FL Laws and Rules Pertinent to Insurance

10%

A life policy loan in Florida cannot charge a fixed rate of interest higher than 7% 8% 9% 10%

Twenty

A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss? Five Ten Twenty Thirty

An agent's commission

All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT An agent's commission Policyowner's rights Policy provisions An agent's licensing requirements

Graduate from high school

All of these are a prerequisite for becoming a licensed agent EXCEPT Complete a prelicensing course Resident of Florida Be at least 18 years old Graduate from high school

twisting

An agent who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed coercion rebating defamation twisting

writing primarily controlled business

An agent's license can be suspended or revoked by writing primarily controlled business not meeting annual sales quota replacing an existing insurance policy with a new one issuing a binding receipt

certificate holder

An individual covered under a Group Life insurance policy is considered to be a(n) annuitant policyowner certificate holder contingent

2 years

An insurance company can contest a life insurance contract due to application fraud within 60 days 1 year 2 years 3 years

domestic

An insurance company incorporated under the laws of the state in which its home office is located is called a(n) ____ company. domestic alien foreign authorized

to an individual policy for a stated period of time

Group Life policies in Florida are required to contain a conversion privilege that allows for conversion with evidence of insurability to an individual policy for a stated period of time only if the premiums are paid by the employer to an individual policy at anytime

Protects policyowners against insolvent insurance companies

What is the purpose of the Life and Health Insurance Guaranty Association? Enforces Florida's insurance regulations Underwrites high-risk insurance applicants Protects policyowners against insolvent insurance companies Establishes underwriting guidelines for admitted insurers

0%

What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida Law? 0% 25% 75% 100%

Insurance business that is written on the agent's own life, property, or interests

What would be an accurate definition of "controlled business"? Insurance business that is written on the agent's own life, property, or interests Insurance business obtained by an agent through coercion, intimidation, or boycotting Insurance business that is obtained through false advertising Insurance business that is obtained by replacing an existing policy through misrepresentation

Misrepresentation

Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock? Twisting Intimidation Misrepresentation Sliding

Misrepresentation

Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed? Coercion Fraud Misrepresentation Sliding

Commerce

Which of the following areas of state regulation is NOT protected by the savings clause in ERISA? Insurance Commerce Banking Securities

Notice to existing and replacing insurers of intention to replace

Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy? Notice to existing and replacing insurers of intention to replace A list of all policies the agent has replaced in the last 3 years A statement made by the agent that NAIC guidelines have been met during the replacement process A copy of the agent's insurance license

Full-time employees after the probationary period

Which of the following employees may NOT be excluded from a group life plan? Part-time employees Seasonal workers Full-time employees before the probationary period Full-time employees after the probationary period

Coercion

Which of the following is an example of an Unfair Trade Practice? Shared commissions Fiduciary Replacement Coercion

National Association of Insurance and Financial Advisors (NAIFA)

Which of the following professional organizations has its code of ethics incorporated into Florida law? Financial Industry Regulatory Agency (FINRA) National Association of Insurance Commissioners (NAIC) National Association of Insurance and Financial Advisors (NAIFA) The American College of Life Insurance

Seven-day grace period

Which of the following provisions is NOT required in HMO contracts/certificates? Enrollment Rates shall not be excessive No pre-existing exclusions for children Seven-day grace period

Insurance companies' day-to-day operations

Which of the following situations are NOT subject to Florida life insurance laws? Insurance companies' day-to-day operations Insurance companies' life policy replacement requirements Insurance companies' setting of life insurance policy rates Insurance companies' guidelines for paying a life insurance claim

An existing policyholder purchases an additional policy from the same insurer

Which of the following situations does NOT apply to the Florida Replacement Rule? An existing policy is reissued with a reduction in cash value A new policy is issued while an existing one is surrendered An existing policy is subject to extensive borrowing An existing policyholder purchases an additional policy from the same insurer

People that smoke

Which of the following types of insureds are life insurance companies allowed to make policy rate discriminations against? People of different religions People that are married People that smoke People of different races

