FLORIDA 2 15 INSURANCE FINAL 2026 POLICY
AND UNDERWRITING STUDY SET COMPLETE
PAPER AND SOLUTIONS
◉ Fraternal Benefit Societies.
Answer: Must be nonprofit, have a lodge system, and offer insurance
to its members only
◉ Service Providers.
Answer: Contract for and sell medical and hospital care services.
Participants are known as subscribers.
◉ Home Service Insurer.
Answer: Insurer that offers relatively small policies with premiums
payable on a weekly basis.
◉ Captive Agents.
Answer: A.k.a. Career agents
Works for only one insurer and sells only that insurers products
◉ Independent Agents.
,Answer: Is self-governing and actually works for himself. This
affords him the versatility to represent several insurers and their
different insurance products.
◉ Special Agents.
Answer: Usually not license and don't sell insurance. Assist
insurance companies field representatives.
◉ Career Agency System.
Answer: (GA) - Build sales staffs and agents are treated as
employees. They are recruited and trained. A principal of the
company supervises agents.
◉ Personal Producing General Agency System.
Answer: (PPGA) - The agent supplies his own working environment.
Agents hired by a PPGA are considered employees of the PPGA, not
the insurance company, and are supervised by the regional salary.
◉ Independent Agency System.
Answer: Agents represent several insurers through signed contracts
and are paid on commission or fee basis, not through salary.
◉ Regulating the business of insurance.
Answer: Legislation
,The Court System
State Insurance Departments
◉ Paul v. Virginia.
Answer: - State tried to control insurance domiciled from another
state.
- U.S. Supreme Court sided against insurance company
- Upholding the right of sate to regulate insurance
- States WIN
◉ United States v. Southeastern Underwriters Association (SEUA).
Answer: - Ruling is a form of interstate commerce
- Should be regulated by the federal government
- Fed Gov. WINS
◉ The McCarran-Ferguson Act.
Answer: - Gave back some regulatory authority to the states
- Did not provide the states to regulate individually
- Insurance regulated by state law "is in the publics best interest"
◉ Intervention by the FTC.
, Answer: - FTC tried to control the advertising and sales literature
used by the health insurance industry
- Thus, supreme court held that the McCarran-Ferguson Act
disallowed this
- FTC tried even harder to force more federal control
◉ Intervention by SEC.
Answer: - Dealing with variable annuities
- Securities and Exchange Commission (SEC) should regulate the
variable annuities (since they're used for investments) & variable
life insurance.
- Therefore, agents must obey the rules to both SEC and state
regulation.
◉ Fair Credit Reporting Act.
Answer: - Fair and accurate report of information about consumers
- Insurers must inform them about any investigations being made
- Then insurers must let the applicants know the name of the
reporting agency
◉ Financial Services Modernization Act.
Answer: - Revoking the Glass-Steagall Act
AND UNDERWRITING STUDY SET COMPLETE
PAPER AND SOLUTIONS
◉ Fraternal Benefit Societies.
Answer: Must be nonprofit, have a lodge system, and offer insurance
to its members only
◉ Service Providers.
Answer: Contract for and sell medical and hospital care services.
Participants are known as subscribers.
◉ Home Service Insurer.
Answer: Insurer that offers relatively small policies with premiums
payable on a weekly basis.
◉ Captive Agents.
Answer: A.k.a. Career agents
Works for only one insurer and sells only that insurers products
◉ Independent Agents.
,Answer: Is self-governing and actually works for himself. This
affords him the versatility to represent several insurers and their
different insurance products.
◉ Special Agents.
Answer: Usually not license and don't sell insurance. Assist
insurance companies field representatives.
◉ Career Agency System.
Answer: (GA) - Build sales staffs and agents are treated as
employees. They are recruited and trained. A principal of the
company supervises agents.
◉ Personal Producing General Agency System.
Answer: (PPGA) - The agent supplies his own working environment.
Agents hired by a PPGA are considered employees of the PPGA, not
the insurance company, and are supervised by the regional salary.
◉ Independent Agency System.
Answer: Agents represent several insurers through signed contracts
and are paid on commission or fee basis, not through salary.
◉ Regulating the business of insurance.
Answer: Legislation
,The Court System
State Insurance Departments
◉ Paul v. Virginia.
Answer: - State tried to control insurance domiciled from another
state.
- U.S. Supreme Court sided against insurance company
- Upholding the right of sate to regulate insurance
- States WIN
◉ United States v. Southeastern Underwriters Association (SEUA).
Answer: - Ruling is a form of interstate commerce
- Should be regulated by the federal government
- Fed Gov. WINS
◉ The McCarran-Ferguson Act.
Answer: - Gave back some regulatory authority to the states
- Did not provide the states to regulate individually
- Insurance regulated by state law "is in the publics best interest"
◉ Intervention by the FTC.
, Answer: - FTC tried to control the advertising and sales literature
used by the health insurance industry
- Thus, supreme court held that the McCarran-Ferguson Act
disallowed this
- FTC tried even harder to force more federal control
◉ Intervention by SEC.
Answer: - Dealing with variable annuities
- Securities and Exchange Commission (SEC) should regulate the
variable annuities (since they're used for investments) & variable
life insurance.
- Therefore, agents must obey the rules to both SEC and state
regulation.
◉ Fair Credit Reporting Act.
Answer: - Fair and accurate report of information about consumers
- Insurers must inform them about any investigations being made
- Then insurers must let the applicants know the name of the
reporting agency
◉ Financial Services Modernization Act.
Answer: - Revoking the Glass-Steagall Act
