State RegulationsFL specificDifficulty 2/5
An entity has been formed but never qualified with Florida regulators, holds no certificate of authority, and nonetheless sells health coverage to Tampa residents. Under Florida law, this entity is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under the Florida Insurance Code administered by the Office of Insurance Regulation, selling insurance in Florida without a certificate of authority makes an entity an unauthorized insurer engaged in unlawful transacting. Consumers dealing with unauthorized entities also generally cannot rely on the guaranty association, because only authorized member insurers participate in that protection.
Why the other options are wrong
- B) Domestic status requires formation under Florida law plus qualification; formation alone confers no market access without authorization.
- C) Foreign insurers, like all others, must qualify for and hold a certificate of authority; it is never automatic.
- D) Fraternal benefit societies operate under their own framework but are still overseen; this entity is simply unauthorized.
Memory hook
No certificate = unauthorized insurer.