Fla. Lawmakers OK Bill Enabling Banks To Hire Agents To Market Insurance.

National Underwriter Property & Casualty-Risk & Benefits Management, May, 1999 by ADAMS, MICHAEL H.

The Florida Legislature has approved a bill that repeals the state's anti-affiliation law, clearing the way, after Gov. Jeb Bush's almost certain signature, for banks in all communities to directly employ agents for the purposes of marketing insurance. By a unanimous vote, lawmakers acted to end what had been one of the biggest political battles in the state's insurance and banking communities.

Specifically the bill would remove a restriction that only allows banks to affiliate with agents and market insurance in communities of 5,000 individuals or less. The restriction was based on a 1996 U.S. Supreme Court decision in Barnett Bank v. Gallagher, which opened the door for banks to market property and casualty lines of insurance. "We are extremely pleased...

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