Life/Health 17
An ordinary class insurer writes life insurance on the legal reserve plan, for amounts of: Select one: a. $500 or more b. $1,000 or more c. $2,000 or more d. $10,000 or more
The correct answer is: $1,000 or more
What is the maximum fine for failure to comply with a subpoena? Select one: a. $500 per violation b. $1,000 per violation c. $2,000 per violation d. $5,000 per violation
The correct answer is: $1,000 per violation
What is the maximum fine for committing an unfair trade practice when selling health insurance? Select one: a. $20,000 b. $50,000 c. $100,000 d. $200,000
The correct answer is: $200,000
How much is the fine if an agent fails to report a change in address or phone number in the required timeframe? Select one: a. $250 every time b. $500 every time c. $250 the first time and $500 the second time d. $500 the first time and $1000 the second time
The correct answer is: $250 the first time and $500 the second time
What is the maximum liability of the Florida Life and Health Guaranty Association for death benefits or health insurance claims? Select one: a. $100,000 b. $300,000 c. $500,000 d. $1,000,000
The correct answer is: $300,000
What is the maximum fine for willfully submitting fraudulent signatures on any insurance related document? Select one: a. $5,000 per violation b. $10,000 per violation c. $40,000 per violation d. $50,000 per violation
The correct answer is: $40,000 per violation
An agent who violates a cease and desist order may be subject to a maximum fine of: Select one: a. $5,000 b. $10,000 c. $50,000 d. $100,000
The correct answer is: $50,000
What is the biennial license fee for an insurance agent in Florida? Select one: a. $50 b. $60 c. $100 d. $125
The correct answer is: $60
What is the maximum fine for an intentional act of twisting or churning? Select one: a. $5,000 b. $10,000 c. $75,000 d. $50,000
The correct answer is: $75,000
What is the maximum fine for twisting? Select one: a. $5,000 per violation b. $10,000 per violation c. $75,000 per violation d. $50,000 per violation
The correct answer is: $75,000 per violation
In Florida, group life insurance contracts must cover at least: Select one: a. 1 person b. 2 people c. 10 people d. 25 people
The correct answer is: 1 person
A health maintenance contract must be delivered by the first of the effective date of coverage or within how many working days from approval of the enrollment form? Select one: a. 5 business days b. 7 business days c. 10 business days d. 15 business days
The correct answer is: 10 business days
What is the minimum grace period for subscribers of HMOs? Select one: a. 5 days b. 10 days c. 20 days d. 31 days
The correct answer is: 10 days
Agents who have been licensed 25 years or more and have a CLU designation must complete how many continuing education hours every 2 years? Select one: a. 10 hours b. 20 hours c. 24 hours d. 32 hours
The correct answer is: 10 hours
What is the maximum policy loan interest rate for life insurance policies in Florida? Select one: a. 5% b. 8% c. 10% d. 12%
The correct answer is: 10%
In Florida, how much time is the "free look" period on a life insurance policy? Select one: a. 10 days b. 14 days c. 30 days d. 31 days
The correct answer is: 14 days
What is the minimum free look period for life insurance policies in Florida? Select one: a. 10 days b. 14 days c. 30 days d. 31 days
The correct answer is: 14 days
In Florida, what is the minimum age to become licensed as an insurance producer? Select one: a. 18 b. 19 c. 21 d. 25
The correct answer is: 18
Individual and group health policies must provide coverage for newborn children from the moment of birth for at least: Select one: a. 1 month b. 3 months c. 9 months d. 18 months
The correct answer is: 18 months
How much time must an association have been in existence to be eligible to purchase a group life insurance policy? Select one: a. 3 months b. 6 months c. 1 year d. 2 years
The correct answer is: 2 years
After an HMO receives a claim, how much time does it have to pay the claim? Select one: a. 20 days b. 30 days c. 31 days d. 45 days
The correct answer is: 20 days
Agents who have been licensed for more than 6 years, but less than 25 years, must complete how many continuing education hours every 2 years? Select one: a. 10 hours b. 20 hours c. 24 hours d. 32 hours
The correct answer is: 20 hours
In Florida, how much time does an insured have to return an annuity for a full refund? Select one: a. 7 days b. 10 days c. 14 days d. 21 days
The correct answer is: 21 days
Agents who have been licensed for less than 6 years must complete how many continuing education hours every 2 years? Select one: a. 10 hours b. 20 hours c. 24 hours d. 32 hours
The correct answer is: 24 hours
How many hours of continuing education are required every 2 years for Florida life and health agents? Select one: a. 12 hours b. 24 hours c. 36 hours d. 40 hours
The correct answer is: 24 hours
Pre-existing conditions may be excluded for a maximum of: Select one: a. 6 months b. 12 months c. 18 months d. 24 months
The correct answer is: 24 months
Florida's definition of a dependent is: a child of the insured up to the age of: Select one: a. 19 b. 21 c. 24 d. 25
The correct answer is: 25
In Florida, how many continuing education hours relating to variable annuities must agents complete? Select one: a. 2 hours b. 3 hours c. 4 hours d. 5 hours
The correct answer is: 3 hours
How much time must a terminated individual have been in a group health maintenance contract before they can convert to an individual health maintenance contract? Select one: a. 3 months b. 6 months c. 9 months d. 12 months
The correct answer is: 3 months
How long must an insurer keep a copy of every document authorized by the insurer? Select one: a. 1 year b. 2 years c. 3 years d. 5 years
The correct answer is: 3 years
Florida requires health insurers offer the option for policyholders/certificate holders the option to insure a dependent child up to the age of: Select one: a. 30 b. 40 c. 50 d. 60
The correct answer is: 30
How much time does an agent have to report a change in address or phone number before a fine is assessed? Select one: a. 15 days b. 30 days c. 45 days d. 60 days
