Chapter 17/3: Florida General
Regulations Continued
What is the maximum fine for failure to comply with a subpoena? - Answer The penalty
for failure to comply with a subpoena is a maximum fine of $1,000 per violation.
The correct answer is: $1,000 per violation
Which of the following is described as charging insureds additional fees without their
consent? - Answer Sliding occurs when agents or insurers charge applicants additional
charges without applicants' consent.
The correct answer is: Sliding
What is the criminal classification for twisting? - Answer If a person commits "twisting,"
he has committed a misdemeanor of the first degree. He is subject to an administrative
fine of up to $5,000 for each unintentional violation, or up to $75,000 for each willful
violation.
The correct answer is: A first-degree misdemeanor
Which of the following is true? - Answer To receive a commission, a person must be
licensed as an insurance agent and be appointed with at least one insurer. Insurers, nor
agents, may pay a commission to an unlicensed individual. Agents and insurers may
pay commissions to other licensed agents.
The correct answer is: An agent can pay a commission to another agent.
In Florida, what defines proper business practices expected of agents? - Answer
Florida's Code of Ethics defines proper business practices expected of agents.
The correct answer is: The Florida Code of Ethics
Which of the following is best described as a group formed for the purpose of obtaining
insurance coverage? - Answer A fictitious group is defined as a group that is formed for
the sole purpose of obtaining insurance coverage.
The correct answer is: Fictitious group
In Florida, which of the following is illegal when not specified in the contract? - Answer
Rebating is unethical. Except as otherwise expressly provided by law, no person will
knowingly permit or offer to make or make any contract of life insurance, life annuity or
disability insurance, or agreement as to such contract other than as plainly expressed in
the contract issued thereon, or pay or allow, or give or offer to pay, allow, or give,
directly or indirectly as an inducement to such insurance, or annuity, any rebate of
premiums payable on the contract, or any special favor or advantage in the dividends or
other benefits thereon, or any valuable consideration or inducement whatever not
specified in the contract.
The correct answer is: All of the above
How long must an insurer keep a copy of every document authorized by the insurer? -
Answer Each insurer subject to this section shall maintain at its home office or principal
office a complete file containing one copy of each document authorized by the insurer
, Chapter 17/3: Florida General
Regulations Continued
for use pursuant to this section. Such file shall contain one copy of each authorized form
for a period of 3 years following the date of its last authorized use.
The correct answer is: 3 years
What is the maximum fine for an intentional act of twisting or churning? - Answer The
penalty for committing an act of twisting or churning is a misdemeanor of the first
degree, and a fine of up to $5,000 for unintentional violations, and up to $75,000 for
intentional violations.
The correct answer is: $75,000
Which of the following is described as making fraudulent comparisons of insurance
policies for the purpose of inducing a person to purchase a policy? - Answer Twisting is
making misrepresentations or incomplete comparisons of insurance policies for the
purpose of inducing a policy purchase, or a person to lapse, forfeit, surrender,
termination or convert an insurance policy.
The correct answer is: Twisting
A rebate would NOT be allowed for which of the following? - Answer No insurance
agency agent shall rebate any portion of a commission except as follows: The rebate
shall be available to all insureds in the same actuarial class. The rebate shall be in
accordance with a rebating schedule filed by the agent with the insurer issuing the
policy to which the rebate applies. The rebating schedule shall be uniformly applied in
that all insureds who purchase the same policy through the agent for the same amount
of insurance receive the same percentage rebate. The rebate schedule is prominently
displayed in public view in the agent's place of doing business and a copy is available to
insureds on request at no charge. The age, sex, place of residence, race, nationality,
ethnic origin, marital status, or occupation of the insured or location of the risk is not
utilized in determining the percentage of the rebate or whether a rebate is available. The
insurance agency agent shall maintain a copy of all rebate schedules for the most
recent 5 years and their effective dates. No rebate shall be withheld or limited in amount
based on factors which are unfairly discriminatory. No rebate shall be given which is not
reflected on the rebate schedule. No rebate shall be refused or granted based upon the
purchase or failure of the insured or applicant to purchase collateral business.
The correct answer is: Rebate requires the purchase of collateral business.
Which of the following best describes controlled business? - Answer An agent is
transacting controlled business when more of his policies sold in a 12-month period are
to his family and employees/employer, than to the general public.
The correct answer is: Insurance transacted to an agent's family, amounting to more
than the agent's total business sold to the general public
Who are the members of the Florida Life and Health Guaranty Association? - Answer All
member insurers must be members of the association as a condition to eligibility to
Regulations Continued
What is the maximum fine for failure to comply with a subpoena? - Answer The penalty
for failure to comply with a subpoena is a maximum fine of $1,000 per violation.
