What is a consequence of failing to comply with Florida’s insurance regulations?

Failing to comply with Florida’s insurance regulations can lead to serious consequences, including licensing suspension or revocation. Insurance companies and agents are required to adhere to specific state laws and regulations designed to protect consumers and ensure fair practices within the industry. If an entity is found to be non-compliant—whether through unethical practices, inadequate financial disclosures, or other violations—it may face disciplinary actions from the Florida Department of Financial Services. This can include losing their ability to conduct business within the state, which significantly impacts their operations and reputation.

In contrast, the other options provided do not align with the real outcomes of regulatory non-compliance. Increased market share or expanded coverage options are typically positive outcomes that are contingent on compliance and sound business practices. Similarly, increased customer loyalty is built upon trust and reputation, which would likely suffer in the event of regulatory violations.