Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Common to Life and Health InsuranceEasy
A Florida licensed life and health agent is found to have obtained their license through misrepresentation on their application. Which of the following administrative penalties is the Department of Financial Services (DFS) most likely to impose first?
- AA cease and desist order against the agent.
- BA permanent revocation of the agent's license.
- CA fine not exceeding $10,000 per violation.
- DA suspension of the agent's license for up to one year.
Show answer & explanationAnswer & explanation
Correct answer: A. A cease and desist order against the agent.
A cease and desist order is often the initial administrative action taken by the DFS when an agent is found to have engaged in prohibited conduct, requiring them to stop the activity immediately.
Why the other options are wrong
- B. Permanent revocation is a severe penalty, usually imposed after repeated or egregious violations, not typically as a first step.
- C. A fine may accompany other penalties but is not usually the first or sole action in such a case.
- D. A suspension is a more severe penalty than a cease and desist order and might follow non-compliance or further investigation.
Cease and Desist Order
An administrative order issued by the Department of Financial Services requiring an individual or entity to stop engaging in a particular activity deemed illegal or in violation of insurance laws.
- Issued by DFS to halt prohibited conduct.
- Often an initial administrative action.
- Failure to comply can lead to more severe penalties.
Memory trick: Don't Forget to Stop! DFS orders you to Cease and Desist.