Florida Statutes, Rules, and Regulations Common to All Lines

5: Which of the following statements is INCORRECT? A Replacing insurance policies for the purpose of making commissions is legal. B Misrepresenting the true nature or facts of a policy or its benefit in order to induce a policyholder to surrender one policy and replace it with another is illegal. C It is illegal to be involved in any activity of boycott, coercion, or intimidation that is intended to restrict fair trade or to create a monopoly. D Discrimination in rates, premiums, policy benefits, etc. for persons within the same class or with the same life expectancy is illegal.

A

estions 10: If an agent does not notify the insurer of an address change, what is the maximum penalty that can be imposed for a one-time offense? A $180 B $250 C $500 D $1,500

B

10: In accordance with the Code of Ethics, agents must provide a completed application to A The soliciting agent and the insured. B The Florida Insurance Guaranty Association and the Director. C The prospective insured and the insurer. D The Director and the insurer.

C

11: Which of the following is true regarding branch agency licensing? A The branch must secure an agency license. B There are no special licensing requirements. C Agent in charge must be licensed. D All its agents must be licensed

C

13: An agent has been convicted of a crime punishable by a 1-year imprisonment. Within how many days must the agent notify the department of insurance? A 180 days B 10 days C 30 days D 90 days

C

2: Insurance contracts are agreements between which two parties? A Attorneys for any parties involved in any contract B Producers and consumers C Insurer and policyowner D Producer and insurer

C

12: Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? A Defamation B Undercutting C Twisting D Slandering

A

3: Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility? A Offering additional coverage to insureds B Promptly forwarding premiums to the insurance company C Helping insureds to file claims D Performing reviews of insured's coverage

B

11: When an insurer appoints an agent, A The agent may not be appointed by other insurers. B That appointment is for life. C The insurer is bound by the agent's acts. D The agent must represent the insurer's clients.

C

6: Which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment? A Insurance Consumer Protectorate B Insurance Solvency Association C Consumer Protection Agency D Insurance Guaranty Association

D

1: In order to maintain an insurance license, an agent licensed for less than 6 years will need to satisfy Florida's continuing education requirement of A 10 hours every year. B 20 hours every year. C 20 hours every 2-year period. D 24 hours every 2-year period

D

4: An insurance agent B likes to add additional coverages to applicants' policies and charge them for such coverages without their knowledge. The agents is guilty of A Defamation. B Sliding. C Misrepresentation. D Rebating

B

5: Under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of A 9 months. B 12 months. C 3 months. D 6 months.

B

3: No insurance policy form can be issued, delivered, or used in this state unless it has been A Reviewed by the Office of Insurance Regulation and approved by the Governor. B Approved by the Office of Financial Regulation. C Developed by the Chief Financial Officer. D Filed with and approved by the Office of Insurance Regulation

D

14: All of following are the general qualifications for an agent's license EXCEPT A Have a high school diploma. B Be found competent and trustworthy. C Be a state resident. D Pass a criminal background check.

A

10: If an agent is in the military, which of the following is true? A The agent cannot sell policies while on active duty. B The agent cannot sell a policy to another active military person who is of a lower rank. C The agent cannot sell a policy to someone outside of the military base. D The agent cannot sell any policies during times of war or conflict.

B

10: What is reinsurance? A An agreement between an insurer and an insured B An agreement between a ceding insurer an assuming insurer C An agreement between an originating insurer and a ceding insurer D An agreement between a domestic insurer and a foreign insurer The originating company that procures insurance on itself in

B

11: Which of the following best describes a misrepresentation? A Discriminating among individuals of the same insuring class B Issuing sales material with exaggerated statements about policy benefits C Making a deceptive or untrue statement about a person engaged in the insurance business D Making a maliciously critical statement that is intended to injure another person

B

12: The Office of Insurance Regulation is responsible for all of the following insurer activities EXCEPT A Premium financing. B Issue of securities. C Viatical settlements. D Policy forms.

B

12: When transacting business in this state an insurer formed under the laws of another country is known as a/an A Admitted insurer. B Alien insurer. C Domestic insurer. D Foreign insurer

B

13: Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of A Rebating. B Twisting. C Defamation. D Misrepresentation

B

7: Which of the following would NOT be a violation of state insurance regulations? A Agent A uses her license to write only insurance for herself and her immediate family. B Agent B charges his clients a consulting fee, in addition to the premium for placing a policy. C Agent C uses her license to write only business other than controlled. D Agent D collects premiums due on policies and deposits the funds in his own personal account.

C

13: Which of the following is an example of a producer's fiduciary duty? A An obligation to state every known fact about the policy the producer is selling. B A duty to base all transactions upon the principle of Utmost Good Faith. C The obligation to tell the truth to the best of one's knowledge D The trust that a client places in the producer in regard to handling premiums

D

3: All of the following actions can be described as twisting EXCEPT A Misrepresenting the terms and conditions of the existing policy to make the new one more attractive B Embellishing the terms of the proposed policy in order to convince the insured to switch C Making an incomplete comparison between the existing and proposed policies D Explaining to client the advantages of permanent insurance over term and suggesting changing policies

D

14: If a licensee changes his or her residence address, within how many days must the department be notified? A 15 B 30 C 45 D The department only needs to be notified if an individual's business address changes.

B

15: Which of the following entities is responsible for agent licensing and administrative supervision? A The Governor's Cabinet B The Office of Insurance Regulation C The Office of Financial Regulation D The Insurance Guaranty Association

B

1: An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? A Legal, provided that the other insurers are paid royalties for the usage of their names B Illegal under any circumstances C Legal, provided that the information can be verified D Illegal until endorsed by the Guaranty Association

B

4: All of the following are true regarding rebates EXCEPT A Dividends are not considered to be rebates. B Rebates are allowed if it is in the best interest of the client. C Rebates are only allowed if specifically stated in the policy. D Rebating can be anything of monetary value given as an inducement to purchase insurance.

B

4: On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of A Rebating. B Misrepresentation. C Concealment. D Unfair claim practice

B

5: Which of the following is an example of a producer being involved in an unfair trade practice of rebating? A Making deceptive statements about a competitor B Telling a client that his first premium will be waived if he purchases the insurance policy today C Inducing the insured to drop a policy in favor of another one when it is not in the insured's best interest D Charging a client a higher premium for the same policy as another client in the same insuring class

B

8: Which of the following would NOT be a violation of state insurance regulations? A Agent A uses her license to write only insurance for herself and her immediate family. B Agent B charges his clients a consulting fee, in addition to the premium for placing a policy. C Agent C uses her license to write only business other than controlled. D Agent D collects premiums due on policies and deposits the funds in his own personal account.

C