State RegulationsFL specificDifficulty 2/5
After a hearing, the Office of Insurance Regulation finds that an insurer has repeatedly engaged in an unfair trade practice. Which agency action may it take?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the Florida Insurance Code, the Office of Insurance Regulation may issue a cease-and-desist order after finding, following notice and a hearing, that an insurer has engaged in an unfair method of competition or an unfair trade practice. Violating such an order is separately punishable under Fla. Stat. 626.9601 by a fine of up to $50,000 plus suspension or revocation.
Why the other options are wrong
- A) Administrative agencies cannot imprison; criminal sanctions are imposed only through prosecution by the courts.
- C) Individual agents' examinations are administered by the Department of Financial Services, and retesting is not a remedy against the insurer.
- D) Mass cancellation of policyholders' contracts would harm consumers and is not an available or lawful remedy.
Memory hook
OIR's tool of choice against insurers: the cease-and-desist order.