State RegulationsFL specificDifficulty 3/5
Which statement about the regulation of insurance rates and forms in Florida is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Florida divides the work by subject: the Office of Insurance Regulation reviews and approves the rates and forms insurers want to use, while the Department of Financial Services under the CFO licenses the agents who sell the products. Neither the DFS nor the OFR touches rates or forms, and self-drafted forms cannot be used without OIR approval.
Why the other options are wrong
- B) The roles are reversed: form and rate approval belong to the OIR, while agent discipline belongs to the DFS.
- C) The Office of Financial Regulation regulates banks and securities, not insurance rates or forms.
- D) Actuarially sound premiums do not excuse unapproved forms; OIR approval is mandatory before any form is used.
Memory hook
Rates and forms = OIR; licenses and agents = DFS.