Unit Ten - Miscellaneous Florida Statutes
A _______ insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States other than this state.
A FOREIGN insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States other than this state..
A General Lines Agent can have their licensed terminated if they have _______________ misrepresented themselves in their licensing application.
A General Lines Agent can have their licensed terminated if the materially misrepresented themselves in their licensing application.
A General Lines Agent can have their licensed terminated if they demonstrate a lack of _______________________ in the insurance business dealings.
A General Lines Agent can have their licensed terminated if they demonstrate a lack of trustworthiness in the insurance business dealings.
Toe Nail roof connectors ______ ______ eligible for mitigation credits.
Toe Nail roof connectors are not eligible for mitigation credits.
_________________ insurance includes solicitation, inducement, and or negotiations.
Transacting insurance includes solicitation, inducement, and or negotiations.
Transacting insurance includes solicitation or inducement; negotiations; and any effectuation of a __________ of insurance.
Transacting insurance includes: solicitation or inducement; negotiations; OR effectuation of a contract of insurance.
True or False? A component of ethics is having the technical knowledge to facilitate transactions on behalf of the insuring public.
True. A component of ethics is having the technical knowledge to facilitate transactions on behalf of the insuring public.
The sale or replacement of a policy or policies to generate commissions to the insurer or its agent; and does not benefit the insured.
Churning is considered unfair and deceptive; involves the sale or replacement of a policy or policies to generate commissions to the insurer or its agent; and does not benefit the insured.
Roof connectors eligible for mitigation credits.
Clips and Straps
Construction elements must be documented by a _______________construction professional for wind mitigation credits to apply.
Construction elements must be documented by a licensed construction professional for wind mitigation credits to apply.
It would be unethical for an applicant for an insurance license to obtain a license solely to write which type of business?
Controlled Business
The dissemination of information which is false AND dissemination of information which is calculated to injure a third party.
Defamation
Defamation includes libel and slander; dissemination information which is false; and dissemination of information which is calculated to _________ a third party.
Defamation includes libel and slander; dissemination information which is false; and dissemination of information which is calculated to injure a third party.
FIGA assessments are capped at ___% of a company's net direct premium and an additional ___% for emergency assessments for hurricanes.
FIGA assessments are capped at 2% of a company's net direct premium and an additional 2% for emergency assessments for hurricanes.
FIGA is a statutorily created association that pays certain outstanding claims of __________ insurance companies.
FIGA is a statutorily created association that pays certain outstanding claims of INVOLVENT insurance companies.
What does FIGA stand for?
FIGA stands for Florida Insurance Guaranty Association.
True or False? Fraud only applies to the filing of insurance claims.
False
True or False? You as a general agent may hire and license a customer representative who shall be a salaried employee. You may pay the customer representative commissions primarily based on the production of applications, insurance, or premiums.
False
True of False? A "domestic" insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States other than this state.
False. A "domestic" insurer is one formed under the laws of Florida.
True or False? A "foreign" insurer is one formed under the laws of the state the agent resides in.
False. A "foreign" insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States other than Florida.
True or False? A Customer Representative does not need to clarify to the insuring public whether or not he or she is a General Lines Agent or a Customer Representative.
False. A Customer Representative has a responsibility to clarify to the insuring public whether or not he or she is a General Lines Agent or a Customer Representative.
True or False? You may require a customer representative to engage in the transacting of insurance outside of your office.
False. A customer representative MAY NOT engage in the transacting of insurance outside of the office or organizational setting.
True or False? There are times a sales agent may need to use coercion to "move" the sales process along; this is referred to as a hard selling.
False. Coercion should never, never, never be used in the sales process.
True of False? It is ethical to engage in unfair competition; unfair or deceptive acts; or unfair practices as long as it results in a sale.
False. False. False.
True or False? Florida law does not address Unfair Trade Practices or Acts.
False. Florida law DOES address Unfair Trade Practices or Acts.
True or False? Florida law requires General Lines Agents to be licensed but not agencies.
False. Florida law requires General Lines Agents and agencies to be licensed.
True or False? Florida statute encourage rebating and no conditions apply.
False. Florida statutes prohibit rebating without conditions.
True or False? Residential property insurers may file loss mitigation credits with the OIR at the insurers discretion.
False. Residential property insurers must file loss mitigation credits with the OIR.
True or False? Residential property insurers may file loss mitigation credits with the OIR at the insurers discretion.
False. The OIR requires all insurance companies to file Wind Mitigation credits.
True of False? Twisting is permitted by law but Sliding is considered an unfair practice.
False. Twisting and Sliding are unlawful and not considered fair practices.
Florida statutes preclude ________ competition; ______ or deceptive acts; and _______ practices.
Florida statutes preclude unfair competition; unfair or deceptive acts; and unfair practices.
Roof shape with roof lines continuously on all sides of the building and are eligible for discounts.
Hip Roof
___________ is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.
INSURANCE is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.
MEWAs are considered insurers by _____________ ______________.
MEWAs are considered insurers by Florida Statute.
According to F.S. 626.731(1)(a) an applicant must be ___ years old to be eligible for a General Lines insurance license.
