626.561
Reporting and accounting for funds.
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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.
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.
Notes of Decisions
Cited in 12
cases, 1976–1996 · leading case: Clarendon National Insurance v. Barrett (In Re Barrett)
Clarendon National Insurance v. Barrett (In Re Barrett) (1993)
“Specifically, Clarendon alleged premiums collected by Florida General were trust funds received in a fiduciary capacity pursuant to § 626.561 Fla.Stat. (1987). Clarendon asserted Barrett’s involvement as a corporate officer in Florida General rendered Barrett personally liable…”
Bowling v. Department of Ins. (1981)
“All these charges gain at least some specificity from Section 626.561, which imposes responsibility on insurance agents for "reporting and accounting for funds": (1) All premiums, return premiums or other funds belonging to insurers or others received by an agent.”
Intercontinental Life Ins. v. Good (In Re Good) (1983)
“§ 626.561 Florida Statutes states in pertinent part: “(1) all premiums, return premiums or other funds belonging to insurers or others received by an agent, solicitor or adjustor in transactions under his license shall be trust funds so received by the license in a fiduciary…”
Hartnett, Inc. v. DEPARTMENT OF INS. OF STATE (1983)
“The Department of Insurance alleged that, under that statute, the individual defendants could be liable for wrongful acts of misconduct which violated the provisions of Section 626.561, Florida Statutes (1981) whether those acts were committed by the defendants or by those…”
Central Ins. Underwriters, Inc. v. National Ins. Finance Co. (1992)
“National argued that Central was liable for conversion under section 626.561, Florida Statutes (1989), which states that "[a]ll premiums, return premiums, or other funds belonging to insurers or others received by an agent, soliciter, or adjuster in transactions under his…”
HSSM 7 Ltd. Partnership v. Bilzerian (In Re Bilzerian) (1993)
“See Fla.Stat.Ann. § 626.561 (1993). There have also been Statutes governing the construction industry by declaring that funds received by a contractor were trust funds held for the benefit of suppliers, labor and material.”
Brewer v. INSURANCE COM'R & TREASURER (1981)
“In most of the charges sustained against Brewer, the Insurance Commissioner found a violation of Section 626.561(1) which deals with an agent's reporting and accounting for a client's funds.”
Keegan v. Ennia General Insurance Co. (1991)
“We find that the trial court correctly determined that appellee had a private right of action against appellant for the violation of section 626.561(1), Florida Statutes (1989).”
Drew v. Insurance Commissioner & Treasurer (1976)
“621 [2]); and (h) He failed to properly account for funds belonging to insurers or others (F.S. 626.561). *796 Count II: In explaining to a customer and charging a contingency fee of .”
Copeland Insurance Agency, Inc. v. Home Insurance Co. (1987)
“Further, Hartnett does not discuss willfulness or intent as being a necessary element to prove a violation of section 626.561. It should have done so in its thorough analysis of this provision, had it thought specific intent was a necessary element.”
Russell v. State, Department of Insurance (1996)
“” § 626.561(1), Fla.Stat. (1993). . "Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment.”
Department of Insurance v. Jaar (1988)
“The Administrative Complaint also charged with Respondent with *204 a violation of Section 626.561(1), Florida Statutes (1987), governing the handling of trust monies, but the Department also abandoned that charge at final hearing and in the Petitioner’s Proposed Recommended…”
— 626.561(1) — 8 cases
Bowling v. Department of Ins. (1981)
“All these charges gain at least some specificity from Section 626.561, which imposes responsibility on insurance agents for "reporting and accounting for funds": (1) All premiums, return premiums or other funds belonging to insurers or others received by an agent.”
Intercontinental Life Ins. v. Good (In Re Good) (1983)
“§ 626.561 Florida Statutes states in pertinent part: “(1) all premiums, return premiums or other funds belonging to insurers or others received by an agent, solicitor or adjustor in transactions under his license shall be trust funds so received by the license in a fiduciary…”
Clarendon National Insurance v. Barrett (In Re Barrett) (1993)
“Specifically, Clarendon alleged premiums collected by Florida General were trust funds received in a fiduciary capacity pursuant to § 626.561 Fla.Stat. (1987). Clarendon asserted Barrett’s involvement as a corporate officer in Florida General rendered Barrett personally liable…”
Brewer v. INSURANCE COM'R & TREASURER (1981)
“In most of the charges sustained against Brewer, the Insurance Commissioner found a violation of Section 626.561(1) which deals with an agent's reporting and accounting for a client's funds.”
Keegan v. Ennia General Insurance Co. (1991)
“We find that the trial court correctly determined that appellee had a private right of action against appellant for the violation of section 626.561(1), Florida Statutes (1989).”
— 626.561(3) — 1 case
Clarendon National Insurance v. Barrett (In Re Barrett) (1993)
“Specifically, Clarendon alleged premiums collected by Florida General were trust funds received in a fiduciary capacity pursuant to § 626.561 Fla.Stat. (1987). Clarendon asserted Barrett’s involvement as a corporate officer in Florida General rendered Barrett personally liable…”
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