Florida exam pt 2 Questions With
Verified Answers
Which of these statements about foreign insurers in Florida is TRUE? - ANSWER-A
foreign insurer can usually only issue insurance to someone who was denied coverage
by domestic insurers.
The Commissioner of Insurance Regulation oversees the Office of Insurance
Regulation. Which of the following is NOT one of the functions of the OIR? - ANSWER-
Overseeing licensing of all adjusters in the state of Florida.
Which of the following is NOT true about the National Association of Insurance
Commissioners? - ANSWER-It provides benefits for insurance commissioners
Jill wants to start an insurance agency selling property insurance. As such, she must
belong to a Guaranty Association, of which there are a few different types. Which of
these groups would best fit Jill's needs? - ANSWER-Florida Insurance Guaranty
Association
In 1945 Congress passed the McCarran-Ferguson Act. What does that act do? -
ANSWER-The McCarran-Ferguson Act opened the way for states to govern the
insurance industry.
The Insurance Guaranty Association is a mechanism that covers claims in the event of:
- ANSWER-an insurer's insolvency.
Guaranty Associations are funded by: - ANSWER-insurers.
Rachel is starting an insurance company in Naples, Florida. She has a great business
model and has begun recruiting some fantastic sales people. In addition to submitting to
occasional financial audits in the future, Rachel's company must also: - ANSWER-
become a member of a Guaranty Association.
Risk retention groups do NOT: - ANSWER-have the support of state Guaranty Funds.
,Which of the following is NOT one of the roles of the Florida Department of Financial
Services? - ANSWER-Licensing and regulating insurance companies
Which of the following is NOT a rating factor for a personal auto liability policy? -
ANSWER-The condition of the vehicle
*The main purpose of an Insurance Guaranty Association is: - ANSWER-to make sure
that insurers are able to pay claims, even in the event of an insolvency.
Which of the following would NOT affect the rating for comprehensive and collision
coverage on a vehicle? - ANSWER-The color
Loggers, roofers, and coal miners would fall into which of the following categories? -
ANSWER-High-risk employees
Addie lives in Texas, a state that is reciprocal with Florida CE when it comes to
licensing adjusters. Addie has a license in her home state as well as a license in
Florida. How much continuing education does Addie need to complete in order to renew
her license in Florida? - ANSWER-Since Addie is not a resident adjuster in Florida, she
simply needs to stay compliant in her own state in order to be able to renew her non-
resident license in Florida.
Mervyn is from Kansas, a state that does not license insurance adjusters. Which of the
following is TRUE? - ANSWER-If Mervyn wants to be licensed in Florida, he can
designate Florida as his home state, and he must meet all the same requirements as a
Florida adjuster.
Bill lives in a state which doesn't require adjuster licensing, but he wants to get a job in
Florida as an adjuster. He is confused about which state he should list as his home
state, since his home state does not actually license claims adjusters. Bill should list
_______ as his home state. - ANSWER-Florida
Eric works in Florida for Gemutlich Insurance. His company is licensed to sell insurance
in Florida, but is based out of Munich, Germany. Gemutlich Insurance was formed
under German law, but follows all applicable Florida laws and possesses a Florida
,Certificate of Authority to sell their product. Which type of insurer does Eric work for? -
ANSWER-Alien Insurer
Greg was in the process of completing the CE for his Florida adjuster license when
unforseen circumstances made it necessary for him to drop everything and take care of
his aging mother for a year. Now, Greg's license is about to expire and he does not
have the CE credits he needs. What should he do? - ANSWER-Apply to the Department
of Financial Services for an extension.
Florida Insurance Code states the qualifications required to become a licensed
insurance adjuster in the state of Florida. Which of the following is NOT one of the
requirements for applicants? - ANSWER-Spend 20 hours in the field working with a
licensed insurance adjuster
During catastrophes, which of the following is TRUE? - ANSWER-Adjusters licensed in
other states can act as emergency adjusters in Florida.
Ryan must complete continuing education courses before the deadline for his Florida
license. He knows it's important, but he has been putting off his coursework, and now
the credits are overdue. Ryan is 8 hours short; what can he expect? - ANSWER-Ryan
will have to send a written request for an extension to the Department of Financial
Services.
