Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Common to Life and Health InsuranceHard
A Florida licensed life and health agent is found to have intentionally used an assumed name on an insurance application without properly notifying the Department of Financial Services (DFS). What is the most likely consequence for this agent?
- AA civil penalty, but no impact on their license.
- BA warning letter from the DFS.
- CSuspension or revocation of their license.
- DA fine and mandatory ethics training.
Show answer & explanationAnswer & explanation
Correct answer: C. Suspension or revocation of their license.
Using an assumed name without proper notification to the DFS is a serious violation of agent licensing rules in Florida, as it impedes regulatory oversight and can be indicative of fraudulent intent. Such an action typically leads to severe disciplinary action, including license suspension or revocation.
Why the other options are wrong
- A. This is incorrect; such a violation would definitely impact the agent's license.
- B. A warning letter is usually for minor infractions, not for violations involving assumed names.
- D. While a fine and training might be part of a penalty, the severity of using an undisclosed assumed name often merits a more significant consequence.
Assumed Name Notification
Florida licensed agents must notify the Department of Financial Services (DFS) of any assumed names they intend to use in connection with their insurance business. Failure to do so can result in severe disciplinary action.
- Required before using an assumed name.
- Notifies DFS for regulatory oversight.
- Violation can lead to license suspension/revocation.
Memory trick: Hidden names lead to a revoked game; DFS always knows your real fame.