FL General Insurance Flashcards
To boost her sales at the end of the year, Agent Trudy started offering potential clients a $250 cash gift card in exchange for purchasing a life insurance policy. Which ethical sales practice has Agent Trudy violated?
rebating. Agents cannot offer anything of value to induce someone to buy insurance, including a rebate of the premium, dividends, stocks or bonds, or paid employment. They also cannot pay or offer to pay anything of value that is not specified in the insurance contract. This unfair trade practice is known as rebating.
Zelda, a producer selling health insurance, assures a prospective applicant that the insurance company she represents is backed by the protections of the Florida Life and Health Insurance Guaranty Association. What is true about this kind of assurance?
It is prohibited at all times. It is an unfair trade practice to use the existence of the Florida Life and Health Insurance Guaranty Association, or the protections the association offers, for the purpose of selling insurance.
Which of the following penalties may the Office of Insurance Regulation impose if an agent intentionally represents an unauthorized insurer in Florida?
Agents who intentionally represent an unauthorized insurer commit a felony of the third degree. The Office may impose a fine of up to $10,000 for each willful violation.
Insurers must keep records of their insurance transactions for how many years after the transaction was completed?
5
ABC Company operates as a viatical settlement provider in Florida. For which of the following reasons can the Office of Insurance Regulation suspend or revoke ABC’s license?
issuing viatical settlement contracts that were approved in Texas but not Florida
Which of the following is a requirement to operate as an insurance agency in Florida?
obtaining a license or registration from the state
What are insurers legally required to maintain in order to guarantee the payment of insurance claims and benefits?
legal reserves. Florida requires insurers to maintain a minimum amount of legal reserves to guarantee the payment of life insurance claims and benefits.
The Office of Insurance Regulation can examine the business transactions, accounts, and records of domestic insurers as often as necessary, but must do so at least once every how many years?
five years
BBX Insurers terminated Henry’s appointment as its life insurance agent on December 1. How long will Henry remain eligible to be appointed as a life insurance agent by another insurer?
months If an agent’s appointment for a particular class of insurance has been terminated or not renewed, the agent remains eligible to be appointed as an agent for that line of business for 48 months. If the agent does not obtain an appointment during the 48-month period, then his or her qualification for that line of authority will expire.
Which entity protects policyowners, insureds, and beneficiaries if an insurer cannot perform its contractual obligations because of impairment or insolvency?
Florida Life and Health Guaranty Association
Which type of insurer is incorporated, owned by its policyholders, but does not have capital stock?
mutual insurer A mutual insurer is an incorporated insurer that is owned by its policyholders, who hold policies as their evidence of ownership. A mutual company does not have permanent capital stock and has a governing body elected by its policyholders.
An agent’s license can be suspended or revoked for all of the following reasons EXCEPT:
paying commissions to a licensed agency
An insurer must notify its current customers of its privacy policies or practices at least once every how often?
12 months
Transacting insurance includes all of the following EXCEPT:
Transacting insurance includes all of the listed acts except underwriting insurance policies.
ABC Insurance Company wants to become licensed in Florida to sell insurance products. Which of the following must it receive in order to transact insurance?
certificate of authority. The Director issues certificates of authority to qualified insurers, which permits them to transact insurance business in Florida. The certificate specifies the kinds of insurance that the insurer is authorized to transact.
