FLORIDA LAWS AND RULES REVIEW
CERTIFICATION REVIEW SET 2026
ANSWERS GUARANTEED PASS
⫸ What is the purpose of the insurance guaranty fund association?
Answer: Protects policyowners against insolvent insurance companies
⫸ What percentage of eligible persons must a policy cover in a
noncontributory group? Answer: 100%
⫸ What type of insurance company is domiciled in English but
conducts business in Florida? Answer: Alien
⫸ T is an employee covered under a Group Life policy. If T's
employment is terminated, the conversion privilege gives T the right to
convert Answer: to an individual policy upon employment termination
⫸ The minimum age at which a person can sign a life insurance
application is Answer: 15 years
⫸ An applicant who pays the initial premium at the time of application
is typically given a(n) Answer: Conditional receipt
,⫸ What would be an accurate definition of controlled business?
Answer: Insurance business that is written on the agent's own life,
property, or interests
⫸ Under a life insurance policy the ___ has the authority to name the
beneficiary? Answer: owner
⫸ An example of an unfair claims settlement practice is Answer:
Failing to promptly provide reasonable explanations for the denial of
claims
⫸ Which action could result in a hearing being ordered by the
department of financial services Answer: Performing insurance
transactions without a license
⫸ Under Florida law a variable annuity policyowner must be notified of
the accumulated value of the contract Answer: once each year
⫸ W gave W's age as 50 when W purchased a Life policy. At the time
of W's death seven years later, the company discovered W's true age at
issue had been 59. What would the normal procedure be under the
misstatement of age provision in regard to the payment of the death
claim? Answer: The proceeds would be reduced based on whatever the
premium would have been if purchased at age 59
⫸ Which entity approved the insurance policy forms used in Florida?
Answer: OIR
, ⫸ An example of an unfair claims settlement practice is Answer:
turning down a claim without providing the basis of denial
⫸ An example of an unfair trade practice is Answer: an agent making a
material misrepresentation to the insured
⫸ What are adjustable rates for life policy loans in Florida based on?
Answer: Moody's corporate bond index
⫸ Which of the following activities will not result in the suspension of
an agents license? Answer: Working for a foreign insurer
⫸ What is Florida's definition of Life insurance replacement? Answer:
A transaction in which a new policy is bought and an old policy is
terminated
⫸ An example of false advertising would be Answer: An insurer
exaggerating its dividends in a magazine advertisement
⫸ Which of the following acts is an agent not authorized to do on behalf
of an insurer Answer: Authorize claim payments
⫸ When replacing or exchanging an annuity, the agent must disclose to
the annuitant Answer: the possible tax ramifications as a result of the
transaction
CERTIFICATION REVIEW SET 2026
ANSWERS GUARANTEED PASS
⫸ What is the purpose of the insurance guaranty fund association?
Answer: Protects policyowners against insolvent insurance companies
⫸ What percentage of eligible persons must a policy cover in a
noncontributory group? Answer: 100%
⫸ What type of insurance company is domiciled in English but
conducts business in Florida? Answer: Alien
⫸ T is an employee covered under a Group Life policy. If T's
employment is terminated, the conversion privilege gives T the right to
convert Answer: to an individual policy upon employment termination
⫸ The minimum age at which a person can sign a life insurance
application is Answer: 15 years
⫸ An applicant who pays the initial premium at the time of application
is typically given a(n) Answer: Conditional receipt
,⫸ What would be an accurate definition of controlled business?
Answer: Insurance business that is written on the agent's own life,
property, or interests
⫸ Under a life insurance policy the ___ has the authority to name the
beneficiary? Answer: owner
⫸ An example of an unfair claims settlement practice is Answer:
Failing to promptly provide reasonable explanations for the denial of
claims
⫸ Which action could result in a hearing being ordered by the
department of financial services Answer: Performing insurance
transactions without a license
⫸ Under Florida law a variable annuity policyowner must be notified of
the accumulated value of the contract Answer: once each year
⫸ W gave W's age as 50 when W purchased a Life policy. At the time
of W's death seven years later, the company discovered W's true age at
issue had been 59. What would the normal procedure be under the
misstatement of age provision in regard to the payment of the death
claim? Answer: The proceeds would be reduced based on whatever the
premium would have been if purchased at age 59
⫸ Which entity approved the insurance policy forms used in Florida?
Answer: OIR
, ⫸ An example of an unfair claims settlement practice is Answer:
turning down a claim without providing the basis of denial
⫸ An example of an unfair trade practice is Answer: an agent making a
material misrepresentation to the insured
⫸ What are adjustable rates for life policy loans in Florida based on?
Answer: Moody's corporate bond index
⫸ Which of the following activities will not result in the suspension of
an agents license? Answer: Working for a foreign insurer
⫸ What is Florida's definition of Life insurance replacement? Answer:
A transaction in which a new policy is bought and an old policy is
terminated
⫸ An example of false advertising would be Answer: An insurer
exaggerating its dividends in a magazine advertisement
⫸ Which of the following acts is an agent not authorized to do on behalf
of an insurer Answer: Authorize claim payments
⫸ When replacing or exchanging an annuity, the agent must disclose to
the annuitant Answer: the possible tax ramifications as a result of the
transaction
