2-15 Florida Laws Exam Questions
with Verified Solutions
office of insurance regulation - ANSWER-- mission is to promote the public welfare by
maintaining the solvency of insurance companies
- has primary responsibility for regulation, compliance and enforcement of statutes
related to the business of insurance and the monitoring of industry markets
- insurance polices forms used in Florida are approved by the Office of Insurance
Regulation (OIR)
who administers insurance laws in Florida? - ANSWER-- chief financial officer
- financial services commission
- commissioner of OIR
bureau of unclaimed property - ANSWER-- chief financial officer oversees this
- holds unclaimed property accounts valued at more than $1 billion, mostly from
dormant accounts in financial institutions, insurance and utility companies, securities
and trust holdings
who holds hearings and why? - ANSWER-Financial Services Commission; for any
purpose within the scope of the insurance code deemed necessary
- person engaging in unfair competition/unfair or deceptive act
- person engaging in business of insurance without a license
- best interest of the public would be served
licensing - ANSWER-a licensee may not transact insurance business in Florida until the
licensee is appointed by an insurer.
ppl looking to get a license must meet eligibility requirements
what are the eligibility requirements for licensing? - ANSWER-- must be at least 18
must be us citizen or legal alien
- must be florida resident
- may not be employee of US Department of Veterans Affairs
- may not be a funeral director or direct disposer
- complete a 40-hr pre-licensing education course
- pass the insurance state licensing exam
- must be trustworthy and competent
continuing education after obtaining license - ANSWER-agent needs to abide by the
following guidelines every 2 yrs:
,- 24hrs of continuing education for agents licensed less than 6 yrs; 20hrs for agents
licensed more than 6 yrs
- any continuing education must include a 5hr min in ethics
- pay license fees, appointment and renewal fee
- continue to be appointed with an insurance company
who has the power to suspend or revoke a license and when can they do so? -
ANSWER-Chief Financial Officer; when agent violates the Insurance Code
- CFO has authority to issue fines or order probation
who is an agent? - ANSWER-individual who has been authorized by an insurer to be its
representative and to perform all the following act:
- solicit applications for insurance
- collect premiums from policy owners
- render services to prospects and clients
- field underwriting if necessary
appointment - ANSWER-authority given to an agent to transact business on behalf of
the insurer
what happens when an agent changes their address? - ANSWER-Department of
Financial Services must be notified within 30 days
what happens if an agent is found guilty of a felony? - ANSWER-they must notify the
department within 30 days
agencies - ANSWER-- insurance agency is any business location where insurance
transactions take place that can only be performed by licensed insurance agents
- there must be an agent in charge at each licensed agency location where insurance
transactions take place
- licensed insurance agent may be the agent in charge of additional branch office
locations of the agency as long as insurance activities do not occur at any location when
the agent is not physically present
excess business in florida - ANSWER-excess business is permitted when an agent's
own company is not able to write the amount of insurance requested by the applicant
- licensed insurer may place excess or rejected risks with any other authorized insurer
w/o being required to secure an appointment as such to other insurer
excess business - ANSWER-portion of a risk above the limits of that which the agent's
own insurer will accept
excess charges - ANSWER-occur when an agent knowingly collects money for a
premium or an additional charge for insurance that is not provided in the polict
, ERISA (florida) - ANSWER-erisa supersedes Florida state law relating to employee
retirement plans.
savings clause in erisa protects the following areas of regulation:
- insurance
- banking
- securities agent responsibilites
solicitation law - ANSWER-spells out the info and procedures required of all agents and
insurers when proposing life insurance to a prospective buyer
replacement rule - ANSWER-sets forth the requirements to be followed by insurance
companies and agents when a proposal is being made in which a prospective life
insurance buyer will be replacing existing insurance contracts with the proposed new
insurance
code of ethics - ANSWER-established a broad outline defining appropriate business
behavior for life insurance agents
replacement and regulations - ANSWER-replacement is strictly regulated and required
full disclosure by both the agent and the replacing insurance company.
- replacement regulations exist to assure that purchasers receive specified info and it
also reduces the chance for misrepresentation
duties of replacing agent - ANSWER-- present to the applicant a notice regarding
replacement that is signed by both the applicant and the agent. a copy must be left with
the applicant
- obtain a list of all existing life insurance/annuity policies to be replaced including policy
#s and the names of all companies being replaced
- leave the applicant with the original or a copy of written or printed communications
used for presentation to the applicant
- submit to the replacing insurance company a copy of Replacement Notice with the
application
- agent must disclose the possible tex consequences of replacing or exchanging an
existing annuity or life insurance policy
duties of replacing insurance company - ANSWER-- require from the agent a list of the
applicant's life insurance or annuity contracts to be replaced and a copy of the
replacement notice provided to the applicant
- send each existing insurance company a written communication advising of the
proposed replacement within a specified period of time of the date that the application is
received in the replacing insurance company's home or regional office.
