Unit 26 - Florida Laws and Rules Pertinent to Life and Health Insurance

Which of the following statements is CORRECT about the Department of Financial Services' right to examine an agent's records? A. An examination can be conducted at any time to discover any unfair trade practices. B. An agent's records involving a premium transaction are confidential and not subject to examination. C. The Chief Financial Officer may examine an agent's records only once per year, unless good cause is shown. D. The statutes do not give the Department the right to examine the affairs of insurance licensees to discover unfair trade practices.

A. An examination can be conducted at any time to discover any unfair trade practices.

What is the professional organization whose code of ethics has been incorporated into Florida insurance law? A. National Association of Insurance and Financial Advisors (NAIA) B. National Association of Life Underwriters (NALU) C. Association of Chartered Life Underwriters (ACLU) D. National Association of Insurance Commissioners (NAIC)

A. National Association of Insurance and Financial Advisors (NAIA)

The major areas of regulation by the Office of Insurance Regulation include which of the following? A. Policing against unauthorized insurance activities B. Proposing legislation to regulate the insurance industry C. Enacting new insurance laws D. Enforcing criminal penalties against those who violate the Insurance Code

A. Policing against unauthorized insurance activities

Of the following terms, which best describes the act of replacing life insurance with a new life insurance policy based upon incomplete or incorrect representations? A. Twisting B. Rebating C. Embezzlement D. Concealment

A. Twisting

Violation of the controlled business statute occurs if an agent sells most of her business to A. employees of a business owned by her father B. members of her civic club C. city and county employees D. members of the local medical society

A. employees of a business owned by her father

20. If an agent changes her residence address, she must notify the Department of Financial Services within A. 15 days B. 30 days C. 60 days D. A change of address does not require notification

B. 30 days

The prelicensing education requirement for a life insurance agent's license is A. 30 hours B. 40 hours C. 20 hours D. 24 hours

B. 40 hours

How soon after an administrative action is taken against a licensee by any governmental or regulatory agency regarding fraud, dishonesty, or untrustworthiness, must the licensee submit copies of the report to the Department? A. Within 90 days B. Within 30 days C. Within 60 days D. Within 45 days

B. Within 30 days

To be licensed in Florida as a resident producer, all of the following must be completed EXCEPT A. a criminal background check B. paying an application fee that is refundable C. the prelicensing education requirements D. providing any other information required by the state

B. paying an application fee that is refundable

All of the following activities could result in the suspension of an agent's license EXCEPT A. misrepresenting the financial condition of an insurer B. selling any replacement policy that causes an insured to lapse an existing policy C. attaining a license for the sole purpose of handling controlled business D. demonstrating incompetency to transact business as an insurance agent

B. selling any replacement policy that causes an insured to lapse an existing policy

The individual who sits on the Financial services Commission and supervises the insurance function in Florida is called the A. Chief Insurance Commissioner B. Attorney General C. Chief Financial Officer D. Director of Financial Regulation

C. Chief Financial Officer

Which of the following activities is NOT a violation of the Insurance Code? A. Charging a fee that is more than the premium stated in the policy B. Collecting premiums and depositing them in the agent's personal account C. Writing as much non-controlled insurance business as controlled business D. Offering a premium rebate if the insured contracts for other insurance business

C. Writing as much non-controlled insurance business as controlled business

The major difference between producers acting as agents and producers acting as brokers is that A. agents represent the client; brokers represent the company B. brokers are not subject to the same laws and regulations as agents C. agents represent the company; brokers represent the client D. only agents can solicit prospects for the purpose of selling insurance

C. agents represent the company; brokers represent the client

Felony convictions on an applicant to be licensed as an agent may A. cause the licensing fee to be increased B. require the applicant to sign a nolo contendere plea C. cause the license application to be refused D. be disregarded if the applicant has a licensed sponsor approved by the state of Florida

C. cause the license application to be refused

All of the following activities violate the Florida insurance code EXCEPT A. dividing commission on a life insurance policy with any licensed agent B. dividing commission on a life insurance policy with a licensed health agent C. dividing commission on a life insurance policy with another agent who is licensed and appointed to sell the same line of insurance D. dividing commission on a life insurance policy with a licensed insurance broker who regularly transacts life insurance

C. dividing commission on a life insurance policy with another agent who is licensed and appointed to sell the same line of insurance

The state Life and Health Guaranty Association covers all of the following insurance contracts EXCEPT A. annuity contracts B. health insurance contracts C. insurance contracts issued by fraternal benefit societies D. Medicare supplement contracts

C. insurance contracts issued by fraternal benefit societies

The definition of transacting insurance includes all of the following EXCEPT A. soliciting a contract of insurance B. negotiating a contract of insurance C. underwriting a contract of insurance D. effectuating a contract of insurance

C. underwriting a contract of insurance

Producers must retain records of insurance transactions pertaining to premium payments for at least A. 10 years B. 2 years C. 5 years D. 3 years

D. 3 years

Keeping premium money separate from personal accounts is a A. reinsurance regulation B. replacement regulation C. duty of the insurer D. fiduciary responsibility of the agent

D. fiduciary responsibility of the agent

Sliding consists of all the following activities EXCEPT A. telling an applicant that certain ancillary coverage is required by law when it is not B. advising a client that certain ancillary coverage is included at no additional charge when such a charge is required C. charging an applicant for ancillary coverage over the cost of coverage applied for without the applicant's consent D. recommending that a client take cash value from a policy to make other investments

D. recommending that a client take cash value from a policy to make other investments