FL Statutes, Rules, & Regulations (Sect. 2, Pt. 1&2)(in progress) Exam With Complete Solutions

FL Statutes, Rules, & Regulations (Sect. 2, Pt. 1&2)(in progress) Exam With Complete Solutions Chief Financial Officer (a.k.a. the Treasurer) - answer- responsible for administering the laws - heads the DFS Primary Responsibilities of the Department of Financial Services - answer- issuing licenses (Agents, CSRs, Adjusters) - supervising claims activities of companies - investigate charges of unethical conduct Divisions of DFS - answer- unclaimed property - insurance agent & agency services - consumer services Consumer Services Division of DFS - answerreceives inquiries & complaints from consumers **licensed personnel & companies have 20 days to respond to written request for information concerning a consumer complaint Financial Service Commission - answer- composed of the Governor, CFO, Attorney General, & Commissioner of Agriculture - has two branches: - Office of Insurance Regulation (OIR) - Office of Financial Regulation (OFR) Office of Insurance Regulation (OIR) - answer- responsible for activities of companies/carriers/risk bearing entity - issues Certificates of Authority - approves rates & reviews for compliance - monitors for financial solvency - enforces penalties Commissioner for Insurance Regulation - answerdirector of the OIR Office of Financial Regulation (OFR) - answerregulates the banks CFO has the right to audit - answer- every 3 years - to protect the consumer - to regulate companies Agent Austin Powers is served a Cease & Desist order by the Office of the CFO, but he likes to live dangerously and continues to transact insurance anyway. How much will Austin be fined? - answer$50,000 Freddie Mercury has come back from the dead to sell insurance. Unfortunately, he is now being prosecuted by the Dept. of Insurance Regulations. How long does he have to appeal? - answer30 days Carrie Underwood's insurance agency wants to sell auto insurance in the state of Florida. What does "Jesus Take the Wheel P&C Insurance Co." need to obtain in order to appoint agents and sell insurance as an admitted carrier? - answerCertificate of Authority Which of the following would not be an exception to USAA's certificate of authority? - investigation & settlement of claims as a result of former authorized operations in Florida - transactions involving a captive company - appointing a general lines insurance agent with a 2044 license - reinsurance - transactions under surplus lines coverage - investment in Florida real estate - answerappointing a general lines insurance agent with a 2044 license You are an agent appointed by Tom & Jerry P&C Insurance Company. As an agent you have the authority to transact insurance on behalf of your agency. What is considered transacting insurance? - answer- solicitation & inducement - preliminary negotiations - effectuation of a contract of insurance - transacting changes after issuing an insurance contract The East India Insurance Company is based in London and was formed under the laws of the British Empire but is legally selling insurance in Florida. The East India Insurance Company would best be described as a(n) __________ insurer. - foreign - alien - migrant - domestic - answeralien Kardashian Insurance Company was chartered in Los Angeles, California and is an admitted carrier in the state of Florida. Kardashian Insurance Company would best be described as a(n) __________ insurer. - foreign - alien - migrant - domestic - answerforeign Margaritaville P&C Insurance Co.