8 - FLORIDA LAWS AND RULES PERTINENT TO INSURANCE EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++
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LAWS AND RULES PERTINENT TO INSURANCE
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LAWS AND RULES PERTINENT TO INSURANCE
8 - FLORIDA LAWS AND RULES PERTINENT TO INSURANCE EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++
A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast?
Stock company is owned by its shareholders. Mutual company...
A mutual insurance company and a stock insurance company have one main difference between them.
What is this major contrast?
Stock company is owned by its shareholders. Mutual company is owned by its policyholders.
Which of the following situations does NOT apply to the Florida Replacement Rule?
*An existing policy is reissued with a reduction in cash value
*A new policy is issued while an existing one is surrendered
*An existing policy is subject to extensive borrowing
* An existing policyholder purchases an additional policy from the same insurer
An existing policyholder purchases an additional policy from the same insurer
Florida's Replacement Rule applies to all of these situations EXCEPT "An existing policyholder purchases
an additional policy from the same insurer".
An example of an unfair claims practice would be
failing to effectuate prompt, fair, and equitable settlements of a claim
In Florida, an insurer domiciled and incorporated in this state is called a(n)
,domestic company
Which of the following is NOT considered rebating?
* Sharing commissions with an agent licensed in the
same line of business
* Returning premium to a client as an inducement for purchasing a policy
* Giving something of value to an insured in exchange for their business
* Offering special dividends
Sharing commissions with an agent licensed in the same line of business
Which of the following is NOT a consequence for placing business with an unauthorized insurer?
*Third degree felony
*First degree misdemeanor
* Insurance license revoked
*Responsible for unpaid claims
The correct answer is "First degree misdemeanor". All of these are possible consequences for placing
business with an unauthorized insurer EXCEPT the conviction of a first degree misdemeanor.
In Florida, a health policy that is paid on a quarterly basis requires a grace period of
31 days
During the course of an insurance transaction, if an agent makes a false or incomplete statement,
he/she could be found guilty of
misrepresentation
, The coordination of benefits (COB) provision exists in order to
avoid duplication of benefit payments
The purpose of the coordination of benefits (COB) provision, found only in group health plans, is to avoid
duplication of benefit payments.
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
Florida Replacement Rule
When is a Group Health policy required to provide coverage for a newborn child?
At the moment of birth
What is Florida's definition of Life insurance replacement?
A transaction in which a new policy is bought and an old policy is terminated
What is required in the Florida Employee Health Care Access Act?
Small group benefit plans are to be issued on a "guarantee-issue" basis
What do families pay that are covered by the Florida Healthy Kids Corporation?
A portion of the premium
When replacing or exchanging an annuity, the agent must disclose to the annuitant
the possible tax ramifications as a result of the transaction
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