Defamation

Which of the following unfair trade practices involves an agent who makes malicious statements about another person's financial condition? Boycotting Defamation Unfair discrimination Misrepresentation

Mutual

Which type of insurance company allows their policyowners to elect a governing body? Stock Mixed Admitted Mutual

Insurance

A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? Unemployment Banking Retirement Insurance

is a company that was formed under the laws of another state

A foreign insurance company doing business in Florida is not subject to Florida insurance laws is a company that was formed under the laws of another state is a company that was formed under the laws of another country is only authorized to write business outside the United States

31 days

A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's termination? 14 days 31 days 45 days 60 days

is found guilty of misrepresentation

A license may be denied, suspended, or revoked if the licensee engages in replacement of an existing policy is found guilty of misrepresentation does not meet a sales quota files for bankruptcy

48 months

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? 12 months 24 months 36 months 48 months

viatical settlement provider

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 broker insurer viator agent

secondary addressee

A long-term care lapse notice must be delivered to both the applicant and secondary addressee beneficiary personal physician MIB

Stock company is owned by its shareholders. Mutual company is owned by its policyholders.

A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast? Stock company is regulated by the state where it's incorporated. Mutual company is regulated by its policyholders. Stock company is considered an authorized insurer. Mutual company is considered an unauthorized insurer. Stock company is owned by its policyholders. Mutual company is owned by its shareholders. Stock company is owned by its shareholders. Mutual company is owned by its policyholders.

is owned exclusively by its shareholders

A stock insurance company is owned exclusively by its policyowners guarantees dividends to its shareholders elects a governing body by its policyowners is owned exclusively by its shareholders

a mixed plan

A stock life insurance company that issues both participating and nonparticipating policies is doing business on a mixed plan a diverse plan a multiple plan an assorted plan

broker dealer

A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as a(n) accredited agent broker dealer Certified Variable Dealer (CVD) Registered Managing Agent (RMA)

The premiums for the handicapped child are not paid

According to Florida Law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy? The handicapped child has reached the limiting age The premiums for the handicapped child are not paid The handicapped child becomes a full-time student The family moves outside the provider network

No minimum

According to Florida law, a Group Life insurance policy requires a minimum of how many insureds? 2 25 100 No minimum

64 years or older

According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age 21 and under 59 1/2 or older 64 years or older 69 or older

require evidence of insurability

According to Florida law, group life insurance conversion privileges must NOT allow the converted policy to exceed 75% of the original group life amount allow a time period to convert group life coverage to an individual life policy require a rate increase require evidence of insurability

At the time of application

According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant? At the time of application At the time of policy delivery Within 14 days of the time of application Within 14 days of policy delivery

Marital status

According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase? Annual income Age Marital status Financial objectives

It may solicit insurance business by mail without the assistance of a licensed agent

According to Florida law, which of the following statements accurately describes an admitted mail order insurance company? It may solicit insurance business by mail without the assistance of a licensed agent It may solicit insurance business by mail only with the assistance of a licensed Florida agent Admitted mail order insurance companies are illegal in Florida Admitted mail order insurance companies cannot solicit insurance business outside the state of Florida

the policyowner

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 the insurer the Chief Financial Officer the Financial Services Commission

a Buyer's Guide and Policy Summary

According to Florida's rules on disclosure, a life insurance applicant is expected to be provided with a Certificate of Coverage and Buyer's Guide a Summary Statement and Buyer's Guide a Buyer's Guide and Policy Summary a Written Comparison and Policy Summary

$25

Advertising gifts not to exceed ___ are allowed to be given by an agent to a prospective client. $25 $50 $75 $100

24

Agents that have been licensed for less than six years must complete __ hours of continuing education every two years. 8 20 24 36

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

Contributory plans require a minimum of 25 participants

All of the following are eligibility requirements for an association group EXCEPT Group must have been in existence for two years Contributory plans require a minimum of 25 participants Group must hold regular meetings at least on an annual basis Must have been organized for some reason other than to obtain group insurance

acting with fiduciary responsibility

All of the following will result in the suspension of an agent's license EXCEPT intentionally misrepresenting the provisions of a policy acting with fiduciary responsibility forging a name on an insurance application being convicted of a felony