The correct answer is: 30 days
How much time does an appointing entity have to report a termination to the Florida Department of Insurance? Select one: a. 14 days b. 15 days c. 30 days d. 31 days
The correct answer is: 30 days
If a licensee is found guilty of a felony, how much time do they have to report it to the Florida Department of Insurance? Select one: a. 7 days b. 15 days c. 21 days d. 30 days
The correct answer is: 30 days
How much time does an individual have to convert to a new policy after the termination of their group policy? Select one: a. 28 days b. 30 days c. 31 days d. 60 days
The correct answer is: 31 days
How much notice must an appointing entity give an appointee before their termination? Select one: a. 2 weeks b. 30 days c. 31 days d. 60 days
The correct answer is: 60 days
How long may a licensed nonresident of Florida transact insurance before they must have a resident license? Select one: a. 30 days b. 60 days c. 90 days d. 180 days
The correct answer is: 90 days
Life insurance purchased from a fraternal is considered: Select one: a. A policy b. A certificate of membership c. An independent fraternal contract d. All of the above
The correct answer is: A certificate of membership
What is the criminal classification for twisting? Select one: a. A first-degree misdemeanor b. A second-degree misdemeanor c. A third-degree misdemeanor d. A first-degree felony
The correct answer is: A first-degree misdemeanor
Which of the following groups is not allowed to buy group insurance? Select one: a. A non-union parts supply shop b. A religious organization c. A group whose sole purpose is obtaining insurance coverage d. A day-care center with only 3 employees
The correct answer is: A group whose sole purpose is obtaining insurance coverage
Which of the following is not considered a life insurance replacement transaction? Select one: a. A life insurance policy converted to reduced paid-up insurance b. A participating life insurance policy in which the one-year term dividend option is used c. A life insurance policy pledged as collateral d. A lapsed life insurance policy
The correct answer is: A participating life insurance policy in which the one-year term dividend option is used
What is the criminal classification for submitting fraudulent signatures on any insurance related document? Select one: a. A third-degree misdemeanor b. A first-degree felony c. A second-degree felony d. A third-degree felony
The correct answer is: A third-degree felony
Which of the following is false? Select one: a. Each insurance agency must have an agent in charge. b. An agent in charge must be full-time at the particular agency location. c. All branch locations may also be licensed together. d. One agent in charge can manage several branch locations.
The correct answer is: All branch locations may also be licensed together.
Who are the members of the Florida Life and Health Guaranty Association? Select one: a. The CFO and their appointees b. The CFO, the Commissioner of the Office of Insurance Regulation, and their appointees c. Elected representatives of some insurers d. All insurers authorized by the state of Florida
The correct answer is: All insurers authorized by the state of Florida
A person insured under a group life insurance policy may make an assignment of which of the following? Select one: a. Conversion b. Beneficiary c. Policy proceeds d. All of the above
The correct answer is: All of the above
Agents selling variable products must: Select one: a. Have a securities license b. Have a life and variable annuity insurance license c. Be appointed with at least one insurance company d. All of the above
The correct answer is: All of the above
For which of the following can an agent lose their license? Select one: a. Lack of technical knowledge b. Lack of trustworthiness c. Deception in regard to an insurance policy d. All of the above
The correct answer is: All of the above
HMOs are characterized by: Select one: a. Early disease detection b. Preventive care c. Greater efficiency of health care delivery d. All of the above
The correct answer is: All of the above
Health insurance policies sold in Florida must cover which of the following for the treatment of diabetes? Select one: a. Blood glucose monitor and test strips b. Outpatient training courses for diabetes self-management c. Outpatient education services for treating diabetes d. All of the above
The correct answer is: All of the above
In Florida, before an insurer can sell to a senior they must: Select one: a. Obtain information concerning the senior consumer's investment objectives b. Obtain information concerning the senior consumer's financial status c. Obtain information concerning the senior consumer's tax status d. All of the above
The correct answer is: All of the above
In Florida, which of the following is considered as misrepresentation? Select one: a. Making a statement about an insurer that is untrue b. Publishing an advertisement in a magazine that is misleading c. Broadcasting a television commercial that is deceptive d. All of the above
The correct answer is: All of the above
In Florida, which of the following is illegal when not specified in the contract? Select one: a. Rebates of premiums payable on the contract b. Extra dispensation of dividends c. Increase in the benefits d. All of the above
The correct answer is: All of the above
In insurance terms, what is "sliding"? Select one: a. Representing to the applicant that a specific ancillary coverage or product is required by law in conjunction with the purchase of insurance when such coverage or product is not required b. Representing to the applicant that a specific ancillary coverage or product is included in the policy applied for without an additional charge when such charge is required c. Charging an applicant for a specific ancillary coverage or product, in addition to the cost of the insurance coverage applied for, without the informed consent of the applicant d. All of the above
The correct answer is: All of the above
In order to sell variable annuities in Florida, which of the following is required? Select one: a. A license from the Florida Department of Financial Services b. Securities license c. An appointment with an insurer d. All of the above
