State RegulationsFL specificDifficulty 2/5
Before a newly formed life insurance company may lawfully sell policies in Miami, what must it obtain from the state?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the Florida Insurance Code, an insurer may not transact insurance in Florida without a certificate of authority issued by the Office of Insurance Regulation. Being an insurer in the legal sense involves not only undertaking to pay benefits upon contingencies but also qualifying with OIR and remaining authorized to do business here.
Why the other options are wrong
- A) Insurers are regulated by the Office of Insurance Regulation, not registered as securities with the OFR.
- B) Agency contracts concern how agents represent insurers; they do not authorize the company to transact insurance.
- C) A banking charter is for financial institutions; insurers qualify through the certificate of authority process.
Memory hook
No certificate of authority, no lawful insurer in Florida.