Which penalty is NOT a consequence of placing business with an unauthorized insurer?

Placing business with an unauthorized insurer can lead to various penalties, reflecting the seriousness of circumventing regulatory standards established to protect consumers. While some penalties are quite severe, such as being charged with a third-degree felony or facing the revocation of an insurance license, a first-degree misdemeanor is not typically associated with this action.

Being classified as a third-degree felony indicates a significant violation, which may involve substantial fines or imprisonment. Additionally, the revocation of an insurance license serves to uphold regulatory integrity within the insurance market by preventing individuals from operating without proper authorization or oversight.

Under Florida law, individuals found engaging in business with unauthorized insurers are also responsible for unpaid claims that arise from such actions. This means they could be held liable for financial burdens that result from the unauthorized placement of insurance.

In contrast, a first-degree misdemeanor is generally lesser in severity and relates to less severe infractions of the law. In the context of placing business with unauthorized insurers, it does not represent the typical penalty enforced. Therefore, identifying the first-degree misdemeanor as not a consequence aligns with the legal framework governing these practices in Florida.