Suitability form

An agent selling Medicare Supplement policies must provide every applicant with a(n) MIB form COBRA form Suitability form Signed consent form

conditional receipt

An applicant who pays the initial premium at the time of application is typically given a(n) official receipt conditional receipt binding receipt certified receipt

failing to effectuate prompt, fair, and equitable settlements of a claim

An example of an unfair claims practice would be requesting a third-party arbitrator to resolve a disagreement failing to effectuate prompt, fair, and equitable settlements of a claim paying a claim promptly after receiving proof of loss requiring the insured to give a statement under oath

turning down a claim without providing the basis of denial

An example of an unfair claims settlement practice is making it mandatory that proof of loss be provided for each claim requiring a time limit for submitting a claim paying a claim in a timely matter turning down a claim without providing the basis of denial

an agent making a material misrepresentation to the insured

An example of an unfair trade practice is an agent making a material misrepresentation to the insured an agent writing less than 50% of their total sales from controlled business replacing an old life insurance policy with a new one denying payment of a claim within a reasonable time after proof of loss statements were provided

An insurer exaggerating its dividends in a magazine advertisement

An example of false advertising would be Paid testimonials from celebrity endorsements An insurer exaggerating its dividends in a magazine advertisement An agent spending more than $25 on marketing gifts for a client An insurer advertising in an insurance trade journal

offering a client something of value not stated in the contract in exchange for their business

An example of rebating would be a mutual insurance company paying dividends to its policyowners reducing the premiums across the board for a specific risk class offering a client something of value not stated in the contract in exchange for their business using intimidation in order to restrain or monopolize the business of insurance.

charging for an additional product without the applicant's consent

An example of sliding would be speaking maliciously of an insurer intending to harm charging for an additional product without the applicant's consent replacing an existing insurance policy with a new one inducing an applicant to purchase an insurance policy by returning some of the premium

offering different terms of coverage for different policyowners having the same risk classification

An example of unfair discrimination would be declining an insurance application because of involvement in a hazardous occupation offering the same terms of coverage to different policyowners in the same risk classification offering different terms of coverage for different policyowners having the same risk classification issuing a policy at a substandard rate because of poor health

Coercion

As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? Coercion Defamation Rebating Misrepresentation

they are insured by an authorized insurer

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 they conduct business in Florida they provide a service to their members they require a certain level of member participation

misrepresentation

Convincing a prospective insured to buy an insurance policy based on exaggerations is called rebating intimidation twisting misrepresentation

malign another insurer

Defamation occurs when an agent makes a false statement intended to malign another insurer replace an existing insurance policy with another restrict fair trade misrepresent the provisions of an insurance policy

the insurance company

During the application process, the agent's primary responsibility is to the Department of Financial Services the applicant the insurance company the State of Florida

misrepresentation

During the course of an insurance transaction, if an agent makes a false or incomplete statement, he/she could be found guilty of sliding replacement misrepresentation twisting

20

Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA). 40 30 20 10

5

Florida requires that an insurance agent must complete __ hours of continuing education on the subject of law and ethics every two years. 3 4 5 6

18 months

Florida requires that coverage for newborns begins "from the moment of birth" and continues for 31 days 6 months 12 months 18 months

date of delivery

Florida's 14-day free-look period for life insurance policies begins at the date of delivery date of approval date of application date of physical examination

Only if the agent-in-charge is present when insurance activity occurs

How can an agent-in-charge have more than one location? Only if the locations are in Florida By keeping all locations within a close proximity An agent-in-charge can only have one location Only if the agent-in-charge is present when insurance activity occurs

45

How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated? 31 45 60 120

24

How many hours of continuing education must a newly licensed agent complete every two years? 4 8 16 24

policyowner can make the premium payment during the grace period

If a policyowner does not pay the premium by the due date, the policy must be reinstated policyowner is automatically assessed a late charge insurance company cancels the policy policyowner can make the premium payment during the grace period