The correct answer is: All of the above
In the absence of a diagnosis of a condition related to genetic information, no health insurer or HMO authorized to transact insurance in Florida may: Select one: a. Cancel coverage based on such information b. Limit coverage based on such information c. Deny coverage based on such information d. All of the above
The correct answer is: All of the above
What is the purpose of life insurance replacement regulations? Select one: a. To regulate the activities of insurers and agents b. To protect the interests of life insurance policy owners c. To reduce the opportunity for misrepresentation and incomplete disclosures d. All of the above
The correct answer is: All of the above
Which of the following are typically NOT covered in health insurance policies? Select one: a. Intentional self-inflicted injuries b. Cosmetic surgery c. Mental disorders d. All of the above
The correct answer is: All of the above
Which of the following is a correct statement concerning an application? Select one: a. Agents cannot make changes to the insurance application. b. The insurer can make changes with the written consent of the insured. c. The insurer can make insertions for administrative purposes only. d. All of the above
The correct answer is: All of the above
Which of the following is a duty of the Officer of the Office of Insurance Regulation? Select one: a. Enforce the provisions of the Insurance Code and execute the duties imposed by the Insurance Code b. Conduct investigations of insurance matters to determine if any person has violated an insurance law c. Collect, propose, publish, and disseminate Insurance Code information d. All of the above
The correct answer is: All of the above
Which of the following is an eligible group for group life insurance? Select one: a. Employer b. Labor union c. Credit union d. All of the above
The correct answer is: All of the above
Which of the following is considered unfair discrimination? Select one: a. A health insurance company refusing coverage to a person who has sickle-cell trait b. A health insurance company refusing coverage to a person who is female c. A health insurance company refusing coverage to a person who is unmarried d. All of the above
The correct answer is: All of the above
Which of the following must appear on the first page of an application for an annuity? Select one: a. The name of the insuring entity b. The name of the agent c. The agent's license number d. All of the above
The correct answer is: All of the above
Which of the following must be shown on the first page of the application form at the time the premium is quoted? Select one: a. The name of the insuring entity b. The name of the agent c. The license number of the agent d. All of the above
The correct answer is: All of the above
Which of the following would be considered defamation? Select one: a. A printed statement about an individual agent which is false b. An oral statement which is maliciously critical of another insurance company c. A written statement which is derogatory to the financial condition of insurance company d. All of the above
The correct answer is: All of the above
Who administers Florida insurance laws? Select one: a. The Chief Financial Officer (CFO) b. The Commissioner of the Office of Insurance Regulation c. The Financial Services Commission d. All of the above
The correct answer is: All of the above
Who of the following is on the Financial Services Commission? Select one: a. The Florida Commissioner of Agriculture b. The Florida Attorney General c. The Governor of Florida d. All of the above
The correct answer is: All of the above
Which of the following is true? Select one: a. An insurer can pay a commission to an unlicensed agent. b. An agent can pay a commission to another agent. c. An agent can receive a commission before being appointed. d. None of the above
The correct answer is: An agent can pay a commission to another agent.
Which of the following describes an HMO? Select one: a. An authorized organization which provides comprehensive care through an arrangement with physicians and medical providers b. An authorized organization which provides comprehensive care at a reduced cost c. An authorized organization which provides comprehensive care for individuals who don't qualify for standard insurance d. An authorized organization which provides comprehensive care for a fixed period of time
The correct answer is: An authorized organization which provides comprehensive care through an arrangement with physicians and medical providers
Which of the following best defines the term "subscriber"? Select one: a. Any medical provider licensed to provide health care services in Florida b. An entity or individual who has contracted with an HMO for health care coverage c. An authorized organization or person that furnishes health care services d. None of the above
The correct answer is: An entity or individual who has contracted with an HMO for health care coverage
Which of the following defines a subscriber, as related to an HMO? Select one: a. A physician who has a contract with an HMO b. An individual or entity that has health care coverage with an HMO c. An insurance company or agency which sells HMO contracts d. An individual who has health care coverage with an HMO
The correct answer is: An individual or entity that has health care coverage with an HMO
Which of the following defines a subscriber, as related to an HMO? Select one: a. An individual who has health care coverage with an HMO b. An insurance company or agency which sells HMO contracts c. An individual or entity that has health care coverage with an HMO d. A physician who has a contract with an HMO
The correct answer is: An individual or entity that has health care coverage with an HMO
Which of the following is false? Select one: a. An insurance agent in Florida cannot be a funeral director. b. An insurance agent in Florida cannot be an employee of a state service department. c. An insurance agent in Florida cannot be a legal alien. d. An insurance agent in Florida cannot be an employee of the United States Department of Veterans Affairs.
