Key Takeaways
- The Florida Department of Financial Services (DFS) regulates insurance through the Office of Insurance Regulation (OIR)
- The Chief Financial Officer (CFO) is elected statewide to a 4-year term and oversees DFS
- OIR handles rate and form approvals, market conduct, and financial examinations
- DFS Division of Consumer Services handles consumer complaints and agent licensing
- Florida uses "file and use" rate regulation for most P&C lines with prior approval for residential property
Florida Department of Financial Services (DFS)
Important: This study guide covers Florida state-specific Property & Casualty insurance content only. You should complete the national Property & Casualty exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The Florida Department of Financial Services (DFS) is the state agency responsible for regulating insurance in Florida. Florida's insurance regulatory structure involves two key entities: DFS and the Office of Insurance Regulation (OIR).
The Chief Financial Officer (CFO)
The Chief Financial Officer (CFO) is:
- Elected by Florida voters to a 4-year term
- One of Florida's Cabinet members
- Head of the Department of Financial Services
- Responsible for insurance agent licensing, consumer protection, and fraud investigation
CFO Responsibilities
| Area | Responsibilities |
|---|---|
| Agent Licensing | Issue, suspend, and revoke producer licenses |
| Consumer Services | Handle complaints and protect policyholders |
| Fraud Investigation | Investigate and prosecute insurance fraud |
| Fire Marshal | State Fire Marshal is under DFS |
| Treasury | State treasury and accounting functions |
Office of Insurance Regulation (OIR)
The Office of Insurance Regulation (OIR) is a separate entity from DFS that reports directly to the Financial Services Commission:
OIR Functions
| Function | Description |
|---|---|
| Rate Regulation | Review and approve insurance rates |
| Form Approval | Approve policy forms |
| Financial Examinations | Examine insurer solvency |
| Market Conduct | Examine insurer business practices |
| Company Licensing | License insurance companies |
Financial Services Commission
The Financial Services Commission consists of:
- The Governor
- The Attorney General
- The Chief Financial Officer
- The Commissioner of Agriculture
Exam Tip: Remember that the CFO is elected and heads DFS, while OIR reports to the Financial Services Commission (not the CFO).
Rate Regulation
Florida uses different rate regulation approaches depending on the line of insurance:
Rate Regulation by Line
| Line of Insurance | Rate Regulation |
|---|---|
| Residential Property | Prior approval required |
| Auto Insurance | File and use |
| Commercial Property | File and use |
| Workers' Compensation | NCCI files rates |
How is the Florida Chief Financial Officer (CFO) selected?
Which entity is responsible for approving insurance rates in Florida?