Life and Variable contracts

If an agent would like to sell Variable annuities, which state examination must the agent pass? Variable annuities Accident and Health insurance Life insurance Life and Variable contracts

31 days

In Florida, a health policy that is paid on a quarterly basis requires a grace period of 7 days 10 days 31 days 45 days

offered to all insureds in the same actuarial class

In Florida, agents are allowed to engage in rebating if the amount rebated stays below a maximum percentage of annual premium the transaction is reported to the IRS for tax purposes the insured gives his/her written consent offered to all insureds in the same actuarial class

issuing an insurance contract

In Florida, an element of an insurance transaction would be ordering an MIB report setting up the sales appointment issuing an insurance contract determining how much coverage is needed

domestic company

In Florida, an insurer domiciled and incorporated in this state is called a(n) alien company admitted company domestic company foreign company

foreign company

In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n) non-admitted company foreign company domestic company alien company

a form of misrepresentation

In Florida, deceptive advertising is considered to be a form of coercion a form of sliding a form of rebating a form of misrepresentation

10 days

In Florida, monthly-premium health insurance policies must provide a grace period of at least 7 days 10 days 14 days 31 days

2 years

In Florida, most life insurance policies have a contestability period of 1 year 2 years 3 years 4 years

are eligible to participate, regardless of their individual health history

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 need to be individually approved or declined during the underwriting process must contribute toward the group health policy's premiums take a physical examination before the master policy is issued

50%

In Florida, what is the maximum percentage of controlled business an agent may produce? 30% 40% 50% 60%

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 Gramm-Leach-Bliley Act Florida Solicitation Law Existing Coverage Statute Florida Replacement Rule

Coercion

In Florida, which of the following is considered an Unfair Trade Practice? Replacement Coercion Aleatory Subrogation

Naturopaths

In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies? Optometrists Pediatricians Dentists Naturopaths

The state where they are conducting business

In order for a domestic, foreign, or alien insurance company to conduct business, it must be authorized by whom? The National Association of Insurance Commissioners (NAIC) The state where they are conducting business The attorney general in the state where they are domiciled Homeland Security

alien

Insurance companies that are organized in countries outside the United States are referred to as domestic alien international foreign

Twisting

J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? Coercion Sliding Twisting Rebating

Coercion

J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of? Twisting Defamation Coercion Rebating

All of the employees must be notified of the cancellation either by the insurance company or through J

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? J must cover the group with another policy at cancellation All of the employees must be notified of the cancellation either by the insurance company or through J The insurance company must replace the existing policy with one to J's liking No obligation is required from either the insurance company nor J

Pay monetary restitution to the client

K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take? Sell the client a more appropriate annuity Pay monetary restitution to the client Provide a written apology letter Pay a penalty of three times the client's loss

Fraternal life insurance organizations

Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called Fraternal life insurance organizations Domestic life insurance organizations Unauthorized insurers Mutual life insurers

closely regulated and requires full disclosure

One definition of replacement is "the act of replacing an existing insurance policy with another". Replacement is legal and requires no disclosure closely regulated and requires full disclosure not legal in the state of Florida allowed only if the policy originated outside the state of Florida

Entire Contract

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? Legal Actions Insurance with other insurers Entire Contract Reinstatement

fiduciary responsibility

T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as fiduciary responsibility reasonable trust ethical behavior legal competence

to an individual policy upon employment termination

T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert to an individual policy, only by providing evidence of insurability to an individual policy, only if the employer pays the premiums to an individual policy upon employment termination to an individual policy with a higher amount of coverage

Chief Financial Officer

The Bureau of Unclaimed Property is overseen by the Unclaimed Property Commissioner Chief Financial Officer Governor Insurance Department

for any reason deemed necessary

The Financial Services Commission may hold hearings for any reason deemed necessary only when a felony is involved when approved by the NAIC only if there is a complaint filed

group health insurance available to employers with up to 50 employees

The Florida Employee Health Care Access Act was established to make group health insurance available to employers with up to 50 employees health insurance affordable for families with children individual health insurance available to all Floridians health insurance affordable to retired individuals

funded by admitted insurance companies through assessments

The Life and Health Insurance Guaranty Association is an entity that assists in underwriting large insurance policies funded by admitted insurance companies through assessments funded by the state government administered by the Federal government

false advertising

The act of an insurance company publishing misleading information about its policy's provisions is called coercion false advertising twisting intimidation

avoid duplication of benefit payments

The coordination of benefits (COB) provision exists in order to avoid duplication of benefit payments avoid excessive hospitalization lower insurance premiums maximize patient care

