By: Jason L. Perez
Department Authorized Insurance Education Provider
⭐️⭐️⭐️⭐️⭐️ | The Insurance School .com
Florida Insurance Pre-Licensing Course
Episode Six(a)
CFO | DFS Division of Rehabilitation & LIQUIDATION.
iLaw Episode SIX (a)
CFO | DFS Division of Rehabilitation & LIQUIDATION.
In this Episode…
– What is the purpose of Ratings Agencies.
– Who is the Appointed Receiver of Impaired / Insolvent Insurer Accounts.
– Who is the REHABILITATOR of Impaired Insurer?
– [ Contrast ] Insurer Impairment (VS) Insolvent Insurer – Liquidation.
– CIVIL Process | [ Identify ] Receiver of Lawsuits against Insurers.
DFS / OIR – Impaired & Insolvent Insurers
www. My Florida CFO .com
When answering iLaw questions on the state exam, it’s important to identify the adjectives / descriptors setting up your question. When a PERSON commits an insurance CRIME, the CFO sends a Sworn Law Enforcement Officer. DFS Investigators are armed. They conduct criminal investigations and have the Authority to detain suspects.
OIR / OFR Investigators ARE NOT Law Enforcement Officers.
® Office Investigators AUDIT financials (AND) “Marketplace Practices”. They DO NOT carry guns (OR) have legal authority to detain suspects. When Office Investigators identify a CRIME, they refer the matter to…
CIVIL | LEGAL PROCESS Against an Insurer.
* OIR | Office of Insurance Regulations identifies insurers in financial distress. Conducting business with inadequate financial reserves is a BAD Business Practice. OIR Investigators hand insurer financial issues to the CFO’s Division of Rehabilitation & liquidation.
Losing insurers isn’t good for consumers. Neither are insurers who can’t pay policyowner claims. Impairments identify a lack of operating capital. These situations could go either way. Our assumption for this discussion is, it’s possible for them to correct their operational issues.
When it’s in Florida’s best interest, the CFO’s Department will provide impaired insurers with assistance to help them correct their deficiencies. When it makes financial sense, the CFO even has the authority to LEND Impaired Insurers money. Not too long ago, the CFO saved Florida’s Housing Insurance RATING by infusing TWO BILLION DOLLARS into residential reinsurers.
CFO Patronis CAN NOT…
® Impose a prison / incarnation for a penalty.
® Make a law… CFO has quasi-legislative authority.
- DFS ONLY WORKS WITH PEOPLE!
= Consumers, Licensees (AND) Insurance Agencies.
Insurance Careers Start Here
Neil Schwabe, M.G.A. LUTCF
Sarah Insure, Independent Broker
