Chap 17
An ordinary class insurer writes life insurance on the legal reserve plan, for amounts of: Select one: a. $500 or more b. $1,000 or more c. $2,000 or more d. $10,000 or more
b. $1,000 or more
What is the maximum fine for failure to comply with a subpoena? Select one: a. $500 per violation b. $1,000 per violation c. $2,000 per violation d. $5,000 per violation
b. $1,000 per violation
What is the maximum liability of the Florida Life and Health Guaranty Association for death benefits or health insurance claims? Select one: a. $100,000 b. $300,000 c. $500,000 d. $1,000,000
b. $300,000
What is the biennial license fee for an insurance agent in Florida? Select one: a. $50 b. $60 c. $100 d. $125
b. $60
In Florida, how much time does an insured have to return a health insurance policy for a full refund? Select one: a. 7 days b. 10 days c. 14 days d. 30 days
b. 10 days **health insurance is 10 days***
In Florida, how much time is the "free look" period on a life insurance policy? Select one: a. 10 days b. 14 days c. 30 days d. 31 days
b. 14 days
Life insurance purchased from a fraternal is considered: Select one: a. A policy b. A certificate of membership c. An independent fraternal contract d. All of the above
b. A certificate of membership
All of the following are excluded from health insurance contracts, EXCEPT: Select one: a. Military service b. Osteoporosis c. Act of war d. Intentional self-inflicted injuries
b. Osteoporosis
How frequently must domestic insurers be examined by the Office of Insurance Regulation? Select one: a. Annually b. At least once every other year c. At least once every 5 years d. Upon the Office's discretion
c. At least once every 5 years
How often must the CFO do an examination of a domestic insurer? Select one: a. At least once every 2 years b. At least once every 3 years c. At least once every 5 years d. There is no minimum time for an examination
c. At least once every 5 years
Who administers Florida insurance laws? Select one: a. The Chief Financial Officer (CFO) b. The Commissioner of the Office of Insurance Regulation c. The Financial Services Commission d. All of the above
d. All of the above
Who of the following is on the Financial Services Commission? Select one: a. The Florida Commissioner of Agriculture b. The Florida Attorney General c. The Governor of Florida d. All of the above
d. All of the above
In Florida, group life insurance contracts must cover at least: Select one: a. 1 person b. 2 people c. 10 people d. 25 people
a. 1 person
After an HMO receives a claim, how much time does it have to pay the claim? Select one: a. 20 days b. 30 days c. 31 days d. 45 days
a. 20 days
According to Florida law, which of the following is considered a "family member"? Select one: a. Father, mother, sister, brother b. Uncle, aunt, first cousin c. Brother-in-law, sister-in-law d. All of the above
d. All of the above
All of the following practices must be used by agents selling annuities to senior citizens, EXCEPT: Select one: a. Cold lead advertising b. Suitability standards are utilized c. The agent must make reasonable efforts to obtain information regarding the client's tax and financial status to assure that the purchase is in the client's best interest d. The agent must have reasonable grounds to believe that the sale of an annuity is in the client's best interest
. Cold lead advertising
What is the maximum policy loan interest rate for life insurance policies in Florida? Select one: a. 5% b. 8% c. 10% d. 12%
10%
How much time must a terminated individual have been in a group health maintenance contract before they can convert to an individual health maintenance contract? Select one: a. 3 months b. 6 months c. 9 months d. 12 months
a. 3 months
How frequently must HMOs file a financial report with the Office of Insurance Regulation? Select one: a. Annually b. Every 2 years c. Every 3 years d. Every 5 years
a. Annually
All of the following are unfair trade practices, EXCEPT: Select one: a. Coverage continuation b. Twisting c. False advertising d. False statements
a. Coverage continuation
Which of the following is NOT a true statement about breast cancer coverage in a health insurance policy? Select one: a. Coverage for breast cancer can be cancelled after symptoms are discovered. b. Renewal of a health insurance policy cannot be denied based on the insured having been diagnosed with a fibrocystic condition due to breast cancer. c. Issuance of a health insurance policy cannot be denied based on the insured having been diagnosed with a fibrocystic condition due to breast cancer. d. Coverage can be denied based on a breast biopsy that demonstrates an increased disposition to developing breast cancer.
a. Coverage for breast cancer can be cancelled after symptoms are discovered.
