iLaw 214 CE 2025 Final

When is the Chief Financial Officer declared the CONSERVATOR over an insurer? – [iQ.1]

Florida’s CFO is named conservator over insurers with active fraud investigations.
Florida’s CFO is named conservator when a foreign insurer is declared impaired (OR) insolvent.
Florida's CFO is named conservator when a Domestic Insurance agency has been declared impaired (OR) insolvent.
Conservator is the title given to insurance regulators when a domestic insurer is declared impaired (OR) Insolvent.

How many days do licensees have to respond to an official DFS Investigative request for information?

10-Days
14-Days
30-Days
31-Days

Sara is an insurance broker from Texas with Non-Resident Authorization from Florida’s Department of Financial S She permanently moves to Florida. How long does she have to change her non-resident authorization to a resident licensee?

14-Days
30-Days
60-Days
90-Days

Jeff is an Authorized Insurance Broker from Orlando Florida. He decides to permanently move to Miami Florida. How long does Jeff have to notify the Department of Financial Services of his move?

14-Days
30-Days
60-Days
90-Days

Florida’s Chief Financial Officer is the head of,

Office of Insurance Regulation (OIR)
Office of Financial Regulations (OFR)
Department of Financial Services (DFS)
Financial Services Commission (FSC)

Office of INSURANCE Regulation (OIR) is responsible for,

Monitoring the daily activities of Insurance Agents & Agencies
Providing Consumer Services to insurance policyholders.
Distributing important insurance industry updates to licensees.
Auditing and evaluating the claim handling practices of insurers.

Which of the following statements pertaining Florida’s DFS Division of Investigative and Forensic Services is correct?

This DFS Division investigates insurer market conduct examinations.
Investigators are state law enforcement officers with the authority to collect evidence and arrest suspects.
DFS Investigators have Quasi-Legislative powers just like State Police.
DFS Division of Investigative & Forensic Services is Headed by the Commissioner of Financial Services.

Department of Financial Services (DFS),

DFS oversees both, the Office of Insurance Regulations and Office of Financial Regulations.
DFS regulates insurers, banks & lenders
DFS oversees 13 Divisions and provides administrative support to both Offices.
Audits the financial soundness of Insurers and other risk bearing entities.

Which state regulatory entity has sworn law enforcement officers and performs fire and arson investigations.

Department of Financial Services
Division of Investigative and Forensic Services
Florida Attorney General
Division of Agent & Agency Services

Which entity evaluates the financial solvency of an insurer to ensure they’re capable of paying claims?

Office of Insurance Regulation | OIR
Department of Financial Services | DFS
Chief Financial Officer | CFO
Office of Financial Regulation | OFR

Statements made by insurance applicants which are guaranteed to be true are called,

Warranty
Representation
Promise
Binding Statement

Who are insurer appointment fees paid too?

Financial Services Commission
Department of Financial Services | DFS
Office of Insurance Regulations | OIR
Office of Financial Regulations | OFR

What is the penalty for an agent who intentionally conducts the business of insurance without proper authorization?

They’ll be subject to a minimum five thousand dollar fine per policy sold.
They’re guilty of a misdemeanor and subject to criminal penalties.
They’re classified as an unauthorized entity and guilty of a third degree felony.
Office of Insurance Regulations immediately revokes their license.

When licensees receive a consumer complaint from the Department of Financial Services, how long do they have to respond?

10-Days
14-Days
20-Days
30-Days

Which regulatory entity is responsible for helping consumers with insolvent insurers?

Chief Financial Officer | CFO
DFS | Division of Rehabilitation & Liquidation
Office of Insurance Regulations | OIR
Office of Financial Regulations | OFR

Which of the following is NOT a regulatory responsibility of Florida’s Office of Insurance Regulations?

Attracting new insurers to Florida.
Auditing insurance agency records.
Auditing insurer financials.
Fighting unauthorized insurers

An insurer is declared INSOLVENT. Which of the following steps is NOT a part of the insolvency process?

The Office of Insurance Regulations will revoke the insolvent insurer’s Certificate of Authority.
Domestic insurer assets will be liquidated to help pay policyowner claims.
The Division of Rehabilitation & Liquidation helps transition consumers to a new financially stable insurers without them needing to provide evidence of insurability.
Office of Insurance Regulations assist policy owners with receiving premium refunds from insolvent insurers.

Which entity has investigators authorized to Detain suspects?

Office of Financial Regulations
Financial Services Commission
Division of INVESTIGATIVE & Forensic Services
National Association of Insurance Commissioners

Florida’s DFS Division of Consumer Services has the authority to,

Recommend the suspension or revocation of a professional license.
Summon the appearance of a witness.
Impose up to $5,000 in fines.
Temporarily (30-days) suspend an insurance license for failing to answer a complaint.

Which of the following entities is responsible for regulating the forms insurers provide to policy owners?

