Law & Ethics For Health

If your client was looking to “Fully Insure” the value of easily moved/transported items such as jewelry or electronics, they would need what type of insurance policy?

Burglary & Theft Insurance,
Floaters Insurance,
Property Insurance,
Liability Insurance

If you needed to obtain insurance on your horse, saddle, and contents of the saddle bag, what type of insurance would you purchase?

Liability Insurance,
Property Insurance
.Vehicle Insurance,
Animal Insurance

If your client is interested in protecting themselves from the economic responsibility associated with the injury, disability, or death of another person they’re looking for what type of insurance?

Health Insurance,
Homeowners Insurance,
Liability Insurance.
Workers Compensation

Homeowners and Residential Hurricane Insurances are both types of,

Casualty Insurance,
Surety Insurance,
Property Insurance
Marine Insurance

General Lines Agents represent a huge catalog of potential offerings. Which of the following combinations of insurance strategies represent the 2-20 scope of appointment?

Property, Casualty, Surety, Health and Marine Insurances,
Property, Casualty, Surety, Health and Life,
Property, Casualty, Surety, Life and Marine Insurances,
Property, Casualty, Surety, Health and Funeral Services

Jethro is an insurance agent. He is moving out of state and wants to transfer his Insurer Appointments to his friend. He asked you for advice. How would you advise him?

Send Jethro to the My Florida CFO website. There he can use the e-appoint system to transfer his appointments to Carl.
Appointments are non-transferable.
Since insurers have different operating protocols, you direct him to the insurer website so he can use the proper paperwork.
Appointment transfers are handled by the Office of Insurance Regulations. Jethro should call their helpline.

Which of the following regulatory entities is responsible for auditing the financial soundness of insurers and ensuring the rates Floridians pay for coverage is fair?

Office of Insurance Regulation (OIR),
Financial Services Commission (FSC)
Chief Financial Officer (CFO)
Office of Financial Regulations (OFR)

Carl is an insurance agent. He recently managed to get out of a DUI however, he didn’t complete his Continuing Education on time. How long can Carl continue neglect CE Compliance requirements before the DFS Terminates his license?

Compliance periods are every 24 months and end on the last day of your birth month.
Carl would have a 90-day grace period after his compliance date to complete his CE without penalty.
If Carl fails to do continuing education for 2 compliance periods (48 months) his license will be terminated.
The Department of Financial Services does not revoke licenses because you didn’t take a few CE classes.

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

Financial Services Commission
Office of Insurance Regulations
Office of Financial Regulations
Department of Financial Services.

Which of the following entities is responsible for overseeing Florida’s Insurers, Banks, and Lenders?

Chief Financial Officer (CFO)
Department of Financial Services (DFS)
Financial Services Commission (FSC)
National Association of Insurance & Financial Advisors (NAIFA)

How many hours of continuing education must newly licensed agents to complete each compliance period?

One 4-Hour Insurance Law and Professional Ethics update
20-Hours
24-Hours
28-Hours

The Patriot Act was adopted in 2001 to help,

Filter illegal immigrants out of the US healthcare system
Empower American citizens to detain individuals suspected of terrorist behavior without consequence
Identify financial anomalies which may potentially uncover terrorist money laundering activities
Keep illegal immigrants out of the US workforce

Which of the following entities regulates Securities, Lenders and the Variable investment strategies used with Variable Life Insurance and Annuity contracts?

Chief Financial Officer (CFO)
Office of Financial Regulation (OFR)
National Association of Insurance Commissioners (NAIC)
DFS | Division of Rehabilitation and Liquidation

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

Insolvent
Impaired
Financially Incompetent
Endangered

Kelli is a licensed insurance agent. She’s been licensed and appointed for 10-Years. This CE compliance period, how many hours of CE 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.

The term “Compliance Date” refers to;

The date a licensee complies with an official Department request for information.
Continued Education, specifically the last calendar day of the licensee’s birth month
The effective date of an appointment
The date a licensee completes their required continued education

WHAT is the penalty for violating a Cease-and-Desist Order while it’s in effect?

$2,500 fine,
$25,000 fine,
$50,000 fine and revocation of their insurance license
Up to Five (5) years of incarceration,

The OIR declares a domestic insurer INSOLVENT. Which of the following best describes one of the next step in this process?

The OIC revokes their certificate of authority so they can no longer sell policies in Florida.
If the insurer is based out of Florida, the Department of Financial Services will be appointed the liquidator. All assets received will be distributed according to the insurance code.
The Florida Guarantee Association takes over the day-to-day operations to settle outstanding claims.
Call the policyholders and help them find replacement policies.

Which of the following entities host consumer resources like, Fraud Free Florida and On Guard for Seniors?

Office of Insurance Regulations (OIR)
Chief Financial Officer (CFO)
National Association of Insurance Commissioners (NAIC)
Financial Services Commission (FSC)

Which of the two (2) entities below are responsible for the actions of both licensed and un-licensed employees?

