Carrier Representation

HeritageBridge Financial Solutions (“HBFS”) works with a network of licensed insurance agents, some of whom operate as independent contractors. These agents may be affiliated with HBFS or with other independent entities, including but not limited to CFN, a legally distinct organization. This section outlines the terms under which our agents represent various insurance carriers, as well as the rules governing such representation in accordance with Florida law and applicable federal regulations.

1. Licensing and Appointment

All agents offering services through HBFS must hold an active 2-15 license (Life, Health, and Variable Annuity) issued by the Florida Department of Financial Services (DFS) or equivalent licensing authority in their respective state. Agents are required by law to be formally appointed by each insurance carrier for which they offer products and must maintain those appointments in good standing.

No agent is permitted to solicit, sell, or service insurance products on behalf of any carrier until such appointment is processed and approved by DFS. All appointments must be active, and agents must remain compliant with all continuing education and renewal requirements.

2. Independent Contractor Status

Many agents affiliated with HBFS operate as independent contractors, not as employees. As such, they may maintain appointments with multiple insurance carriers, provided they have proper licensure and contractual authorization. These agents are free to offer competitive solutions from various insurers and are not limited to a single company unless explicitly stated by contract.

HBFS does not impose exclusivity on independent agents unless required by specific partnership agreements or product lines. Each agent’s affiliation with HBFS does not restrict them from representing other agencies or carriers, provided all activities remain compliant with applicable regulations and contractual obligations.

3. Carrier and Agency Agreements (continued)

Agents who represent multiple carriers must do so within the boundaries of formalized written contracts. These agreements govern:

• The scope of representation

• Compensation structure, including commission rates and overrides

• Fiduciary duties to the client and to the carrier

• Compliance with marketing and advertising regulations

• Termination clauses, including cause and notice requirements

• Any non-solicitation, non-compete, or exclusivity terms applicable to that specific carrier

Agents must not misrepresent the nature of their relationship with any carrier. They may not use a carrier’s name, logo, or branding without prior written authorization. Misrepresentation or failure to disclose the limits of authority may result in termination of carrier appointments, legal action, or loss of licensure.

4. Fiduciary Duty and Client Disclosure

All agents, whether directly contracted with HBFS or operating through affiliate organizations like CFN, must act in the best interest of the client when recommending insurance or financial products. When multiple product options are available, the agent must conduct appropriate due diligence to ensure the recommendation aligns with the client’s financial goals, health status, and coverage needs.

Agents are required to disclose their role as a licensed professional, identify the insurance carriers they represent, and be transparent about any compensation or commissions earned. In addition, all agents must maintain the confidentiality of client information and comply with applicable state privacy laws, federal data protection laws, and carrier-specific compliance protocols.

5. Prohibited Conduct

Agents and agencies operating under or affiliated with HBFS are expressly prohibited from engaging in:

• Selling products for carriers without an active appointment

• Rebating or offering inducements in violation of Florida Statute §626.572 or §626.9541

• Using misleading titles (e.g., “financial advisor”) without appropriate licensure

• Participating in churning (unnecessarily replacing policies) or twisting (misrepresenting products to replace existing policies)

• Sharing commissions or compensation with unlicensed individuals

• Using unapproved marketing materials or making unsubstantiated claims about products or returns

Violations may result in termination of contracts, revocation of licensure, fines, or civil/criminal penalties.

6. Medicare and Regulated Product Representation

Agents offering Medicare Advantage, Medicare Supplement, or Part D plans must comply with Centers for Medicare & Medicaid Services (CMS) guidelines, which include:

• Annual CMS-approved training and carrier certification

• Strict limitations on commissions, bonuses, and client contact protocols

• Use of CMS-approved marketing materials only

• Prohibition of offering additional incentives outside of CMS guidelines

Violations of CMS regulations may result in removal from carrier programs, loss of licensure, and federal sanctions.

7. Recordkeeping and Audit Readiness

Agents must maintain accurate records of all policy sales, client communications, product comparisons, and disclosures for a minimum of five (5) years, in accordance with Florida and federal insurance laws. HBFS reserves the right to audit files to ensure compliance. Agents may also be subject to audits by insurance carriers, the Florida Department of Financial Services, or federal regulators (e.g., CMS or the IRS).

8. Tax and Reporting Responsibilities

Independent agents are typically compensated on a 1099 basis and are responsible for managing their own tax obligations, including self-employment taxes and quarterly filings. Where compensation is routed through a legal entity (e.g., an LLC or S-Corp), the entity must be properly registered, and any commissions must be paid in accordance with both the carrier’s contract and DFS licensing rules.

9. Legal Liability and Indemnification

Agents are personally responsible for complying with all applicable state and federal laws, including but not limited to insurance regulations, advertising rules, and consumer protection laws. Any violations committed by the agent—whether intentional or due to negligence—may result in personal liability.

HBFS disclaims all liability for the conduct of independent agents who act outside the scope of their agreement or violate applicable laws or regulations. Agents agree to indemnify and hold harmless HBFS, its affiliates, and carrier partners from any claims, damages, or losses resulting from such violations.