DFS: Department of Financial Services
headed by the CFO aka Treasurer
primary responsibilities of DFS:
- issuing licenses (agents, CSR’s, adjusters)
- supervising claims activities of companies so policyholders receive prompt payment
- investigate charges of unethical conduct
DFS divisions
A. Accounting&Auditing
*B. Division of Consumer Services
C. Division of Funeral, Cemetery& Consumer Services
*D. Division of insurance agent and agency services
E. Division of Investigative and Forensic Science
F. Division of Public Assistance Fraud
(fraud, fire&arson, fiscal integrity)
G. Division of Rehab and Liquidation
H. Division of Risk Mgt
I. Division of treasury
K. Division of Unclaimed property
*L. Division of Workers Comp
M. Division of Administration
N. The Office of Insurance Consumer Advocate
Financial Service Commission
aka THE COMMISSION
composed of governor, the attorney general, the cheif financial officer, and the commissioner of agriculture
Structure is the “office” of OIR and OFR
OIR
Office of Insurance Regulation - ingeneral responsible for all activities of companies/carriers/risk bearing entities
- primary responsible include licensing, rates, policy forms, market conditions, claims, solvency, viatical settlements, premium financing, admin supervision, agency actions, investigations
- regulation compliance
- license insurance companies doing business in FL
- enforce penalties
- must approve not amek rate and review for compliance with FL law
Director of OIR = Commissioner of Insurance Regulation
OFR
Office of Financial Regulation - responsible for activities relating to the regulation of banks, credit unions, other financial institutions, finance companies and the securities industry
- office is headed by Director of OFR aka Commissioner of Financial Regulation
- The bureau may conduct investigations within or outside the state as necessary
- if the office believes any criminal laws have been violated, the office may refer such violations to state and federal law enforcement
CFO/OIR/DFS mission
to protect people
Does the CFO/OIR/DFS pass laws?
NO, they set the rules to explain the laws
Audits
Insurance Commissioner can audit insurance companies every 3 years
CFO has right to audit for:
- protection of consumers
- make sure the consumers are not being ripped off
- regulate companies
Prosecuted by the Dept of Insurance Regulations, how long does a person have to appeal?
30 days
Cease & Desist
if the agent does not stop practicing insurance when the CFO requires the agent to they are subject to a $50,000 fine
Certificate of Authority
Company is licensed by OIR to do business in the state (as an AUTHORIZED insurance company)
Exceptions to Certificate of Authority
- Investigation, settlement of claims
- Transactions covering only subjects of ins not resident/located in this state at time of issuance
- Transactions under surplus lines coverages
- Reinsurance
- Continuation of life/health or annuity contracts remaining in force with insurer has withdrawn from FL
- Investment by foreign insurer in FL real estate
- Transactions involving hospital professional
Transacting Insurance
Agent has the authority to:
1) Solicitation or inducement
2) Preliminary negotiations
3) Effectuation of a contract of insurance
4) Transaction of matters subsequent to effectuation of a contact of insurance
Domestic Company Type
formed under the laws of the state in which doing business
Foreign Company Type
formed under laws of any state, other that the state in which doing business
Alien Company Type
other than domestic and foreign (not formed in US) regardless where doing business
Mutual Company Type
owned by policyholders
Stock Company Type
owned by stockholders
Agent Countersignature required, P&C - Surety
Unauthorized insurer must have contract countersigned by a licensed agent who will be responsible for the contract meeting all state guidelines and statutes. The absence of a countersignature required under this section does not affect the validity of a policy or contract of insurance
Agent Represents
The insurance company - the agent should put the interest of the public first
LIcensing of Agency
subject to a fine of $10,000 if not in compliance. Continues in force until cancelled. Branch businesses established by an agency are not req to be licensed if the transact business under the same name and tax ID. They must submit information about the branch agency within 30 days after the beginning of transaction of business. Effective 10/1/15, the dept must automatically convert agencies from registered to licensed
Grounds for compulsory refusal, suspension, or revocationof insurance agency license
The dept can deny, revoke, or refuse to continue the license of an agency if it finds any of the following grounds exist:
1) lack by the agency for license specified by code
2) material misrepresentation
3) suspension or revocation
