Name: 
 

Law & Ethics Update - Chapter 4 Review



Multiple Choice
Identify the choice that best completes the statement or answers the question.

 

 

 1. 

 What is the best way to find if a company is authorized to conduct business in Florida?
 
a.
Call you state representative
b.
the Active Company Search provided by the OIR
c.
contact the Better Business Bureau
d.
look it up on www.dice.com (MyProfile)
 
 

 

 2. 

Possible fines for an agent convicted of selling coverage issued by an unauthorized insurer is:
 
a.
$1000 per violation
b.
Up to 1 year in prison $1,000 per violation
c.
Up to 5 years in prison and $5,000
d.
$50,000 per violation
 

 

 3. 

Any agent or insurer with knowledge of an unlicensed insurer doing business in Florida:

a.
is not required to take any action
b.
must contact their local law enforcement
c.
must contact their state law enforcement
d.
must report to Florida Department of Financial Services
 

 

 4. 

Insurance premium rates are set by:

a.
the federal government     
b.
the insurer
c.
the insurance agent
d.
the state
 

 

 5. 

Which of the following is NOT considered Military Installation to which service members are assigned to duty?

a.
barracks
b.
military club or organization
c.
transient housing
d.
family quarters
 

 

 6. 

“Suitability information” means consumer information which is reasonably appropriate to determine the suitability of a recommendation made to the consumer, including the following:

a.
financial objective
b.
liquidity needs
c.
rick tolerance
d.
all of the above
 

 

 7. 

FINRA stands for:
     
a.
Financial Industry Regulating Annuities     
b.
Florida Industry Regulating Authority
c.
Financial Insurance National Regulations Alliance
d.
Financial Industry Regulatory Authority
 

 

 8. 

Any person who violates a cease and desist order of the department or office is subject to:
a.
a penalty of not more than $5,000
b.
a penalty of not more than $10,000
c.
a penalty of not more than $25,000
d.
a penalty of not more than $50,000
 

 

 9. 

The typeface for all printed material prepared or presented specifically to/for seniors must use at least

a.
12 Point Font     
b.
Times New Roman Font
c.
12 Point Font using Times New Roman     
d.
At least 10 Point Font
 



 
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