Chapter 6- FL Statutes, Rules, & Regulations Common to All Lines

If a licensee changes his or her residence address, within how many days must the department be notified?

30

All agents licensed in this state must complete how many hours of continuing education specific to law and ethics? 2 3 4 5

4

What level of authority is given to the Office of Insurance Regulation with respect to examination of insurer's activities to determine compliance Unfair Trade Practice laws? A. Absolute B. Voluntary C. Limited D. Civil

A. Absolute

Which of the following is NOT a responsibility of the Office of Insurance Regulation? AEnacting new insurance laws BEnforcing the Insurance Code CIssuing certificates of authority DInstituting legal proceedings

AEnacting new insurance laws *New laws are enacted by the state legislature.

What is the major difference between a stock company and a mutual company? A. Types of policies issued B. Ownership C. Amount of benefits D. Number of producers

B. Ownership

When an insurer terminates an agent's appointment, the insurer must do all of the following EXCEPT AMake sure that the agent's contract rights are not violated. BProvide a 30-day advance notice to the Commissioner. CProvide a 60-day advance notice to the agent. DFile a written notice with the department of insurance within 30 days of termination.

BProvide a 30-day advance notice to the Commissioner.

Which of the following best describes a misrepresentation? AMaking a maliciously critical statement that is intended to injure another person BDiscriminating among individuals of the same insuring class CIssuing sales material with exaggerated statements about policy benefits DMaking a deceptive or untrue statement about a person engaged in the insurance business

CIssuing sales material with exaggerated statements about policy benefits

Which of the following must an insurer obtain in order to transact insurance within a given state? Producers certificate Business entity license Certificate of authority Insurers license

Certificate of authority

In insurance transactions, fiduciary responsibility means AMaintaining a good credit record. BBeing liable with respect to payment of claims. CCommingling premiums with agent's personal funds. DHandling insurer funds in a trust capacity.

DHandling insurer funds in a trust capacity.

The agent in charge of an agency must hold which of the following licenses? Securities Surplus lines General lines Limited lines

General lines

All of the following would be considered an insurance transaction EXCEPT Soliciting a policy. Advising a policyholder regarding a claim. Negotiating coverage. Obtaining an insurance license.

Obtaining an insurance license.

A participating insurance policy may do which of the following? Pay dividends to the policyowner Provide group coverage Pay dividends to the stockholder Require 80% participation

Pay dividends to the policyowner

Which of the following statements is INCORRECT? discrimination in rates, premiums, policy benefits, etc. for persons within the same class or with the same life expectancy is illegal. Replacing insurance policies for the purpose of making commissions is legal. Misrepresenting the true nature or facts of a policy or its benefit in order to induce a policyholder to surrender one policy and replace it with another is illegal. It is illegal to be involved in any activity of boycott, coercion, or intimidation that is intended to restrict fair trade or to create a monopoly.

Replacing insurance policies for the purpose of making commissions is legal.

An insurance agent B likes to add additional coverages to applicants' policies and charge them for such coverages without their knowledge. The agents is guilty of ARebating. BDefamation. CSliding. DMisrepresentation.

Sliding

When transacting business in this state an insurer formed under the laws of another country is known as a/an AAdmitted insurer. BAlien insurer. CDomestic insurer. DForeign insurer.

b)Alien insurer.

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as False advertising Coercion Rebating Twisting

Rebating

What is reinsurance? An agreement between an insurer and an insured An agreement between a ceding insurer an assuming insurer An agreement between an originating insurer and a ceding insurer An agreement between a domestic insurer and a foreign insurer

An agreement between a ceding insurer an assuming insurer

What is a foreign insurer? An insurer with a home office in another country An insurer with licensed agents doing business in other countries An insurer with licensed agents who are citizens in more than one country An insurer with a home office in another state

An insurer with a home office in another state

How often must domestic insurance companies be examined by the Chief Financial Officer in Florida? Annually At least every 5 years Every 2 years Not more frequently than every 3 years

At least every 5 years

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. The insurer is hoping that this advertising will help to eliminate the competition and therefore create a monopoly. Which of the following best describes this act? Legal, if the Guaranty Association endorses it Legal, provided that the other insurers are paid royalties for the usage of their names Illegal This is legal, provided that the information can be verified.

Illegal

All of following are the general qualifications for an agent's license EXCEPT Have a high school diploma. Be found competent and trustworthy. Be a state resident. Pass a criminal background check.

Have a high school diploma.

Insurance contracts are agreements between which two parties? Insurer and policyowner Producer and insurer Attorneys for any parties involved in any contract Producers and consumers

Insurer and policyowner

Which of the following would NOT be a violation of state insurance regulations? Agent A uses her license to write only insurance for herself and her immediate family. Agent B charges his clients a consulting fee, in addition to the premium for placing a policy. Agent C uses her license to write only business other than controlled. Agent D collects premiums due on policies and deposits the funds in his own personal account.

Agent C uses her license to write only business other than controlled.

Which of the following is true regarding branch agency licensing? The branch must secure an agency license. There are no special licensing requirements. Agent in charge must be licensed. All its agents must be licensed.

Agent in charge must be licensed.

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices? Stating that the insurance policy is a share of stock Exaggerating the benefits provided in the policy Stating that the competitors will arbitrarily increase their premiums each year Making comparisons between different policies

Making comparisons between different policies

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability? Sexual orientation Address Occupation Age

Sexual orientation

An agent's appointment has been denied. Which of the following is true? No refunds will be issued. All application fees will be refunded. Appointment fees will be refunded. State taxes may be refunded upon a written request.

State taxes may be refunded upon a written request.