CH 17
D
A Foreign Insurer is: Choose one answer. a. An insurance company formed in the Bahamas b. An insurer formed under Florida laws, but which may provide insurance in other states c. An insurer formed in a country other than the United States d. An insurer formed under the laws of any state, other than Florida
A
Who may appoint a Customer Representative? Choose one answer. a. A general lines agent or a general lines insurance agency b. An adjuster c. An insurance company d. A surplus lines agent holding a general lines license and a surplus lines license
A
Why are "Association Plans" not exempt from state regulation? Choose one answer. a. Both of the answers are correct b. None of the answers are correct c. The "association plan" must be fully insured so the insurer is subject to state regulation. d. There is no employer-employee relationship (usually the relationship is a member and the association)
D
Define "false claims or obtaining or retaining money dishonestly". Choose one answer. a. While insolvency or impairment exists, no director or officer of any insurer is allowed to permit the insurer to except or solicited new or renewal insurance risk. b. Includes advertising, offering or providing free insurance as an inducement to the purchase or sale of real or personal property or of services directly or indirectly connected with such real or personal property. c. Representing to the applicant in conjunction with the purchase of motor vehicle insurance that a specific ancillary coverage or product is required when said coverage or product is not required. d. Any agent who represents to any insurer a false claim for payment, knowing the claim to be false is guilty of a second-degree misdemeanor.
B
An Alien Insurer is: Choose one answer. a. An insurance company formed in the Bahamas b. An insurer formed in a country other than the United States c. An insurer formed under Florida laws, but which may provide insurance in other states d. An insurer formed under the laws of any state, other than Florida
C
Are agencies operating in Florida required to have a license? Choose one answer. a. An agency that has received a violation from the Department of Financial Services is required to be licensed b. No only agents are required to be licensed c. Yes, as of October 1, 2006 all agencies must file for licensure or registration d. None of the above
A
The Department of Financial Services may, at its discretion, issue a temporary license: Choose one answer. a. All of the answers are correct b. To a licensed agent's employee, family member, business associate, or personal representative c. In the event of death, disability, or absence of a general lines agent d. Only if no other person connected with the agent's business is licensed as a general lines agent
A
A Customer Representative's authority does not include: Choose one answer. a. Conducting sales work outside of the agent's office b. Binding new and additional coverages c. Taking insurance applications, giving quotes, interpreting policies, and giving insurance advice d. Performing preliminary work to assist in processing claims
D
A Domestic Insurer is: Choose one answer. a. An insurance company formed in the Bahamas b. An insurer formed under the laws of any state, other than Florida c. An insurer formed in a country other than the United States d. An insurer formed under Florida laws, but which may provide insurance in other states
A
An Authorized Insurer is: Choose one answer. a. An insurance company who has received a certificate of authority from the State of Florida b. An insurer formed in a country other than the United States c. All of the answers are correct d. An insurer formed under the laws of any state, other than Florida
D
Define "self-insurance". Choose one answer. a. Any person engaged in the business of insurance or annuities. b. Any program approved by the Florida Department of Financial Services. c. Includes any contract where one party agrees to indemnify (restoring to the approximate financial condition prior to a loss) another party after a loss. d. Includes any plan established by an entity that is not an insurer with the intent of indemnifying an employee or their beneficiary for benefits in the event of sickness, accident, disability or death.
C
Define "sliding". Choose one answer. a. Includes advertising, offering or providing free insurance as an inducement to the purchase or sale of real or personal property or of services directly or indirectly connected with such real or personal property. b. While insolvency or impairment exists, no director or officer of any insurer is allowed to permit the insurer to except or solicited new or renewal insurance risk. c. Representing to the applicant in conjunction with the purchase of motor vehicle insurance that a specific ancillary coverage or product is required when said coverage or product is not required. d. Any agent who represents to any insurer a false claim for payment, knowing the claim to be false is guilty of a second-degree misdemeanor.
D
Define the term "insurer". Choose one answer. a. Includes any contract where one party agrees to indemnify (restoring to the approximate financial condition prior to a loss) another party after a loss. b. Any program approved by the Florida Department of Financial Services. c. Includes any plan established by an entity that is not an insurer with the intent of indemnifying an employee or their beneficiary for benefits in the event of sickness, accident, disability or death. d. Any person engaged in the business of insurance or annuities.
B
Describe a MEWA (Multiple-Employer Welfare Arrangement.) Choose one answer. a. MEWAs are defined as an arrangement that is established or maintained to provide one or more various insurance benefits (health insurance) to the employees of two or more employers. b. All of the answers are correct c. MEWAs (Multiple-Employer Welfare Arrangement) are regulated as risk-bearing entities by the Florida Insurance Code. d. MEWAs require a Certificate of Authority from the Department of Insurance.