Which of the following is NOT true of a prepaid health clinic? Select one: a. Prepaid health clinics must use the term HMO. b. Prepaid health clinics only provide basic services. c. Less financial capital is required than in an HMO with multiple locations. d. Prepaid health clinics can perform emergency care.
a. Prepaid health clinics must use the term HMO.
What does a universal life insurance policy allow a policy holder to do? Select one: a. Purchase term life insurance and invest the remaining premium b. Purchase life insurance for several beneficiaries c. Invest the entire premium d. Purchase tax-free life insurance
a. Purchase term life insurance and invest the remaining premium
All of the following are intents of the Health Maintenance Organization Act by Florida law, EXCEPT: Select one: a. Replace existing health care plans b. Delivery of high-quality health care c. Explore alternative methods of delivering health care services d. Eliminate barriers to the organization of prepaid health care plans
a. Replace existing health care plans
Which of the following does not have to be included in the outline of coverage? Select one: a. The fees and costs of the policy b. A statement of the renewal and cancellation provisions c. The principal exclusions contained in the policy d. The principal benefits contained in the policy
a. The fees and costs of the policy
How soon must agents notify the department of a change in address? Select one: a. Within 30 days of the change b. Within 45 days of the change c. Within 60 days of the change d. Within 90 days of the change
a. Within 30 days of the change
The time limit on certain defenses for health insurance policies in Florida is: Select one: a. 1 year from the date of policy issue b. 2 years from the date of policy issue c. 5 years from the date of policy issue d. 10 years from the date of policy issue
b. 2 years from the date of policy issue
In Florida, how many continuing education hours relating to variable annuities must agents complete? Select one: a. 2 hours b. 3 hours c. 4 hours d. 5 hours
b. 3 hours
What is the information considered that is shown during the negotiations for an insurance contract? Select one: a. A contract b. A representation c. A warranty d. An advertisement
b. A representation
Which of the following best defines the term "subscriber"? Select one: a. Any medical provider licensed to provide health care services in Florida b. An entity or individual who has contracted with an HMO for health care coverage c. An authorized organization or person that furnishes health care services d. None of the above
b. An entity or individual who has contracted with an HMO for health care coverage
In Florida, who pays the biennial agent appointment renewal fee? Select one: a. Agents b. Insurers c. Office of Insurance Regulation d. None of the above
b. Insurers
Authorized insurers must submit an annual statement to the Office of Insurance Regulation by: Select one: a. January 1st, annually b. March 1st, annually c. March 31st, annually d. December 31st, annually
b. March 1st, annually
Which of the following best defines the term "capitation"? Select one: a. The fixed amount paid by health care providers to an HMO b. The fixed amount paid by an HMO to a health care provider c. The fixed amount paid by subscribers to an HMO d. The fixed amount paid by subscribers to health care providers
b. The fixed amount paid by an HMO to a health care provider
What happens when an individual enrolled in Medicare signs up for coverage under an HMO? Select one: a. The individual will be covered under both Medicare and the HMO. b. The individual will be disenrolled from Medicare. c. Coverage under the HMO will be automatically declined. d. Both coverages will be declined.
b. The individual will be disenrolled from Medicare.
A health maintenance contract must be delivered by the first of the effective date of coverage or within how many working days from approval of the enrollment form? Select one: a. 5 business days b. 7 business days c. 10 business days d. 15 business days
c. 10 business days
How many days after the grace period has expired, may a person pay past due premium for life insurance policies insuring individuals age 64 and older? Select one: a. 10 days b. 14 days c. 21 days d. 31 days
c. 21 days
Agents who have been licensed for less than 6 years must complete how many continuing education hours every 2 years? Select one: a. 10 hours b. 20 hours c. 24 hours d. 32 hours
c. 24 hours
How long must an insurer keep a copy of every document authorized by the insurer? Select one: a. 1 year b. 2 years c. 3 years d. 5 years
c. 3 years
How much time does an individual have to convert to a new policy after the termination of their group policy? Select one: a. 28 days b. 30 days c. 31 days d. 60 days
c. 31 days
How long may a licensed nonresident of Florida transact insurance before they must have a resident license? Select one: a. 30 days b. 60 days c. 90 days d. 180 days
c. 90 days
What makes variable life insurance variable? Select one: a. The premiums can vary, usually increasing over the life of the policy. b. Benefits vary based on the time the policy has been in force. c. Benefits vary based on the assets held in a separate account. d. The premiums can vary, usually decreasing over the life of the policy.
c. Benefits vary based on the assets held in a separate account.
