State RegulationsFL specificDifficulty 2/5
Which statement best describes how Florida's licensing system protects insurance consumers?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 626, Florida Statutes, licensing under the Department of Financial Services makes transacting insurance a regulated, accountable activity: licensees can be investigated, penalized, suspended, or revoked when they mishandle consumer funds or misrepresent products. That accountability is the practical protection the licensing system gives Florida consumers.
Why the other options are wrong
- A) No regulatory system guarantees investment or recommendation outcomes for consumers.
- B) DFS never becomes the insurer; the issuing insurance company remains obligated on its policies.
- C) Fraud prevention is a goal, but the DFS Division of Insurance Fraud still investigates and prosecutes violations.
Memory hook
Licensed means answerable - to DFS.