Florida Statutes, Rules, and Regulations Pertinent to Life Insurance

Employee employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds

$50,000

Duties of Replacing Insurer

-A Notice Regarding Replacement signed by both the applicant and the producer, copy bust be left with applicant -obtain list of all existing life insurance/ annuity policies to be replaced including policy numbers and names -leave applicant with original or copy of communications -submit to the replacing insurance company a copy of replacement notice with the application

And 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 Florida, life insurance policies and annuities have a special free look period of how many days?

14

Incontestability Period in Florida

2 years

Required grace period in Florida:

30 days (interest charged not toexceed 8% per year or the number of days elapsing before premium is paid)

Length of Grace Period

31 days

Senior consumer

A person 65 or older. If annuity is purchased jointly buy more than one person, a purchaser is considered a senior Consumer if any of the parties is 65 or older

claim

A request for payment of the benefits provided by an insurance contract.

Representations and Warranties in Florida

All statements made by the policyholder or by the persons insured will be deemed representations and not warranties

ERISA (Employee Retirement Income Security Act)

Defines federal standards for private pension plans

Who does the secondary notice provision protect?

Elderly Insureds

The code of ethics of the Florida Association of insurance and financial advisors

Establishes a broad outline defining appropriate and inappropriate business behavior for life insurance agents. It also establishes the activities of agents as one of public trust

Certificate of Insurance must contain:

Group policy number, description of insurance protection to which the certificate holder is entitled, name of the insured/ beneficiaries/ and dependents, and the rights and conditions

death pending conversion

If an insured dies during the conversion period, before an individual policy has become effective, the death benefit must be payable as a claim under the group policy

Every insurance policy issued in the state of Florida must specify:

Names of the parties to the contract, subject of the insurance, risks insured against, effective date and period of coverage, premium, conditions pertaining to the insurance, and the form number and edition dates of all endorsements attached to the policy

Every insurance policy issued in the state of Florida must specify the following:

Names of the parties to the contract, subject of the insurance, risks insured against, effective date and period of coverage, premium, conditions pertaining to the insurance, the form numbers and edition dates of all endorsements attached to the policy

lapse

Policy termination due to nonpayment of premium

disclosure statement

Provides basic information about the cost and coverage of the insurance being solicited. Must be given to the applicant no longer than the time the application for insurance is signed

Which of the following is among the regulations set forth by the Florida replacement rule?

Providing a written comparison and summary statement

Duties of the replacing insurance company

Require from the producer a list of the applicant's life insurance or annuity contracts to be replaced and a copy of the replacement notice provided to the applicant; and Send each existing insurance company a written communication advising of the proposed replacement within a specified period of time of the date that the application is received in the replacing insurance company's home or regional office. A policy summary or ledger statement containing policy data on the proposed life insurance or annuity must be included.

Florida Replacement Rule

Set forth the requirements and procedures to be followed by insurance companies and agents when a proposal is being made in which a prospective life insurance buyer will be replacing existing insurance contracts with the proposed new insurance

What date must be contained in a policy summary?

The date the summary was prepared

Which of the following dates must be contained in a policy summary?

The date the summary was prepared

What is the purpose of a disclosure statement in life insurance policies?

To explain features and benefits of a proposed policy to the consumer

promulgate

To make public, to put into action

Length of incontestability period

Two years

Prohibited practices that relate specifically to marketing of life insurance products

Using misleading terms, false information and advertising, advertising gifts, and free insurance

suitability

a requirement to determine if an insurance product is appropriate for a customer

Nonforfeiture Values

benefits in a life insurance policy that the policyowner cannot lose

Policy proceeds

in life insurance, the death benefit

Lapse

policy termination due to nonpayment of premium

disclosure

revealed information to help someone make an intelligent and educated decision

Florida Life Insurance Solicitation Law

spells out the information and procedures required of agents and insurers when proposing life insurance to a prospective buyer.