6 - E FL Insurance Rules and Regulations

An emergency insurance adjuster license in the State of Florida is good for ____ days. A. 90 B. 180 C. 60 D. 45

B. 180

If an insurer receives an inquiry from the Office of Insurance Regulation regarding a claim, it must respond appropriately within _______ days. A. 30 B. 21 C. 14 D. 90

B. 21

Which of these statements about foreign insurers in Florida is TRUE? A. A foreign insurer must offer lower rates, but with higher deductibles, than domestic insurers. B. A foreign insurer can usually only issue insurance to someone who was denied coverage by domestic insurers. C. A foreign insurer can usually only issue insurance in amounts above regular policy limits. D. A foreign insurer does not need a certificate of authority from the state of Florida as long as it has one from its home state.

B. A foreign insurer can usually only issue insurance to someone who was denied coverage by domestic insurers.

The HIPAA was enacted by the US Congress in _________. A. 1996 B. 1986 C. 2003 D. 1967

A. 1996

James was a licensed adjuster in Louisiana and Florida. His license is revoked in Louisiana. Which of the following is NOT a possible result of this revocation? A. He is fined $5,000 by the FL Department of Financial Services. B. His adjuster license is revoked in Florida. C. His adjuster license is suspended in Florida. D. He is placed on probation by the FL Department of Financial Services.

A. He is fined $5,000 by the FL Department of Financial Services.

Loggers, roofers, and coal miners would fall into which of the following categories? A. High-risk employees B. High-maintenance employees C. Low-risk employees D. Low-maintenance employees

A. High-risk employees

Under which law is an insurer required to explain its reasons for denying coverage? A. IIPPA B. AAA C. FCRA D. HIPAA

A. IIPPA

Which of the following is NOT one of the roles of the Florida Department of Financial Services? A. Licensing and regulating insurance companies B. Licensing adjusters and agents C. Investigating insurance fraud D. Acting as receiver for insolvent insurers

A. Licensing and regulating insurance companies

The Commissioner of Insurance Regulation oversees the Office of Insurance Regulation. Which of the following is NOT one of the functions of the OIR? A. Overseeing licensing of all adjusters in the state of Florida. B. Enforcing statutes related to the insurance industry. C. Monitoring the financial stability of insurers. D. Overseeing licensing of all insurers in the state of Florida.

A. Overseeing licensing of all adjusters in the state of Florida.

Ryan must complete continuing education courses before the deadline for his Florida license. He knows it's important, but he has been putting off his coursework, and now the credits are overdue. Ryan is 8 hours short; what can he expect? A. Ryan will have to send a written request for an extension to the Department of Financial Services. B. Ryan must pay a penalty of $400, after which he will have another 3 months to finish the missing hours. C. Ryan will have a 30-day grace period to complete the missing hours. D. Ryan's license will be revoked and he will have to find a new career.

A. Ryan will have to send a written request for an extension to the Department of Financial Services.

Florida Insurance Code states the qualifications required to become a licensed insurance adjuster in the state of Florida. Which of the following is NOT one of the requirements for applicants? A. Spend 20 hours in the field working with a licensed insurance adjuster B. Be at least 18 years of age C. Be trustworthy D. Be a US citizen or legal alien authorized to work in the United States

A. Spend 20 hours in the field working with a licensed insurance adjuster

Which of the following is NOT an acceptable reason for the Commissioner of Insurance to revoke an adjuster's license? A. Taking on too many claims at one time B. Having been convicted of a felony C. Intentionally misrepresenting the terms of a contract D. Forging another's name on an insurance document

A. Taking on too many claims at one time

Which of the following is NOT a rating factor for a personal auto liability policy? A. The condition of the vehicle B. The location of use C. The driving record D. The driver's age

A. The condition of the vehicle

Risk retention groups do NOT: A. have the support of state Guaranty Funds. B. provide liability insurance. C. spread liability exposure to their members. D. have permission to operate in Florida.

A. have the support of state Guaranty Funds.

Guaranty Associations are funded by: A. insurers. B. the state. C. the federal government. D. the insurance commissioner.

A. insurers.

*The main purpose of an Insurance Guaranty Association is: A. to make sure that insurers are able to pay claims, even in the event of an insolvency. B. to punish insolvent insurers. C. to oversee the Commissioner of Insurance Regulation. D. to make sure that policyholders are able to pay their premiums.

A. to make sure that insurers are able to pay claims, even in the event of an insolvency.

Eric works in Florida for Gemutlich Insurance. His company is licensed to sell insurance in Florida, but is based out of Munich, Germany. Gemutlich Insurance was formed under German law, but follows all applicable Florida laws and possesses a Florida Certificate of Authority to sell their product. Which type of insurer does Eric work for? A. Surplus Insurer B. Alien Insurer C. Foreign Insurer D. Domestic Insurer

B. Alien Insurer

Angie just got her adjuster license in Florida on May 11, 2016. Her birthday is March 10, 1983. When will her license expire? A. March 31, 2018 B. Angie's license will only expire if she goes 4 years without an appointment. C. May 11, 2018 D. March 10, 2018

B. Angie's license will only expire if she goes 4 years without an appointment.

Greg was in the process of completing the CE for his Florida adjuster license when unforeseen circumstances made it necessary for him to drop everything and take care of his aging mother for a year. Now, Greg's license is about to expire and he does not have the CE credits he needs. What should he do? A. Surrender his license to the Department of Financial Services for one year. B. Apply to the Department of Financial Services for an extension. C. Pay a fine of $500 before renewing his license. D. Submit a written request to the Department of Financial Services for a waiver of the CE requirements.

