Florida Laws and Rules Pertinent to Insurance
In Florida, monthly-premium health insurance policies must provide a grace period of at least
10 days
Florida requires that coverage for newborns begins "from the moment of birth" and continues for
18 months
The act of an insurance company publishing misleading information about its policy's provisions is called
False advertising
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
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
The premiums for the handicapped child are not paid
According to Florida's rules on disclosure, a life insurance applicant is expected to be provided with
a Buyer's Guide and Policy Summary
What do Dread Disease policies cover?
a specific disease or illness
The insurer must provide a prospective buyer with a(n)
buyer's guide and policy summary
The Bureau of Unclaimed Property is overseen by the
chief financial officer
In Florida, which of the following is considered an Unfair Trade Practice?
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?
coercion
Which of the following areas of state regulation is NOT protected by the savings clause in ERISA? -Insurance -Commerce -Banking -Securities
commerce
In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n)
foreign company
Which of the following situations are NOT subject to Florida life insurance laws?
insurance companies day to day operations
Who is a mutual insurance company owned by?
its policyholders
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
limitation on pre-existing conditions for up to 12 months
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
misrepresentation
According to Florida law, group life insurance conversion privileges must NOT
require evidence of insurability
Which of these is NOT a legal entity for selling life insurance in Florida?
risk management advisers
What is required in the Florida Employee Health Care Access Act?
small group benefit plans are to be issued on "guarantee-issue" basis
During the application process, the agent's primary responsibility is to
the insurance company
According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age
64 years or older
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
7 day grace period
What is Florida's definition of Life insurance replacement?
A transaction in which a new policy is bought and an old policy is terminated
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
Which of the following situations does NOT apply to the Florida Replacement Rule?
an existing policyholder purchases an additional policy from the same insurer
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
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 applicant who pays the initial premium at the time of application is typically given a(n)
conditional receipt
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
An example of an unfair claims practice would be
failing to effectuate prompt, fair, and equitable settlements of a claim
Under an Individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured?
monthly
Which entity approves the insurance policy forms used in Florida?
office of insurance regulation (OIR)
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
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?
pay monetary restitution to the client
Which of the following is NOT required in the Outline of Coverage for a health insurance policy?
projection of the policy's future costs
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 policyholder
Within how many days must a licensee notify the Department of Financial Services of a change in address?
30
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
Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock?
Misrepresentation
Florida's 14-day free-look period for life insurance policies begins at the
date of delivery
Which of the following unfair trade practices involves an agent who makes malicious statements about another person's financial condition?
defamation
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
in Florida, most life insurance policies have a contestability period of
2 years
An insurance company can contest a life insurance contract due to application fraud within
2 years
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
6 months
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
acting w/ fiduciary responsibility