Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
25 Cards in this Set
- Front
- Back
|
The authority that an insurer gives to its agent by means of the agent's contract is known as:
A. Implied Authority B. Express Authority C. Fiduciary responsibility D. General Authority |
B. Express Authority
|
|
|
"An insurance contract is prepared by one party, the insurer, rather than by negotiation between the contracting parties." Which of the following statements explains this characteristic of insurance contracts?
A. The insurance contract is an aleatory contract B. The insurance contract is C. Contract of adhesion D. The insurance contract names only the insurer as the completent party. |
C. Contract of adhesion
|
|
|
Which of the following statements regarding insurable interest is not correct?
A. Insurable interest exists when the applicant is the insured. B. A policy obtained by a person without an insurable interest in the insured can be enforced. C. The applicant must be subject to loss upon the death, illness or disability or the insured. D. Generally, the person to be insured must give his or her consent before a policy is issued, even if the applicant has an insurable interest. |
B. A policy obtained by a person without an insurable interest in the insured can be enforced.
|
|
|
Which of the following statements about authority is NOT correct?
A. Express authority is granted by means of the agent's contract B. Express authority is determined by a principal's conduct. C. Implied authority is not overtly extended in the agent's contract, but does permit many of the agent's operations. D. Apparent authority can be assumed from the actions of the principal. |
B. Express authority is determined by a principal's conduct.
|
|
|
Which of the following statements regarding utmost good faith in insurance contracts is CORRECT?
A. The concept of upmost good facilty--that there is no attempt to conceal disguise or deceive applies only to the insurer. B. Although a warranty is a statement, it is not technically part of the contract. C. A representation is a statement that the applicant guarantees to be true. D. Most state insurance laws consider statements made in an application for an insurance policy to be representations, not warranties. |
D. Most state insurance laws consider statements made in an application for an insurance policy to be representations, not warranties.
|
|
|
The general powers and duties of the Office of Insurance Regulation include all of the following EXCEPT to:
A. enforce the Florida Insurance Code B. Determine if an insurance company has violated the Insurance Code C. enact Statutes to govern the insurance industry D. Disseminate information regarding its activities |
C. enact Statutes to govern the insurance industry
|
|
|
The major areas of regulation by the Office of Insurance regulation include which of the following?
A. Policing against unauthorized insurance activities. B. Proposing legislation to regulate the insurance industry. C. Enacting new insurance laws D. issuing certificates of authority to insurers. |
A. Policing against unauthorized insurance activities.
|
|
|
All of the following are reasons the insurance industry is subject to governmental regulation EXCEPT the:
A. Public trust aspect of the business B. financial impact of the business on the economy C. need to monitor the premuim payout practices of the public D. duty to protect the public due to the technical nature of insurance contracts. |
C. need to monitor the premuim payout practices of the public
|
|
|
What two authorities can impose penalties for violation of state insurance laws?
A. Chief Financial Officer and the legislature B. Chief Financial Officer and the courts C. Legislature and the courts D. Courts and the National Association of Insurance Commissioners |
B. Chief Financial Officer and the courts
|
|
|
A fraternal life insurance organization can can operate as any of the following EXCEPT
A. corporation B. society C. association D. charitable trust |
D. charitable trust
|
|
|
An insurance company can be any of the following EXCEPT
A. domestic & admitted B. foreign and non admitted C. domestic & alien D. Alien and non admitted |
C. domestic & alien
|
|
|
In insurance regulatory languate, which of the following properly identifies a "foreign" insurance company?
A. Insurance company whos home office is in another country B. Insurance company whose home office is in another state. C. Insurance company that has no local representative D. Insurance company whose policies are in a foreign language. |
B. Insurance company whose home office is in another state.
|
|
|
The definition of "transacing insurance" includes all of the following EXCEPT:
A. soliciting a contract of insurance B. Negotiating a contract of insurance. C. underwriting a contract of insurance. D. effectuating a contract of insurance. |
C. underwriting a contract of insurance.
|
|
|
Of the following terms, which best describes the act of replacing existing life insurance with a new life insurance policy based upon incomplete or incorrect representations?
