Life License Qualification Program (LLQP) Practice Exam

Which professional organization has its code of ethics adopted into Florida law?

1. Financial Industry Regulatory Agency (FINRA)

2. National Association of Insurance Commissioners (NAIC)

3. National Association of Insurance and Financial Advisors (NAIFA)

4. The American College of Life Insurance

The correct answer is: National Association of Insurance and Financial Advisors (NAIFA)

The National Association of Insurance and Financial Advisors (NAIFA) has its code of ethics adopted into Florida law, making it a significant entity within the insurance and financial advisory industry in that state. NAIFA's code serves as a benchmark for ethical standards within the profession, and its legal adoption highlights the importance of maintaining professionalism and integrity among insurance and financial advisors. This adoption indicates that NAIFA's principles are recognized as providing guidelines that not only promote ethical behavior but also enhance consumer protection within the industry. In contrast, while the other organizations mentioned play vital roles in the regulation and guidance of financial practices and insurance, they do not have their specific codes of ethics formally integrated into Florida law. The Financial Industry Regulatory Agency (FINRA) primarily oversees brokerage firms and their employees, while the National Association of Insurance Commissioners (NAIC) focuses on standardizing insurance regulations across states. The American College of Life Insurance provides education and training but is not directly linked to a state law regarding ethics in the same capacity as NAIFA.