Florida Insurance Law Practice Test

Correct answer: Misrepresentation for the purpose of inducing the lapse, forfeiture, exchange, conversion, or surrender of a policy

Florida lists as unfair and deceptive any misrepresentation made for the purpose of inducing, or tending to induce, the lapse, forfeiture, exchange, conversion, or surrender of any insurance policy.

From the free practice set Life and annuity marketing methods and practices

Correct answer: The brother's consent, because the designation is irrevocable

The change of beneficiary provision lets the insured change the beneficiary unless the designation is irrevocable. An irrevocable beneficiary must consent to the change.

From the free practice set Standard health policy provisions and group health eligibility

Correct answer: Deceptive use of name, an unfair or deceptive practice

Using a financial institution's name or logo in marketing without its written consent, in a way that would lead a reasonable person to believe the solicitation came from or was endorsed by the institution, is deceptive use of name.

From the free practice set Life and annuity marketing methods and practices

Correct answer: "Office" is a defined term meaning the Office of Insurance Regulation; the Code separately says the Department is not any office of the Commission

Section 624.05(3) defines "Office" as the Office of Insurance Regulation, and 624.05(1) says the Department is not the Commission or any office of it, so the form-approval duty lies with OIR, not DFS.

From the free practice set Florida insurance regulators: CFO, Financial Services Commission, OIR, and OFR

Correct answer: No, an insurer may not refuse or limit life insurance based solely on past lawful foreign travel

An insurer may not refuse life insurance, refuse to continue it, or limit the amount, extent, or kind of coverage based solely on the individual's past lawful foreign travel experiences.

From the free practice set Life and annuity marketing methods and practices

Correct answer: 21 days

The insurer or agent must notify the office or department before commencing the pilot and may commence it unless the regulator objects within 21 days after receiving the notice.

From the free practice set Life and annuity marketing methods and practices

Correct answer: The policy must comply with Florida's group health part in the same manner as a policy issued in Florida

Any group health policy issued or delivered outside Florida under which a Florida resident is covered must comply with Florida's group health part in the same manner as policies issued in Florida, unless an exemption applies.

From the free practice set Standard health policy provisions and group health eligibility

Correct answer: The Financial Services Commission, the Governor and Cabinet

Section 624.05(2) defines "Commission" as the Financial Services Commission; rulemaking under the Code is that body's function.

From the free practice set Florida insurance regulators: CFO, Financial Services Commission, OIR, and OFR

Correct answer: 31 days

Any premium mode other than weekly or monthly, including annual, gets a 31-day grace period, during which the policy stays in force.

From the free practice set Standard health policy provisions and group health eligibility

Correct answer: A deceptive advertisement, because it would lead a reasonable person to believe the state guarantees returns on an insurance product

It is unfair and deceptive to use any advertisement that would cause a reasonable person to believe that the state or federal government guarantees returns on insurance products or stands behind a person's credit.

From the free practice set Life and annuity marketing methods and practices

Correct answer: State-chartered banks and credit unions

OFR is the Commission's non-insurance office: it regulates state-chartered banks and credit unions, finance companies, money services businesses, and securities professionals.

From the free practice set Florida insurance regulators: CFO, Financial Services Commission, OIR, and OFR

Correct answer: She may become covered under the new plan for the rest of her continuation period, treated like an active beneficiary

If the employer terminates the plan for all employees and replaces it with similar coverage, the qualified beneficiary has the right to be covered under the new plan for the balance of the period she would have remained covered under the prior plan, treated the same as an active beneficiary.

From the free practice set Standard health policy provisions and group health eligibility

Correct answer: That the services are not regulated by either the department or the office as insurance

Section 624.129(3) requires the written agreement or enrollment form to carry a conspicuous legend that the services are not regulated by either the department or the office as insurance.

From the free practice set Florida insurance regulators: CFO, Financial Services Commission, OIR, and OFR

Correct answer: 5 percent compounded annually

The equivalent level annual dividend is calculated by accumulating annual cash dividends at 5 percent interest compounded annually to the end of the 10th and 20th policy years.

From the free practice set Life and annuity marketing methods and practices

Correct answer: Exempt, because group life insurance is excluded unless specifically included

Group life insurance is one of the listed exemptions from Florida's life insurance solicitation law, along with annuities, credit life, ERISA plan policies, and variable life.

From the free practice set Life and annuity marketing methods and practices

Correct answer: Nothing; it can no longer void the policy or deny claims for a non-fraudulent misstatement

The time limit on certain defenses provision bars the insurer, after the stated period, from voiding the policy or denying claims based on misstatements in the application, other than fraudulent misstatements. An innocent misstatement cannot be used.

From the free practice set Standard health policy provisions and group health eligibility

Correct answer: By statewide election, as one of the three Cabinet officers

The CFO is one of Florida's three elected Cabinet officers, with the Attorney General and the Commissioner of Agriculture, and heads the Department of Financial Services independently of the Governor.

From the free practice set Florida insurance regulators: CFO, Financial Services Commission, OIR, and OFR

Correct answer: The Office of Insurance Regulation acts on the insurer's impairment; the Department of Financial Services acts against the agent

Solvency enforcement for insurers is OIR's function; licensing and regulating individual agents is DFS's, so the two problems go to two different regulators.

From the free practice set Florida insurance regulators: CFO, Financial Services Commission, OIR, and OFR

Correct answer: The Office of Insurance Regulation

Reviewing and approving policy forms and rates is one of the core functions of the Office of Insurance Regulation, the insurer-facing office under the Financial Services Commission.

From the free practice set Florida insurance regulators: CFO, Financial Services Commission, OIR, and OFR

Correct answer: The Department of Financial Services

Appointments are listed with licensing and agency regulation among the Department of Financial Services' functions -- the people-and-process side of regulation an agent actually experiences.

From the free practice set Florida insurance regulators: CFO, Financial Services Commission, OIR, and OFR

Correct answer: The legal reserve system upon which any life insurer operates

The misrepresentation rule covers statements that are misleading as to the financial condition of any person or as to the legal reserve system upon which any life insurer operates.

From the free practice set Life and annuity marketing methods and practices

Correct answer: It ends on the date he becomes entitled to Medicare

Continuation ends on the date a qualified beneficiary is entitled to benefits under Part A or Part B of Medicare.

From the free practice set Standard health policy provisions and group health eligibility

Correct answer: The Office of Insurance Regulation

OIR licenses and examines insurance companies, as distinct from individual agents, whose licensing is administered by DFS.

From the free practice set Florida insurance regulators: CFO, Financial Services Commission, OIR, and OFR

Correct answer: Notice of claim, claim forms furnished, proof of loss

The insured gives notice (20 days), the insurer furnishes claim forms (15 days after notice), and the claimant then files proof of loss (90 days after the loss).

From the free practice set Standard health policy provisions and group health eligibility

Correct answer: The Department of Financial Services, because appointments of individuals to represent insurers are a DFS function even though the corporation itself is exempt

Section 624.91(7)(a) carves marketing representatives out of the exemption and requires their appointment by the contracting insurers; appointments are administered by DFS, the agency that regulates agents and appointments.

From the free practice set Florida insurance regulators: CFO, Financial Services Commission, OIR, and OFR