Florida statutes, rules, and regulations (all lines)
When an insurer legally designates an individual as one of its agents, that act is known as: 1. an assignment 2. a registration 3. an appointment 4. an authorization
an appointment
Unless provided otherwise by statute, when an insurer uses unfair methods of competition or unfair/deceptive acts or practices in the business of insurance, it may be subject to a fine of up to ___ for each nonwillful violation and up to ___ for each willful violation. 1. $20,000 / $200,000 2. $15,000 / $150,000 3. $25,000 / $250,000 4. $10,000 / $100,000
$20,000 / $200,000
Unless provided otherwise by statute, when an individual uses unfair methods of competition or unfair/deceptive acts or practices in the business of insurance, he/she may be subject to a fine of up to ___ for each nonwillful violation and up to ___ for each willful violation. 1. $7,500 / $50,000 2. $2,500 / $25,000 3. $5,000 / $40,000 4. $2,000 / $20,000
$5,000 / $40,000
A licensee in another state may qualify to have his/her license transferred to Florida is he/she has been licensed in the other state for a period of at least ___. 1 1 year 2. 2 years 3. 3 years 4. 5 years
1 year
Carl has just received his life insurance license. When he reaches his first continuing education deadline, how many hours of continuing education classes must he complete? 1. 20 hours 2. 24 hours 3. 19 hours 4. 15 hours
24 hours
After conviction on a misdemeanor related to financial services business, how long must an individual wait before applying for an insurance license? 1. 7 years 2. 10 years 3. 15 years 4. The individual is permanently barred from licensure.
7 years
Under Florida statutes, which of the following investments by an insurer is least likely to be acceptable to the Office of Insurance Regulation? 1. Common or preferred stock of a company that is listed and traded on the New York Stock Exchange 2. A public utilities bond 3. Notes tied to first mortgage loans 4. A bond issued by an insolvent company organized in the United States
A bond issued by an insolvent company organized in the United States
In a contract, when one party's performance is only required when a chance event occurs, that contract is said to be ______ in nature. Contingent Unilateral Aleatory Conditional
Aleatory
When a licensee is determined to have violated the State's Insurance Code, which of the following is/are possible disciplinary actions? 1. Revocation of the licensee's license 2. Imposition of fine 3. Suspension of the licensee's license 4. All of the above
All of the above
Abby is a licensed life insurance agent. She recently completed her continuing education requirements. Because of the courses she selected, the total number of continuing education hours she received exceeded the number of hours she needed. What will happen to the hours that are in excess of those required for this compliance period? 1. They may only be applied to the current continuing education compliance period. 2. All of them may be carried over to the next continuing education compliance period. 3. In each compliance period, she may use up to 5 excess hours from any prior compliance period. 4. In each compliance period, she may use up to 3 excess hours from any prior compliance period.
All of them may be carried over to the next continuing education compliance period.
Under Florida Statutes, an Outline of Coverage is required when issuing all of the following types of policies EXCEPT: 1. Accident insurance 2. Health insurance 3. Long-term care insurance 4. Annuity contracts
Annuity contracts
In May, Janice completed her pre-licensing education. She plans to take the exam at the end of June. Her husband, Bob, is a licensed agent and is the agent in charge of his office. Because he trusts her product knowledge and judgment, he asked Janice to solicit new business for the agency. Janice called Harley, who was identified as a potential customer. Harley came to the office and purchased a policy. Because Bob was at lunch, Janice completed the application, accepted payment, and gave Harley a binder of coverage. If Janice does not yet have her license, which of the following is true: 1. Because the agent in charge was not present when an unlicensed staff accepted payment and bound coverage, Harley's contact is not valid. 2. Because Janice accepted payment without having an a valid license, Harley's contract is not valid. 3. As long as the contract is valid, the status of Janice's license has no impact on the Harley's coverage. 4. Because the policy was bound by someone without a license, Harley's contract is not valid.
As long as the contract is valid, the status of Janice's license has no impact on the Harley's coverage.
Which of the following insurance-related products would not be provided by a Fraternal Benefit Society? 1. Automobile Insurance 2. Annuities 3. Life Insurance 4. Medical Expense Insurance
Automobile insurance
All of the following are responsibilities of the Department of Financial Services EXCEPT: 1. Examining insurance carriers' qualifications 2. Monitoring the financial condition of carriers 3. Establishing and periodically reviewing companies' rules and rates 4. Admitting new insurance carriers to practice in the state
Establishing and periodically reviewing companies' rules and rates
Under Florida statute, how frequently must an insurer report its financial condition to the Office of Insurance Regulation? 1. Twice every year 2. Four times each year 3. Once every three years 4. Once each year
Four times each year
Two months ago, Gerald, a licensed life and health agent, moved to a new house. Unfortunately, he never informed the Department of Financial Services of his new address. Which of the following is true: 1. He must pay a fine of $250. He must pay a fine of $500. He must pay a fine of $200. He must pay a fine of $175.
He must pay a fine of $250.
Which type of insurance company/companies is/are owned by its policyholders? I. A Mutual Insurer II. A Reciprocal Insurer III. A Reinsurer IV. A Stock Insurer II and IV I and II II, III, and IV I, II, and IV
I and II
Under Florida law, a licensee may be fined if he/she does not notify the Department of Financial Services of which of the following: I. A change of residence address II. A change of e-mail address III. A change of business address III only II and III I and III I, II, and III
I, II, and III
Under Florida law, in order to comply with record retention requirements for the reporting and accounting of funds, which of the following formats is/are acceptable? I. The original copy of a document II. A digital (scanned) copy of a document III. A photocopy of the document I only I and III I, II, and III I and II
I, II, and III
After it is issued, for how long is the license of an insurance agency valid? 1. 5 years 2. 10 years 3. 15 years 4. It is valid indefinitely.