The correct answer is: An insurance agent in Florida cannot be a legal alien.
Which of the following is true? Select one: a. An insurance application must have the agent's name and license number on the first page. b. An insurance application must have the agent's name, license number, and address on the first page. c. An insurance application must have the agent's name and license number on the last page. d. An insurance application must have the agent's name on the first page.
The correct answer is: An insurance application must have the agent's name and license number on the first page.
What is an impaired insurer? Select one: a. An insolvent insurer b. An insurer that may potentially be unable to fulfill its contractual obligations c. An insurer which doesn't have its certificate of authority renewed d. An insurer that loses all of its agents through resignation or retirement
The correct answer is: An insurer that may potentially be unable to fulfill its contractual obligations
How frequently must HMOs file a financial report with the Office of Insurance Regulation? Select one: a. Annually b. Every 2 years c. Every 3 years d. Every 5 years
The correct answer is: Annually
How often must HMO's file a financial report? Select one: a. Quarterly b. Semi-annually c. Annually d. Bi-annually
The correct answer is: Annually
How often can the CFO examine the records and assets of an authorized insurer? Select one: a. Annually b. Every 3 years c. Every 5 years d. As often as he or she wants
The correct answer is: As often as he or she wants
Which of the following are generally prohibited in Florida? Select one: a. Indirect insurers b. Assessment insurers c. Viatical insurers d. Legal reserve insurers
The correct answer is: Assessment insurers
How long must agents keep transaction records involving premiums? Select one: a. At least 1 year b. At least 2 years c. At least 3 years d. Indefinitely
The correct answer is: At least 3 years
Which of the following best describes the enrollment requirements for HMOs providing group coverage in Florida? Select one: a. Annually b. Twice a year c. At least once every 12 months for a period of 30 days d. At least once every 18 months for a period of 30 days
The correct answer is: At least once every 18 months for a period of 30 days
How frequently must domestic insurers be examined by the Office of Insurance Regulation? Select one: a. Annually b. At least once every other year c. At least once every 5 years d. Upon the Office's discretion
The correct answer is: At least once every 5 years
How often must the CFO do an examination of a domestic insurer? Select one: a. At least once every 2 years b. At least once every 3 years c. At least once every 5 years d. There is no minimum time for an examination
The correct answer is: At least once every 5 years
A Medicare Supplement Insurance advertisement must be sufficiently complete and clear to avoid deception or the capacity or tendency to mislead or deceive based on what type of person? Select one: a. Low education and average intelligence b. Low education and low intelligence c. Average education and average intelligence d. Florida laws do not specify this requirement.
The correct answer is: Average education and average intelligence
What makes variable life insurance variable? Select one: a. The premiums can vary, usually decreasing over the life of the policy. b. Benefits vary based on the assets held in a separate account. c. Benefits vary based on the time the policy has been in force. d. The premiums can vary, usually increasing over the life of the policy.
The correct answer is: Benefits vary based on the assets held in a separate account.
Life insurers invest predominately in: Select one: a. Corporate bonds and government bonds b. Mortgage loans and corporate stocks c. Bonds and mortgages d. Real estate and corporate stocks
The correct answer is: Bonds and mortgages
Life insurers invest predominately in: Select one: a. Mortgage loans and corporate stocks b. Bonds and mortgages c. Corporate bonds and government bonds d. Real estate and corporate stocks
The correct answer is: Bonds and mortgages
How much time must a person be cancer free before they can be issued a health insurance policy that covers bone marrow transplants? Select one: a. 1 year b. 2 years c. 5 years d. Bone marrow transplants can never be excluded.
The correct answer is: Bone marrow transplants can never be excluded.
Which of the following may impose penalties for breach of the Florida Insurance Code? Select one: a. Chief Financial Officer b. State court system c. Chief Financial Officer and the State court system d. None of the above
The correct answer is: Chief Financial Officer and the State court system
All of the following practices must be used by agents selling annuities to senior citizens, EXCEPT: Select one: a. Cold lead advertising b. Suitability standards are utilized c. The agent must make reasonable efforts to obtain information regarding the client's tax and financial status to assure that the purchase is in the client's best interest d. The agent must have reasonable grounds to believe that the sale of an annuity is in the client's best interest
The correct answer is: Cold lead advertising
All of the following practices must be used by agents selling annuities to senior citizens, EXCEPT: Select one: a. Suitability standards are utilized b. The agent must make reasonable efforts to obtain information regarding the client's tax and financial status to assure that the purchase is in the client's best interest c. Cold lead advertising d. The agent must have reasonable grounds to believe that the sale of an annuity is in the client's best interest
The correct answer is: Cold lead advertising
How are insurance agents paid? Select one: a. Salary plus commission b. Salary only c. Commission plus an additional fee is allowed from the client with the client's approval d. Commission only
The correct answer is: Commission plus an additional fee is allowed from the client with the client's approval
All of the following are unfair trade practices, EXCEPT: Select one: a. Twisting b. False advertising c. Coverage continuation d. False statements
The correct answer is: Coverage continuation
Which of the following is NOT a true statement about breast cancer coverage in a health insurance policy? Select one: a. Issuance of a health insurance policy cannot be denied based on the insured having been diagnosed with a fibrocystic condition due to breast cancer. b. Renewal of a health insurance policy cannot be denied based on the insured having been diagnosed with a fibrocystic condition due to breast cancer. c. Coverage for breast cancer can be cancelled after symptoms are discovered. d. Coverage can be denied based on a breast biopsy that demonstrates an increased disposition to developing breast cancer.
