Review the questions below. The correct answer to each question is highlighted in green. Click the question link to return to the relevant section of the study text.
1
Agents should be aware of which of the following warning signs of a phony insurance plan?
Premium rates are relatively inexpensive compared to other comparable policies
Premium quotes do not vary between applicants
Applicants must join an association or union to obtain coverage
All of the above
2
All ERISA-covered plans are:
Illegal
Fraudulent
Exempt from state regulation
None of the above
3
All ERISA-covered plans are:
Subject to federal jurisdiction
Subject to state jurisdiction
Subject to joint state and federal jurisdiction
Not subject to state jurisdiction but possibly subject to federal jurisdiction
4
Which of the following are exempt from state insurance regulation?
A single-employer ERISA benefits plan
Multiple-employer ERISA benefits plans
“Association” ERISA benefits plans
None of the above are exempt from state regulation
5
VEBAs (Voluntary Employment Benefit Arrangements) provide:
Health insurance benefits exempt from state regulation
Health insurance benefits exempt from federal regulation
Tax deductible health insurance benefits
Federally regulated health insurance benefits
6
Concerning the health benefits offered under an employee leasing arrangement, a PEO:
Is exempt from state insurance laws regarding health benefits
Is considered a multiple employer welfare arrangement
Is subject to the minimum participation standards under ERISA
Is classified as a self-insured health plan
7
All of the following are benefits available under an employee leasing arrangement EXCEPT:
Lower cost employee benefits for smaller employers
Availability of employee benefits not generally obtainable by smaller employers
Exemption from state licensing requirements
All of the above are benefits of an employee leasing arrangement
8
Under current Florida law, an agent convicted of selling coverage issued by an unauthorized insurer is guilty of:
A third degree misdemeanor
A second degree misdemeanor
A first degree misdemeanor
A third degree felony
9
Possible fines for an agent convicted of selling coverage issued by an unauthorized insurer is:
$500 per violation
$1,000 per violation
$5,000 per violation
$50,000 per violation
10
In addition to possible fines and possible incarceration, agents who solicit, negotiate or sell coverage issued by an unauthorized insurer face:
Civil liability for all unpaid claims
Revocation of all insurance licenses
Suspension of all insurance licenses
All of the above
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