Quiz 9

The Department of Financial Services requires financial accounting records to be kept by an agent/agency for ____ year(s). A)1 year B)2 years C)3 years D)4 years

3 years

Florida Insurance Guaranty Association a.k.a. FIGA was created by the Florida congress in 1970; All of the following concerning FIGA are correct EXCEPT? A)is a for-profit corporation B)handles claims of insolvent property and casualty insurance companies C)FIGA members are made up of all Florida licensed insurance companies D)surplus lines companies are not eligible for FIGA coverage

A)is a for-profit corporation

In conclusion, an insurance agent can demonstrate ethical behavior by... (select all that apply): A)knowing and following the underwriting and procedural rules of each company represented B)knowing and following the insurance laws enacted to protect the insurance consuming public C)maintaining current knowledge of the insurance industry D)practicing the golden rule by demonstrating: honesty, loyalty, fidelity, and altruism

A)knowing and following the underwriting and procedural rules of each company represented B)knowing and following the insurance laws enacted to protect the insurance consuming public C)maintaining current knowledge of the insurance industry D)practicing the golden rule by demonstrating: honesty, loyalty, fidelity, and altruism

Insurance underwriting may not discriminate based upon which, if any, of the following? (choose all that apply) A)race B)creed C)color D)sex

A)race B)creed C)color D)sex

True or False? Ethics is the study of normal behavior and is the cornerstone of professionalism in the insurance industry.

False

True or False? Florida statutes explicitly prohibits payment to any unlicensed person any fee or compensation for a referral and no referral fee or commissioncan be paid to a licensed entity if the offer of referral is conditioned upon a sale.

True

An insurance license can be revoked for all but which of the following? A)misrepresentation in the procurement of any license B)willful misrepresentation of any insurance policy or contract C)licensee fraud or dishonest practice in the business of insurance D)all of the above are reasons the department can suspend, revoke, refuse or cancel a license

all of the above are reasons the department can suspend, revoke, refuse or cancel a license

All BUT which of the following are insurance agent licensing requirements? A)applicant must be a natural person at least twenty-one years of age B)applicant must be a United States citizen or legal alien lawfully permitted to work in the U.S .C)applicant's intended place of business must be in Florida D)applicant must pass a background check undertaken by department

applicant must be a natural person at least twenty-one years of age

Commonly referred to as "rebating", agents ______ permitted to pay, allow, give, or offer to pay to an insured directly or indirectly any inducement to purchase any policy of insurance. A)are B)are not

are not

An Insurance Agent's License enables the license holder to engage in the business of insurance in good faith and with fair dealing with the insuring public. Specifically prohibited are: A)unlawful rebating B)controlled business C)both are correct D)neither is correct

both are correct

As regards "twisting" and "churning" which, if any, of the following statements are correct? A)churning normally involves a policy replacement that is from the same insurance company; the motive is increased sales commission to the selling agent B)twisting normally involves a policy replacement from a different insurance company with increased commission as the motive to the selling agent C)both statements are correct D)neither statement is correct

both statements are correct

F.S. 626.112(8) addresses referral fees that are conditioned upon an actual sale; specifically, no referral fee or commission can be paid to a licensed entity if the offer of referral is... A)conditioned upon a sale B)a policy which has not been paid by the insured C)for a Federal Flood Insurance policy D)conditioned upon future licensing

conditioned upon a sale

__________ is knowingly making, publishing, disseminating, or circulating, directly or indirectly, or aiding, abetting, or encouraging the making, publishing, disseminating, orcirculating of, any oral or written statement, or any pamphlet, circular, article, or literature,which is false or maliciously critical of, or derogatory to, any person and which is calculatedto injure such person. A)coercion B)sliding C)defamation D)discrimination

defamation

Fiduciaries are individuals or organizations that are required to operate under the duties of good faith and ____________. A)timely remuneration B)fair dealing C)settled communication D)full acceptance

fair dealing

Agents ______ share commissions with other agents and customer representatives appointed and licensed to write the same kind of insurance. A)may B)may not

may

Customer representatives ____ share in commissions with a licensed insurance agent. A)may B)may not

may

Licensees ______ share commission with a corporation if it is a licensed insurance agency. A)may B)may not

may

A licensee ______ collect any premium in excess or below what the required rate known by the licensee at the time of the premium collection. A)may B)may not

may not

The Department of Financial Services requires a license holder to place the department on notice of changes for all BUT which of the following? A)business address change B)name change C)network service provider change D)residence address change

network service provider change

A __________ is a representation of a material facts or condition of which the issuance of the policy of insurance is conditioned. A)speculation B)fraud C)warranty D)concealment

warranty