Chapter 11: Florida Statutes, Rules, and Regulations Pertinent to Life Insurance
What kind of policy issues certificates of insurance to insureds
Group insurance
Under what conditions will proof of insurability NOT be required of an employee wanting to enroll in a group insurance plan
If the employee enrolls within a certain time period
Which of the following insurance products will be subject to the regulation on life insurance solicitation
A term life policy
Licensed life insurance agents are expected to be familiar with which of the following laws
All of the insurance laws and regulations
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 transaction is completed by the insurer
What kind of policy does NOT typically require proof of insurability
Group insurance
Certificates of coverage are issued to
Participants in a group plan
Who does the secondary addressee provision protect
The insured over the age of 64.
In order for a debtor to qualify for group life insurance, what should be the minimum number of participants joining the plan every year
100
Which of the following insurance products will be subjected to the regulation on life insurance solicitaiton
A term life policy
Which of the following is among the regulations set forth by the Florida Replacement Rule
Providing a written comparison and summary statement
How will a life insurance beneficiary designation naming a spouse be changed by divorce
The beneficiary designation will be voided
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
What is the purpose of a disclosure statement in life insurance policies
To explain features and benefits of a proposed policy to the consumer
Which of the following documents must be provided to the policyowner or applicant during policy replacement
Notice Regarding Replacement
What is the maximum allowed value of promotional gifts that an agent may give to a prospective insured
$100
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
Who does the secondary notice provision protect
Elderly insureds
Under a group plan, Certificates of Insurance must include all of the following EXCEPT
The name of the writing agent
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
Which statement is NOT true regarding a policy summary
It must be combined with a sales illustration
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
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
All advertisements are the responsibility of the
insurer
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
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
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
All of the following information about a customer must be used in determining annuity suitability EXCEPT
Beneficiary's age
Which statement is NOT true regarding the policy summary
It must be combined with a sales illustration
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
If 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%
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%
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
Certificates of coveraged are issued to
Participants in a group plan
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%
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
When replacing life insurance, the duties of the replacing insurance company include all of the following EXCEPT
Maintaining a copy of the Notice Regarding Replacement and all sales proposals used for at least 5 years
An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds
$50,000
Regulations for annuity recommendations would apply when a consumer is at least what age
65 years old
Which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses
Nonforfeiture values
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
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
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
When does a free-look period begin on a life insurance policy
When the policy is delivered to the insured
If an employee is accepted into a group insurance plan, which status will the employee have
Certificate holder
Which of the following dates must be contained in a policy summary
The date the summary was prepared
