Florida 2-40 health exam chapter 4

Insurance Agency

A business location at which an individual,firm, partnership ENGAGES IN ANY ACTIVITY that by law may be performed by a licensed insurance agent. Example a home with a sign in the yard is still an insurance agency

Single case agreement

A licensed agent is permitted to place business with another company if the agents own company has rejected the applicant or is in excess of that which his own company can write . To collect the commission from the other company no additional appointment is necessary. This is known as

Insolvent Insurer

A member insurer that was determined by a court to be insolvent

30 days

How long do you have to notify the OIR in writing if you have plead guilty ,convicted or no contest to a felony?

48 months

How long does an individual have if they fail to maintain an appointment with an insurer ?

20 days

How long does an insurer have to respond to a filed consumer complaint issued by the OIR?

30 days

How long does it take a policy or renewal to be approved by the state of Florida ?

5 years

How long should insurer maintain a copy of all rebate schedules?

30 days

How long would you have to notify the OIR regarding a change in email,name, residence address, business address, mailing address,phone numbers including change to business numbers?

Unfair trade practices act

Misrepresentation,false advertising,coercion and intimidation,unfair discrimination , inequitable administration or claims settlement are all part of

24 moths after the appointment on the last day of the licensee's birth month

New appointments expire and shall be subject to renewal of the company that appointed the agent. When does the appointment expire?

Unfair trade practices act

Power to investigate companies and producers;power to issue cease and desist orders; power to impose penalties on violators; gives authority to seek a court injunction;

a contract of agency

The authority of an agent to undertake certain functions for an insurance company would be found under which of the following?

1. A separate room must be set aside as an office 2. This room should be easily accessible to the public and used by the agent in all transactions 3.the existence of such place must be suitably advertised as determined by the OIR

What are the requirements for a residential business office selling insurance?

40 hoursof approved prelicensing education

What are the requirements for prelicensing education?

Rebate schedule must be prominently displayed in public view in agents place of business and copy made available to insureds on request at no charge

What are the rules governing rebate schedule?

If the practice of of twisting and churning involves fraudulent conduct

What constitutes a willful violation under twisting and churning?

Department of Financial services

What department handles liquidation of rehabilitation of a domestic insurer?

A total of 24 hours of continuing education and 5 hours of law and ethics update course every two years

What is a licensee required to complete every two years?

independent agency system

What is also known as the American agency system?

If funds $300 or less-misdemeanor of the first degree If funds more than $300 but less than $20k a felony in the 3rd degree If funds more than 20k then felony of 2nd degree If funds more than $100,000 then felony is first degree

What are the penalties for an agent that misappropriated or diverts fiduciary funds?

Preserving a separate account for insurer that can be audited by the OIR. Account for and pay the premiums received to the insurer

What is the agents fiduciary responsibility to both the company and client?

A felony

What is the penalty for a licensed insurance agent in Florida who knowingly represents or aids an unauthorized insurer?

$250 for the first offense and a fine of at least $500 OR revocation of the license for a subsequent offense

What is the penalty for failure to notify the OIR of a change within 30 days by written notice?

NAIFA National association of insurance and financial advisors

What is the professional organization who we code of ethics has been incorporated into Florida insurance law?

Unfair trade practices act

What law allows the CFO of Florida to issue a cease and desist order?

General lines agent. Life agent,health agent or title agent

What titles fall under the term agent?

Transacting insurance

soliciting ,negotiating and effectuating a contract of insurance is the definition of

Excess or rejected business

Agent is allowed to place business with another company if agents own company rejects applicant or amount is in Excess of what agents company can write. This is called

Use of membership in advertising

Agents cannot publish, circulate any literature or information over radio or TV using any reference to the Florida insurance guaranty association as a sales tactic to sell insurance

the CFO, financial services commission and the commissioner of the office of insurance regulation

All of the following administers insurance state laws of Florida

Commissioner of the office of insurance regulation

All of the following are members of the Financial Services Commission EXCEPT ?

An Unauthorized insurer

An insurer that does not have a certificate of authority is called

A misdemeanor

Any individual that obstructs the department of the OIR, the office or the examiner in the examination or investigation is guilty of ? A felony A misdemeanor And must pay a $250 fine

A felony

Any person who acts as an insurer,transacts insurance or engages in any insurance activities without a certificate of authority commits ? A misdemeanor A felony

5 times

Applicants who have failed to make a passing grade may retake the exam up to how many times in a 12 month period?

No. If she has no employees

Beth is a licensed,self appointed insurance agent who owns and operates her insurance business with no other employees. Does Beth need a license to operate?

No. They must be authorized by the OIR and the application and transaction both must be taken and delivered to the person by a licensed and appointed Florida agent

Can a mail order insurer from Illinois that is not authorized to sell in the state of Florida,sending mailers to Florida residents?

Yes, but agent must be present whenever an insurance transaction takes place because employees are unlicensed

Can an Agent in Full-time charge of two agencies sell insurance at either location.? Note all his employees are unlicensed

Commission rebates

Commission rebates must be all insureds in the same class All insured who purchase same policy through agent received the same amount of percentage rebate

30 days

Commissions for a licensed health agent must be disclosed on contract to applicant it must clearly show the amount that goes to agent. any commission received from insurer will be rebated to that party within how many days

The governor,the CFO, the attorney General and the commissioner of agriculture

Financial services commission is composed of

Office of financial regulation

Has the power to issue orders and declaratory statements, supervises all state financial institutions?