An insurance adjuster in Florida must complete CE every ____ years. - ANSWER-two
Which of the following would NOT result in disciplinary action from the Department of
Financial Service - ANSWER-Accepting advance premiums
An emergency insurance adjuster license in the State of Florida is good for ____ days. -
ANSWER-180
Angie just got her adjuster license in Florida on May 11, 2016. Her birthday is March 10,
1983. When will her license expire? - ANSWER-Angie's license will only expire if she
goes 4 years without an appointment.
, Third Party Administrators: - ANSWER-do not assume any risk for the policies they
handle.
Which of the following is NOT a purpose of insurance regulation? - ANSWER-To
prohibit insurance-rating
When a company collects a consumer's personal and financial information, the methods
for that collection, as well as the ways in which the information is used and shared, are
all regulated by the: - ANSWER-Fair Credit Reporting Act (FCRA).
The set of patient privacy rules that all health care providers, insurance companies,
physicians offices, hospitals, and pharmacies must follow is called the _____________.
- ANSWER-HIPAA - Health Insurance Portability and Accountability Act
The HIPAA was enacted by the US Congress in _________. - ANSWER-1996
Under which law is an insurer required to explain its reasons for denying coverage? -
ANSWER-IIPPA
Which of the following is NOT one of the responsibilities of Florida's Chief Financial
Officer? - ANSWER-Act as liaison between Florida and the federal government
Sherrie's roof and fence are damaged in a violent windstorm. Sherrie has a typical HO-3
policy with a $150,000 limit for Coverage A - Dwelling. Assuming she has no
endorsements, how much coverage does she have available for the damage to her
fence? - ANSWER-10% of the coverage A limit
Which of the following does NOT apply to commercial property insurance? - ANSWER-
The Commercial policy forms include the Basic and Broad Forms, which are named
peril forms, and the Special Form, which is an open peril ("all risk") form.
Francis owns a small shoe store. Since his business isn't particularly risky, he has a
commercial property policy that provides named-peril coverage to his building and
personal property, without any additional coverages. Which Causes of Loss form does
Francis have attached to his coverage form? - ANSWER-basic form
Verified Answers
Which of these statements about foreign insurers in Florida is TRUE? - ANSWER-A
foreign insurer can usually only issue insurance to someone who was denied coverage
by domestic insurers.
The Commissioner of Insurance Regulation oversees the Office of Insurance
Regulation. Which of the following is NOT one of the functions of the OIR? - ANSWER-
Overseeing licensing of all adjusters in the state of Florida.
Which of the following is NOT true about the National Association of Insurance
Commissioners? - ANSWER-It provides benefits for insurance commissioners
Jill wants to start an insurance agency selling property insurance. As such, she must
belong to a Guaranty Association, of which there are a few different types. Which of
these groups would best fit Jill's needs? - ANSWER-Florida Insurance Guaranty
Association
In 1945 Congress passed the McCarran-Ferguson Act. What does that act do? -
ANSWER-The McCarran-Ferguson Act opened the way for states to govern the
insurance industry.
The Insurance Guaranty Association is a mechanism that covers claims in the event of:
- ANSWER-an insurer's insolvency.
Guaranty Associations are funded by: - ANSWER-insurers.
Rachel is starting an insurance company in Naples, Florida. She has a great business
model and has begun recruiting some fantastic sales people. In addition to submitting to
occasional financial audits in the future, Rachel's company must also: - ANSWER-
become a member of a Guaranty Association.
Risk retention groups do NOT: - ANSWER-have the support of state Guaranty Funds.
,Which of the following is NOT one of the roles of the Florida Department of Financial
Services? - ANSWER-Licensing and regulating insurance companies
Which of the following is NOT a rating factor for a personal auto liability policy? -
ANSWER-The condition of the vehicle
*The main purpose of an Insurance Guaranty Association is: - ANSWER-to make sure
that insurers are able to pay claims, even in the event of an insolvency.
