Chap. 10: FL Personal Lines State Laws
Exam Questions With Fully Worked-out
Solutions
The administration of state insurance law is the responsibility of which of the following? -
CORRECT ANSWER-Chief Financial Officer
Which state entity is responsible for approving a certificate of authority for an insurance
company? - CORRECT ANSWER-Office of Insurance Regulation
In Florida, which of the following is not a duty of the Department of Financial Services? -
CORRECT ANSWER-Enforces the Insurance Code by administering criminal penalties
Which of the following forms does not require approval from the Office of Insurance
Regulation in Florida? - CORRECT ANSWER-Agent report
The Market Investigation division includes 4 sections with unique duties. Which of the
following is not one of those 4 sections? - CORRECT ANSWER-Approval
How often must the Office of Financial Regulation audit all authorized insurance carriers
in Florida? - CORRECT ANSWER-Every 5 years
Which of the following is not true of a nonadmitted carrier? - CORRECT ANSWER-The
Florida Guaranty Association protects residents who buy from a nonadmitted carrier
In Florida, unlicensed entities are a regulatory concern due to which of the following
issues? - CORRECT ANSWER-Potential for criminal activity
P, a person without a certificate of authority in Florida, engaged in insurance activities
and collected $150,000 dollars in premium payments. P is guilty of a: - CORRECT
ANSWER-1st degree felony
, In Florida, which type of adjuster is hired on behalf of a third-party claimant to negotiate
and settle a claim? - CORRECT ANSWER-Public
Which of the following is true about an insurance agency in Florida? - CORRECT
ANSWER-An agency must have a licensed and appointed full-time agent in charge
Which of the following is incorrect about insurance company appointments? -
CORRECT ANSWER-An agent must be appointed for property and casualty insurance
separately
Which of the following is not a qualification to apply for a general lines license in
Florida? - CORRECT ANSWER-Must have a high school diploma or GED
A change of address must be reported to the DFS within how many days after moving?
- CORRECT ANSWER-30 days
An insurance license in Florida may not be suspended for which of the following? -
CORRECT ANSWER-Over-insuring a health insurance risk
In Florida, agents accept premiums as a fiduciary. In that capacity, how long do the
agents have to turn money over to the insurer? - CORRECT ANSWER-Immediately
T, an agent in Florida, is issuing a contract to C, a consumer. Both of them must sign
the contract, and T must retain it for how many years? - CORRECT ANSWER-3 years
The maximum amount on which the Florida Insurance Guaranty Association will
assume the contractual obligation for any one policy is: - CORRECT ANSWER-
$300,000
A credit union in Florida refuses to give E, a consumer, a loan because E does not get
their insurance through a specific company. The credit union is guilty of which unfair
trade practice? - CORRECT ANSWER-Coercion
Exam Questions With Fully Worked-out
Solutions
The administration of state insurance law is the responsibility of which of the following? -
CORRECT ANSWER-Chief Financial Officer
Which state entity is responsible for approving a certificate of authority for an insurance
company? - CORRECT ANSWER-Office of Insurance Regulation
In Florida, which of the following is not a duty of the Department of Financial Services? -
CORRECT ANSWER-Enforces the Insurance Code by administering criminal penalties
Which of the following forms does not require approval from the Office of Insurance
Regulation in Florida? - CORRECT ANSWER-Agent report
The Market Investigation division includes 4 sections with unique duties. Which of the
following is not one of those 4 sections? - CORRECT ANSWER-Approval
How often must the Office of Financial Regulation audit all authorized insurance carriers
in Florida? - CORRECT ANSWER-Every 5 years
Which of the following is not true of a nonadmitted carrier? - CORRECT ANSWER-The
Florida Guaranty Association protects residents who buy from a nonadmitted carrier
In Florida, unlicensed entities are a regulatory concern due to which of the following
issues? - CORRECT ANSWER-Potential for criminal activity
P, a person without a certificate of authority in Florida, engaged in insurance activities
and collected $150,000 dollars in premium payments. P is guilty of a: - CORRECT
ANSWER-1st degree felony
, In Florida, which type of adjuster is hired on behalf of a third-party claimant to negotiate
and settle a claim? - CORRECT ANSWER-Public
Which of the following is true about an insurance agency in Florida? - CORRECT
ANSWER-An agency must have a licensed and appointed full-time agent in charge
Which of the following is incorrect about insurance company appointments? -
CORRECT ANSWER-An agent must be appointed for property and casualty insurance
separately
Which of the following is not a qualification to apply for a general lines license in
Florida? - CORRECT ANSWER-Must have a high school diploma or GED
A change of address must be reported to the DFS within how many days after moving?
- CORRECT ANSWER-30 days
An insurance license in Florida may not be suspended for which of the following? -
CORRECT ANSWER-Over-insuring a health insurance risk
In Florida, agents accept premiums as a fiduciary. In that capacity, how long do the
agents have to turn money over to the insurer? - CORRECT ANSWER-Immediately
T, an agent in Florida, is issuing a contract to C, a consumer. Both of them must sign
the contract, and T must retain it for how many years? - CORRECT ANSWER-3 years
The maximum amount on which the Florida Insurance Guaranty Association will
assume the contractual obligation for any one policy is: - CORRECT ANSWER-
$300,000
A credit union in Florida refuses to give E, a consumer, a loan because E does not get
their insurance through a specific company. The credit union is guilty of which unfair
trade practice? - CORRECT ANSWER-Coercion
