Unit 26 Flashcards
The general powers and duties of the Office of Insurance Regulation include all of the following EXCEPT:
(A) to enforce the Florida Insurance Code
(B) to determine if an insurance company has violated the Insurance
(C) to enact statutes to govern the insurance industry
(D) to disseminate information regarding its activities
(C) to enact statutes to govern the insurance industry
The major areas of regulation by the Office of Insurance Regulation include which of the following?
(A) Policing against unauthorized insurance activities
(B) Proposing legislation to regulate the insurance industry
(C) Enacting new insurance laws
(D) Enforcing criminal penalties against those who violate the Insurance Code
(A) Policing against unauthorized insurance activities
All of the following are reasons the insurance industry is subject tot governmental regulation EXCEPT:
(A) the public trust aspect of the business
(B) the financial impact of the business on the economy
(C) the need to monitor the premium payment practices of the public
(D) the duty to protect the public due to the technical nature of insurance contracts
(C) the need to monitor the premium payment practices of the public
What two authorities can impose penalties for violation of state insurance laws?
(A) Chief Financial Officer and the legislature
(B) Chief Financial Officer and the courts
(C) Legislature and the courts
(D) Courts and the national Association of Insurance Commissioners
(B) Chief Financial Officer and the courts
A fraternal life insurance organization can operate as any of the following EXCEPT:
(A) corporation
(B) society
(C) association
(D) charitable trust
(D) charitable trust
An insurance company can be any of the following EXCEPT:
(A) domestic and admitted
(B) foreign and non admitted
(C) domestic and alien
(D) alien and nonadmitted
(C) domestic and alien
In insurance regulatory language, which of the following properly identifies a “foreign” insurance company?
(A) Insurance company whose home office is in another country
(B) Insurance company whose home office is in another state
(C) Insurance company that has no local representative
(D) Insurance company whose policies are in a foreign language
(C) domestic and alien
The definition of transacting insurance includes all of the following EXCEPT:
(A) soliciting a contract of insurance
(B) negotiating a contract of insurance
(C) underwriting a contract of insurance
(D) effectuating a contract of insurance
(C) underwriting a contract of insurance
Of the following terms, which best describes the act of replacing existing life insurance with a new life insurance policy based upon incomplete or incorrect representations?
(A) Twisting
(B) Rebating
(C) Embezzlement
(D) Concealment
(A) Twisting
All of the following activities could result in the suspension of an agent’s license EXCEPT:
(A) misrepresenting the financial condition of an insurance company
(B) selling any replacement policy that causes an insured to lapse an existing policy
(C) attaining a license for the sole purpose of handling controlled business
(D) demonstrating incompetency to transact business as an insurance agent
(B) selling any replacement policy that causes an insured to lapse an existing policy
Which of the following would be considered an unfair claim practice?
(A) Implementing standards for proper investigation
(B) Denying a claim after reasonable investigation of the facts
(C) Misrepresenting instance policy provisions affecting a loss
(D) Acting promptly on claims communication
(C) Misrepresenting instance policy provisions affecting a loss
All of the following actives violate the Florida Insurance Code EXCEPT:
(A) dividing commission on a life insurance policy with any licensed agent
(B) dividing commission on a life insurance policy with a licensed health agent
(C) dividing commission on a life insurance policy with another agent who is licensed and appointed to sell the same line of insurance
(D) dividing commission on a life insurance policy with a licensed life insurance broker who regularly transacts life insurance
(C) dividing commission on a life insurance policy with another agent who is licensed and appointed to sell the same line of insurance
Violation of the controlled business statute occurs if an agent sells most of her business to:
(A) employees of a business owned by her father
(B) members of her civic club
(C) city and county employees
(D) members of the local medical society
(A) employees of a business owned by her father
Sliding consists of all of the following activities EXCEPT:
(A) telling an applicant that certain ancillary coverage is required by law when it is not
(B) advising a client that certain ancillary coverage is concluded at no additional charge when such a charge is required
(C) charging an applicant for ancillary coverage over the cost of coverage applied for without the applicant’s consent
(D) recommending that a client take cash value from a policy to make other investments
(D) recommending that a client take cash value from a policy to make other investments
Which of the following statements is CORRECT about the Department of Financial Service’s right to examine an agent’s records?
(A) An examination can be conducted at any time to discover any unfair trade practices
(B) An agent’s records involving a premium transaction are confidential and not subject to examination
(C) The Chief Financial Officer may examine an agent’s records only once per year, unless good cause is shown for more frequent examinations
(D) The statutes do not give the department an absolute right to examine the affairs of insurance licensees to discover unfair trade practices
(A) An examination can be conducted at any time to discover any unfair trade practices