A certificate of authority issued by the OIR

How do you become an authorized insurer?

By requiring a minimum level of insurance knowledge and competence

How does the Florida licensing statutes help protect the public?

Department of financial services

If a foreign or alien member insurer is subject to a liquidation proceeding in its domiciliary jurisdiction or state of entry the department shall be appointed conservator. What dept. is this?

License is terminated immediately

If an appointee moves her residence or business out of the state, how long does she have before her license is terminated?

Yes. Felony

If bob knowingly works for an unauthorized insurer and assists this company with a few transactions. Is this unlawful?

Once a year if less than 3 years in business

If the domestic insurer has held a certificate of authority for less than three years. How offer is an examination by the OIR conducted? Every 6 months Twice a year Once a year After 5 years

Society of Actuaries or Casualty Acturial Society

In order for an actuary to work for the department and offices the actuary must be a member of one of these two societies

No

Is a customer service or service agent seen as an agent?

Yes it's illegal

Is it illegal to receive commissions from a company if agent is not appointed by the company?

Defamation

Knowingly publishing or disseminating or circulating,directly or indirectly any oral or written statement

Impaired Insurer

Means a member insurer deemed by the department to be Potentially unable to fulfill its obligations . Not an insolvent insurer

The Florida life and health insurance Guaranty association

Non-profit legal entity. All life health and annuity insurers are members of this association as a condition of their authority to transact insurance in Florida

Rate making supervision, policy forms approval, market conduct investigation , issuing certificates of authority,administrative supervision

Office of financial regulation duties include

CFO of Florida

Oversees 15 divisons and offices including a division of Accounting and Auditing ( beureau of unclaimed property )

The Florida life and health insurance guaranty association

Purpose of organization is to protect policy owners ,insureds,beneficiaries,annuitants,payees nod assignees of insurance policies against the failure of the insurer to perform its contractual obligations due to impairment and insolvency

Yes. It is an insurance transaction

Solicitation or inducement to purchase insurance and any preliminary negotiations towards the sale of insurance without paperwork .is this considered a insurance transaction?

Administer the insurance laws of Florida

The CFO, the financial services commission,the commissioner of the office of insurance regulation all work together to.....

insurers

The Office of Financial Regulation (OFR) regulates all of the following except:

Sliding

The act of attaching extra stuff on a policy an d not disclosing to Applicant. Advising an addition to policy is required when it's not. Advising no additional charge for something on policy that has a charge

Producers represent the company and Brokers represent the Client

The major difference between brokers and producers (agents)is?

True

The office of insurance regulation in charge of liquidating insurers. True or false?

market conduct examinations

The office of insurance regulation may examine each domestic insurer in the state of Florida. What is this examination called ?

Five years

The office of insurance regulation may examine each domestic insurer not less frequently than ? 18 months Four years Five years 6 months

Fraternal benefits society contracts

The state life and Health Guranty association does not cover this type of insurer's contract

An adjuster

This person effects settlement for claims

Mutual insurance company

This type of insurer gives the policyholders the right to elect their own board of directors

False. He cannot issue only request an injunction

True or false . Jeff Atwater can issue an injunction order

When the sale is made before the date of appointment as an unaffiliated agent and as long as agent discloses the receipt of commissions to the client when making recommendations

Unaffiliated agents can only receive commissions when?

If the agent fails to inform the department within 30 days after pleading guilty or no contest to a felony ,cheating on an exam required for licensure,failure to comply with any action taken by child support enforcement program

When can the OIR deny an agents application,suspend, revoke or refuse to renew a license ?

Within 30 days after passing the exam

When do you receive the insurance license after passing the test?

Office of insurance regulation and the office of financial Regulation

Which branch(es)that reports to the CFO can administer oaths,examine witnesses,receive evidence,subpoena witnesses,compel their attendance and testimony and can require by subpoena the production of books,papers,records correspondence or other evidence that is relevant to an inquiry?

Conviction of a first-degree misdemeanor

Which of the following would NOT be a consequence for aiding and abetting an unauthorized insurer?

The CFO

Who is regulation of the insurance industry directly administered by?

Public adjuster

Works on behalf of insured to prepare, complete or file an insurance claim form for an insured or third party claimant.

All-lines adjuster

Works on behalf of insurer to determine amount of loss or damage payable through insurance contract to effect settlement.

3 years

producers must retain any records of insurance transactions pertaining to premiums paid for at least...

monetary penalty of not more than $50,000 suspension or revocation of certificate of authority,license or eligibility to hold certificate of authority or license

what is the penalty for an agent /company that violates the cease and desist order?

a felony of the third degree plus an administrative fine for nonwillful violation not greater than $5000 or pay an adminstrative fine no greater than $75000 for willfull violation

what is the penalty for an agent that willfully submits fraudulent signatures on an application or policy related document?

misdemeanor. plus pay fine not greater than $5000 for each non willful violation or a fine not greater than $75000 may be imposed for each willful violation

what is the penalty for twisting and churning?