Which of the following would NOT affect the rating for comprehensive and collision
coverage on a vehicle? - ANSWER-The color
Loggers, roofers, and coal miners would fall into which of the following categories? -
ANSWER-High-risk employees
Addie lives in Texas, a state that is reciprocal with Florida CE when it comes to
licensing adjusters. Addie has a license in her home state as well as a license in
Florida. How much continuing education does Addie need to complete in order to renew
her license in Florida? - ANSWER-Since Addie is not a resident adjuster in Florida, she
simply needs to stay compliant in her own state in order to be able to renew her non-
resident license in Florida.
Mervyn is from Kansas, a state that does not license insurance adjusters. Which of the
following is TRUE? - ANSWER-If Mervyn wants to be licensed in Florida, he can
designate Florida as his home state, and he must meet all the same requirements as a
Florida adjuster.
Bill lives in a state which doesn't require adjuster licensing, but he wants to get a job in
Florida as an adjuster. He is confused about which state he should list as his home
state, since his home state does not actually license claims adjusters. Bill should list
_______ as his home state. - ANSWER-Florida
Eric works in Florida for Gemutlich Insurance. His company is licensed to sell insurance
in Florida, but is based out of Munich, Germany. Gemutlich Insurance was formed
under German law, but follows all applicable Florida laws and possesses a Florida
,Certificate of Authority to sell their product. Which type of insurer does Eric work for? -
ANSWER-Alien Insurer
Greg was in the process of completing the CE for his Florida adjuster license when
unforseen circumstances made it necessary for him to drop everything and take care of
his aging mother for a year. Now, Greg's license is about to expire and he does not
have the CE credits he needs. What should he do? - ANSWER-Apply to the Department
of Financial Services for an extension.
Florida Insurance Code states the qualifications required to become a licensed
insurance adjuster in the state of Florida. Which of the following is NOT one of the
requirements for applicants? - ANSWER-Spend 20 hours in the field working with a
licensed insurance adjuster
During catastrophes, which of the following is TRUE? - ANSWER-Adjusters licensed in
other states can act as emergency adjusters in Florida.
Ryan must complete continuing education courses before the deadline for his Florida
license. He knows it's important, but he has been putting off his coursework, and now
the credits are overdue. Ryan is 8 hours short; what can he expect? - ANSWER-Ryan
will have to send a written request for an extension to the Department of Financial
Services.
An insurance adjuster in Florida must complete CE every ____ years. - ANSWER-two
Which of the following would NOT result in disciplinary action from the Department of
Financial Service - ANSWER-Accepting advance premiums
An emergency insurance adjuster license in the State of Florida is good for ____ days. -
ANSWER-180
Angie just got her adjuster license in Florida on May 11, 2016. Her birthday is March 10,
1983. When will her license expire? - ANSWER-Angie's license will only expire if she
goes 4 years without an appointment.
, Third Party Administrators: - ANSWER-do not assume any risk for the policies they
handle.
Which of the following is NOT a purpose of insurance regulation? - ANSWER-To
prohibit insurance-rating
When a company collects a consumer's personal and financial information, the methods
for that collection, as well as the ways in which the information is used and shared, are
all regulated by the: - ANSWER-Fair Credit Reporting Act (FCRA).
The set of patient privacy rules that all health care providers, insurance companies,
physicians offices, hospitals, and pharmacies must follow is called the _____________.
- ANSWER-HIPAA - Health Insurance Portability and Accountability Act
The HIPAA was enacted by the US Congress in _________. - ANSWER-1996
Under which law is an insurer required to explain its reasons for denying coverage? -
ANSWER-IIPPA
Which of the following is NOT one of the responsibilities of Florida's Chief Financial
Officer? - ANSWER-Act as liaison between Florida and the federal government
Sherrie's roof and fence are damaged in a violent windstorm. Sherrie has a typical HO-3
policy with a $150,000 limit for Coverage A - Dwelling. Assuming she has no
endorsements, how much coverage does she have available for the damage to her
fence? - ANSWER-10% of the coverage A limit
Which of the following does NOT apply to commercial property insurance? - ANSWER-
The Commercial policy forms include the Basic and Broad Forms, which are named
peril forms, and the Special Form, which is an open peril ("all risk") form.
Francis owns a small shoe store. Since his business isn't particularly risky, he has a
commercial property policy that provides named-peril coverage to his building and
personal property, without any additional coverages. Which Causes of Loss form does
Francis have attached to his coverage form? - ANSWER-basic form
