FLORIDA STATUES,RULES AND REGULATIONS
COMMON TO ALL LINES (4)EXAM 130 QUESTIONS AND
CORRECT ANSWERS LATEST
All of the following would be considered an insurance transaction EXCEPT - ANSWER:
Obtaining an insurance license.
Which of the following best describes an insurance company that has been formed
under the laws of this state? - ANSWER: Domestic
When transacting business in this state an insurer formed under the laws of another
country is known as a/an - ANSWER: Alien insurer.
Which of the following is an agreement between an insured and an insurer, where
the insurer agrees to indemnify the insured for specific losses in exchange for a
premium? - ANSWER: The insurance contract
When doing business in this state, an insurance company that is formed under the
laws of another state is known as which type of insurer? - ANSWER: Foreign
An insurance company is domiciled in Montana and transacts insurance in Wyoming.
Which term best describes the insurer's classification in Wyoming? - ANSWER:
Foreign
Which of the following must an insurer obtain in order to transact insurance within a
given state? - ANSWER: Certificate of authority
What is a foreign insurer? - ANSWER: An insurer with a home office in another state
Which of the following best describes an insurance company that has been formed
under the laws of this state? - ANSWER: Domestic
Insurance contracts are agreements between which two parties? - ANSWER: Insurer
and policyowner
An insurer that holds a Certificate of Authority in the state in which it transacts
business is considered a/an - ANSWER: Authorized insurer.
What method do insurers use to protect themselves against catastrophic losses? -
ANSWER: Reinsurance
What is the major difference between a stock company and a mutual company? -
ANSWER: Ownership
Which of the following is NOT true regarding a Certificate of Authority? - ANSWER: It
is issued to group insurance participants.
, An insurer that holds a Certificate of Authority in the state in which it transacts
business is considered a/an - ANSWER: Authorized insurer.
Which of the following is another term for an authorized insurer? - ANSWER:
Admitted
Who might receive dividends from a mutual insurer? - ANSWER: Policyholders
A participating insurance policy may do which of the following - ANSWER: Pay
dividends to the policyowner
What is reinsurance? - ANSWER: An agreement between a ceding insurer an
assuming insurer
An insured purchased an insurance policy 5 years ago. Last year, she received a
dividend check from the insurance company that was not taxable. This year, she did
not receive a check from the insurer. From what type of insurer did the insured
purchase the policy? - ANSWER: Mutual
On a participating insurance policy issued by a mutual insurance company, dividends
paid to policyholders are - ANSWER: Not taxable since the IRS treats them as a return
of a portion of the premium paid.
Which of the following entities is not an insurer but an organization formed to
provide insurance benefits for members of an affiliated lodge or religious
organization? - ANSWER: Fraternal benefit society
Which of the following insurers are owned by stockholders? - ANSWER: Stock
The Office of Insurance Regulation is responsible for all of the following insurer
activities EXCEPT - ANSWER: Issue of securities.
What are the 2 offices of the Financial Services Commission? - ANSWER: The Office
of Financial Regulation and the Office of Insurance Regulation
Which of the following is NOT a responsibility of the Office of Insurance Regulation? -
ANSWER: Enacting new insurance laws
Who examines the books and records of insurance companies in Florida? - ANSWER:
The Chief Financial Officer
How often must domestic insurance companies be examined by the Chief Financial
Officer in Florida? - ANSWER: At least every 5 years
Which of the following entities is responsible for agent licensing and administrative
supervision? - ANSWER: The Office of Insurance Regulation
COMMON TO ALL LINES (4)EXAM 130 QUESTIONS AND
CORRECT ANSWERS LATEST
All of the following would be considered an insurance transaction EXCEPT - ANSWER:
Obtaining an insurance license.
Which of the following best describes an insurance company that has been formed
under the laws of this state? - ANSWER: Domestic
When transacting business in this state an insurer formed under the laws of another
country is known as a/an - ANSWER: Alien insurer.
Which of the following is an agreement between an insured and an insurer, where
the insurer agrees to indemnify the insured for specific losses in exchange for a
premium? - ANSWER: The insurance contract
When doing business in this state, an insurance company that is formed under the
laws of another state is known as which type of insurer? - ANSWER: Foreign
An insurance company is domiciled in Montana and transacts insurance in Wyoming.
Which term best describes the insurer's classification in Wyoming? - ANSWER:
Foreign
Which of the following must an insurer obtain in order to transact insurance within a
given state? - ANSWER: Certificate of authority
What is a foreign insurer? - ANSWER: An insurer with a home office in another state
Which of the following best describes an insurance company that has been formed
under the laws of this state? - ANSWER: Domestic
Insurance contracts are agreements between which two parties? - ANSWER: Insurer
and policyowner
An insurer that holds a Certificate of Authority in the state in which it transacts
business is considered a/an - ANSWER: Authorized insurer.
What method do insurers use to protect themselves against catastrophic losses? -
ANSWER: Reinsurance
What is the major difference between a stock company and a mutual company? -
ANSWER: Ownership
Which of the following is NOT true regarding a Certificate of Authority? - ANSWER: It
is issued to group insurance participants.
, An insurer that holds a Certificate of Authority in the state in which it transacts
business is considered a/an - ANSWER: Authorized insurer.
Which of the following is another term for an authorized insurer? - ANSWER:
Admitted
Who might receive dividends from a mutual insurer? - ANSWER: Policyholders
A participating insurance policy may do which of the following - ANSWER: Pay
dividends to the policyowner
What is reinsurance? - ANSWER: An agreement between a ceding insurer an
assuming insurer
An insured purchased an insurance policy 5 years ago. Last year, she received a
dividend check from the insurance company that was not taxable. This year, she did
not receive a check from the insurer. From what type of insurer did the insured
purchase the policy? - ANSWER: Mutual
On a participating insurance policy issued by a mutual insurance company, dividends
paid to policyholders are - ANSWER: Not taxable since the IRS treats them as a return
of a portion of the premium paid.
Which of the following entities is not an insurer but an organization formed to
provide insurance benefits for members of an affiliated lodge or religious
organization? - ANSWER: Fraternal benefit society
Which of the following insurers are owned by stockholders? - ANSWER: Stock
The Office of Insurance Regulation is responsible for all of the following insurer
activities EXCEPT - ANSWER: Issue of securities.
What are the 2 offices of the Financial Services Commission? - ANSWER: The Office
of Financial Regulation and the Office of Insurance Regulation
Which of the following is NOT a responsibility of the Office of Insurance Regulation? -
ANSWER: Enacting new insurance laws
Who examines the books and records of insurance companies in Florida? - ANSWER:
The Chief Financial Officer
How often must domestic insurance companies be examined by the Chief Financial
Officer in Florida? - ANSWER: At least every 5 years
Which of the following entities is responsible for agent licensing and administrative
supervision? - ANSWER: The Office of Insurance Regulation