18 years old
A _______ insurer is one formed under the laws of the state the agent resides in.
A DOMESTIC insurer is one formed under the laws of the state the agent resides in.
A General Lines Agent licensed 6 or more years is required to obtain ___ hours of continuing education every two years.
A General Lines Agent licensed 6 or more years is required to obtain 20 hours of continuing education every two years.
A General Lines Agent licensed LESS THAN 6 YEARS is required to obtain ___ hours of continuing education every two years.
A General Lines Agent licensed LESS THAN 6 YEARS is required to obtain 24 hours of continuing education every two years.
A Mutual Company becomes a Stock Company through this process.
A Mutual Company becomes a Stock Company through the process of DEMUTUALIZATION.
Which of the following is NOT a "type" of a General Lines License? (a) Personal Lines Agent. (b) Limited Customer Service Representative. (c) Title Agent. (d) Customer Representative.
A Title Agent is not a type of General Lines License.
A licensed customer representative may take insurance applications and ______ insurance coverages.
A licensed customer representative may take insurance applications and bind insurance coverages.
A reciprocal exchange is legally controlled by.
A reciprocal exchange is legally controlled by an Attorney-in Fact.
According to Florida Statute 624.09 an "_____________" insurer is one which does not have a certificate of authority issued by the department to transact insurance in this state.
According to Florida Statute 624.09 an "UNAUTHORIZED" insurer is one which does not have a certificate of authority issued by the department to transact insurance in this state.
You have just learned that a new insurance company in Florida has a certificate of authority issued by the department to transact insurance in this state. This new company is an _________ company.
An "authorized" insurer is one duly authorized by a subsisting certificate of authority issued by the department to transact insurance in Florida.
An _______ insurer is an insurer other than a domestic or foreign insurer.
An ALIEN insurer is an insurer other than a domestic or foreign insurer.
An _______ includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuity.
An INSURER includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuity.
An insurance company owned by its stockholders.
An insurance company owned by stockholders is a STOCK INSURANCE COMPANY.
An insurance company owned by stockholders is a Stock Insurance Company.
An insurance company owned by stockholders is a Stock Insurance Company.
A non licensed member of your office staff entered preliminary negotiations with a potential insured for an insurance policy is this considered "transacting insurance"? (a) Yes, because any preliminary negotiations of an insurance policy is considered "transacting insurance". (b) No, it is only considered "transacting insurance" if the person were to purchase the policy.
Any preliminary negotiations of an insurance policy is considered "transacting insurance".
ERISA has a "_______ clause" which sets apart for the states all rights not reserved under ERISA.
ERISA has a "SAVINGS CLAUSE" which sets apart for the states all rights not reserved under ERISA.
Every General Lines Agent transacting any insurance policy must maintain in his or her office, or have readily accessible by electronic or photographic means, such _____________of policies transacted by him or her.
Every General Lines Agent transacting any insurance policy must maintain in his or her office, or have readily accessible by electronic or photographic means, such records of policies transacted by him or her.
Insurance is a contract whereby one undertakes to _________ another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.
Insurance is a contract whereby one undertakes to INDEMNIFY another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.
Mitigation credits are available for roof coverings if the roof is installed per the _____ Florida Building Code.
Mitigation credits are available for roof coverings if the roof is installed per the 2001 Florida Building Code.
ERISA's language states that the federally mandated ERISA laws supersedes state laws, this is known as?
Preemption
Roof Decks attached with 6d common nails at six inch intervals along the panel edges and 12 inch intervals in the field _____ _____ eligible for mitigation credits.
Roof Decks attached with 6d common nails at six inch intervals along the panel edges and 12 inch intervals in the field ARE NOT eligible for mitigation credits.
Roof Decks attached with 8d common nails at six inch intervals along the panel edges and 12 inch intervals in the field: (a) Are eligible for mitigation credits. (b) Not eligible for mitigation credits.
Roof Decks attached with 8d common nails at six inch intervals along the panel edges and 12 inch intervals in the field ARE eligible for mitigation credits.
Roof Decks attached with 8d common nails at six inch intervals along the panel edges and six inch intervals in the field ______ eligible for mitigation credits.
Roof Decks attached with 8d common nails at six inch intervals along the panel edges and six inch intervals in the field ARE ELIGIBLE eligible for mitigation credits.
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.
Sliding
_______________ is charging an applicant for a specific add-on coverage or product without the applicant's informed consent
Sliding is charging an applicant for a specific add-on coverage or product without the applicant's informed consent
The Customer Representative is ELIGIBLE to receive ______________ as compensation if the performance based compensation is not greater than half of the total compensation.
The Customer Representative is ELIGIBLE to receive commission as compensation if the performance based compensation (commission) is not greater than half of the total compensation.
A General Lines Agent has how many days to notify the Department of Financial Services of name and address changes?
The Department of Financial Services requires notice of any name or address change within 30 days of the change.
The General Lines Agent license requires the agent to be domiciled in the state of _______________.
The General Lines Agent license requires the agent to be domiciled in the state of Florida.