Who may solicit applications for coverage under an HMO? Select one: a. Health maintenance broker b. Health broker c. Health agent d. Excess and surplus lines broker
c. Health agent
Which of the following services is not provided by a prepaid health clinic? Select one: a. Ambulatory diagnostic treatment b. Emergency care c. Hospital inpatient physician services d. Preventive health care
c. Hospital inpatient physician services
Which of the following are typically NOT covered in health insurance policies? Select one: a. Intentional self-inflicted injuries b. Cosmetic surgery c. Mental disorders d. All of the above
c. Mental disorders d. All of the above
What class of insurers are variable annuity insurers? Select one: a. Variable class b. Ordinary class c. Ordinary-variable contract class d. Ordinary-variable class
c. Ordinary-variable contract class
When would the Buyer's Guide normally be provided to an applicant? Select one: a. When the application is completed b. At the start of the initial meeting c. Prior to accepting the applicant's initial premium d. When the policy is delivered
c. Prior to accepting the applicant's initial premium
Which of the following best describes the function of the Consumer Assistance Plan? Select one: a. Provides coverage to individuals otherwise uninsurable due to preexisting conditions b. Provides coverage to children from low-income families c. Provides coverage to subscribers of insolvent HMOs d. None of the above
c. Provides coverage to subscribers of insolvent HMOs
What makes a policy a "nonparticipating" policy? Select one: a. Members of a group policy do not pay premiums. b. Members of a group policy have no voice in the terms of the policy. c. The policy does not pay dividends. d. A third party bought the policy for the policy holder.
c. The policy does not pay dividends.
Which of the following best defines the term "copayment"? Select one: a. The fixed amount paid by an HMO to a health care provider upon receipt of care b. The specific dollar amount paid by HMOs to subscribers upon receipt of care c. The specific dollar amount paid by subscribers to health care providers upon receipt of care d. None of the above
c. The specific dollar amount paid by subscribers to health care providers upon receipt of care
What is the latest that the outline of coverage can be delivered? Select one: a. At least 24 hours before the initial meeting b. At the time of application c. When the policy is delivered d. When the policy is completed
c. When the policy is delivered
Individual and group health policies must provide coverage for newborn children from the moment of birth for at least: Select one: a. 1 month b. 3 months c. 9 months d. 18 months
d. 18 months
How much time must an association have been in existence to be eligible to purchase a group life insurance policy? Select one: a. 3 months b. 6 months c. 1 year d. 2 years
d. 2 years
Pre-existing conditions may be excluded for a maximum of: Select one: a. 6 months b. 12 months c. 18 months d. 24 months
d. 24 months
Florida's definition of a dependent is: a child of the insured up to the age of: Select one: a. 19 b. 21 c. 24 d. 25
d. 25
What is the criminal classification for submitting fraudulent signatures on any insurance related document? Select one: a. A third-degree misdemeanor b. A first-degree felony c. A second-degree felony d. A third-degree felony
d. A third-degree felony
A person insured under a group life insurance policy may make an assignment of which of the following? Select one: a. Conversion b. Beneficiary c. Policy proceeds d. All of the above
d. All of the above
Agents selling variable products must: Select one: a. Have a securities license b. Have a life and variable annuity insurance license c. Be appointed with at least one insurance company d. All of the above
d. All of the above
HMOs are characterized by: Select one: a. Early disease detection b. Preventive care c. Greater efficiency of health care delivery d. All of the above
d. All of the above
Health insurance policies sold in Florida must cover which of the following for the treatment of diabetes? Select one: a. Blood glucose monitor and test strips b. Outpatient training courses for diabetes self-management c. Outpatient education services for treating diabetes d. All of the above
d. All of the above
In Florida, before an insurer can sell to a senior they must: Select one: a. Obtain information concerning the senior consumer's investment objectives b. Obtain information concerning the senior consumer's financial status c. Obtain information concerning the senior consumer's tax status d. All of the above
d. All of the above
In Florida, osteoporosis coverage must be in included in every health insurance policy, EXCEPT: Select one: a. Medicare supplement b. Hospital-indemnity c. Long-term-care d. All of the above
d. All of the above
Which of the following is an unfair trade practice? Select one: a. Defamation b. Twisting c. Operation without a certificate of authority d. All of the above
d. All of the above
Which of the following must appear on the first page of an application for an annuity? Select one: a. The name of the insuring entity b. The name of the agent c. The agent's license number d. All of the above
d. All of the above
Who is allowed to receive a Buyer's Guide? Select one: a. Any prospective buyer b. Someone who met with an agent, but did not buy a policy c. Someone who bought a policy d. Any of the above
d. Any of the above
Which of the following best describes the enrollment requirements for HMOs providing group coverage in Florida? Select one: a. Annually b. Twice a year c. At least once every 12 months for a period of 30 days d. At least once every 18 months for a period of 30 days
d. At least once every 18 months for a period of 30 days
Which of the following is best described as using life insurance policy cash values to purchase a new life insurance policy in a deceptive and misleading manner? Select one: a. Twisting b. Misrepresentation c. Defamation d. Churning
d. Churning Churning is the fraudulent and misleading replacement of life insurance policies with the same insurer. Churning is an unfair and deceptive practice.
