220 Exam Florida Statutes Practice A+
Questions and Answers Verified Solutions
Latest Update 2026/2027
Question:
Why are Professional Employer Organizations (PEO) or Employee Leasing Companies not exempt
from state regulation?
Answer:
A. Florida Statute 468.529 prohibits PEOs from sponsoring self-insured health plans.
B. Both of the answers are correct
C. None of the answers are correct
D. Even though a purported "co-employer" relationship exist, the
state does not recognize an employee/employer relationship with the employee and the PEO since
the PEO does not control the hiring and firing of employees, etc. Incorrect
BOTH ARE CORRECT
Question:
What lines of insurance are customer representatives qualified to write?
Answer:
Any classes of insurance that his or her appointing general lines agent or agency is currently
authorized to transact
Question:
What is meant by the term "unauthorized insurer"?
Answer:
Any insurer who is not authorized by the state of Florida.
Question:
What is meant by the term "foreign insurer"?
,Answer:
C. One who
formed their company in any other state (other than Florida) but within the United States, its
territories or possessions.
Question:
What are the penalties for diverting or misappropriating "trust funds"?
Answer:
The penalties range from first-degree misdemeanor to first-degree felony.
Question:
What is meant by the term "Exchange of Business"?
Answer:
An agent may place business with an insurer for which he or she is not appointed as an agent as
long as he or she is appointed for such business by another insurer.
Question:
What is included in "misrepresentation of insurance applications?"
Answer:
A. Knowingly making a false or fraudulent
written or oral statement or representation on or relative to any application or negotiation for
insurance policy for the purpose of obtaining a fee, commission, or any other benefit.
Question:
An Alien Insurer is:
Answer:
An insurer formed in a country other than the United States
Question:
Describe one goal of ERISA.
, Answer:
To encourage individual employers to establish employee health plans for that employer's
employees and dependents
Question:
An agent, customer representative or adjust who diverts or misappropriates funds belonging to an
insurer or others (trust funds) may be held responsible as follows:
Answer:
A. If the diverted
or misappropriated funds are $300 or less, the licensee can be charged with a first-degree
misdemeanor Incorrect
B. If the diverted or misappropriated funds are hundred thousand
dollars or more, the licensee can be charged with a first-degree felony
C. If the diverted or misappropriated funds are $20,000 or more but
less than $100,000, the licensee can be charged with a second- degree felony
D. Any of the answers are correct
any are correct
Question:
What are the requirements for a licensee who changes his or her name, residence address, principal
business street address, or mailing address?
Answer:
D. Each licensee must notify the
department in writing within 30 days of any change of name, residence address, principal business
street address, or mailing address.
Question:
What is meant by the term "Department"?
Answer:
The Florida Department of Financial Services
Question:
Rebating of a portion of an agent's commission is permitted:
Questions and Answers Verified Solutions
Latest Update 2026/2027
Question:
Why are Professional Employer Organizations (PEO) or Employee Leasing Companies not exempt
from state regulation?
Answer:
A. Florida Statute 468.529 prohibits PEOs from sponsoring self-insured health plans.
B. Both of the answers are correct
C. None of the answers are correct
D. Even though a purported "co-employer" relationship exist, the
state does not recognize an employee/employer relationship with the employee and the PEO since
the PEO does not control the hiring and firing of employees, etc. Incorrect
BOTH ARE CORRECT
Question:
What lines of insurance are customer representatives qualified to write?
Answer:
Any classes of insurance that his or her appointing general lines agent or agency is currently
authorized to transact
Question:
What is meant by the term "unauthorized insurer"?
Answer:
Any insurer who is not authorized by the state of Florida.
Question:
What is meant by the term "foreign insurer"?
,Answer:
C. One who
formed their company in any other state (other than Florida) but within the United States, its
territories or possessions.
Question:
What are the penalties for diverting or misappropriating "trust funds"?
Answer:
The penalties range from first-degree misdemeanor to first-degree felony.
Question:
What is meant by the term "Exchange of Business"?
Answer:
An agent may place business with an insurer for which he or she is not appointed as an agent as
long as he or she is appointed for such business by another insurer.
Question:
What is included in "misrepresentation of insurance applications?"
Answer:
A. Knowingly making a false or fraudulent
written or oral statement or representation on or relative to any application or negotiation for
insurance policy for the purpose of obtaining a fee, commission, or any other benefit.
Question:
An Alien Insurer is:
Answer:
An insurer formed in a country other than the United States
Question:
Describe one goal of ERISA.
, Answer:
To encourage individual employers to establish employee health plans for that employer's
employees and dependents
Question:
An agent, customer representative or adjust who diverts or misappropriates funds belonging to an
insurer or others (trust funds) may be held responsible as follows:
Answer:
A. If the diverted
or misappropriated funds are $300 or less, the licensee can be charged with a first-degree
misdemeanor Incorrect
B. If the diverted or misappropriated funds are hundred thousand
dollars or more, the licensee can be charged with a first-degree felony
C. If the diverted or misappropriated funds are $20,000 or more but
less than $100,000, the licensee can be charged with a second- degree felony
D. Any of the answers are correct
any are correct
Question:
What are the requirements for a licensee who changes his or her name, residence address, principal
business street address, or mailing address?
Answer:
D. Each licensee must notify the
department in writing within 30 days of any change of name, residence address, principal business
street address, or mailing address.
Question:
What is meant by the term "Department"?
Answer:
The Florida Department of Financial Services
Question:
Rebating of a portion of an agent's commission is permitted:
