Chapter 11
All advertisements are the responsibility of the
insurer
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
Certificates of coverage are issued to
participants in a group plan
Regulations for annuity recommendations would apply when a consumer is at least what age?
65 years old
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 is the maximum allowed value of promotional gifts that an agent may give to a prospective insured?
$100
An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds
$50,000
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
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
Who does the secondary notice provision protect?
Elderly Insureds
Which of the following dates must be contained in a policy summary?
The date the summary was prepared
What kind of policy does NOT typically require proof of insurability?
Group insurance
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.
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%
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%
Licensed life insurance agents are expected to be familiar with which of the following laws?
All of the insurance laws and regulations
Who does the secondary addressee provision protect?
The insured over the age of 64
If an employee is accepted into a group insurance plan, which status will the employee have?
Certificate holder
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 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
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.
Under a group plan, Certificates of Insurance must include all of the following EXCEPT
The name of the writing agent
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
When does a free-look period begin on a life insurance policy?
When the policy is delivered to the insured
What kind of policy issues certificates of insurance to insureds?
Group insurance
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
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
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.
Which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?
Nonforfeiture values
Which of the following documents must be provided to the policyowner or applicant during policy replacement?
Notice Regarding Replacement
Which of the following is among the regulations set forth by the Florida Replacement Rule?
Providing a written comparison and summary statement