The correct answer is: $1,000 per violation
Which of the following is described as charging insureds additional fees without their
consent? - Answer Sliding occurs when agents or insurers charge applicants additional
charges without applicants' consent.
The correct answer is: Sliding
What is the criminal classification for twisting? - Answer If a person commits "twisting,"
he has committed a misdemeanor of the first degree. He is subject to an administrative
fine of up to $5,000 for each unintentional violation, or up to $75,000 for each willful
violation.
The correct answer is: A first-degree misdemeanor
Which of the following is true? - Answer To receive a commission, a person must be
licensed as an insurance agent and be appointed with at least one insurer. Insurers, nor
agents, may pay a commission to an unlicensed individual. Agents and insurers may
pay commissions to other licensed agents.
The correct answer is: An agent can pay a commission to another agent.
In Florida, what defines proper business practices expected of agents? - Answer
Florida's Code of Ethics defines proper business practices expected of agents.
The correct answer is: The Florida Code of Ethics
Which of the following is best described as a group formed for the purpose of obtaining
insurance coverage? - Answer A fictitious group is defined as a group that is formed for
the sole purpose of obtaining insurance coverage.
The correct answer is: Fictitious group
In Florida, which of the following is illegal when not specified in the contract? - Answer
Rebating is unethical. Except as otherwise expressly provided by law, no person will
knowingly permit or offer to make or make any contract of life insurance, life annuity or
disability insurance, or agreement as to such contract other than as plainly expressed in
the contract issued thereon, or pay or allow, or give or offer to pay, allow, or give,
directly or indirectly as an inducement to such insurance, or annuity, any rebate of
premiums payable on the contract, or any special favor or advantage in the dividends or
other benefits thereon, or any valuable consideration or inducement whatever not
specified in the contract.
The correct answer is: All of the above
How long must an insurer keep a copy of every document authorized by the insurer? -
Answer Each insurer subject to this section shall maintain at its home office or principal
office a complete file containing one copy of each document authorized by the insurer
, Chapter 17/3: Florida General
Regulations Continued
for use pursuant to this section. Such file shall contain one copy of each authorized form
for a period of 3 years following the date of its last authorized use.
The correct answer is: 3 years
What is the maximum fine for an intentional act of twisting or churning? - Answer The
penalty for committing an act of twisting or churning is a misdemeanor of the first
degree, and a fine of up to $5,000 for unintentional violations, and up to $75,000 for
intentional violations.
The correct answer is: $75,000
Which of the following is described as making fraudulent comparisons of insurance
policies for the purpose of inducing a person to purchase a policy? - Answer Twisting is
making misrepresentations or incomplete comparisons of insurance policies for the
purpose of inducing a policy purchase, or a person to lapse, forfeit, surrender,
termination or convert an insurance policy.
The correct answer is: Twisting
A rebate would NOT be allowed for which of the following? - Answer No insurance
agency agent shall rebate any portion of a commission except as follows: The rebate
shall be available to all insureds in the same actuarial class. The rebate shall be in
accordance with a rebating schedule filed by the agent with the insurer issuing the
policy to which the rebate applies. The rebating schedule shall be uniformly applied in
that all insureds who purchase the same policy through the agent for the same amount
of insurance receive the same percentage rebate. The rebate schedule is prominently
displayed in public view in the agent's place of doing business and a copy is available to
insureds on request at no charge. The age, sex, place of residence, race, nationality,
ethnic origin, marital status, or occupation of the insured or location of the risk is not
utilized in determining the percentage of the rebate or whether a rebate is available. The
insurance agency agent shall maintain a copy of all rebate schedules for the most
recent 5 years and their effective dates. No rebate shall be withheld or limited in amount
based on factors which are unfairly discriminatory. No rebate shall be given which is not
reflected on the rebate schedule. No rebate shall be refused or granted based upon the
purchase or failure of the insured or applicant to purchase collateral business.
The correct answer is: Rebate requires the purchase of collateral business.
Which of the following best describes controlled business? - Answer An agent is
transacting controlled business when more of his policies sold in a 12-month period are
to his family and employees/employer, than to the general public.
The correct answer is: Insurance transacted to an agent's family, amounting to more
than the agent's total business sold to the general public
Who are the members of the Florida Life and Health Guaranty Association? - Answer All
member insurers must be members of the association as a condition to eligibility to
