State RegulationsFL specificDifficulty 1/5
A certificate of authority in Florida insurance regulation is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 624, Florida Statutes, a certificate of authority is the document issued by the Office of Insurance Regulation that authorizes an insurer to transact insurance in Florida; insurers operating without one are unauthorized (non-admitted). The certificate belongs to the insurer and is distinct from an agent's license, which is issued by the Department of Financial Services, and from the appointment that activates a licensed agent for a specific insurer. Agents should confirm an insurer holds a certificate of authority before placing business.
Why the other options are wrong
- B) An agent's license is issued by the Department of Financial Services to individuals and business entities - not by the OIR to insurers.
- C) An appointment is the insurer's designation of a licensed agent to represent it under Fla. Stat. 626.381(1),(4) - not the insurer's own authorization to operate.
- D) Continuing education compliance is tracked by the DFS for licensees; it is unrelated to an insurer's authority to do business.
Memory hook
Certificate of authority = the insurer's ticket to sell in Florida.