State RegulationsFL specificDifficulty 3/5
The Office of Insurance Regulation receives complaints about an insurer's sales practices. Which statement about its investigation authority is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the Florida Insurance Code, the Office of Insurance Regulation may investigate insurers' affairs, examining books, records, and market practices on its own initiative or based on complaints, and use the findings in enforcement proceedings against the insurer. The Department of Financial Services, by contrast, investigates individual agents and adjusters.
Why the other options are wrong
- A) OIR is not limited to court referrals; it may open investigations on complaints or on its own motion.
- B) The Division of Insurance Fraud handles criminal insurance fraud; routine regulatory investigations of insurers remain with OIR.
- C) OIR supervises all insurers transacting business in Florida, whether domestic or foreign domiciled.
Memory hook
OIR opens its own files on insurers - no court referral needed.