Chapter 15 - state laws

An insured placed with the FAJUA (Florida automobile joint underwriting association) must be notified in writing that the insurance coverage is not through the private market within _________ of placement.

10 days

An insurer must send the claimant forms for filing proof of loss how long after it receives the notice of a claim?

15 days

The insurer must pay no later than ________ after the settlement of a claim is agreed and reached?

20 days

First time applicant under what age are required to complete a motorcycle education course?

21

How long must an agent retain a contract for a negotiated fee?

3 years

How long does the office have to approve or disapprove or request a change the filing?

30 days

The service charge of an insurer may not be more than _________of the additional charge by premium finance companies

50%

The Florida surplus lines service office collects a service fee of what amount from each surplus lines agent to be paid by the insured?

0.3%

Does the federal employees compensation act or the federal employers liability act apply to interstate railroad workers?

Federal employers liability act

Willful violation of the insurance code results in...?

Second degree misdemeanor and 60 day imprisonment

What are the three acceptable means of proving financial responsibility?

Self insurance, maintaining an insurance policy, and a deposit of cash

How long does a first-degree misdemeanor imprison someone for?

Up to 1 year

How long does a third-degree felony imprison someone for?

Up to 5 years

How long does a second-degree misdemeanor imprison someone for?

Up to 60 days

Citizens Property Insurance Corporation must accept a Commercial Lines residential risk with limits above __________ or a Personal Lines residential risk with limits above _________ if coverage is not available in the authorized market.

$10 million, $1 million

The standard PIP coverage limit is _________ for medical and disability benefits and ________ for in death benefits?

$10,000; $5000

Failure to answer a subpoena or order results in a...

$1000 fine

What is the maximum service charge allowed for a premium finance company?

$12 out of every 100 + additional $20 charge

What is the maximum service charged allowed for an agent or agency?

$3 per installment, $36 per year

Violation of cease-and-desist order results in a...

$50,000 fine

The insurer must offer alternative deductible amounts applicable to hurricane losses unless the specific percentage deductible is less than...?

$500

How much are death benefits PIP coverage under auto insurance?

$5000

A proof of loss must be provided to the insurer within ______ days of a homeowner loss

90

What is a person charged with who acts as an insurer, transacts insurance, or otherwise engages in insurance activities in Florida without a certificate of authority?

A felony of first second or third degree

The Financial Services Commission: A - Directly regulates financial planners B - Is headed by the Chief Financial Officer C - Protects the public through oversight of insurance company solvency D - Is headed by the Commissioner of the Office of Insurance Regulation

C

Which of the following forms does not require approval from the Office of Insurance Regulation? A - Application B - Group certificate C - Agent report D - Renewal certificate

C

Which of the following is NOT a general duty and power of the Office of Financial Regulation? A. Auditing insurers B. Enforcement of the Insurance Code C. Qualify all foreign corporations to do business in Florida D. Taking over insolvent companies and attempting to restore financial integrity

C

Which of the following statements is incorrect about mediation or appraisal? A. Policyholders and insurers should try to resolve claims quickly and fairly before resorting to mediation/appraisal B. Mediation may be requested only by the policyholder, as a first party claimant, or the insurer C. The costs of mediation are shared by the policyholder and the insurer D. Mediation is non-binding

C

The practice whereby policy values (such as cash value) in an existing life insurance policy, annuity contract, and/or any riders, are used to purchase another insurance policy or annuity contract with that same insurer for the purpose of earning additional premiums, fees, commissions, or other compensation

Churning

Fraudulent conduct in committing twisting or churning non-willful violation results in...?

First degree misdemeanor and $5000 fine

Fraudulent conduct in committing twisting or turning willful violation results in...?

First degree misdemeanor and $75,000 fine

Can a personal auto policy be cancelled for nonpayment of premium within the first 60 days?

No

Does an applicant need to have a high school diploma/GED to apply for an insurance license in Florida?

No

Does the FAJUA provide automobile liability insurance if an insurer becomes insolvent?

No

Does the division of financial services have the power to regulate the state Medicaid program?

No

Unlicensed entities are a regulatory concern for what reason?

Potential for criminal activity

What are the four sections of the office of insurance regulation?

Property and casualty, life and health, investigations, and market analysis

If an agent offers or extends anything of value to a client that is not already a part of the contract, as an incentive to purchase insurance this is considered...?

Rebating

Does the surplus line agent or the applicant have to verify that a diligent effort has been made it to procure the full amount of required insurance from an authorized insurer?

Surplus lines agent

What department handles unclaimed property?

The department of commerce division of unclaimed funds

The financial services commission is made up of...?

The governor, chief financial officer, Attorney General, and commissioner of agriculture

Who pays for mediation?

The insurer

submitting fraudulent signatures non-willful violation results in...?

Third degree felony and $5000 fine

Willfully submitting fraudulent signatures results in...?

Third degree felony and $75,000 fine

True or false: a premium finance company must file all forms, service charges, and interest rate plans with the office for approval

True

Misleading and convincing an insured to surrender, lapse, or exchange an existing policy for a different one, to the insured's detriment is considered...?

Twisting

Are death benefits under PIP coverage of auto insurance in addition to medical and disability benefits?

Yes

Are mobile homes eligible for windstorm coverage under citizens property insurance corporation if they are tied down according to their states requirements?

Yes

Can uninsured/underinsured motorist coverage be rejected, or less than bodily injury limits if requested by the insured?

Yes

Does a Florida surplus lines agent have to be part of the surplus line service office association as part of holding their license?

Yes

Does an applicant need to be a US citizen/legal alien with work authorization to apply for an insurance license in Florida?

Yes

Does the federal employees compensation act or the federal employers liability act apply to all civilian employees of the US government?

federal employees compensation act