2044 Chapter 15 & 16 Florida Statutes
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Questions and Answers

Who is Florida's Chief Financial Officer?

Jimmy Patronis

What are the responsibilities of the Chief Financial Officer?

Serve the citizens of Florida as the state's CFO, fire marshal and member of the Florida Cabinet.

What is the Division of Consumer Services responsible for?

Provide advocacy for consumers who request assistance.

What does the Division of Consumer Finance do?

<p>Licenses and regulates financial service industries and individuals that do not keep deposits.</p> Signup and view all the answers

What is the role of the Division of Financial Institutions?

<p>Ensures that any financial institution with a state charter meets all state and federal requirements of safety and financial soundness.</p> Signup and view all the answers

What does the Division of Securities regulate?

<p>Regulates the sale of securities in, to or from Florida.</p> Signup and view all the answers

What is the Bureau of Financial Investigations?

<p>A division of the Office of Financial Regulation that conducts investigations.</p> Signup and view all the answers

What are Market Conduct Examinations?

<p>An analysis of an insurer's practices in sales and advertising, underwriting, ratemaking, and claim handling.</p> Signup and view all the answers

What does MEWA stand for?

<p>Multiple Employer Welfare Arrangements.</p> Signup and view all the answers

What is the function of a MEWA?

<p>A group of entities coming together to purchase coverage as a self-funded group.</p> Signup and view all the answers

What is a Certificate of Authority?

<p>A company is licensed by OIR to do business in the state.</p> Signup and view all the answers

What does the Florida Surplus Lines Service Office oversee?

<p>The surplus lines insurance market.</p> Signup and view all the answers

What is an Admitted Company?

<p>An insurance company licensed to do business in a state.</p> Signup and view all the answers

What is a Non-admitted Insurer?

<p>An insurance company not licensed to do business within a given state.</p> Signup and view all the answers

Define Domestic Insurance Company.

<p>An insurance company chartered in the same state where it operates.</p> Signup and view all the answers

What is a Foreign Insurance Company?

<p>An insurance company chartered in one state but doing business in another.</p> Signup and view all the answers

What is an Alien Insurance Company?

<p>An insurance company incorporated outside the US.</p> Signup and view all the answers

Who owns a Mutual Insurance Company?

<p>The policyholders.</p> Signup and view all the answers

Who owns a Stock Insurance Company?

<p>Stockholders.</p> Signup and view all the answers

Define Fraternal Insurance Company.

<p>An organization that must be nonprofit with a lodge system and elected officers.</p> Signup and view all the answers

What is Reinsurance?

<p>One insurance company sharing reserves with another insurance company.</p> Signup and view all the answers

What is the 20-44 license?

<p>Personal Lines only license; Agent can transact Personal Auto, Homeowners, Dwelling, Flood, and Personal Marine.</p> Signup and view all the answers

What is the 4-40 license?

<p>Customer Service Representative License.</p> Signup and view all the answers

What is the 2-20 General Lines Agent license?

<p>Qualified in areas of Property and Casualty, Marine, Surety, and Health.</p> Signup and view all the answers

Define Controlled Business.

<p>The sale of insurance to those whom the agent has an interest in or financial influence over.</p> Signup and view all the answers

What does an Appointment refer to in insurance?

<p>The authority given to a licensee to transact insurance.</p> Signup and view all the answers

What is an Unaffiliated Insurance Agent?

<p>A licensed insurance agent who is self-appointed and practices as an independent consultant.</p> Signup and view all the answers

What is the deadline for the transfer of insurance from another state?

<p>90 days after moving to a new state.</p> Signup and view all the answers

What continuing education is required if licensed less than 6 years?

<p>5 hour update course + 19 hours of elective continuing education courses every 2 years.</p> Signup and view all the answers

What continuing education is required if licensed more than 6 years?

<p>5 hour update course + 15 hours of elective continuing education courses every 2 years.</p> Signup and view all the answers

How long does a person have to appeal?

<p>30 days.</p> Signup and view all the answers

How long must an agent maintain their insureds' files of policy transactions?

<p>5 years.</p> Signup and view all the answers

What are False Statements in the context of insurance?

<p>Knowingly making false entry of material facts.</p> Signup and view all the answers

What is Defamation in the context of insurance?

<p>Making false oral or written statements calculated to injure a person, company, or its products.</p> Signup and view all the answers

What does Boycott, Coercion, and Intimidation refer to?

<p>Entering into an agreement to commit any action or intimidation resulting in unreasonable restraint of the insurance business.</p> Signup and view all the answers

What are Unlawful Rebates?

<p>Permitting or offering to pay or give something of value in exchange for purchasing a policy.</p> Signup and view all the answers

What is Churning in the insurance context?

<p>Using policy values in an existing life or annuity to purchase another policy with the same insurer.</p> Signup and view all the answers

What does Twisting refer to?

