State RegulationsFL specificDifficulty 2/5
Which of the following agent statements is a misrepresentation under Florida law?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Fla. Stat. 626.9541 (Chapter 626, Florida Statutes), misrepresenting the dividends or financial terms of a policy - including telling a buyer that uncertain dividends are guaranteed - is an unfair trade practice. Only statements that are false as to the policy's terms, benefits, or advantages qualify; accurate descriptions of cash value, level premium, or the insurer's licensure are truthful and lawful.
Why the other options are wrong
- A) The statement is true - the policy really does build cash value - so no misrepresentation occurs.
- B) Accurately describing a level premium is a truthful statement about the contract's terms.
- C) Stating accurately that the insurer is authorized in Florida is truthful and expected of agents.
Memory hook
Guarantee what is not guaranteed = misrepresentation.