State RegulationsFL specificDifficulty 2/5
DFS learns that a Miami man has been soliciting annuity contracts without ever holding an insurance license. Which enforcement step is available against unlicensed transacting?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 626, Florida Statutes, the Department of Financial Services enforces the licensing requirement and may stop unlicensed transacting with a cease-and-desist order supported by administrative penalties, because solicitation alone constitutes transacting insurance. The violation is complete upon unlicensed solicitation, whether or not a policy is ever issued.
Why the other options are wrong
- B) Licensing cures nothing retroactively; DFS does not cure violations by issuing licenses.
- C) An unlicensed person has no appointing insurer; DFS itself enforces the licensing law.
- D) Transacting includes solicitation, so a completed sale is not required for a violation to exist.
Memory hook
Unlicensed soliciting alone triggers DFS enforcement.