<p>Making misrepresentations to induce a person to drop their policy to take another from another company.</p> Signup and view all the answers

What is Sliding?

<p>Charging an applicant for ancillary coverage without their knowledge.</p> Signup and view all the answers

What is Forced-Placed Coverage?

<p>An insurance policy placed by a lender on a home when the property owner's own insurance is insufficient.</p> Signup and view all the answers

What is the Florida Insurance Guaranty Fund?

<p>Administered by an elected board to pay unpaid claims of insolvent insurance companies.</p> Signup and view all the answers

What is a Risk Retention Group?

<p>A group-owned insurer organized for the purpose of spreading liability risks to its members.</p> Signup and view all the answers

What type of penalty can an agent be charged with for lying on an insurance application?

<p>3rd Degree Felony.</p> Signup and view all the answers

Who composes the Financial Services Commission?

<p>Governor, Attorney General, Commissioner of Agriculture and the Chief Financial Officer.</p> Signup and view all the answers

Who may an insurance agent share their commissions with?

<p>Anyone with the same type of license.</p> Signup and view all the answers

What types of administrative actions must be reported to the DFS?

<p>Fraud, dishonesty, and breach of fiduciary duty.</p> Signup and view all the answers

What does PEO stand for?

<p>Professional Employer Organization.</p> Signup and view all the answers

Study Notes

Key Figures and Entities

  • Jimmy Patronis serves as Florida's Chief Financial Officer, overseeing financial regulations and consumer protection.
  • The Financial Services Commission includes the Governor, Attorney General, Commissioner of Agriculture, and the Chief Financial Officer.

Divisions and Their Functions

  • Division of Consumer Services: Advocates for consumers seeking assistance and resolving issues.
  • Division of Consumer Finance: Licenses and regulates financial service industries, excluding deposit-holding entities.
  • Division of Financial Institutions: Ensures state-chartered financial institutions comply with safety and financial standards.
  • Division of Securities: Regulates securities transactions within Florida, ensuring compliance with state law.
  • Bureau of Financial Investigations: Conducts criminal investigations relating to financial regulation.

Insurance Company Types

  • Admitted Company: Licensed to do business in Florida, meeting state requirements.
  • Non-admitted Insurer: Not licensed to operate in Florida but able to provide surplus lines.
  • Domestic Insurance Company: Chartered in Florida and operates primarily there.
  • Foreign Insurance Company: Chartered in a different state but conducts business in Florida.
  • Alien Insurance Company: Incorporated outside the United States, unrestricted by state boundaries.

Insurance Licenses and Regulations

  • 20-44 License: For Personal Lines; allows agents to transact auto, homeowners, and marine insurance.
  • 4-40 License: A Customer Service Representative License.
  • 2-20 General Lines Agent: Authorizes agents to solicit insurance in various sectors, including property, casualty, and health.

Insurance Agent Practices

  • Controlled Business: Refers to insurance sold to entities where the agent has financial interest.
  • Appointment: Authority to transact insurance, valid for 24 months.
  • Unaffiliated Insurance Agent: Independent consultant practicing without employer affiliation.

Continuing Education Requirements

  • Licensed for less than six years: Requires a 5-hour update course plus 19 elective hours every two years.
  • Licensed for over six years: Requires a 5-hour update course plus 15 elective hours every two years.

Miscellaneous Regulations

  • Transfer of Insurance: Must be completed within 90 days of relocating to a new state.
  • Retention of Policy Files: Agents must maintain client records for five years.
  • False Statements: Making knowingly false entries can lead to penalties or criminal charges.

Ethical Violations

  • Defamation: False statements made to harm a business or individual.
  • False Statements: Deliberate misrepresentation of material facts.
  • Boycott, Coercion, and Intimidation: Agreements leading to unreasonable restraints in the insurance business.
  • Unlawful Rebates: Offering incentives in exchange for policy sales is considered unethical.

Insurance Fraud Types

  • Churning: Using existing policy values to buy new policies with the same insurer for undue commission.
  • Twisting: Misrepresenting policies to persuade clients to switch insurers.
  • Sliding: Adding supplemental coverage without client consent or knowledge.

Insurance Market Protections

  • Florida Insurance Guaranty Fund: Provides support for unpaid claims and unearned premiums from insolvent insurers.
  • Risk Retention Group: Collective insurance entities that share liability risks among members.

Consequences of Misconduct

  • Lying on insurance applications can result in a third-degree felony charge.
  • Reports of fraud or fiduciary breaches must be submitted to the Department of Financial Services within 30 days.

Professional Employer Organizations (PEOs)

  • Companies that manage HR functions and assume employer liabilities through contractual agreements.

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Description

Test your knowledge of Florida's Chief Financial Officer and the responsibilities outlined in Chapters 15 and 16 of the Florida Statutes. This quiz includes important terms and definitions related to unlicensed entities and consumer services in Florida.

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