FL Health Insurance License Ch6

Commingling

A producer who has combined premiums collected with personal funds has engaged in commingling, which is a prohibited act.

6 months

An applicant for a life agent's license may obtain a temporary license for maximum period of

the policy will not be affected

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?

Insurance Guaranty Association

Cannot be advertised as protection by insurers

The prospective insured and the insurer

In accordance with the Code of Ethics, agents must provide a completed application to

50%

In the state of florida, it is illegal for the licensee's commissions from controlled business to exceed what percentage of the total in a given year?

It is never legal to limit coverage based on marital status

In which of the following situations is it legal to limit coverage based on marital status?

Appointment

The authority given by an insurer to an agent to transact insurance or adjust claims on the insurer's behalf

Fiduciary Responsibility

The requirement that agents not commingle insurance monies with their own funds is known as

Misrepresentation, rebating, defamation, unfair discrimination

What are unfair trade practices that producers should avoid?

ownership

What is the major difference between a stock company and a mutual company?

foreign

When doing business in this state, an insurance company that is formed under the laws of another state is as which type of insurer?

Alien Insurer

When transacting business in this state an insurer formed under the laws of another country is known as a/an

Office of Insurance Regulation

Which of the following entities is responsible for agent licensing and administrative supervision?

Insurance Guaranty Association

Which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment?

Statute

a written law passed by a legislative body; can be found in state insurance code

mutual

an insured purchased an insurance policy policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

Home office

insurer's headquarters, principal place of business

Certificate of authority

must be obtain by insurers prior to transacting business in this state

Reciprocity

mutual exchange of rights and privileges

Exempt

not subject to a duty or obligation

Misrepresentation

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

Commission

payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium

Domicile

the location where an insurer is incorporated, not necessarily where the insurer conducts business

cease and desist

to stop or discontinue

Insolvent

unable to pay debts owed

Dividend

unused premium

Rebates are allowed if it's in the best interest of the client

All of the following are true regarding rebates EXCEPT

Obtaining an insurance license

All of the following would be considered an insurance transaction EXCEPT

An agent misrepresents policy benefits to convince a policy owner to replace policies

All of the following would be considered rebating EXCEPT

excess

An agent's client needs additional insurance which the agent's own insurer cannot provide. The agent has to solicit additional coverage from another authorized insurer. This coverage is known as

Send a written notification to the department of insurance

An insurance agent has been found guilty of a felony and was sentenced to 3 years in prison. What would be the appropriate plan of action?

Sliding

An insurance agent likes to add additional coverages to applicants' policies and charge them for such coverages without their knowledge. The agent is guilty of what?

Illegal

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. The insurer is hoping this will help eliminate the competition. Which of the following best describes this act?

Credit report history

Applications to an insurer must include all of the following information, EXCEPT

At least every 5 years

How often must domestic insurance companies be examined by the CFO in Florida?

The extra hours may be continued into the next period

If a person accumulates more continuing education hours than is necessary to fulfill the requirements for a 2-year period, which of the following will occur?

Enacting new insurance laws

Which of the following is NOT a responsibility of the Office of insurance regulation?

the insurance contract

Which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for a premium?

A person who negotiates insurance contracts

Which of the following persons is required to hold a producer license?

Agent C uses her license to write only business other than controlled

Which of the following would NOT be a violation of state insurance regulations?

A salaried employee who advertises and solicits insurance

Which of the following would be required to licensed as an insurance producer?

Anyone who solicits insurance and receives commissions from insurance transactions

Who must be licensed as an insurance producer?

Insurance agents represent the insurer

Whom do insurance agents represent?

Twisting

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

30 days

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?

Inducement

an offer that attempts to influence the other party

Subpoena

an order that requires a person to appear in court

2 years

continuing education requirements must be met every

sexual orientation

it would be considered unfair discrimination to ask an insurance applicant about which of following and then use that information as a rating factor to determine insurability?

Fraternal Benefit Society

which of the following entities is not an insurer but an organization formed to provide insurance?