Buyer's Guide and Policy Summary

The insurer must provide a prospective buyer with a(n) Buyer's Guide and Policy Summary A.M. Best report actuarial table copy of the application

15 years

The minimum age at which a person can sign a life insurance application is 15 years 16 years 17 years 18 years

6 months

The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond 1 month 3 months 6 months 12 months

once each year

Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract only when requested by the policyowner once each month once each year twice each year

Limitation on pre-existing conditions for up to 12 months

Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy? Suitability form Guaranteed issue Free-look period of 30 days Limitation on pre-existing conditions for up to 12 months

Monthly

Under an Individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured? Annually Weekly Monthly Daily

only if the child is incapable of employment and chiefly dependent on the policyowner

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 for up to an additional 10 years only only if physically disabled only if mentally disabled

The proceeds would be reduced based on whatever the premium would have been if purchased at age 59

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 policy's full death benefit would be paid, due to the expiration of the incontestable period The proceeds would be reduced based on whatever the premium would have been if purchased at age 59 There would be no death proceeds paid out by the insurer The insurer is only obligated to refund all premiums paid

Moody's corporate bond index

What are adjustable rates for life policy loans in Florida based on? Moody's corporate bond index 90-day treasury bill rate National average of other states' variable rate Prime lending rate

A specific disease or illness

What do Dread Disease policies cover? A specific disease or illness All diseases or illnesses Only terminal illnesses Only heart-related diseases

A portion of the premium

What do families pay that are covered by the Florida Healthy Kids Corporation? Full premium A portion of the premium The first initial premium Nothing

A transaction in which a new policy is bought and an old policy is terminated

What is Florida's definition of Life insurance replacement? A transaction in which coverage on an existing policy is increased A transaction in which group life coverage is converted to an individual policy A transaction in which a new policy is bought and an old policy is terminated A transaction in which a policyowner reinstates a lapsed policy

Small group benefit plans are to be issued on a "guarantee-issue" basis

What is required in the Florida Employee Health Care Access Act? Small group benefit plans are to be issued on a "conditionally-issue" basis Small group benefit plans are to be issued on a "guarantee-issue" basis All small group benefit plans have a 60 day grace period All small group benefit plans have no lifetime benefit limits

Maintain the solvency of insurance companies

What is the main reason for regulating the insurance industry? Add revenue to Florida's treasury Maintain the solvency of insurance companies Controlling the replacement of existing insurance policies Setting sales quotas for insurers

100%

What percentage of eligible persons must a policy cover in a noncontributory group? 25% 50% 75% 100%

Alien

What type of insurance company is domiciled in England, but conducts business in Florida? Foreign Domestic Alien Transatlantic

At the moment of birth

When is a Group Health policy required to provide coverage for a newborn child? When the policyowner notifies the insurance company At the moment of birth When the required additional premium is paid No more than 10 days after date of birth

the possible tax ramifications as a result of the transaction

When replacing or exchanging an annuity, the agent must disclose to the annuitant the commissions to be paid as a result of the transaction the possible tax ramifications as a result of the transaction the insurer's A.M. Best rating proof of appointment by the agent

Misrepresentation

Which Unfair Trade Practice involves making a false statement on an insurance application in order to receive money from an insurer? Rebating Coercion Sliding Misrepresentation

Performing insurance transactions without a license

Which action could result in a hearing being ordered by the Department of Financial Services? Representing a foreign insurer Sharing commissions with another licensed agent Performing insurance transactions without a license Conducting insurance business in this state while being a resident of another

Office of Insurance Regulation (OIR)

