Florida Laws and Rules Pertinent to Insurance Exam Questions and Correct Answers (A Graded
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Course
Florida insurance
Institution
Florida Insurance
Florida Laws and Rules Pertinent to Insurance Exam Questions and Correct Answers (A Graded Florida Laws and Rules Pertinent to Insurance Exam Questions and Correct Answers (A Graded
Florida Laws and Rules Pertinent to Insurance Exam Questions and Correct Answers (A Graded ) A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast? - ANSWER Stock company is owned by its shareholders. Mutual company is owned by its policyholders. Which of the following situations does NOT apply to the Florida Replacement Rule? *An existing policy is reissued with a reduction in cash value *A new polic y is issued while an existing one is surrendered *An existing policy is subject to extensive borrowing * An existing policyholder purchases an additional policy from the same insurer - ANSWER -An existing policyholder purchases an additional policy from th e same insurer Florida's Replacement Rule applies to all of these situations EXCEPT "An existing policyholder purchases an additional policy from the same insurer". An example of an unfair claims practice would be - ANSWER -failing to effectuate promp t, fair, and equitable settlements of a claim In Florida, an insurer domiciled and incorporated in this state is called a(n) - ANSWER -domestic company Which of the following is NOT considered rebating? * Sharing commissions with an agent licensed in the same line of business * Returning premium to a client as an inducement for purchasing a policy * Giving something of value to an insured in exchange for their business * Offering special dividends - ANSWER -Sharing commissions with an agent licensed in the same line of business Which of the following is NOT a consequence for placing business with an unauthorized insurer? *Third degree felony *First degree misdemeanor * Insurance license revoked *Resp onsible for unpaid claims - ANSWER -The correct answer is "First degree misdemeanor". All of these are possible consequences for placing business with an unauthorized insurer EXCEPT the conviction of a first degree misdemeanor. In Florida, a health polic y that is paid on a quarterly basis requires a grace period of - ANSWER -31 days During the course of an insurance transaction, if an agent makes a false or incomplete statement, he/she could be found guilty of - ANSWER misrepresentation The coordinati on of benefits (COB) provision exists in order to - ANSWER -avoid duplication of benefit payments The purpose of the coordination of benefits (COB) provision, found only in group health plans, is to avoid duplication of benefit payments. 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 - ANSWER -Florida Replacement Rule When is a Group Health policy required to provide coverage for a newborn child? - ANSWER -At the moment of birth What is Florida's definition of Life insurance replacement? - ANSWER A transaction in which a new policy is bought and an old policy is termin ated What is required in the Florida Employee Health Care Access Act? - ANSWER -Small group benefit plans are to be issued on a "guaranteeissue" basis What do families pay that are covered by the Florida Healthy Kids Corporation? - ANSWER -A portion o f the premium When replacing or exchanging an annuity, the agent must disclose to the annuitant - ANSWER -the possible tax ramifications as a result of the transaction An agent must disclose the possible tax consequences of replacing or exchanging an existing annuity or life insurance policy. Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency? - ANSWER -The amount of premium collected at this location All of the following will result in the suspension of an agent's license EXCEPT - ANSWER -acting with fiduciary responsibility What type of insurance company is domiciled in England, but conducts business in Florida? - ANSWER -Alien
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