19.1.2 The Department of Financial Services Headed by the Chief Financial Officer
...oversees the insurance industry in accordance with the provisions of the Insurance Code.
The Florida study manual lists the following major areas in which the Chief Financial Officer and the Office of Insurance Regulation are involved with respect to regulating insurance companies.
- Organizing and licensing of companies, including establishment of the initial financial requirements for insurance companies
- Policing against unauthorized insurance activities
- Continuing regulation of insurance company activities, including policy forms and provisions and rates (although direct rate regulation is not applicable to life insurance)
- Supervising the methods of obtaining business, including licensing of agents and control of unfair trade and advertising practices
- Monitoring the financial condition of insurers, including specification of appropriate investment categories and appropriate methodology for developing liabilities
- Rehabilitating or liquidating insurers where necessary
The Chief Financial Officer can impose penalties upon an agent who violates the Insurance Code. Failure to answer a subpoena or an order of the Chief Financial Officer can result in a $1,000 fine. Remember, a violation of a cease and desist order* can carry a fine of up to $50,000. Willful violation of the Insurance Code is a misdemeanor of the second degree.