C
How are agents appointed? Choose one answer. a. An agent or agency appoints its agents. b. All of the answers are correct c. An insurer appoints a general lines agent to transact insurance or adjust claims on their behalf. d. Agents are appointed by the Florida Department of Financial Services.
A
Is a legitimate ERISA Self-Insurance plan necessarily an insurance plan subject to state regulation? Choose one answer. a. A genuine single-employer ERISA plan is not subject to direct state insurance regulation b. None of the answers are correct c. A legitimate ERISA Self-Insurance plan is always deemed to be insurance d. A legitimate ERISA Self-Insurance plan is never deemed to be insurance
A
Rebating of a portion of an agent's commission is permitted: Choose one answer. a. If a rebate schedule is prominently displayed in public view at the agent's place of business b. If granted only upon the insured's purchase of collateral insurance c. If based on age, sex, place of residence or occupation of the insured d. If insurance is provided by an insurer that allows its agents to rebate commission
C
Self-insurance is: Choose one answer. a. Any plan administered by or for the Federal Government b. Any plan covering fewer than 10 employees c. Any plan established for the purpose of providing for employees or their beneficiaries, accident, disability or death benefits d. Any plan, which provides for continuing employees regular compensation during illness or disability
B
The Department of Financial Services of Florida may, upon written application and payment of fees, issue a nonresident license: Choose one answer. a. If a general lines agent only lives in Florida 8 months a year b. If a nonresident does not have a place of business in Florida, or does not have a direct or indirect interest in any insurance agency in Florida c. If a general lines agent's own state does not issue nonresident licenses in a like manner d. To a customer representative who is otherwise qualified and who is a resident of a state that does not share a common boundary with Florida
D
What are "unlawful rebates"? Choose one answer. a. Knowingly making, issuing, circulating any estimate, illustration, circular, statement, sales representation, omission, or comparison which misrepresents the benefits, advantages, conditions, or terms of any insurance policy etc. b. Knowingly making or permitting any unfair discrimination of the rates charged for any life insurance or annuity contract or knowingly making or permitting any unfair discrimination between individuals of the same actuarial class in the amount of premium. c. Knowingly making, publishing, disseminating, or circulating directly or indirectly which is falsely or maliciously critical of any person and which is circulated to injure such person. d. Permitting or offering to make any rebate unless plainly expressed in the insurance contract.
A
What are the requirements for a customer representative's license? Choose one answer. a. All of the answers are correct b. The applicant must be qualified as to knowledge, experience or instruction in the business of insurance, must have passed any required examination or license, etc. c. The applicant must be a natural person at least 18 years at age d. The applicant must be a bona fide resident at this state
A
What lines of insurance are general lines agents qualified to write? Choose one answer. a. Except for limited lines licenses, all property, marine, casualty, and surety lines except bail bonds. b. Any classes of insurance that his or her appointing general lines agent or agency is currently authorized to transact. c. All classes of health insurance business. d. All classes of life insurance business.
B
What role does state regulation play in a legitimate ERISA plan? Choose one answer. a. The state regulates any ERISA plan in the same way it regulates any authorized insurer. b. State insurance regulation does still apply to an insurer that may be financially responsible for the payment of claims and any forms utilized in an insured ERISA plan. c. There is no regulation over ERISA plans. d. All of the answers are correct
B
When is a "Union Plan" exempt from state regulation? Choose one answer. a. "Union Plans" are all exempt from state regulation. b. A "Union Plan", may receive an express finding (in writing) from the U.S. Department of Labor that the collective bargaining agreements between that union and the employers are bona fide and be exempt from state regulation. c. Only legitimate "Union Plans" are all exempt from state regulation. d. "Union Plans" are all subject to state regulation.
D
Which of the following are not Unfair Methods of Competition or Unfair or Deceptive Acts? Choose one answer. a. Refusal to insure solely because of race, color, creed, marital status, sex, or national origin. b. Misrepresentation or false advertising of benefits, advantages, conditions or terms of an insurance policy. c. Twisting or Churning. d. Giving to an insured, for advertising purposes, an article of merchandise having a value of $25. or less.
