Chapter 6

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

$50,000

The minimum age for purchasing life insurance policy in Florida is

15

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. When a group policy terminates, every individual insured under the policy at the date of such termination who has been so insured for at least 5 years prior to such termination date will be entitled to have issued to him by the insurer an individual policy of life insurance.

What kind of policy does NOT typically require proof of insurability?

Group insurance

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

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 tile would apply if an agent knows an applicant is going to cash in an old policy and use funds to purchase a new insurance?

Replacement rule

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

The date the summary was prepared

All advertisements are the responsibility of the

insurer

Which of the following is true regarding the spendthrift clause in life insurance policies?

It can protect the policy proceeds from creditors of the beneficiary.

Which statement is NOT true regarding a policy summary?

It nust be conbuned with a sales illustration.

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

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?

Tje Florida Replacmenrt Rule

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.

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%