20-44 Personal Lines Agent Big Set
UPDATED ACTUAL Exam Questions and
CORRECT Answers
License Termination - CORRECT ANSWER - This happens to an agent who willfully
"over insures" a Property & Casualty or Health Insurance policy.
The State of Florida - CORRECT ANSWER - The only Location/Geography where a
Florida Personal Lines Agent can transact Personal Lines Property & Casualty business?
Rebating - CORRECT ANSWER - Returning a portion of the premium or the agent's
commission on the premium to the insured or other inducements to place business with the agent.
Defamation - CORRECT ANSWER - The action of damaging the good reputation of
someone; slander or libel.
Unfair Discrimination - CORRECT ANSWER - Knowingly making or permitting any
unfair discrimination between individuals of the same actuarially supportable class.
Certificate of Authority - CORRECT ANSWER - The license issued by a state to an
insurance company that allows the company to conduct its business.
Misrepresentation - CORRECT ANSWER - The false advertising of insurance policies
including insurance policy benefits, advantages, conditions, or terms.
Affiliate - CORRECT ANSWER - Any company that controls, is controlled by, or is under
common control with another company.
The Insured - CORRECT ANSWER - The party named on a policy or certificate as the
individual with legal rights to the benefits provided by such policy
,Policy - CORRECT ANSWER - A contract of insurance issued by any insurer.
False Advertising - CORRECT ANSWER - Misrepresenting insurance product pricing,
features, or benefits to the consuming public.
Libel - CORRECT ANSWER - A written false statement that is damaging to another
person's reputation.
Slander - CORRECT ANSWER - A spoken false statement that is damaging to another
person's reputation.
Continuing Education - CORRECT ANSWER - Professional programs of classes for
insurance professionals to update their knowledge and skills in and of the insurance industry and
insurance products.
Record Keeping - CORRECT ANSWER - The function of making and keeping a record of
the activities and financial transactions of an insurance agency or company.
An Appointment - CORRECT ANSWER - The authorization from an insurance company
giving an agent the authority to act on its behalf as an agent.
Fiduciary - CORRECT ANSWER - The party charged with the obligation to act with the
highest degree of care and in the best interest of another.
Separate Account - CORRECT ANSWER - The "trust" fund held by an agency on behalf
of its customers which must: (1) be accessible to the department for inspection; and (2) preserve
records of premium payments for at least three years.
,Sliding - CORRECT ANSWER - When an agent fails to fully disclose all the details of,
and to obtain informed consent to, the purchase of all products and services being included in an
insurance transaction.
Coercion - CORRECT ANSWER - The unlawful boycott, coercion, and intimidation in
the business of insurance.
Unfair Claims Practice - CORRECT ANSWER - Denying claims without conducting
reasonable investigations based upon available information. Failing to promptly provide a
reasonable explanation in writing to the insured of the basis in the insurance policy for denial of
a claim or for the offer of a compromise settlement.
Fraud - CORRECT ANSWER - A false statement intended to deceive the insurer and
induce it to part with something of value or surrender a legal right.
Controlled Business. - CORRECT ANSWER - When an agent sells more than 50% of all
"sold" business to the agent directly, the agent's immediate family, the agent's employer or
employees.
Twisting
. - CORRECT ANSWER - The misrepresentation by an agent as to the advantages and
disadvantages among two policies for the sole purpose of making a sale of the one over other.
Churning - CORRECT ANSWER - The sales practice of replacing one insurance policy
for another with no apparent benefit to the insured and most notably done for the sole benefit to
the insurance agent making the sale (e.g. agent's commission).
Dispute Resolution - CORRECT ANSWER - The processes used to resolve a claim as an
alternative to having a court decide the claim outcome.
Mediation - CORRECT ANSWER - The procedure in which the insured and insurance
company claims department can discuss their claims differences with the assistance of a trained
impartial third person(s) who can assists them in reaching a claim settlement.
, Arbitration - CORRECT ANSWER - The procedure in which a claim is submitted, by
agreement of the insured and insurance company claims department to one or more arbitrators
who make a binding decision on the claim settlement.
Transacting Insurance - CORRECT ANSWER - Solicitation or inducement, preliminary
negotiations, or effectuation of a contract of insurance.
18 Years - CORRECT ANSWER - Personal Lines Agent age requirement.
Unauthorized Insurer - CORRECT ANSWER - An insurance company that is operating
without the permission or oversight of the Department.
McCarran-Ferguson Act of 1945 - CORRECT ANSWER - Law/Act which federally
mandates the state regulation of insurance.
Pre-emption - CORRECT ANSWER - ERISA's rule which declares that the federally
mandated ERISA laws supersedes state laws.
ERISA Savings Clause - CORRECT ANSWER - ERISA rule which sets apart for the
states all rights not reserved under ERISA.
ERISA Deemer Clause - CORRECT ANSWER - ERISA's rule which deems that
employee plans and trusts are not to be construed as insurance companies.
Third Degree Felony - CORRECT ANSWER - Criminal consequence for aiding and
abetting an unauthorized insurer.
