Florida State Laws

Question 1

Chief Financial Officer (CFO)

Answer 1

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

Question 2

Financial Services Commission

Answer 2

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

Question 3

Who is responsible for the administration of state insurance laws?

Answer 3

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

Question 4

Office of Insurance Regulation (OIR)

Answer 4

Protects the public through oversight of insurance company solvency.

Question 5

Office of Financial Regulation (OFR)

Answer 5

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

Question 6

Department of Financial Services (DFS)

Answer 6

Also will conduct investigations of applicants.

Question 7

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

Answer 7

• 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

Question 8

Division of Consumer Services

Answer 8

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

Question 9

Insurance Fraud

Who handles Insurance Fraud?

Answer 9

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

Question 10

Receivership

Answer 10

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

Question 11

Unclaimed Property

Answer 11

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.

Question 12

Office of Insurance Regulation

Answer 12

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.