Florida Laws and Rules Pertinent to Insurance Ch. 8 Already Passed

Florida Laws and Rules Pertinent to Insurance Ch. 8 Already Passed How many hours of continuing education must a newly licensed agent complete every two years 24 A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as a(n) broker dealer Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy? Notice to existing and replacing insurers of intention to replace Which of the following is considered to be misrepresentation? An agent guaranteeing a policy's dividends Florida's 14-day free-look period for life insurance policies begins at the date of delivery The Bureau of Unclaimed Property is overseen by the Chief Financial Officer W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim? The proceeds would be reduced based on whatever the premium would have been if purchased at age 59 An agent's license can be suspended or revoked by writing primarily controlled business An example of an unfair claims practice would be failing to effectuate prompt, fair and equitable settlements of a claim Florida requires that coverage for newborns begins "from the moment of birth" and continues for 18 months In Florida, when agents recommend changes be made for existing coverage, the agent must follow established procedures. The name of this rule is called the Florida Replacement Rule An applicant who pays the initial premium at the time of application is typically given a(n) conditional receipt How can an agent-in-charge have more than one location? Only if the agent-in-charge is present when insurance activity occurs The Florida Employee Health Care Access Act was established to make group health insurance available to employers with up to 50 employees In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n) foreign company Which of the following situations does NOT apply to the Florida Replacement Rule? An existing policyholder purchases an additional policy from the same insurer Which of the following is considered an accurate statement of an unfair trade practice? Twisting involves an agent using misrepresentation to convince a policy owner to cancel their current policy so that they can purchase a new life insurance policy with another company The act of an insurance company publishing misleading information about its policy's provisions is called false advertising Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund? 30 A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss? Twenty According to Florida Law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy? The premiums for the handicapped child are not paid The Financial Services Commission may hold hearings for any reason deemed necessary What is the main reason for regulating the insurance industry? Maintain the solvency of insurance companies An individual covered under a Group Life insurance policy is considered to be a(n) certificate holder Which of the following provisions is NOT required in HMO contracts/certificates? Seven-day grace period The minimum age at which a person can sign a life insurance application is 15 Which of the following acts is an agent NOT authorized to do on behalf of an insurer? Authorize claim payments What are adjustable rates for life policy loans in Florida based on? Moody's corporate bond index Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract once each year As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? Coercion What is the purpose of the Life and Health Insurance Guaranty Association? Protects policy owners against insolvent insurance companies According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant? at the time of application The coordination of benefits (COB) provision exists in order to avoid duplication of benefit payments Under an Individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured? Monthly Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA). 20 An agent selling Medicare Supplement policies must provide every applicant with a(n) Suitability form An insurance company can contest a life insurance contract due to application fraud within 2 years A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value. vatical settlement provider What do families pay that are covered by the Florida Healthy Kids Corporation? A portion of their premiums The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond 6 months What is Florida's definition of Life insurance replacement? A transaction in which a new policy is bought and an old policy is terminated J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? Twisting In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies? Naturopaths Association Plans that are designed to provide health benefits to their members are regulated by the state because they are insured by an authorized insurer According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase? Martial status What percentage of eligible persons must a policy cover in a noncontributory group? 100% If an agent would like to sell Variable annuities, which state examination must the agent pass? Life and Variable contracts Which of the following professional organizations has its code of ethics incorporated into Florida law? National Association of Insurance and Financial Advisors (NAIFA) Advertising gifts not to exceed ___ are allowed to be given by an agent to a prospective client. $25 In Florida, most life insurance policies have a contestability period of 2 years All of the following are Nonforfeiture Options EXCEPT Automatic Premium Loan Option All of the following are eligibility requirements for an association group EXCEPT Contributory plans require a minimum of 25 participants K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take? Pay monetary restitution to the client Which of the following is NOT required in the Outline of Coverage for a health insurance policy? Projection of the policy's future costs Group Life policies in Florida are required to contain a conversion privilege that allows for conversion to an individual policy for a stated period of time When replacing or exchanging an annuity, the agent must disclose to the annuitant the possible tax ramifications as a result of the transaction All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT An agent's commission A foreign insurance company doing business in Florida is a company that was formed under the laws of another state Which entity approves the insurance policy forms used in Florida? Office of Insurance Regulation (OIR) Which of the following is a standard provision of the conversion privileges in a Group Life policy? Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis In Florida, a health policy that is paid on a quarterly basis requires a grace period of 31 days J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of? Coercion A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast? Stock company is owned by its shareholders. Mutual company is owned by its policyholders Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy? Limitation on pre-exhisting conditions for up to 12 months T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as fiduciary responsibility Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency? The amount of premium collected at this location An agent who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed twisting In Florida, agents are allowed to engage in rebating if offered to all insureds in the same actuarial class In Florida, monthly-premium health insurance policies must provide a grace period of at least 10 days During the course of an insurance transaction, if an agent makes a false or incomplete statement, he/she could be found guilty of misrepresentation When is a Group Health policy required to provide coverage for a newborn child? At the moment of birth According to Florida law, a Group Life insurance policy requires a minimum of how many insureds? No minimum During the application process, the agent's primary responsibility is to the insurance company Agents that have been licensed for less than six years must complete __ hours of continuing education every two years. 24 Which of the following employees may NOT be excluded from a group life plan? full-time employees after the probationary period A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's termination? 31 days