Unit 2 Flashcards
An insurance company organized and headquartered in Florida can be described as what type of company in Florida
Domestic
Producers are expected to adhere to standards to protect consumers EXCEPT
Assessing prospects financial ability to pay commissions
Which statement is NOT correct about types of insurers
Reinsurers usually deal with group policy-owners
Which statement regarding landmark cases and laws is NOT correct
The Federal Trade Commission (FTC) directly supervises all insurance marketing activities
Which statement regarding the National Association of Insurance Commissioners (NAIC) is NOT correct?
The NAIC is empowered to prosecute and punish criminal violators in the insurance industry
In an insurance transaction, licensed agents legally represent which of the following?
Insurer
In Florida, properly licensed and appointed agents may act as brokers in insurance transactions, in which case they may legally represent
The applicant and insured
A life insurance company organized in Illinois, with its home office in Philadelphia, is licensed to conduct business in Florida. In Florida this is a
Foreign company
Which of the following is NOT a service provider?
Lloyd’s of London
A reinsurer is a company that
Assumes a portion of the risk firm another insurer
The head of a state office of insurance regulation is generally responsible for all of the following EXCEPT
Making insurance laws
In addition to the state, the organization that regulates variable life and variable annuities is the
Securities and Exchange Commission (SEC)
The Buyers Guide is intended to accomplish all of the following EXCEPT
Ensure that the buyers obtain the lowest price for insurance
The State Guaranty Association guarantees
That a claim will be paid if an insurer becomes insolvent
All of the following methods support the sale of insurance through agents and brokers EXCEPT
Direct selling system
