Florida Laws and Rules Pertinent to Insurance Ch. 8 Exam Questions with 100% Correct and Verified Answers. Latest!

Florida Laws and Rules Pertinent to Insurance Ch. 8 Exam Questions with 100% Correct and Verified Answers. Latest! How many hours of continuing education must a newly licensed agent complete every two years - Correct Answer 24" "Florida's 14-day free-look period for life insurance policies begins at the - Correct Answer date of delivery" "The Bureau of Unclaimed Property is overseen by the - Correct Answer Chief Financial Officer" "W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim? - Correct Answer The proceeds would be reduced based on whatever the premium would have been if purchased at age 59" "An agent's license can be suspended or revoked by - Correct Answer writing primarily controlled business" "An example of an unfair claims practice would be - Correct Answer failing to effectuate prompt, fair and equitable settlements of a claim" "Florida requires that coverage for newborns begins "from the moment of birth" and continues for - Correct Answer 18 months" "Advertising gifts not to exceed ___ are allowed to be given by an agent to a prospective client. - Correct Answer $25" "In Florida, most life insurance policies have a contestability period of - Correct Answer 2 years" "All of the following are Nonforfeiture Options EXCEPT - Correct Answer Automatic Premium Loan Option" "All of the following are eligibility requirements for an association group EXCEPT - Correct Answer Contributory plans require a minimum of 25 participants" "K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take? - Correct Answer Pay monetary restitution to the client" "Which of the following is NOT required in the Outline of Coverage for a health insurance policy? - Correct Answer Projection of the policy's future costs" "The coordination of benefits (COB) provision exists in order to - Correct Answer avoid duplication of benefit payments" "Under an Individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured? - Correct Answer Monthly" "Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA). - Correct Answer 20" "Group Life policies in Florida are required to contain a conversion privilege that allows for conversion - Correct Answer to an individual policy for a stated period of time" "When replacing or exchanging an annuity, the agent must disclose to the annuitant - Correct Answer the possible tax ramifications as a result of the transaction" "All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT - Correct Answer An agent's commission" "A foreign insurance company doing business in Florida - Correct Answer is a company that was formed under the laws of another state" "Which entity approves the insurance policy forms used in Florida? - Correct Answer Office of Insurance Regulation (OIR)" "In Florida, when agents recommend changes be made for existing coverage, the agent must follow established procedures. The name of this rule is called the - Correct Answer Florida Replacement Rule" "A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as a(n) - Correct Answer broker dealer" "Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy? - Correct Answer Notice to existing and replacing insurers of intention to replace" "Which of the following is considered to be misrepresentation? - Correct Answer An agent guaranteeing a policy's dividends" "Which of the following is a standard provision of the conversion privileges in a Group Life policy? - Correct Answer Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis" "In Florida, a health policy that is paid on a quarterly basis requires a grace period of - Correct Answer 31 days" "J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of? - Correct Answer Coercion" "Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency? - Correct Answer The amount of premium collected at this location" "An agent who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed - Correct Answer twisting" "In Florida, agents are allowed to engage in rebating if - Correct Answer offered to all insureds in the same actuarial class" "In Florida, monthly-premium health insurance policies must provide a grace period of at least - Correct Answer 10 days" "During the course of an insurance transaction, if an agent makes a false or incomplete statement, he/she could be found guilty of - Correct Answer misrepresentation" "When is a Group Health policy required to provide coverage for a newborn child? - Correct Answer At the moment of birth" "According to Florida law, a Group Life insurance policy requires a minimum of how many insureds? - Correct Answer No minimum" "During the application process, the agent's primary responsibility is to - Correct Answer the insurance company" "Agents that have been licensed for less than six years must complete __ hours of continuing education every two years. - Correct Answer 24" "Which of the following employees may NOT be excluded from a group life plan? - Correct Answer full-time employees after the probationary period" "A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's termination? - Correct Answer 31 days" "An applicant who pays the initial premium at the time of application is typically given a(n) - Correct Answer conditional receipt" "How can an agent-in-charge have more than one location? - Correct Answer Only if the agent-in-charge is present when insurance activity occurs" "The Florida Employee Health Care Access Act was established to make - Correct Answer group health insurance available to employers with up to 50 employees" "In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n) - Correct Answer foreign company" "Which of the following situations does NOT apply to the Florida Replacement Rule? - Correct Answer An existing policyholder purchases an additional policy from the same insurer" "Which of the following is considered an accurate statement of an unfair trade practice? - Correct Answer Twisting involves an agent using misrepresentation to convince a policy owner to cancel their current policy so that they can purchase a new life insurance policy with another company" "The act of an insurance company publishing misleading information about its policy's provisions is called - Correct Answer false advertising" "Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund? - Correct Answer 30" "A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss? - Correct Answer Twenty" "According to Florida Law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy? - Correct Answer The premiums for the handicapped child are not paid" "The Financial Services Commission may hold hearings - Correct Answer for any reason deemed necessary" "What is the main reason for regulating the insurance industry? - Correct Answer Maintain the solvency of insurance companies" "An individual covered under a Group Life insurance policy is considered to be a(n) - Correct Answer certificate holder" "Which of the following provisions is NOT required in HMO contracts/certificates? - Correct Answer Seven-day grace period" "The minimum age at which a person can sign a life insurance application is - Correct Answer 15" "Which of the following acts is an agent NOT authorized to do on behalf of an insurer? - Correct Answer Authorize claim payments" "What are adjustable rates for life policy loans in Florida based on? - Correct Answer Moody's corporate bond index" "Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract - Correct Answer once each year" "As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? - Correct Answer Coercion" "What is the purpose of the Life and Health Insurance Guaranty Association? - Correct Answer Protects policy owners against insolvent insurance companies" "According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant? - Correct Answer at the time of application" "An agent selling Medicare Supplement policies must provide every applicant with a(n) - Correct Answer Suitability form" "An insurance company can contest a life insurance contract due to application fraud within - Correct Answer 2 years" "A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value. - Correct Answer vatical settlement provider" "What do families pay that are covered by the Florida Healthy Kids Corporation? - Correct Answer A portion of their premiums" "The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond - Correct Answer 6 months" "What is Florida's definition of Life insurance replacement? - Correct Answer A transaction in which a new policy is bought and an old policy is terminated" "J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? - Correct Answer Twisting" "In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies? - Correct Answer Naturopaths" "Association Plans that are designed to provide health benefits to their members are regulated by the state because - Correct Answer they are insured by an authorized insurer" "According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase? - Correct Answer Martial status" "What percentage of eligible persons must a policy cover in a noncontributory group? - Correct Answer 100%" "If an agent would like to sell Variable annuities, which state examination must the agent pass? - Correct Answer Life and Variable contracts" "Which of the following professional organizations has its code of ethics incorporated into Florida law? - Correct Answer National Association of Insurance and Financial Advisors (NAIFA)" "A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast? - Correct Answer Stock company is owned by its shareholders. Mutual company is owned by its policyholders" "Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy? - Correct Answer Limitation on pre-exhisting conditions for up to 12 months" "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 - Correct Answer fiduciary responsibility"