Florida Life & Health Insurance Exam — All Questions

All General Insurance Concepts Life Insurance Basics Life Insurance Policies Life Policy Provisions, Riders, Options & Exclusions Annuities Life & Annuity Taxation and Uses Health Insurance Basics Health Policies Health Policy Provisions, Clauses & Riders Group Insurance, Social Insurance & Senior Products State Producer Licensing State Insurance Law & Code State Marketing Rules, Ethics & Unfair Practices

2 questions

State Marketing Rules, Ethics & Unfair Practices

Unlike most states, Florida permits an agent to rebate part of a commission to a client, provided that:

a.The rebate is given quietly only to the agent's preferred clients
b.The rebate is offered under a schedule applied uniformly to all insureds in the same actuarial class and is not unfairly discriminatory✓
c.The transaction involves a term life policy
d.The client is age 65 or older

Florida is one of the few states that allow rebating. Under the state's rebating statute, an agent may rebate premium or commission only if it is done under a schedule that is uniformly applied to all insureds in the same actuarial class and is not unfairly discriminatory. Selective, secret rebates remain prohibited.

State Marketing Rules, Ethics & Unfair Practices

In Florida insurance law, using the values of an existing policy with the SAME insurer to buy a new policy through misrepresentation is known as:

a.Twisting
b.Churning✓
c.Sliding
d.Rebating

Churning is replacing a policy using the values of an existing policy with the same insurer through misrepresentation. Twisting involves the same misconduct but replaces a policy with a different insurer; sliding is adding coverage or fees without the buyer's informed consent. All are prohibited unfair practices.