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220 - Florida Statutes & Rules, Unauthorized Entities & Ethics Test Questions - Unit 17 Questions Answers
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220 - Florida Statutes & Rules, Unauthorized Entities & Ethics Test Questions - Unit 17
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220 - Florida Statutes & Rules,Unauthorized Entities & Ethics Test
Questions - Unit 17
What are the limits on lines and products the Customer Representative may handle? -
answer A customer representative may handle insurance business the specific
supervising insurance agent is appointed to handle.
Why are Professional Employer Organizations (PEO) or Employee Leasing Companies
not exempt from state regulation? - answer A. Florida Statute 468.529 prohibits PEOs
from sponsoring self-insured health plans.
B. Both of the answers are correct
C. None of the answers are correct
D. Even though a purported "co-employer" relationship exist, the state does not
recognize an employee/employer relationship with the employee and the PEO since the
PEO does not control the hiring and firing of employees, etc. Incorrect
BOTH ARE CORRECT
What lines of insurance are customer representatives qualified to write? - answerAny
classes of insurance that his or her appointing general lines agent or agency is currently
authorized to transact
What is meant by the term "unauthorized insurer"? - answerAny insurer who is not
authorized by the state of Florida.
What is meant by the term "foreign insurer"? - answerC. One who formed their company
in any other state (other than Florida) but within the United States, its territories or
possessions.
What are the penalties for diverting or misappropriating "trust funds"? - answerThe
penalties range from first-degree misdemeanor to first-degree felony.
What is meant by the term "Exchange of Business"? - answerAn agent may place
business with an insurer for which he or she is not appointed as an agent as long as he
or she is appointed for such business by another insurer.
What is included in "misrepresentation of insurance applications?" - answerA.
Knowingly making a false or fraudulent written or oral statement or representation on or
relative to any application or negotiation for insurance policy for the purpose of obtaining
a fee, commission, or any other benefit.
, An Alien Insurer is: - answerAn insurer formed in a country other than the United States
Describe one goal of ERISA. - answerTo encourage individual employers to establish
employee health plans for that employer's employees and dependents
An agent, customer representative or adjust who diverts or misappropriates funds
belonging to an insurer or others (trust funds) may be held responsible as follows: -
answerA. If the diverted or misappropriated funds are $300 or less, the licensee can be
charged with a first-degree misdemeanor Incorrect
B. If the diverted or misappropriated funds are hundred thousand dollars or more, the
licensee can be charged with a first-degree felony
C. If the diverted or misappropriated funds are $20,000 or more but less than $100,000,
the licensee can be charged with a second-degree felony
D. Any of the answers are correct
any are correct
What are the requirements for a licensee who changes his or her name, residence
address, principal business street address, or mailing address? - answerD. Each
licensee must notify the department in writing within 30 days of any change of name,
residence address, principal business street address, or mailing address.
What is meant by the term "Department"? - answerThe Florida Department of Financial
Services
Rebating of a portion of an agent's commission is permitted: - answerIf a rebate
schedule is prominently displayed in public view at the agent's place of business
Who may appoint a Customer Representative? - answerA general lines agent or a
general lines insurance agency
What are conditions under which a licensee can rebate a license? - answerA. Both of
the answers are correct Correct
B. None of the answers are correct
C. The rebate must be available to all insured in the same actuarial class, uniformly
applied and not subject to discrimination.
D. The rebate must be in accordance with the filed rebating schedule.
both are correct
What are "unfair claim settlement practices"? - answerAttempting to settle claims on the
basis of an application or material document which was altered without notice to or
knowledge or consent of the insured or a material misrepresentation for the purpose of
settlement of a claim on less favorable terms.
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