Module 12 Quiz Questions - Florida
Statutes, Rules, Regulations Common
to All Lines Verified Answers
What is the prelicensing requirement to obtain a Life insurance license?
A. 20 hours
B. 24 hours
C. 30 hours
D. 40 hours - ANSWER-D. 40 hours
Which of the following statements is NOT true concerning a stock insurer in Florida?
A. Owned by stockholders
B. Non-participating company
C. Issue policy dividends on an annual basis
D. Stockholders can also be policyholders - ANSWER-C. Issue policy dividends on
an annual basis
For good cause an extension for obtaining continuing education credits may be
obtained not to exceed...
A. 6 months
B. 9 months
C. 1 year
D. 18 months - ANSWER-C. 1 year
All of the following statements are not correct regarding an unaffiliated agent,
EXCEPT...
A. Self-appointed
B. Act as independent consultant for a fee
C. Affiliated with only one insurer
D. Continues to receive commission for sales made before being appointed as an
unaffiliated agent - ANSWER-C. Affiliated with only one insurer
When must a licensee notify the Department of a change of residence address?
A. 14 days
B. 21 days
C. 30 days
D. 45 days - ANSWER-C. 30 days
Which of the following elements is not a requirement for a valid contract?
,A. Offer and acceptance
B. Legal purposes
C. Competent parties
D. Waiver of premium - ANSWER-D. Waiver of premium
An insurer is considered to be competent if they...
A. Are doing business in Florida
B. Hold a Certificate of Authority for Florida
C. Issue insurance policies in Florida
D. Hire Florida agents - ANSWER-B. Hold a Certificate of Authority for Florida
XYZ Insurer has its home office in Georgia and conducts business in Florida. In
Florida this insurer is known as...
A. Foreign
B. Domestic
C. Regional
D. Alien - ANSWER-A. Foreign
Keeping funds belonging to the insurer separate from the agent's personal accounts
is...
A. Agent's fiduciary responsibility
B. Responsibility of insurer
C. Accountability regulation
D. Required for reinsurance - ANSWER-A. Agent's fiduciary responsibility
Who is responsible for funding the insurance guarantee association?
A. Member insurers
B. Florida taxpayers
C. Combined state and federal funds
D. Insurance policyowners - ANSWER-A. Member insurers
What is the purpose of the insurance guaranty fund?
A. Guarantee premiums are paid to the insurer by the policyowner
B. Protect consumers from fraudulent insurance sales
C. Protect consumers of life, health and annuity contracts when insurers are unable
to perform their contractual obligations due to impairment or insolvency
D. Provide payment to insurers when policyowners are insolvent and unable to pay
their premiums - ANSWER-C. Protect consumers of life, health and annuity contracts
when insurers are unable to perform their contractual obligations due to impairment
or insolvency
Which of the following statements is NOT true regarding commissions and
compensation?
A. Generally, a percentage of the initial and subsequent premiums
, B. Cannot be contingent upon savings effectuated in the adjustment, settlement, and
payment of losses
C. Cannot be rebated to a client under any circumstance
D. Health agents are permitted to charge a fee for providing counsel or
recommendation of health insurance benefits - ANSWER-C. Cannot be rebated to a
client under any circumstance
Which of the following situations is considered unethical?
A. Agent reviews all aspects of the life insurance policy he just delivered to the client
B. In soliciting life insurance, the agent tells the client that dividends are guaranteed
to be issued annually
C. The agent, in soliciting insurance, makes sure the application is complete and all
client's questions have been properly answered before leaving
D. Agent makes sure is recommendations meet the needs and best interests of his
client - ANSWER-B. In soliciting life insurance, the agent tells the client that
dividends are guaranteed to be issued annually
Which of the following situations is NOT considered an unfair trade practice?
A. Collecting premiums and depositing them into the agent's personal account for
safe keeping
B. Rebating a portion of the premium amount to the applicant in return for purchasing
an insurance product
C. Submitting as much controlled insurance business as non-controlled
D. Charging the applicant, a fee for policy delivery - ANSWER-C. Submitting as
much controlled insurance business as non-controlled
A licensee cannot submit more than what percentage of premiums for controlled
business within a 12-month period?
A. 25%
B. 40%
C. 50%
D. 65% - ANSWER-C. 50%
Sliding consists of all the following, EXCEPT...
A. Telling an applicant that an additional product is required by law when it is not
required
B. Telling an applicant that an additional coverage included in the policy applied for,
without an additional charge when there is additional charge
C. Recommending an applicant take the policy cash values in an existing policy to
purchase another investment
D. Charging the applicant for an additional coverage in addition to the cost of
insurance applied for without the consent of the applicant - ANSWER-C.
Recommending an applicant take the policy cash values in an existing policy to
purchase another investment
Which of the following examples would NOT be considered misrepresentation?
