State RegulationsFL specificDifficulty 1/5
In Florida, what does an insurer's certificate of authority signify?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under the Florida Insurance Code, the certificate of authority issued by the Office of Insurance Regulation is the document that qualifies an insurer to transact insurance in Florida. It remains contingent on continued qualification and can be suspended or revoked for cause after notice and a hearing.
Why the other options are wrong
- A) Rates must still be filed and approved under OIR supervision; the certificate locks nothing in.
- B) Premium taxes are paid as they accrue; no prepayment substitutes for the certificate.
- D) Authorized insurers remain fully subject to examinations, including market conduct examinations by OIR.
Memory hook
Certificate of authority = the insurer's ticket to transact.