The correct answer is: Coverage for breast cancer can be cancelled after symptoms are discovered.
Which entity regulates retirement plans in Florida? Select one: a. ERISA b. Florida Department of Financial Services c. Florida Office of Insurance Regulation d. Florida Department of Seniors and Aging
The correct answer is: ERISA
Which of the following is not true regarding the licensing of insurance agencies? Select one: a. Each insurance agency operating in Florida must be licensed or registered. b. Each insurance agency must have at least two licensed and active insurance agents. c. An insurance agency includes individuals, firms, partnerships, corporate or associations. d. Each branch location of an insurance agency must be licensed if consumers may purchase insurance from that location.
The correct answer is: Each insurance agency must have at least two licensed and active insurance agents.
Which of the following is best described as a group formed for the purpose of obtaining insurance coverage? Select one: a. Unnatural group b. Natural group c. Fictitious group d. Small employer group association
The correct answer is: Fictitious group
The fact that an insurance agent cannot commingle their insurance funds with their personal funds is referred to in legal terms as: Select one: a. Legal liability b. Separation of assets c. Monetary Reconciliation d. Fiduciary responsibility
The correct answer is: Fiduciary responsibility
What is the charge for an act of twisting or churning? Select one: a. First degree misdemeanor b. Second degree misdemeanor c. First degree felony d. Second degree felony
The correct answer is: First degree misdemeanor
All of the following are true regarding coverage of mental/nervous disorders under group health plans in Florida, EXCEPT: Select one: a. Insurers may charge an additional premium for coverage of mental/nervous disorders under a group plan b. The policyholder must be able to elect coverage for mental and/or nervous disorders as part of the application under a group health plan c. Group policies must make available to the policyholder, as part of the application, coverage for mental and/or nervous disorders d. Group health plans do not cover mental and/or nervous disorders
The correct answer is: Group health plans do not cover mental and/or nervous disorders
All of the following are true of HMOs, EXCEPT: Select one: a. HMOs emphasize preventive care, early disease detection and cost control management b. HMOs are authorized organizations or persons that furnish health care services c. HMOs may transact health insurance d. HMOs provide services on a prepaid basis
The correct answer is: HMOs may transact health insurance
In order to operate as an HMO in Florida, an entity must fulfill all of the following requirements, EXCEPT: Select one: a. Have a minimum surplus of $2 million b. All forms and applications must be submitted and approved c. All rates, bylaws and marketing practices must be approved d. Have issued a certificate of authority from the Florida Agency for Health Care Administration
The correct answer is: Have a minimum surplus of $2 million
Who may solicit applications for coverage under an HMO? Select one: a. Health broker b. Health maintenance broker c. Excess and surplus lines broker d. Health agent
The correct answer is: Health agent
Who may solicit applications for coverage under an HMO? Select one: a. Health maintenance broker b. Excess and surplus lines broker c. Health agent d. Health broker
The correct answer is: Health agent
Which of the following statements is correct regarding health insurers' coverage for bone marrow transplants? Select one: a. Health insurers may not exclude coverage for bone marrow transplants b. Health insurers may exclude coverage for bone marrow transplants c. Health insurers may only exclude coverage for bone marrow transplants if the insured does not have cancer d. Health insurers may only exclude coverage for bone marrow transplants if the insured purchased health insurance coverage within the past 6 months
The correct answer is: Health insurers may not exclude coverage for bone marrow transplants
Which of the following statements is correct regarding health insurers' coverage for bone marrow transplants? Select one: a. Health insurers may not exclude coverage for bone marrow transplants b. Health insurers may only exclude coverage for bone marrow transplants if the insured purchased health insurance coverage within the past 6 months c. Health insurers may only exclude coverage for bone marrow transplants if the insured does not have cancer d. Health insurers may exclude coverage for bone marrow transplants
The correct answer is: Health insurers may not exclude coverage for bone marrow transplants
Which of the following statements is correct regarding health insurers' coverage for bone marrow transplants? Select one: a. Health insurers may only exclude coverage for bone marrow transplants if the insured purchased health insurance coverage within the past 6 months b. Health insurers may only exclude coverage for bone marrow transplants if the insured does not have cancer c. Health insurers may not exclude coverage for bone marrow transplants d. Health insurers may exclude coverage for bone marrow transplants
The correct answer is: Health insurers may not exclude coverage for bone marrow transplants
Which of the following is NOT true about genetic testing in Florida? Select one: a. Health insurers may refuse to issue a health insurance policy based on the diagnosis of a condition related to genetic information b. Health insurers may refuse to issue a disability income policy based on genetic information c. Health insurers may require and solicit genetic information d. Health insurers may not use genetic test results
The correct answer is: Health insurers may require and solicit genetic information
