Laws and Rules
A life policy loan in Florida cannot charge a fixed rate of interest higher than
10%
What percentage of eligible persons must a policy cover in a noncontributory group?
100%-
The minimum age at which a person can sign a life insurance application is
15 years
An insurance company can contest a life insurance contract due to application fraud within
2 years
Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA).
20
within how many days after policy delivery can a medicare supplement policy be returned
30 days
How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated?
45-
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?
48 months
Florida requires that an insurance agent must complete __ hours of continuing education on the subject of law and ethics every two years.
5
Which of the following provisions is NOT required in HMO contracts/certificates?
7 day grace period
What do Dread Disease policies cover?
A specific disease or illness
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
All of these are a prerequisite for becoming a licensed agent EXCEPT
Graduate from high school-
a multiple employer welfare arrangement (mewa) provides what type of benefits
Insurance
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?
Misrepresentation
Which Unfair Trade Practice involves making a false statement on an insurance application in order to receive money from an insurer?
Misrepresentation
Which of the following is NOT considered to be an unfair claims practice?
Needing written documentation of claim deails
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 employees may not be excluded from a group life plan
full time employees after the probationary period
the life and health insurance guaranty association is
funded by admitted insurance companies through assessments
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?
limitation on pre-existing conditions for up to 12 months
what is the main reason for regulating the insurance industry
maintain the solvency of insurance companies
In Florida, deceptive advertising is considered to be
misrepresentation
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
an example of unfair discrimination would be
offering different terms of coverage for different policyowners having the same risk classification
If a policyowner does not pay the premium by the due date, the
policyowner can make the premium payment during the grace period
Advertising gifts not to exceed ___ are allowed to be given by an agent to a prospective client
$25
What is the the required minimum percentage of employee participation noncontributory group health insurance plan according to Florida law?
0%
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
In Florida, most life insurance policies have a contestability period of
2 years The maximum contestability period for most life insurance policies is 2 years.
in what year was the florida office of financial regulation (OFR) created
2003
Agents that have been licensed for less than six years must complete __ hours of continuing education every two years.
24
how many hours of continuing education must a newly licensed agent complete every two years
24
within how many days must a licensee notify the department of financial services
30 days
A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's termination?
31 days
In Florida, a health policy that is paid on a quarterly basis requires a grace period of
31 days
in florida what is the maximum percentage of controlled business an agent may produce?
50%
the waiting period for a pre-existing condition under a medicare supplement policy
6 months
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
What do families pay that are covered by the Florida Healthy Kids Corporation?
A portion of the premium
what is florida's definition of life insurance replacement
A transaction in which a new policy is bought and old one terminated.
What type of insurance company is domiciled in England, but conducts business in Florida?
Alien
Which of the following is considered to be misrepresentation?
An agent guaranteeing a policy's dividends
All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT
An agent's commission
According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant?
At the time of application
Which of the following acts is an agent NOT authorized to do on behalf of an insurer?
Authorize claim payments
An example of sliding would be?
Charging for an additional product without the applicant's consent".
The Bureau of Unclaimed Property is overseen by the
Chief Financial Officer
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
All of the following are eligibility requirements for an association group EXCEPT
Contributory plans require a minimum of 25 participants
which of the following unfair trade practices involves an agent who makes malicious statements about another person's financial condition
Defamation
which two entities regulate variable annuities
Department of Financial Services; and Securities Exchange Commission
The act of an insurance company publishing misleading information about its policy's provisions is called
False advertising
Which of the following is NOT a consequence for placing business with an unauthorized insurer?
First degree misdemeanor
which organization was established to provide funds to protect an insured in the event of insurer's insolvency
Florida Life and Health Insurance Guaranty Association
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
Florida Replacement Rule
Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called
Fraternal life insurance organizations
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
What would be an accurate definition of "controlled business"?
Insurance business that is written on the agent's own life, property, or interests
A foreign insurance company doing business in Florida?
Is a company that was formed under the laws of another state.
A licensee may have their license suspended, terminated or revoked for all of the following reason EXCEPT?
Is found guilty of misrepresentation
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
If an agent would like to sell Variable annuities, which state examination must the agent pass?
Life and Variable contracts
According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase?
Marital status
Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock?
Misrepresentation
Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is
Monthly
What are adjustable rates for life policy loans in Florida based on?
Moody's corporate bond index
Which type of insurance company allows their policyowners to elect a governing body?
Mutual
which of the following professional organizations has its code of ethics incorporated into Florida law?
National Association of Insurance and Financial Advisors
In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies?
Naturopaths
According to Florida law, a Group Life insurance policy requires a minimum of how many insureds?
No minimum
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
which entity approves the insurance policy forms used in florida
Office of Insurance Regulation
How can an agent-in-charge have more than one location?
Only if agent in charge is present when insurance activity occurs
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 factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency
The amount of premium collected at this location
According to Florida Law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy?
The premiums for the handicapped child are not paid
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 proceeds would be reduced based on whatever the premium would have been if purchased at age 59.
