Florida State Life And Health Insurance Agent Licensing Exam Real Exam 240 Questions With Correct Answers: Graded A

If an insurance company is organized under the laws of New Jersey and licensed to do business here, it is considered what in Texas? CORRECT ANSWER- Foreign company One of the state purposes of the Life and Health Insurance Guaranty Association is CORRECT ANSWER- to assist in the prevention of insurer insolvencies An insurance company that is incorporated in New Hampshire and does business in Florida is defined in Florida as CORRECT ANSWER- Foreign insurer A foreign insurance company is one that is incorporated CORRECT ANSWER- under the laws of another state In order for a 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 what? 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, who 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 What is one of many acts an agent is NOT authorized to do on behalf of an insurer? CORRECT ANSWER- Authorize claim payments Advertising gifts given by an agent to a prospective client are not allowed to exceed CORRECT ANSWER- $25 An agent may legally share commissions with only CORRECT ANSWER- Another agent who is licensed in the same line of businessAn insurance company will not compensate CORRECT ANSWER- Licensed agent not appointed by the company How can an agent-in-charge have more than one location? CORRECT ANSWER- Only if the agent-in-charge is present when insurance activity occurs What can an agent provide to help a prospective client understand and purchase the most appropriate product? CORRECT ANSWER- Buyer's Guide The insurer must provide a prospective buyer with CORRECT ANSWER- Buyer's Guide and Policy Summary The Insurance Commissioner or Director may examine the records of an insurance company in order to CORRECT ANSWER- Determine the solvency of a company (financial strength) The Commissioner or Director of Insurance has the power to CORRECT ANSWER- conduct examinations of insurance companies The Commissioner or Director of Insurance may suspend, revoke, or refuse to renew the license of an agent who CORRECT ANSWER- Is found guilty of misrepresentation or fraud in obtaining the license The Commissioner or Director of Insurance is empowered to CORRECT ANSWER- Enforce state laws relating to insurance From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant? CORRECT ANSWER- Fair Credit Reporting Act Which federal law allows an insurer to obtain an inspection report on a potential insured? CORRECT ANSWER- Fair Credit Reporting Act 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 A person who places insurance on behalf of anyone seeking insurance must CORRECT ANSWER- be licensed as an agent 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 in Florida with a nonresident insurance license must CORRECT ANSWER- Also hold a similar license in their state of residence Writing primarily controlled business will cause a licensed agent to CORRECT ANSWER- Have their license suspended or revoked