An agent’s license can be suspended or revoked by
replacing an existing insurance policy with a new one
not meeting annual sales quota
issuing a binding receipt
writing primarily controlled business
The correct answer is “writing primarily controlled business”. An agent’s license can be suspended or revoked by writing primarily controlled business.
What is the purpose of the Insurance Guaranty Fund Association?
Underwrites high-risk insurance applicants
Protects policyowners against insolvent insurance companies
Establishes underwriting guidelines for admitted insurers
Enforces Florida’s insurance regulations
Protect policyowners against insolvent insurance companies. If an insurance company becomes financially unable to pay claims, the Guaranty Fund steps in to pay covered claims up to certain limits, ensuring policyholders are protected even if their insurer fails
Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract
only when requested by the policyowner
twice each year
once each month
once each year
The correct answer is “once each year”. A variable annuity policyholder must be informed at least once each year of the accumulated value of the contract during the premium payment period.
Which entity approves the insurance policy forms used in Florida?
National Association of Insurance Commissioners (NAIC)
Office of Insurance Regulation (OIR)
Financial Services Commission (FSC)
Department of Financial Services (DFS)
The correct answer is “Office of Insurance Regulation (OIR)”. The insurance policy forms used in Florida are approved by the Office of Insurance Regulation (OIR).
Moody’s corporate bond index
It is a financial benchmark that measures the average yield (interest rate) on U.S. corporate bonds rated Aaa—the highest possible rating given by Moody’s Investors Service. This index reflects the borrowing cost for the most creditworthy corporations and is widely used as an indicator of corporate bond market conditions and as an alternative to U.S. Treasury yields in economic analysis.
Fraud = intentional deception.
Misrepresentation = false information, which can be innocent or negligent, not always intentional.
Age misstatement = a specific type of misrepresentation, usually corrected by adjusting benefits, not by voiding the policy.
Fraudulent Statement = If fraud is proven, the insurer can void the policy, deny claims, and in some cases, pursue criminal charges.
Misrepresentation = The insurer may rescind the policy or deny claims if the misrepresentation is material, even if there was no intent to deceive.
Age Misstatement = If an applicant misstates their age, most policies adjust benefits or premiums to what they would have been if the correct age had been given, rather than voiding the policy.
Entire Contract
is a standard provision that states the complete and final agreement between the insurer and the policyholder is contained within the written policy documents, including any attached endorsements, riders, and sometimes the application itself.
Only what is written in the contract counts. Verbal promises or outside documents not included in the contract are not legally binding.
An example of false advertising would be
Paid testimonials from celebrity endorsements
An insurer exaggerating its dividends in a magazine advertisement
An agent spending more than $25 on marketing gifts for a client
An insurer advertising in an insurance trade journal
The correct answer is “An insurer exaggerating its dividends in a magazine advertisement”. An insurance company may be judged guilty of false advertising if it exaggerates its dividends in a magazine advertisement.
Which of the following areas of state regulation is NOT protected by the savings clause in ERISA?
Commerce
Banking
Insurance
Securities
The correct answer is “Commerce”. All of these areas of state regulation are protected by the savings clause in ERISA EXCEPT for commerce.
Which of the following employees may NOT be excluded from a group life plan?
Seasonal workers
Part-time employees
Full-time employees after the probationary period
Full-time employees before the probationary period
The correct answer is “Full time employees after the probationary period”. All of these employees may be excluded from a group life plan except for “Full time employees after the probationary period”.
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?
Defamation
Rebating
Coercion
Misrepresentation
The correct answer is “Coercion”. A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition for a loan is guilty of coercion.
Which of the following situations does NOT apply to the Florida Replacement Rule?
An existing policyholder purchases an additional policy from the same insurer
An existing policy is reissued with a reduction in cash value
An existing policy is subject to extensive borrowing
A new policy is issued while an existing one is surrendered
The correct answer is “An existing policyholder purchases an additional policy from the same insurer”. Florida’s Replacement Rule applies to all of these situations EXCEPT “An existing policyholder purchases an additional policy from the same insurer”.
Upon reaching the limiting age, a disabled child may extend their health insurance coverage as a dependent
for up to an additional 10 years only
only if the child is incapable of employment and chiefly dependent on the policyowner
only if mentally disabled
only if physically disabled
The correct answer is “only if the child is incapable of employment and chiefly dependent on the policyowner”. Coverage may be extended if the handicapped child is incapable of employment and chiefly dependent on the policyowner.
