State RegulationsFL specificDifficulty 1/5
Under Florida law, a Discount Medical Plan Organization (DMPO) is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Florida law, discount medical plan organizations are regulated by the Office of Insurance Regulation, but they are not insurers: for a membership fee, a DMPO gives members access to participating providers who have agreed to charge discounted fees. Because the organization pays no claims and assumes no risk, marketing it as health insurance would misrepresent the product, which is why the not-insurance distinction is the core exam point.
Why the other options are wrong
- A) A DMPO pays no claims; paying covered medical expenses is what insurers do, and DMPOs are not insurers.
- C) The fund that stands behind insolvent insurers is the Florida Life and Health Insurance Guaranty Association, not a DMPO.
- D) Underwriting dread disease policies is insurance business; a DMPO sells access to discounted provider fees.
Memory hook
DMPO sells discounts, not insurance.