State RegulationsFL specificDifficulty 3/5
Which statement correctly distinguishes an agent's license from an insurer's certificate of authority?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Florida law, an agent's license is issued by the Department of Financial Services to a person, authorizing that individual to transact insurance, while the certificate of authority is issued by the Office of Insurance Regulation to the insurer itself, authorizing the company to transact insurance in Florida. Both credentials remain subject to suspension or revocation for cause.
Why the other options are wrong
- A) This reverses the documents: the license belongs to the person, and the certificate belongs to the insurer.
- C) The guaranty association issues neither document; DFS licenses agents and OIR authorizes insurers.
- D) Both licenses and certificates can be suspended or revoked after notice and a hearing.
Memory hook
Person gets the license; company gets the certificate.