( 8 ) – Florida Laws and Rules Pertinent to Insurance

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Insurance companies that are organized in countries outside the United States are referred to as?
Alien.
(An insurance company that is organized or chartered in a country other than the United States is defined as alien.)

A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy’s face value.?

Viatical settlement provider. (To receive a percentage of the policy face value, an owner of a life policy may sell the policy to a viatical settlement provider.)

Agents that have been licensed for less than six years must complete __ hours of continuing education every two years.?

24. (Florida agents licensed less than six years are required to complete 24 hours of continuing education.)

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?

To an individual policy upon employment termination. (When an employee covered on a Group Life policy leaves the group, the conversion privilege gives the employee the right to convert to an individual policy upon termination of employment.

Which of the following activities will NOT result in the suspension of an agent’s license?

Working for a foreign insurer. (Working for a foreign insurance company does not result in the revocation or suspension of an agent’s license.)

In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies?

Naturopaths. (Health insurance policies in Florida must cover payment to all of these practitioners EXCEPT naturopaths.)

An example of sliding would be?

Charging for an additional product without the applicant’s consent". (Sliding involves selling additional coverage to an insurance applicant who doesn’t want or need it. An agent will often "slide" this additional coverage in without the customer’s knowledge or consent.)

Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?

Limitation on pre-existing conditions for up to 12 months. (There is only a 6-month limitation on pre-existing conditions for Medicare Supplements.)

Which of the following situations are NOT subject to Florida life insurance laws?

Insurance companies’ day-to-day operations . ( Florida life insurance laws apply to all of these situations EXCEPT "Insurance companies’ day-to-day operations".)

The Bureau of Unclaimed Property is overseen by the
Chief Financial Officer

The Chief Financial Officer oversees the Bureau of Unclaimed Property.

An example of unfair discrimination would be?

Offering different terms of coverage for different policyowners having the same risk classification. (Providing different terms of coverage for different policyowners in the same risk classification would be an example of unfair discrimination.)

A foreign insurance company doing business in Florida?

Is a company that was formed under the laws of another state. (In Florida, a foreign insurance company is a company that is formed under the laws of a state other than Florida.)

An agent selling Medicare Supplement policies must provide every applicant with a(n)?

Suitability form. (Every agent soliciting Medicare Supplements must provide a suitability form.)

A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss?

Twenty. (Written notice of a claim must be given to the insurer within 20 days.)

What do families pay that are covered by the Florida Healthy Kids Corporation?

A portion of the premium. (Families with children covered by the Florida Healthy Kids Corporation program pay only a portion of the premium.)

How many hours of continuing education must a newly licensed agent complete every two years?

24 HRS (A newly licensed agent must complete 24 hours of continuing education every 2 years.)

An insurance company incorporated under the laws of the state in which its home office is located is called a(n) ____ company.?

Domestic. (A domestic insurance company is domiciled and incorporated under the laws of the state in which its home office is located.)

When is a Group Health policy required to provide coverage for a newborn child?

At the moment of birth. (A Group Health policy is required to provide coverage for a newborn child at the moment of birth).

A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits?

Insurance. (A Multiple Employer Welfare Arrangement (MEWA) provides insurance benefits.)

What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida Law?

0% (Most noncontributory group health plans require 100% participation by eligible members. Under Florida law, there is no specific minimum percentage participation for employees covered by employee group health insurance.)

What are adjustable rates for life policy loans in Florida based on?

Moody’s corporate bond index. (Adjustable rates for life insurance policy loans in Florida are based on Moody’s corporate bond index.)

In Florida, most life insurance policies have a contestability period of?

2 years. (The maximum contestability period for most life insurance policies is 2 years.)

An example of an unfair trade practice is?

An agent making a material misrepresentation to the insured. (Making a material misrepresentation to an insured is considered to be an unfair trade practice.)

K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take?

Pay monetary restitution to the client. (The Department of Financial Services may order the agent to pay monetary restitution to the client.)

Which of the following situations does NOT apply to the Florida Replacement Rule?

