State RegulationsFL specificDifficulty 2/5
A market conduct examination finds that an insurer systematically mishandled claims. What may the Office of Insurance Regulation do with the findings?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the Florida Insurance Code, market conduct examination findings support regulatory action by the Office of Insurance Regulation, including requiring corrective measures, imposing administrative penalties, or referring the matter for enforcement when an examination shows unfair or unlawful treatment of consumers. The guaranty association is implicated only when a member insurer is liquidated.
Why the other options are wrong
- A) Examination findings are not converted into the insurer's marketing material; that would mislead consumers.
- B) Policyholders owe nothing where the insurer mishandled claims; remedies run against the company, not its customers.
- C) FLAHIGA steps in only upon an insurer's insolvency and liquidation, not because of a market conduct exam.
Memory hook
Bad exam = corrective action from OIR.