Statutes, Rules, Regulations Common
to All Lines Verified Answers
What is the prelicensing requirement to obtain a Life insurance license?
A. 20 hours
B. 24 hours
C. 30 hours
D. 40 hours - ANSWER-D. 40 hours
Which of the following statements is NOT true concerning a stock insurer in Florida?
A. Owned by stockholders
B. Non-participating company
C. Issue policy dividends on an annual basis
D. Stockholders can also be policyholders - ANSWER-C. Issue policy dividends on
an annual basis
For good cause an extension for obtaining continuing education credits may be
obtained not to exceed...
A. 6 months
B. 9 months
C. 1 year
D. 18 months - ANSWER-C. 1 year
All of the following statements are not correct regarding an unaffiliated agent,
EXCEPT...
A. Self-appointed
B. Act as independent consultant for a fee
C. Affiliated with only one insurer
D. Continues to receive commission for sales made before being appointed as an
unaffiliated agent - ANSWER-C. Affiliated with only one insurer
When must a licensee notify the Department of a change of residence address?
A. 14 days
B. 21 days
C. 30 days
D. 45 days - ANSWER-C. 30 days
Which of the following elements is not a requirement for a valid contract?
,A. Offer and acceptance
B. Legal purposes
C. Competent parties
D. Waiver of premium - ANSWER-D. Waiver of premium
An insurer is considered to be competent if they...
A. Are doing business in Florida
B. Hold a Certificate of Authority for Florida
C. Issue insurance policies in Florida
D. Hire Florida agents - ANSWER-B. Hold a Certificate of Authority for Florida
XYZ Insurer has its home office in Georgia and conducts business in Florida. In
Florida this insurer is known as...
A. Foreign
B. Domestic
C. Regional
D. Alien - ANSWER-A. Foreign
Keeping funds belonging to the insurer separate from the agent's personal accounts
is...
A. Agent's fiduciary responsibility
B. Responsibility of insurer
C. Accountability regulation
D. Required for reinsurance - ANSWER-A. Agent's fiduciary responsibility
Who is responsible for funding the insurance guarantee association?
A. Member insurers
B. Florida taxpayers
C. Combined state and federal funds
D. Insurance policyowners - ANSWER-A. Member insurers
What is the purpose of the insurance guaranty fund?
A. Guarantee premiums are paid to the insurer by the policyowner
B. Protect consumers from fraudulent insurance sales
C. Protect consumers of life, health and annuity contracts when insurers are unable
to perform their contractual obligations due to impairment or insolvency
D. Provide payment to insurers when policyowners are insolvent and unable to pay
their premiums - ANSWER-C. Protect consumers of life, health and annuity contracts
when insurers are unable to perform their contractual obligations due to impairment
or insolvency
Which of the following statements is NOT true regarding commissions and
compensation?
A. Generally, a percentage of the initial and subsequent premiums
, B. Cannot be contingent upon savings effectuated in the adjustment, settlement, and
payment of losses
C. Cannot be rebated to a client under any circumstance
D. Health agents are permitted to charge a fee for providing counsel or
recommendation of health insurance benefits - ANSWER-C. Cannot be rebated to a
client under any circumstance
Which of the following situations is considered unethical?
A. Agent reviews all aspects of the life insurance policy he just delivered to the client
B. In soliciting life insurance, the agent tells the client that dividends are guaranteed
to be issued annually
C. The agent, in soliciting insurance, makes sure the application is complete and all
client's questions have been properly answered before leaving
D. Agent makes sure is recommendations meet the needs and best interests of his
client - ANSWER-B. In soliciting life insurance, the agent tells the client that
dividends are guaranteed to be issued annually
Which of the following situations is NOT considered an unfair trade practice?
A. Collecting premiums and depositing them into the agent's personal account for
safe keeping
B. Rebating a portion of the premium amount to the applicant in return for purchasing
an insurance product
C. Submitting as much controlled insurance business as non-controlled
D. Charging the applicant, a fee for policy delivery - ANSWER-C. Submitting as
much controlled insurance business as non-controlled
A licensee cannot submit more than what percentage of premiums for controlled
business within a 12-month period?
A. 25%
B. 40%
C. 50%
D. 65% - ANSWER-C. 50%
Sliding consists of all the following, EXCEPT...
A. Telling an applicant that an additional product is required by law when it is not
required
B. Telling an applicant that an additional coverage included in the policy applied for,
without an additional charge when there is additional charge
C. Recommending an applicant take the policy cash values in an existing policy to
purchase another investment
D. Charging the applicant for an additional coverage in addition to the cost of
insurance applied for without the consent of the applicant - ANSWER-C.
Recommending an applicant take the policy cash values in an existing policy to
purchase another investment
Which of the following examples would NOT be considered misrepresentation?
