2044 CHAPTER 15 & 16 FLORIDA
STATUTES AND RULES, UNLICENSED
ENTITIES EXAM QUESTIONS WITH
VERIFIED ANSWERS
Churning - ANSWER-Policy values in an existing life or annuity are used to purchase
another policy with the same insurer, for the purpose of earning additional premium
or commission.
Twisting - ANSWER-Making misrepresentations to induce a person to drop their
policy to take another from another company.
Sliding - ANSWER-Charging an applicant for ancillary (supplemental) coverage
without their knowledge or advising that such additional coverage is required by law
with the purchase of insurance.
Forced-Placed Coverage - ANSWER-An insurance policy placed by a lender, bank,
or loan servicer on a home when the property owner's own insurance is cancelled,
lapses, or is deemed insufficient and the borrower does not secure a replacement
policy.
Florida Insurance Guaranty Fund - ANSWER-Administered by an elected board to
pay unpaid claim and return unearned premium on insurance companies that have
become insolvent.
Risk Retention Group - ANSWER-A group-owned insurer which has been organized
for the purpose of assuming and spreading the liability risks to its members.
Controlled Business - ANSWER-The sale of insurance to those whom the agent has
an interest in or financial influence over.
What type of penalty can an agent be charged with for lying on an insurance
application? - ANSWER-3rd Degree Felony
Financial Services Commission is composed of: - ANSWER-Governor, attorney
general, Commissioner of Agriculture and the Chief Financial Officer.
Who may an insurance agent share their commissions with? - ANSWER-Anyone
with the same type of license.
Fraud, dishonesty and breach of fiduciary duty are types of administrative action
which must be reported to the DFS within: - ANSWER-30 Days
Controlled Business - ANSWER-The sale of insurance to those whom the agent has
an interest in or financial influence over.
STATUTES AND RULES, UNLICENSED
ENTITIES EXAM QUESTIONS WITH
VERIFIED ANSWERS
Churning - ANSWER-Policy values in an existing life or annuity are used to purchase
another policy with the same insurer, for the purpose of earning additional premium
or commission.
Twisting - ANSWER-Making misrepresentations to induce a person to drop their
policy to take another from another company.
Sliding - ANSWER-Charging an applicant for ancillary (supplemental) coverage
without their knowledge or advising that such additional coverage is required by law
with the purchase of insurance.
Forced-Placed Coverage - ANSWER-An insurance policy placed by a lender, bank,
or loan servicer on a home when the property owner's own insurance is cancelled,
lapses, or is deemed insufficient and the borrower does not secure a replacement
policy.
Florida Insurance Guaranty Fund - ANSWER-Administered by an elected board to
pay unpaid claim and return unearned premium on insurance companies that have
become insolvent.
Risk Retention Group - ANSWER-A group-owned insurer which has been organized
for the purpose of assuming and spreading the liability risks to its members.
Controlled Business - ANSWER-The sale of insurance to those whom the agent has
an interest in or financial influence over.
What type of penalty can an agent be charged with for lying on an insurance
application? - ANSWER-3rd Degree Felony
Financial Services Commission is composed of: - ANSWER-Governor, attorney
general, Commissioner of Agriculture and the Chief Financial Officer.
Who may an insurance agent share their commissions with? - ANSWER-Anyone
with the same type of license.
Fraud, dishonesty and breach of fiduciary duty are types of administrative action
which must be reported to the DFS within: - ANSWER-30 Days
Controlled Business - ANSWER-The sale of insurance to those whom the agent has
an interest in or financial influence over.
