Chapter 19/2: Florida General Review ctd

What is the maximum amount that the Florida Life and Health Guaranty Association will pay for any one life from an insolvent insurer?

The Florida Life and Health Guaranty Association will pay a maximum of $300,000 for any one life from an insolvent insurer. The correct answer is: $300,000

A gift for the purposes of advertising is allowed if the value is not more than:

A gift for the purposes of advertising is allowed if the value is not more than $25.00. The correct answer is: $25

Giving a client's child a stuffed animal with a company's logo that is valued at less than $25 would be considered:

A small gift under $25.00 that is used as advertising is not rebating. For example giving a client's child a stuffed animal with your company's logo. The correct answer is: Advertising

An insurer cannot refuse to insure or charge a higher premium for insuring a person solely because the person has:

An insurer cannot refuse to insure or charge a higher premium for insuring a person solely because the person has the sickle-cell trait. The correct answer is: Sickle-cell trait

If a person commits twisting or churning, they have committed a:

If a person commits twisting or churning, they have committed a first degree misdemeanor. The correct answer is: First degree misdemeanor

If a person nonwillfully commits twisting or churning, they are subject to an administrative penalty not greater than $5,000.

If a person nonwillfully commits twisting or churning, they are subject to an administrative penalty not greater than $5,000. The correct answer is: $5,000

If a person willfully commits twisting or churning, they are subject to an administrative penalty not greater than $5,000.

If a person willfully commits twisting or churning, they are subject to an administrative penalty not greater than $75,000. The correct answer is: $75,000

If an agent diverts or misappropriates funds of $300 or less, they have committed a:

If an agent diverts or misappropriates funds of $300 or less, they have committed a first degree misdemeanor. The correct answer is: First degree misdemeanor

If an agent diverts or misappropriates funds of more than $100,000, they have committed a:

If an agent diverts or misappropriates funds of more than $100,000, they have committed a first degree felony. The correct answer is: First degree felony

If an agent diverts or misappropriates funds of more than $20,000, but less than $100,000, they have committed a:

If an agent diverts or misappropriates funds of more than $20,000, but less than $100,000, they have committed a second degree felony. The correct answer is: Second degree felony

Who may accept a commission for soliciting or negotiating insurance?

Only a licensed and appointed agent may accept a commission for soliciting or negotiating insurance. The correct answer is: A licensed and appointed agent only

In insurance terms, which of the following is NOT "sliding"?

Sliding is the act or practice of: representing to the applicant that a specific ancillary coverage or product is required by law in conjunction with the purchase of insurance when such coverage or product is not required; representing to the applicant that a specific ancillary coverage or product is included in the policy applied for without an additional charge when such charge is required; or charging an applicant for a specific ancillary coverage or product, in addition to the cost of the insurance coverage applied for, without the informed consent of the applicant. Getting someone to change policies with a different company without revealing all the repercussions is twisting. The correct answer is: Getting someone to change policies with a different company without revealing all the repercussions

What is the maximum amount that the Florida Life and Health Guaranty Association will pay to a person for a deferred annuity contract from an insolvent insurer?

The Florida Life and Health Guaranty Association will pay a maximum of $250,000 for a deferred annuity contract from an insolvent insurer. The correct answer is: $250,000

The Insurance Department may place on probation, suspend, revoke or refuse to issue or renew an insurance producer license for which of the following reasons?

The Insurance Department may place on probation, suspend, revoke or refuse to issue or renew an insurance producer license for committing a FELONY or any of the other reasons. The correct answer is: Committing a misdemeanor

How often is the Office of Insurance Regulation entitled to perform a financial examination of an insurer?

The Office of Insurance Regulation is entitled to perform a financial examination of each insurer at least once every 3 years. The correct answer is: At least once every 3 years

Inducing a policyholder to switch insurance companies without regard to bad consequences is:

Twisting is knowingly making misleading representations or incomplete or fraudulent comparisons of insurance policies in order to induce a person to lapse, forfeit, surrender, terminate, retain, assign, or convert a policy in order to sell a policy for another company. The correct answer is: Twisting

What is the maximum percentage of premiums for policies sold by a licensee in a 12-month period can be from controlled business?

A license will be considered to have been used to write controlled business if during a 12-month period the premiums from controlled business exceed the premiums for life or health insurance contracts to the general public. The correct answer is: 50%

The fact that an insurance agent cannot commingle their insurance funds with their personal funds is referred to in legal terms as:

All premiums belonging to insurers or others received by an agent are trust funds received by the licensee in a fiduciary capacity. An agent must keep the funds belonging to each insurer for which an agent is not appointed in a separate account so as to allow the department or office to properly audit such funds. Agents must not use such funds for their own purposes. The correct answer is: Fiduciary responsibility

Inducing a policyholder to change policies within the same insurance company without regard to bad consequences is:

Churning is knowingly making misleading representations or incomplete or fraudulent comparisons of insurance policies in order to induce a person to lapse, forfeit, surrender, terminate, retain, assign, or convert a policy in order to sell a policy for the same company. The correct answer is: Churning

Insurance advertisements may not:

Insurance advertisements may not make unfair or incomplete comparisons of policies, contracts, or benefits. The correct answer is: Make unfair or incomplete comparisons of policies

If an agent diverts or misappropriates funds of more than $300, but less than $20,000, they have committed a:

If an agent diverts or misappropriates funds of more than $300, but less than $20,000, they have committed a third degree felony. The correct answer is: Third degree felony

Insurance advertisements must maintain a complete file of all advertisements for a maximum of:

Insurers must maintain a complete file of all advertisements for 4 years or until the filing of the next regular report or examination of the insurer, whichever is longer. The correct answer is: 4 years

Testimonials used in advertisements must be all of the following, EXCEPT:

Testimonials used in advertisements must be genuine, represent a current opinion, be applicable and be accurate. Being easy to follow is not required by law. The correct answer is: Easy to follow

What is the maximum amount that the Florida Life and Health Guaranty Association will pay to a person for net cash withdrawals for life insurance from an insolvent insurer?

The Florida Life and Health Guaranty Association will pay a maximum of $100,000 for net cash withdrawals for life insurance from an insolvent insurer. The correct answer is: $100,000