1|Page
FL 20-44 INSURANCE LICENSE TEST WITH 400
PRACTICE QUESTIONS AND 100% CORRECT
ANSWERS/ FLORIDA 20-44 LICENSE EXAM PREP
(NEWEST!)
Paul v. Virginia case of 1869 - ...✔✔ANSWER✔✔...the U.S.
Supreme Court ruled that insurance transactions
crossing
state lines are not interstate commerce.
1944 United States v. South-Eastern Underwriters
Association - ...✔✔ANSWER✔✔...ruled that insurance
transactions crossing state lines are interstate
commerce and are subject to federal regulation
The McCarran Ferguson Act - ...✔✔ANSWER✔✔...states
that while the federal government has authority to
regulate
the insurance industry, it would not exercise its right if
the insurance industry was regulated
effectively and adequately on the state level.
,2|Page
The Armstrong Investigation Act -
...✔✔ANSWER✔✔...gave the authority to the states to
regulate insurance
Fair Credit Reporting Act - ...✔✔ANSWER✔✔...provides
individuals privacy protection and fair and accurate credit
reporting. Insurance companies are required to notify
applicants if a credit check will be made
on them.
Financial Services Modernization Act: -
...✔✔ANSWER✔✔...This law repealed the Glass-Steagall
Act; this allows
Banks, Retail Brokerages and Insurance companies to
enter each other's line of business.
Guaranty Associations - ...✔✔ANSWER✔✔...State life and
health guaranty associations provide a safety net for all
member
life, health and annuities insurers in a particular state.
Guaranty associations protect insureds in the
event of insurer insolvency, or inability to pay claims up
to a certain limit.
,3|Page
The National Association of Insurance Commissioners
(NAIC) - ...✔✔ANSWER✔✔...They are responsible for
recommending appropriate laws and
regulations. They are responsible for the creation of the
Advertising Code and the Unfair Trade
Practices Act.
The NAIC has four broad objective - ...✔✔ANSWER✔✔...To
encourage uniformity in state insurance laws and
regulations
To assist in the administration of those laws and
regulations by promoting efficiency
To protect the interest of policyowners and consumers
To preserve state regulation of the insurance business
NAIFA and NAHU - ...✔✔ANSWER✔✔...Members of these
organizations are life and health agents dedicated to
supporting the
industry and advancing the quality of service provided by
insurance professionals
, 4|Page
These organizations created a Code of Ethics detailing the
expectations of agents in their duties
toward clients.
Independent Rating Services - ...✔✔ANSWER✔✔...are
credit rating agencies that rate or "grade" the financial
strength and
stability of insurers based on claims, reserves, and
company profits. The nationally recognized statistical
rating organizations that rate insurers are A. M. Best,
Moody's, Standard and Poor's, and Fitch Ratings.
Each rating service has its own rating system, but most
use an A to F letter grading scheme.
treaty reinsurance - ...✔✔ANSWER✔✔...each party
automatically accepts specific percentages of the
insurer's business sharing their risk exposure.
At what point must a life insurance applicant be informed
of their rights that fall under the Fair Credit Reporting
Act? - ...✔✔ANSWER✔✔...Upon completion of the
application
FL 20-44 INSURANCE LICENSE TEST WITH 400
PRACTICE QUESTIONS AND 100% CORRECT
ANSWERS/ FLORIDA 20-44 LICENSE EXAM PREP
(NEWEST!)
Paul v. Virginia case of 1869 - ...✔✔ANSWER✔✔...the U.S.
Supreme Court ruled that insurance transactions
crossing
state lines are not interstate commerce.
1944 United States v. South-Eastern Underwriters
Association - ...✔✔ANSWER✔✔...ruled that insurance
transactions crossing state lines are interstate
commerce and are subject to federal regulation
The McCarran Ferguson Act - ...✔✔ANSWER✔✔...states
that while the federal government has authority to
regulate
the insurance industry, it would not exercise its right if
the insurance industry was regulated
effectively and adequately on the state level.
,2|Page
The Armstrong Investigation Act -
...✔✔ANSWER✔✔...gave the authority to the states to
regulate insurance
Fair Credit Reporting Act - ...✔✔ANSWER✔✔...provides
individuals privacy protection and fair and accurate credit
reporting. Insurance companies are required to notify
applicants if a credit check will be made
on them.
Financial Services Modernization Act: -
...✔✔ANSWER✔✔...This law repealed the Glass-Steagall
Act; this allows
Banks, Retail Brokerages and Insurance companies to
enter each other's line of business.
Guaranty Associations - ...✔✔ANSWER✔✔...State life and
health guaranty associations provide a safety net for all
member
life, health and annuities insurers in a particular state.
Guaranty associations protect insureds in the
event of insurer insolvency, or inability to pay claims up
to a certain limit.
,3|Page
The National Association of Insurance Commissioners
(NAIC) - ...✔✔ANSWER✔✔...They are responsible for
recommending appropriate laws and
regulations. They are responsible for the creation of the
Advertising Code and the Unfair Trade
Practices Act.
The NAIC has four broad objective - ...✔✔ANSWER✔✔...To
encourage uniformity in state insurance laws and
regulations
To assist in the administration of those laws and
regulations by promoting efficiency
To protect the interest of policyowners and consumers
To preserve state regulation of the insurance business
NAIFA and NAHU - ...✔✔ANSWER✔✔...Members of these
organizations are life and health agents dedicated to
supporting the
industry and advancing the quality of service provided by
insurance professionals
, 4|Page
These organizations created a Code of Ethics detailing the
expectations of agents in their duties
toward clients.
Independent Rating Services - ...✔✔ANSWER✔✔...are
credit rating agencies that rate or "grade" the financial
strength and
stability of insurers based on claims, reserves, and
company profits. The nationally recognized statistical
rating organizations that rate insurers are A. M. Best,
Moody's, Standard and Poor's, and Fitch Ratings.
Each rating service has its own rating system, but most
use an A to F letter grading scheme.
treaty reinsurance - ...✔✔ANSWER✔✔...each party
automatically accepts specific percentages of the
insurer's business sharing their risk exposure.
At what point must a life insurance applicant be informed
of their rights that fall under the Fair Credit Reporting
Act? - ...✔✔ANSWER✔✔...Upon completion of the
application
