Insurance MCQ

Can an agent in charge oversee multiple locations? A) Yes, but the agent in charge must be onsite during the transaction of insurance sales. B) No, agents in charge can only be assigned to one location. C) Yes, insurance transactions can take place at any location, even if the agent is not onsite. D) No, agencies can not have multiple locations. Answer: A) Yes, but the agent in charge must be onsite during the transaction of insurance sales.

Within how many days must a licensee notify the Department of Financial Services (DFS) of an address change? A) 10. B) 30. C) 45. D) 90. Answer: B) 30.

If an agent is found guilty of a felony, he/she is required to notify the Department of Insurance within how many days? A) 45. B) 60. C) 30. D) 90. Answer: C) 30.

An agent must complete 24 hours of Continuing Education every. A) 4 years. B) 2 years. C) 3 years. D) 5 years. Answer: B) 2 years.

All of the following activities could result in the suspension of an agent's license EXCEPT? A) misrepresenting the financial condition of an insurance company. B) selling any replacement policy that causes an insured to lapse an existing policy. C) attaining a license for the sole purpose of handling controlled business. D) demonstrating incompetency to transact business as an insurance agent. Answer: B) selling any replacement policy that causes an insured to lapse an existing policy.

Which of the following is considered an Unfair Trade Practice under Florida law? A) Abandonment. B) Coercion. C) Consequential Damage. D) Waiver. Answer: B) Coercion.

"Controlled business" is MOST ACCURATELY described as? A) insurance placed by an agent on the agent's own life, property, or risks. B) insurance placed by an agent on the agent's neighbor's property. C) insurance placed by a general agent through a single insurance company. D) a line of insurance offered by a single insurance company. Answer: A) insurance placed by an agent on the agent's own life, property, or risks.

The Department of Financial Services will consider all of the following factors when determining whether an agent's home is an insurance agency EXCEPT? A) The agent advertises his/her home location in newspapers, phone books, or other ways. B) There is a sign on the house indicating there is an insurance agent there. C) The agent meets clients there D) The amount of premium revenue generated there. Answer: D) The amount of premium revenue generated there.

Which activity may result in suspension or revocation of an agent's license? A) Writing primarily controlled business. B) Using the human life value approach. C) Issuing a conditional receipt. D) Changing one's business address. Answer: A) Writing primarily controlled business.

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) Embezzlement. D) Concealment. Answer: A) Twisting.

Agents may be found guilty of defamation if they make a false statement that is intended to? A) malign another insurance company. B) mislead a prospect about a policy's term of coverage. C) misrepresent the benefits payable under a policy. D) defraud an insured or a claimant. Answer: A) malign another insurance company.

Which of the following would be considered an unfair claim practice? A) Implementing standards for proper investigation. B) Denying a claim after reasonable investigation of the facts. C) Misrepresenting insurance policy provisions affecting a loss. D) Acting promptly on claims communication. Answer: C) Misrepresenting insurance policy provisions affecting a loss.

How many hours of continuing education must agents who have been licensed less than six years complete every two years? A) 12. B) 20. C) 24. D) 28. Answer: C) 24.

Violation of the controlled business statute occurs if an agent sells most of her business to? A) employees of a business owned by her father. B) members of her civic club. C) city and county employees. D) members of the local medical society. Answer: A) employees of a business owned by her father.

Knowingly making misleading statements that would cause an insured to lapse, assign, or terminate an insurance policy in order to switch companies is an example of? A) rebating. B) demation. C) intimidation. D) twisting. Answer: D) twisting.

Can an agent-in-charge have more than one location? A) No, each location must ave an agent-in-charge. B) No, agent-in-charge can only have one location. C) Yes, as long as the location was registered after January 1, 2003. D) Yes, as long as the agent-in-charge is present when insurance activity occurs. Answer: D) Yes, as long as the agent-in-charge is present when insurance activity occurs.

A licensee may NOT transact insurance business in Florida until which of the following occurs? A) The licensee becomes a resident of Florida. B) The licensee is appointed by an insurer. C) The licensee pays a $50 fee to the Chief Financial Officer. D) The licensee becomes employed by an insurer. Answer: B) The licensee is appointed by an insurer.

If an agent changes her residence address, she must notify the Department of Financial Services within? A) 15 days. B) 30 days. C) 60 days. D) A change of residence address does not require notification. Answer: B) 30 days.

Agent authority can be defined as any of the following, EXCEPT? A) Apparent. B) Express. C) Principal. D) Implied. Answer: C) Principal.

Which of the following terms defines the authority given to an agent to transact business on behalf of the insurer? A) license. B) appointment. C) certificate of authority. D) insurance contract. Answer: B) appointment.