State Exam Outline (Part 10 - Florida
Statutes, Rules, and Regulation)
Correct Answers
Unauthorized companies (or insurer) - ANSWER-An insurance company that has
been denied or not yet applied for a Certificate of Authority and may not sell
insurance in that state (also called Non-Admitted insurance company)
Admitted insurance companies - ANSWER-The same as Authorized companies (or
insurer), an insurance company that has qualified and received a Certificate of
Authority from the Department of Insurance (sometimes called Department of
Financial Services) to sell insurance in that state
Non-admitted companies - ANSWER-The same as Unauthorized companies (or
insurer), an insurance company that has been denied or not yet applied for a
Certificate of Authority and may not sell insurance in that state
Stock insurance companies - ANSWER-- Owned and controlled by
STOCKHOLDERS (shareholders)
- Stockholders provide the capital and share in profits or losses
- Non-participating (non-par) cuz POLICYOWNERS DO NOT SHARE IN THE
PROFITS of the company (referred to as a company doing business on a mixed plan
if nonpar AND par)
- Objective: produce a profit for its owners = the stockholders
Mutual insurance companies - ANSWER-- Owned and controlled by its
POLICYOWNERS
- POs elect a board of trustees or directors to manage the firm
- Profits of the company are RETURNED TO POs AS DIVIDENDS or retained as
surplus to meet future obligations
- Participating (Par) cuz the POLICYOWNERS DO SHARE IN THE PROFITS of the
company
- Objective: provide insurance to itsPOs at the lowest possible net cost
Risk retention group - ANSWER-
Unlicensed entitles - ANSWER-
Certificate of authority - ANSWER-
A licensee may NOT transact insurance business in Florida until the licensee is
____________ by an insurer? - ANSWER-Appointed
, Background Check - ANSWER-Any inquiry or investigation of the applicant's
qualifications, character, experience, background, and fitness must include
submission of the applicant's fingerprints to the Department of Law Enforcement and
the Federal Bureau of Investigation and consideration of any local, state, or federal
criminal records
Agent - ANSWER-An individual who has been authorized by an insurer to be its
representative and to perform solicit applications for insurance, collect premiums
from policyowners, render services to prospects and clients, field underwriting if
necessary
Agencies - ANSWER-any business location where insurance transactions take place
that can only be performed by licensed insurance agents
A licensed insurance agent may be the agent in charge of additional branch office
locations of the agency as long as insurance activities do not what? - ANSWER-
Occur at any location when the agent is not physically present
In an agency, there must be an agent in what at each licensed agency location
where insurance transactions take place? - ANSWER-In charge
Appointments - ANSWER-The authority given to n agent to transact business on
behalf of the insurer
Who may act as an insurance agent unless currently licensed by the department and
appointed by the insurer? - ANSWER-No one
When do new appointments expire under Florida Laws and Rules? - ANSWER-24
months on the last day of the licensee's birth month
An appointing entity may terminate its appointment of any appointee at any time with
at least how many days notice? - ANSWER-60
The entity must file written notice with the department including the reasons and
facts involved in the termination how many days after terminating the appointment? -
ANSWER-30
An agent's license will terminate if the agent allows what period of time to elapse
without being appointed for the class or classes of insurance listed on the license? -
ANSWER-48 months
Education License Requirements - ANSWER-- 60-hour pre-licensing education
course
- Pass the insurance state licensing examination
- must pass background check via fingerprints
Application License Requirements - ANSWER-Must be at least 18, US citizen or
legal alien, Florida resident, not be an employee of the US Department of Veterans
Affairs, not be a funeral director or direct disposer, trustworthy and competent
Statutes, Rules, and Regulation)
Correct Answers
Unauthorized companies (or insurer) - ANSWER-An insurance company that has
been denied or not yet applied for a Certificate of Authority and may not sell
insurance in that state (also called Non-Admitted insurance company)
Admitted insurance companies - ANSWER-The same as Authorized companies (or
insurer), an insurance company that has qualified and received a Certificate of
Authority from the Department of Insurance (sometimes called Department of
Financial Services) to sell insurance in that state
Non-admitted companies - ANSWER-The same as Unauthorized companies (or
insurer), an insurance company that has been denied or not yet applied for a
Certificate of Authority and may not sell insurance in that state
Stock insurance companies - ANSWER-- Owned and controlled by
STOCKHOLDERS (shareholders)
- Stockholders provide the capital and share in profits or losses
- Non-participating (non-par) cuz POLICYOWNERS DO NOT SHARE IN THE
PROFITS of the company (referred to as a company doing business on a mixed plan
if nonpar AND par)
- Objective: produce a profit for its owners = the stockholders
Mutual insurance companies - ANSWER-- Owned and controlled by its
POLICYOWNERS
- POs elect a board of trustees or directors to manage the firm
- Profits of the company are RETURNED TO POs AS DIVIDENDS or retained as
surplus to meet future obligations
- Participating (Par) cuz the POLICYOWNERS DO SHARE IN THE PROFITS of the
company
- Objective: provide insurance to itsPOs at the lowest possible net cost
Risk retention group - ANSWER-
Unlicensed entitles - ANSWER-
Certificate of authority - ANSWER-
A licensee may NOT transact insurance business in Florida until the licensee is
____________ by an insurer? - ANSWER-Appointed
, Background Check - ANSWER-Any inquiry or investigation of the applicant's
qualifications, character, experience, background, and fitness must include
submission of the applicant's fingerprints to the Department of Law Enforcement and
the Federal Bureau of Investigation and consideration of any local, state, or federal
criminal records
Agent - ANSWER-An individual who has been authorized by an insurer to be its
representative and to perform solicit applications for insurance, collect premiums
from policyowners, render services to prospects and clients, field underwriting if
necessary
Agencies - ANSWER-any business location where insurance transactions take place
that can only be performed by licensed insurance agents
A licensed insurance agent may be the agent in charge of additional branch office
locations of the agency as long as insurance activities do not what? - ANSWER-
Occur at any location when the agent is not physically present
In an agency, there must be an agent in what at each licensed agency location
where insurance transactions take place? - ANSWER-In charge
Appointments - ANSWER-The authority given to n agent to transact business on
behalf of the insurer
Who may act as an insurance agent unless currently licensed by the department and
appointed by the insurer? - ANSWER-No one
When do new appointments expire under Florida Laws and Rules? - ANSWER-24
months on the last day of the licensee's birth month
An appointing entity may terminate its appointment of any appointee at any time with
at least how many days notice? - ANSWER-60
The entity must file written notice with the department including the reasons and
facts involved in the termination how many days after terminating the appointment? -
ANSWER-30
An agent's license will terminate if the agent allows what period of time to elapse
without being appointed for the class or classes of insurance listed on the license? -
ANSWER-48 months
Education License Requirements - ANSWER-- 60-hour pre-licensing education
course
- Pass the insurance state licensing examination
- must pass background check via fingerprints
Application License Requirements - ANSWER-Must be at least 18, US citizen or
legal alien, Florida resident, not be an employee of the US Department of Veterans
Affairs, not be a funeral director or direct disposer, trustworthy and competent
