State RegulationsFL specificDifficulty 3/5
During an administrative investigation of a Florida agent accused of misappropriating premiums, the Department of Financial Services may:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 626, Florida Statutes, the Department of Financial Services, under the Chief Financial Officer, has broad authority to investigate suspected violations by agents and adjusters, including issuing subpoenas and examining books and records, and it may pursue administrative penalties, suspension, or revocation after notice and a hearing.
Why the other options are wrong
- A) DFS conducts administrative investigations; it does not detain licensees, because custody is a criminal-law matter for law enforcement and the courts.
- B) DFS may open an investigation on its own initiative based on consumer complaints or audits; a criminal charge from an insurer is not a prerequisite.
- C) The Office of Financial Regulation supervises banking and securities; an insurance agent's records are examined by the Department of Financial Services.
Memory hook
DFS investigates agents with subpoenas in hand.