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General Lines- Florida State Laws Questions with Solutions
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General Lines- Florida State Laws
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General Lines- Florida State LawsChief Financial Officer (CFO) - answer elected, head of DFS, directly responsible for
regulation of insurance agents, member of financial services commission (governor's
cabinet)
Financial Services Commission - answer composed of governor, CFO, attorney general,
and commissioner of agriculture, appoints OIR
Office of Insurance Regulation (OIR) - answer regulates licensing, rates, policy forms,
market conduct, claims, certificates of authority; protecting public through oversight of
insurance company solvency
Office of Financial Regulation (OFR) - answer regulates banks, credit unions, saving
association, international bank agencies, financial service companies, and securities
industry
Bureau of Financial Investigations - answer functions as criminal justice agency,
conducts investigations to protect consumers from financial entities that violate state
laws and rules
Insurance Contract - answeran agreement enforced by law in which insurer agrees to
pay a certain amount of money upon the death of the insured, policyholder agrees to
pay premium
Insurance Transaction - answersolicitation, negotiations, or effectuation of a contract
Insurer - answerevery person engaged as indemnitor, surety, or contractor in the
business of entering into contracts of insurance or of annuity
Admitted(Authorized) insurer - answerAn insurance company authorized and licensed to
transact business in a particular state.
Nonadmitted/Unauthorized Insurer - answermay only do business in the state under
special circumstances, no protection for Floridians who buy from these companies, not
permitted to sell through mail
Unlicensed Entities - answerRegulatory Concerns: potential for criminal activity, adverse
economic impact on authorized insurers, potential for unpaid claims due to dishonesty
and lack of sound actuarial decisions, state or federal guaranty funds do not pay unpaid
claims, future insurability issues for insureds, lack of oversight by state or federal
regulatory agencies
, Certificate of Authority - answerNo one can act as an insurer and no insurer or its
agents, attorneys, subscribers, or representatives can directly or indirectly transact
insurance in Florida unless authorized
Certificate of Authority not required - answerauthorized reinusrance transactions, life
insurance policies or annuity contracts issued by an alien insurer which cover only
persons who aren't residents of the US and aren't illegal and must meet certain captial
requirements
Licensing Purpose - answerin order to be familiar with Florida insurance laws
Agent - answertransacts business related to selling property and casualty insurance to
individuals
Public Adjuster - answerperson hired for a fee on behalf of an insured or third party
claimant to negotiate and settle claim
All-lines adjuster - answerperson who is self employed or employed by an insurer or an
independent adjusting firm and determines the amount of a claim and settles the claim
Agency - answerbusiness location that employs individuals to engage in any activity
must be performed by licensed insurance agent, license renewed every 3 years,
licensed and full time agent in charge of each agency location
Agent - answermust be appointed with a carrier in order to earn a commission or deliver
a policy
Customer Service Representative - answerappointed by person holding a Florida
general lines agent license, general lines insurance agency, and surplus lines agent if
surplus lines agent obtained surplus lines license based upon licensure as general lines
Fiduciary Capacity - answerholds a position of special trust and confidence
Fiduciary Responsibilities - answerAccepts premiums, returns premiums, offers advice
on financial security, turn money over to insurer immediately
Sharing of Commisions - answermust have a license and appointment for the type of
insurance sold
Florida Insurance Guaranty Association Division - answer2 separate accounts: auto
liability and auto physical damage account and all other eligible insurance account
Contractual Obligations of FIGA - answerexcess of $100 and doesn't exceed $300,000
per policy claim and $200,000 for the portion of covered homeowner's insurance claim
which relates only to damage to the structure and contents
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