Multiple Choice
Identify
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1.
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Knowingly making any derogatory statement that is calculated to injure that
person's reputation is:
a. | false advertising | b. | defamation | c. | unfair
discrimination | d. | deception |
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2.
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All of the following are functions of the National Association of Insurance
Commissioners EXCEPT to:
a. | promote uniformity among state insurance laws | b. | enact statutes to
regulate insurance nationwide | c. | preserve state regulation of
insurance | d. | protect the insurance-buying public |
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3.
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In Florida, which two of the following organizations can impose penalties for
violations of the Insurance Code?
I. Florida
Legislature
II. Florida state court system
III.
NAIC
IV. Office of Insurance Regulation
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a. | I and III only | b. | II and III only | c. | II and IV
only | d. | III and IV only |
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4.
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Which of the following may issue rules governing the insurance industry in
Florida?
a. | Florida’s Legislature | b. | Florida’s Chief Financial
Officer | c. | the Commissioner of the Office of Insurance Regulation | d. | both b and
c |
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5.
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If an annuity company becomes financially insolvent, the failed company’s
obligations to its contractholders will be fulfilled by Florida’s:
a. | Department of Financial Services | b. | Consumer Assistance Plan | c. | Life & Health
Guaranty Association | d. | Office of Insurance
Regulation |
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6.
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An agent found to be soliciting policies on behalf of an unauthorized insurance
entity may be:
a. | convicted of a third-degree felony | b. | be subject to a $50,000
fine | c. | convicted of a first-degree felony | d. | any of the
above |
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7.
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Under the decisions Appel v. Moss and Abbott v Beardmore, which of
the following are deemed to have a fiduciary responsibility to their clients?
a. | agents | b. | brokers | c. | both a and
b | d. | neither a nor b |
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8.
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An agent’s license may remain valid without an appropriate appointment
for:
a. | 12 months | b. | 24 months | c. | 36
months | d. | 48 months |
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9.
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Regarding premium payments collected by an agent, Florida law requires agents to
maintain records of premiums for:
a. | 12 months | b. | 24 months | c. | 36
months | d. | 48 months |
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10.
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Agents selling an equity indexed annuity must deliver which of the following to
the client?
a. | Contract Summary | c. | both a and b | b. | Prospectus | d. | neither a nor b |
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11.
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Of the following terms, which best describes the act of replacing existing life
insurance with a new life insurance policy based upon incomplete or incorrect representations?
a. | twisting | b. | rebating | c. | sliding | d. | concealment |
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12.
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In Florida, Contract Summaries and Buyer’s Guides must be given to
purchasers of
a. | fixed annuities | b. | indexed annuities | c. | variable
annuities | d. | all of the above |
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13.
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Regarding Florida’s Free Look law, purchasers have the right to a refund
of their premiums within:
a. | 10 days for the purchase of fixed and indexed annuities | b. | 10 days for the
purchase of fixed, indexed and variable annuities | c. | 14 days for the purchase of fixed and indexed
annuities | d. | 14 days for the purchase of fixed, indexed and variable
annuities |
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14.
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An agent misleads a client into surrendering her whole life insurance policy
with Acme Insurance, and recommends that she purchase an immediate annuity from Acme with the cash
value. The agent then sells the client an Acme flexible premium, deferred annuity -- using part
of the immediate annuity payments to pay the premium on the deferred annuity. This is an
example of
a. | twisting | b. | direct churning | c. | indirect
churning | d. | stripping |
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15.
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Which of the following violations of Florida’s Insurance Code are
punishable as a felony?
a. | twisting | b. | churning (direct or
indirect) | c. | fraudulent signatures on insurance applications | d. | all of the
above |
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