FLORIDA PERSONAL LINES LATEST UPDATED EXAMINATION
QUESTIONS WITH VERIFIED A+ ANSWERS
Insurance Transaction
-soliciting and inducing individuals to purchase insurance;
-engaging in preliminary negotiations for insurance;
-making an insurance contract; and
-transacting matters after a contract has been issued that are related to the policy.
Insurance Solicitation
-describing a policy's benefits, terms, premiums, or rates of return;
-distributing an invitation to contract;
-making product recommendations;
-completing orders or applications for insurance;
-comparing insurance products, giving advice about insurance, or interpreting policies; or
-offering to negotiate a viatical settlement contract for another person.
Insurer
the person or entity that agrees to indemnify the insured person or organization under an insurance or
annuity contract.
** must have a certificate of authority from the Office of Insurance Regulation (OIR).
Domestic
is formed under the laws of Florida.
Foreign Insurer
is formed under the laws of a state, district, territory, or commonwealth of the United States other than
Florida.
Alien insurer
is incorporated and organized in any country other than the United States.
Admitted or Authorized Insurer
An insurer that has a certificate of authority
Nonadmitted or Unauthorized Insurer
A company that does not have a certificate of authority
unlicensed or unauthorized insurer
is an insurer that that has not been approved by the Office of Insurance Regulation to write insurance in
the state
, Stock Insurer
an incorporated insurer owned by stockholders.
Ownership is evidenced by shares of stock, and profits are distributed as stock dividends.
Mutual Insurer
an incorporated insurer but is owned by its policyholders, who hold policies as their evidence of
ownership.
*not have permanent capital stock and has a governing body elected by its policyholders.
Risk Retention Group
a group of similar entities who agree to self-insure their losses. They spread the liability risk of individual
members to all members of the group.
Fraternal Life Insurance Organizations
A fraternal benefit society is a nonprofit entity that
-operates on the lodge system;
-has a representative form of government;
-has no capital stock; and
-sells insurance primarily to its members.
Mutualization
When a domestic fraternal benefit society may be converted and licensed as a mutual life insurance
company.
Florida Life and Health Guaranty Association- Purpose
protects policyowners, insureds, beneficiaries, annuitants, payees, and assignees of life insurance
policies, health insurance policies, and annuity contracts if an insurer fails to perform its contractual
obligations because it becomes impaired or insolvent.
**ALL insurers must be members including fraternity
Florida Life and Health Guaranty Association- Powers & Duties
If a domestic insurer becomes impaired, the association can
-guarantee, assume, or reinsure the insurer's policies and contracts;
-provide money, pledges, and guarantees to assume payment of the insurer's obligations; and
-loan money to the insurer.
If a domestic insurer becomes insolvent, the association can
-guarantee, assume, or reinsure an insurer's policies; and
-provide money, pledges, notes, or guarantees to assure payment of the insurer's contractual
obligations.
QUESTIONS WITH VERIFIED A+ ANSWERS
Insurance Transaction
-soliciting and inducing individuals to purchase insurance;
-engaging in preliminary negotiations for insurance;
-making an insurance contract; and
-transacting matters after a contract has been issued that are related to the policy.
Insurance Solicitation
-describing a policy's benefits, terms, premiums, or rates of return;
-distributing an invitation to contract;
-making product recommendations;
-completing orders or applications for insurance;
-comparing insurance products, giving advice about insurance, or interpreting policies; or
-offering to negotiate a viatical settlement contract for another person.
Insurer
the person or entity that agrees to indemnify the insured person or organization under an insurance or
annuity contract.
** must have a certificate of authority from the Office of Insurance Regulation (OIR).
Domestic
is formed under the laws of Florida.
Foreign Insurer
is formed under the laws of a state, district, territory, or commonwealth of the United States other than
Florida.
Alien insurer
is incorporated and organized in any country other than the United States.
Admitted or Authorized Insurer
An insurer that has a certificate of authority
Nonadmitted or Unauthorized Insurer
A company that does not have a certificate of authority
unlicensed or unauthorized insurer
is an insurer that that has not been approved by the Office of Insurance Regulation to write insurance in
the state
, Stock Insurer
an incorporated insurer owned by stockholders.
Ownership is evidenced by shares of stock, and profits are distributed as stock dividends.
Mutual Insurer
an incorporated insurer but is owned by its policyholders, who hold policies as their evidence of
ownership.
*not have permanent capital stock and has a governing body elected by its policyholders.
Risk Retention Group
a group of similar entities who agree to self-insure their losses. They spread the liability risk of individual
members to all members of the group.
Fraternal Life Insurance Organizations
A fraternal benefit society is a nonprofit entity that
-operates on the lodge system;
-has a representative form of government;
-has no capital stock; and
-sells insurance primarily to its members.
Mutualization
When a domestic fraternal benefit society may be converted and licensed as a mutual life insurance
company.
Florida Life and Health Guaranty Association- Purpose
protects policyowners, insureds, beneficiaries, annuitants, payees, and assignees of life insurance
policies, health insurance policies, and annuity contracts if an insurer fails to perform its contractual
obligations because it becomes impaired or insolvent.
**ALL insurers must be members including fraternity
Florida Life and Health Guaranty Association- Powers & Duties
If a domestic insurer becomes impaired, the association can
-guarantee, assume, or reinsure the insurer's policies and contracts;
-provide money, pledges, and guarantees to assume payment of the insurer's obligations; and
-loan money to the insurer.
If a domestic insurer becomes insolvent, the association can
-guarantee, assume, or reinsure an insurer's policies; and
-provide money, pledges, notes, or guarantees to assure payment of the insurer's contractual
obligations.