Director of Financial Regulations
Chief Financial Officer (CFO)
Commissioner of the Office of INSURANCE Regulations
Commissioner of the Office of Financial Regulations

Which of the following entities is responsible for overseeing Florida’s insurers, banks and lending institutions?

Chief Financial Officer | CFO
Department of Financial Services | DFS
Financial Services Commission
National Association of Insurance & Financial Advisors | NAIFA

Which of the following entities is responsible for regulating securities and financial products offered by banks and lending institutions?

National Association of Insurance Commissioners | NAIC
Department of Financial Services | DFS
Office of Financial Regulations
SEC Division of Securities & Variable Products

Which keyword identifies the Chief Financial Officer’s Authority to investigate insurance crimes outside of Florida?

Quasi-Judicial
Quasi-Legislative
Process Agent
CFO Boss Moves

What is a Representation?

Statements made on an insurance applications which are guaranteed to be true.
Statements made by insurance applicants which are not guaranteed to be true.
Basic Generalizations made to the best of the brokers ability.
General statements made on consumer buyers guide.

What is an Un-Affiliated Insurance Agent?

Unaffiliated insurance agents are independent agents who appointed directly with the insurer.
Unaffiliated agents are SELF-APPOINTED and cannot sell policies or receive insurer commissions.
Being an Unaffiliated Agents is a 3rd degree felony.
Unaffiliated Agents work in an administrative capacity within the Department of Financial Services

Which regulatory entity are insurer appointment fees paid too?

Financial Services Commission
Department of Financial Services | DFS
Office of Insurance Regulations | OIR
Office of Financial Regulations | OFR

How much notice are insurers required to give licensee if, they intend on terminating their appointment?

30-Days
31-Days
60-Days
90-Days

How long are insurance licensees required to keep paperwork pertaining the policies they’ve sold?

Five Years
Three Years
Two Years
One Year

What happens if a licensee fails to do Continuing Education by the end of their compliance period?

After a CE compliance date passes, licensees have a 90-day grace period to complete CE without penalties.
DFS imposes a $500 fine for failing to complete CE by the expiration date.
After 2 compliance periods without doing CE, licenses are terminated.
Division of Consumer Services will impose a $250 fine for failing to comply.

Jethro is an insurance agent. He is moving out of state and wants to transfer his DFS In surer Appointments to his friend Carl. He asked you for help. How would you advise him?

Suggest Jethro go to the My Florida CFO website so he can use the e-appoint system to transfer his appointments to his friend and pay the $60 fee.
Appointments are non-transferrable.
Direct Jethro to the insurer website so he can complete Appointment Transfer Form DFS-187.
Jethro should call the Office of Insurance Regulations hotline for help transferring his appointment.

A regularly scheduled Office of Insurance Regulations audit identifies an insurer in financial distress. The insurer should be able to correct their operational problems. Which of the following best describes this insurer?

Insolvent
Impaired
Civil Peril
Civil Hazard

The National Association of Insurance and Financial Advisors (NAIFA) provided the content for the Florida pre-licensing handbook and outlined consumer protections pertaining to,

NAIFA wrote the improper use of Designation guidelines.
NAIFA was responsible for PASSING the NEW Anti-Robo Dial Law in Florida.
NAIFA passed “On Guard for Seniors” laws.
NAIFA imposed the newly required 4-Hour law and ethics CE course.

What is a Fiduciary?

Fiduciaries are the formal title given to DFS investigators once the insurer liquidation process begins.
Someone with the responsibility to act in the best interest of the person or entity they represent.
A fiduciary is an insurance agent who self-appoints.
A fiduciary is another name for an independent agent.

Professional introductions identify the “Who” & “What” aspects of the conversation. A proper Agent / Broker introduction identifies the following,

Name, professional designation & your intention to solicit insurance.
You’re only required to identify your name because, you don’t know if they want to buy insurance yet.
Agents are only required to identify themselves when they’re conducting sales over the phone.
There is no established proper way to identify yourself as an insurance agent.

Carl is an insurance agent. To pump up sales he runs a marketing campaign promising a $250 gift card to anyone who purchases a policy before the end of the month. This type of marketing is,

Common practice. Carl just needs to make sure his clients don’t cancel after enrollment since he can’t ask for the $250 back.
Illegal. Carl must run the campaign for at least one month so he does not discriminate against prospects who purchased policies in the beginning of the month before the incentive.
You should tell Carl giving people who buy policies from you a $250 gift card is considered a rebate and is illegal.
If Carl registers his rebate with the insurer, he’s permitted to give away as much as he can afford.

Sliding occurs when,

Agents improperly replace a policy with another from the same insurer to earn a new commission.
Agent improperly replaces an existing policy with one from a different insurer to earn a new commission.
Sliding occurs when an insurance agent bundles services and presents them as an inseparable package deal.
Agents pay kickbacks to un-licensed entities for referrals.