Which of the following best describes a contract between an HMO and a subscriber? Select one: a. Health insurance contract b. Capitation c. Health insurance policy d. Health maintenance contract
The correct answer is: Health maintenance contract
Which of the following services is not provided by a prepaid health clinic? Select one: a. Preventive health care b. Hospital inpatient physician services c. Emergency care d. Ambulatory diagnostic treatment
The correct answer is: Hospital inpatient physician services
How must the notice be given when an appointee is terminated? Select one: a. In person only b. No method is specified in Florida. c. In person or by mail d. By mail only
The correct answer is: In person or by mail
Which of the following best describes controlled business? Select one: a. Insurance transacted to an agent's family b. Insurance transacted to an agent's family, amounting to 40% of the agent's total business c. Insurance transacted to an agent's family, amounting to more than the agent's total business sold to the general public d. None of the above
The correct answer is: Insurance transacted to an agent's family, amounting to more than the agent's total business sold to the general public
In Florida, who pays the biennial agent appointment renewal fee? Select one: a. Agents b. Insurers c. Office of Insurance Regulation d. None of the above
The correct answer is: Insurers
Which of the following penalties may be applied to an agent committing an unfair trade practice? Select one: a. License suspension, revocation, nonrenewal or refusal to issue b. Imprisonment for up to 3 years c. Fine of $50,000 d. All of the above
The correct answer is: License suspension, revocation, nonrenewal or refusal to issue
Who may sell variable annuity contracts? Select one: a. Any life and health agent b. Life and variable annuities agent c. Life and variable annuities agent with a securities license d. None of the above
The correct answer is: Life and variable annuities agent with a securities license
Which of the following is prohibited in Florida? Select one: a. A charge agent being in charge of one or more agency locations b. An insurance agent working out of their home c. Mail order insurance without an agent d. All of the above
The correct answer is: Mail order insurance without an agent
Authorized insurers must submit an annual statement to the Office of Insurance Regulation by: Select one: a. January 1st, annually b. March 1st, annually c. March 31st, annually d. December 31st, annually
The correct answer is: March 1st, annually
What is the penalty for committing an unintentional act of twisting? Select one: a. Misdemeanor of the first degree and an administrative fine of up to $5,000 b. Misdemeanor of the first degree and an administrative fine of up to $10,000 c. Misdemeanor of the second degree and an administrative fine of up to $5,000 d. Misdemeanor of the second degree and an administrative fine of up to $10,000
The correct answer is: Misdemeanor of the first degree and an administrative fine of up to $5,000
Which of the following penalties is applied for committing an intentional act of churning? Select one: a. Misdemeanor of the second degree and fine of $3,000 b. Misdemeanor of the third degree and fine of $100,000 c. Misdemeanor of the first degree and fine of $75,000 d. None of the above
The correct answer is: Misdemeanor of the first degree and fine of $75,000
The insurer has the option of using an adjustable interest rate in which the maximum rate is based on: Select one: a. The NASDAQ average b. The Dow Jones Industrial average c. Moody's corporate bond index d. Federal prime lending rate
The correct answer is: Moody's corporate bond index
In Florida, how many appointments may an agent hold? Select one: a. 1 b. 3 c. 10 d. No limit
The correct answer is: No limit
In which of the following may insurers not invest? Select one: a. Corporate bonds b. Mortgage loans c. Real estate d. None of the above
The correct answer is: None of the above
Someone who is a licensed agent only may use which term to describe themself? Select one: a. Financial planner b. Financial consultant c. Investment advisor d. None of the above
The correct answer is: None of the above
Which of the following is NOT included in "comprehensive health care services" as defined by Florida? Select one: a. Clinical pathology laboratory services b. Home health services c. Health education d. None of the above
The correct answer is: None of the above
What class of insurers are variable annuity insurers? Select one: a. Variable class b. Ordinary-variable contract class c. Ordinary class d. Ordinary-variable class
The correct answer is: Ordinary-variable contract class
All of the following are excluded from health insurance contracts, EXCEPT: Select one: a. Intentional self-inflicted injuries b. Military service c. Osteoporosis d. Act of war
The correct answer is: Osteoporosis
All of the following are excluded from health insurance contracts, EXCEPT: Select one: a. Osteoporosis b. Military service c. Intentional self-inflicted injuries d. Act of war
The correct answer is: Osteoporosis
Which of the following is NOT true of a prepaid health clinic? Select one: a. Prepaid health clinics can perform emergency care. b. Prepaid health clinics only provide basic services. c. Prepaid health clinics must use the term HMO. d. Less financial capital is required than in an HMO with multiple locations.
The correct answer is: Prepaid health clinics must use the term HMO.
Which of the following is NOT true of a prepaid health clinic? Select one: a. Prepaid health clinics must use the term HMO. b. Prepaid health clinics can perform emergency care. c. Less financial capital is required than in an HMO with multiple locations. d. Prepaid health clinics only provide basic services.
