Podcast
Questions and Answers
What must an agent do when replacing an existing insurance policy?
What must an agent do when replacing an existing insurance policy?
- Avoid informing the insurer about the replacement.
- Cancel the old policy immediately upon application.
- Waive the first premium on the new policy.
- Provide the applicant with a Notice Regarding Replacement. (correct)
What is a consequence of receiving a conditional receipt if the applicant dies before underwriting is complete?
What is a consequence of receiving a conditional receipt if the applicant dies before underwriting is complete?
- Coverage is only provided after the insurer issues the policy.
- Coverage is provided if the applicant was insurable at the time of application. (correct)
- Coverage is provided automatically, regardless of underwriting results.
- Coverage is dependent on the premium being paid at policy delivery.
Which option represents misrepresentation in marketing?
Which option represents misrepresentation in marketing?
- Giving false information about a policy’s benefits. (correct)
- Offering a discounted premium for good driving.
- Collecting premiums without issuing a receipt.
- Failing to disclose all policy exclusions.
What is the primary risk of purchasing insurance from an unlicensed entity?
What is the primary risk of purchasing insurance from an unlicensed entity?
Which scenario exemplifies the practice of twisting in insurance?
Which scenario exemplifies the practice of twisting in insurance?
What must an agent ensure when completing an insurance application?
What must an agent ensure when completing an insurance application?
Which of the following describes the purpose of HIPAA in the insurance application process?
Which of the following describes the purpose of HIPAA in the insurance application process?
Under a conditional receipt, when does coverage typically begin?
Under a conditional receipt, when does coverage typically begin?
Which of the following is not an element of a valid insurance contract?
Which of the following is not an element of a valid insurance contract?
Which aspect of an insurance contract states that only one party is legally bound to perform?
Which aspect of an insurance contract states that only one party is legally bound to perform?
Which of the following is a responsibility of the Florida Department of Financial Services?
Which of the following is a responsibility of the Florida Department of Financial Services?
What is the purpose of market conduct examinations by the Office of Insurance Regulation?
What is the purpose of market conduct examinations by the Office of Insurance Regulation?
What does a certificate of authority allow an insurance company to do?
What does a certificate of authority allow an insurance company to do?
Flashcards
Conditional Receipt
Conditional Receipt
A document that ensures coverage begins immediately upon payment of the premium, but only if the applicant passes underwriting.
Insurance Contract
Insurance Contract
A written agreement between an insurer and an insured, outlining the terms and conditions of coverage.
Unilateral Contract
Unilateral Contract
One party (the insurer) is legally bound to perform, but the other party (the insured) is not.
Unilateral Agreement
Unilateral Agreement
Signup and view all the flashcards
HIPAA's Role in Insurance
HIPAA's Role in Insurance
Signup and view all the flashcards
Florida Department of Financial Services
Florida Department of Financial Services
Signup and view all the flashcards
Market Conduct Examination
Market Conduct Examination
Signup and view all the flashcards
Certificate of Authority
Certificate of Authority
Signup and view all the flashcards
Fiduciary Responsibility
Fiduciary Responsibility
Signup and view all the flashcards
Replacement Policies
Replacement Policies
Signup and view all the flashcards
Misrepresentation in Marketing
Misrepresentation in Marketing
Signup and view all the flashcards
Conditional Receipt Consequences
Conditional Receipt Consequences
Signup and view all the flashcards
Unlicensed Entities
Unlicensed Entities
Signup and view all the flashcards
Study Notes
Insurance Application and Agent Responsibilities
- Agents must ensure all application questions are answered truthfully and completely.
- Truthful and complete answers are crucial to the underwriting process.
HIPAA and Privacy
- HIPAA protects sensitive health information during underwriting.
- Maintaining patient privacy is essential during the insurance application process.
Conditional Receipt
- Coverage under a conditional receipt typically starts when underwriting requirements are met, not at policy delivery or premium payment.
Elements of a Valid Insurance Contract
- A valid insurance contract requires agreement, legal purpose, offer and acceptance. Insurability is not an element of a valid contract.
Unique Aspects of Insurance Contracts
- Insurance contracts are unilateral, meaning only one party (the insurer) is legally required to perform initially.
Florida Department of Financial Services
- Responsibilities include investigating complaints, approving insurance products/forms, conducting examinations of insurers.
Market Conduct Examinations
- These examinations assess insurer compliance with state regulations.
- This is distinct from evaluating financial solvency, which is also a concern.
Certificate of Authority
- This certificate authorises insurance companies to legally operate in a specific state.
Agent Licensing Requirements
- Licensing requirements include completing continuing education, passing an exam, and background check. Applying for a license is also necessary.
Fiduciary Responsibility
- Agents acting as fiduciaries must handle premiums separately and avoid giving biased advice or commissions.
Replacement Policies
- Agents must alert applicants to Notice Regarding Replacement.
Misrepresentation in Marketing
- Misrepresentation includes false information about policy benefits or withholding crucial policy details (e.g., exclusions).
Conditional Receipt Consequences
- Coverage under a conditional receipt is granted when an applicant is insurable at application time, but not guaranteed.
Unlicensed Entities
- Purchasing insurance from an unlicensed entity carries a significant risk. There is no consumer protection if the policy provider becomes insolvent.
Marketing Practice Violations
- Twisting involves inducing a policyholder to cancel their existing policy for a new one, often through misrepresentation.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