The Fair Credit Reporting Act was adopted in 1970 to,

Make sure Ratings Agencies reported insurer financials fairly.
Protect consumers from false or inaccurate reporting.
Protect businesses from unfair lending practices due to discrimination.
Help make it easier for consumers to access credit.

Which of the following historical court cases determined the business of insurance was best regulated at the state level?

1868 Paul (VS) Virginia
1944 United States (VS) Southeastern Underwriters
1945 McCarran – Ferguson Act
Patriot Act of 2001

The Patriot Act was adopted to help,

Detect and intercept terrorist Funding
Victims of Identity Theft
Protect Veteran benefits
Fund Social Security.

Which state entity is responsible for returning Unclaimed Property to Floridians?

Financial Services Commission | Commission
Office of Insurance Regulations | OIR
Office of Financial Regulations | OFR
Department of Financial Services | Department

How many hours of Continuing Education must a newly licensed agent complete each compliance period?

4-Hours Law & Ethics update
20-Hours
24-Hours
28-Hours

Kelli is a licensed insurance broker. She’s been licensed and appointed for 10 years. This Continuing Education compliance period, how many hours of Continuing Education must Kelli complete?

Kelli must complete one required 4-Hour law update course. The other 16 hours are electives. Kelli may choose any Authorized course available to her.
24-Hours of CE with at least 4-hours of insurance law studies.
20-Hours of Authorized Continuing Education Classes of her choice.
24-Hours of Authorized Continuing Education classes of her choice.

Someone who conducts the business of insurance without obtaining Authorization is considered an,

Un-Affiliated Agent
Captive Agent
Un-Authorized Entity
Self-Appointed Agent

Which of the following identifies a Morale Hazard?

A person has no regard for their own personal wellbeing.
A person has no regard for themselves or others around them.
Morale Hazards are crimes committed against other people.
Morale hazards are violations against the licensees’ fiduciary responsibilities.

A Moral Hazard is when,

A person has no regard for their own personal wellbeing.
A person has no regard for themselves or others around them.
Morale Hazards are crimes committed against other people.
Morale hazards are violations against the licensees’ fiduciary responsibilities.

Which of the following is NOT a realistic strategy for mitigating risk?

Risk Reduction
Risk Avoidance
Risk Retention
Risk Transference

Which of the following entities has NOTHING to do with regulating the business of insurance in Florida?

Financial Services Commission | Commission
National Association of Insurance Commissioners | NAIFA
Department of Financial Services | Department
DFS Division of Unclaimed Property

Florida’s Governor, Chief Financial Officer, Attorney General and Commissioner of Agriculture are MEMBERS of,

Office of Insurance Regulations | OIR
Department of Financial Services | DFS
Financial Services Commission | Commission
National Association of Insurance Commissioners | NAIC

Unlicensed Insurance Agency Employees are permitted to,

Distribute policy forms and supplies.
Help clients complete the insurance policy application and answer questions as they arise.
Contact local prospects by phone and encourage them to replace their existing policy with a new less expensive insurer your agency represents.
Take an application, quote a rate, or accept a premium if the client randomly walks into the agency location.

When insurers can no longer meet their financial obligations to policy-owners, they’re deemed,

Impaired
Insolvent
High Risk
Alien Insurer

Daniel is a licensed and authorized insurance agent. During a routine traffic stop, Daniel was arrested for felony possession of a “Controlled Substance” without a prescription. Which of the following is correct?

If this is Daniels first offense, he’s likely to receive a fine.
Felony convictions automatically trigger a one-year license suspension.
A felony conviction means Daniel is no longer trustworthy so, the DFS will revoke his license and appointments.
Daniel is facing a maximum $5,000 fine and a minimum one-year suspension with five years of probation.

Which entity oversees the Accounts Receivable (AND) Claims Payable for insolvent domestic insurer?

Chief Financial Officer | CFO
Office of Insurance Regulations | OIR
Office of Financial Regulations | OFR
DFS Division of Rehabilitation and Liquidation

Which of the following best identifies a person who’s been convected of a felony?

They are a Moral Hazard
They are a Morale Hazard.
The impairment would deem them to be incompetent.
They are considered a pure risk.

Spreading harmful-untrue rumors about an individual or entity is called,

Omission
Coercion
Defamation
Intimidation

A regularly scheduled audit identifies a domestic insurer in financial distress. The insurer should be able to correct their operational problems. Which of the following best describes the CFO’s role in protecting policy-owners and beneficiaries from this insurer?

CFO is declared the liquidator and responsible for paying claims.
CFO is declared the rehabilitator and becomes responsible for helping pay consumer claims.
CFO is declared the conservator.
CFO is declared the process agent and personally manages the impaired insurers finances.

iLaw | 4 Hour Insurance Law & Ethics C.E. Course

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