The correct answer is: Prepaid health clinics must use the term HMO.
When would the Buyer's Guide normally be provided to an applicant? Select one: a. At the start of the initial meeting b. When the policy is delivered c. Prior to accepting the applicant's initial premium d. When the application is completed
The correct answer is: Prior to accepting the applicant's initial premium
When must a prospectus for a variable annuity be given to a client? Select one: a. With the contract b. Prior to purchase c. When a client first inquires about the annuity d. When the agent meets with a prospective client
The correct answer is: Prior to purchase
How are the proceeds distributed when an insured and the beneficiary die, but it is unknown who died first? Select one: a. Only a court can decide b. Proceeds are distributed as if the insured had survived the beneficiary. c. Proceeds are distributed evenly to the insured's next of kin and the beneficiary's next of kin. d. Proceeds are distributed as if the beneficiary had survived the insured.
The correct answer is: Proceeds are distributed as if the insured had survived the beneficiary.
Which of the following best describes the function of the Consumer Assistance Plan? Select one: a. Provides coverage to individuals otherwise uninsurable due to preexisting conditions b. Provides coverage to children from low-income families c. Provides coverage to subscribers of insolvent HMOs d. None of the above
The correct answer is: Provides coverage to subscribers of insolvent HMOs
Which of the following is an unfair claims settlement practice? Select one: a. Conducting an investigation based on evidence b. Providing a written statement 45 days after the incident c. Providing an explanation to the insured of the basis for a denial d. Notifying the insured of the additional needed information
The correct answer is: Providing a written statement 45 days after the incident
What does a universal life insurance policy allow a policy holder to do? Select one: a. Invest the entire premium b. Purchase life insurance for several beneficiaries c. Purchase term life insurance and invest the remaining premium d. Purchase tax-free life insurance
The correct answer is: Purchase term life insurance and invest the remaining premium
What does a universal life insurance policy allow a policy holder to do? Select one: a. Purchase tax-free life insurance b. Purchase life insurance for several beneficiaries c. Invest the entire premium d. Purchase term life insurance and invest the remaining premium
The correct answer is: Purchase term life insurance and invest the remaining premium
A rebate would NOT be allowed for which of the following? Select one: a. Rebate shall be in accordance with rebating schedule filed by the agent b. Rebate is not based on age, marital status, or occupation c. Rebate is available to all insureds in the same actuarial class d. Rebate requires the purchase of collateral business.
The correct answer is: Rebate requires the purchase of collateral business.
Which of the following best describes the duties of the Office of Insurance Regulation? Select one: a. Interpreting insurance laws for conflict resolution b. Repealing ineffective insurance laws c. Regulating insurance activities in Florida. d. Enforcing criminal penalties
The correct answer is: Regulating insurance activities in Florida.
All of the following are intents of the Health Maintenance Organization Act by Florida law, EXCEPT: Select one: a. Replace existing health care plans b. Eliminate barriers to the organization of prepaid health care plans c. Explore alternative methods of delivering health care services d. Delivery of high-quality health care
The correct answer is: Replace existing health care plans
If an agent includes an additional charge in the coverage without telling the applicant, this would be: Select one: a. Twisting b. Slipping c. Churning d. Sliding
The correct answer is: Sliding
If an agent states that certain coverage is required by law when it isn't, this would be: Select one: a. Churning b. Coercion c. Twisting d. Sliding
The correct answer is: Sliding
If an agent states that there is no charge for a certain coverage when there is, this would be: Select one: a. Twisting b. Sliding c. Coercion d. Churning
The correct answer is: Sliding
Which of the following is described as charging insureds additional fees without their consent? Select one: a. Coercion b. Twisting c. Churning d. Sliding
The correct answer is: Sliding
What insurers in Florida must have a certificate of authority? Select one: a. Reinsurers b. Excess and surplus lines insurers c. Certain captive insurers d. Stock Insurers
The correct answer is: Stock Insurers
Who supervises the Division of Insurance Agents and Agency Services? Select one: a. The Chief Financial Officer (CFO) b. The Commissioner of the Office of Insurance Regulation c. The Governor of Florida d. All of the above
The correct answer is: The Chief Financial Officer (CFO)
In Florida, what defines proper business practices expected of agents? Select one: a. Ethical Standards for Insurance Providers in the State of Florida b. The Florida Code of Ethics c. The McCain-Feingold Ethics Act d. The Southern Code of Ethics and Behavior
The correct answer is: The Florida Code of Ethics
Who is responsible for writing and amending the Florida Insurance Code? Select one: a. The Division of Insurance Agents and Agency Services b. The Financial Services Commission c. The Florida state legislature d. The Department of Financial Services
The correct answer is: The Florida state legislature
Which of the following best defines the term "capitation"? Select one: a. The fixed amount paid by subscribers to health care providers b. The fixed amount paid by subscribers to an HMO c. The fixed amount paid by health care providers to an HMO d. The fixed amount paid by an HMO to a health care provider
The correct answer is: The fixed amount paid by an HMO to a health care provider
What happens when an individual enrolled in Medicare signs up for coverage under an HMO? Select one: a. The individual will be covered under both Medicare and the HMO. b. The individual will be disenrolled from Medicare. c. Coverage under the HMO will be automatically declined. d. Both coverages will be declined.
