Florida Life Insurance and Annuity Regulations Overview
Exam Questions With Accurate Answers.
Noncontributory group policy coverage - accurate answers-In a
noncontributory group, the policy must cover 100% of eligible persons.
Alien insurance company - accurate answers-An insurance company that is
domiciled in any country other than the United States.
Policyowner's authority - accurate answers-The policyowner has the
authority to name the beneficiary of a life insurance policy.
Hearing by Department of Financial Services - accurate answers-A hearing
may be conducted if anyone is suspected of engaging in the business of
insurance without a license.
Misstatement of age provision - accurate answers-The proceeds will be
reduced based on whatever the premium would have been if purchased at age
59.
Adjustable rates for life policy loans in Florida - accurate answers-Adjustable
rates for life insurance policy loans in Florida are based on Moody's corporate
bond index.
Suspension of agent's license - accurate answers-Working for a foreign
insurance company does not result in the revocation or suspension of an
agent's license.
Florida's definition of Life insurance replacement - accurate answers-Florida's
Replacement Rule defines replacement of Life insurance as a transaction in
which a new policy is bought and an old policy is discontinued.
Disclosure when replacing an annuity - accurate answers-An agent must
disclose the possible tax consequences of replacing or exchanging an existing
annuity or life insurance policy.
Documents for replacing life insurance policy - accurate answers-When
replacing an existing life insurance policy, an agent must submit notice to
existing insurer and replacing insurer of intentions.
,Buyer's guide - accurate answers-A document that helps prospective insureds
understand and purchase the most appropriate product.
Sliding - accurate answers-Selling additional coverage to an insurance
applicant who doesn't want or need it, often without the customer's
knowledge or consent.
Full-time employees after the probationary period - accurate answers-
Employees that may NOT be excluded from a group life plan.
Domestic insurance company - accurate answers-An insurance company
incorporated under the laws of the state in which its home office is located.
Conversion privileges in a Group Life policy - accurate answers-Group Life
coverage can normally be converted to an individual policy within 6 months.
Department of Financial Services (DFS) - accurate answers-The authority that
may investigate violations of the Florida financial institutions code.
Insurance companies' day-to-day operations - accurate answers-Situations
NOT subject to Florida life insurance laws.
Misrepresentation - accurate answers-Convincing a prospective insured to
buy an insurance policy based on exaggerations, which is illegal.
Variable annuities regulation - accurate answers-Regulated by both the
Department of Financial Services and the Securities Exchange Commission.
Group Life coverage conversion - accurate answers-Can be converted to an
individual policy at regular rates on an attained-age basis without a medical
exam.
Attorney General's office - accurate answers-One of the entities that may
investigate violations of the Florida financial institutions code.
Insurance companies' life policy replacement requirements - accurate
answers-Subject to Florida life insurance laws.
,Insurance companies' setting of life insurance policy rates - accurate answers-
Subject to Florida life insurance laws.
Insurance companies' guidelines for paying a life insurance claim - accurate
answers-Subject to Florida life insurance laws.
Twisting - accurate answers-A term that refers to the illegal act of misleading
an applicant to switch policies.
Conditional receipt - accurate answers-A document that may be provided
during the insurance application process.
Policy summary - accurate answers-A document that outlines the key features
of an insurance policy.
Illustration - accurate answers-A visual representation of the benefits and
terms of an insurance policy.
Full-time employees before the probationary period - accurate answers-
Employees that may be excluded from a group life plan.
Part-time employees - accurate answers-Employees that may be excluded
from a group life plan.
Seasonal workers - accurate answers-Employees that may be excluded from a
group life plan.
National Association of Insurance and Financial Advisors - accurate answers-
One of the entities that regulate variable annuities.
Financial Industry Regulatory Authority - accurate answers-One of the entities
that regulate variable annuities.
National Association of Insurance Commissioners - accurate answers-One of
the entities that regulate variable annuities.
Agent's primary responsibility in the application process - accurate answers-
The agent's primary responsibility in the application process is to the insurer.
, Continuing education hours for Florida resident insurance agents - accurate
answers-Florida requires that an insurance agent must complete 4 hours of
continuing education on the subject of law and ethics every two years.
Commingling - accurate answers-An agent who has combined premiums
collected with personal funds has engaged in commingling, which is a
prohibited act.
Year The Florida Office of Financial Regulation (OFR) was created - accurate
answers-The OFR was created in 2003 as the result of the Cabinet
Reorganization Act of 2002.
Continuing education hours for newly licensed agents - accurate answers-A
newly licensed agent must complete 24 hours of continuing education every 2
years.
Selling a life insurance policy for cash - accurate answers-To receive a
percentage of the policy face value, an owner of a life policy may sell the policy
to a viatical settlement provider.
Grace period for premium payment - accurate answers-If a policyowner does
not pay the premium by the due date, the premium may be paid during the
grace period.
Rebating in Florida - accurate answers-Rebating is allowed in Florida if the
agent rebates insureds in the same actuarial class.
Defamation - accurate answers-An agent who makes a statement that is
maliciously critical of another person's financial condition is guilty of
defamation.
Entity overseeing complaints against life insurance agents in Florida -
accurate answers-The Department of Financial Services (DFS), specifically the
DFS Division of Consumer Services, oversees complaints against life insurance
agents and agencies selling life insurance products.
Acceptable commission sharing between agents - accurate answers-It is
acceptable to share commissions as long as both agents are licensed for the
same lines of insurance.
