Chapter 5- Florida statues, rules & regulation

In the state of Florida, it is illegal for a licensee's commissions from controlled business to exceed what percentage of the total in a given year?

50 %

What are the most common penalties for violations of insurance statues?

A cease and desist order, a fine, and license suspension or revocation

Which of the following would be required to be licensed as insurance producer?

A salaried employee who advertises and solicits insurance

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?

Authorized/Admitted

Which of the following authorities grants and revoked licenses?

Department of financial services

Which of the following is not a responsibility of the office of insurance regulation

Enacting new insurance laws

In insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity

The office of insurance regulation is responsible for all of the following insurer activities except

Issue of securities

In which of the following situations it is legal to limit coverage based on marital status?

It is never legal to limit coverage based on marital status

Which of the following is not considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is?

Misrepresentation

An insurance agent x has been found guilty of a felony and was sentenced to 3 years in prison what would be the appropriate plan of action?

Send a written notification to the department of insurance

If a person accumulates more continuing education hours than is necessary to fulfill the requirements of the 2 year period which of the following will occur?

The extra hours may be continued into the next period

An agent transacts business for Insurer A and Insurer B, both selling life insurance, and for Insurer C, selling health insurance. How many appointments must the agent hold?

Three - one for each insurer

What types of misrepresentation persuades an insured to their detriment, to cancel, lapse, or switch policies from one to another?

Twisting

If an agent advises a policyholder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of

churning

In the agent/insurer relationship, who is considered the principal?

insurer

What is the major difference between a stock company and mutual company

ownership

Which of the following insurers are owned by stockholders?

stock