FL Statutes, Rules, & Regulations Common To All Lines Q&A
Which of the following is true regarding the agent's appointments?
A person may hold several appointments at one time
What level of authority is given to the Office of Insurance Regulation with respect to examination of insurer's activities to determine compliance Unfair Trade Practice laws?
Absolute
Which of the following is the closest term to an authorized insurer?
Admitted
Which of the following is true regarding branch agency licensing?
Agent in charge must be licensed
When transacting business in this state an insurer formed under the laws of another country is known as an
Alien insurer
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice.
The requirement that agents not commingle insurance monies with their own funds is known as
Fiduciary responsibility
Which of the following authorities grants and revokes licenses?
Department of Financial Services
In insurance transactions, fiduciary responsibility means
Handling insurer funds in a trust capacity
What method do insurers use to protect themselves against catastrophic losses?
Reinsurance
Failure of a licensee to maintain an appointment with an insurance company within 48 months after the date the license became effective will result in
Expiration of license
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
Telling a client that his first premium will be waived if he purchased the insurance policy today
Under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months
In order for an insurer to legally transact insurance, it must obtain which of the following?
Certificate of Authority
A producer who fails to segregate premium monies from his own personal funds is guilty of
Commingling
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?
30 days
A licensed agent must complete how many hours of continuing education in the agent's line of authority every licensing period?
5
Applications to an insurer must include all of the following information, EXCEPT
Credit history report
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
Which of the following is NOT a responsibility of the Office of Insurance Regulation?
Enacting new insurance laws
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
Excess
The Office of Insurance Regulation is responsible for all of the following insurer activities EXCEPT
Issue of securities.
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
Misrepresentation
Pertaining to insurance, what is the definition of a fiduciary responsibility?
Promptly forwarding premiums to the insurance company
What are the 2 offices of the Financial Services Commission?
The Office of Financial Regulation and the Office of Insurance Regulation
Which of the following entities is responsible for agent licensing and administrative supervision?
The Office of Insurance Regulation
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?
The insurance contract
Which of the following is an example of a producer's fiduciary duty?
The trust that a client places in the producer in regard to handling premiums.
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
Twisting
Under what circumstances can an agent's appointment be transferred to another person?
Under no circumstances
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
No insurance policy form can be issued, delivered, or used in this state unless it has been
Filed with and approved by the Office of Insurance Regulation.
An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?
Foreign
Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?
Fraternal Benefit Society
The agent in charge of an agency must hold which of the following licenses?
General lines
On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are
Not taxable since the IRS treats them as a return of a portion of the premium paid.
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of
Rebating
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?
The policy will not be affected.
Which of the following insurance providers must be nonprofit and sell insurance only to its members?
Fraternal
