Multiple Choice
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1.
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All of the following are functions of the National Association of Insurance
Commissioners EXCEPT to:
a. | promote uniformity among state insurance laws | b. | enact statutes to
regulate insurance nationwide | c. | preserve state regulation of
insurance | d. | protect the insurance-buying public |
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2.
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In Florida, which two of the following organizations can impose penalties for
violations of the Insurance Code?
I. Florida
Legislature
II. Florida state court system
III.
NAIC
IV. Office of Insurance Regulation
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a. | I and III only | b. | II and III only | c. | II and IV
only | d. | III and IV only |
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3.
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Which of the following establishes the primacy of state regulation of insurance
in the U.S. today?
a. | McCarran-Ferguson Acr | b. | Paul v. Virginia | c. | Financial Services
Modernization Act | d. | Armstrong
Commission |
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4.
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If an annuity company becomes financially insolvent, the failed company’s
obligations to its contractholders will be fulfilled by Florida’s:
a. | Department of Financial Services | b. | Consumer Assistance Plan | c. | Life & Health
Guaranty Association | d. | Office of Insurance
Regulation |
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5.
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An agent found to be soliciting policies on behalf of an unauthorized insurance
entity may be:
a. | convicted of a third-degree felony | b. | be subject to a $50,000
fine | c. | convicted of a first-degree felony | d. | any of the
above |
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6.
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Agents selling all of the following require must be licensed by FINRA,
EXCEPT:
a. | universal life | b. | universal variable life | c. | variable
life | d. | variable annuity |
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7.
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Private annuities:
a. | are another name for an individual annuities | b. | were once permitted
under the tax code but are now prohibited by the | c. | can be used as an estate planning tool to
transfer ownership of assets between family members | d. | must be underwritten by private sector
insurance companies |
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8.
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Which of the following does NOT rate the financial strength of insurance
companies?
a. | Fitch | b. | Duff & Phelps | c. | J.D.
Powers | d. | A.M. Best |
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9.
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The most common use of group annuities is:
a. | funding non-qualified deferred compensation plans | b. | funding defined
benefit plans | c. | joint annuity payouts for married couples | d. | distributing
retirement benefits from 401(k) plans |
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10.
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The market for insurance products is constantly evolving. Which of the
following accurately describes the channels for distributing annuities?
a. | most life insurance policies are sold through agents who primarily sell
insurance | b. | broker-dealers and banks write a substantial proportion of annuity business
today | c. | consumers tend to view the purchase of annuities as an investment decision
| d. | all of the above are true |
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11.
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Which of the following sell the most equity indexed annuity contracts?
a. | stockbrokers | c. | personal producing general agents | b. | captive
agents | d. | banks and other
depository institutions |
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12.
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The increased use of third party distribution systems have resulted in:
a. | greater agent loyalty to annuity companies | b. | longer persistancy
factors for annuity contracts | c. | greater profitability of annuity
companies | d. | wider selections of annuity products for consumers |
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13.
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The increased use of third-party distributors in the annuity marketplace
has:
a. | improved long-term client satisfaction | b. | improved overall supervision of agents and
suitability of their recommendations | c. | reduced the incidence of unsuitable
“replacements” | d. | increased competition between annuity
companies |
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14.
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Which of the following regulatory bodies oversees the secondary market in
annuities?
a. | FINRA | b. | state insurance
commissioners | c. | SEC | d. | none of the
above |
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15.
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Which of the following are typical reasons for a client to sell an annuity in
the secondary market?
a. | the client inherited an annuity | b. | the client’s investment needs have
changed since the purchase | c. | the client has buyer’s
remorse | d. | all of the above are reasons to sell an annuity |
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16.
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Which of the following annuities can NOT be sold in the secondary market?
a. | straight life annuity with 10 year period certain | b. | a deferred annuity
in its accumulation phase | c. | qualified retirement
annuities | d. | all of the above can be sold in the secondary market |
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17.
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Under the decisions Appel v. Moss and Abbott v Beardmore, which of
the following are deemed to have a fiduciary responsibility to their clients?
a. | agents | b. | brokers | c. | both a and
b | d. | neither a nor b |
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18.
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An agent’s license may remain valid without an appropriate appointment
for:
a. | 12 months | b. | 24 months | c. | 36
months | d. | 48 months |
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19.
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Regarding premium payments collected by an agent, Florida law requires agents to
maintain records of premiums for:
a. | 12 months | b. | 24 months | c. | 36
months | d. | 48 months |
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20.
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Agents selling an equity indexed annuity must deliver which of the following to
the client?
a. | Contract Summary | c. | both a and b | b. | Prospectus | d. | neither a nor b |
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