Chapter Six Quiz
When does the free-look period begin on a life insurance policy?
when the policy is delivered to the insured
A customer with an existing life insurance contract is considering exchanging it for a newer contract. What Florida Insurance regulation should the customer's insurance agent consult?
The Florida Replacement Rule
What is the maximum allowed value of promotional gifts that an agent may give to a prospective insured?
$100
Regulations for annuity recommendations would apply when a consumer is at least what age?
65 years old
Which of the following documents must be provided to the policyowner or applicant during policy replacement?
Notice Regarding Replacement
Which of the following Insurance products will be subject to the regulation on life insurance solicitation?
a term life policy
All of the following information about a customer must be used in determining annuity suitability:
beneficiary's age
A person insured under a group life insurance policy can make an assignment of all or any part of the incidents of ownership conferred on the insured by the policy or by law, to any of the following:
beneficiary, lender, family member
In life policies issued in this state, insurers are permitted to charge interest during the policy grace period for the number of days elapsing before the premium is paid. What is the maximum annual interest rate?
8%
An insured receives a new life insurance policy 5 days ago, but after a closer inspection of the policy Provisions, decided to return it to the insurer. What provision would allow the insurer to return the policy for a full premium refund?
free look
Which statement is NOT true regarding a policy summary?
it must be combined with a sales illustration
What kind of policy does not typically require proof of insurability?
group insurance
Which of the following is true regarding the spendthrift clause in life insurance policies?
it can protect the policy proceeds from creditors of the beneficiary
Certificates of coverage are issued to:
participants in a group plan
Can a group that is formed for the sole purpose of obtaining Group Insurance qualify for group coverage?
no, the group must be formed for a purpose other than obtaining group insurance
Which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?
nonforfeiture values
How will a life insurance beneficiary designation naming a spouse be changed by divorce?
the beneficiary designation will be voided
When a group policy terminates, every individual insured under the policy will be entitled to have an individual policy if the insured has been insured by the group policy for at least how many years prior to policy termination?
5 years
Who does the secondary addressee provision protect?
the insured over the age of 64
If an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following describes the extent that replacement regulations will be exercised?
replacement regulations will not apply in this situation
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?
replacement rule
When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments?
spendthrift provision
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
the producer must provide the applicant with a Notice Regarding Replacement
An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds:
$50,000
An agent delivers a life insurance policy to the proposed insured. The insured makes a decision not to accept the policy. The insured may return the policy for a full refund of premium within how many days?
14
An annuity contract is issued to a senior consumer over age 65. What is the maximum surrender charge for a withdrawal of money allowed on this annuity?
10%
In order for a debtor group to qualify for group life insurance, what should be the minimum number of participants joining the plan every year?
100
All advertisements are the responsibility of the:
insurer
If an employee is accepted into a group insurance plan, which status will the employee have?
certificate holder
An employer offers group life insurance to its employees for the amount of $10,000. Which of the following is true?
the cost of coverage is a deductible expense by the employer