C
Which of the following is not grounds for discretionary refusal, suspension or revocation of the license of a general lines agent or customer representative? Choose one answer. a. Been found guilty of a felony b. Cheating on an examination required for licensing c. Demonstration of a lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license d. Willful over insurance of any property of health insurance risk
A
Why are Professional Employer Organizations (PEO) or Employee Leasing Companies not exempt from state regulation? Choose one answer. a. Both of the answers are correct b. Florida Statute 468.529 prohibits PEOs from sponsoring self-insured health plans. c. None of the answers are correct d. Even though a purported "co-employer" relationship exist, the state does not recognize an employee/employer relationship with the employee and the PEO since the PEO does not control the hiring and firing of employees, etc.
D
A General Lines Agent is: Choose one answer. a. A personal lines agent who has not complied with the continuing education requirements of the State of Florida b. One approved by a general lines agent to assist in transacting business of Private Passenger motor vehicles from the agency office c. One who is appointed by a general lines agent or agency to assist in transacting the business of the agency from the agency office d. One who may transact property insurance, casualty insurance, surety insurance, health insurance, and marine insurance in the State of Florida
D
A customer representative's powers include: Choose one answer. a. A customer representative may not engage in transacting insurance directly with customers b. A customer representative's license may cover life insurance or any kind of insurance for which the appointing agent or appointing agency is not licensed c. A customer representative may engage in transacting insurance outside the office of his or her appointing agent or agency d. A customer representative must be a salaried employee of the agent or agency; his compensation cannot include commissions and cannot be primarily based on the production of applications, insurance, or premium
A
An agent, customer representative or adjust who diverts or misappropriates funds belonging to an insurer or others (trust funds) may be held responsible as follows: Choose one answer. a. Any of the answers are correct b. If the diverted or misappropriated funds are hundred thousand dollars or more, the licensee can be charged with a first-degree felony c. If the diverted or misappropriated funds are $20,000 or more but less than $100,000, the licensee can be charged with a second-degree felony d. If the diverted or misappropriated funds are $300 or less, the licensee can be charged with a first-degree misdemeanor
A
An agent`s license is for the purpose of authorizing the licensee in good faith to engage in the insurance business. The license cannot be used for: Choose one answer. a. Receiving a rebate in the form of commission or other compensation for "controlled business" b. Receiving a rebate in the form of commission or other compensation for "controlled business" if licensed for motor vehicle physical damage only and employed by or associated with a motor vehicle sales or financing agency c. All of the answers are correct d. Receiving a rebate in the form of commission or other compensation for controlled business" if licensed for credit property insurance only and employed by or associated with a motor vehicle sales or financing agency
D
Define the term Insurance. Choose one answer. a. Any person engaged in the business of insurance or annuities. b. Any program approved by the Florida Department of Financial Services. c. Includes any plan established by an entity that is not an insurer with the intent of indemnifying an employee or their beneficiary for benefits in the event of sickness, accident, disability or death. d. Includes any contract where one party agrees to indemnify (restoring to the approximate financial condition prior to a loss) another party after a loss.
B
Describe one goal of ERISA. Choose one answer. a. To allow employers to provide a more affordable health insurance plan. b. To encourage individual employers to establish employee health plans for that employer's employees and dependents c. To allow employers to self-insure without being subject to state regulation. d. To encourage employers to fund and bear the financial responsibility for the covered health claims of its own participating employees
A
What are "unfair claim settlement practices"? Choose one answer. a. Attempting to settle claims on the basis of an application or material document which was altered without notice to or knowledge or consent of the insured or a material misrepresentation for the purpose of settlement of a claim on less favorable terms. b. Knowingly making a false or fraudulent written or oral statement or representation on or relative to any application or negotiation for insurance policy for the purpose of obtaining a fee, commission, or any other benefit. c. Knowingly making any misleading representations of any insurance policy for the purpose of inducing a person to lapse, forfeit, surrender etc. any insurance policy or to take out a policy of insurance with another insurer. d. Knowingly making, publishing, disseminating, or circulating directly or indirectly which is falsely or maliciously critical of any person and which is circulated to injure such person.
B
What are Florida's continuing educations requirements for customer representatives and limited customer representative? Choose one answer. a. A licensee who holds a license as a customer representative or limited customer representative and who is not licensed as a life or health insurance agent is required to complete to 12 hours of continuing education courses every two years. b. A licensee who holds a license as a customer representative or limited customer representative and who is not licensed as a life or health insurance agent is required to complete to 10 hours of continuing education courses every two years. c. A licensee who holds a license as a customer representative or limited customer representative and who is not licensed as a life or health insurance agent is required to complete to 15 hours of continuing education courses every two years. d. A licensee who holds a license as a customer representative or limited customer representative and who is not licensed as a life or health insurance agent is required to complete to 24 hours of continuing education courses every two years.
