State RegulationsFL specificDifficulty 1/5
Under Florida law, what is an unlicensed entity with respect to insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 626, Florida Statutes, transacting insurance, which includes soliciting, negotiating, and effectuating contracts of insurance, requires the appropriate license from the Department of Financial Services. A person or entity performing those activities without a license is unlicensed and in violation of Florida law.
Why the other options are wrong
- A) Premium tax delinquency is a tax matter; it does not define an unlicensed entity.
- B) An agency whose agents are all currently licensed is the opposite of an unlicensed entity.
- C) A pending form filing concerns an authorized insurer's product approval, not anyone's license status.
Memory hook
Transacting without a license = unlicensed entity.