1|Page
FLORIDA LAWS AND RULES EXAM 2|| ACCURATE
AND FREQUENTLY TESTED QUESTIONS AND 100%
CORRECT ANSWERS WITH RATIONALES|| LATEST
AND COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS|| SURE PASS!!
Which of the following is considered an accurate statement of an unfair trade
practice? - ANSWER: Twisting involves an agent using misrepresentation to
convince a policyowner to cancel their current policy so that they can purchase a
new life insurance policy with another company
Under Florida law, a variable annuity policyowner must be notified of the
accumulated value of the contract - ANSWER: once each year
The Department may request all of these during the licensing application process
EXCEPT - ANSWER: drug test
Which two entities regulate variable annuities? - ANSWER: Department of
Financial Services; and Securities Exchange Commission
Group Life policies in Florida are required to contain a conversion privilege that
allows for conversion - ANSWER: to an individual policy for a stated period of
time
According to Florida law, which of the following information does NOT need to
be obtained by an agent recommending an annuity purchase? - ANSWER: marital
status
Which of the following acts is an agent NOT authorized to do on behalf of an
insurer? - ANSWER: Authorize claim payments
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According to Florida's rules on disclosure, a life insurance applicant is expected to
be provided with - ANSWER: a Buyer's Guide and Policy Summary
An insurance company can contest a life insurance contract due to application
fraud within - ANSWER: 2 years
An insurance company incorporated under the laws of the state in which its home
office is located is called a(n) ______ company. - ANSWER: domestic
Which of the following areas of state regulation is NOT protected by the savings
clause in ERISA? - ANSWER: commerce
A life policy loan in Florida cannot charge a fixed rate of interest higher than -
ANSWER: 10%
T is an agent and when hired, is reminded that he has a responsibility to handle
clients' funds in an honest and ethical manner. This responsibility is referred to as -
ANSWER: Fiduciary responsibility
Which Unfair Trade Practice involves an agent suggesting that an insurance policy
is like a share of stock? - ANSWER: Misrepresentation
Nonprofit life insurance providers that are covered by a special section in the
Florida insurance code are called - ANSWER: Fraternal life insurance
organizations
Florida resident insurance agents must complete ___ hours of law and ethics
continuing education every two years - ANSWER: 4
FLORIDA LAWS AND RULES EXAM 2|| ACCURATE
AND FREQUENTLY TESTED QUESTIONS AND 100%
CORRECT ANSWERS WITH RATIONALES|| LATEST
AND COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS|| SURE PASS!!
Which of the following is considered an accurate statement of an unfair trade
practice? - ANSWER: Twisting involves an agent using misrepresentation to
convince a policyowner to cancel their current policy so that they can purchase a
new life insurance policy with another company
Under Florida law, a variable annuity policyowner must be notified of the
accumulated value of the contract - ANSWER: once each year
The Department may request all of these during the licensing application process
EXCEPT - ANSWER: drug test
Which two entities regulate variable annuities? - ANSWER: Department of
Financial Services; and Securities Exchange Commission
Group Life policies in Florida are required to contain a conversion privilege that
allows for conversion - ANSWER: to an individual policy for a stated period of
time
According to Florida law, which of the following information does NOT need to
be obtained by an agent recommending an annuity purchase? - ANSWER: marital
status
Which of the following acts is an agent NOT authorized to do on behalf of an
insurer? - ANSWER: Authorize claim payments
, 2|Page
According to Florida's rules on disclosure, a life insurance applicant is expected to
be provided with - ANSWER: a Buyer's Guide and Policy Summary
An insurance company can contest a life insurance contract due to application
fraud within - ANSWER: 2 years
An insurance company incorporated under the laws of the state in which its home
office is located is called a(n) ______ company. - ANSWER: domestic
Which of the following areas of state regulation is NOT protected by the savings
clause in ERISA? - ANSWER: commerce
A life policy loan in Florida cannot charge a fixed rate of interest higher than -
ANSWER: 10%
T is an agent and when hired, is reminded that he has a responsibility to handle
clients' funds in an honest and ethical manner. This responsibility is referred to as -
ANSWER: Fiduciary responsibility
Which Unfair Trade Practice involves an agent suggesting that an insurance policy
is like a share of stock? - ANSWER: Misrepresentation
Nonprofit life insurance providers that are covered by a special section in the
Florida insurance code are called - ANSWER: Fraternal life insurance
organizations
Florida resident insurance agents must complete ___ hours of law and ethics
continuing education every two years - ANSWER: 4
