Florida Laws and Rules Pertinent to Insurance Ch. 8
In Florida, monthly-premium health insurance policies must provide a grace period of at least
10 days
The minimum age at which a person can sign a life insurance application is
15
In Florida, a health policy that is paid on a quarterly basis requires a grace period of
31 days
The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond
6 months
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 is considered to be misrepresentation?
An agent guaranteeing a policy's dividends
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
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 Premium Loan Option
The Bureau of Unclaimed Property is overseen by the
Chief Financial Officer
As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?
Coercion
J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of?
Coercion
What are adjustable rates for life policy loans in Florida based on?
Moody's corporate bond index
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 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 policy owners against insolvent insurance companies
Which of the following provisions is NOT required in HMO contracts/certificates?
Seven-day grace period
A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast?
Stock company is owned by its shareholders. Mutual company is owned by its policyholders
Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency?
The amount of premium collected at this location
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
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
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?
Twenty
J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?
Twisting
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 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
A foreign insurance company doing business in Florida
is a company that was formed under the laws of another state
During the course of an insurance transaction, if an agent makes a false or incomplete statement, he/she could be found guilty of
misrepresentation
In Florida, agents are allowed to engage in rebating if
offered to all insureds in the same actuarial class
Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract
once each year
During the application process, the agent's primary responsibility is to
the insurance company
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 agent who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed
twisting
A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value.
vatical settlement provider
Advertising gifts not to exceed ___ are allowed to be given by an agent to a prospective client.
$25
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
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
If an agent would like to sell Variable annuities, which state examination must the agent pass?
Life and Variable contracts
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?
Limitation on pre-exhisting conditions for up to 12 months
What is the main reason for regulating the insurance industry?
Maintain the solvency of insurance companies
According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase?
Martial 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
According to Florida law, a Group Life insurance policy requires a minimum of how many insureds?
No minimum
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
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
Which of the following employees may NOT be excluded from a group life plan?
full-time employees after the probationary period
The Florida Employee Health Care Access Act was established to make
group health insurance available to employers with up to 50 employees
In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n)
foreign company
What percentage of eligible persons must a policy cover in a noncontributory group?
100%
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
Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA).
20
Agents that have been licensed for less than six years must complete __ hours of continuing education every two years.
24
How many hours of continuing education must a newly licensed agent complete every two years
24
Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund?
30
A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's termination?
31 days
What do families pay that are covered by the Florida Healthy Kids Corporation?
A portion of their premiums
All of the following are eligibility requirements for an association group EXCEPT
Contributory plans require a minimum of 25 participants
Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy?
Notice to existing and replacing insurers of intention to replace
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
An agent selling Medicare Supplement policies must provide every applicant with a(n)
Suitability form
The coordination of benefits (COB) provision exists in order to
avoid duplication of benefit payments
Which of the following is considered an accurate statement of an unfair trade practice?
Twisting involves an agent using misrepresentation to convince a policy owner to cancel their current policy so that they can purchase a new life insurance policy with another company
According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant?
at the time of application
When replacing or exchanging an annuity, the agent must disclose to the annuitant
the possible tax ramifications as a result of the transaction
Association Plans that are designed to provide health benefits to their members are regulated by the state because
they are insured by an authorized insurer
An agent's license can be suspended or revoked by
writing primarily controlled business
