FLORIDA STATUTES LATEST 2026 TEST PAPER QUESTIONS
AND ANSWERS RATED A+
✔✔twisting - ✔✔________________ is knowingly making any misleading
representations as an inducement to a sale.
✔✔churning - ✔✔An agent has sold an insured a replacement policy with the sole
purpose of earning an additional commission. This is known as.....?
✔✔sliding - ✔✔An agent has charged an applicant for a specific ancillary coverage or
product, in addition to the cost of the insurance coverage applied for, without the
informed consent of the applicant. This is known as....?
✔✔indemnify - ✔✔Insurance is a contract whereby one undertakes to _________
another or pay or allow a specified amount or a determinable benefit upon determinable
contingencies.
✔✔terminated - ✔✔A Personal Lines Agent can have their license ________________
if he or she materially misrepresented themselves in their insurance license application.
✔✔18 - ✔✔According to F.S. 626.731(1)(a) an applicant must be ___ years old to be
eligible for a Personal Lines insurance license.
✔✔facts - ✔✔Unfair claim settlement practices include misrepresenting pertinent
_______________ or relating to claims coverage issues.
✔✔unpaid - ✔✔A consequence for acting as an insurer without proper licensure include
the liability for any ____________ claims.
✔✔rebating - ✔✔What is a Personal Lines Agent guilty of who pays a portion of their
commission to an insured so the insured will buy insurance from the agent?
✔✔arbitration - ✔✔What is 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.
✔✔advertising - ✔✔False _______________ is the misrepresentation of insurance
product pricing, features, or benefits to the consuming public.
✔✔continuing education - ✔✔What do we call the professional programs of classes and
courses for insurance professionals to update their knowledge and skills in and of the
insurance industry and insurance products.
, ✔✔transactions - ✔✔Record keeping is the process of making and keeping a record of
the activities and financial ________________ of an insurance agency or insurance
company.
✔✔fiduciaries - ✔✔______________ are charged with the obligation to act with the
highest degree of care and in the best interest of another.
✔✔alternative - ✔✔Dispute Resolution is the processes used to resolve a claim as an
_______________ to having a court decide the claim outcome.
✔✔mediation - ✔✔________________ is 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.
✔✔unpaid - ✔✔Unauthorized entities present a regulatory concern because of the
potential for __________ claims
✔✔authorized - ✔✔According to Florida Statute 624.09 an "________________"
insurer is one with an authorized certificate of authority issued by the department to
transact insurance in this state.
✔✔attorney-in-fact - ✔✔A reciprocal exchange is legally controlled by an
______________________.
✔✔transact - ✔✔An "authorized" insurer is one with an authorized Certificate of
Authority issued by the department to __________________ insurance in this state.
✔✔domestic - ✔✔A _______ insurer is one formed under the laws of the state the
agent resides in.
✔✔demutualization - ✔✔A Mutual Company becomes a Stock Company through the
process of _________________.
✔✔control - ✔✔The difference between a Stock Insurance Company and a Mutual
Insurance Company is ownership and ______________.
✔✔savings - ✔✔ERISA has a "_______ clause" which sets apart for the states all rights
not reserved under ERISA.
✔✔insurer - ✔✔An _______ includes every person engaged as indemnitor, surety, or
contractor in the business of entering into contracts of insurance or of annuity.
AND ANSWERS RATED A+
✔✔twisting - ✔✔________________ is knowingly making any misleading
representations as an inducement to a sale.
✔✔churning - ✔✔An agent has sold an insured a replacement policy with the sole
purpose of earning an additional commission. This is known as.....?
✔✔sliding - ✔✔An agent has charged an applicant for a specific ancillary coverage or
product, in addition to the cost of the insurance coverage applied for, without the
informed consent of the applicant. This is known as....?
✔✔indemnify - ✔✔Insurance is a contract whereby one undertakes to _________
another or pay or allow a specified amount or a determinable benefit upon determinable
contingencies.
✔✔terminated - ✔✔A Personal Lines Agent can have their license ________________
if he or she materially misrepresented themselves in their insurance license application.
✔✔18 - ✔✔According to F.S. 626.731(1)(a) an applicant must be ___ years old to be
eligible for a Personal Lines insurance license.
✔✔facts - ✔✔Unfair claim settlement practices include misrepresenting pertinent
_______________ or relating to claims coverage issues.
✔✔unpaid - ✔✔A consequence for acting as an insurer without proper licensure include
the liability for any ____________ claims.
✔✔rebating - ✔✔What is a Personal Lines Agent guilty of who pays a portion of their
commission to an insured so the insured will buy insurance from the agent?
✔✔arbitration - ✔✔What is 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.
✔✔advertising - ✔✔False _______________ is the misrepresentation of insurance
product pricing, features, or benefits to the consuming public.
✔✔continuing education - ✔✔What do we call the professional programs of classes and
courses for insurance professionals to update their knowledge and skills in and of the
insurance industry and insurance products.
, ✔✔transactions - ✔✔Record keeping is the process of making and keeping a record of
the activities and financial ________________ of an insurance agency or insurance
company.
✔✔fiduciaries - ✔✔______________ are charged with the obligation to act with the
highest degree of care and in the best interest of another.
✔✔alternative - ✔✔Dispute Resolution is the processes used to resolve a claim as an
_______________ to having a court decide the claim outcome.
✔✔mediation - ✔✔________________ is 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.
✔✔unpaid - ✔✔Unauthorized entities present a regulatory concern because of the
potential for __________ claims
✔✔authorized - ✔✔According to Florida Statute 624.09 an "________________"
insurer is one with an authorized certificate of authority issued by the department to
transact insurance in this state.
✔✔attorney-in-fact - ✔✔A reciprocal exchange is legally controlled by an
______________________.
✔✔transact - ✔✔An "authorized" insurer is one with an authorized Certificate of
Authority issued by the department to __________________ insurance in this state.
✔✔domestic - ✔✔A _______ insurer is one formed under the laws of the state the
agent resides in.
✔✔demutualization - ✔✔A Mutual Company becomes a Stock Company through the
process of _________________.
✔✔control - ✔✔The difference between a Stock Insurance Company and a Mutual
Insurance Company is ownership and ______________.
✔✔savings - ✔✔ERISA has a "_______ clause" which sets apart for the states all rights
not reserved under ERISA.
✔✔insurer - ✔✔An _______ includes every person engaged as indemnitor, surety, or
contractor in the business of entering into contracts of insurance or of annuity.
