Section 626.903, Florida Statutes Only Prohibits Action By Unauthorized Insurer - Not Insured

In Advantage General Insurance Co., Ltd. v. KILN/QBE International (4D08-1944), the Fourth DCA reversed the circuit court's order dismissing the action.

Advantage sold insurance to Sunshine and bought reinsurance from KILN/QBE. KILN/QBE argued that section 626.903, Florida Statutes, prohibits suits by unauthorized insurers and, therefore, prohibits Advantage from bringing the lawsuit. The circuit court agreed and held the plaintiff could not bring a suit in Florida because it lacked a certificate to sell insurance in Florida.

The Fourth DCA reversed because in the action brought by Advantage, Advantage was the insured. The statute was created to protect the insured, in this case Advantage, and not the insurer.

The court concluded that while Advantage could not have brought an action against Sunshine, its insured, it could maintain an action as the insured of KILN/QBE.