Which unfair trade practice involves making a false statement on an insurance application?
What is an example of rebating?
An example of rebating is when the prospective insurance buyer receives a refund of all or part of the commission for the insurance sale. Rebates can be made in the form of cash, gifts, services, payment of premiums, employment, or almost any other thing of value.
Which unfair trade practice involves an agent telling a prospective client that a policy dividends are guaranteed?
Which Unfair Trade Practice involves an agent telling a prospective client that a policy’s dividends are guaranteed? The correct answer is “Misrepresentation”. An agent who tells a client that dividends are guaranteed may be guilty of misrepresentation.
What is Florida definition of life insurance replacement?
What is Florida’s definition of Life insurance replacement? A transaction in which a new policy is bought and an old policy is terminated. S takes out a health insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions.
What is the primary factor that determines the benefits paid?
What is the primary factor that determines the benefits paid under a disability income policy? Wages. (The major factor in determining the benefit amount paid under a disability income policy is wages.)
How can an agent in charge have more than one location?
How can an agent-in-charge have more than one location? Multiple locations are allowed as long as the agent-in-charge is present when insurance activity occurs. … Making a fraudulent statement on an insurance application would be considered an act of misrepresentation.
Is rebating unethical?
Another practice that is unethical — and which is illegal in most states — is rebating. While the giving of gifts to customers takes place in many industries, this practice is generally forbidden in the insurance business.
What is unlawful rebating?
Rebating — returning a portion of the premium or the agent’s/broker’s commission on the premium to the insured or other inducements to place business with a specific insurer. Rebating is illegal in the majority of states. Insurers must use filed rate credits or have supporting methodology.
What states allow insurance rebating?
Only two states within the United States permit rebating (Florida and California); however, they are closely scrutinized for any wrongdoing. Rebating occurs when any part of the commission or anything else of value is given to the insured as an inducement to buy a policy.
What is the required minimum percentage of employee participation for a noncontributory?
Typically, noncontributory plans require 100% employee participation; contributory plans usually require approximately 75% participation. (However, under Florida law there is no specific minimum percentage participation for employees covered by employee group health insurance.)
What is the maximum value of an item An insurer may gift a prospective insured as an advertisement?
$25 per gift
Which type of insurance company allows their policyowners to elect a governing body?
mutual insurance companies
What is the minimum free look period for life insurance policies in Florida?
What is Florida Employee Health Access Act requirements?
The Florida Health Care Access Act allows small businesses to provide group health insurance coverage for its employees on a guarantee-issue basis regardless of health circumstances, preexisting conditions, or claims history.