- a policy summary or ledger statement containing the policy data on the proposed life
insurance or annuity must be included
what is required for replacement - ANSWER-- written comparison and summary
statement at the policyowner's request
with Verified Solutions
office of insurance regulation - ANSWER-- mission is to promote the public welfare by
maintaining the solvency of insurance companies
- has primary responsibility for regulation, compliance and enforcement of statutes
related to the business of insurance and the monitoring of industry markets
- insurance polices forms used in Florida are approved by the Office of Insurance
Regulation (OIR)
who administers insurance laws in Florida? - ANSWER-- chief financial officer
- financial services commission
- commissioner of OIR
bureau of unclaimed property - ANSWER-- chief financial officer oversees this
- holds unclaimed property accounts valued at more than $1 billion, mostly from
dormant accounts in financial institutions, insurance and utility companies, securities
and trust holdings
who holds hearings and why? - ANSWER-Financial Services Commission; for any
purpose within the scope of the insurance code deemed necessary
- person engaging in unfair competition/unfair or deceptive act
- person engaging in business of insurance without a license
- best interest of the public would be served
licensing - ANSWER-a licensee may not transact insurance business in Florida until the
licensee is appointed by an insurer.
ppl looking to get a license must meet eligibility requirements
what are the eligibility requirements for licensing? - ANSWER-- must be at least 18
must be us citizen or legal alien
- must be florida resident
- may not be employee of US Department of Veterans Affairs
- may not be a funeral director or direct disposer
- complete a 40-hr pre-licensing education course
- pass the insurance state licensing exam
- must be trustworthy and competent
continuing education after obtaining license - ANSWER-agent needs to abide by the
following guidelines every 2 yrs:
,- 24hrs of continuing education for agents licensed less than 6 yrs; 20hrs for agents
licensed more than 6 yrs
- any continuing education must include a 5hr min in ethics
- pay license fees, appointment and renewal fee
- continue to be appointed with an insurance company
who has the power to suspend or revoke a license and when can they do so? -
ANSWER-Chief Financial Officer; when agent violates the Insurance Code
- CFO has authority to issue fines or order probation
who is an agent? - ANSWER-individual who has been authorized by an insurer to be its
representative and to perform all the following act:
- solicit applications for insurance
- collect premiums from policy owners
- render services to prospects and clients
- field underwriting if necessary
appointment - ANSWER-authority given to an agent to transact business on behalf of
the insurer
what happens when an agent changes their address? - ANSWER-Department of
Financial Services must be notified within 30 days
what happens if an agent is found guilty of a felony? - ANSWER-they must notify the
department within 30 days
agencies - ANSWER-- insurance agency is any business location where insurance
transactions take place that can only be performed by licensed insurance agents
- there must be an agent in charge at each licensed agency location where insurance
transactions take place
- licensed insurance agent may be the agent in charge of additional branch office
locations of the agency as long as insurance activities do not occur at any location when
the agent is not physically present
excess business in florida - ANSWER-excess business is permitted when an agent's
own company is not able to write the amount of insurance requested by the applicant
- licensed insurer may place excess or rejected risks with any other authorized insurer
w/o being required to secure an appointment as such to other insurer
excess business - ANSWER-portion of a risk above the limits of that which the agent's
own insurer will accept
excess charges - ANSWER-occur when an agent knowingly collects money for a
premium or an additional charge for insurance that is not provided in the polict
, ERISA (florida) - ANSWER-erisa supersedes Florida state law relating to employee
retirement plans.
savings clause in erisa protects the following areas of regulation:
- insurance
- banking
- securities agent responsibilites
solicitation law - ANSWER-spells out the info and procedures required of all agents and
insurers when proposing life insurance to a prospective buyer
replacement rule - ANSWER-sets forth the requirements to be followed by insurance
companies and agents when a proposal is being made in which a prospective life
insurance buyer will be replacing existing insurance contracts with the proposed new
insurance
code of ethics - ANSWER-established a broad outline defining appropriate business
behavior for life insurance agents
replacement and regulations - ANSWER-replacement is strictly regulated and required
full disclosure by both the agent and the replacing insurance company.
- replacement regulations exist to assure that purchasers receive specified info and it
also reduces the chance for misrepresentation
duties of replacing agent - ANSWER-- present to the applicant a notice regarding
replacement that is signed by both the applicant and the agent. a copy must be left with
the applicant
- obtain a list of all existing life insurance/annuity policies to be replaced including policy
#s and the names of all companies being replaced
- leave the applicant with the original or a copy of written or printed communications
used for presentation to the applicant
- submit to the replacing insurance company a copy of Replacement Notice with the
application
- agent must disclose the possible tex consequences of replacing or exchanging an
existing annuity or life insurance policy
duties of replacing insurance company - ANSWER-- require from the agent a list of the
applicant's life insurance or annuity contracts to be replaced and a copy of the
replacement notice provided to the applicant
- send each existing insurance company a written communication advising of the
proposed replacement within a specified period of time of the date that the application is
received in the replacing insurance company's home or regional office.
- a policy summary or ledger statement containing the policy data on the proposed life
insurance or annuity must be included
what is required for replacement - ANSWER-- written comparison and summary
statement at the policyowner's request
