Florida law allows planners to give insurance advice without insurance company

A new law in Florida allows financial planners in the state to discuss insurance coverage with their clients without having to be affiliated with a provider — a move that will help feeonly planners maintain their compensation definition.

On July 1, the state created a new kind of insurance license that applies to investment advisers who are not associated with an insurance company. Previously, the state required that advisers be appointed by an insurance company in order to provide advice about insurance. Under the law, advisers will be able to obtain a Florida insurance license through “self appointment” and give insurance advice, even if they don’t intend to sell insurance.

Florida’s approach means fee-only financial planners can address a client’s insurance needs without running afoul of Certified Financial Planner Board of Standards Inc. rules that prohibit them from being  affiliated with any firm that charges commissions.

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