Florida Statutes, Rules, and Regulations Common to All Lines Florida exam

24% of the scored questions — about 20 of 85. This section is Florida law, the part national study material covers least.

108 practice questions below · 60 of 85 needed to pass overall

1 / 8

A background investigation reveals that an applicant misstated a material fact to obtain the licence. What follows?

Answer and explanation
Answer: A. Section 626.171(4) supports investigating the applicant's qualifications, and section 626.611 lists material misstatement or fraud in obtaining a licence among the grounds on which the department shall deny an application. Because the section is mandatory, a reprimand, an amendment, or referral to the appointing entity does not substitute.Source: Fla. Stat. § 626.171 — 626.171(4) read with 626.611
2 / 8

A beneficiary believes a relative's Florida life proceeds were never claimed. Which body holds unclaimed property in Florida?

Answer and explanation
Answer: D. Unclaimed property is among the general duties and powers of the Department of Financial Services, which section 20.121(1) places under the Chief Financial Officer, and section 717.107 governs when life insurance funds are presumed unclaimed. The two offices regulate insurers and financial institutions respectively, and the Commission oversees them.Source: Fla. Stat. § 717.107 — 717.107 read with 20.121(1)
3 / 8

A beneficiary receives a claim denial that cites no policy provision and no factual basis, although the insurer did investigate. Has the insurer complied with 626.9541(1)(i)?

Answer and explanation
Answer: B. Section 626.9541(1)(i) reaches two separate failures: denying claims without conducting reasonable investigations, and failing to promptly provide a reasonable explanation for a denial. Conducting the investigation satisfies the first duty but leaves the second unmet, so compliance fails on the explanation. The provision is not limited to uninvestigated claims and does not require prior approval of denials.Source: Fla. Stat. § 626.9541 — (1)(i), Reasonable explanation on denial
4 / 8

A company promises to pay a fixed sum to a subscriber on a date certain, with no contingency attached. Why does that fall outside the statutory definition of insurance?

Answer and explanation
Answer: C. Section 624.02 requires that the amount or determinable benefit be payable upon determinable contingencies, so a sum payable on a date certain lacks the contingency the definition demands. Whether premium passes, whether a certificate of authority is held, and whether the promise is written are separate questions governed by other sections.Source: Fla. Stat. § 624.02 — 624.02, Determinable contingency
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A consumer complaint leads to a finding that a Florida agent misrepresented policy terms. Which body decides what happens to the licence?

Answer and explanation
Answer: B. Section 626.611 directs the department to deny, suspend, revoke, or refuse to renew the licence or appointment when a ground such as willful misrepresentation is found, and section 20.121 places agent licensing with the Department of Financial Services. An insurer may end its own appointment, but only the Department acts on the licence.Source: Fla. Stat. § 626.611 — 626.611 read with 20.121(1)
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A Florida agent is asked to place coverage with an insurer that holds no Florida certificate of authority. What does section 626.901 say?

Answer and explanation
Answer: A. Section 626.901(1) provides that no person shall, from offices or by personnel or facilities located in this state, directly or indirectly act as agent for, or otherwise represent or aid on behalf of another, any insurer not then authorized to transact such insurance in this state. The prohibition is not lifted by a waiver, a trust account, or authorization elsewhere.Source: Fla. Stat. § 626.901 — 626.901(1), Representing an unauthorized insurer
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A Florida court orders the liquidation of a domestic insurer. What does the order direct?

Answer and explanation
Answer: B. Section 631.111 provides that an order to liquidate the business of a domestic insurer shall direct the department forthwith to take immediate possession of the property of the insurer, to marshal all the assets, and to liquidate its business. The guaranty association's role under Chapter 631 arises alongside that process rather than replacing the receiver.Source: Fla. Stat. § 631.111 — 631.111, Order to liquidate
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A Florida domestic life insurer is placed in liquidation. How do the receiver's role and the guaranty association's role differ?

Answer and explanation
Answer: A. Section 631.111 directs the department, as receiver, to take possession of the property, marshal the assets, and liquidate the business, while section 631.717 sets the Florida Life and Health Insurance Guaranty Association's coverage limits for policyholder benefits. The two roles are distinct and run together rather than in sequence.Source: Fla. Stat. § 631.111 — 631.111 read with 631.717

All 108 florida statutes, rules, and regulations common to all lines questions

Other Florida topics: Types of Policies and Features · Policy Riders, Provisions, Options, and Exclusions · Completing the Application, Underwriting, and Delivering the Policies · Retirement and Other Insurance Concepts · Florida Statutes, Rules, and Regulations Pertinent to Life and Annuity Insurance, Including Variable Products

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