CHAPTER 5 FL STATUTES, RULES,
AND REGULATIONS EXAM QUESTIONS
WITH CORRECT ANSWERS
Failure of a licensee to maintain an appointment with an insurance company within 48
months after the date the license became effective will result in - ANSWER-Expiration
of the license
An insurance company is domiciled in Montana and transacts insurance in Wyoming.
Which term best describes the insurer's classification in Wyoming? - ANSWER-
Foreign
Which of the following best describes a misrepresentation? - ANSWER-Issuing sales
material with false statements about policy benefits
Which of the following activities would be sufficient violation to warrant rejection,
revocation, or suspension of an insurance agent's license? - ANSWER-Forgery
An insured submits a proof of loss form within 10 days of a loss. The insurer, however,
does not acknowledge the form for 3 months. Which of the following violations has the
insurer committed? - ANSWER-Unfair claims settlement
Agents who persuade insureds to cancel a policy in favor of another one when it might
not be in the insured's best interest are guilty of - ANSWER-Twisting.
Which of the following entities is responsible for agent licensing and administrative
supervision? - ANSWER-The Office of Insurance Regulation
The inclusion of the Life and Health Guaranty Association in an advertisement by an
insurer is - ANSWER-Forbidden
Which of the following entities protects policyowners, insureds, and beneficiaries
under insurance contracts when insurers fail to perform contractual obligations due to
financial impairment? - ANSWER-Insurance Guaranty Association
If an insurer meets the state's financial requirements and is approved to transact
business in the state, it is considered to be - ANSWER-Authorized
In which of the following situations is it legal to limit coverage based on marital status?
- ANSWER-It is never legal to limit coverage based on marital status.
When doing business in this state an insurance company that is formed under the
laws of another state is known as which type of insurer? - ANSWER-Foreign
AND REGULATIONS EXAM QUESTIONS
WITH CORRECT ANSWERS
Failure of a licensee to maintain an appointment with an insurance company within 48
months after the date the license became effective will result in - ANSWER-Expiration
of the license
An insurance company is domiciled in Montana and transacts insurance in Wyoming.
Which term best describes the insurer's classification in Wyoming? - ANSWER-
Foreign
Which of the following best describes a misrepresentation? - ANSWER-Issuing sales
material with false statements about policy benefits
Which of the following activities would be sufficient violation to warrant rejection,
revocation, or suspension of an insurance agent's license? - ANSWER-Forgery
An insured submits a proof of loss form within 10 days of a loss. The insurer, however,
does not acknowledge the form for 3 months. Which of the following violations has the
insurer committed? - ANSWER-Unfair claims settlement
Agents who persuade insureds to cancel a policy in favor of another one when it might
not be in the insured's best interest are guilty of - ANSWER-Twisting.
Which of the following entities is responsible for agent licensing and administrative
supervision? - ANSWER-The Office of Insurance Regulation
The inclusion of the Life and Health Guaranty Association in an advertisement by an
insurer is - ANSWER-Forbidden
Which of the following entities protects policyowners, insureds, and beneficiaries
under insurance contracts when insurers fail to perform contractual obligations due to
financial impairment? - ANSWER-Insurance Guaranty Association
If an insurer meets the state's financial requirements and is approved to transact
business in the state, it is considered to be - ANSWER-Authorized
In which of the following situations is it legal to limit coverage based on marital status?
- ANSWER-It is never legal to limit coverage based on marital status.
When doing business in this state an insurance company that is formed under the
laws of another state is known as which type of insurer? - ANSWER-Foreign