The consequences for acting as an insurer without proper licensure include a third degree felony; ___________ for any unpaid claims; and suspension or revocation of all insurance licenses.
The consequences for acting as an insurer without proper licensure include a third degree felony; LIABILITY for any unpaid claims; and suspension or revocation of all insurance licenses.
The consequences for aiding and abetting an unauthorized insurer include a ________ degree felony and liability of unpaid claims.
The consequences for aiding and abetting an unauthorized insurer include a third degree felony and liability of unpaid claims.
FIGA claims are subject to a $____ deductible.
The correct answer is $100. All FIGA claims are subject to a $100 deductible.
The difference between a Stock Insurance Company and a Mutual Insurance Company.
The difference between a Stock Insurance Company and a Mutual Insurance Company is ownership and control.
The following are required to be on an application of insurance: insurer name, agent name, and agent _____________ number.
The following are required to be on an application of insurance: insurer name, agent name, and agent license number.
The following may result in either a suspension, termination, or license revocation: failure to account for funds held in ________ for an insurer or insured.
The following may result in either a suspension, termination, or license revocation: failure to account for funds held in trust for an insurer or insured.
The maximum amount FIGA will cover a Dwelling claim for is $__________.
The maximum amount FIGA will cover a Dwelling claim for is $300,000.
The maximum amount FIGA will cover a claim for is $300,000. If there has been damage to a covered structure and contents on a homeowner's claim then FIGA will pay an additional $______.
The maximum amount FIGA will cover a claim for is $300,000. If there has been damage to a covered structure and contents on a homeowner's claim then FIGA will pay an additional $200,000 for damage to the contents.
The most common roof decking material.
The most common roof decking material is plywood.
True or False? A customer representative may only perform customer representative duties as to the specific general lines insurance products which their supervising, General Lines Agent, is actually then appointed by an insurer to handle.
True. A customer representative may only perform customer representative duties as to the specific general lines insurance products which their supervising, General Lines Agent, is actually then appointed by an insurer to handle.
True of False? A loan officer may not solicit or sell insurance in connection with a loan but she may refer the loan customer to another insurance agent who is not involved in the application, solicitation, or closing of the same loan transaction.
True. A loan officer may not solicit or sell insurance in connection with a loan but she may refer the loan customer to another insurance agent who is not involved in the application, solicitation, or closing of the same loan transaction.
True or False? According to Florida Statute 624.09 an "authorized" insurer is one with an authorized certificate of authority issued by the department to transact insurance in this state.
True. According to Florida Statute 624.09 an "authorized" insurer is one with an authorized certificate of authority issued by the department to transact insurance in this state.
True of False? Any person offering the sale of insurance at the time of and in connection with an application or extension of credit must disclose so in writing.
True. Any person offering the sale of insurance at the time of and in connection with an application or extension of credit must disclose so in writing.
True or False? Ethics is the study of moral behavior and is the cornerstone of professionalism in the insurance industry.
True. Ethics is the study of moral behavior and is the cornerstone of professionalism in the insurance industry.
True or False? Florida Statutes prohibit PEOs from sponsoring self-insured health plans.
True. Florida Statutes prohibit PEOs from sponsoring self-insured health plans.
True or False? Florida law requires General Lines Agents to be licensed.
True. Florida law requires General Lines Agents to be licensed.
True or False? Florida statute prohibits rebating except as otherwise expressly provided by law, or in an applicable filing with the office of insurance.
True. Florida statute prohibits rebating except as otherwise expressly provided by law, or in an applicable filing with the office of insurance.
True or False? Willfully over insuring a health or property policy can be grounds for terminating an insurance license.
True. Willfully over insuring a health or property policy can be grounds for terminating an insurance license.
An agent has knowingly made some misleading representations to sell an insurance policy.
Twisting is knowingly making any misleading representations as an inducement.
Unauthorized entities present a regulatory concern because they have the potential for __________ claims.
Unauthorized entities present a regulatory concern because they have the potential for unpaid claims.
Unfair Claim Settlement Practices include: _________ to adopt and implement standards for the proper investigation of claims; and _________ to acknowledge and act promptly upon communications with respect to claims.
Unfair Claim Settlement Practices include: failing to adopt and implement standards for the proper investigation of claims; and failing to acknowledge and act promptly upon communications with respect to claims.
Knowingly making or permitting any unfair discrimination between individuals of the same actuarially supportable class.
Unfair Discrimination
Unfair claim settlement practices include failing to adopt and implement standards for the proper investigation of _________.
Unfair claim settlement practices include failing to adopt and implement standards for the proper investigation of claims.
Unfair claim settlement practices include failing to promptly provide a reasonable explanation in writing as to the reasons for the _______ of a claim.
Unfair claim settlement practices include failing to promptly provide a reasonable explanation in writing as to the reasons for the DENIAL of a claim.
Unfair methods of competition include using an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, __________________, or misleading.
Unfair methods of competition include using an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, deceptive, or misleading.
Wind Mitigation protection for "openings" must pass this test.
Wind Mitigation protection for "openings" must pass the "Large Missile Test".