Florida Laws and regulations Pertinent to Insurance
Agents may be found guilty of defamation if they make a false statement that is intended to
Malign another insurance company
Under the Unfair Trade Practice law, agents may be found guilty of defamation id they make a false statement that is intended to
Malign another insurance company
A licensee may NOT transact insurance business in Florida until which of the following occurs?
The licensee is appointed by an insurer
When recommending a purchase or exchange of an annuity, the agent or insurer must have a reasonable basis for believing that a recommendation is suitable based on all of following facts disclosed by an applicant EXCEPT the applicant's
County of residence
The Department of Financial Services may conduct a hearing when a person is suspected of
Engaging in the business of insurance without a license
An insurance company may be judged guilty of advertising if it
Exaggerates its dividends in a newspaper advertisment
When may the Financial Services Commission hold hearings?
For any purpose within the scope of the insurance code deemed necessary
Which of the following is an example of rebating?
Returning a portion of a premium as inducement to purchase insurance
Which of the following is an unfair claims practice?
Failing to effectuate prompt, fair, and equitable settlements of claims
Which of the following is an example of defamation?
A brochure including an untrue statement regarding a competitor's ability to pay claims
If an agent tells an applicant that an insurance policy is like a share stock, the agent may be guilty of
Misrepresentation
An agent is an individual who has been authorized by an insurer to be its representative and to perform all of the following acts EXCEPT
authorize payment of certain claims
Anyone who makes a fraudulent statement on an insurance application in order to obtain money benefits from an insurance company has committed and act of
misrepresentation
Which of the following terms defines the authority given to an agent to transact business on behalf of the insurer?
Appointment
An agent who tells claimants that their rights may be impaired if they fail to complete a release form within a given period of time could be guilty of
Coercion
An agent must handle funds of a client or insurance company honestly and fairly and NOT use them for agent's own purposes. This is called
Fiduciary reponsibility
Policyholders elect the governing bodies of which of the following types of insurance companies?
Mutual
Which of the following actions by an insurance company or an agent is considered rebating?
Offering a prospect something of value that is not specified in a contract to induce the purchase of that contract
The primary purpose of regulation of the insurance industry is to
Promote the public welfare by maintaining the solvency of insurance companies
Within how many days must a licensee notify the Department of Financial Services (DFS) of an address change?
30
The Department of Financial Services may deny an application for license to which of the following reasons?
The Department has reasonable cause to believe that the applicant will write only controlled business
Knowing making misleading statements that would cause an insured to lapse, assign, or terminate an insurance policy in order to switch companies is an example of
Twisting
Rebating is allowed in Florida if the agent rebates insureds
In the same actuarial class
Can an agent-in-charge have more than one location?
Yes, as long as the agent-in-charge is present when insurance activity occurs
The Florida Life and Health Insurance Guaranty Association was established to provide funds
to protect an insured in the event of an insurer's insolvency
