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.
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
5 / 8
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)
6 / 8
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
7 / 8
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
8 / 8
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
- A Florida form is filed and the office neither approves nor disapproves it during the review period. What is the form's status?
- A Florida insurer wants to begin issuing a new life policy form next week. What does section 627.410 require first?
- A Florida licensee holds a life agent licence and wants to begin writing an unrelated line of insurance. What is required?
- A Florida licensee is convicted of a felony. How long does the licensee have to advise the department?
- A Florida policyholder cannot get an answer from an insurer and wants state help. Which body assists consumers directly?
- A Florida policyholder learns that a reinsurer stands behind part of the insurer's risk and wants to claim against the reinsurer directly. What does section 624.610 provide?
- A Florida resident buys coverage from a company holding no Florida certificate of authority. What is the company's status?
- A Florida resident holds two policies with the same failed insurer, each with substantial cash value. How does the guaranty association apply its life insurance limit?
- A licensee reports a felony conviction to the department within thirty days as required. What effect does the timely report have on the licence?
- A person handles beneficiary changes and claim questions on in-force Florida policies but never sells anything. Does that count as transacting insurance?
- A person has passed the Florida examination and holds a current life agent licence but has no appointment. What may that person do?
- A producer places a Florida client with an unauthorized insurer, knowing the placement violated section 626.901, and the insurer later fails to pay a claim. What is the producer's exposure?
- A single licensed agent works alone under her own name, employs no other licensees, and appoints none. What does Florida law say about agency licensure?
- After how long are funds held under a matured or terminated Florida life policy presumed unclaimed?
- After liquidating a Florida domestic insurer, what further step may the receiver take?
- An agency places business with an insurer for which it holds no appointment and which is not a surplus lines insurer. What does Florida law require of the funds belonging to that insurer?
- An agent adds a service charge to the premium quoted for a Florida life policy and keeps it. What does section 626.9541 say?
- An agent charges the correct premium but hands the applicant a personal cheque afterward. Which provision fits?
- An agent collects premium, spends it on agency payroll, and never remits it to the insurer. The amount is $25,000. What does Florida law provide?
- An agent holds return premium owed to a former policyholder and treats it as agency working capital while deciding what to do. Why does this breach the statute?
- An agent is licensed and appointed for life insurance only, and a client asks about a health product the agent is not appointed to write. What does Florida law permit?
- An agent knowingly collects from an applicant an amount larger than the premium the filed rates produce for that coverage, and keeps the difference. Which provision does this violate?
- An agent proposes to satisfy the mandatory update course with a seminar covering only annuity product features. Why does this fail the requirement?
- An agent receives a written order from the Department and deliberately disregards it. How does section 626.611 treat that?
- An agent receives premium from an applicant and an unrelated consulting fee from the same person on the same day. Which is a trust fund?
- An agent repeatedly misexplains basic policy mechanics to clients, causing them to buy unsuitable coverage. Which ground in section 626.611 fits most closely?
- An agent uses misleading comparisons to persuade a client to surrender an in-force life policy and buy a new one from a different insurer. Which practice is this?
- An agent uses the accumulated values in a client's existing policy to fund a new policy with the same insurer, earning fresh first-year commission, and cannot point to any reasoned benefit to the client. Which practice is this?
- An agent writes a life policy and adds a small ancillary coverage to the application, telling the applicant nothing about it, then collects the combined premium. Which practice does Florida law say this is?
- An agent's only appointment is terminated by the insurer while the licence remains valid. What may the agent do the next day?
- An alien insurer holds a subsisting Florida certificate of authority, and a domestic insurer's certificate has lapsed. How does Florida classify each?
- An applicant completed prelicensing coursework three years ago and passed the examination fourteen months ago. What is the position?
- An applicant completed the Florida prelicensing course five years before filing the application. What follows?
- An applicant is found to have arranged for another person to sit the Florida licensing examination in his place. Under section 626.611, what follows?
- An applicant lets an assistant complete and submit the Florida licence application, and it contains a misstatement. Who is accountable?
- An appointing entity and its appointee both learn of the appointee's felony conviction on the same day. What deadlines apply?
- An appointing entity learns that its appointee pleaded guilty to a felony. How quickly must it notify the department?
- An entity makes contracts to pay determinable benefits on determinable contingencies but holds no Florida certificate of authority. How is it best described?
- An insurer denies a death claim without looking into the circumstances and sends the beneficiary a denial letter that gives no reason. Which requirement has the insurer failed?
- An insurer denies one Florida claim without investigating it. Does section 626.9541(1)(i) reach a single instance?
- An insurer holds funds on a policy whose insured cannot be traced. Which circumstance can cause the policy to be treated as matured under section 717.107?
- An insurer is authorized in Florida for property lines but not for life. An agent places life coverage with it. What does section 626.901 say?
