Florida regulations for ALL LINES Questions and Answers

Florida regulations for ALL LINES Questions and Answers

Are dividends guaranteed? {{Correct Ans- NO

What does the term insurance transaction mean? {{Correct Ans- -solicitation

-negotiations

-sale (of insurance)

-advising an individual on coverage/claims

Agreement between a Policyowner & insurer. where insurer agrees to idenminfy the insured for loss caused by specified event {{Correct Ans- Insurance contract

Company or organization that issues a specific policy of insurance {{Correct Ans- Insurer (Principal)

What must an insurance company obtain before transacting insurance within a state {{Correct Ans- certificate of authority

What does a companies domicile refer to? {{Correct Ans- the location where an insurer is incorporated, not necessarily where an insurer conducts business.

(state where it was formed)

A company chartered in Puerto Rico would be ______ insurer in the US {{Correct Ans- Foreign bc the us owns Puerto Rico

Stock Companies {{Correct Ans- owned by stockholders, who share the profits/losses

Officers are elected by stockholders to manage stock insurance companies

NONPARTICIPATING POLICY: does not pay dividends to policy owners... taxable dividends are paid to stockholders

Mutual Companies {{Correct Ans- Owned by the policy owners

participating policies.

-policy owners are entitled to dividends (NOT TAXABLE)

Fraternal Benefit Societies {{Correct Ans- formed to provide insurance benefits for members of affiliated lodge, religious org, or fraternal organization.

only sell to their members & considered charitable institutions, NOT INSURERS. (not subject to the regulations that insurers are)

Insurers must maintain what before transacting business in the state {{Correct Ans- certificate of authority

Most states have laws the prohibit unauthorized insurers from conducting business in a state, except through... {{Correct Ans- licensed excess & surplus lines brokers.