B. Apply to the Department of Financial Services for an extension.

Bill lives in a state which doesn't require adjuster licensing, but he wants to get a job in Florida as an adjuster. He is confused about which state he should list as his home state, since his home state does not actually license claims adjusters. Bill should list _______ as his home state. A. Not Applicable B. Florida C. Independent D. Maine

B. Florida

Bill works for an alien insurer operating in Florida. His company began business overseas and follows all applicable Florida laws. In order to operate his business in Florida, in addition to following all the state's insurance laws, Bill's company must also possess: A. a certificate of authenticity. B. a certificate of authority. C. a green card. D. a governing board with at least three Florida residents.

B. a certificate of authority.

Willa lives in a state that does not license adjusters, and she wants to get a Florida adjuster license. She must submit all of the following, EXCEPT: A. a license application. B. a medical history. Your Answer C. a completed state exam. D. an application fee.

B. a medical history.

Third Party Administrators: A. are not subject to the FL Department of Financial Services. B. do not assume any risk for the policies they handle. C. do not underwrite policies. D. are not licensed in Florida.

B. do not assume any risk for the policies they handle.

Which of the following would NOT result in disciplinary action from the Department of Financial Services? A. Failing to pay child support B. Providing false information on a license application C. Accepting advance premiums D. Committing unfair trade practices

C. Accepting advance premiums

Which of the following is NOT one of the responsibilities of Florida's Chief Financial Officer? A. Provide information and advice about the insurance industry to consumers B. Oversee the Florida Department of Financial Services C. Act as liaison between Florida and the federal government D. Oversee the licensing of Florida's insurance adjusters and agents

C. Act as liaison between Florida and the federal government

During catastrophes, which of the following is TRUE? A. Emergency adjusters from other states must leave the state of Florida immediately after 90 days. B. An adjuster licensed in another state can get a temporary license to adjust claims in Florida, valid for 240 days. C. Adjusters licensed in other states can act as emergency adjusters in Florida. D. Anyone with construction experience can act as an emergency adjuster in Florida.

C. Adjusters licensed in other states can act as emergency adjusters in Florida.

In 1945 Congress passed the McCarran-Ferguson Act. What does that act do? A. Gives the Federal government the authority to regulate the insurance industry B. Makes insurance regulation a county responsibility C. Gives the states the authority to regulate the business of insurance D. Provides for insurance coverage for the poor

C. Gives the states the authority to regulate the business of insurance

Which of the following is NOT true about the National Association of Insurance Commissioners? A. It is a non-profit coalition of state insurance agencies B. It works to harmonize state insurance laws and regulations C. It provides benefits for insurance commissioners D. It drafts model legislation that is frequently adopted by most states

C. It provides benefits for insurance commissioners

The Insurance Guaranty Association is a mechanism that covers claims in the event of: A. an insured's bankruptcy. B. government intervention. C. an insurer's insolvency. D. catastrophic disaster.

C. an insurer's insolvency.

The Department of Financial Services can discipline an adjuster who doesn't follow Florida insurance law by doing all of the following, EXCEPT: A. imposing fines and warnings. B. suspending the adjuster's license. C. imposing prison sentences. D. revoking the adjuster's license.

C. imposing prison sentences.

An insurance adjuster in Florida must complete CE every ____ years. . A. three B. four C. two D. ten

C. two

What is the most an adjuster could be fined for knowingly and illegally offering rebates? A. $500 B. $2,500 C. $5,000 D. $3,500

D. $3,500

Luke has been a resident Florida insurance adjuster for the past seven years. In order to keep his appointment, he must complete ________ hours of continuing education every _____ years. A. 24; 1 B. 24; 2 C. 10; 1 D. 20; 2

D. 20; 2

When a company collects a consumer's personal and financial information, the methods for that collection, as well as the ways in which the information is used and shared, are all regulated by the: A. Equal Credit Opportunity Act (ECOA). B. Health Insurance Portability and Accountability Act (HIPAA). C. Insurance Information and Privacy Protection Act (IIPPA). D. Fair Credit Reporting Act (FCRA).

D. Fair Credit Reporting Act (FCRA).

Jill wants to start an insurance agency selling property insurance. As such, she must belong to a Guaranty Association, of which there are a few different types. Which of these groups would best fit Jill's needs? A. Florida Property Insurance Guaranty Association B. Florida Workers' Compensation Insurance Guaranty Association C. Florida Life & Health Insurance Guaranty Association D. Florida Insurance Guaranty Association

D. Florida Insurance Guaranty Association

Bill is going to switch employers, and therefore switch healthcare providers. Which federal law ensures that he won't be denied coverage when he switches health plans? A. FICA B. IIPPA C. FCRA D. HIPAA

D. HIPAA

The set of patient privacy rules that all health care providers, insurance companies, physicians offices, hospitals, and pharmacies must follow is called the _____________. A. IIPPA - Insurance Information and Privacy Protection Act B. FIGA - Florida Insurance Guaranty Act C. FCRA - Fair Credit Reporting Act D. HIPAA - Health Insurance Portability and Accountability Act

D. HIPAA - Health Insurance Portability and Accountability Act

Which of the following is NOT a purpose of insurance regulation? A. To promote reasonable insurance rates B. To promote insurance availability C. To prohibit price-fixing D. To prohibit insurance-rating

D. To prohibit insurance-rating

Rachel is starting an insurance company in Naples, Florida. She has a great business model and has begun recruiting some fantastic sales people. In addition to submitting to occasional financial audits in the future, Rachel's company must also: A. operate in at least one other state. B. have a physical office with a minimum of 2,500 square feet. C. become a Lloyd's plan insurer. D. become a member of a Guaranty Association.

D. become a member of a Guaranty Association.