Insurers
Agent in Charge
Agency owners
Un-Affiliated Agents

Assume you were notified by the Division of Customer Service about a consumer complaint. How many days do you have to respond to the complaint?

15 Days
20 Days
30 Days
45 Days

When an insurer can no longer meet their financial obligations, they are deemed an,

Impaired Insurer
Insolvent Insurer
High Risk Insurer
Alien Insurer

Someone who conducts the business of insurance without obtaining the proper Authorization from the Department of Financial Services is considered an,

Unaffiliated Agent
Captive Agent
Unauthorized Agent
Self-Appointed Agent

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

14 days
20 Days
30 Days
45 Days

Which of the following entities 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 (OIR)

How many days does a licensee have to respond to an Official Department of Financial Services request for information?

15
20
30
45

The National Association of Insurance and Financial Advisors (NAIFA) provided the content for the Official Florida Pre-Licensing Manual and outline for consumer protections pertaining to,

Improper use of Designations
National Anti-Robo Dial Laws.
Federal On Guard for Seniors initiative.
The suggested reduction in required Law and Ethics CE course hours from five hours to four.

A Morale 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.

Sara is an insurance agent from Texas with non-resident authorization from the Florida Department of Financial Services. Sara decides to permanently move to Florida. How long does she have to notify the Department before her appointments are terminated?

10 Days
30 Days
45 Days
90 Days

A statement made by the insurance applicant which is GUARANTEED to be TRUE is called a;

Warranty.
Representation,
Promise,
Binding Statement

The responsibilities of the State Fire Marshal belong to;

Governor
The Chief Financial Officer (CFO)
The Department of Financial Services (DFS)
The Bureau of Investigative and Forensic Services

What do Rating Services rate?

The stability of state and government Finances.
Emergency reserves for workers compensation and appointment fees.
Insurers financial stability and their ability to pay claims.
Insurance and financial statistics

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.

The Chief Financial Officer is the head of the,

Department of Insurance Regulation
Department of Financial Regulation
Department of Financial Services
Streamline our state government.

Spreading harmful rumors about another individual or entity is an Unfair Business Practice referred to as;

Excessive Charges,
Coercion,
Defamation.
Fraudulent Signatures

The Florida CFO has the Authority to investigate violations and impose fines beyond Florida state lines. This ability is called,

Quasi-Judicial Authority
Quasi-Legislative Authority
Process Agent
CFO Boss Moves

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

Which of the following is not a realistic strategy for avoiding risk?

Risk Reduction
Risk Avoidance
Risk Retention
Risk Transference

The Department of Financial Services was created in 1998 to;

Eliminate the Department of Insurance
Eliminate the Department of Banking & Finance,
Eliminate the Treasury department
Streamline our state government.

Tom’s family owns a trucking company. Tom gets an insurance license to manage the policies associated with the family business. If Tom never sells policies to anyone outside of the trucking company, he be guilty of,

Controlled Business.
Illegal Dealings,
Unfair Competition,
Tom did nothing wrong,

Sara is the Agent In Charge (AIC) of a the “ABC Insurance Agency”. She resigns today. ABC does not appoint a new Agent in Charge. How long does ABC Insurance Agency have before the Department of Financial Services revokes their agency license?

20-Days
45-Days
90-Days
The DFS does not revoke insurance agency licenses. Only the Office of Insurance Regulations has the authority to revoke ABC’s agency license.

A professional introduction identifies the “Who” and “What” aspects of the conversation. A proper Agent 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.

Which of the following entities has nothing to do with the business of insurance?

Florida Financial Services Commission
National Association of Insurance Commissioners
Governors Cabinet
DFS Division of Investigative and Forensic Services

The Office of Insurance Regulation (OIR) is responsible for,

Monitoring the daily activities of Insurance Agents & Agencies
Customer Service
Distributing important insurance industry updates to licensees.
Regulating the activities of insurers.

The Department of Financial Services contains 13 different divisions. Six deal directly with the business of insurance. Which division is responsible for helping consumers with questions, concerns, and complaints?

The Division of Investigative and Forensic Services,
The Division of Consumer Services,
The Division of Public Assistance and Fraud,
The Division of Risk Management

What is a Representation and who does it pertain too? Representations are,

Statements the applicant makes which are guaranteed to be true.
Statements made by the consumer which are not guaranteed to be true.
Statements the agent makes which are made to the best of their knowledge.
Statements the Insurer makes which are guaranteed to be true.

Carl is an insurance agent. To pump up sales he runs a marketing campaign that promises 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 the clients don’t cancel 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.

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

Office of Insurance Regulations
Department of Financial Services
Financial Services Commission
National Association of Insurance Commissioners

The Division of Investigative and Forensic Services,

Is law enforcement branch of the Financial Services Commission (FSC),
Has quasi-judicial powers
Is headed by the Commissioner of the Office of Financial Regulation (OFR)
Is a Division of the Department of Financial Services with sworn law enforcement officers.