An existing policyholder purchases an additional policy from the same insurer. (Florida’s Replacement Rule applies to all of these situations EXCEPT "An existing policyholder purchases an additional policy from the same insurer".)

Which two entities regulate variable annuities?

Department of Financial Services; and Securities Exchange Commission. (Variable annuities are regulated by both the Department of Financial Services and the Securities Exchange Commission.)

According to Florida’s life insurance replacement laws, a policyowner must be provided with a written Comparison and Summary Statement when it’s requested by?

The policyowner. (The replacement of existing life insurance policies with new contracts of life insurance requires a written Comparison and Summary Statement at the policyowner’s request.

All of the following are Nonforfeiture Options EXCEPT?

Automatic Premium Loan Option. (An automatic premium loan is not considered a Nonforfeiture Option.)

Group Life policies in Florida are required to contain a conversion privilege that allows for conversion?

To an individual policy for a stated period of time. (In Florida, Group Life policies must contain a conversion privilege that allows for conversion to an individual policy for a specified period of time.)

In Florida, monthly-premium health insurance policies must provide a grace period of at least?

10 days. (In Florida, monthly-premium health insurance policies must provide a grace period of at least 10 days.)

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?

To an individual policy upon employment Termination. (When an employee covered on a Group Life policy leaves the group, the conversion privilege gives the employee the right to convert to an individual policy upon termination of employment.)

Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?

Limitation on pre-existing conditions for up to 12 months. (There is only a 6-month limitation on pre-existing conditions for Medicare Supplements).

What do families pay that are covered by the Florida Healthy Kids Corporation?

A portion of the premium. (Families with children covered by the Florida Healthy Kids Corporation program pay only a portion of the premium.)

When replacing or exchanging an annuity, the agent must disclose to the annuitant?

The possible tax ramifications as a result of the transaction. (An agent must disclose the possible tax consequences of replacing or exchanging an existing annuity or life insurance policy.)

What is Florida’s definition of Life insurance replacement?

A transaction in which a new policy is bought and an old policy is terminated ( Florida’s Replacement Rule defines replacement of Life insurance as a transaction in which a new policy is bought and an old policy is discontinued.)

An agent’s license can be suspended or revoked by?

"writing primarily controlled business". An agent’s license can be suspended or revoked by writing primarily controlled business.

Which two entities regulate variable annuities?

"Department of Financial Services; and Securities Exchange Commission". Variable annuities are regulated by both the Department of Financial Services and the Securities Exchange Commission.

In Florida, a health policy that is paid on a quarterly basis requires a grace period of?
.

31 days Florida law requires that the minimum grace period on a health insurance policy paid on a quarterly basis is 31 days.

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?

The proceeds would be reduced based on whatever the premium would have been if purchased at age 59. ( In this situation, the proceeds will be reduced based on whatever the premium would have been if purchased at age 59.)

Which of the following is NOT required in the Outline of Coverage for a health insurance policy?

Projection of the policy’s future costs A table indicating the policy’s projected future costs is not required in an Outline of Coverage.

If a policyowner does not pay the premium by the due date, the?

Policyowner can make the premium payment during the grace period. (If a policyowner does not pay the premium by the due date, the premium may be paid during the grace period.)

Which of the following employees may NOT be excluded from a group life plan?

Full-time employees after the probationary period. (All of these employees may be excluded from a group life plan except for "Full time employees after the probationary period").

If a policyowner does not pay the premium by the due date, the?

Policyowner can make the premium payment during the grace period. (If a policyowner does not pay the premium by the due date, the premium may be paid during the grace period).

Which of the following employees may NOT be excluded from a group life plan?
.

Full-time employees after the probationary period. (All of these employees may be excluded from a group life plan except for "Full time employees after the probationary period")

In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n)?

Foreign company. (An insurance company that is domiciled in New Jersey and licensed to conduct business in Florida is referred to in Florida as a foreign company.

Florida’s 14-day free-look period for life insurance policies begins at the?.

Date of delivery. (In Florida, the free-look period for life insurance contracts is 14 days from policy delivery.

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