CH 8 Florida Laws & Rules Pertinent to Insurance
In Florida, monthly-premium health insurance policies must provide a grace period of at least
10 days
A life policy loan in Florida cannot charge a fixed rate of interest higher than
10%
What percentage of eligible persons must a policy cover in a noncontributory group?
100%
The minimum age at which a person can sign a life insurance application is
15 years
Florida requires that coverage for newborns begins "from the moment of birth" and continues for
18 months
An insurance company can contest a life insurance contract due to application fraud within
2 years
In Florida, most life insurance policies have a contestability period of
2 years
Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA).
20
How many hours of continuing education must a newly licensed agent complete every two years?
24
How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated
45 days
A licensed agent must be appointed by an insurance company to solicit insurance in Florida. The agent's license will terminate if a certain period of time elapses without being appointed. How long is this period of time?
48 months
requires that an insurance agent must complete ___ hours of continuing education every two years Florida
5
In Florida, what is the maximum percentage of controlled business an agent may produce?
50%
What is the maximum percentage of controlled business an agent may produce?
50%
According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policy owners
64 and older
Which of the following individuals must be licensed as an agent?
A person who places insurance on behalf of anyone seeking insurance
What do families pay that are covered by the Florida Healthy Kids Corporation?
A portion of the premium
What do dread disease policies cover?
A specific disease or illness
State insurance laws specifically allow the commissioner to issue a temporary license to which of the following individuals
A surviving spouse of a deceased agent
What is Florida's definition of Life insurance replacement?
A transaction in which a new policy is bought and an old policy is terminated
A group life policy does not include?
Accidental death policy
Which of the following employer task does a professional employer organization normally handle
Administration tasks
Which of the following employer tasks does a Professional Employer Organization normally handle?
Administration tasks
Insurance companies that are organized in countries outside the US are referred to as
Alien
J owns a business and has a Group Life policy covering her employees. J decides to cancel the policy by letting it lapse on the renewal date. What action must be taken?
All of the employees must be notified of the cancellation either by the insurance company or through J
All of the following entries are classified under the four principle areas of Florida Insurance law except?
An agents commission
The life and health insurance guaranty association is funded by:
Assessments of member companies
One of the stated purposes of the life and health insurance guaranty association is:
Assist in the prevention of insurer insolvencies
According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant?
At the time of application
All of the following are Nonforfeiture Options EXCEPT
Automatic Premium Loan Option
All of the following are nonforfeiture options except cash surrender option extended term option reduced paid up option automatic premium loan option
Automatic premium loan option
The Bureau of Unclaimed property is overseen by:
Chief Financial Officer
All of the following are eligibility requirements for an association group EXCEPT
Contributory plans require a minimum of 25 participants
Floridas 14 day free look period for life insurance policies begins at the:
Date of delivery
In Florida, an insurer domiciled and incorporates in the state is called:
Domestic Company
The purpose of the guaranty fund is to:
Ensure that claims against filed against insolvent insurance companies are paid
S takes out a health insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this?
Entire Contract
All of the following provisions must be included in life insurance policy except:
Extended term
In Florida, when agents recommend changes be made for existing coverage, the agent must follow established procedures. The name of this rule is called the
Florida Replacement Rule
In Florida, when agents recommend changes be made for existing coverage, the agent must follow established procedures. The name of this rule is called the:
Florida Replacement Rule
The Financial Services Commission may hold hearings:
For any reason deemed necassary
Which of the following is a standard provision of the conversion privileges in a group life policy?
Group life coverage can be converted to an individual policy at regular rates on an attained-age basis
Which policy is exempt from replacement regulations?
Group life policy
What would be an accurate definition of controlled business
Insurance business that is written on the agents own life, property or interest
Which of the following situations are NOT subject to Florida life insurance laws?
Insurance companies' day-to-day operations
An insurance broker is a representative of the
Insured
In Florida, an element of an insurance transaction would be:
Issuing an insurance contract
According to Florida law, which of the following statements accurately sescribes an admitted mail order insurance company>
It may solicit insurance business by mail without the assistance of a licenced agent.
The rules and regulations of the life and health insurance guaranty association apply to:
Life and health policies issued by companies authorized in a particular state
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?
Limitation on pre-existing conditions for up to 12 months
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?
Misrepresentation
Which Unfair Trade Practice involves making a false statement on an insurance application in order to receive money from an insurer?
