By: Jason L. Perez
Department Authorized Insurance Education Provider
⭐️⭐️⭐️⭐️⭐️ | The Insurance School .com
Florida Insurance Pre-Licensing Course
Episode Six(c)
[ Identify ] Keywords & Concepts…
iLaw Episode SIX (c)
[ Identify ] Keywords & Concepts…
– CFO Press Release Analysis – Florida’s Insurance Guarantee Association.
– What is the role of Florida’s Guarantee Association?
– [ Identify ] Characteristics of Florida’s Guarantee Association
– How often must the OIR Audit Domestic Insurers?
– [ Identify ] Insurance Guarantee Association Limitations
– Who regulates High-Risk Securities Investments
– [ Define ] Risk Transference, Non-Forfeiture
– Guarantee Non-Forfeiture Protections
– FIGA General Powers & Duties
CFO Patronis Appoints Three Individuals to the Florida Insurance Guaranty Association
Florida Chief Financial Officer (CFO) Jimmy Patronis announced the appointment of Glenn Ritchie and Benjamin Treuil to the Florida Insurance Guaranty Association (FIGA) Board of Directors. CFO Patronis also reappointed Kimberly Blackburn to the FIGA Board of Directors.
FIGA is a nonprofit corporation created by the Florida Legislature in 1970 and services pending claims by or against Florida policyholders of member insurance companies that become insolvent and are ordered liquidated.
· Kimberly Blackburn, Gainesville
Blackburn has previously served as Chairwoman of the Florida Insurance Guaranty Association. She graduated with a Bachelor of Science in Business Administration from the University of Tennessee, Knoxville. Blackburn currently serves as the Vice President of Products and Compliance at Florida Farm Bureau Insurance.
· Glenn Ritchie, Winter Springs
Ritchie has worked for State Farm Insurance for 46 years and has been a State Farm Insurance agent since January 2024. He received his bachelor’s degree of Business Administration in Accounting from the University of Louisiana Monroe, and his master’s in business administration from the University of Florida. Ritchie is certified as a chartered underwriter, a chartered financial consultant, and a chartered property casualty underwriter.
· Benjamin Treuil, Lake Mary
Treuil has worked with Frontline Insurance for over 20 years. He received his bachelor’s degree in accounting from the University of Miami. Currently, Treuil serves as Frontline’s Executive Vice President of Finance.
® Florida’s Guaranty Association IS NOT a state entity.
® FIGA is a private Non-Profit organization run by an elected board of directors.
Florida’s Insurance Guaranty Association works like the FDIC Bank Guarantees which protect our checking and savings account deposits. The difference is Florida’s Guarantee Association protects our insurance benefits. They protect us policyowners by GUARANTEEING impaired & insolvent insurer claims are paid.
Policy Insuring Clause
GUARANTEES Insurance benefits will be paid.
Florida’s Insurance Guaranty Association only covers policies purchased from local DOMESTIC Insurers. Since Insurers are permitted to register in other states as a FOREIGN Insurer, our Guarantee Fund also protects non-residents who’ve purchased policies from a Domestic Florida Insurer with a VALID Certificate of Authority.
* To maintain consumer confidence, the FIGA Board of Directors provides policyowners and beneficiaries with bankruptcy protection while their insurer goes through the liquidation process.
® The FIGA Board regularly makes reports and recommendations to the Department (AND) Office of Insurance Regulations on matters pertaining to, liquidation, rehabilitation, or conservation of member insurers. FIGA insurer reports are confidential and exempt from public record request.
® Class A Assessments help satisfy the administrative and other expenses associated with examinations. These assessments may not exceed $250 per member in any one calendar year. Class B Assessments are based on the total premium the insurer collects from their policyowners.
[ iFlash4u ] Pre-Licensing Vocabulary
INSURER Rehabilitations, Liquidations (AND) Policyowner GUARANTEES.
® DOMESTIC Insurers
= Local Insurer formed & incorporated inside of Florida.
* IMPORTANT Mindset Moment! Since this is a FLORIDA Insurance Pre-Licensing course, the questions we’ll encounter on the State Exam focus on what our ELECTED & Appointed state regulators ARE responsible for… NOT what they aren’t.
* When a test question uses “DOMESTIC” in the build-up, they’re telling you the CFO has absolute authority over the situation. When FOREIGN (OR) Alien insurers are involved, the CFO’s role is limited.
* audit (OR) marketplace examination, it’s limited to the policies and practices conducted INSIDE the United States.
* Florida OIR may REVOKE the Certificate of Authority of ANY insurer conducting business in Florida. Penalties imposed in the United Stated DO NOT affect the activities of the insurer outside of the US.
What is a CONSERVATOR?
· Think about Britney Spears.
(iQ1)
I didn’t know Britney was going to make the class until I needed to; “Hit This Topic One More Time!” There is no better example than the Britney Spears Conservatorship Saga.
In a nutshell – Pun Intended…
Britney Spears had a temporary meltdown.
She shaved her head, freaked out and, was placed into a conservatorship managed by her father. The rationale behind imposing a conservatorship is saying the person is NOT capable of efficiently managing the situation. It wasn’t until after a long legal battle was Britney Spears deemed competent enough to be released from her conservatorship. Well, her social experiment isn’t working.
My point… If the insurer was based in Florida, then the DFS would become the Receiver or Liquidator. When the insurer is based out of Georgia or one of the other 48 states, the regulatory authority of that state becomes the Receiver or Liquidator. Florida’s Department of Financial Services is appointed Conservator. As Conservator, the DFS represents the claims of Floridians. In this class, that’s as complicated as we’re going to make it.
* Variable stock market linked life and annuities. Group Annuity benefits owned by someone other than the Beneficiary ARE NOT covered.
® Private Medicare benefits offered by Part’s C & D.
® Fraternal Organization backed benefits.
® Health Maintenance Organizations | HMO
® Niche ancillary coverages like, Pre-need Funeral Service, Pharmaceutical coverages (Like Medicare Part-D), Ambulance, Optometry & Dental.
* Policies purchased from Unauthorized Insurers ARE NOT covered. FIGA doesn’t reimburse consumers who fell victim to FRAUD. FIGA only guarantees the policies sold by insurers with a valid Certificate of Authority.
VERIFY BEFORE YOU BUY!
Licensees ARE NOT allowed to use FIGA Guarantees as a value proposition during an insurance sales presentation.
Insurance Careers Start Here
Neil Schwabe, M.G.A. LUTCF
Sarah Insure, Independent Broker