Exam Questions With Accurate Answers.
Noncontributory group policy coverage - accurate answers-In a
noncontributory group, the policy must cover 100% of eligible persons.
Alien insurance company - accurate answers-An insurance company that is
domiciled in any country other than the United States.
Policyowner's authority - accurate answers-The policyowner has the
authority to name the beneficiary of a life insurance policy.
Hearing by Department of Financial Services - accurate answers-A hearing
may be conducted if anyone is suspected of engaging in the business of
insurance without a license.
Misstatement of age provision - accurate answers-The proceeds will be
reduced based on whatever the premium would have been if purchased at age
59.
Adjustable rates for life policy loans in Florida - accurate answers-Adjustable
rates for life insurance policy loans in Florida are based on Moody's corporate
bond index.
Suspension of agent's license - accurate answers-Working for a foreign
insurance company does not result in the revocation or suspension of an
agent's license.
Florida's definition of Life insurance replacement - accurate answers-Florida's
Replacement Rule defines replacement of Life insurance as a transaction in
which a new policy is bought and an old policy is discontinued.
Disclosure when replacing an annuity - accurate answers-An agent must
disclose the possible tax consequences of replacing or exchanging an existing
annuity or life insurance policy.
Documents for replacing life insurance policy - accurate answers-When
replacing an existing life insurance policy, an agent must submit notice to
existing insurer and replacing insurer of intentions.
,Buyer's guide - accurate answers-A document that helps prospective insureds
understand and purchase the most appropriate product.
Sliding - accurate answers-Selling additional coverage to an insurance
applicant who doesn't want or need it, often without the customer's
knowledge or consent.
Full-time employees after the probationary period - accurate answers-
Employees that may NOT be excluded from a group life plan.
Domestic insurance company - accurate answers-An insurance company
incorporated under the laws of the state in which its home office is located.
Conversion privileges in a Group Life policy - accurate answers-Group Life
coverage can normally be converted to an individual policy within 6 months.
Department of Financial Services (DFS) - accurate answers-The authority that
may investigate violations of the Florida financial institutions code.
Insurance companies' day-to-day operations - accurate answers-Situations
NOT subject to Florida life insurance laws.
Misrepresentation - accurate answers-Convincing a prospective insured to
buy an insurance policy based on exaggerations, which is illegal.
Variable annuities regulation - accurate answers-Regulated by both the
Department of Financial Services and the Securities Exchange Commission.
Group Life coverage conversion - accurate answers-Can be converted to an
individual policy at regular rates on an attained-age basis without a medical
exam.
Attorney General's office - accurate answers-One of the entities that may
investigate violations of the Florida financial institutions code.
Insurance companies' life policy replacement requirements - accurate
answers-Subject to Florida life insurance laws.
,Insurance companies' setting of life insurance policy rates - accurate answers-
Subject to Florida life insurance laws.
Insurance companies' guidelines for paying a life insurance claim - accurate
answers-Subject to Florida life insurance laws.
Twisting - accurate answers-A term that refers to the illegal act of misleading
an applicant to switch policies.
Conditional receipt - accurate answers-A document that may be provided
during the insurance application process.
Policy summary - accurate answers-A document that outlines the key features
of an insurance policy.
Illustration - accurate answers-A visual representation of the benefits and
terms of an insurance policy.
Full-time employees before the probationary period - accurate answers-
Employees that may be excluded from a group life plan.
Part-time employees - accurate answers-Employees that may be excluded
from a group life plan.
Seasonal workers - accurate answers-Employees that may be excluded from a
group life plan.
National Association of Insurance and Financial Advisors - accurate answers-
One of the entities that regulate variable annuities.
Financial Industry Regulatory Authority - accurate answers-One of the entities
that regulate variable annuities.
National Association of Insurance Commissioners - accurate answers-One of
the entities that regulate variable annuities.
Agent's primary responsibility in the application process - accurate answers-
The agent's primary responsibility in the application process is to the insurer.
, Continuing education hours for Florida resident insurance agents - accurate
answers-Florida requires that an insurance agent must complete 4 hours of
continuing education on the subject of law and ethics every two years.
Commingling - accurate answers-An agent who has combined premiums
collected with personal funds has engaged in commingling, which is a
prohibited act.
Year The Florida Office of Financial Regulation (OFR) was created - accurate
answers-The OFR was created in 2003 as the result of the Cabinet
Reorganization Act of 2002.
Continuing education hours for newly licensed agents - accurate answers-A
newly licensed agent must complete 24 hours of continuing education every 2
years.
Selling a life insurance policy for cash - accurate answers-To receive a
percentage of the policy face value, an owner of a life policy may sell the policy
to a viatical settlement provider.
Grace period for premium payment - accurate answers-If a policyowner does
not pay the premium by the due date, the premium may be paid during the
grace period.
Rebating in Florida - accurate answers-Rebating is allowed in Florida if the
agent rebates insureds in the same actuarial class.
Defamation - accurate answers-An agent who makes a statement that is
maliciously critical of another person's financial condition is guilty of
defamation.
Entity overseeing complaints against life insurance agents in Florida -
accurate answers-The Department of Financial Services (DFS), specifically the
DFS Division of Consumer Services, oversees complaints against life insurance
agents and agencies selling life insurance products.
Acceptable commission sharing between agents - accurate answers-It is
acceptable to share commissions as long as both agents are licensed for the
same lines of insurance.