Third Degree Felony - CORRECT ANSWER - Criminal consequence for acting as an
insurer without a proper license.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
License Termination - CORRECT ANSWER - This happens to an agent who willfully
"over insures" a Property & Casualty or Health Insurance policy.
The State of Florida - CORRECT ANSWER - The only Location/Geography where a
Florida Personal Lines Agent can transact Personal Lines Property & Casualty business?
Rebating - CORRECT ANSWER - Returning a portion of the premium or the agent's
commission on the premium to the insured or other inducements to place business with the agent.
Defamation - CORRECT ANSWER - The action of damaging the good reputation of
someone; slander or libel.
Unfair Discrimination - CORRECT ANSWER - Knowingly making or permitting any
unfair discrimination between individuals of the same actuarially supportable class.
Certificate of Authority - CORRECT ANSWER - The license issued by a state to an
insurance company that allows the company to conduct its business.
Misrepresentation - CORRECT ANSWER - The false advertising of insurance policies
including insurance policy benefits, advantages, conditions, or terms.
Affiliate - CORRECT ANSWER - Any company that controls, is controlled by, or is under
common control with another company.
The Insured - CORRECT ANSWER - The party named on a policy or certificate as the
individual with legal rights to the benefits provided by such policy
,Policy - CORRECT ANSWER - A contract of insurance issued by any insurer.
False Advertising - CORRECT ANSWER - Misrepresenting insurance product pricing,
features, or benefits to the consuming public.
Libel - CORRECT ANSWER - A written false statement that is damaging to another
person's reputation.
Slander - CORRECT ANSWER - A spoken false statement that is damaging to another
person's reputation.
Continuing Education - CORRECT ANSWER - Professional programs of classes for
insurance professionals to update their knowledge and skills in and of the insurance industry and
insurance products.
Record Keeping - CORRECT ANSWER - The function of making and keeping a record of
the activities and financial transactions of an insurance agency or company.
An Appointment - CORRECT ANSWER - The authorization from an insurance company
giving an agent the authority to act on its behalf as an agent.
Fiduciary - CORRECT ANSWER - The party charged with the obligation to act with the
highest degree of care and in the best interest of another.
Separate Account - CORRECT ANSWER - The "trust" fund held by an agency on behalf
of its customers which must: (1) be accessible to the department for inspection; and (2) preserve
records of premium payments for at least three years.
,Sliding - CORRECT ANSWER - When an agent fails to fully disclose all the details of,
and to obtain informed consent to, the purchase of all products and services being included in an
insurance transaction.
Coercion - CORRECT ANSWER - The unlawful boycott, coercion, and intimidation in
the business of insurance.
Unfair Claims Practice - CORRECT ANSWER - Denying claims without conducting
reasonable investigations based upon available information. Failing to promptly provide a
reasonable explanation in writing to the insured of the basis in the insurance policy for denial of
a claim or for the offer of a compromise settlement.
Fraud - CORRECT ANSWER - A false statement intended to deceive the insurer and
induce it to part with something of value or surrender a legal right.
Controlled Business. - CORRECT ANSWER - When an agent sells more than 50% of all
"sold" business to the agent directly, the agent's immediate family, the agent's employer or
employees.
Twisting
. - CORRECT ANSWER - The misrepresentation by an agent as to the advantages and
disadvantages among two policies for the sole purpose of making a sale of the one over other.
Churning - CORRECT ANSWER - The sales practice of replacing one insurance policy
for another with no apparent benefit to the insured and most notably done for the sole benefit to
the insurance agent making the sale (e.g. agent's commission).
Dispute Resolution - CORRECT ANSWER - The processes used to resolve a claim as an
alternative to having a court decide the claim outcome.
Mediation - CORRECT ANSWER - The procedure in which the insured and insurance
company claims department can discuss their claims differences with the assistance of a trained
impartial third person(s) who can assists them in reaching a claim settlement.
, Arbitration - CORRECT ANSWER - The procedure in which a claim is submitted, by
agreement of the insured and insurance company claims department to one or more arbitrators
who make a binding decision on the claim settlement.
Transacting Insurance - CORRECT ANSWER - Solicitation or inducement, preliminary
negotiations, or effectuation of a contract of insurance.
18 Years - CORRECT ANSWER - Personal Lines Agent age requirement.
Unauthorized Insurer - CORRECT ANSWER - An insurance company that is operating
without the permission or oversight of the Department.
McCarran-Ferguson Act of 1945 - CORRECT ANSWER - Law/Act which federally
mandates the state regulation of insurance.
Pre-emption - CORRECT ANSWER - ERISA's rule which declares that the federally
mandated ERISA laws supersedes state laws.
ERISA Savings Clause - CORRECT ANSWER - ERISA rule which sets apart for the
states all rights not reserved under ERISA.
ERISA Deemer Clause - CORRECT ANSWER - ERISA's rule which deems that
employee plans and trusts are not to be construed as insurance companies.
Third Degree Felony - CORRECT ANSWER - Criminal consequence for aiding and
abetting an unauthorized insurer.
Third Degree Felony - CORRECT ANSWER - Criminal consequence for acting as an
insurer without a proper license.
