Florida insurance law and rules
What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida Law?
0
Florida requires that coverage for newborns begins "from the moment of birth" and continues for
18 months`
In Florida, most life insurance policies have a contestability period of
2
How many hours of continuing education must a newly licensed agent complete every two years?
24
Advertising gifts not to exceed ___ are allowed to be given by an agent to a prospective client.
25
Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund?
30
In Florida, a health policy that is paid on a quarterly basis requires a grace period of
31
How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated?
45
The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond
6 months
What do families pay that are covered by the Florida Healthy Kids Corporation?
A portion of the premium
What do Dread Disease policies cover?
A specific disease or illness
Which of the following employer tasks does a Professional Employer Organization normally handle?
Administration tasks
All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT
An agent's commission
Which of the following situations does NOT apply to the Florida Replacement Rule?
An existing policyholder purchases an additional policy from the same insurer
When is a Group Health policy required to provide coverage for a newborn child?
At the moment of birth
According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant?
At the time of application
Which of the following acts is an agent NOT authorized to do on behalf of an insurer?
Authorize claim payments
All of the following are Nonforfeiture Options EXCEPT
Automatic
The Bureau of Unclaimed Property is overseen by the
Chief Financial Officer
Which two entities regulate variable annuities?
Department of Financial Services; and Securities Exchange Commission
Which of the following is NOT a consequence for placing business with an unauthorized insurer?
First degree misdemeanor
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
All of these are a prerequisite for becoming a licensed agent EXCEPT
Graduate from high school
A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits?
Insurance
Which of the following situations are NOT subject to Florida life insurance laws?
Insurance companies' day-to-day operations
According to Florida law, which of the following statements accurately describes an admitted mail order insurance company?
It may solicit insurance business by mail without the assistance of a licensed agent
If an agent would like to sell Variable annuities, which state examination must the agent pass?
Life and Variable contracts
According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase?
Marital status
Under an Individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured?
Monthly
Which of the following professional organizations has its code of ethics incorporated into Florida law?
National Association of Insurance and Financial Advisors (NAIFA)
In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies?
Naturopaths
Which of the following is NOT an unfair claim settlement practice?
Needing written documentation of claim details
Which entity approves the insurance policy forms used in Florida?
Office of Insurance Regulation (OIR)
How can an agent-in-charge have more than one location?
Only if the agent-in-charge is present when insurance activity occurs
K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take?
Pay monetary restitution to the client
Which of the following types of insureds are life insurance companies allowed to make policy rate discriminations against?
People that smoke
Which of the following is NOT required in the Outline of Coverage for a health insurance policy?
Projection of the policy's future costs
What is the purpose of the Life and Health Insurance Guaranty Association?
Protects policyowners against insolvent insurance companies
Who does an agent represent during the solicitation of insurance?
The insurance company
According to Florida Law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy?
The premiums for the handicapped child are not paid
Which of the following is considered an accurate statement of an unfair trade practice?
Twisting involves an agent using misrepresentation to convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company
What type of insurance company is domiciled in England, but conducts business in Florida?
alien
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
The coordination of benefits (COB) provision exists in order to
avoid duplication of benefit payments
A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as a(n)
broker dealer
One definition of replacement is "the act of replacing an existing insurance policy with another". Replacement is
closely regulated and requires full disclosure
An applicant who pays the initial premium at the time of application is typically given a(n)
conditional receipt
Florida's 14-day free-look period for life insurance policies begins at the
date of delivery
A foreign insurance company doing business in Florida
is a company that was formed under the laws of another state
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
According to Florida law, group life insurance conversion privileges must NOT
require evidence of insurability
When replacing or exchanging an annuity, the agent must disclose to the annuitant
the possible tax ramifications as a result of the transaction
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
An example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA).
20
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
A life policy loan in Florida cannot charge a fixed rate of interest higher than
10
In Florida, monthly-premium health insurance policies must provide a grace period of at least
10
The minimum age at which a person can sign a life insurance application is
15 years
In Florida, an insurer domiciled and incorporated in this state is called a(n)
domestic company
An example of an unfair claims practice would be
failing to effectuate prompt, fair, and equitable settlements of a claim
The act of an insurance company publishing misleading information about its policy's provisions is called
false advertising
T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as
fiduciary responsibility
The Financial Services Commission may hold hearings
for any reason deemed necessary
In Florida, an element of an insurance transaction would be
issuing an insurance contract
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
misrepresentation
During the course of an insurance transaction, if an agent makes a false or incomplete statement, he/she could be found guilty of
misrepresentation
A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss?
20 days
What are adjustable rates for life policy loans in Florida based on?
Moody's corporate bond index
Which of these is NOT a legal entity for selling life insurance in Florida?
Risk management advisers
Which of the following provisions is NOT required in HMO contracts/certificates?
Seven-day grace period
An agent selling Medicare Supplement policies must provide every applicant with a(n)
Suitability form
Which of the following is a standard provision of the conversion privileges in a Group Life policy?
Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis
According to Florida law, a Group Life insurance policy requires a minimum of how many insureds?
No minimum
The Florida Employee Health Care Access Act was established to make
group health insurance available to employers with up to 50 employees
In Florida, agents are allowed to engage in rebating if
offered to all insureds in the same actuarial class
