Health 8 - Florida Insurance Laws Flashcards

Questions and Answers

Who oversees the Bureau of Unclaimed Property?

Chief Financial Officer

What is an example of unfair discrimination in insurance?

Offering different terms of coverage for different policyowners having the same risk classification

What defines a foreign insurance company in Florida?

Is a company that was formed under the laws of another state

What must an agent selling Medicare Supplement policies provide every applicant with?

Suitability form Signup and view all the answers

How many days after a covered loss must a person insured under a health policy give a Notice of Claim?

Twenty Signup and view all the answers

How many hours of continuing education must a newly licensed agent complete every two years?

24 Signup and view all the answers

An insurance company incorporated under the laws of the state in which its home office is located is called a(n) ____ company.

domestic Signup and view all the answers

When is a Group Health policy required to provide coverage for a newborn child?

At the moment of birth Signup and view all the answers

What type of benefits does a Multiple Employer Welfare Arrangement (MEWA) provide?

Insurance Signup and view all the answers

What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida Law?

0% Signup and view all the answers

What are adjustable rates for life policy loans in Florida based on?

Moody's corporate bond index Signup and view all the answers

In Florida, most life insurance policies have a contestability period of how long?

2 years Signup and view all the answers

What is an example of an unfair trade practice?

An agent making a material misrepresentation to the insured Signup and view all the answers

What corrective action may the Department of Financial Services order an agent to take after making an improper sale of an annuity?

Pay monetary restitution to the client Signup and view all the answers

Which of the following situations does NOT apply to the Florida Replacement Rule?

An existing policyholder purchases an additional policy from the same insurer Signup and view all the answers

Which two entities regulate variable annuities?

Department of Financial Services and Securities Exchange Commission Signup and view all the answers

Who must be provided with a Comparison and Summary Statement under Florida's life insurance replacement laws?

The policyowner Signup and view all the answers

All of the following are Nonforfeiture Options EXCEPT:

Automatic Premium Loan Option Signup and view all the answers

What is required in Florida Group Life policies regarding conversion privileges?

Conversion to an individual policy for a stated period of time Signup and view all the answers

In Florida, monthly-premium health insurance policies must provide a grace period of at least how many days?

10 days Signup and view all the answers

What right does the conversion privilege grant an employee whose employment is terminated under a Group Life policy?

To convert to an individual policy upon employment termination Signup and view all the answers

What limitation on pre-existing conditions is NOT required in a Medicare Supplement policy according to Florida law?

Limitation on pre-existing conditions for up to 12 months Signup and view all the answers

What do families pay that are covered by the Florida Healthy Kids Corporation?

A portion of the premium Signup and view all the answers

What happens if a policyowner does not pay the premium by the due date?

The policyowner can make the premium payment during the grace period Signup and view all the answers

Which of the following employees may NOT be excluded from a group life plan?

Full-time employees after the probationary period Signup and view all the answers

In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n) ____ company.

foreign company Signup and view all the answers

Florida's 14-day free-look period for life insurance policies begins at the _____.

date of delivery Signup and view all the answers

Insurance companies organized in countries outside the United States are referred to as ____.

alien Signup and view all the answers

How long does coverage for newborns last according to Florida law?

18 months Signup and view all the answers

What is the maximum value for advertising gifts allowed to be given by an agent to a prospective client?

$25 Signup and view all the answers

When replacing or exchanging an annuity, what must the agent disclose?

The possible tax ramifications as a result of the transaction Signup and view all the answers

Under what condition is rebating allowed in Florida?

If offered to all insureds in the same actuarial class Signup and view all the answers

What is the name of the rule that dictates procedures when agents recommend changes for existing coverage?

Florida Replacement Rule Signup and view all the answers

How can an agent-in-charge manage more than one location?

Only if the agent-in-charge is present when insurance activity occurs Signup and view all the answers

Which of the following is considered an Unfair Trade Practice in Florida?

Coercion Signup and view all the answers

What is an example of an unfair claims practice?

Failing to effectuate prompt, fair, and equitable settlements of a claim Signup and view all the answers

Which Unfair Trade Practice involves making a false statement on an insurance application to receive money?

Misrepresentation Signup and view all the answers

Under what condition can a handicapped child extend their health insurance coverage as a dependent?

Only if the child is incapable of employment and chiefly dependent on the policyowner Signup and view all the answers

What action could lead to a hearing ordered by the Department of Financial Services?

Performing insurance transactions without a license Signup and view all the answers

What term describes an agent who makes misleading statements causing policy termination for a new policy?

Twisting Signup and view all the answers

Study Notes

Florida Insurance Regulations and Practices

The Bureau of Unclaimed Property in Florida is overseen by the Chief Financial Officer.
Unfair discrimination occurs when different coverage terms are offered to policyowners within the same risk classification.
A foreign insurance company in Florida is defined as one formed under the laws of another state.
Agents selling Medicare Supplement policies must provide a suitability form to every applicant.

Claims and Notification Requirements

Notice of Claim must be given in writing to the insurance company within 20 days following a covered loss.
No specific minimum employee participation percentage is required for noncontributory group health insurance plans, though 100% participation is standard in practice.

Insurance Policy Provisions

Group Health policies must provide coverage for a newborn child from the moment of birth.
A Multiple Employer Welfare Arrangement (MEWA) provides insurance benefits to its members.
Adjustable rates for life policy loans in Florida are based on Moody's corporate bond index.
Most life insurance policies in Florida have a contestability period of 2 years.

Trade Practices and Consumer Protections

An unfair trade practice includes making material misrepresentations to an insured.
The Department of Financial Services may mandate monetary restitution if agents improperly sell financial products.
The Florida Replacement Rule does not apply when an existing policyholder purchases an additional policy from the same insurer.

Regulation of Annuities and Life Insurance

Variable annuities are regulated by both the Department of Financial Services and the Securities Exchange Commission.
Policyowners must receive a written Comparison and Summary Statement upon request for life insurance replacements.
An automatic premium loan is not categorized as a Nonforfeiture Option.

Group Life Policies and Rights

Group Life policies in Florida must provide a conversion privilege to an individual policy within a specified time after employment termination.
The Florida Healthy Kids Corporation requires families to pay only a portion of their premiums.
Employees who are full-time after the probationary period cannot be excluded from group life plans.

Consumer Rights and Coverage Details

Coverage for newborns begins immediately at birth and lasts for 18 months.
Agents are allowed to give advertising gifts to prospective clients, up to a value of $25.
Agents must disclose potential tax implications when replacing or exchanging annuities.

Compliance and Misconduct

Agents can engage in rebating as long as it is offered to all insureds in the same actuarial class.
Coercion is classified as an unfair trade practice under Florida law.
Failing to settle claims promptly and fairly is considered an unfair claims practice.

Misrepresentation and Fraud

Misrepresentation involves making false statements to gain monetary benefits from insurers.
Handicapped children can extend their health insurance coverage as dependents if they cannot be employed and are dependent on the policyowner.

License and Enforcement

Performing insurance transactions without a license can lead to a hearing ordered by the Department of Financial Services.
Twisting is the act of making misleading statements to induce termination of an existing policy for the purpose of acquiring a new one.

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Description

Test your knowledge on Florida laws and rules related to insurance with these flashcards. This quiz covers key concepts such as the oversight of unclaimed property and unfair discrimination in insurance terms. Perfect for students preparing for licensing exams in the insurance field.