The correct answer is: The individual will be disenrolled from Medicare.
Which of the following is NOT a reason for an insured's contract to be cancelled? Select one: a. The insured failing to pay premiums b. The insured performing an act or practice that constitutes fraud c. The insurer ceasing to offer a particular type of coverage in a market d. The insured having a family history of breast cancer
The correct answer is: The insured having a family history of breast cancer
Who pays for the examination by the CFO? Select one: a. The cost is split unevenly between the insurer and the CFO's office dependent on the results of the examination b. The cost is split evenly between the insurer and the CFO's office c. The insurer d. The CFO's office
The correct answer is: The insurer
Who pays examination expenses? Select one: a. General public, funded by payroll taxes b. The insurer being examined c. The Office of Insurance Regulation d. Agents of the insurer being examined
The correct answer is: The insurer being examined
What are the rules for insurers regarding the Health Maintenance Organization Consumer Assistance Plan of Florida? Select one: a. The plan can be mentioned in any solicitation, but it is not required. b. The plan must be mentioned prominently in any solicitation. c. The plan must never be used in any solicitation. d. The plan must be mentioned in the footnote section of any solicitation.
The correct answer is: The plan must never be used in any solicitation.
What makes a policy a "nonparticipating" policy? Select one: a. A third party bought the policy for the policy holder. b. Members of a group policy do not pay premiums. c. Members of a group policy have no voice in the terms of the policy. d. The policy does not pay dividends.
The correct answer is: The policy does not pay dividends.
What makes a policy a "nonparticipating" policy? Select one: a. Members of a group policy have no voice in the terms of the policy. b. A third party bought the policy for the policy holder. c. Members of a group policy do not pay premiums. d. The policy does not pay dividends.
The correct answer is: The policy does not pay dividends.
What is excess business as it relates to insurance? Select one: a. Insurance which duplicates a previous policy b. The portion of a risk above the limits of that which the agent's insurer will accept c. A risk that is rejected for underwriting reasons d. A policy which another agent would have to write
The correct answer is: The portion of a risk above the limits of that which the agent's insurer will accept
Which of the following best defines the term "copayment"? Select one: a. The fixed amount paid by an HMO to a health care provider upon receipt of care b. The specific dollar amount paid by HMOs to subscribers upon receipt of care c. The specific dollar amount paid by subscribers to health care providers upon receipt of care d. None of the above
The correct answer is: The specific dollar amount paid by subscribers to health care providers upon receipt of care
Whose approval is required in order for agents to do advertisements? Select one: a. Their insurer b. Any company for which they are selling advertising or furnishing financing c. The Commissioner of the Office of Insurance Regulation d. All of the above
The correct answer is: Their insurer
Why was the Florida Health Insurance Plan established? Select one: a. To make insurance available to those deemed uninsurable b. To lower the costs of insurance in Florida c. To make insurance available to those below the poverty line d. To standardize the rules for all insurance companies in Florida to follow
The correct answer is: To make insurance available to those deemed uninsurable
Why was the Florida Health Insurance Plan established? Select one: a. To make insurance available to those deemed uninsurable b. To make insurance available to those below the poverty line c. To standardize the rules for all insurance companies in Florida to follow d. To lower the costs of insurance in Florida
The correct answer is: To make insurance available to those deemed uninsurable
Getting someone to change policies with a different company without revealing all the repercussions is: Select one: a. Sliding b. Twisting c. Torqueing d. Churning
The correct answer is: Twisting
Which of the following is described as making fraudulent comparisons of insurance policies for the purpose of inducing a person to purchase a policy? Select one: a. Rebating b. Misrepresentation c. Churning d. Twisting
The correct answer is: Twisting
How is insolvency defined for an HMO? Select one: a. When an HMO is refused a license by the state of Florida b. When an HMO's assets are not sufficient to cover its claims c. When an HMO has no patients d. When an HMO cannot get physicians to sign contracts with them
The correct answer is: When an HMO's assets are not sufficient to cover its claims
When is life insurance replacement considered twisting? Select one: a. All of the above b. When the new policy is with a different company c. When an agent makes inaccurate representations d. When the insured loses money in the transaction
The correct answer is: When an agent makes inaccurate representations
What is the latest that the outline of coverage can be delivered? Select one: a. At least 24 hours before the initial meeting b. At the time of application c. When the policy is delivered d. When the policy is completed
The correct answer is: When the policy is delivered
How soon must agents notify the department of a change in address? Select one: a. Within 30 days of the change b. Within 45 days of the change c. Within 60 days of the change d. Within 90 days of the change
The correct answer is: Within 30 days of the change
Which of the following is not a duty or power of the Office of Insurance Regulation? Select one: a. Conduct investigations of insurance matters b. Examine insurers c. Enforce the Insurance Code d. Write and amend insurance statutes
The correct answer is: Write and amend insurance statutes