Which entity regulates retirement plans in Florida? Select one: a. Florida Office of Insurance Regulation b. Florida Department of Seniors and Aging c. Florida Department of Financial Services d. ERISA
d. ERISA
Which of the following is NOT included in "comprehensive health care services" as defined by Florida? Select one: a. Clinical pathology laboratory services b. Home health services c. Health education d. None of the above
d. None of the above
Which of the following would not be covered by a health insurance policy providing coverage for mastectomies and breast cancer treatment? Select one: a. Prosthetic devises b. Breast reconstructive surgery incident to the mastectomy c. Inpatient hospital coverage for mastectomies d. None of the above
d. None of the above
When must a prospectus for a variable annuity be given to a client? Select one: a. When the agent meets with a prospective client b. With the contract c. When a client first inquires about the annuity d. Prior to purchase
d. Prior to purchase
If an agent states that there is no charge for a certain coverage when there is, this would be: Select one: a. Twisting b. Churning c. Coercion d. Sliding
d. Sliding Sliding includes representing to an applicant that a specific ancillary coverage or product is included in the policy applied for without an additional charge when such charge is required.
What insurers in Florida must have a certificate of authority? Select one: a. Reinsurers b. Excess and surplus lines insurers c. Certain captive insurers d. Stock Insurers
d. Stock Insurers
Which of the following is NOT a reason for an insured's contract to be cancelled? Select one: a. The insured failing to pay premiums b. The insured performing an act or practice that constitutes fraud c. The insurer ceasing to offer a particular type of coverage in a market d. The insured having a family history of breast cancer
d. The insured having a family history of breast cancer
What is the charge for an act of twisting or churning? Select one: a. First degree misdemeanor b. Second degree misdemeanor c. First degree felony d. Second degree felony
a. First degree misdemeanor
Whose approval is required in order for agents to do advertisements? Select one: a. Their insurer b. Any company for which they are selling advertising or furnishing financing c. The Commissioner of the Office of Insurance Regulation d. All of the above
a. Their insurer
When is life insurance replacement considered twisting? Select one: a. When an agent makes inaccurate representations b. When the insured loses money in the transaction c. When the new policy is with a different company d. All of the above
a. When an agent makes inaccurate representations
What is the minimum free look period for life insurance policies in Florida? Select one: a. 10 days b. 14 days c. 30 days d. 31 days
b. 14 days
Agents who have been licensed for more than 6 years, but less than 25 years, must complete how many continuing education hours every 2 years? Select one: a. 10 hours b. 20 hours c. 24 hours d. 32 hours
b. 20 hours
Who pays for the examination by the CFO? Select one: a. The CFO's office b. The cost is split evenly between the insurer and the CFO's office c. The insurer d. The cost is split unevenly between the insurer and the CFO's office dependent on the results of the examination
c. The insurer
How often can the CFO examine the records and assets of an authorized insurer? Select one: a. Annually b. Every 3 years c. Every 5 years d. As often as he or she wants
d. As often as he or she wants
How are insurance agents paid? Select one: a. Salary plus commission b. Salary only c. Commission only d. Commission plus an additional fee is allowed from the client with the client's approval
d. Commission plus an additional fee is allowed from the client with the client's approval
What is the criminal classification for twisting? Select one: a. A first-degree misdemeanor b. A second-degree misdemeanor c. A third-degree misdemeanor d. A first-degree felony
a. A first-degree misdemeanor
What is an impaired insurer? Select one: a. An insurer which doesn't have its certificate of authority renewed b. An insurer that may potentially be unable to fulfill its contractual obligations c. An insolvent insurer d. An insurer that loses all of its agents through resignation or retirement