Misrepresentation
What are adjustable rates for life policy loans in florida based on?
Moodys corporate bond index
Which of the following professional prganizations has its code of ethics incorporated into Florida Law?
National Association of Insurance and Financial Advisors
In Florida, agents are allowed to engage in rebating if:
Offered to all insureds in the same actuarial class
Which entity approves the insurance policy forms used in Florida?
Office of insurance regulations
Which action could result in a hearing being ordered by the Department of Financial Services?
Performing insurance transactions without a license
Who is a mutual insurance company owned by?
Policyholders
Which of the following is NOT required in the Outline of Coverage for a health insurance policy?
Projection of the policy's future costs
Which of these is NOT a legal entity for selling life insurance in Florida?
Risk management advisers
Which of the following is not considered rebating
Sharing commission with an agent licensed in the same line of business
A stock insurance company is owned by
Stockhholders
Which of the flowing statements regarding a nonresident insurance agent is correct
The agent must hold a similar license in their state of residence
Which of the following factors is not considered when the department of financial services determines if an agents home is an insurance agency?
The amount of premium collected at this location
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?
The proceeds would be reduced based on whatever the premium would have been if purchased at age 59
In Florida, deceptive advertising is considered to be
a form of misrepresentation
All of the following will result in the suspension of an agent's license EXCEPT
acting with fiduciary responsibility
An example of an unfair trade practice is
an agent making a material misrepresentation to the insured
In Florida, the underwriting and issuance of a master group health policy requires that all employees
are eligible to participate, regardless of their individual health history
The coordination of benefits (COB) provision exists in order to
avoid duplication of benefit payments
THe coordination of benefits provision exists in order to
avoids duplication of benefits payment
A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as a(n)
broker dealer
An individual covered under a Group Life insurance policy is considered to be a(n)
certificate holder
An example of sliding would be
charging for an additional product without the applicant's consent
Florida's 14-day free-look period for life insurance policies begins at the
date of delivery
In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is a called a
foreign company
The Life and Health Insurance Guaranty Association is
funded by admitted insurance companies through assessments
A foreign insurance company doing business in Florida
is a company that was formed under the laws of another country
A stock insurance company
is owned exclusively by its shareholders
In Florida, an element of an insurance transaction would be
issuing an insurance contract
According to Florida Law, a group life insurance policy requires a minimum of how many insureds?
no minimum
How can an agent-in-charge have more than one location?
only if the agent in charge is present when insurance activity occurs
Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent
only if the child is incapable of employment and chiefly dependent on the policyowner
During the application process, the agent's primary responsibility is to
the insurance company
According to Florida's life insurance replacement laws, a policyowner must be provided with a written Comparison and Summary Statement when it's requested by
the policyowner
When replacing or exchanging an annuity, the agent must disclose to the annuitant
the possible tax ramifications as a result of the transaction
Association plans that are designed to provide health benefits to their members are regulated by the state because
they are insured by an authorized insurer
Group Life policies in Florida are required to contain a conversion privilege that allows for conversion
to an individual policy for a stated period of time
A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value.
viatical settlement provider
An agent's license can be suspended or revoked by
writing primarily controlled business
An agents license can be suspended or revoked for
writing to primarily controlled business
In what year was The Florida Office of Financial Regulation (OFR) created?
2003
Agents that have been licensed for less that six years must complete ____ hours of continuing education every two years?
24
Within how many days must a license notify the Department of Financial Services of a change in address?
30
Within how many days must a licensee notify the Department of Financial Services of a change in address?
30
A group plan was recently terminated. IN Florida, how many days are covered individuals guaranteed coverage after a group plan's termination?
31 days
Which of the following areas of state regulation is not protected by the savings clause in Erisa
Commerce
A stock life insurance company that issues both participation and non participating policy is doing:
Mixed plan
Under an Individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured?
Monthly
Group life policies must include
Ownership, Beneficiary and conversion privilege
What is required in the Florida Employee Health Care Access Act?
Small group benefit plans are to be issued on a "guarantee-issue" basis
An agent selling Medicare Supplement policies must provide every applicant with a(n)
Suitability form
The Florida Employee Health Care Access Act was established to make
group health insurance available to employers with up to 50 employees
Defamation occurs when an agent makes a false statement intended to
malign another insurer