Chapter 10
An insured submits a proof of loss form within 10 days of a loss. The insurer, however, does not acknowledge the form for 3 months. Which of the following violations has the insurer committed?
Unfair claims settlement
An agent's client needs additional insurance which the agent's own insurer cannot provide. The agent has to solicit additional coverage from another authorized insurer. This coverage is known as
excess
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
false advertising
Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?
fraternal benefit society
All agents licensed in this state must complete how many hours of continuing education specific to law and ethics?
4
Which of the following would NOT be a violation of state insurance regulations?
Agent C uses her license to write only business other than controlled.
What is reinsurance?
An agreement between a ceding insurer and assuming insurer
What is a foreign insurer?
An insurer with a home office in another state
Who examines the books and records of insurance companies in Florida?
Chief Financial Officer
In which of the following situations is it legal to limit coverage based on marital status?
It is never legal to limit coverage based on marital status
Which of the following best describes the unfair trade practice of defamation?
Making derogatory oral statements about another insurer's financial condition
All of the following would be considered an insurance transaction EXCEPT
Obtaining an insurance license
Which of the following entities is responsible for agent licensing and administrative supervision?
Office of Insurance Regulation
What are the 2 offices of the Financial Services Commission?
The Office of Financial Regulation and the Office of Insurance Regulation
Which of the following is an example of a producer's fiduciary duty
The trust that a client places in the producer in regard to handling premiums.
Under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months
To legally transact insurance in this state, an insurer must obtain which of the following
Certificate Authority
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer.
Which of the following is true regarding producer appointments?
A producer may hold several appointments at one time.
Which of the following may NOT be included in an insurance company's advertisement?
That its policies are covered by a state Guaranty Association
Which of the following is true regarding branch agency licensing?
agent in charge must be licensed
An agent transacts business for Insurer A and Insurer B, both selling life insurance, and for Insurer C, selling health insurance. How many appointments must the agent hold
Three - one for each insurer
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice
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?
Illegal
If an agent does not notify the insurer of an address change, what is the maximum penalty that can be imposed for a one-time offense?
$250. If the department is not notified within the required time period, a maximum fine of $250 will be imposed for the first offense; for subsequent offenses, either a minimum fine of $500 will be imposed or the agent's license will be suspended or revoked.
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
absolute
No insurance policy form can be issued, delivered, or used in this state unless it has been
Filed with and approved by the Office of Insurance Regulation.
All of following are the general qualifications for an agent's license EXCEPT
Have a high school diploma
An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?
The policy will not be affected. In insurance, fraud is the intentional misrepresentation of material information that is crucial when deciding whether or not to write a contract for an applicant. If an insurer finds that an applicant has committed fraud, it can void the contract, provided that the discovery occurs within the first two years of the effective policy date. In this particular instance the applicant did not commit intentional fraud.
When an insurer terminates an agent's appointment, the insurer must do all of the following EXCEPT
Provide a 30-day advance notice to the commissioner
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Misrepresentation
Which of the following is NOT a responsibility of the Office of Insurance Regulation?
Enacting new insurance laws
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
An insurance agent X has been found guilty of a felony and was sentenced to 3 years in prison. What would be the appropriate plan of action
Send a written notification to the department of insurance