It is valid indefinitely.
Jason, a licensed Florida agent, was subject to administrative actions from a governmental agency in Florida and a governmental agency in Georgia. Which of the following is true: 1. Jason has 30 days to report both actions to the Florida Department of Financial Services. 2. Jason has 45 days to report the Florida action to the Florida Department of Financial Services; he is not required to report the Georgia action. 3. Jason has 30 days to report the Florida action to the Florida Department of Financial Services; he is not required to report the Georgia action. 4. Jason has 45 days to report both actions to the Florida Department of Financial Services.
Jason has 30 days to report both actions to the Florida Department of Financial Services.
Rachel received her life and health license in April 2016. Her birthday is in June. By when must she complete her first series of continuing education classes? 1. June 30, 2018 2. April 30, 2018 3. April 1, 2018 4. June 1, 2018
June 30, 2018
The Office of Insurance Regulation does all of the following except: 1. Approves policy forms 2. Reviews rules and rates to ensure compliance with Florida law 3. Makes rating and underwriting rules 4. Examines the qualifications of insurance companies
Makes rating and underwriting rules
Which of the following reflects the unilateral nature of insurance contracts? 1. Only insureds are required to keep their promises to the insurer. 2. Only insurers are required to keep their promises to the insured. 3. Both insurers and insureds are required to keep their promises to each other. 4. Neither insurers nor insureds are required to keep their promises to each other.
Only insurers are required to keep their promises to the insured.
When may the information in an insurance/annuity application be used as evidence in any legal action (e.g., lawsuit) relative to the insurance policy or annuity contract? 1. Only when the application was attached to the policy/contract when it was issued 2. Only when the application contains specific language (provided by the State) which indicates the insurer reserves the right to do so 3. Always 4. Never
Only when the application was attached to the policy/contract when it was issued
Under the CFO, the Department of Financial Services has responsibility for which of the following: 1. Legislation regarding insurance 2. Managing licensed entities in insurance 3. Regulation, compliance, and enforcement of laws related to insurance 4. Adjudication of matters regarding insurance
Regulation, compliance, and enforcement of laws related to insurance
Which of the following is NOT a member of the Florida Financial Services Commission: 1. The Commissioner of Agriculture 2. The Commissioner of the Office of Insurance Regulation 3. The Governor 4. The Attorney General
The Commissioner of the Office of Insurance Regulation
Insurance agents are licensed by: The Department of Business and Professional Regulation The US Department of Commerce Their respective insurance companies The Department of Financial Services
The Department of Financial Services
The administrative body charged with managing the licensing process of agents is: 1. The Office of Financial Regulation 2. The Financial Services Commission 3. The Division of Insurance Agent and Agency Services 4. The Office of Insurance Regulation
The Division of Insurance Agent and Agency Services
Which of the following pieces of legislation was enacted by Congress in response to a decision by the Supreme Court which opened the door to reducing states regulatory role in the insurance business? 1. The Employee Retirement Income Security Act (ERISA) 2. The Clayton Anti-Trust Act 3. The McCarran-Ferguson Act 4. The Sherman Anti-Trust Act
The McCarran-Ferguson Act
As a general rule, which of the following is true: 1. The Office of Insurance Regulation handles matters relating to agents and agencies; the Department of Financial Services handles matters relating to insurance companies. 2. The Office of Insurance Regulation handles matters relating to agents, agencies, and insurance companies. 3. The Office of Insurance Regulation handles matters relating to insurance companies; the Department of Financial Services handles matters relating to agents and agencies. 4. The Department of Financial Services handles matters relating to agents, agencies, and insurance companies.
The Office of Insurance Regulation handles matters relating to insurance companies; the Department of Financial Services handles matters relating to agents and agencies.
Under Florida statute, assisting an unauthorized insurer in conducting business in the state of Florida is punishable as a: 1. First-degree felony 2. Second-degree felony 3. Third-degree felony 4. Third-degree misdemeanor
Third-degree felony
When a licensee writes insurance policies that provide coverage to the licensee, the licensee's family, or close business/personal associates, the practice is known as writing ___. 1. controlled business 2. primary and secondary insurance 3. closed business 4. limited markets
controlled business
The phrase "coordination of benefits" is often used in discussions dealing with ___. 1. excessive claims 2. insurance fraud 3. duplication of coverage 4. claims after cancellation
duplication of coverage
When a licensee submits fraudulent signatures on an application or policy-related document, he/she has committed a ___. 1. misdemeanor of the second degree 2. felony of the first degree 3. felony of the third degree 4. felony of the second degree
felony of the third degree
In addition to private insurers and government insurers, there is a third type of insurer known as a: 1. mutual insurer 2. reciprocal insurer 3 self-insurer 4. reinsurer
self-insurer
The practice of telling a client that an extra coverage is actually included when it is not is known as ___. 1. coercion 2. churning 3. sliding 4. twisting
sliding
The practice of telling an applicant that a certain coverage is required by law when that coverage is not required is known as ___. 1. churning 2. twisting 3. coercion 4. sliding
sliding
The attempt to persuade any person to purchase an insurance product is known as ___. 1. solicitation 2. effectuation 3. negotiating 4. transacting
solicitation
One of the primary goals of a ___ is to generate a good return for its owners. 1. fraternal benefit society 2. mutual insurance company 3. reciprocal insurance association 4. stock insurance company
stock insurance company