220 Exam Florida Statutes Final Exam A+
Questions and Answers Verified Solutions
Latest Update 2026/2027
Question:
Florida Statutes and Rules.
Answer:
In unit seventeen the student will learn about unauthorized insurance entities, insurance ethics,
wind mitigation and the Insurance Guaranty Association (FIGA).
Participants will be able to discover how the Florida Insurance Guaranty Association protects
consumers against outstanding claims when an insurance is insolvent (no longer in business).
Students will also learn about the Surplus Lines Insurance and the role the Florida Surplus Lines
Office (FSLSO) plays in regulating non- admitted insurance.
Participants will be able to discuss how ethical behavior relates to the insurance industry from the
perspective of the insurance agent and the company. Students will learn the business value of
ethical behavior and learn how unauthorized entities threaten ethical insurance behavior.
Since Florida is a hurricane state, this unit focuses on the wind discounts available to consumers in
the state. Wind mitigation is an issue important to homeowners in a state that faces the risk of
hurricanes each year. Insurance discounts are provided to insured to
take extra measures to protect their homes against the risk of high winds caused by hurricanes and
other tropical storms.
Question:
It is important to understand wind mitigation discounts in Florida because Florida is unique to the
risk of hurricanes..
Answer:
true
Question:
This unit covers Selected Florida Statutes. Florida Statutes are state laws as they apply to the
insurance industry. It is the responsibility of licensed agents to know and uphold these laws.
Students will learn the duties and functions of the Department of Financial Services and the Chief
,Financial Officer, as well as the Division of Agents and Agencies and the Office of Insurance
Regulation. Insurance definitions and agent licensing and appointment is also covered in this
chapter.
This unit concludes with a unit examination. A passing grade of 70% is required to proceed to the
next unit. An overall grade of 70% is required to pass the pre-licensing course. This unit makes up
15% of the state licensing exam. It is a separate section on the state licensing exam..
Question:
There are two sections of questions on the state exam. The first set of questions are taken from units
2-16. The second set of questions focus on the Unit 17 topics which include state laws which are
known as Florida Statutes..
Answer:
true
Question:
Agent Pre-Licensing Training:
Unauthorized Insurance Entities.
Answer:
Major Regulatory Premise
Since insurance is provided for the interest of the public, the state regulates the insurance business.
The McCarran-Ferguson Act was passed in 1945 and gives states the authority to regulate the
business of insurance without interference from federal regulation, unless federal law specifically
provides otherwise.
Question:
.
Answer:
Unauthorized Entities: Basic History, Overview and Rationale
Unauthorized entities are insurance companies operating within the state who are not authorized by
the state to sell insurance. Health insurance and workers compensation are the major areas of
insurance affected by unauthorized companies. The insurance market goes through hard and soft
cycles and unauthorized entities are usually more active during hard cycles of insurance. In recent
years the people responsible for selling unauthorized insurance have become more sophisticated
and they have created more complex schemes
,Question:
The two areas of insurance most affected by unauthorized entities are Workers compensation and
health insurance..
Answer:
true
Question:
If you're a stock car fan you may have heard of Pete Orr. Pete was a racing legend in Florida
amassing over 300 victories during his career. At the age of 46 Pete lost his battle with cancer.
What makes his death even more tragic is that he left over $250,000 in unpaid medical bills
because he was a victim of an insurance scam. He, and 7,200 other Floridians, bought insurance
from TRG Marketing LLC of Indianapolis - an unlicensed entity. Pete's situation inspired some
influential people to take a serious look at unauthorized entities selling insurance in our state.
Senate Bill 1680 (called the Pete Orr Bill) was passed allowing felony charges to be brought
against these types of entities and the agents who represent them. The bill also allows for insureds
to sue these operators and unlicensed entities in civil court.
Around 1974 problems with unauthorized health insurance entities increased. This resulted in the
E.
Question:
Problems with unauthorized entities resulted in which legislation?.
Answer:
"The Employee Retirement Income Security Act"
Question:
ERISA law.
Answer:
When Congress passed the ERISA law they intended that only single-employer health benefit plans
would preempt the Florida Insurance Code.
One of the goals of ERISA was encourage individual employers to establish employee health plans.
This allows an employer to self- insure its employees. Only the employees and their dependents of
that specific employer can get the benefits of that specific health care plan.
The plan is funded by contributions from the employer and/or employees and no sales commissions
, or profit is generated. This is an important distinction because ERISA scams involve entities
making a profit and agents making high commissions.
Question:
What government agency is responsible for enforcing ERISA?.
Answer:
U.S Department of Labor
Question:
ERISA covers only health insurance plans..
Question:
ERISA "Pre-emption" and State Insurance Regulation.
Answer:
Some of the legal issues with ERISA regulations involve the concept of "pre-emption".
Pre-emption is the claim that the insuring entity and the health plan are not subject to state
insurance regulation. The concept of pre-emption refers to ERISA Section 514(a). This section
states: ERISA supersedes any and all state laws insofar as they...relate to any employee benefit
plan.
Question:
The claim that the insuring entity and the health plan are not subject to insurance regulation is
known as: ______________.
Answer:
"Pre-emption"
Question:
The Savings and Deemer Clauses.
