FL Insurance practice exam(s)

Which of the following is the closest term to an "authorized" insurer?

Admitted Insurers who meet the 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.

An insurer incorporated in which of the following locations would be considered a foreign insurer in Washington D.C.?

Maryland

In order to maintain an insurance license, an agent will need to satisfy Florida's continuing education requirement of

24 hours of continuing education in every 2-year period.

All of the following information about a customer must be used in determining annuity suitability EXCEPT

Beneficiary's age.

How is the Insurance Guaranty Association funded?

By its members - authorized insurers

Which of the following is NOT a responsibility of the Office of Insurance Regulation?

Enacting new insurance laws

Which statement is NOT true regarding a policy summary?

It must be combined with a sales illustration.

If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdue premium and to charge interest. What is the maximum allowed interest rate?

8% The time that may elapse between a premium's due date and its eventual payment is called the grace period. If a claim is made on a policy during one of these grace periods, an insurer may deduct the amount of the premium due and up to 8% of interest per year from the settlement.

In life policies issued in this state, insurers are permitted to charge interest during the policy grace period for the number of days elapsing before the premium is paid. What is the maximum annual interest rate?

8% The time that may elapse between a premium's due date and its eventual payment is called the grace period. Insurer's may impose interest charges not to exceed 8% per year for the number of days elapsing before the premium is paid.

When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments?

Spendthrift provision

All of following are the general qualifications for an agent's license EXCEPT

Have a high school diploma.

Which of the following authorities grants and revokes licenses?

Department of Financial Services

An agent transacts business for Insurer A and Insurer B, both selling life insurance, and for Insurer C, selling health insurance. How many appointments must the agent hold?

Three - one for each insurer. An agent must have a separate appointment for each insurer.

An annuity contract is issued to a senior consumer over age 65. What is the maximum surrender charge for a withdrawal of money allowed on this annuity?

10% An annuity contract issued to a senior consumer age 65 or older may not contain a surrender or deferred sales charge for a withdrawal of money from an annuity exceeding 10% of the amount withdrawn.

When doing business in this state an insurance company that is formed under the laws of another state is known as which type of insurer?

Foreign A foreign insurer is one that is formed under the laws of another state. A nonadmitted or unauthorized insurer is an insurance company that has not applied, or has applied and been denied a Certificate of Authority and may not transact insurance.