State RegulationsFL specificDifficulty 2/5
A Florida resident discovers that her agent fabricated signatures on annuity applications and reports it to the state. Which DFS unit investigates suspected insurance fraud?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Within the Department of Financial Services, the Division of Insurance Fraud investigates suspected fraudulent insurance acts - including forged applications, staged claims, and premium diversion - and refers cases for prosecution. Reporting fraud to DFS triggers this unit's work; the other entities listed regulate banks, wind up insolvent insurers, or pay guaranty claims.
Why the other options are wrong
- A) The OFR enforces banking and securities laws; insurance fraud is DFS territory.
- B) A receiver marshals the assets of an insolvent insurer; it does not investigate fraud for the public generally.
- D) The guaranty association pays covered claims of insolvent insurers; it has no fraud investigations unit.
Memory hook
Insurance fraud? DFS Division of Insurance Fraud.