State RegulationsFL specificDifficulty 1/5
Before transacting insurance in Florida, an insurer must hold a certificate of authority. Which office issues it?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The Office of Insurance Regulation (OIR) licenses insurers to transact business in Florida by issuing certificates of authority, and it monitors insurers' financial condition and market conduct. The OIR is headed by the Commissioner of Insurance Regulation, who is appointed by the Financial Services Commission, and it is distinct from the Department of Financial Services.
Why the other options are wrong
- A) The Department of Financial Services oversees agents, adjusters, consumer services, and fraud; it does not issue insurers' certificates of authority.
- B) The Office of Financial Regulation supervises banks and securities firms, not insurance company licensing.
- D) The Financial Services Commission appoints the Insurance Commissioner; the actual issuance of certificates of authority is an Office of Insurance Regulation function.
Memory hook
Company authority comes from the OIR.