Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Common to Life and Health InsuranceMedium
A Florida licensed life and health agent is found to have obtained their license through material misrepresentation on their application. Which of the following administrative penalties is the Department of Financial Services (DFS) MOST likely to impose?
- ARevocation or suspension of the agent's license.
- BIssuance of a probationary license for a period not exceeding 2 years.
- CA requirement to complete additional continuing education courses within 90 days.
- DA fine not exceeding $1,000 for each non-willful violation.
Show answer & explanationAnswer & explanation
Correct answer: A. Revocation or suspension of the agent's license.
Obtaining a license through material misrepresentation is a serious offense that directly impacts the integrity of the licensing process. The Department of Financial Services (DFS) has the authority to revoke or suspend an agent's license for such violations to protect the public and maintain professional standards.
Why the other options are wrong
- B. A probationary license might be issued for certain other violations, but for initial license fraud, revocation or suspension is more appropriate.
- C. Additional continuing education is a remedial measure, usually for knowledge deficiencies or minor compliance issues, not for fraudulent license acquisition.
- D. This fine amount is typically for less severe, non-willful violations, not for obtaining a license through misrepresentation.
License Revocation/Suspension
The Department of Financial Services (DFS) can revoke or suspend an agent's license for serious violations, including obtaining the license through fraud or misrepresentation.
- Applies to severe violations of insurance law or ethical conduct.
- Protects the public from unethical or unqualified agents.
- Can be permanent (revocation) or temporary (suspension).
Memory trick: Violations lead to consequences, especially when trust is broken.