FLORIDA LIFE INSURANCE/ ANNUITIES
2-14 STUDY SET EXAM WITH CORRECT
ANSWERS
Which of the following individuals MUST be licensed as an agent? - CORRECT
ANSWER-A person who places insurance on behalf of anyone seeking insurance.
Which of the following statements regarding a nonresident insurance agent is
CORRECT? - CORRECT ANSWER-The agent must hold a similar license in their state
of residence
State insurance laws specifically allow the Commissioner(or Director) to issue a
temporary license to which of the following individuals? - CORRECT ANSWER-A
surviving spouse of a deceased agent
A person is required to be AT LEAST how old before he or she is licensed as an agent
in most states? - CORRECT ANSWER-18
Insurance agents must notify the Commissioner(or Director) of a change of home
address within a MAXIMUM of how many days? - CORRECT ANSWER-30
An agent's license can be suspended or revoked by... - CORRECT ANSWER-Writing
primarily controlled business
Which of the following activities will NOT result in the suspension of an agent's license. -
CORRECT ANSWER-Working for an foreign insurer.
All of the following will result in the suspension of an agent's license EXCEPT.... -
CORRECT ANSWER-Acting with fiduciary responsibility
Which of the following acts is an agent NOT authorized to do on behalf of an insurer? -
CORRECT ANSWER-Authorize claim payments
According to state insurance law, while transacting insurance business, agents act as
representative of... - CORRECT ANSWER-The insurer
An insurance broker is a representative of... - CORRECT ANSWER-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... -
CORRECT ANSWER-Fiduciary responsibility
, Insurance companies that are organized in countries outside the United States are
referred to as... - CORRECT ANSWER-Alien
An insurance company incorporated under the laws of the state in which its home office
is located is called a(n)_____ company - CORRECT ANSWER-Domestic
If an insurance company is organized under the laws of New Jersey and licensed to do
business here, it is considered which of the following in Texas? - CORRECT ANSWER-
A foreign company
An insurance company that is incorporated in New Hampshire and does business in
Florida is defined in Florida as... - CORRECT ANSWER-A foreign insurer
A foreign insurance company is one that is incorporated... - CORRECT ANSWER-
Under the laws of another state
In order for domestic, foreign, or alien insurance company to conduct business, it must
be authorized by whom? - CORRECT ANSWER-The state where they are conducting
business
A certificate of authority does which of the following? - CORRECT 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... - CORRECT
ANSWER-Designate an agent to be responsible for compliance with insurance laws
If an insured sustains a loss on a policy sold by an agent through an insurance
company that is not authorized to do business in that particular state, which of the
following would be liable? - CORRECT ANSWER-The agent and the company
Which of the following is NOT a consequence for placing business with an unauthorized
insurer? - CORRECT ANSWER-First degree misdemeanor
All of the following are defined as doing insurance business EXCEPT... - CORRECT
ANSWER-Selling mutual funds
What is the main reason for regulating the insurance industry? - CORRECT ANSWER-
Maintain the solvency of insurance companies.
The insurance Commissioner(or Director) may examine the records of an insurance
company on order to... - CORRECT ANSWER-Determine the solvency of the company
The Commissioner(or Director) of insurance has the power to... - CORRECT ANSWER-
Conduct examinations of insurance companies
2-14 STUDY SET EXAM WITH CORRECT
ANSWERS
Which of the following individuals MUST be licensed as an agent? - CORRECT
ANSWER-A person who places insurance on behalf of anyone seeking insurance.
Which of the following statements regarding a nonresident insurance agent is
CORRECT? - CORRECT ANSWER-The agent must hold a similar license in their state
of residence
State insurance laws specifically allow the Commissioner(or Director) to issue a
temporary license to which of the following individuals? - CORRECT ANSWER-A
surviving spouse of a deceased agent
A person is required to be AT LEAST how old before he or she is licensed as an agent
in most states? - CORRECT ANSWER-18
Insurance agents must notify the Commissioner(or Director) of a change of home
address within a MAXIMUM of how many days? - CORRECT ANSWER-30
An agent's license can be suspended or revoked by... - CORRECT ANSWER-Writing
primarily controlled business
Which of the following activities will NOT result in the suspension of an agent's license. -
CORRECT ANSWER-Working for an foreign insurer.
All of the following will result in the suspension of an agent's license EXCEPT.... -
CORRECT ANSWER-Acting with fiduciary responsibility
Which of the following acts is an agent NOT authorized to do on behalf of an insurer? -
CORRECT ANSWER-Authorize claim payments
According to state insurance law, while transacting insurance business, agents act as
representative of... - CORRECT ANSWER-The insurer
An insurance broker is a representative of... - CORRECT ANSWER-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... -
CORRECT ANSWER-Fiduciary responsibility
, Insurance companies that are organized in countries outside the United States are
referred to as... - CORRECT ANSWER-Alien
An insurance company incorporated under the laws of the state in which its home office
is located is called a(n)_____ company - CORRECT ANSWER-Domestic
If an insurance company is organized under the laws of New Jersey and licensed to do
business here, it is considered which of the following in Texas? - CORRECT ANSWER-
A foreign company
An insurance company that is incorporated in New Hampshire and does business in
Florida is defined in Florida as... - CORRECT ANSWER-A foreign insurer
A foreign insurance company is one that is incorporated... - CORRECT ANSWER-
Under the laws of another state
In order for domestic, foreign, or alien insurance company to conduct business, it must
be authorized by whom? - CORRECT ANSWER-The state where they are conducting
business
A certificate of authority does which of the following? - CORRECT 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... - CORRECT
ANSWER-Designate an agent to be responsible for compliance with insurance laws
If an insured sustains a loss on a policy sold by an agent through an insurance
company that is not authorized to do business in that particular state, which of the
following would be liable? - CORRECT ANSWER-The agent and the company
Which of the following is NOT a consequence for placing business with an unauthorized
insurer? - CORRECT ANSWER-First degree misdemeanor
All of the following are defined as doing insurance business EXCEPT... - CORRECT
ANSWER-Selling mutual funds
What is the main reason for regulating the insurance industry? - CORRECT ANSWER-
Maintain the solvency of insurance companies.
The insurance Commissioner(or Director) may examine the records of an insurance
company on order to... - CORRECT ANSWER-Determine the solvency of the company
The Commissioner(or Director) of insurance has the power to... - CORRECT ANSWER-
Conduct examinations of insurance companies
