Unit 26 FL Laws & Rules Pertinent to Life & Health Insurance

what is the professional organization whose code of ethics has been incorporated into FL insurance law? a. National Assoc of Insurance and Financial Advisors (NAIFA-FL) b.National Assoc of Life Underwriters (NALU) c. Assoc of Chartered Life Underwriters (ACLU) d. National Assoc of Insurance Commissioners (NAIC)

a. National Assoc of Insurance and Financial Advisors (NAIFA-FL)

violation of the controlled business statute occurs if an agent sells most of her business to 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 medical society

a. employees of a business owned by her father

which of the following statements is CORRECT about the Department of Financial Services right to examine an agents records? a.an examination can be conducted at any time to discover any unfair trade practices b. an agents records involving a premium transaction are confidential and not subject to examination c.the Chief Financial Officer may examine an agents records only once per year, unless good cause is shown d. the statutes do not give the Department the right to examine the affairs of insurance licensees to discover unfair trade practices

a.an examination can be conducted at any time to discover any unfair trade practices

the major areas of regulation by the office of insurance regulation include which of the following? a.policing against unauthorized 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

a.policing against unauthorized insurance activities

of all 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

a.twisting

if an agent changes her residence address, she must notify the Department of Financial Services within a. 15 days b. 30 days c. 60 days d. a change of address does not require notification

b. 30 days

the pre-licensing education requirement for a life insurance agent's license is a. 30 hrs b. 40 hrs c. 20 hrs d. 24 hrs

b. 40 hrs

to be licensed in FL as a resident producers, all of the following must be completed EXCEPT a. 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

b. paying an application fee that is refundable

all of the following activities could result in the suspension of an agent's 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

b. selling any replacement policy that causes an insured to lapse an existing policy

How soon after an administrative action is taken against a licensee by any governmental or regulatory agency regarding fraud, dishonesty, or untrustworthiness, must the licensee submit copies of the report to the department? a. within 90 days b. withing 30 days c. within 60 days d. within 45 days

b. withing 30 days

the major difference between producers acting as agents and producers acting as brokers is that 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

c. agents represent the company; brokers represent the client

felony convictions on an applicant to be licensed as an agent may 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

c. cause the license application to be refused

the individual who sits on the Financial services commission and supervises the insurance function in FL is called the a. Chief Insurance Commissioner b. director of financial regulation c. chief financial officer d. director of financial regulation

c. chief financial officer

all of the following activities violate the FL insurance code EXCEPT a.dividing commission on a life insurance policy with any licensed 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 insurance broker who regularly transacts life insurance

c. dividing commission on a life insurance policy with another agent who is licensed and appointed to sell the same line of insurance

the state life and health guaranty assoc. covers all of the following EXCEPT a. annuity b. health insurance contracts c. insurance contracts issued by fraternal benefit d. medicare supplement contracts

c. insurance contracts issued by fraternal benefit

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

c. underwriting a contract of insurance

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

c.writing as much non-controlled insurance business as controlled business

Producers must retain records of insurance transactions pertaining to premium payments for at least a. 10 years b. 2 years c. 5 years d. 3 years

d. 3 years

sliding consists of all 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 not additional charge when such a charge is required c. charging an applicant for ancillary coverage over the cost of coverage applied without the applicant's consent d. recommending that a client take cash value from a policy to make other investments

d. recommending that a client take cash value from a policy to make other investments