b. An insurer that may potentially be unable to fulfill its contractual obligations
Which of the following is described as charging insureds additional fees without their consent? Select one: a. Coercion b. Churning c. Sliding d. Twisting
c. Sliding
What is the purpose of life insurance replacement regulations? Select one: a. To regulate the activities of insurers and agents b. To protect the interests of life insurance policy owners c. To reduce the opportunity for misrepresentation and incomplete disclosures d. All of the above
d. All of the above
Which of the following is a correct statement concerning an application? Select one: a. Agents cannot make changes to the insurance application. b. The insurer can make changes with the written consent of the insured. c. The insurer can make insertions for administrative purposes only. d. All of the above
d. All of the above
Which of the following would be considered defamation? Select one: a. A printed statement about an individual agent which is false b. An oral statement which is maliciously critical of another insurance company c. A written statement which is derogatory to the financial condition of insurance company d. All of the above
d. All of the above
Which of the following is true? Select one: a. An insurance application must have the agent's name on the first page. b. An insurance application must have the agent's name and license number on the last page. c. An insurance application must have the agent's name, license number, and address on the first page. d. An insurance application must have the agent's name and license number on the first page.
d. An insurance application must have the agent's name and license number on the first page.
Which of the following is best described as a group formed for the purpose of obtaining insurance coverage? Select one: a. Unnatural group b. Small employer group association c. Natural group d. Fictitious group
d. Fictitious group
In Florida, how many appointments may an agent hold? Select one: a. 1 b. 3 c. 10 d. No limit
d. No limit
In which of the following may insurers not invest? Select one: a. Corporate bonds b. Mortgage loans c. Real estate d. None of the above
d. None of the above
Someone who is a licensed agent only may use which term to describe themself? Select one: a. Financial planner b. Financial consultant c. Investment advisor d. None of the above
d. None of the above
Who pays examination expenses? Select one: a. Agents of the insurer being examined b. The Office of Insurance Regulation c. General public, funded by payroll taxes d. The insurer being examined
d. The insurer being examined Expenses include actual travel expenses, reasonable living expense allowance, and compensation of the examiner or other person making the examination.
What is the maximum amount the Florida Life and Health Guaranty Association will pay for any one life? Select one: a. $100,000 b. $200,000 c. $300,000 d. $500,000
c. $300,000
Getting someone to change policies with a different company without revealing all the repercussions is: Select one: a. Sliding b. Torqueing c. Twisting d. Churning
c. Twisting
What are the rules for insurers regarding the Health Maintenance Organization Consumer Assistance Plan of Florida? Select one: a. The plan can be mentioned in any solicitation, but it is not required. b. The plan must never be used in any solicitation. c. The plan must be mentioned prominently in any solicitation. d. The plan must be mentioned in the footnote section of any solicitation.
b. The plan must never be used in any solicitation.
What is the maximum fine for committing an unfair trade practice when selling health insurance? Select one: a. $20,000 b. $50,000 c. $100,000 d. $200,000
d. $200,000
Which of the following is an eligible group for group life insurance? Select one: a. Employer b. Labor union c. Credit union d. All of the above
d. All of the above
How much time must a person be cancer free before they can be issued a health insurance policy that covers bone marrow transplants? Select one: a. 1 year b. 2 years c. 5 years d. Bone marrow transplants can never be excluded.
d. Bone marrow transplants can never be excluded.