When an agent receives a request for information from the Division of Customer Service, how long do they have to respond?

14 Days
20 Days
30 Days
The Division of Customer Service does not request information from agents.

Carl is a licensed insurance agent in Florida. Last Saturday, Carl was pulled over at a checkpoint and arrested for DUI. Which of the following best describes Carl’s responsibility to report the incident?

Carl’s only obligation is to hire an attorney to fight the validity of the checkpoint.
Carl must immediately notify his auto insurance company of the arrest.
Carl must notify the Department of Financial Services within 30-Days of an arrest.
Once convicted, Carl has 30-Days to report the conviction to the Department of Financial Services.

Sliding occurs when,

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

Which term best refers to; documents, writings, computer memory or microfilm that the Department may request at any time?

Adjudication
Disposition
Records
Paper Archives

Which of the following describes the Authority of a Process Agent?

Process Agent refers to the Chief Financial Officers judicial power to impose penalties on entities who live outside of Florida’s state lines.
Process Agents work for the Office of Insurance Regulations and manage insurer bankruptcies.
Officers with the Division of Investigative and Forensic are called process agents when they serve a warrant.
Representatives from the Division of Customer Service are called process agents.

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 can sell consulting services, however, 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

What is the penalty for being an Un-Authorized Property Adjuster?

Property Adjusters are not regulated by the Department of Financial Services.
Up to $2,500 Civil Fine per offence
Misdemeanor with a maximum fine of up to $5,000 per offence.
3rd Degree Felon with a $10,000 per offense fine.

Appointment renewal notifications are typically;

Received 30 days prior to expiration
Received by the licensee 60 days prior to expiration
Received by the appointing entity 90 days prior to expiration
Mailed to the insurer place of business and the licensee’s home address

The Florida Financial Services Commission is comprised of,

Governor of Florida
Florida Chief Financial Officer
Commissioner of Insurance and Banking
Four members; the Governor, Attorney General, Chief Financial Officer and the Commissioner of Agriculture.

Jessie decides to work with a local insurance agency. The insurance agency starts by appointing Jessie to their 5 main insurers. Who incurs the appointment fee?

Jessie is responsible for paying her appointment fees.
The Insurance Agency doing the appointing is responsible for paying the appointment fees.
The insurers she was appointed with.
No such thing as an appointment fee.

The Fair Credit Reporting Act was adopted in 1970 to,

Make sure Ratings Agencies reported insurer financials fairly.
Protect consumers from false or inaccurate creditor reporting.
Protect businesses from unfair lending practices due to discrimination.
Provide consumers with a way to access credit to pay for healthcare hospital admissions.

Who is responsible for paying Appointment Fees to the Department of Financial Services?

Licensee
Insurer
Provider
Appointing Entity

Which of the following is NOT one of the regulatory responsibilities of the Office of Insurance Regulations?

The OIR is responsible for attracting new insurers to Florida.
The OIR audits insurance agency records.
The OIR audits the financial soundness of insurers.
The OIR is responsible for combating unauthorized entities

Which regulatory entity are agent appointment fees paid too?

Financial Services Commission
Department of Financial Services
Office of Insurance Regulations
Florida Guarantee Association

According to the Fair Credit Reporting Act, consumers have the right to all the following except,

Dispute incomplete and inaccurate information.
Access to medical records.
Restrict employers from accessing your personal credit profile.
Have placed a fraud alert on your personal file if you have been a victim of identity theft.

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

The agent is subject to administrative fines from the Department.
The agent is guilty of a misdemeanor and subject to administrative fines.
Guilty of a third-degree felony.
The Office of Insurance Regulations will immediately revoke the agents license.

Which of the following entities has investigators who are sworn law enforcement with the authority to detain suspects?

The Office of Financial Regulation
Bureau of Financial Investigations.
The Department of Financial Services
The Division of Investigative and Forensic Services

How much notice are insurers required to give the agent if, they intend on terminating the agent’s appointment?

20-Days
30-Days
45-Days
60-Days

Which of the following historical court cases determined the business of insurance despite being subject to certain Federal laws 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

Which entity acts as the criminal justice agency for the Florida Insurance Marketplaces and includes the Bureau of Fire and Arson Investigations

The Department of Financial Services,
The Division of Investigative and Forensic Services,
The Attorney General,
The Division of Insurance Agent and Agency Services

The Division of Customer Service has the authority to,

Impose fines for failing to reply to a request for information.
Conduct investigations
Suspend an agent or agency license
Terminate an insurer appointment

How long are insurance agents required to keep relevant paperwork pertaining to the policies they have sold?

Five Years
Three Years
Two Years
One Year

The Patriot Act was adopted in 2001 to primarily help,

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

Law & Ethics For Health

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