Florida Statues, Rules, and Regulations Common to All Lines
UPDATED ACTUAL Questions and CORRECT Answers
1. Insurance transaction includes (by mail or by any means): Solicitation, negotiations,
sale (getting insurance contract signed), advising re: coverage or claims
2. Insurer (principle): Insurance company
3. Insured: The person who is being covered
4. Domestic Insurer: Incorporated/headquartered in this state
5. Foreign: Incorporated in another state
6. Alien: Incorporated outside of the US
7. Stock companies: Owned by stockholder who provide the capital necessary to establish and operate the
insurance company and who share in any profits or losses (NON-PARTICIPATING STOCK POLICY does not pay dividends
to policy owners, taxable dividends are paid to the stockholders).
8. Mutual companies: Owned by policy owners and issue participating policies. With participating policies,
policy owners are entitled to dividends therefore nontaxable.
9. Fraternal Benefit Society: Organization formed to provide insurance benefits for member of an aflliated
lodge, religious organization, or fraternal organization with a representative form of government.
10. Risk Retention Group (RPG): Liability insurance company owned by its members (Purpose is to
assume and spread all or part of a liability of its group members).
11. Certificate of Authority: Another way of saying a granted license
12. Authorized/admitted: If you meet the state's financial requirements nd are approved to transact business
in the state this is what you are
13. unauthorized/non-admitted: if you are not approved to do business in the state this is what you are
14. reinsurance: contract under which one insurance company indemnifies another insurance company for part
or all of its liabilities (insurance for insurance companies)
15. department of financial services: Consists of 15 divisions and oflces, 5 have to do with regulating
insurance (Division of Account and Auditing, Division of Insurance Agents and Agency Services, Division of Insurance
Fraud, Division of Consumer Services, and Oflce of the Insurance and Consumer Advocate).
16. Financial service commission: Composed of the Governor, Attorney General, Chief Financial Oflcer,
and the Commissioner of Agriculture (Commission appoints are removes Directors by majority of votes, at least 3, with
both Governor and the CFO on the prevailing side).
17. Office of financial regulation/office of insurance regulation: Regulate the business of
insurance in the state.
UPDATED ACTUAL Questions and CORRECT Answers
1. Insurance transaction includes (by mail or by any means): Solicitation, negotiations,
sale (getting insurance contract signed), advising re: coverage or claims
2. Insurer (principle): Insurance company
3. Insured: The person who is being covered
4. Domestic Insurer: Incorporated/headquartered in this state
5. Foreign: Incorporated in another state
6. Alien: Incorporated outside of the US
7. Stock companies: Owned by stockholder who provide the capital necessary to establish and operate the
insurance company and who share in any profits or losses (NON-PARTICIPATING STOCK POLICY does not pay dividends
to policy owners, taxable dividends are paid to the stockholders).
8. Mutual companies: Owned by policy owners and issue participating policies. With participating policies,
policy owners are entitled to dividends therefore nontaxable.
9. Fraternal Benefit Society: Organization formed to provide insurance benefits for member of an aflliated
lodge, religious organization, or fraternal organization with a representative form of government.
10. Risk Retention Group (RPG): Liability insurance company owned by its members (Purpose is to
assume and spread all or part of a liability of its group members).
11. Certificate of Authority: Another way of saying a granted license
12. Authorized/admitted: If you meet the state's financial requirements nd are approved to transact business
in the state this is what you are
13. unauthorized/non-admitted: if you are not approved to do business in the state this is what you are
14. reinsurance: contract under which one insurance company indemnifies another insurance company for part
or all of its liabilities (insurance for insurance companies)
15. department of financial services: Consists of 15 divisions and oflces, 5 have to do with regulating
insurance (Division of Account and Auditing, Division of Insurance Agents and Agency Services, Division of Insurance
Fraud, Division of Consumer Services, and Oflce of the Insurance and Consumer Advocate).
16. Financial service commission: Composed of the Governor, Attorney General, Chief Financial Oflcer,
and the Commissioner of Agriculture (Commission appoints are removes Directors by majority of votes, at least 3, with
both Governor and the CFO on the prevailing side).
17. Office of financial regulation/office of insurance regulation: Regulate the business of
insurance in the state.