Why was the Florida Health Insurance Plan established? Select one: a. To make insurance available to those below the poverty line b. To standardize the rules for all insurance companies in Florida to follow c. To lower the costs of insurance in Florida d. To make insurance available to those deemed uninsurable
d. To make insurance available to those deemed uninsurable
How is insolvency defined for an HMO? Select one: a. When an HMO is refused a license by the state of Florida b. When an HMO cannot get physicians to sign contracts with them c. When an HMO has no patients d. When an HMO's assets are not sufficient to cover its claims
d. When an HMO's assets are not sufficient to cover its claims
In Florida, what is the minimum age to become licensed as an insurance producer? Select one: a. 18 b. 19 c. 21 d. 25
a. 18
How much time does someone have to contest a policy if there is misrepresentation? Select one: a. 2 years b. 3 years c. 4 years d. 5 years
a. 2 years
How much time must a life insurance policy be in force before it becomes incontestable? Select one: a. 2 years b. 3 years c. 4 years d. 5 years
a. 2 years
A Medicare Supplement Insurance advertisement must be sufficiently complete and clear to avoid deception or the capacity or tendency to mislead or deceive based on what type of person? Select one: a. Average education and average intelligence b. Low education and low intelligence c. Florida laws do not specify this requirement. d. Low education and average intelligence
a. Average education and average intelligence
How must the notice be given when an appointee is terminated? Select one: a. In person or by mail b. No method is specified in Florida. c. In person only d. By mail only
a. In person or by mail
Which of the following penalties may be applied to an agent committing an unfair trade practice? Select one: a. License suspension, revocation, nonrenewal or refusal to issue b. Imprisonment for up to 3 years c. Fine of $50,000 d. All of the above
a. License suspension, revocation, nonrenewal or refusal to issue
Which of the following penalties is applied for committing an intentional act of churning? Select one: a. Misdemeanor of the first degree and fine of $75,000 b. Misdemeanor of the second degree and fine of $3,000 c. Misdemeanor of the third degree and fine of $100,000 d. None of the above
a. Misdemeanor of the first degree and fine of $75,000
How are the proceeds distributed when an insured and the beneficiary die, but it is unknown who died first? Select one: a. Proceeds are distributed as if the insured had survived the beneficiary. b. Proceeds are distributed as if the beneficiary had survived the insured. c. Only a court can decide d. Proceeds are distributed evenly to the insured's next of kin and the beneficiary's next of kin.
a. Proceeds are distributed as if the insured had survived the beneficiary.
Which of the following best describes the duties of the Office of Insurance Regulation? Select one: a. Regulating insurance activities in Florida. b. Interpreting insurance laws for conflict resolution c. Enforcing criminal penalties d. Repealing ineffective insurance laws
a. Regulating insurance activities in Florida.
If an agent states that certain coverage is required by law when it isn't, this would be: Select one: a. Sliding b. Coercion c. Churning d. Twisting
a. Sliding
Who supervises the Division of Insurance Agents and Agency Services? Select one: a. The Chief Financial Officer (CFO) b. The Commissioner of the Office of Insurance Regulation c. The Governor of Florida d. All of the above
a. The Chief Financial Officer (CFO)
Who is responsible for writing and amending the Florida Insurance Code? Select one: a. The Florida state legislature b. The Financial Services Commission c. The Department of Financial Services d. The Division of Insurance Agents and Agency Services
a. The Florida state legislature
Which of the following is false? Select one: a. An agent in charge must be full-time at the particular agency location. b. All branch locations may also be licensed together. c. One agent in charge can manage several branch locations. d. Each insurance agency must have an agent in charge.
b. All branch locations may also be licensed together.
Which of the following is true? Select one: a. An insurer can pay a commission to an unlicensed agent. b. An agent can pay a commission to another agent. c. An agent can receive a commission before being appointed. d. None of the above
b. An agent can pay a commission to another agent.
Which of the following are generally prohibited in Florida? Select one: a. Viatical insurers b. Assessment insurers c. Indirect insurers d. Legal reserve insurers
b. Assessment insurers
Which of the following is not true regarding the licensing of insurance agencies? Select one: a. Each insurance agency operating in Florida must be licensed or registered. b. Each insurance agency must have at least two licensed and active insurance agents. c. Each branch location of an insurance agency must be licensed if consumers may purchase insurance from that location. d. An insurance agency includes individuals, firms, partnerships, corporate or associations.
b. Each insurance agency must have at least two licensed and active insurance agents.
Which of the following is an unfair claims settlement practice? Select one: a. Providing an explanation to the insured of the basis for a denial b. Providing a written statement 45 days after the incident c. Conducting an investigation based on evidence d. Notifying the insured of the additional needed information
b. Providing a written statement 45 days after the incident
A rebate would NOT be allowed for which of the following? Select one: a. Rebate shall be in accordance with rebating schedule filed by the agent b. Rebate requires the purchase of collateral business. c. Rebate is not based on age, marital status, or occupation d. Rebate is available to all insureds in the same actuarial class
b. Rebate requires the purchase of collateral business.
