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

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