Florida Statutes, Rules, and Regulations Common to all lines

Which of the following insurance providers must be nonprofit and sell insurance only to it's members A. Reciprocal B. Fraternal C. Service D. Mutual

B. To be charactized as a fraternal bebefit society the organization mustbe nonprofit, have a lodge system that includes ritualistic work and maintain a representative form of vernment with elexted officers. Insurance may only be sold to members of the society.

An insurer incorporated in which of the following locations would be considered a foreign insurer in Washington D.C.? A. Canada B. Washington D.C C. Maryland D. Mexico

C. Maryland is CORRECT! A foreign insurer is an insurance company that is incrported in another state or territorial possession. Mexico and Canada are foreign countries, so their insurers will be conisered alien. An insurer that is incorported and that operates in Washington D. C. would be considered domestic.

Which of the following is true about misrepresentation? A. Making a maliciously critical statement that is intended to injure another person B. Discriminating among individuals of the same insuring class C. Issuing salws material with false statements about policy benefits D. Making a deceptive or untrue statement about a person engainging in the insurance business

C. Misrepresentation is issuing, publishing or circulating any illustration or sales material that is false, misleading or deceptive as the policy bebefits or terms, the payment of dividents, etc. This includes oral statements.

The requirement that agents not commingle insurance monies with their own funds is known as A. Express B. Accepted accounting principal C. Fiduciary responsibility D. Premium accountability

C. Money collected with respect to an insurance transaction must be held in a position of trust by the agent or broker.

If an insurer meets the State's financial requirements and is approved to transact business in the state, it is considered to be A. Qualified B. Approved C. Authorized D. Certified

c. Insurers who meetthe state's financial requirements and are approved to transact business in the state are considered authorized or admitted into the state as a legal insurer.