In Florida, what defines proper business practices expected of agents? Select one: a. The McCain-Feingold Ethics Act b. The Florida Code of Ethics c. The Southern Code of Ethics and Behavior d. Ethical Standards for Insurance Providers in the State of Florida
b. The Florida Code of Ethics
What is excess business as it relates to insurance? Select one: a. A policy which another agent would have to write b. The portion of a risk above the limits of that which the agent's insurer will accept c. A risk that is rejected for underwriting reasons d. Insurance which duplicates a previous policy
b. The portion of a risk above the limits of that which the agent's insurer will accept
How much is the fine if an agent fails to report a change in address or phone number in the required timeframe? Select one: a. $250 every time b. $500 every time c. $250 the first time and $500 the second time d. $500 the first time and $1000 the second time
c. $250 the first time and $500 the second time
What is the maximum fine for willfully submitting fraudulent signatures on any insurance related document? Select one: a. $5,000 per violation b. $10,000 per violation c. $40,000 per violation d. $50,000 per violation
c. $40,000 per violation
An agent who violates a cease and desist order may be subject to a maximum fine of: Select one: a. $5,000 b. $10,000 c. $50,000 d. $100,000
c. $50,000
What is the maximum fine for an intentional act of twisting or churning? Select one: a. $5,000 b. $10,000 c. $75,000 d. $50,000
c. $75,000 The penalty for committing an act of twisting or churning is a misdemeanor of the first degree, and a fine of up to $5,000 for unintentional violations, and up to $75,000 for intentional violations.
What is the maximum fine for twisting? Select one: a. $5,000 per violation b. $10,000 per violation c. $75,000 per violation d. $50,000 per violation
c. $75,000 per violation
Which of the following is false? Select one: a. An insurance agent in Florida cannot be an employee of the United States Department of Veterans Affairs. b. An insurance agent in Florida cannot be a funeral director. c. An insurance agent in Florida cannot be a legal alien. d. An insurance agent in Florida cannot be an employee of a state service department.
c. An insurance agent in Florida cannot be a legal alien. Qualifications for life and health insurance agents in Florida: Individual is not found to be untrustworthy or incompetent, Natural person at least 18 years of age, United States citizen or legal alien with work authorization, Resident of Florida, Not an employee of the United States Department of Veterans Affairs or state service office, Not a funeral director, direct disposer or employee thereof, 40-hour pre-licensing education course, Take and pass the insurance state licensing examination for the lines of insurance licensure is desired The correct answ
How long must agents keep transaction records involving premiums? Select one: a. At least 1 year b. At least 2 years c. At least 3 years d. Indefinitely
c. At least 3 years
Life insurers invest predominately in: Select one: a. Corporate bonds and government bonds b. Real estate and corporate stocks c. Bonds and mortgages d. Mortgage loans and corporate stocks
c. Bonds and mortgages BC both are long term investments
Which of the following may impose penalties for breach of the Florida Insurance Code? Select one: a. Chief Financial Officer b. State court system c. Chief Financial Officer and the State court system d. None of the above
c. Chief Financial Officer and the State court system
The fact that an insurance agent cannot commingle their insurance funds with their personal funds is referred to in legal terms as: Select one: a. Separation of assets b. Monetary Reconciliation c. Fiduciary responsibility d. Legal liability
c. Fiduciary responsibility
Which of the following best describes controlled business? Select one: a. Insurance transacted to an agent's family b. Insurance transacted to an agent's family, amounting to 40% of the agent's total business c. Insurance transacted to an agent's family, amounting to more than the agent's total business sold to the general public d. None of the above
c. Insurance transacted to an agent's family, amounting to more than the agent's total business sold to the general public An agent is transacting controlled business when more of his policies sold in a 12-month period are to his family and employees/employer, than to the general public.
