Lesson 19 Quiz

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Florida Insurance Regulation

a)	Establishes and maintains the legal framework for state laws relating to insurance (the Insurance Code).
b)	Oversees the insurance industry in accordance with the provisions of the Insurance Code.
c)	Works in conjunction with the Department of Financial Services to oversee the insurance industry in accordance with the provisions of the Insurance Code.
d)	Identifies and makes legal determinations involving cases of conflict between insurance companies and policyowners and enforces criminal penalties for violation of any directive of the Insurance Code.
a) The State Legislature b) Department of Financial Services c) Commissioner of the Office of Insurance Regulation d) State Court System (Lesson 19.1)

Which of the following terms should not be used in such a way as to imply that the insurance agent is generally engaged in an advisory business in which compensation is unrelated to sales?

3	Financial planners, consultants, and counselors are paid for providing , not selling . Word bank: a specific product, advice Financial planners, consultants, and counselors are paid for providing advice, not selling a specific product. Lesson 19.1

It is unlawful for agents to share commissions with anyone other than with agents who are also duly licensed in the same line.

A violation of a cease and desist order by the Chief Financial Officer carries a fine of up to:

The Insurance Code sets forth misdemeanor penalties for any individual who knowingly makes a false or otherwise fraudulent application for any license or who violates any provision of the Code.

Insurance agents must keep records for at least _________ years if the transaction pertains to premium payments.

Insurers

Possible consequences for acting as an insurer without proper licensure include which of the following?

Match the following with their respective definitions.

The only health benefit plan that pre-empts the Florida Insurance Code is the truly single-employer ERISA qualified plan that is 100% self-insured; only the employees and their dependents receive the benefits.

Marketing Practices

Should a subject arise in which the agent is unskilled, the agent should:

If a new policy is being written to replace an existing policy, the agent must explain why the policy is being replaced and how the replacement will be beneficial to the client.

Florida law requires agents to ask every person solicited for insurance whether they are currently covered under any other contracts. Before an application is taken, agents are required to obtain a signed form from the applicant acknowledging that this information has been provided.

A soliciting agent must give the applicant a ___________ and disclose the free look allocation.

Policy Clauses and Provisions

Under Florida law, group health insurers are required to offer which of the following coverages to the policyowner?

Group health insurance policies are required to contain certain provisions. Match the following provisions with their corresponding timeframes.

a)	Florida law prohibits individual health insurance policies, other than disability income, from excluding coverage for a preexisting condition for longer than _________, following the effective date of coverage for a condition that had manifested _________ prior to coverage.
b)	Florida law allows health insurance applicants _______ to inspect a policy that is delivered with the intent of issuing insurance coverage for the policyowner and if the policy is not issued, the applicant must be given a full refund.
c)	A lapse notice must be sent to the health insurance policyowner at the end of a required grace period of _________(depending upon the premium payment schedule).
d)	Coverage for any newborn children of an individual who is covered under a health insurance policy must be provided immediately at birth. Coverage must also be provided for a period of at least ________.
e)	If a secondary addressee is sent a lapse notice, the notice must inform the insured that he/she has an additional _______ in which to prevent the policy from lapse because of nonpayment.
a) 24 months, 24 months, b) 10 days, c) 7, 10 or 31 days, d) 18 months, e) 21 days, Lesson 19.5

Group Life Insurance

The conversion privilege under Florida's Mini-COBRA guidelines must take place within after termination of employment. COBRA guarantees the consumer's right to purchase group health insurance for generally up to without proof of insurability. Continuation of group health coverage must be offered to the member at a cost not to exceed of the regular group rate. If the employee is disabled at the time continuation coverage begins, coverage can be extended up to an additional at a cost of for each additional month.

Word bank: 11 months, 115%, 150%, 18 months, 31 days

The conversion privilege under Florida's Mini-COBRA guidelines must take place within 31 days after termination of employment. COBRA guarantees the consumer's right to purchase group health insurance for generally up to 18 months without proof of insurability. Continuation of group health coverage must be offered to the member at a cost not to exceed 115% of the regular group rate. If the employee is disabled at the time continuation coverage begins, coverage can be extended up to an additional 11 months at a cost of 150% for each additional month.

Lesson 19.7.2

Conversion privileges afforded by COBRA pertain only to health insurance, not to group life insurance.

Retirement Plans

Types of Health Plans

Match the following types of health plans with their respective descriptions.

Florida Employee Health Care Access Act

The Florida Employee Health Care Access Act identifies a full-time employee as one who works at least _____ hours per week.

Modified Community Rating stipulates renewal cost changes cannot exceed _____ annually for health status.

LESSON 19: FLORIDA LAWS AND RULES PERTINENT TO LIFE AND HEALTH INSURANCE