Which entity approves the insurance policy forms used in Florida? National Association of Insurance Commissioners (NAIC) Department of Financial Services (DFS) Financial Services Commission (FSC) Office of Insurance Regulation (OIR)

Working for a foreign insurer

Which of the following activities will NOT result in the suspension of an agent's license? Making malicious and false statements about an insurer Replacing an insurance policy from one insurer to another based on misrepresentation Working for a foreign insurer Misrepresenting any fact about an insurance policy

Authorize claim payments

Which of the following acts is an agent NOT authorized to do on behalf of an insurer? Accept premiums from policyowners Complete insurance applications Authorize claim payments Ask health related questions

Buyer's guide

Which of the following can an agent provide to help a prospective client understand and purchase the most appropriate product? Policy summary Conditional receipt Buyer's guide Illustration

Administration tasks

Which of the following employer tasks does a Professional Employer Organization normally handle? Marketing strategies Setting sales quotas Administration tasks Hiring staff

The amount of premium collected at this location

Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency? Listing the address on the agent's business cards Business solicitation is done at this location Clients are met at this location The amount of premium collected at this location

First degree misdemeanor

Which of the following is NOT a consequence for placing business with an unauthorized insurer? Third degree felony First degree misdemeanor Insurance license revoked Responsible for unpaid claims

Needing written documentation of claim details

Which of the following is NOT an unfair claim settlement practice? Failing to acknowledge and act promptly with respect to an insurance claim Compelling an insured to initiate a lawsuit by offering less on an insurance claim Failing to accept or deny a claim within reasonable time after proof of loss is submitted Needing written documentation of claim details

Sharing commissions with an agent licensed in the same line of business

Which of the following is NOT considered rebating? Sharing commissions with an agent licensed in the same line of business Returning premium to a client as an inducement for purchasing a policy Giving something of value to an insured in exchange for their business Offering special dividends

Projection of the policy's future costs

Which of the following is NOT required in the Outline of Coverage for a health insurance policy? Explanation of the policy's benefits Listing of the policy's exclusions and limitations Projection of the policy's future costs Explanation of the policy's renewal and cancellation provisions

Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis

Which of the following is a standard provision of the conversion privileges in a Group Life policy? Group Life coverage can only be converted if the employer pays for the individual policy Group Life coverage can normally be converted to an individual policy within 6 months Group Life coverage can only be converted by providing evidence of insurability Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis

Twisting involves an agent using misrepresentation to convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company

Which of the following is considered an accurate statement of an unfair trade practice? Coercion involves making a malicious statement about the financial condition of an insurance company Twisting involves an agent using misrepresentation to convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company No more than 25% of an agent's insurance sales are allowed to come from controlled business Rebating occurs when someone intentionally deceives another with the intent to gain financially

An agent guaranteeing a policy's dividends

Which of the following is considered to be misrepresentation? Replacing an existing policy with a new one An agent guaranteeing a policy's dividends Sharing commissions with other licensed agents Representing a foreign insurer

Risk management advisers

Which of these is NOT a legal entity for selling life insurance in Florida? Independent agency system Risk management advisers Career agency system Personal producing general agency

Florida Life and Health Insurance Guaranty Association

Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency? National Association of Insurance Commissioners (NAIC) Florida Life and Health Insurance Guaranty Association Department of Financial Services Office of Insurance Regulation

Department of Financial Services; and Securities Exchange Commission

Which two entities regulate variable annuities? National Association of Insurance Commissioners; and Department of Financial Services Department of Financial Services; and Securities Exchange Commission National Association of Insurance and Financial Advisors; and Securities Exchange Commission Financial Industry Regulatory Authority; and Department of Financial Services

The insurance company

Who does an agent represent during the solicitation of insurance? The State of Florida The Department of Financial Services The insurance company The client

Its policyholders

Who is a mutual insurance company owned by? Its board of directors Its policyholders The State of Florida Its employees

Its stockholders

Who owns a stock company? Its policyowners Its stockholders Its board of directors Its CEO

30

Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund? 15 20 25 30

30

Within how many days must a licensee notify the Department of Financial Services of a change in address? 30 60 90 120