Florida Law Review Questions

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The entities of state government involved in the regulation of the insurance business in Florida are:

All of the Above (State Legislature, DOFS, State Courts)

The Office of Insurance Regulation is NOT concerned with which of the below?

The examination of agent's income records

The best definition of a Legal Reserve is:

The amount set aside by the company for future liabilities as required by law.

Fines and Penalties for violating provisions of agent's qualification laws included:

All the Above (denial, suspension, revocation, nonrewnal; Misdemeanor (500-3500); Imprisonment)

Florida holds which of the following responsible for the content of any Medical Supplement ad using their name even if they did not approve?

The insurer

Must a mail-order insurance company be authorized to solicit insurance in the state of FL?

Yes, and the applications must be taken by a Florida resident agent.

Fraternal insurance organizations may NOT operate as which of the following?

For-profit enterprises.

Which of the following is NOT "Transacting Insurance?"

Negotiating an agency contract

A stock insurance company is best defined as:

An insurance company owned by stockholders who direct it by means of a board of directors and officers.

The duties of The Office of Insurance Regulation do NOT included which of the following?

Assisting companies in selling and marketing

An Office of Insurance Regulation admitted insurance company that is domiciled in, and is permitted to do business in the licensing state is

A Domestic Company

Which of the following is NOT a characteristic of a mutual insurance company?

It makes a profit for stockholders.

When a stock company issues both par and non-par policies, it is referred to as doing business

on a mixed plan

Which of the following is the best definition of a Legal Reserve?

The measure of the insurance company's future liabilities to policyholders.

A life insurance company's legal reserve shows on the balance sheets as:

A liability

Will the annual premium required for a 4% reserve interest assumption be greater or smaller than a 5% reserve interest assumption?

Greater

Which of the following are the two major factors used to determine the legal reserve required for life insurance?

The Assumed Interest Rate and Mortality Tables.

Which of the following is NOT regulate insurance?

Professional associations of the insurance industry.

Grounds for refusal, revocation, or suspension, of an agent's license include:

All the above (material misstatements, violation of law, fraudulent/dishonest practice)

Which of the following does Florida law NOT regard as unfair claim settlement practices?

Failure to pay claims within 30 days.

"Twisting" in policy replacement does NOT involve which of the following?

Replacing policies after full disclosure of all relevant values and facts.

Giving a prospect or policy owner anything of significant value (+$25) as an inducement to buy insurance is called:

Rebating

Which is FALSE regarding policy replacement?

Twisting and replace are synonymous terms.

Which of the following is considered to be misrepresentation?

Making a statement, which is not entirely true about the terms of the policy.

Defamation does NOT involve which of the below?

It is an ailment suffered by aging insurance instructors.

Misappropriation does NOT include which of the following?

None of the above are exceptions (anything that ends in the agents own use)

A "fictitious group" involves organizing which of the following to buy group insurance?

Several independent realtors.

Which of the following penalties may NOT be imposed upon an agent by the Office of Insurance Regulation?

Revocation of the agent's company contract.

Fraud involves the intentional concealment of:

A material fact on an application

Monies collected by an agent are held by that agent in what capacity?

Fiduciary or "Trust"

Florida Law requires applications and policy deliveries to be completed by a licensed agent who will receive:

Regular commissions

An agent may NOT do which of the following?

Receive commissions from companies to which he or she is not appointed.

The Financial Services Modernization Act eliminated the prohibitions against the sale of insurance products by agents who are affiliated wit

All of the Above (Brokerage, Banks, Savings/Loan Organizations)

The Florida replacement rule requires a written comparison and summary statement at the request of the:

Applicant

A way in which the existing insurance may be modified that brings the transaction within the definition of replacement is:

Conversion to reduced paid-up,continured as extended term insurance, or otherwise reduced in value by use of nonforfeiture benefits/policy v

Florida rules on disclosure require:

A Buyer's Guide and summary prior to acceptance of a premium; If a 14-day free look is provided, Buyers Guide & summary at policy delivery

A Dually Licensed Agent:

Holds an insurance and a securities license at the same times

The "Spendthrift Clause" enables a beneficiary to retain all policy proceeds even though:

The beneficiary has large debts and there are no policy loans

Policy assignment describes a situation in which:

The policy owner assigns certain ownership rights to a second party

A life insurance policy is considered incontestable after it has been in force for a period for:

2 years

The Common Disaster Provision in a beneficiary designation:

Provides the sequence of policy proceeds distribution

Sharing Commissions as a "finder's fee" with unlicensed individuals is considered by the insurance professional associations to be:

Unethical and therefore illegal as well

The minimum number of members required for a group policy in Florida is:

1 as long as the organization is eligible

What is NOT eligible for group life insurance?

Encounter Groups

What is NOT a characteristic of group life insurance?

It is issued as non-cancelable

The "Fifth Dividend Option" allows the purchase of term insurance:

Equal to the current value of the cash reserve account

Who regulates insurance products used in retirement plans in Florida?

ERISA

Which of the following is NOT true about traditional Variable Life Insurance?

The policyowner may increase contributions at his discretion.

An agents written life insurance proposals are required to contain:

All the Above (name, address, signature; insurers name; date of the proposal)

Which of the following is NOT true regarding Viatical Settlement regulations?

Licensed, life insurance agents may handle a complete viatical transaction.

By Florida law, are there any limitations on a universal life policy that the cash valve accumulations receive favorable tax treatment?

Yes, a specific percentage of all premiums must be used to purchase death benefits to age 95 or the product will not receive tax on its cash

The Coordination of Benefits provision is:

A cost-containment measure for group insurance.