A. Twisting B. rebating C. Embezzlement D. Concealment |
A. Twisting
|
|
|
All of the following activities could result in the suspension of an agent's license EXCEPT
A. misrepresenting the financial condition of an insurance company B. selling any replacement policy that causes an insured to lapse an existing policy. C. attaining a license for the sole purpose of handling controlled business D. demonstrating incompetency to transact business as an insurance agent. |
B. selling any replacement policy that causes an insured to lapse an existing policy.
|
|
|
Which of the following would be considered an unfair claim practice?
A. Implementing standards for proper investigation B. Denying a claim after reasonable investigation of the facts. C. Misrepresenting insurance policy provisions affecting a loss D. Acting promptly on claims communication |
C. Misrepresenting insurance policy provisions affecting a loss
|
|
|
All of the following activities violate the Florida Insurance Code EXCEPT
A. dividing commission on a life insurance policy with any licensed agent B. dividing commission on a life insurance policy with a licensed health agent. C. dividing commission on a life insurance policy with another agent who is licensed and appointed to sell the same line of insurance. D. dividing commission on a life insurance policy with a licensed life insurance broker who regularly transacts life insurance. |
C. dividing commission on a life insurance policy with another agent who is licensed and appointed to sell the same line of insurance.
|
|
|
Violation of the controlled business statute occurs if an agent sells most of his or her business to
A. Employees of a business owned by his or her father B. members of his or her civic club C. city and county employees D. members of the local medical society. |
A. Employees of a business owned by his or her father
|
|
|
Sliding consists of all of the following activities EXCEPT
A. telling an applicant that certain ancillary coverage is required by law when it is not B. advising a client that certain ancillary coverage is included at no additional charge when such a charge is required C. charging an applicant for ancillary coverage over the cost of coverage applied for without the applicant's consent D. recommending that a client take cash value from a policy to make other investments. |
D. recommending that a client take cash value from a policy to make other investments.
|
|
|
Which of the following statements is correct about the Department of Financial Services right to examine an agent's records?
A. an examination can be conducted at any time to discover any unfair trade practices. B. An agent's records involving a premium transaction are confidential and not subject to examination. C. The Chief Financial Officer may examine an agent's records only once per year, unless good cause is shown for more frequent examinations. D. The statues do not give the Department an absolute right to examine the affairs of insurance licensees to discover unfair trade practices. |
A. an examination can be conducted at any time to discover any unfair trade practices.
|
|
|
Which of the following penalties imposed upon an agent by the Chief Financial Officer does not match the offense?
A. Failure to answer a subpoena can result in a $1,000 fine. B. Violation fo the Insurance Code can result in suspension of license. C. A Fradulent act can result in prosecution by the Attorney General. D. Violation of a ceased-and-desist order can result in a fine of no more than $2500 |
D. Violation of a ceased-and-desist order can result in a fine of no more than $2500
|
|
|
Which of the following activities is NOT a violation of the Insurance Code?
A. Charging a fee that is more than the premium stated in the policy. B. Collecting premiums and depositing them in the agent's personal account. C. Writing as much non controlled insurance business as controlled business. D. Offering a premium rebate if the insured contracts for other insurance business. |
C. Writing as much non controlled insurance business as controlled business.
|
|
|
All of the following are characteristics of a mutual insurance company EXCEPT
A. management elect the board of directors B. the policy owners are the owners of the company C. dividends, if any, are paid to policy owners D. it must be incorporated in order to operate |
A. management elect the board of directors
|
|
|
transacting insurance business does NOT incolude which of the following activities
A. Soliciting the purchase of insurance B. Negotiating an agency contract with an insurance company C. Negotiating an insurance contract D. Recommending specific types of insurance based on a apolicyowner's needs. |
B. Negotiating an agency contract with an insurance company
|
|
|
If an agent changes his or her residence address, he or she must noify the Department of Financial Services within
A. 15 days B. 30 days C. 60 days D. A change of residence address does not require notifiication. |
C. 60 days
|
