FLORIDA STATUTES RULES AND REGULATIONS
COMMON FINAL STUDY PAPER 2026
COMPLETE QUESTIONS AND ANSWERS
◉ Agency Actions. Answer: The Director (Commissioner of
Insurance Regulation is considered the agency head for purposes of
final agency action for all areas within the regulatory authority
delegated to the Office.
◉ Investigations. Answer: OIR entrusted with the duty of carefully
monitoring statewide industry markets. Accomplished through
market conduct exams, will investigate and prosecute violations
involving certain business practices.
◉ Insurance Marketing Systems. Answer: There are four. Exclusive,
you are under contract to only represent one insurer. Direct Writer,
the company's agents are really employees. Direct Response,
Company sells directly over the phone. Independent, nonexclusive
agents who can be authorized to sell insurance for several different
insurance companies.
◉ Insurance contract. Answer: A written contract in which an
insurance company indemnifies an insured. The technical definition
is: A contract whereby one undertakes to indemnify another or pay
or allow a specified amount or a determinable benefit upon
,determinable contingencies. Translated, you buy insurance, a loss
occurs, the insurance company makes you whole.
◉ Insurance transaction. Answer: Transact includes solicitation or
inducement; preliminary negotiations; effectuation of a contract of
insurance and transaction of matters subsequent to effectuation of a
contract of insurance and arising out of it. Huh! Here's what this
really says. If you attempt to make a sale or talk someone in to
buying an insurance policy, you are transacting the business of
insurance. If you bind coverage you are transacting the business of
insurance. If you work on a policy once it is sold, you are transacting
insurance.
◉ Insurer. Answer: Definition includes every person engaged as
indemnitor, surety, or contractor in the business of entering into
contracts of insurance or of annuity. Translated, the insurance
company that undertakes to indemnify for losses and perform other
insurance-related operations.
◉ Domestic company. Answer: Domiciled in Florida and formed
under the laws of this state.
◉ Foreign company. Answer: Domiciled in another state. Formed
under the laws of any state, district, territory, or commonwealth of
the United States other than Florida.
, ◉ Alien company. Answer: Domiciled in another country. Canadians
are aliens. Our laws work there but they are not us. New Mexico is
us; they are one of the 50 United States. New Mexico would be a
foreign company in Florida. Guam is us too! If you have to choose
between Guam and Canada and the question pertains to
domestic/foreign and alien, Canadians are still aliens.
◉ Fraternals. Answer: Provides insurance for members, most only
write life and health. Business is conducted solely for the benefit of
its members and their beneficiaries and not for profit.
◉ Authorized or Admitted Insurer. Answer: Authorized to do
business in a state-meets the insurance department's standards.
◉ Unauthorized companies or non-admitted companies. Answer:
Unauthorized, does not have a certificate of authority. A non-
admitted company is unauthorized and may only do business in a
state under special circumstances. If you aid an unauthorized
insurer, the state will go after you (the agent) and the insurance
company (insurer).
◉ Stock. Answer: For profit, sells stock to stockholders to raise
money to operate the business. Stockholders receive any profits via
dividends.
COMMON FINAL STUDY PAPER 2026
COMPLETE QUESTIONS AND ANSWERS
◉ Agency Actions. Answer: The Director (Commissioner of
Insurance Regulation is considered the agency head for purposes of
final agency action for all areas within the regulatory authority
delegated to the Office.
◉ Investigations. Answer: OIR entrusted with the duty of carefully
monitoring statewide industry markets. Accomplished through
market conduct exams, will investigate and prosecute violations
involving certain business practices.
◉ Insurance Marketing Systems. Answer: There are four. Exclusive,
you are under contract to only represent one insurer. Direct Writer,
the company's agents are really employees. Direct Response,
Company sells directly over the phone. Independent, nonexclusive
agents who can be authorized to sell insurance for several different
insurance companies.
◉ Insurance contract. Answer: A written contract in which an
insurance company indemnifies an insured. The technical definition
is: A contract whereby one undertakes to indemnify another or pay
or allow a specified amount or a determinable benefit upon
,determinable contingencies. Translated, you buy insurance, a loss
occurs, the insurance company makes you whole.
◉ Insurance transaction. Answer: Transact includes solicitation or
inducement; preliminary negotiations; effectuation of a contract of
insurance and transaction of matters subsequent to effectuation of a
contract of insurance and arising out of it. Huh! Here's what this
really says. If you attempt to make a sale or talk someone in to
buying an insurance policy, you are transacting the business of
insurance. If you bind coverage you are transacting the business of
insurance. If you work on a policy once it is sold, you are transacting
insurance.
◉ Insurer. Answer: Definition includes every person engaged as
indemnitor, surety, or contractor in the business of entering into
contracts of insurance or of annuity. Translated, the insurance
company that undertakes to indemnify for losses and perform other
insurance-related operations.
◉ Domestic company. Answer: Domiciled in Florida and formed
under the laws of this state.
◉ Foreign company. Answer: Domiciled in another state. Formed
under the laws of any state, district, territory, or commonwealth of
the United States other than Florida.
, ◉ Alien company. Answer: Domiciled in another country. Canadians
are aliens. Our laws work there but they are not us. New Mexico is
us; they are one of the 50 United States. New Mexico would be a
foreign company in Florida. Guam is us too! If you have to choose
between Guam and Canada and the question pertains to
domestic/foreign and alien, Canadians are still aliens.
◉ Fraternals. Answer: Provides insurance for members, most only
write life and health. Business is conducted solely for the benefit of
its members and their beneficiaries and not for profit.
◉ Authorized or Admitted Insurer. Answer: Authorized to do
business in a state-meets the insurance department's standards.
◉ Unauthorized companies or non-admitted companies. Answer:
Unauthorized, does not have a certificate of authority. A non-
admitted company is unauthorized and may only do business in a
state under special circumstances. If you aid an unauthorized
insurer, the state will go after you (the agent) and the insurance
company (insurer).
◉ Stock. Answer: For profit, sells stock to stockholders to raise
money to operate the business. Stockholders receive any profits via
dividends.