In order for a domestic, foreign, or alien insurance company to conduct business, it must be authorized by whom?
The state where they are conducting business"
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?
Twenty
J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?
Twisting
Which of the following is considered an accurate statement of an unfair trade practice?
Twisting
Which of the following activities will NOT result in the suspension of an agent's license?
Working for a foreign insurer.
all of the following will result in the suspension of an agent's license except
acting with fiduciary responsibility
an example of an unfair trade practice is
an agent making a material misrepresentation to the insured
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 example of an unfair claims practice would be
failing to effectuate prompt, fair, and equitable settlements of a claim.
the financial services commission may hold hearings
for any reason deemed necessary
The Florida Employee Health Care Access Act was established to make
group health insurance available to employers with up to 50 employees
insurance/agents must in Florida offer and issue all small employer health plans on a
guaranteed issue basis
Which of the following situations are NOT subject to Florida life insurance laws?
insurance companies day to day operations
A stock insurance company
is owned exclusively by its shareholders
in florida an element of an insurance transaction would be
issuing an insurance contract
defamation occurs when an agent makes a false statement intended to
malign another insurer
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
misrepresentation
During the course of an insurance transaction, if an agent makes a false or incomplete statement, he/she could be found guilty of
misrepresentation
a stock life insurance company that issues both participating and nonparticipating policies is doing business
mixed plan
In Florida, agents are allowed to engage in rebating if
offered to all insureds in the same actuarial class
Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract
once each year
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
according to florida's life insurance replacement laws, a policyowner must be provided with a written comparison and summary when it's requested
policy owner
who is a mutual insurance company owned by
policyholders
what is the purpose of the life and health insurance guaranty association
protects policyowners against insolvent insurance companies
A long-term care lapse notice must be delivered to both the applicant and
secondary addressee
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
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
an example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
An agent's license can be suspended or revoked by
writing primarily controlled business
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 ( "viatical settlement provider". To receive a percentage of the policy face value, an owner of a life policy may sell the policy to a viatical settlement provider.
which of the following employer tasks does a professional employer organization normally handle
Administration tasks
Insurance companies that are organized in countries outside the United States are referred to as?
Alien.
Which of the following situations does NOT apply to the Florida Replacement Rule?
An existing policyholder purchases an additional policy from the same insurer-
An example of false advertising would be
An insurer exaggerating its dividends in a magazine advertisement
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?
An insurer must notify each certificate holder (employee) when the master policy has expired or is being cancelled. The insurer may take such action through the policyholder (employer).
When is a Group Health policy required to provide coverage for a newborn child?
At the moment of birth
All the following are Nonforfeiture options EXCEPT
Automatic Premium Loan Option
the coordination of benefits (cob) provision exists in order to
Avoid duplication of benefit payments
The insurer must provide a prospective buyer with a(n)
Buyer's Guide and Policy Summary
Which of the following can an agent provide to help a prospective client understand and purchase the most appropriate product?
Buyer's guide
In Florida, which of the following is considered an Unfair Trade Practice?
Coercion
Which of the following is an example of an Unfair Trade Practice?
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-
Which of the following areas of state regulation is NOT protected by the savings clause in ERISA?
Commerce
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
Which of the following types of insureds are life insurance companies allowed to make policy rate discriminations against?
People that smoke
Which action could result in a hearing being ordered by the Department of Financial Services?
Performing insurance transactions without a license
Which of the following is NOT required in the Outline of Coverage for a health insurance policy?
Projection of the policy's future costs
Which of these is NOT a legal entity for selling life insurance in Florida?
Risk management advisers
Which of the following is NOT considered rebating?
Sharing commissions with an agent licensed in the same line of business
A mutual insurance company and a stock insurance company have one main difference between them. What is the major contrast?
Stock company is owned by shareholders. Mutual company is owned by policyholder.
Who owns a stock company?
Stockholders
An agent selling Medicare Supplement policies must provide every applicant with a(n)?
Suitability form.
Who does an agent represent during the solicitation of insurance?
The insurance company
According to Florida's rules on disclosure, a life insurance applicant is expected to be provided with
a Buyer's Guide and Policy Summary
An individual covered under a Group Life insurance policy is considered to be a(n)
certificate holder
the policy summary contains specific information on all of the following except
commission
Florida's 14-day free-look period for life insurance policies begins at the
date of delivery
An insurance company incorporated under the laws of the state in which its home office is located is called a(n) ____ company.
domestic
In Florida, an insurer domiciled and incorporated in this state is called a(n)
domestic company
the department of financial services serves as the receiver of any insurer placed into
receivership
According to Florida law, group life insurance conversion privileges must NOT
require evidence of insurability
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 upon employment termination
One definition of replacement is "the act of replacing an existing insurance policy with another". Replacement is
closely regulated and requires full disclosure
An applicant who pays the initial premium at the time of application is typically given a(n)
conditional receipt
Group Life policies in Florida are required to contain a conversion privilege that allows for conversion
to an individual policy for a stated period of time
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
twisting
