What happens if an insured chooses a non-licensed insurer?

When an insured chooses to work with a non-licensed insurer, they may face penalties due to regulatory violations. In Florida, surplus lines insurance is specifically designed for situations where coverage is unavailable from licensed insurers. To legally procure surplus lines coverage, the insured must ensure that the insurer they are dealing with is appropriately licensed or eligible for surplus lines status in the state.

Engaging with a non-licensed insurer can lead to a range of consequences, including financial penalties and the potential for claims to be denied because the insurer may not adhere to state regulations. Thus, the insured puts themselves at risk by not following the proper channels. This emphasizes the importance of choosing licensed or authorized insurers to ensure compliance and protection under the law.

The other options do not accurately reflect the consequences of selecting a non-licensed insurer. There is no legal protection offered to the insured, so option A is incorrect. While it's possible to find various coverage options within the surplus lines market, choosing a non-licensed insurer does not inherently increase these options, which invalidates option C. Lastly, appealing to the Office of Insurance Regulation (OIR) for issues arising from non-licensed insurers is not a feasible solution, as the OIR would not have jurisdiction in matters involving un