CH 8 Florida Laws & Rules Pertinent to Insurance
In Florida, monthly-premium health insurance policies must provide a grace period of at least
10 days
How many hours of continuing education must a newly licensed agent complete every two years?
24
In Florida, what is the maximum percentage of controlled business an agent may produce?
50%
What do families pay that are covered by the Florida Healthy Kids Corporation?
A portion of the premium
What is Florida's definition of Life insurance replacement?
A transaction in which a new policy is bought and an old policy is terminated
Which of the following employer tasks does a Professional Employer Organization normally handle?
Administration tasks
J owns a business and has a Group Life policy covering her employees. J decides to cancel the policy by letting it lapse on the renewal date. What action must be taken?
All of the employees must be notified of the cancellation either by the insurance company or through J
According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant?
At the time of application
All of the following are Nonforfeiture Options EXCEPT
Automatic Premium Loan Option
S takes out a health insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this?
Entire Contract
Which of the following situations are NOT subject to Florida life insurance laws?
Insurance companies' day-to-day operations
Which of the following is NOT required in the Outline of Coverage for a health insurance policy?
Projection of the policy's future costs
Which of these is NOT a legal entity for selling life insurance in Florida?
Risk management advisers
What is required in the Florida Employee Health Care Access Act?
Small group benefit plans are to be issued on a "guarantee-issue" basis
An agent selling Medicare Supplement policies must provide every applicant with a(n)
Suitability form
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?
The proceeds would be reduced based on whatever the premium would have been if purchased at age 59
An example of an unfair trade practice is
an agent making a material misrepresentation to the insured
In Florida, the underwriting and issuance of a master group health policy requires that all employees
are eligible to participate, regardless of their individual health history
A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as a(n)
broker dealer
An individual covered under a Group Life insurance policy is considered to be a(n)
certificate holder
An example of sliding would be
charging for an additional product without the applicant's consent
A stock insurance company
is owned exclusively by its shareholders
Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent
only if the child is incapable of employment and chiefly dependent on the policyowner
Group Life policies in Florida are required to contain a conversion privilege that allows for conversion
to an individual policy for a stated period of time
The minimum age at which a person can sign a life insurance application is
15 years
Florida requires that coverage for newborns begins "from the moment of birth" and continues for
18 months
An insurance company can contest a life insurance contract due to application fraud within
2 years
In Florida, most life insurance policies have a contestability period of
2 years
In Florida, an element of an insurance transaction would be
issuing an insurance contract
Defamation occurs when an agent makes a false statement intended to
malign another insurer
In Florida, when agents recommend changes be made for existing coverage, the agent must follow established procedures. The name of this rule is called the
Florida Replacement Rule
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?
Limitation on pre-existing conditions for up to 12 months
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?
Misrepresentation
Which Unfair Trade Practice involves making a false statement on an insurance application in order to receive money from an insurer?
Misrepresentation
Under an Individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured?
Monthly
The coordination of benefits (COB) provision exists in order to
avoid duplication of benefit payments
Florida's 14-day free-look period for life insurance policies begins at the
date of delivery
The Life and Health Insurance Guaranty Association is
funded by admitted insurance companies through assessments
The Florida Employee Health Care Access Act was established to make
group health insurance available to employers with up to 50 employees
Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA).
20
What percentage of eligible persons must a policy cover in a noncontributory group?
100%
Within how many days must a licensee notify the Department of Financial Services of a change in address?
30
All of the following are eligibility requirements for an association group EXCEPT
Contributory plans require a minimum of 25 participants
In Florida, deceptive advertising is considered to be
a form of misrepresentation
All of the following will result in the suspension of an agent's license EXCEPT
acting with fiduciary responsibility
During the application process, the agent's primary responsibility is to
the insurance company
According to Florida's life insurance replacement laws, a policyowner must be provided with a written Comparison and Summary Statement when it's requested by
the policyowner
When replacing or exchanging an annuity, the agent must disclose to the annuitant
the possible tax ramifications as a result of the transaction
A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value.
viatical settlement provider
An agent's license can be suspended or revoked by
writing primarily controlled business