Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Florida Law and EthicsMedium
A Florida 2-20 General Lines Agent receives a formal complaint from a policyholder alleging misrepresentation during the sale of a commercial auto policy. The Department of Financial Services (DFS) initiates an investigation. Which Florida Statute grants the DFS the authority to conduct examinations and investigations of licensees?
- AFlorida Statute 626.859
- BFlorida Statute 628.151
- CFlorida Statute 627.401
- DFlorida Statute 624.307
Show answer & explanationAnswer & explanation
Correct answer: D. Florida Statute 624.307
Florida Statute 624.307 grants the Department of Financial Services broad authority to conduct examinations and investigations of insurance companies, agents, and other licensees to ensure compliance with the Florida Insurance Code.
Why the other options are wrong
- A. This statute pertains to surplus lines agents and their duties, not the general investigative authority of the DFS.
- B. This statute relates to the formation and capitalization of domestic stock and mutual insurers, which is distinct from investigative authority.
- C. This statute addresses the general requirements for insurance policies, not the DFS's investigative powers.
DFS Investigative Authority
The Florida Department of Financial Services (DFS) possesses statutory authority to investigate insurance licensees for compliance with the Florida Insurance Code, protecting consumers and maintaining market integrity.
- Authority granted by Florida Statute 624.307.
- DFS can examine books, records, and affairs of licensees.
- Ensures compliance with insurance laws and regulations.
- Protects consumers from unfair or illegal practices.
Memory trick: The DFS uses 624.307 to search for truth.