FLORIDA STATUTES UPDATED EXAM SCRIPT QUESTIONS
AND ANSWERS RATED A+
✔✔Authorized/ Admitted Companies - ✔✔insurers who meet the state's financial
requirements and are approved to transact business in the state (legal insurer)
✔✔Stock Companies - ✔✔are owned by stockholders who provide the capital
necessary to establish and operate the insurance company and who share in any profits
or losses.
✔✔Mutal Companies - ✔✔are owned by the policyowners and issue participating
policies.
✔✔Risk Retention Group (RRG) - ✔✔is a liability insurance company owned by its
members.
✔✔Unlicensed Entities - ✔✔transact in the state may cause problems such as: potential
criminal activity, impacted on authorized insurers, potential of unpaid claims, State and
Federal won't cover unpaid claims, an impact of health-care providers from unpaid
claims.
✔✔Certificate of Authority - ✔✔a license for the state department of insurance and meet
any financial requirements set by the state.
✔✔Fiduciary - ✔✔is someone in a position of trust.
✔✔Fiduciary Responsiblity - ✔✔when an agent handles the funds of the insured and
the insurer.
✔✔Separate Account - ✔✔where an agent must keep funds belonging to each insurer
for which is not appointed and to allow the Department of Office to property audit such
funds.
✔✔Market Conduct - ✔✔describes the way companies and producers should conduct
their business.
✔✔Misrepresentation - ✔✔an illegal act that involves oral statements that issue, publish
or circulate any illustration or sales material that is false, misleading, or deceptive as to
a policy benefits or terms, the payment of dividends, etc.
✔✔Rebating - ✔✔any inducement offered to the insured in the sale of insurance
products that is not specified in the policy.
AND ANSWERS RATED A+
✔✔Authorized/ Admitted Companies - ✔✔insurers who meet the state's financial
requirements and are approved to transact business in the state (legal insurer)
✔✔Stock Companies - ✔✔are owned by stockholders who provide the capital
necessary to establish and operate the insurance company and who share in any profits
or losses.
✔✔Mutal Companies - ✔✔are owned by the policyowners and issue participating
policies.
✔✔Risk Retention Group (RRG) - ✔✔is a liability insurance company owned by its
members.
✔✔Unlicensed Entities - ✔✔transact in the state may cause problems such as: potential
criminal activity, impacted on authorized insurers, potential of unpaid claims, State and
Federal won't cover unpaid claims, an impact of health-care providers from unpaid
claims.
✔✔Certificate of Authority - ✔✔a license for the state department of insurance and meet
any financial requirements set by the state.
✔✔Fiduciary - ✔✔is someone in a position of trust.
✔✔Fiduciary Responsiblity - ✔✔when an agent handles the funds of the insured and
the insurer.
✔✔Separate Account - ✔✔where an agent must keep funds belonging to each insurer
for which is not appointed and to allow the Department of Office to property audit such
funds.
✔✔Market Conduct - ✔✔describes the way companies and producers should conduct
their business.
✔✔Misrepresentation - ✔✔an illegal act that involves oral statements that issue, publish
or circulate any illustration or sales material that is false, misleading, or deceptive as to
a policy benefits or terms, the payment of dividends, etc.
✔✔Rebating - ✔✔any inducement offered to the insured in the sale of insurance
products that is not specified in the policy.
