Florida DFS / DOAH Insurance License Defense

The situation

David, 45, is a licensed Florida insurance agent, licensed in Property & Casualty. He sold homeowners policies in the Fort Lauderdale area for 15 years. In 2021 he placed several clients with a now-insolvent Florida insurer at policies with $200,000 dwelling coverage limits. After the insurer's 2023 insolvency, clients filed complaints with DFS alleging David "misled them into believing they had full replacement cost coverage" when the policies were actual cash value.

In March 2026 DFS served David with a Notice of Agency Action, Proposed License Revocation: Misrepresentation (Florida Insurance Code §626.9541(1)(a)), Misrepresented policy terms to three insured clients regarding coverage type (ACV vs. RCV).

David has 21 days from receipt to file an Election of Proceeding. His deadline: April 2026.

(a) He must choose: informal vs. formal hearing. If David elects an informal hearing, he is NOT disputing the facts, he is only presenting mitigating circumstances. This is appropriate if he accepts that a technical violation occurred but wants to argue for a lesser penalty. If David disputes that he ever misrepresented coverage (which he does, his clients signed the policy applications listing ACV), he must elect a formal DOAH hearing where DFS must prove the misrepresentation by clear and convincing evidence.

(b) DFS bears the burden of proof by clear and convincing evidence. David's client signed a policy application that clearly indicated ACV coverage. The insurer's binder also listed ACV. The clients' claim that David "told them they had full replacement cost" is a recollection, DFS must prove that David made the specific representation and that it was false, not merely that the clients had a different understanding. Documentation defeats recollection-based claims.

(c) The DOAH ALJ is independent. The ALJ has no institutional loyalty to DFS and applies the facts to the Insurance Code without DFS's prosecutorial bias.

(d) Howell, Buchan & Strong quoted David $7,500 retainer for "Election of Proceeding filing, DOAH pre-hearing conference, discovery, and full hearing." The Election of Proceeding + fact-dispute defense structure + documentation chronology is largely self-executable for the initial filing, with the contested DOAH hearing potentially requiring counsel.

Who receives this

Florida licensed insurance agents, adjusters, and agency principals receiving DFS Notice of Agency Action for proposed license revocation, suspension, or civil penalty. Primary: Florida P&C agents receiving DFS misrepresentation or coverage disclosure enforcement actions arising from the 2021–2023 Florida property insurance market crisis.

Why the agency will not advise you

DFS cannot advise licensees on contesting its own enforcement actions. DOAH provides no licensee defense strategy. Howell Buchan & Strong and Jimerson Birr are the known FL DFS incumbents ($5,000–$15,000 retainer). The 21-day Election of Proceeding deadline (slightly shorter than most states' 30-day windows) creates acute time pressure.

Key facts, with sources

• Florida DFS can revoke, suspend, or impose civil penalties on Florida insurance agent licenses. When DFS serves a Notice of Agency Action (or charging document), the licensee must file an 'Election of Proceeding' or petition within 21 days of receipt. Missing the 21-day deadline waives the right to a hearing and the enforcement action becomes final. The licensee may elect: (a) an informal hearing before DFS (no fact dispute, mitigating circumstances only) or (b) a formal DOAH hearing (fact dispute, ALJ conducts trial-like proceeding). For formal hearings, the case is referred to the Florida Division of Administrative Hearings (DOAH), an independent agency, and assigned to an independent ALJ. DFS bears the burden of proof by clear and convincing evidence. The ALJ issues a Recommended Order; DFS issues the Final Order. Source: Florida DFS 90-Day Denial: What Insurance Agents Should Know — Howell, Buchan & Strong · Florida Division of Administrative Hearings (DOAH) · Florida Insurance Agency and Agent License Requirements — Jimerson Birr
• Florida's property insurance market crisis (2022–2025), major insurer exits (Farmers, Bankers, United P&C), Citizens Property Insurance growth, and multiple legislative reforms, has significantly elevated DFS enforcement activity against insurance agents. Agents who sold property policies during the peak crisis period (2021–2023) are facing increased DFS scrutiny arising from post-loss client complaints about coverage limits, policy amendments, and agent representations. Florida has approximately 300,000 licensed insurance agents and adjusters, creating a large potential enforcement target pool. The DOAH docketing system shows elevated DFS-referred contested case filings in 2024–2025. Source: Defending Your Professional License Before Florida Regulatory Boards — Jimerson Birr · Florida Division of Administrative Hearings — Case Search

When to bring in a professional

Self-serve responses fit routine cases: clear facts, amounts a business can absorb, and a deadline still ahead of you. Bring in a licensed professional when the amount at stake is large relative to their fee, the facts are genuinely disputed, criminal exposure is possible, or the deadline has already passed. A short paid consultation to sanity-check your plan is often worth it even when you handle the filing yourself.

All sources for this guide

1. Florida DFS 90-Day Denial: What Insurance Agents Should Know — Howell, Buchan & Strong
2. Florida Division of Administrative Hearings (DOAH)
3. Florida Insurance Agency and Agent License Requirements — Jimerson Birr
4. Defending Your Professional License Before Florida Regulatory Boards — Jimerson Birr
5. Florida Division of Administrative Hearings — Case Search