Which of the following is prohibited in Florida? Select one: a. A charge agent being in charge of one or more agency locations b. An insurance agent working out of their home c. Mail order insurance without an agent d. All of the above
c. Mail order insurance without an agent
The insurer has the option of using an adjustable interest rate in which the maximum rate is based on: Select one: a. The Dow Jones Industrial average b. The NASDAQ average c. Moody's corporate bond index d. Federal prime lending rate
c. Moody's corporate bond index
If an agent includes an additional charge in the coverage without telling the applicant, this would be: Select one: a. Slipping b. Twisting c. Sliding d. Churning
c. Sliding
Which of the following is described as making fraudulent comparisons of insurance policies for the purpose of inducing a person to purchase a policy? Select one: a. Rebating b. Misrepresentation c. Twisting d. Churning
c. Twisting Twisting is making misrepresentations or incomplete comparisons of insurance policies for the purpose of inducing a policy purchase, or a person to lapse, forfeit, surrender, termination or convert an insurance policy.
When does Florida require an insurer to provide the "Notice to Applicant Regarding Replacement of Life Insurance" to a prospective client seeking a replacement policy? Select one: a. Before the first appointment with the insured b. At the beginning of the appointment with the insured c. When the insured makes an application d. Within 48 hours of the appointment in which an application is completed
c. When the insured makes an application
Which of the following is not a duty or power of the Office of Insurance Regulation? Select one: a. Conduct investigations of insurance matters b. Enforce the Insurance Code c. Write and amend insurance statutes d. Examine insurers
c. Write and amend insurance statutes
Claims for deceased insureds who fall under the Holocaust Victims Insurance Act must have submitted claims by: Select one: a. 1-Jul-05 b. 1-Jul-08 c. 1-Jul-10 d. 1-Jul-18
d. 1-Jul-18
In Florida, how much time does an insured have to return an annuity for a full refund? Select one: a. 7 days b. 10 days c. 14 days d. 21 days
d. 21 days
If a licensee is found guilty of a felony, how much time do they have to report it to the Florida Department of Insurance? Select one: a. 7 days b. 15 days c. 21 days d. 30 days
d. 30 days
How much notice must an appointing entity give an appointee before their termination? Select one: a. 2 weeks b. 30 days c. 31 days d. 60 days
d. 60 days
Which of the following groups is not allowed to buy group insurance? Select one: a. A religious organization b. A non-union parts supply shop c. A day-care center with only 3 employees d. A group whose sole purpose is obtaining insurance coverage
d. A group whose sole purpose is obtaining insurance coverage
Which of the following is not considered a life insurance replacement transaction? Select one: a. A life insurance policy converted to reduced paid-up insurance b. A lapsed life insurance policy c. A life insurance policy pledged as collateral d. A participating life insurance policy in which the one-year term dividend option is used
d. A participating life insurance policy in which the one-year term dividend option is used
Who are the members of the Florida Life and Health Guaranty Association? Select one: a. The CFO and their appointees b. The CFO, the Commissioner of the Office of Insurance Regulation, and their appointees c. Elected representatives of some insurers d. All insurers authorized by the state of Florida
d. All insurers authorized by the state of Florida
In Florida, which of the following is considered as misrepresentation? Select one: a. Making a statement about an insurer that is untrue b. Publishing an advertisement in a magazine that is misleading c. Broadcasting a television commercial that is deceptive d. All of the above
d. All of the above
In Florida, which of the following is illegal when not specified in the contract? Select one: a. Rebates of premiums payable on the contract b. Extra dispensation of dividends c. Increase in the benefits d. All of the above
d. All of the above
In insurance terms, what is "sliding"? Select one: a. 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 b. Representing to the applicant that a specific ancillary coverage or product is included in the policy applied for without an additional charge when such charge is required c. Charging an applicant for a specific ancillary coverage or product, in addition to the cost of the insurance coverage applied for, without the informed consent of the applicant d. All of the above
d. All of the above
In order to sell variable annuities in Florida, which of the following is required? Select one: a. A license from the Florida Department of Financial Services b. Securities license c. An appointment with an insurer d. All of the above
d. All of the above
Which of the following is a duty of the Officer of the Office of Insurance Regulation? Select one: a. Enforce the provisions of the Insurance Code and execute the duties imposed by the Insurance Code b. Conduct investigations of insurance matters to determine if any person has violated an insurance law c. Collect, propose, publish, and disseminate Insurance Code information d. All of the above
d. All of the above
Which of the following must be shown on the first page of the application form at the time the premium is quoted? Select one: a. The name of the insuring entity b. The name of the agent c. The license number of the agent d. All of the above
d. All of the above