B
What are Florida's continuing educations requirements? Choose one answer. a. Each licensee must complete a minimum of 20 hours of continuing education courses every two years. A person who has been licensed for a period of six or more years may complete 20 hours every two years in intermediate or advanced level courses. b. Each licensee must complete a minimum of 24 hours of continuing education courses every two years. A person who has been licensed for a period of six or more years may complete 20 hours every two years in intermediate or advanced level courses. c. Each licensee must complete a minimum of 25 hours of continuing education courses every two years. A person who has been licensed for a period of six or more years may complete 24 hours every two years in intermediate or advanced level courses. d. Each licensee must complete a minimum of 24 hours of continuing education courses every two years. A person who has been licensed for a period of six or more years may complete 10 hours every two years in intermediate or advanced level courses.
A
What are a customer representative's powers? Choose one answer. a. Both of the answers are correct b. None of the answers are correct c. A customer representative's license may not cover any kind of insurance for which the appointing agent or appointing agency is not licensed. d. A customer representative's license may not cover life insurance
A
What are conditions under which a licensee can rebate a license? Choose one answer. a. Both of the answers are correct b. The rebate must be in accordance with the filed rebating schedule. c. The rebate must be available to all insured in the same actuarial class, uniformly applied and not subject to discrimination. d. None of the answers are correct
B
What are conditions under which the Department has a mandatory obligation to deny an application or suspended, revoke, or refused to renew or continue the license or appointment of any applicant or licensee? Choose one answer. a. Lack of one or more qualifications for the license or appointment b. Any of the answers are correct c. Failure to pass the licensed exam d. Material misstatement, misrepresentation, or fraud in obtaining the license or appointment
A
What are possible consequences for acting as an insurer without proper license? Choose one answer. a. All of the answers are correct b. Any person acting as an insurer without a Certificate of Authority may be convicted of a third-degree felony c. Subject to suspension or revocation of all insurance licenses d. Any person acting as an insurer without a Certificate of Authority may be subject to suspension or revocation of all insurance licenses
A
What are possible consequences for aiding and abetting an unauthorized insurer? Choose one answer. a. All of the answers are correct b. Liability for all unpaid claims of the unauthorized insurer c. Subject to suspension or revocation of all insurance licenses d. Conviction of a third-party felony
A
What are the limits on lines and products the Customer Representative may handle? Choose one answer. a. A customer representative may handle insurance business the specific supervising insurance agent is appointed to handle. b. Any automobile policy c. Any property or liability policy d. Any of answers are correct
A
What are the penalties for diverting or misappropriating "trust funds"? Choose one answer. a. The penalties range from first-degree misdemeanor to first-degree felony. b. There is no set penalty for diverting or misappropriating "trust funds"; any judgment is left to the courts c. The penalty is a first-degree felony d. The penalty is a first-degree misdemeanor
C
What are the requirements for a general lines agent's license? Choose one answer. a. The applicant must be a bona fide resident at this state b. The applicant must be a natural person at least 18 years at age c. All of the answers are correct d. The applicant must be qualified as to knowledge, experience or instruction in the business of insurance, must have passed any required examination or license, etc.
A
What are the requirements for a licensee who changes his or her name, residence address, principal business street address, or mailing address? Choose one answer. a. Each licensee must notify the department in writing within 30 days of any change of name, residence address, principal business street address, or mailing address. b. Each licensee must notify the department in writing within 60 days of any change of name, residence address, principal business street address, or mailing address. c. There is no requirement d. Each licensee must notify the department in writing within 90 days of any change of name, residence address, principal business street address, or mailing address.
D
What are the rules that allow for state regulation of MEWAs? Choose one answer. a. A MEWA that is not an employee benefit plan is subject to state insurance regulation. b. If fully insured, the MEWA remains subject to state regulation. c. If not fully insured, the MEWA is subject to all state insurance laws not inconsistent with ERISA. d. All of the answers are correct
D
What is included in "misrepresentation of insurance applications?" Choose one answer. a. Attempting to settle claims on the basis of an application or material document which was altered without notice to or knowledge or consent of the insured or a material misrepresentation for the purpose of settlement of a claim on less favorable terms. b. Knowingly making any misleading representations of any insurance policy for the purpose of inducing a person to lapse, forfeit, surrender etc. any insurance policy or to take out a policy of insurance with another insurer. c. Knowingly making, publishing, disseminating, or circulating directly or indirectly which is falsely or maliciously critical of any person and which is circulated to injure such person. d. Knowingly making a false or fraudulent written or oral statement or representation on or relative to any application or negotiation for insurance policy for the purpose of obtaining a fee, commission, or any other benefit.
