State RegulationsFL specificDifficulty 2/5
An insurer repeatedly violates Florida insurance law despite warnings. Which action may the Office of Insurance Regulation take regarding the insurer's ability to transact business?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under the Florida Insurance Code, the Office of Insurance Regulation may deny, suspend, or revoke an insurer's certificate of authority for cause after notice and an opportunity for a hearing. Losing the certificate bars the insurer from transacting the affected insurance business in Florida; seizure of assets is a separate receivership step tied to financial impairment.
Why the other options are wrong
- A) Asset seizure occurs through a delinquency proceeding under Chapter 631, Florida Statutes, not as an immediate penalty for rule violations.
- B) OIR does not transfer books of business between competing insurers as a disciplinary measure.
- D) Taxing policyholders to fund oversight is not an available agency action under Florida law.
Memory hook
Insurer's ticket to do business: OIR can suspend or revoke it.