Florida statutes, rules, and regulations

what is the maximum allowed value of promotional gifts that an agent may give to a prospective insured?

$100

if an agent does not notify the insurer of an address change what is the maximum penalty that can be imposed for a one-time offense?

$250

Replacing Insurer duties:

- "notice to applicant regarding replacement of life insurance." - a complete comparative information form containing information regarding the proposed insurance WITHIN 5 WORKING DAYS of the date the application and the regarding replacement were received at insurers home or regional office, or the date the policy is issued, whichever is sooner. - send to the existing insurer a copy of the replacement notices IMMEDIATELY upon receipt. - maintain copies of replacement notice, written communication and a replacement register in their home for AT LEAST 3 YEARS or until conclusion of the next examination by the insurance department, whichever is later.

Insurance Transaction

- solicitation - negotiations - sale (effectuation of a contract of insurance) - advising an individual concerning coverage of claims

Existing insurers must provide policyowners with a policy summary for the existing life insurance within how many days of receiving the written communication and replacement?

10 days

if a policy provides an unconditional refund of at least

14 DAYS, the buyer's guide and policy summary may be provided to the applicant at the time the policy is delivered.

how many days is the free-look period?

14 days

Incontestability period

2 years

if a life insurance policy gives a grace period of more than 51 days, the policy owner must be given the notification at least

21 days before the expiration of the grace period

an agent has been convicted of a crime punishable by a 1-year imprisonment. within how many days must the agent notify the department of insurance?

30 days

if the policy is paid-up or is continued under a paid-up nonforfeiture benefit, the insurer will pay a cash surrender amount if the policy is surrenders within

30 days after the policy anniversary.

How long is the grace period?

31 days

an applicant for a life agent's license may obtain a temporary license for a maximum period of?

6 months - 180 days

the insurer reserves the rights to defer the payment of any cash surrender value for a period of

6 months after demand with surrender of the policy.

If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdue premium and to charge interest. What is the maximum allowed interest rate?

8%

Insurance Contract

Agreement between the insured and insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for a premium

replacement

Any transaction in which a new life policy or annuity is to be purchased, and the producer knows, or should know, that existing contract(s) will be: Lapsed, forfeited, surrendered or terminated Reduced in value Amended with a reduction in benefit or term Reissued with a reduced cash value Subjected to borrowing

Who does the secondary notice provision protect?

Elderly Insureds

both the buyer's guide, and policy summary must be provided to an applicant,

PRIOR to the applicant initial premium payment

statute

a formal written law enacted by legislature; insurance statutes can be found in the state Insurance Code

reciprocity

a mutual interchange of rights and privileges

senior consumer

a person age 65 or older.

inducement

an offer that attempts to influence the other party

subpoena

an order for someone to appear as a witness or submit testimony or evidence

if an insurance company makes a statement that its policies are guaranteed by the existence of the insurance of the insurance guaranty association, what would be considered?

an unfair trade practice

if an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be?

authorized

if an agent advises a policy holder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of

churning

a producer who fails to separate premium monies from his own personal funds is guilty of

commingling

applicants to an insurer must include all of the following EXCEPT: - credit history report - name of the agent - license identification number of the agent - name of the insurer

credit history report

which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

defamation

no insurance policy form can be issued, delivered, or used in this state unless it has been

filed with and approved by the office of insurance regulation.

In insurance transactions, fiduciary responsibility means

handling insurer funds in a trust capacity

foreign insurer

insurance company that is incorporated in another state.

domestic insurer

insurance company that is incorporated in this state. - the company's domicile.

Alien Insurer

insurance company that is incorporated outside the United States.

insurance contracts are agreements between which two parties?

insurer and policy owner

home office

insurer's headquarters, principal place of business

when a policy provides for payment of proceeds in a lump sum upon the death of the insured, the payment

must include interest.

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

mutual

exempt

not subject to an obligation

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

notice regarding replacement.

commision

payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium

in what way can an insurer demonstrate a high standard of ethics?

putting the client's best interest before their own

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of

rebating

any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as?

rebating

domicile

refers to the location where an insurer is incorporated, not necessarily where the insurer conducts business.

What method do insurers use to protect themselves against catastrophic losses?

reinsurance

secondary notice

secondary addressee

an insurance agent x has been found guilty of a felony and has been sentenced to 3 years in prison. what would be the appropriate plan of action?

send a written notification to the department of license

an insurance agent b likes to add coverages to applicants' policies and charge them for such coverages without their knowledge. the agent is guilty of what?

sliding

an agents appointment has been denied? will they receive a refund?

state taxes may be refunded upon a written request.

what insurers are owned by stockholders?

stock insurance companies are owned and controlled by stockholders

if an agent is in the military, what can he not do?

the agent cannot sell an insurance policy to another active military person who is of lower rank.

appointment

the authority given by an insurer to an agent to transact insurance or adjust claims on the insurer's behalf

who examines the books and records of insurance companies in Florida?

the chief financial officer

replacing insurer

the company that issues the new policy

existing insurer

the company whose policy is being replaced.

what is the agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange of a premium?

the insurance contract

Who does the secondary addressee provision protect?

the insured over the age of 64

in accordance with the code of ethics, agents must provide a completed application to

the prospective insured and the insurer

what are the two offices of financial services commission?

thew office of financial regulation and the office of insurance regulation

cease and desist

to stop or discontinue

insolvent

unable to meet financial obligations

what circumstances can an agent's appointment be transferred to another person?

under NO circumstances

Duties of the replacing insurance company

• Require from the producers list of the applicant's life insurance contracts to be replaced. • Send each existing insurance company a written communication advising of proposed replacement within the specified time frame which starts at the time the application is received in the replacing insurers home or admin office.