Unit Eight - The Department and Insurance Defined

A _______ insurer is one formed under the laws of the state the agent resides in.

A DOMESTIC insurer is one formed under the laws of the state the agent resides in.

A _______ insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States other than this state.

A FOREIGN insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States other than this state..

A Mutual Company becomes a Stock Company through this process.

A Mutual Company becomes a Stock Company through the process of DEMUTUALIZATION.

A reciprocal exchange is legally controlled by.

A reciprocal exchange is legally controlled by an Attorney-in Fact.

According to Florida Statute 624.09 an "_____________" insurer is one which does not have a certificate of authority issued by the department to transact insurance in this state.

According to Florida Statute 624.09 an "UNAUTHORIZED" insurer is one which does not have a certificate of authority issued by the department to transact insurance in this state.

You have just learned that a new insurance company in Florida has a certificate of authority issued by the department to transact insurance in this state. This new company is an _________ company.

An "authorized" insurer is one duly authorized by a subsisting certificate of authority issued by the department to transact insurance in Florida.​

An _______ insurer is an insurer other than a domestic or foreign insurer.

An ALIEN insurer is an insurer other than a domestic or foreign insurer.

An _______ includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuity.

An INSURER includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuity.

An insurance company owned by its stockholders.

An insurance company owned by stockholders is a STOCK INSURANCE COMPANY.

An insurance company owned by stockholders is a Stock Insurance Company.

An insurance company owned by stockholders is a Stock Insurance Company.

True of False? A "domestic" insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States other than this state.

False. A "domestic" insurer is one formed under the laws of Florida.

True or False? A "foreign" insurer is one formed under the laws of the state the agent resides in.

False. A "foreign" insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States other than Florida.

___________ is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.

INSURANCE is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.

Insurance is a contract whereby one undertakes to _________ another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.

Insurance is a contract whereby one undertakes to INDEMNIFY another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.

The consequences for acting as an insurer without proper licensure include a third degree felony; ___________ for any unpaid claims; and suspension or revocation of all insurance licenses.

The consequences for acting as an insurer without proper licensure include a third degree felony; LIABILITY for any unpaid claims; and suspension or revocation of all insurance licenses.

The consequences for aiding and abetting an unauthorized insurer include a ________ degree felony and liability of unpaid claims.

The consequences for aiding and abetting an unauthorized insurer include a third degree felony and liability of unpaid claims.

The difference between a Stock Insurance Company and a Mutual Insurance Company.

The difference between a Stock Insurance Company and a Mutual Insurance Company is ownership and control.

_________________ insurance includes solicitation, inducement, and or negotiations.

Transacting insurance includes solicitation, inducement, and or negotiations.

Transacting insurance includes solicitation or inducement; negotiations; and any effectuation of a __________ of insurance.

Transacting insurance includes: solicitation or inducement; negotiations; OR effectuation of a contract of insurance.

True or False? A component of ethics is having the technical knowledge to facilitate transactions on behalf of the insuring public.

True. A component of ethics is having the technical knowledge to facilitate transactions on behalf of the insuring public.

True or False? According to Florida Statute 624.09 an "authorized" insurer is one with an authorized certificate of authority issued by the department to transact insurance in this state.

True. According to Florida Statute 624.09 an "authorized" insurer is one with an authorized certificate of authority issued by the department to transact insurance in this state.

Unauthorized entities present a regulatory concern because they have the potential for __________ claims.

Unauthorized entities present a regulatory concern because they have the potential for unpaid claims.