8 - Florida Laws And Rules Pertinent To Insurance (Test Only Has 40 Questions)

Projection of the policy's future costs ( "Projection of the policy's future costs". A table indicating the policy's projected future costs is not required in an Outline of Coverage.

Twenty (Correct.) Written notice of a claim must be given to the insurer within 20 days.

24 ( "24". A newly licensed agent must complete 24 hours of continuing education every 2 years.

10% (Correct.) The maximum fixed interest rate permitted on a life policy loan is 10%.

Protects policyowners against insolvent insurance companies ( "Protects policyowners against insolvent insurance companies". The Life and Health Insurance Guaranty Association is an association that protects policyowners against insolvent insurance companies.

Fraternal life insurance organizations (Correct.) A fraternal life insurance organization is a nonprofit provider of life insurance that is covered by a special section of the Florida insurance code.

0% ( "0%". Most noncontributory group health plans require 100% participation by eligible members. Under Florida law, there is no specific minimum percentage participation for employees covered by employee group health insurance.

2 years (Correct.) The maximum contestability period for most life insurance policies is 2 years.

48 months (Correct.) An agent's license will terminate if the agent allows 48 months to elapse without being appointed for the class or classes of insurance listed on the license.

Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis (Correct.) Conversion at regular rates on an attained-age basis without a medical exam is a standard provision for conversion privileges in Group Life policies.

the policyowner (Correct.) The replacement of existing life insurance policies with new contracts of life insurance requires a written Comparison and Summary Statement at the policyowner's request.

Automatic Premium Loan Option (Correct.) An automatic premium loan is not considered a Nonforfeiture Option.

the insurance company ( "the insurance company". The agent's primary responsibility in the application process is to the insurer.

they are insured by an authorized insurer ( "they are insured by an authorized insurer". Association Plans must be fully insured by an authorized insurer. The insurer is subject to state regulation.

31 days (Correct.) Florida law requires that the minimum grace period on a health insurance policy paid on a quarterly basis is 31 days.

First degree misdemeanor (Correct.) All of these are possible consequences for placing business with an unauthorized insurer EXCEPT the conviction of a first degree misdemeanor.

conditional receipt (Correct.) A conditional receipt is normally given to an applicant who pays the initial premium at the time of application.

to an individual policy upon employment termination (Correct.) When an employee covered on a Group Life policy leaves the group, the conversion privilege gives the employee the right to convert to an individual policy upon termination of employment.

viatical settlement provider ( "viatical settlement provider". To receive a percentage of the policy face value, an owner of a life policy may sell the policy to a viatical settlement provider.

31 days (Correct.) If a group plan is terminated, covered persons are guaranteed coverage for 31 days after termination.

Life and Variable contracts ( "Life and Variable contracts". An agent who wants to sell Variable annuities must be licensed by the state which includes examinations in Life and Variable contracts.

Its policyholders (Correct.) A mutual insurance company is owned by its policyholders.

group health insurance available to employers with up to 50 employees (Correct.) The purpose of the Florida Employee Health Care Access Act is to make group health insurance available to employers with 50 or fewer employees.

20 (Correct.) Florida's Mini COBRA regulation entitles individuals to continuation of coverage for groups with less than 20 full-time employees.

date of delivery (Correct.) In Florida, the free-look period for life insurance contracts is 14 days from policy delivery.

18 months (Correct.) Florida requires that newborn coverage begins "from the moment of birth" and continues for eighteen (18) months.

5 (Correct.) Florida requires that an insurance agent must complete 5 hours of continuing education on the subject of law and ethics every two years.

charging for an additional product without the applicant's consent (Correct.) Sliding involves selling additional coverage to an insurance applicant who doesn't want or need it. An agent will often "slide" this additional coverage in without the customer's knowledge or consent.

$25 (Correct.) An agent is allowed to give advertising gifts to a prospective customer, provided they do not exceed $25.

offered to all insureds in the same actuarial class ( "offered to all insureds in the same actuarial class". Rebating is allowed in Florida if the agent rebates insureds in the same actuarial class.

for any reason deemed necessary (Correct.) The Financial Services Commission may hold hearings for any purpose within the scope of the insurance code deemed necessary.

Misrepresentation (Correct.) An agent who tells a client that dividends are guaranteed may be guilty of misrepresentation.

Twisting ( "Twisting". Twisting is the unfair trade practice of replacing an insurance policy from one insurer to another based on misrepresentation.

Mutual (Correct.) Policyholders elect the governing bodies of mutual insurance companies.

is owned exclusively by its shareholders ( "is owned exclusively by its shareholders". A stock insurance company is best defined as an incorporated company that has its capital divided into shares and is owned exclusively by its shareholders.

offering a client something of value not stated in the contract in exchange for their business (Correct.) Rebating can be defined as offering a prospect something of value that is not specified in a contract in order to induce the purchase of that contract.

only if the child is incapable of employment and chiefly dependent on the policyowner (Correct.) Coverage may be extended if the handicapped child is incapable of employment and chiefly dependent on the policyowner.

The amount of premium collected at this location ( "The amount of premium collected at this location". The Department of Financial Services does not take into consideration the amount of premium collected at an agent's home when determining whether or not the home is an insurance agency.

malign another insurer (Correct.) Defamation is an unfair trade practice involving false, maliciously critical, or derogatory statements intended to injure a person or company engaged in the insurance business.

funded by admitted insurance companies through assessments ( "funded by admitted insurance companies through assessments". The Life and Health Insurance Guaranty Association is funded by insurance companies through assessments and will pay claims if an insurance company becomes insolvent.