Statutes

Question 1

What are the requirements to obtain a FL insurance license?

Answer 1

18 years or older
Resident of the state of Florida
US citizen or work authorization
70% higher on state exam

Question 2

Can you hold a resident license in another state when obtaining your FL insurance license?

Answer 2

No

Question 3

What are the Continuing Education (CE) Requirements for 20-44?

Answer 3

24 hours bi-annually by end of licensee’s birth month

Question 4

What happens if you do not complete your CE’s when due?

Answer 4

$250 fine

Question 5

True or false: I just moved from Lakeland to Tampa, I have 60 days to update my insurance license.

Answer 5

False - must notify state within 30 days

Question 6

What is the penalty for violation of notifying state of change of address, phone, or email?

Answer 6

1st offense = $250
2nd offense and after = $500+ or suspension/revocation of license for up to 24 months

Question 7

Who is the head of the Department of Financial Services (DFS)?

Answer 7

CFO = Chief Financial Officer

Question 8

Who is the head of the Office of Insurance Regulation (OIR)?

Answer 8

Commissioner of Insurance

Question 9

What does the DFS do?

Answer 9

approves licenses to agents and adjusters; investigates ethics violations, and administers justice within domain of insurance.

Question 10

What does the OIR do?

Answer 10

examines an insurance company’s financial records and approves whether or not they can do business within the state.

Question 11

What is a certificate of authority and who holds these?

Answer 11

Authorized insurers have it and it gives them permission to conduct business

Question 12

Misrepresentation

Answer 12

Lying or deceiving a person about any of the benefits terms or conditions of an insurance contract.

Question 13

Sliding

Answer 13

Telling the insured that an optional coverage is either (1) required by law or (2) included in the policy at no charge. It also means (3) adding a coverage to a policy without disclosing the coverage was added for additional premium.

Question 14

Twisting

Answer 14

Twisting occurs when an insurance agent replaces an existing life policy with a new one using misleading tactics. It does not mean that every time an agent replaces a life insurance policy that twisting has occurred.

Question 15

Churning

Answer 15

Churning occurs when aninsurance agent replaces a policyholder’sinsurance policy for anotherinsurance policy, usually without consulting the policyholder and often with no changes to the coverage itself. Agents who engage inchurning do so in order to secure an additional commission for the new policy they swap in.

Question 16

Defamation

Answer 16

Saying bad things about people.

Question 17

Coercion

Answer 17

Using force or threats.

Question 18

Unfair discrimination

Answer 18

Discriminating against people based on race, gender, age, marital status, sexuality, etc. where there is no actuarial basis for discriminating, and/or where the law protects them from discrimination.

Question 19

Unfair claim settlement

Answer 19

Lying, concealing data, or intimidating people in an attempt not to pay claims. Or, failing to return calls or maintain complaint handling procedures.

Question 20

Fraud

Answer 20

Intentional deception for one’s own gain.

Question 21

Controlled business

Answer 21

Policies written for yourself, your own family, your business, or other entities or organizations that you have a financial interest in. Agents can not be licensed if they plan to have more than 50% controlled business.

Question 22

What would be considered domestic specifically to us in FL?

Answer 22

Domiciled in FL

Question 23

What about insurance companies domiciled outside of FL in another state?

Answer 23

Foreign: U.S. Territories
1. Puerto Rico
2. Guam
3. U.S. Virgin Islands
Not Bahamas or British islands

Question 24

What about an insurance company outside of this country?

Answer 24

Alien

Question 25

What is Citizens Property Insurance Corporation (CPIC) ?

Answer 25

State owned insurer of last resort for property insurance, including homeowners (with liability), dwelling and commercial property. Applicants must meet 15% rule as an eligibility requirement. Only covers hail and windstorm.

Question 26

What is FAJUA?

Answer 26

Florida Auto Joint Underwriting Association - State-regulated insurer (syndicate) of last resort for auto policies. It is made up of all the auto insurers in Florida, who are responsible for claims payment in proportion to the amount of premium they write in the state. Generally serves high-risk drivers.

Question 27

What is the youngest age you can obtain a policy in the state of FL?

Answer 27

15

Question 28

What are the parts of a contract?

Answer 28

COAL: C - Consideration O - Offer A - Acceptance L - Legal Purpose

Question 29

What is the doctrine of adhesion?

Answer 29

if there is anything unclear or ambiguous then it rules in favor of the insured (policyholder).

Question 30

What is a contract of adhesion?

Answer 30

Insurance companies have all the power in writing the contract, and the insured can not negotiate the terms and conditions. Since insurance companies write the policies, they are stuck with them the way they are written.

Question 31

What is the Florida Automobile Insurance Cancellation Law for the first 60 days of an insurance policy?

Answer 31

Company may cancel for: any reason other than discrimination. Insured may cancel during first 60 days: Total Loss, Transfer of Ownership, purchase of mandatory coverages elsewhere.

Question 32

What is the Florida Automobile Insurance Cancellation Law for the after the first 60 days of an insurance policy?

Answer 32

Company may cancel: Nonpayment; fraud or misrepresentation; driver's license suspended, revoked. Insured after 60 days may cancel for any reason.

Question 33

If any licensee fails to be appointed, he/she is subject to losing his/her license. What period of time will trigger the termination of a license for failure to maintain an appointment?

Answer 33

48 months

Question 34

What is the Fair Credit Reporting Act (FCRA)?

Answer 34

Gives consumers the right: - know when their credit score is being used in applications - request the score from the credit bureau, -- request corrections to their credit information from the credit bureau

Question 35

An agent must not exceed which percentage of controlled business: A. 50% B. 75% C. 25% D. 10%

Answer 35

A. 50%