Life Insurance Study Guide
Who does the secondary notice provision protect?
Elderly insureds
All advertisements are the responsibility of the
Insurer
Who does the secondary addressee provision protect?
The insured over the age of 64
Under a group plan, certificates of insurance must include all of the following EXCEPT
The name of the writing agent
What is the maximum allowed value of promotional gifts that an agent may give to a prospective insured?
$100
A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?
60
Which statement is NOT true regarding a policy summary?
It must be combined with a sales illustration
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 of the following documents must be provided to the policyowner or applicant during policy replacement?
Notice Regarding Replacement
If an employer decides to change it's 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
A customer with an existing life insurance contract is considering exchanging it for a newer contract. What Florida insurance regulation should customer's insurance agent consult?
The Florida Replacement Rule
Which of the following dates must be contained in a policy summary?
The date the summary was prepared
If a life insurer holds the proceeds of any policy it issues, which of the following is true?
The proceeds may be exempt from any creditor's claims against a beneficiary other than the policy owner
What is the purpose of a disclosure statement in life insurance policies?
To explain features and benefits of a proposed policy to the consumer
When a group policy terminates, every individual insured under the policy will be entitiled 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
An insured received 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 insured to return the policy for a full premium refund?
Free look
What kind of policy does NOT typically require proof of insurability?
Group insurance
When replacing life insurance, the duties of the replacing insurance company include all of the followinf EXCEPT
Maintaining a copy of the Notice Regarding Replacement and all sales proposals used for at least 5 years
Certificates of coverage are issued to
Participants in a group plan
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
If an employee is accepted into a group insurance plan, which status will the employee have?
Certificate holder
Which of the following insurance products will be subject to the regulation on life insurance solicitation?
A term life policy
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
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 EXCEPT
The policyholder
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%
When does the free-look period begin on a life insurance policy?
When the policy is delivered to the insured
How long must insurers maintain records of the information collected from senior consumers and other information used in making recommendations that were the basis for insurance transactions?
For 5 years after the insurance transactions is completed by the insurer
During replacement of life insurance , a replacing insurer must do which of the following?
Obtain a list of all life insurance policies that will be replaced
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