1993 WL 177935

Snippet: insured, or other person entitled thereto. [Section 626.-561(1), Florida Statutes] (b) Willful misrepresentation

Central Ins. Underwriters, Inc. v. National Ins. Finance Co.

Court: Fla. Dist. Ct. App. | Date Filed: 1992-05-19T00:53:00-07:00

Citation: 599 So. 2d 1371

Snippet: Central was liable for conversion under section 626.561, Florida Statutes (1989), which states that "

Keegan v. Ennia General Insurance Co.

Court: Fla. Dist. Ct. App. | Date Filed: 1991-12-17T00:00:00-08:00

Citation: 591 So. 2d 300, 1991 Fla. App. LEXIS 12525, 1991 WL 267949

Snippet: against appellant for the violation of section 626.561(1), Florida Statutes (1989). That right arose upon

Copeland Insurance Agency, Inc. v. Home Insurance Co.

Court: Fla. Dist. Ct. App. | Date Filed: 1987-02-12T00:00:00-08:00

Citation: 502 So. 2d 93, 12 Fla. L. Weekly 497, 1987 Fla. App. LEXIS 6698

Snippet: remit the premiums collected for Home. Section 626.561(1), Florida Statutes (1985) provides: All premiums…necessary element to prove a violation of section 626.561(1). Liability arises upon a showing that a person…necessary element to prove a violation of section 626.561. It should have done so in its thorough analysis

National Ben Franklin Life Insurance Corp. v. Cohen

Court: Fla. Dist. Ct. App. | Date Filed: 1985-02-20T00:00:00-08:00

Citation: 464 So. 2d 1256, 10 Fla. L. Weekly 463, 1985 Fla. App. LEXIS 12501

Snippet: was. The insurance company also cites Sections 626.561, 626.611, 626.753, 626.794, 626.9541,1 627.403,

Hartnett, Inc. v. DEPARTMENT OF INS. OF STATE

Court: Fla. Dist. Ct. App. | Date Filed: 1983-05-10T00:53:00-07:00

Citation: 432 So. 2d 155

Snippet: misconduct which violated the provisions of Section 626.561, Florida Statutes (1981) whether those acts were… due Southern American in violation of Section 626.561, Florida Statutes (1981) of the Insurance Code.

Bowling v. Department of Ins.

Court: Fla. Dist. Ct. App. | Date Filed: 1981-02-12T23:53:00-08:00

Citation: 394 So. 2d 165

Snippet: charges gain at least some specificity from Section 626.561, which imposes responsibility on insurance agents…interplay of two statutes quoted above: Section 626.561, characterizing as "trust funds ... received…violation draws essential elements from Section 626.561, a criminal statute which punishes the proscribed…applicable regular course of business," Section 626.561(1), Bowling should have forwarded a check for the

Brewer v. INSURANCE COM'R & TREASURER

Court: Fla. Dist. Ct. App. | Date Filed: 1981-01-19T23:53:00-08:00

Citation: 392 So. 2d 593

Snippet: Insurance Commissioner found a violation of Section 626.561(1) which deals with an agent's reporting and

Drew v. Insurance Commissioner & Treasurer

Court: Fla. Dist. Ct. App. | Date Filed: 1976-04-30T00:00:00-07:00

Citation: 330 So. 2d 794, 1976 Fla. App. LEXIS 15086

Snippet: for funds belonging to insurers or others (F.S. 626.561). *796Count II: In explaining to a customer and…626.611 (7), 626.611(9), 626.611(10), 626.621(2) and 626.561. “Charge I” is fully incorporated by reference.