Unit 26

A licensee must notify the department in writing, within how many days after change of name, residence address, principal business street address, mailing address, con ract telephone number, or email address?

A 10 B 30 C 60 D 90 Correct: B

A licensee who has been licensed for six or more years must complete a minimum of how many hours of elective continue education and how often?

A 19, 2 B 15, 2 C 24, 4 D 5, 2 Correct: B

Which of the following establishes a broad outline that defines appropriate and inappropriate business behavior for insurance agents?

A Insurance designations B code of ethics C National Association of insurance commissioners D Life and health insurance guaranty fund Correct: B

All premiums, return premiums, or other funds belonging to the insurance company or others received by an agent or insurance agency are trust funds received by the licensee in what capacity?

A commission B ethical C banking D fiduciary Correct: D

An act of making, issuing, circulating, or causing to be issued or circulated, an estimate, illustration, circular, or statement of any kind that does not represent the correct policy terms, dividends, or share of the surplus, or the name or title for any policy or class of policies that does not in fact reflect it's true nature is known as which of the following?

A misdemeanor B defamation C dividend D misrepresentation Correct d

All of the following are considered on for methods of competition, except

A twisting B sliding C defamation D advertising Correct; D

Sliding consists of all of the following activities EXCEPT

A) Telling an applicant that certain ancillary coverage is required by law when it is not B) Advising a client that certain ancillary coverage is included at no additional charge when such a charge is required C) Charging an applicant for ancillary coverage over the cost of coverage applied for without the applicant's consent D) Recommending that a client take cash value from a policy to make other investments Answer: D

An emergency cease and desist order is affective immediately upon service of a copy of the order upon the state financial institution and remains effective for how long?

A. 10 days B. 30 days C. 60 days D. 90 days My answer: D

How long must producers retain records of insurance transactions pertaining to premium payments?

A. 10 years B. 2 years C. 5 years D. 3 years Correct: D

Which of the following statements is correct about the Department of Financial Services' right to examine an agent's records?

A. An examination can be conducted at any time to discover any unfair trade practices. B. An agent's records involving a premium transaction are confidential and not subject to examination C. The chief financial officer may examine an agents records only one per year, unless good cause is shown D. The statuses do not give the Department the right to examine the affairs of insurance licenses to discover unfair trade practices Correct answer: A

The state Life and Health Guaranty Association covers all of the following insurance contracts except:

A. Annuity contracts B. Health insurance contracts C. Insurance contracts issued by fraternal benefit societies D. Medicare supplement contracts Correct: C

No person may act as an insurance agent unless they are currently licensed by the department and are what buy an insurer or other appropriate entity?

A. Appointed B. Bonded. C. Authorized. D. Unaffiliated Correct: A

What effect might a felony conviction have on an applicant to be licensed as an agent?

A. Cause the licensing fee to be increased B. Require the applicant to sign a nolo contendere plea C: Cause the license application to be refused D. Be disregarded if the applicant has a licensed sponsor approved by the state of Florida Correct answer: C

The major areas of regulation by the Office of Insurance Regulation include which of the following?

A. Policing against authorized insurance activities B. Proposing legislation to regulate the insurance industry C. Enacting new insurance laws D. Enforcing criminal penalties against those who violate the insurance code Correct answer: A

What is keeping premium money separate from personal accounts?

A. Reinsurance regulation B. Replacement regulation C. Duty of the insurer D. A fiduciary responsibility of the agent Correct: D

The definition of transacting insurance includes all of the following except:

A. Soliciting a contract of insurance B. Negotiating a contract of insurance C. Underwriting a contract of insurance D. Effectuating a contract of insurance Correct answer: C

The right to competitive pricing practices and marketing methods that enables an insured to determine the best value among comparable policies is known as which of the following?

A. Subrogation B. Policy and approval authority C. Policyholders rights D. Injunctions Correct: C

All of the following are general duties and powers of the Department of financial services EXCEPT

A. The department shall enforce the insurance code and carry out those duties set forth by the code B. The department shall conduct an investigation of insurance matters expressed in the code C. The department may employ actuaries D. The department shall have additional powers and duties provided by other laws of any state Correct: D

All of the following are ways an insurance agency or agent may rebate commissions except?

A. The rebate schedule is prominently displayed in public view in the agents place of doing business, and a copy is available to insureds on request for a nominal charge B. The rebate shall be available to insureds in the same actuarial class C. The rebate shall be in accordance with the remaining schedule filed by the agent with the insurer issuing the policy to which the rebate applies Correct: A

Of the following terms, which best describes the act of replacing life insurance with a new life insurance policy based upon incomplete or incorrect representations?

A. Twisting B. Rebating C. Embezzlement D. Concealment Correct: A

Within then how many days must an agent notify the Department of financial services of changes in her residence address?

