State RegulationsFL specificDifficulty 1/5
In Florida insurance terminology, the insurer in a policy is best described as:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 624, Florida Statutes, the insurer is the risk-bearing entity - the party that assumes the contingent risk and promises to pay policy benefits, and which must be authorized by the Office of Insurance Regulation to transact insurance in Florida. The insured is the person whose life or health is covered, the agent solicits and negotiates on the insurer's behalf, and the beneficiary merely receives proceeds. Agents should confirm an insurer is authorized before placing business with it.
Why the other options are wrong
- B) The person whose life or health is covered is the insured - the party for whose benefit proceeds are payable - not the risk-bearer.
- C) The producer solicits and negotiates on behalf of an insurer but neither underwrites the risk nor guarantees payment of claims.
- D) The beneficiary receives the proceeds and takes no underwriting risk in the contract.
Memory hook
Insurer = the one who carries the risk and pays claims.