Florida Insurance Claims Adjuster License Practice Exam

What is the function of the insurance department?

1. To pass insurance laws

2. To administer insurance laws

3. To negotiate ethical standards within the insurance industry

4. To act as an advocate for agents and adjusters

The correct answer is: To administer insurance laws

The main function of the insurance department is to administer insurance laws. This means that they are in charge of enforcing and regulating insurance laws and policies within a given jurisdiction. Option A is incorrect because it implies that the insurance department creates laws, when in reality they are responsible for upholding and enforcing them. Option C is incorrect because negotiating ethical standards is not a primary function of the insurance department, although they may play a role in promoting ethical behavior within the insurance industry. Option D is incorrect because the insurance department is not meant to solely advocate for agents and adjusters, but rather to regulate the entire insurance industry for the benefit of all stakeholders.