State RegulationsFL specificDifficulty 2/5
A Miami agent is approached by a new insurer seeking representation. How can the agent confirm that the insurer is admitted to do business in Florida?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the Florida Insurance Code administered by the Office of Insurance Regulation, admission is evidenced by a certificate of authority, which confirms that the insurer has qualified to transact insurance in Florida. Agents should place business only with authorized insurers so that consumers remain within the protections of Florida law.
Why the other options are wrong
- A) A bank account shows no qualification; admission depends on the certificate of authority issued by OIR.
- C) A private affidavit is not an official credential; the state-issued certificate of authority governs.
- D) Advertising budgets are irrelevant to admission; DFS does not verify insurers' marketing spending.
Memory hook
Check the certificate before you check anything else.