State RegulationsFL specificDifficulty 1/5
Under Florida law, what is an insurer?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the Florida Insurance Code (Chapter 624, Florida Statutes), an insurer is the party that undertakes to indemnify the insured or to pay benefits upon the occurrence of specified contingencies, such as death or illness. Insurers are supervised by the Office of Insurance Regulation and must hold a certificate of authority to transact insurance in Florida.
Why the other options are wrong
- A) The applicant is the insured, the party seeking the transfer of risk, not the party assuming it.
- C) Agents represent insurers in soliciting and negotiating, but they do not undertake to pay the benefits themselves.
- D) Banks sell financial products; assuming contingent insurance risk is what defines an insurer.
Memory hook
Insurer = the risk-taker paying benefits.