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Flashcards in Florida State Laws Deck (12)
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1
Q

Chief Financial Officer (CFO)

A

Directly responsible for the regulation of insurance agents.
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Oversees the following divisions:
-Division of Accounting and Auditing
-Division of Consumer Services
-Division of Insurance Agent and Agency Services
-Division of Public Assistance/Insurance Fraud
-Office of Consumer Advocate for Insurance
-Division of Unclaimed Property

2
Q

Financial Services Commission

A

Appoints the Commissioner of the Office of Insurance Regulation (OIR) and also appoints the Director of the Office of Financial Regulation (OFR).

3
Q

Who is responsible for the administration of state insurance laws?

A

CFO, Financial Services Commission and Director of the Office of Insurance Regulation.

4
Q

Office of Insurance Regulation (OIR)

A

Protects the public through oversight of insurance company solvency.

5
Q

Office of Financial Regulation (OFR)

A

Functions as a CRIMINAL JUSTICE AGENCY + conducts investigations to protect consumers from financial entities that violate state laws and rules.

6
Q

Department of Financial Services (DFS)

A

Also will conduct investigations of applicants.

7
Q

What penalties can the CFO impose on an agent for insurance code violations?

A
  • Failure to answer a subpoena or order - $1,000
  • Violation of cease and desist order - Up to $50k
  • Willful violation of insurance code - 2nd degree, imprisonment for up to 60 days
  • Fraudulent conduct is committing twisting or churning - 1st degree misdemeanor (imprisonment for up to 1 year)
  • -Non-willful violation -$5k fine per violation
  • -Willful violation - $75k fine per violation
  • Willfully submit fraudulent signatures - 3rd degree felony (imprisonment up to 5 years)
  • -Non-willful violation - $5k fine per violation
  • -Willful violation - $75k fine per violation
8
Q

Division of Consumer Services

A

Responsible for assisting consumers, answering general insurance and financial questions from its toll-free helpline, regional service centers, and websites.
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Report alleged violations of law by by persons licensed to the appropriate regulators.
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Other duties:
-Oversee the insurance industry based on the insurance code
-License insurance companies and establish financial requirements
-Guard against unauthorized insurance activities
-Regulate insurance company activities, policy forms, provisions, and rates

9
Q

Insurance Fraud

Who handles Insurance Fraud?

A

Will refer any records to show a violation to state or federal law enforcement agencies.

10
Q

Receivership

A

Monitors the financial condition of insurers and rehabilitates or liquidates insurers as needed.

11
Q

Unclaimed Property

A

Written notice must be sent to apparent owner of unclaimed property, which refers to property abandoned for 3-5 years.
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Unclaimed property remains unclaimed.

12
Q

Office of Insurance Regulation

A

PRIOR APPROVAL exist when insurers are not allowed to implement a rate or rate change until it has been approved by the insurance department. The office has 30 days to approve or disapprove or request a change to the filing.
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RATES for all insurance classes must not be excessive, inadequate, or discriminatory.