Florida Statutes Rules and regulations pertinent to life insurance

Rebating or Unlawful Inducement (Unfair Trade/marketing Practice)

*Giving or offering something of value *to induce the purchase of insurance

Regulation does not apply to the sale of these

Annuities. Credit life insurance. Group life insurance. Variable life insurance. And life insurance policy is issued in connection with pension and welfare plans that are subject to ERISA

Buyers guide

Document that contains generic information about life insurance policies. Must be in compliance with the Buyers Guide adopted by NAIC

Group life conversion privilege

Employee terminates membership in insured group with right to convert to individual life policy without proving insurability at a standard rate based on attained age. Within 30 days of terminating

Replacement duties of replacing insurers

Get list of applicants life insurance contracts to be replaced. Send applicant completed comparative information form within five working days. Send copy of replacement notice to existing insurance immediately. Keep copies of replacement notices statements any sales material an application for at least three years

Group life required provisions

Grace period 31 days. Incontestability Period Two years. Representations. Entire contract. Evidence of Individual insurability. Mistake meant of age. Payment of benefits. Certificate of insurance to individual insurance. Assignment power of PO, no approval from the insurer

disclosure statement

Help applicant make informed decision; must be given to every applicant, no later than the time of application is signed; provides basic information about the cost and coverage of the insurance being solicited.

Policy loans

Maximum interest rate on a fixed rate loan is 10% annually. Adjustable loans interest rates may vary based on publish monthly average.

Advertising

Must be accurate and not Misrepresent the facts. Rules apply to any insurance advertisement intended for. Presentation. Distribution. Dissemination. Or other when used or made directly or indirectly by or on behalf of of the insurance company

Replacement definition and purpose

Must be in clients best interest and serve their needs. New policy replaces existing policy that is Terminated re-issued or converted.

Competent parties

Must be of legal age, in Florida age 15. Must not be under influence of drugs or alcohol when entering Contract

Replacement In life insurance or annuity

Old policy: 1. Terminated. 2. Re-issued with any reduction in cash value. 3. Converted to reduced nonforfeiture option. 4. Amended to reduce benefits or term. Used in a financed purchase.

Separate document

Policy summary as it relates with sales illustration

Nonforfeiture options

Privileges allowed under terms of a life insurance contract after cash values have been created. Guarantees benefit cannot be forfeited by PO. Reduced paid up option becomes effective unless otherwise specified by PO. Payment due within 60 days

Replacing insurers must

Require "Notice to Applicant Regarding Replacement of Life Insurance" and "Sales Proposals".

Replacement Duties of existing insurers

Send policy summary to policy owner within 10 days of receiving written communication every placement. Upon request. Keep all replacement notifications for either three years or the examination by the department whichever is later

Florida Replacement rule

Sets 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 contacts with the proposed new insurance

Florida replacement rule

Sets forth the requirements and procedures when proposing replacement life insurance. Requires agent to give applicant a written comparison and summary statement at the request of the policyholder.

Protection of beneficiaries from creditors

Spendthrift clause

Prohibited practices

Using misleading terms. False information and advertising. Advertising gifts. Free insurance. Value of gifts limited to $25.

Group policy eligible groups

Employee/employer groups, debtor groups, labor unions, credit unions, trustee groups, associations

Code of Ethics of the Florida Association of Insurance and a Financial Advisers

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.

Coverage for dependents

Group life policy may be exposed tended to ensure employee spouse independent children. amount of insurance may not exceed amount for the insured employee.

Purpose of life insurance solicitation regulation

Help buyers: 1. select the most appropriate policy. 2. Understand the basic features of the policy. Three. Evaluate the relative costs of similar plans of life insurance

INS Advertising requirements

INS company must establish and maintain a system of control over the content. Form. And message. Of dissemination of all advertising at its policies. INS is responsible for all its advertisements. Regardless.

Secondary addressee Grace Period

If more than 51 days, notice must be given to policy owner and secondary contact at least 21 days before expiration of Grace period.

Replacement rule exemptions

Industrial life. Credit life. Good life and annuity's. Variable life in a Knooty's. Converting policies with the same insurer. Nine convertible and not a renewable term policy that expires in no more than five years.

Life insurance cost index statement

Must be printed close to the life insurance cost index as follows. "an explanation of the intended use of these indexes is provided in the life insurance buyers guide"

Notice regarding replacement

Must be signed by both applicant and producer. Happy must be left with the applicant

List of existing life INS/annuity policies

Must include policy numbers and names of companies being replaced

Duties of replacing producer

Notice regarding replacement. Obtain list of existing life INS or annuity policies to be replaced including policy. Leave applicant with original/copy of communications used in presentation. Submit replacing INS company copy of replacement notice with application.

Replacement duties of agents

Notice to applicant regarding replacement of life insurance signed by applicant and a copy left with applicant. Leave original or copy of all sales proposals. Submit to replacing ensure a copy of NRR and copy of all sales proposals

Items included in Policy Summary

Prominently placed title. Producer Name and address. Issuing INS co. Full name and address. Generic name of basic Policy & each rider. And. All amounts for policy and benefits. Statement That dividends are not guaranteed. Date policy summary is prepared. Life insurance cost indexes statement.

Spendthrift clause

Protects proceeds while being held by the insurer from the claims of the beneficiaries creditors; does not apply to lump sum payments

Fraternal benefit society's

Regulation on life insurance solicitation applies even to these nonprofits

Florida life insurance solicitation law

Spells out the infirmation and procedures required of agents and insurers when proposing life insurance to a prospective buyer

Florida replacement rule applies

When agent proposes life insurance they should know if the purchase of such policy will replace an existing life insurance policy

Group policy payment of proceeds

Within 30 days after receipt of proof of death

Policy summary

Written statement that describes the elements of the INS policy. Includes features, conditions and restrictions of the policy being applied for.

defamation

act of harming or ruining another's reputation

ERISA. Employee Retirement Income Security Act of 1974.

est. standards for company retirement plans

Annuity suitability

Consider clients age, income, financial status, investment objectives etc. Special rules for senior consumers as follows. Age 65+, reasonable recommendations at all times. No surrender or deferred sales charges on a Knooty with drawls. Keep records of transactions for five years.

Secondary addressee

Coverage for elderly insurance, 64+, cannot laps for nonpayment of premium after expiration of grace. Without notification of specific Secondary contact after policy has been enforced for one year