Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Common to Life and Health InsuranceHard
Which of the following is NOT a primary purpose of the Florida Department of Financial Services (DFS) concerning insurance?
- AInvestigating alleged violations of the Insurance Code.
- BApproving insurance policy forms and rates.
- CLicensing and regulating insurance agents and agencies.
- DConsumer protection and education.
Show answer & explanationAnswer & explanation
Correct answer: B. Approving insurance policy forms and rates.
While related, the Office of Insurance Regulation (OIR) is primarily responsible for approving insurance policy forms and rates, not the DFS. The DFS handles agent licensing, investigations, and consumer protection.
Why the other options are wrong
- A. The DFS is responsible for enforcing the Insurance Code and investigating violations.
- C. This is a core function of the DFS.
- D. Consumer protection and education are key aspects of the DFS's mission.
DFS vs. OIR Responsibilities
The DFS focuses on agents, consumer protection, and investigations, while the OIR focuses on insurers' financial solvency, policy forms, and rates.
- DFS: Agent licensing, investigations, consumer services
- OIR: Insurer solvency, policy form approval, rate regulation
- Both operate under the Chief Financial Officer
Memory trick: DFS protects people, OIR regulates companies.