Answer:
Congress never intended that ERISA would relieve any person from any law of any state that
regulates insurance. This is stated within the ERISA law. This paragraph is referred to the "savings
Questions and Answers Verified Solutions
Latest Update 2026/2027
Question:
Florida Statutes and Rules.
Answer:
In unit seventeen the student will learn about unauthorized insurance entities, insurance ethics,
wind mitigation and the Insurance Guaranty Association (FIGA).
Participants will be able to discover how the Florida Insurance Guaranty Association protects
consumers against outstanding claims when an insurance is insolvent (no longer in business).
Students will also learn about the Surplus Lines Insurance and the role the Florida Surplus Lines
Office (FSLSO) plays in regulating non- admitted insurance.
Participants will be able to discuss how ethical behavior relates to the insurance industry from the
perspective of the insurance agent and the company. Students will learn the business value of
ethical behavior and learn how unauthorized entities threaten ethical insurance behavior.
Since Florida is a hurricane state, this unit focuses on the wind discounts available to consumers in
the state. Wind mitigation is an issue important to homeowners in a state that faces the risk of
hurricanes each year. Insurance discounts are provided to insured to
take extra measures to protect their homes against the risk of high winds caused by hurricanes and
other tropical storms.
Question:
It is important to understand wind mitigation discounts in Florida because Florida is unique to the
risk of hurricanes..
Answer:
true
Question:
This unit covers Selected Florida Statutes. Florida Statutes are state laws as they apply to the
insurance industry. It is the responsibility of licensed agents to know and uphold these laws.
Students will learn the duties and functions of the Department of Financial Services and the Chief
,Financial Officer, as well as the Division of Agents and Agencies and the Office of Insurance
Regulation. Insurance definitions and agent licensing and appointment is also covered in this
chapter.
This unit concludes with a unit examination. A passing grade of 70% is required to proceed to the
next unit. An overall grade of 70% is required to pass the pre-licensing course. This unit makes up
15% of the state licensing exam. It is a separate section on the state licensing exam..
Question:
There are two sections of questions on the state exam. The first set of questions are taken from units
2-16. The second set of questions focus on the Unit 17 topics which include state laws which are
known as Florida Statutes..
Answer:
true
Question:
Agent Pre-Licensing Training:
Unauthorized Insurance Entities.
Answer:
Major Regulatory Premise
Since insurance is provided for the interest of the public, the state regulates the insurance business.
The McCarran-Ferguson Act was passed in 1945 and gives states the authority to regulate the
business of insurance without interference from federal regulation, unless federal law specifically
provides otherwise.
Question:
.
Answer:
Unauthorized Entities: Basic History, Overview and Rationale
Unauthorized entities are insurance companies operating within the state who are not authorized by
the state to sell insurance. Health insurance and workers compensation are the major areas of
insurance affected by unauthorized companies. The insurance market goes through hard and soft
cycles and unauthorized entities are usually more active during hard cycles of insurance. In recent
years the people responsible for selling unauthorized insurance have become more sophisticated
and they have created more complex schemes
,Question:
The two areas of insurance most affected by unauthorized entities are Workers compensation and
health insurance..
Answer:
true
Question:
If you're a stock car fan you may have heard of Pete Orr. Pete was a racing legend in Florida
amassing over 300 victories during his career. At the age of 46 Pete lost his battle with cancer.
What makes his death even more tragic is that he left over $250,000 in unpaid medical bills
because he was a victim of an insurance scam. He, and 7,200 other Floridians, bought insurance
from TRG Marketing LLC of Indianapolis - an unlicensed entity. Pete's situation inspired some
influential people to take a serious look at unauthorized entities selling insurance in our state.
Senate Bill 1680 (called the Pete Orr Bill) was passed allowing felony charges to be brought
against these types of entities and the agents who represent them. The bill also allows for insureds
to sue these operators and unlicensed entities in civil court.
Around 1974 problems with unauthorized health insurance entities increased. This resulted in the
E.
Question:
Problems with unauthorized entities resulted in which legislation?.
Answer:
"The Employee Retirement Income Security Act"
Question:
ERISA law.
Answer:
When Congress passed the ERISA law they intended that only single-employer health benefit plans
would preempt the Florida Insurance Code.
One of the goals of ERISA was encourage individual employers to establish employee health plans.
This allows an employer to self- insure its employees. Only the employees and their dependents of
that specific employer can get the benefits of that specific health care plan.
The plan is funded by contributions from the employer and/or employees and no sales commissions
, or profit is generated. This is an important distinction because ERISA scams involve entities
making a profit and agents making high commissions.
Question:
What government agency is responsible for enforcing ERISA?.
Answer:
U.S Department of Labor
Question:
ERISA covers only health insurance plans..
Question:
ERISA "Pre-emption" and State Insurance Regulation.
Answer:
Some of the legal issues with ERISA regulations involve the concept of "pre-emption".
Pre-emption is the claim that the insuring entity and the health plan are not subject to state
insurance regulation. The concept of pre-emption refers to ERISA Section 514(a). This section
states: ERISA supersedes any and all state laws insofar as they...relate to any employee benefit
plan.
Question:
The claim that the insuring entity and the health plan are not subject to insurance regulation is
known as: ______________.
Answer:
"Pre-emption"
Question:
The Savings and Deemer Clauses.
Answer:
Congress never intended that ERISA would relieve any person from any law of any state that
regulates insurance. This is stated within the ERISA law. This paragraph is referred to the "savings
