Florida Statutes, Rules, and
Regulations Common To All Lines
Questions and Answers
Fraternals - ANSWER-is a benefit society that is an organization formed to provide
insurance benefits for members of an affiliated lodge, religious organization, or
fraternal organization with a representative form of government.
Unauthorized/ Nonadmitted Companies - ANSWER-insurers who have not been
approved to do business in the state.
Authorized/ Admitted Companies - ANSWER-insurers who meet the state's financial
requirements and are approved to transact business in the state (legal insurer)
Stock Companies - ANSWER-are owned by stockholders who provide the capital
necessary to establish and operate the insurance company and who share in any
profits or losses.
Mutal Companies - ANSWER-are owned by the policyowners and issue participating
policies.
Risk Retention Group (RRG) - ANSWER-is a liability insurance company owned by
its members.
Unlicensed Entities - ANSWER-transact in the state may cause problems such as:
potential criminal activity, impacted on authorized insurers, potential of unpaid
claims, State and Federal won't cover unpaid claims, an impact of health-care
providers from unpaid claims.
Certificate of Authority - ANSWER-a license for the state department of insurance
and meet any financial requirements set by the state.
Fiduciary - ANSWER-is someone in a position of trust.
Fiduciary Responsiblity - ANSWER-when an agent handles the funds of the insured
and the insurer.
Separate Account - ANSWER-where an agent must keep funds belonging to each
insurer for which is not appointed and to allow the Department of Office to property
audit such funds.
Market Conduct - ANSWER-describes the way companies and producers should
conduct their business.
Regulations Common To All Lines
Questions and Answers
Fraternals - ANSWER-is a benefit society that is an organization formed to provide
insurance benefits for members of an affiliated lodge, religious organization, or
fraternal organization with a representative form of government.
Unauthorized/ Nonadmitted Companies - ANSWER-insurers who have not been
approved to do business in the state.
Authorized/ Admitted Companies - ANSWER-insurers who meet the state's financial
requirements and are approved to transact business in the state (legal insurer)
Stock Companies - ANSWER-are owned by stockholders who provide the capital
necessary to establish and operate the insurance company and who share in any
profits or losses.
Mutal Companies - ANSWER-are owned by the policyowners and issue participating
policies.
Risk Retention Group (RRG) - ANSWER-is a liability insurance company owned by
its members.
Unlicensed Entities - ANSWER-transact in the state may cause problems such as:
potential criminal activity, impacted on authorized insurers, potential of unpaid
claims, State and Federal won't cover unpaid claims, an impact of health-care
providers from unpaid claims.
Certificate of Authority - ANSWER-a license for the state department of insurance
and meet any financial requirements set by the state.
Fiduciary - ANSWER-is someone in a position of trust.
Fiduciary Responsiblity - ANSWER-when an agent handles the funds of the insured
and the insurer.
Separate Account - ANSWER-where an agent must keep funds belonging to each
insurer for which is not appointed and to allow the Department of Office to property
audit such funds.
Market Conduct - ANSWER-describes the way companies and producers should
conduct their business.
