Chapter 11 - Florida Laws and Rules
Exam Questions & Answers5
According to Florida law, which of the following statements accurately describes an admitted
mail order insurance company? - ANSWERS-It may solicit insurance business by mail only with
the assistance of a licensed Florida agent
Under Florida law, a variable annuity policyowner must be notified of the accumulated value of
the contract - ANSWERS-once each year
What is the main reason for regulating the insurance industry? - ANSWERS-Maintain the
solvency of insurance companies
Who does an agent represent during the solicitation of insurance? - ANSWERS-the insurance
company
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? - ANSWERS-The proceeds would be reduced based on whatever the premium would
have been if purchased at age 59
The minimum age at which a person can sign a life insurance application is - ANSWERS-15
A life insurance policy's grace period entitles the insured a period of no less than ___ days to
make the premium payment - ANSWERS-30
, J owns a business and has a Group Life policy covering her employees. J decides to cancel the
policy by letting it lapse on the renewal date. What action must be taken? - ANSWERS-All of the
employees must be notified of the cancellation either by the insurance company of through J
In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is
called a(n) - ANSWERS-foreign company
All of the following will result in the suspension of an agent's license except - ANSWERS-acting
with fiduciary responsibilty
All of the following are Nonforfeiture Options EXCEPT - ANSWERS-automatic premium loan
option
All of the following entries are classified under the four principal areas of Florida insurance law
EXCEPT - ANSWERS-an agents commission
According to Florida law, group life insurance conversion privileges must NOT - ANSWERS-
Require evidence of insurability
Which of the following situation are NOT subject to Florida life insurance laws? - ANSWERS-
Insurance companies day-to-day operations
Which of the following employer tasks does a Professional Employer Organization normally
handle? - ANSWERS-Administration tasks
An example of unfair discrimination would be - ANSWERS-Offering different premiums for
individuals of the same risk classification
Exam Questions & Answers5
According to Florida law, which of the following statements accurately describes an admitted
mail order insurance company? - ANSWERS-It may solicit insurance business by mail only with
the assistance of a licensed Florida agent
Under Florida law, a variable annuity policyowner must be notified of the accumulated value of
the contract - ANSWERS-once each year
What is the main reason for regulating the insurance industry? - ANSWERS-Maintain the
solvency of insurance companies
Who does an agent represent during the solicitation of insurance? - ANSWERS-the insurance
company
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? - ANSWERS-The proceeds would be reduced based on whatever the premium would
have been if purchased at age 59
The minimum age at which a person can sign a life insurance application is - ANSWERS-15
A life insurance policy's grace period entitles the insured a period of no less than ___ days to
make the premium payment - ANSWERS-30
, J owns a business and has a Group Life policy covering her employees. J decides to cancel the
policy by letting it lapse on the renewal date. What action must be taken? - ANSWERS-All of the
employees must be notified of the cancellation either by the insurance company of through J
In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is
called a(n) - ANSWERS-foreign company
All of the following will result in the suspension of an agent's license except - ANSWERS-acting
with fiduciary responsibilty
All of the following are Nonforfeiture Options EXCEPT - ANSWERS-automatic premium loan
option
All of the following entries are classified under the four principal areas of Florida insurance law
EXCEPT - ANSWERS-an agents commission
According to Florida law, group life insurance conversion privileges must NOT - ANSWERS-
Require evidence of insurability
Which of the following situation are NOT subject to Florida life insurance laws? - ANSWERS-
Insurance companies day-to-day operations
Which of the following employer tasks does a Professional Employer Organization normally
handle? - ANSWERS-Administration tasks
An example of unfair discrimination would be - ANSWERS-Offering different premiums for
individuals of the same risk classification
