FLORIDA LAWS AND RULES EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
State insurance laws specifically allow the commissioner (or Director) to issue a
temporary license to which of the following individuals? - ANSWER-The surviving
spouse of a deceased agent - this is to allow the surviving spouse time to take over
or dissolve their deceased spouse's insurance business
A person is required to be at least how old before he or she is license as an agent in
most states? - ANSWER-18
Insurance agents must notify the commissioner (or Director) of a change of home
address within a maximum of how many days? - ANSWER-30
An agent license can be suspended or revoked by - ANSWER-Writing primarily
controlled business
Which of the following activities will NOT result in the suspension of an agents
license? - ANSWER-Working for a foreign insurer
All the following will result in the suspension of an agents license EXCEPT -
ANSWER-acting with fiduciary responsibility
Which of the following acts is an agent NOT authorized to do on behalf of an insurer
- ANSWER-Authorize claim payments
According to state insurance law while transacting insurance business, agents act as
representatives of - ANSWER-The insurer
An insurance broker is a person who represents: - ANSWER-An insured or
prospective insured
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 -
ANSWER-Fiduciary responsibility
Insurance companies that are organized in countries outside of the United States are
referred to as - ANSWER-alien
An insurance company incorporated under the laws of the state in which it home
office is located is called in ___ Company - ANSWER-Domestic
According to Florida law an additional lapse notice must be issued after the standard
grace period has expired for policy owners age - ANSWER-64 years or older
, Which action could result in a hearing being ordered by the department of financial
services? - ANSWER-Performing insurance transactions without a license
Which of the following professional organizations has its code of ethics incorporated
into the Florida law - ANSWER-National Association of Insurance and Financial
Advisors (NAIFA)
Which entity approves the insurance policy forms used in Florida - ANSWER-Office
of Insurance Regulation (OIR)
In Florida, agents are allowed to engage in rebating if - ANSWER-offered to all
insureds in the same actuarial class
In Florida, when agents Recommend changes being made for existing coverage the
agent must follow establish procedures. The name of this rule is called the -
ANSWER-Florida replacement rule
In Florida, the element of an insurance transaction would be - ANSWER-Issuing an
insurance contract
The Bureau of Unclaimed Property is overseen by the - ANSWER-Chief Financial
Officer
Which of the following individuals must be license does an agent? - ANSWER-A
person who places insurance on behalf of anyone seeking insurance.
Which of the following statements regarding a nonresident insurance agent is
CORRECT? - ANSWER-The agent must hold a similar license in their state of
residence
If an insurance company is organized under the laws of New Jersey and license to
do business here it is considered which of the following in Texas? - ANSWER-
Foreign company
An insurance company that is incorporated in New Hampshire and does business in
Florida is defined as - ANSWER-A foreign insurer
A foreign insurance company is one that is Incorporated - ANSWER-Under the laws
of another state
In order for domestic foreign or alien insurance company to conduct business it be
authorized by whom - ANSWER-The state in where they are conducting business
Certificate of authority does which of the following - ANSWER-Permits an insurance
company to transact business in that state
Before approving an application for a business entity acting as an agent the
commissioner (or Director) must find that the business entity has - ANSWER-
Designate an agent to be responsible for compliance with insurance laws
QUESTIONS WITH COMPLETE
SOLUTIONS
State insurance laws specifically allow the commissioner (or Director) to issue a
temporary license to which of the following individuals? - ANSWER-The surviving
spouse of a deceased agent - this is to allow the surviving spouse time to take over
or dissolve their deceased spouse's insurance business
A person is required to be at least how old before he or she is license as an agent in
most states? - ANSWER-18
Insurance agents must notify the commissioner (or Director) of a change of home
address within a maximum of how many days? - ANSWER-30
An agent license can be suspended or revoked by - ANSWER-Writing primarily
controlled business
Which of the following activities will NOT result in the suspension of an agents
license? - ANSWER-Working for a foreign insurer
All the following will result in the suspension of an agents license EXCEPT -
ANSWER-acting with fiduciary responsibility
Which of the following acts is an agent NOT authorized to do on behalf of an insurer
- ANSWER-Authorize claim payments
According to state insurance law while transacting insurance business, agents act as
representatives of - ANSWER-The insurer
An insurance broker is a person who represents: - ANSWER-An insured or
prospective insured
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 -
ANSWER-Fiduciary responsibility
Insurance companies that are organized in countries outside of the United States are
referred to as - ANSWER-alien
An insurance company incorporated under the laws of the state in which it home
office is located is called in ___ Company - ANSWER-Domestic
According to Florida law an additional lapse notice must be issued after the standard
grace period has expired for policy owners age - ANSWER-64 years or older
, Which action could result in a hearing being ordered by the department of financial
services? - ANSWER-Performing insurance transactions without a license
Which of the following professional organizations has its code of ethics incorporated
into the Florida law - ANSWER-National Association of Insurance and Financial
Advisors (NAIFA)
Which entity approves the insurance policy forms used in Florida - ANSWER-Office
of Insurance Regulation (OIR)
In Florida, agents are allowed to engage in rebating if - ANSWER-offered to all
insureds in the same actuarial class
In Florida, when agents Recommend changes being made for existing coverage the
agent must follow establish procedures. The name of this rule is called the -
ANSWER-Florida replacement rule
In Florida, the element of an insurance transaction would be - ANSWER-Issuing an
insurance contract
The Bureau of Unclaimed Property is overseen by the - ANSWER-Chief Financial
Officer
Which of the following individuals must be license does an agent? - ANSWER-A
person who places insurance on behalf of anyone seeking insurance.
Which of the following statements regarding a nonresident insurance agent is
CORRECT? - ANSWER-The agent must hold a similar license in their state of
residence
If an insurance company is organized under the laws of New Jersey and license to
do business here it is considered which of the following in Texas? - ANSWER-
Foreign company
An insurance company that is incorporated in New Hampshire and does business in
Florida is defined as - ANSWER-A foreign insurer
A foreign insurance company is one that is Incorporated - ANSWER-Under the laws
of another state
In order for domestic foreign or alien insurance company to conduct business it be
authorized by whom - ANSWER-The state in where they are conducting business
Certificate of authority does which of the following - ANSWER-Permits an insurance
company to transact business in that state
Before approving an application for a business entity acting as an agent the
commissioner (or Director) must find that the business entity has - ANSWER-
Designate an agent to be responsible for compliance with insurance laws
