State RegulationsFL specificDifficulty 2/5
After consumer complaints about an insurer's claim practices, the Office of Insurance Regulation opens an investigation. In that investigation, the insurer
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the Office of Insurance Regulation's investigative authority over insurers, a company under investigation must cooperate - producing the books, records, and other information the OIR is authorized to examine. Stonewalling an OIR investigation invites enforcement action, because the regulator's statutory access is neither optional nor contingent on prior court process.
Why the other options are wrong
- A) The OIR's statutory authority does not depend on a court order compelling production of records.
- C) The guaranty association has no role in the regulatory investigation of a solvent insurer.
- D) Ignoring informal inquiries compounds the problem; the duty to cooperate arises as soon as the regulator acts.
Memory hook
When the OIR knocks, the insurer opens its books.