D
What is meant by the term "Department"? Choose one answer. a. The Florida Department of Insurance b. None of the answers are correct c. Both of the answers are correct d. The Florida Department of Financial Services
B
What is meant by the term "Exchange of Business"? Choose one answer. a. All of the answers are correct b. An agent may place business with an insurer for which he or she is not appointed as an agent as long as he or she is appointed for such business by another insurer. c. An originating general agent placing business with the company with which he or she is not appointed. d. An agent may divide or share in commissions with his or her employed solicitors and with other agents appointed and licensed to write the same kind or kinds of insurance.
C
What is meant by the term "alien insurer"? Choose one answer. a. Any insurer who has received a certificate of authority from the state of Florida. b. One who formed their company within the state of Florida. c. One who formed outside of the United States or an insurer who is not domestic or foreign. d. One who formed their company in any other state (other than Florida) but within the United States, its territories or possessions.
A
What is meant by the term "authorized insurer"? Choose one answer. a. Any insurer who has received a certificate of authority from the state of Florida. b. One who formed their company in any other state (other than Florida) but within the United States, its territories or possessions. c. One who formed their company within the state of Florida. d. One form outside of the United States or an insurer who is not domestic or foreign.
C
What is meant by the term "domestic insurer"? Choose one answer. a. Any insurer who has received a certificate of authority from the state of Florida. b. One form outside of the United States or an insurer who is not domestic or foreign. c. One who formed their company within the state of Florida. d. One who formed their company in any other state (other than Florida) but within the United States, its territories or possessions.
C
What is meant by the term "foreign insurer"? Choose one answer. a. One form outside of the United States or an insurer who is not domestic or foreign. b. One who formed their company within the state of Florida. c. One who formed their company in any other state (other than Florida) but within the United States, its territories or possessions. d. Any insurer who has received a certificate of authority from the state of Florida.
C
What is meant by the term "misrepresentation and false advertising of insurance policies"? Choose one answer. a. Knowingly making or permitting any unfair discrimination of the rates charged for any life insurance or annuity contract or knowingly making or permitting any unfair discrimination between individuals of the same actuarial class in the amount of premium. b. Permitting or offering to make any rebate unless plainly expressed in the insurance contract. c. Knowingly making, issuing, circulating any estimate, illustration, circular, statement, sales representation, omission, or comparison which misrepresents the benefits, advantages, conditions, or terms of any insurance policy etc. d. Knowingly making, publishing, disseminating, or circulating directly or indirectly which is falsely or maliciously critical of any person and which is circulated to injure such person.
C
What is meant by the term "unauthorized insurer"? Choose one answer. a. Any insurer who has received a certificate of authority from the state of Florida. b. One who formed their company in any other state (other than Florida) but within the United States, its territories or possessions. c. Any insurer who is not authorized by the state of Florida. d. One form outside of the United States or an insurer who is not domestic or foreign.
C
What is meant by the term "unfair discrimination"? Choose one answer. a. Knowingly making, publishing, disseminating, or circulating directly or indirectly which is falsely or maliciously critical of any person and which is circulated to injure such person. b. Permitting or offering to make any rebate unless plainly expressed in the insurance contract. c. Knowingly making or permitting any unfair discrimination of the rates charged for any life insurance or annuity contract or knowingly making or permitting any unfair discrimination between individuals of the same actuarial class in the amount of premium. d. Knowingly making, issuing, circulating any estimate, illustration, circular, statement, sales representation, omission, or comparison which misrepresents the benefits, advantages, conditions, or terms of any insurance policy etc.
D
What is the limitation on advertising gifts? Choose one answer. a. Advertising gifts are permitted so long as the value is not more than $10. b. Advertising gifts are permitted so long as the value is not more than $100. c. Advertising gifts are permitted so long as the value is not more than $250. d. Advertising gifts are permitted so long as the value is not more than $25.
C
What lines of insurance are customer representatives qualified to write? Choose one answer. a. All classes of health insurance business b. All classes of life insurance business c. Any classes of insurance that his or her appointing general lines agent or agency is currently authorized to transact d. Except for limited lines licenses, all property, marine, casualty, and surety lines except bail bonds
A
When may an agent share commission? Choose one answer. a. An agent may divide or share in commissions with his or her employed solicitors and with other agents appointed and licensed to write the same kind or kinds of insurance. b. All of the answers are correct c. An originating general agent placing business with the company with which he or she is not appointed. d. An agent may place business with an insurer for which he or she is not appointed as an agent as long as he or she is appointed for such business by another insurer.