Which two entities regulate variable annuities?
National Association of Insurance and Financial Advisors; and Securities Exchange Commission
Financial Industry Regulatory Authority; and Department of Financial Services
National Association of Insurance Commissioners; and Department of Financial Services
Department of Financial Services; and Securities Exchange Commission
The correct answer is “Department of Financial Services; and Securities Exchange Commission”. Variable annuities are regulated by both the Department of Financial Services and the Securities Exchange Commission.
Which of the following is NOT a consequence for placing business with an unauthorized insurer?
First degree misdemeanor
Insurance license revoked
Responsible for unpaid claims
Third degree felony
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.
Every resident agent must have and maintain at their place of business the usual and customary records pertaining to transactions under their license for at least how long?
3 years
1 year
5 years
7 years
The correct answer is “5 years”. Every resident agent must have and maintain at their place of business the usual and customary records pertaining to transactions under their license for at least 5 years following the final settlement or final adjudication of a criminal proceeding, civil litigation, or an administrative proceeding. Any person found to be in violation may be subject to a fine.
What is required in the Florida Employee Health Care Access Act?
All small group benefit plans have no lifetime benefit limits
Small group benefit plans are to be issued on a “conditionally-issue” basis
All small group benefit plans have a 60 day grace period
Small group benefit plans are to be issued on a “guarantee-issue” basis
The correct answer is “Small group benefit plans are to be issued on a “guarantee-issue” basis”. The provisions of the Florida Employee Health Care Access Act require that all small group health benefit plans be issued on a “guaranteed-issue” basis.
Florida resident insurance agents must complete __ hours of law and ethics continuing education every two years.
6
4
3
5
The correct answer is “4”. Florida requires that an insurance agent must complete 4 hours of continuing education on the subject of law and ethics every two years.
In what year was The Florida Office of Financial Regulation (OFR) created?
1993
2013
2003
1983
The correct answer is “2003”. The OFR was created in 2003 as the result of the Cabinet Reorganization Act of 2002.
Which of the following provisions is NOT required in HMO contracts/certificates?
Rates shall not be excessive
Seven-day grace period
No pre-existing exclusions for children
Enrollment
The correct answer is “Seven-day grace period”. This is inaccurate. A grace period of no less than 10 days must be expressly included in an HMO contract.
How many hours of continuing education must a newly licensed agent complete every two years?
16
8
24
4
The correct answer is “24”. A newly licensed agent must complete 24 hours of continuing education every 2 years.
Which of the following professional organizations has its code of ethics incorporated into Florida law?
The American College of Life Insurance
National Association of Insurance and Financial Advisors (NAIFA)
National Association of Insurance Commissioners (NAIC)
Financial Industry Regulatory Agency (FINRA)
The correct answer is “National Association of Insurance and Financial Advisors (NAIFA)”. The professional organization whose code of ethics is incorporated into Florida law, and whose responsibility is to establish the activities of agents is the National Association of Insurance and Financial Advisors.
A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy’s face value.
broker
viator agent
insurer
viatical settlement provider
The correct answer is “viatical settlement provider”. To receive a percentage of the policy face value, an owner of a life policy may sell the policy to a viatical settlement provider.
The Department of Financial Services serves as the receiver of any insurer placed into:
bankruptcy
receivership
indebtedness
foreclosure
The correct answer is “receivership”. The Department of Financial Services also serves as the Receiver of any insurer placed into receivership in Florida. The Division of Rehabilitation and Liquidation plans, coordinates and directs the receivership processes on behalf of the Department.
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Key Terms for Sales Meetings and Closing Deals8
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Cold email terms28
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Investment terms14
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Types of Life Insurance Policies Review Exam69
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Life Provisions, Riders, Options, and Exclusions30
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Completing the Application, Underwriting, and Delivering the Policy43
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Retirement and Other Insurance Concepts31
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Types of Health and Accident Policies40
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Health Insurance Policy Provisions, Clauses, and Riders33
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7 Social Insurance Review Exam1
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810
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925
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1043
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numbers7
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what I got wrong in the test25
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new test31