The Office of Insurance Regulation governs health insurance rates based upon which of the following:

Loss Ratios

The Florida health Care Access Act of 1992-93 did NOT accomplish which of the following?

The elimination of preexisting conditions.

For policyholders over 64, before a contract is lapsed for nonpayment, which of the following is NOT required?

The agent must call the policyholder at least 14 days before any action is taken.

A handicapped child will continue to receive insurance benefits after becoming an adult unless which of the following is true?

She is financially independent from unearned income.

When are newborn children covered on Family Health policies if no additional premium has been paid or application made prior to birth?

Newborns are covered from the moment of birth.

The Coordination of Benefits provision is:

A cost-containment measure for group insurance.

Which of the following is/are NOT excluded from coverage in Personal Health Policies?

Injuries caused by careless or stupid acts of the insured.

Under Florida Law, which, if any, of the following coverages is mandatory on every health policy?

None of the above

Since injuries or illnesses treated in Ambulatory Surgical and Outpatient Service Centers are often not serious, Florida Law

Does still require their expense to be covered.

Medicare Supplement are NOT designed to pay benefits for which of the following?

Procedures not eligible for Medicare reimbursement.

Which of the following is NOT a required health policy provision?

Change of Occupation.

Which of the following is not an optional health policy provision?

Time limit on Certain Defenses provision

An insurance company may refuse coverage for all the following EXCEPT:

An insured has the SICKLE-CELL trait

Which of the below is a correct statement concerning the MIB?

Applicants must be advised in writing that the insurer may make a brief report on their health to the MIB

Which type of policy requires the most comprehensive underwriting?

Noncancellable Disability Income

The minimum grace period permitted on a Florida health policy is:

7 days for weekly; 10 days for monthly

Who responsibility is it to keep Office of Insurance Regulation advised as to the correct home, business address, & name changes of agent?

The agent is responsible.

Proof of Loss for a health policy benefit:

Requires that medical bills or the amount of income loss be included

Which of the below is premitted to solicit genetic information for underwriting purposes?

None of the above.

An insurer may require an independent medical examination or an autopsy:

Even if it duplicates the work of the insured's own physician.

What kind of health policy would not require a beneficiary designation?

A Group disability income policy.

John instated his health policy on 08/10/2005. On 08/15/2005 he required emergency appendectomy costing $50K. The insurer will:

Refuse to pay because it occureed less than 10 days after reinstatement

In the underwriting of health insurance, a primary consideration as to occupational risk is the:

Morbidity probability on a particular job

Which health policy probably contains a "Change of Occupation" clause by law?

None of the Above.

Florida has a small group regulation very similar to the federal COBRA regulation which:

Requires extended health coverage be available for ex-employees for up to 18 months.

Medicare Part A does NOT cover which of the following:

Drugs taken at home

Which of the following is NOT covered under Medicare Part A?

Physicians and surgeons services

A post-hospital recipient of Medicare Part A is NOT covered for which of the following:

Pre-paid prescription Delivery

Which of the following is true about long-term care policies?

Benefits under $340 daily (16) are not considered taxable income.

The Medicaid program is:

Operated by the respective state welfare departments

HMO (care delivery systems) and Preferred Provide Organizations:

Actually are totally different in concept.

The Florida Employee Health Care Access Act of 1993 amended in 2013 requires:

One-person group enrollment is to be conducted only during Aug 1-31

Group Health Insurance may included:

Any of the above (Comprehensive, AD , Disability Income)

Which of the following contracts CANNOT be written on a group basis:

Business Overhead Expense

A non-cancellation disability policy is usually renewable until age 65:

But may require COLA riders to be attached

Concerning the taxation of health insurance benefits, which of the following is NOT true:

Premiums paid by employers for major medical benefits are considered income to the employee

An organization that stresses curative treatment and reimbursement:

Commercial Provider

Agents must be especially wary of group health plans, which are represented as:

Cafeteria plans

Any plan to qualify as a MEWA must cover at least:

2 employees

In the complicated insurance purchasing process where are the most serious ethical problems apt to occur?

During the presentation and close

Which of the following phrases are no longer a legal term to use in a presentation?

Vanishing premium

Which of the following statements pertaining to Medicare is CORRECT?

Part A & B has no stop loss

How is Medicaid coverage determined?

By meeting certain assets and income analysis

The Elimination period is the same as the:

Deductible period

Which of the following means the policy is guaranteed renewable at the same premium?

Non-cancellable

An insurance contract is deemed adhesive when the contract is:

Ambiguous

Florida requires that a business must offer the choice of a HMO if they have at least this many employees?

The definition of controlled business is:

An agent who only places his own life insurance.

When replacement insurance is issued, who must send written notice of the policy to the new insurance company:

The agent for the new insurance company.

When you travel on an airline carrier, what kind of insurance would you purchase?

Limited Risk

All are elements of term insurance EXCEPT:

Leverage

If an agent does not participate in new sales, how long before he/she becomes a new applicant?

4 years

When one insurance company transfer its risk to another insurance company, the company that acquires the risk is called the:

Reinsurer

What is the primary difference between a SEP and an IRA?

High contribution limit

To what is a Stock Bonus Plan related?

Defined Contribution

What is the Free Look period for Medicare supplement policies?

30 days

Universal Life policies are purchased mainly by:

individuals

Which provision is required when a loss occurs?

Notice of Claim

For what reason could someone be denied health insurance?

Residence

Can the same agent be designated as the agent in charge for more than one agency location?

Yes - as long as insurance activities do not occur when the agent is not physically present