- An insurer organized under Georgia law writes life business in Florida. How does Florida classify it?
- An insurer organized under the laws of Bermuda seeks to write business in Florida. How does Florida classify it?
- An insurer suspects an appointee's conduct falls short of good moral character but files the appointment anyway. What does section 626.451 require?
- An insurer's certificate of authority is suspended while it continues to service policies already in force. What is its status during the suspension?
- An organization has no capital stock and pays death benefits to members' families, but it has no lodges and no representative government. How does Florida classify it?
- An unlicensed person advertises himself as a Florida life insurance agent but writes no business. What does section 626.112 say?
- An unlicensed person telephones Florida residents to interest them in a life product, taking no applications and collecting no money. Is that transacting insurance?
- Before filing an appointment, what must a Florida appointing entity certify about the licensee?
- Florida checks an applicant's background at licensure and again requires character certification at appointment. What does the second step add?
- Florida's prelicensing statute describes coursework of thirty hours and of sixty hours. What distinguishes them?
- For how long does a passing grade on the Florida licensing examination remain valid?
- For how long must an agent preserve records of premium payments under Florida law?
- For what purpose does Florida use the fingerprints an applicant submits with a licence application?
- For whose benefit must a Florida fraternal benefit society be conducted?
- From what date does the five-year unclaimed period run for proceeds of a Florida life policy?
- How does Florida law characterise premiums an agent receives in a transaction under the licence?
- How does the Florida Insurance Code define insurance?
- How far in advance of use must a Florida policy form be filed with the office?
- In a reinsurance arrangement, how are the two insurers described?
- In what form may an agent keep the premium payment records Florida law requires?
- May someone other than the applicant complete and sign a Florida licence application?
- Over twelve months a Florida life agent's premium writings on the agent's own family and business associates come to more than the agent's writings on the general public. What is the consequence under the life agent controlled business rule?
- Section 626.112 requires appointment by an appropriate appointing entity or person. What does that requirement add beyond the licence?
- The Department finds that an agent misappropriated fiduciary funds, a ground listed in section 626.611. What does the statute direct the Department to do?
- The office needs longer to review a Florida life form. What does section 627.410 allow?
- To win a Florida sale, an agent quietly charges an applicant less than the filed premium and absorbs the difference. Is that within section 626.9541(1)(o)?
- Under Florida law, what makes an insurer a domestic insurer?
- Under the current Florida life-agent prelicensing statute, which coursework satisfies section 626.7851(1) for a nonexempt applicant for a life, annuity, and variable contracts license?
- What distinguishes an authorized insurer from an unauthorized insurer in Florida?
- What do Florida's appointment certifications add to the licence the agent already holds?
- What does a Florida appointing entity accept about the appointee's conduct when it files an appointment?
- What does a Florida ceding insurer obtain from properly ceded reinsurance?
- What does a Florida certificate of authority establish for an insurer?
- What does the receiver take possession of when a Florida domestic insurer is ordered into liquidation?
- What must an applicant for a Florida insurance licence submit so the department can investigate qualifications?
- What purpose does Florida's requirement of both a licence and an appointment serve?
- Which activities does section 626.901 reach when an insurer is not authorized in Florida?
- Which applicant is relieved of Florida's prelicensing coursework requirement by the statute itself?
- Which arrangement fits Florida's definition of an unlawful rebate?
- Which body licenses and appoints Florida insurance agents and investigates their conduct?
- Which body receives and investigates a Florida insurance licence application?
- Which combination of features identifies a fraternal benefit society under Florida law?
- Which conduct appears among the grounds that compel the Department to act against a licence under section 626.611?
- Which fact distinguishes sliding under 626.9541(1)(z) from churning under 626.9541(1)(aa)?
- Which feature most clearly separates a fraternal benefit society from a stock insurer under Florida law?
- Which feature separates a stock insurer from a fraternal benefit society under Florida law?
- Which four officials make up the Financial Services Commission that oversees Florida's insurance and financial regulators?
- Which of these appears in section 626.611 as a ground compelling action against a licence?
- Which outcomes does section 626.611 direct the department to impose when a listed ground is established?
- Which pair of failures does the unfair claim settlement provision in section 626.9541(1)(i) describe?
- Which set of activities does the Florida Insurance Code include within transacting insurance?
- Which standard does section 626.611 apply to an agent's general character in dealing with the public?
- Who files a Florida agent's appointment, and with whom?
- Who heads the Florida Department of Financial Services?
- Why does Florida place a personal reporting duty on a licensee convicted of a felony?
- Why does section 626.901 reach a person who merely introduces Florida residents to an unauthorized insurer without handling paperwork?
- Why does the deemed approval rule in section 627.410 matter to an insurer planning a launch date?
- Within Florida's prelicensing coursework for a life licence, how much must address ethics?
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