A. 15 days B. 30 days C. 60 days D: A change of address does not require notification Correct answer: B

What is the pre-licensing education requirement for life insurance agent's license?

A. 30 hours B. 40 hours C. 20 hours D. 24 hours Correct answer: B

A new licensee must complete a total how many hours of approved continuing education every two years?

A. 5 B 19 C 24 D 48 Correct; C

A company permitted to transact insurance business in the state of Florida is known as which of the following?

A. Admitted company B. Certificate of authority C. Unlicensed entity D. Certificate of approval Correct: A

What is the major difference between producers acting as agents and producers acting as brokers?

A. Agents represent the client; brokers represent the company B. Brokers are not subject to the same laws and regulations as agents C. Agents represent the company; brokers represent the client D. Only agents can solicit prospects for the purpose of selling insurance Answer: C

No person may act as an insurer, directly or indirectly transacting insurance, in the state of Florida except as authorized by which of the following?

A. Certificate of authority B. Certificate of occupancy C. Temporary producer license D. Agent license My answer: A

Which of the following activities is NOT a violation of the insurance code?

A. Charging a fee that is more than the premium stated in the policy B. collecting premiums and depositing them in the agents personal account C. Writing as much non-controlled insurance business as controlled business D. Offering a premium rebate if the insured contracts for other insurance business Correct: C

To be licensed in Florida as a resident producer, all of the following must be completed EXCEPT:

A. Criminal background check B. Paying an application fee that is refundable C. The pre-licensing education requirements D. Providing any other info required by the state Correct: B

The chief financial officer serves as the head of, and is responsible for overseeing, the 15 divisions of which entity?

A. Department of financial services B. Division of agent and agency services C. Florida legislature D. Federal insurance office Correct: A

All of the following activities violate the Florida insurance code EXCEPT

A. Dividing commission on a life insurance policy with any license agent B. Dividing commission on a life insurance policy with a licensed health agent C. Dividing commission on a life insurance policy with another agent who is licensed and appointed to sell the same line of insurance D. Dividing commission on a life insurance policy with a licensed broker who regularly transacts life insurance Correct: C

Which entity oversees and regulates Florida's financial entities, including state-chartered banks and securities industry participants?

A. Division of Agent and Agency Services B. Office of Financial Regulation C. Florida Legislature D. Federal Insurance Office Correct: B

Violation of the controlled business statute occurs if an agent sells most of her business to whom?

A. Employees of a business owned by her father B. Members of her civic club C. City and county employees D. members of the local media society Answer: A

Which entity oversees the regulation of insurance companies in the state of Florida and is responsible for issuing certificates of authority to qualified insurers?

A. Federal insurance office B. Office of financial fraud C. Florida legislature D. Office of insurance regulation Correct: D

Which of the following best describes the insurance Guaranty fund?

A. It's a state fund B. It's a federal fund C. It's a local fund D it's an international fund Correct: A

All of the following activities could result in the suspension of an agents license except:

A. Misrepresenting the financial condition of an insurer B. Selling any replacement policy that causes an insured to lapse an existing policy C. Attaining a license for the sole purpose of handling controlled business D. Demonstrating incompetency to transact business as an insurance agent Correct: B

The business of life insurance is declared to be a public trust in which all agents of all companies have a common obligation to work together in serving in the best interest of the insuring public. What is this known as?

A. Morals B. Morales C. Ethics D. Certification Answer: c

What is the professional organization whose code of ethics has been incorporated into Florida insurance law?

A. NAIFA-FL B. NALU C. ACLU D. NAIC Correct: A

Which of the following statements about unaffiliated agents is true?

A. They may be affiliated with another licensed agent who has been appointed by an insurer. B. They may earn commissions on new sales to clients. C. They are prohibited I'm charging a fee for their services. D. They are independent consultants who provide analysis and advice to clients about insurance Correct: D

Life or health insurance or annuity contracts covering the agent or family members; officers, stockholders, partners, or employees of a business in which the agent or a family member is engaged; or the debtors of a firm, Association, or corporation of which the agent is an officer, director, stockholder, partner or employee, is known as which of the following?

A. Twisting B churning C controlled business D excess business Correct: c

How soon after an administrative action is taken against a licensee by a governmental or regulatory agency regarding fraud, dishonesty, or trustworthiness must the licensee submit copies of the report to the department?

A. Within 90 days B. Within 30 days C. Within 60 days D. Within 45 days Correct answer: B

Knowingly making, publishing, disseminating, or circulating, directly or indirectly, or aiding, abetting, or encouraging, the making, publishing, disseminating, or circulating of, any oral or written statement, or any pamphlet, circular, article, or literature, that is false or maliciously critical of, or derogatory to, any person or entity that is calculated to injure such person is known as which of the following?

A. coercion B. Intimidation C. Defamation D. Misrepresentation Correct: C