NU Online News Service, Nov. 21, 8:15 a.m. – The Florida Department of Insurance says the state’s life and health insurance agents will soon be able to sell certificates of deposit from federally chartered savings banks without being registered to sell securities.
Florida defines a CD as a security, and it normally requires companies and individuals to register with the state before selling securities.
But the Florida Legislature recently adopted a law, Section 517.12(20) of the Florida Statutes, which lets insurance agents sell savings bank CDs without registration, the Florida insurance department says.
Florida insurance regulators will be responsible for disciplining agents if there are any problems with agents selling the savings bank CDs, the Florida department says.
The department is now developing the regulations it needs to implement the new law.
The text of the bulletin, Bulletin 02-006, is available on the Web at http://www.doi.state.fl.us/Companies/bulletins/bulletns.htm