unit 27 Fl Laws and Rules Pertinent to Life Insurance

which of the following statements is CORRECT about group life insurance ? a. it is written with a master policy for the benefit of qualified groups b. a group member is prohibited from assigning incidents of Ownership c. group life rates are generally higher than those for individual policies

a. it is written with a master policy for the benefit of qualified groups

which of the following must be given to an insured when a replacement occurs? a. notice regarding replacement b. valued policy provision c. termination notice d. notice regarding insurer solvency

a. notice regarding replacement

in which of the following ways is a beneficiary protected from the creditors of the deceased insured? a. the proceeds of a policy can always be claimed by the deceased insured's creditors b. when the policy is made payable to the estate, the proceeds are protected from the creditors c. if the policy is made payable to a named beneficiary, then the creditors can make no claim on the proceeds d. the cash surrender value of a life insurance policy can be attached by an ordinary creditor

c. if the policy is made payable to a named beneficiary, then the creditors can make no claim on the proceeds

how will a beneficiary designation naming a former spouse on a preexisting insurance contract be changed by the divorce? a. the beneficiary designation is voided by the divorce b. there will be no change allowed under FL law c. the beneficiary change requires a court decree d. insurer policy rules will determine the result

a. the beneficiary designation is voided by the divorce

to comply with disclosure requirements, producers must deliver which of the following documents to all insurance applicants? a.policy guidelines and proposal form b. policy summary and policy receipt c. buyer's guide and policy summary d. proposal form and buyer's guide

c. buyer's guide and policy summary

all of the following information and much more must be gathered from an annuity applicant in order to determine the suitability of the sale EXCEPT a. general financial information, including income, assets, and net worth of the applicant b. tax status of the applicant c. personal info, including age and sex of the annuitants and dependents d. membership in any civic clubs or organizations by the applicant

d. membership in any civic clubs or organizations by the applicant

which of the following is the correct number of lives required if FL for a group insurance policy? a. 3 b.8 c.10 d. no minimum

d. no minimum

all of the following groups are eligible for group life insurance EXCEPT a. employer and employee groups b. labor unions c. trustee groups d. social clubs

d. social clubs

at the time of an insurance sale, which of the following is not correct? a. personal info about the client should never be released without prior approval from the client b. a producer only needs to disclose to a prospect the information that the prospect requests c. precision and accuracy in completing the application are in the best interest of both the insurer and the prospective insured d. a producer has ethical responsibilities to the client and insurer

b. a producer only needs to disclose to a prospect the information that the prospect requests

all of the following statements regarding the life insurance policy summary are correct EXCEPT a. it must illustrate all guaranteed cash surrender values b. it must illustrate all guaranteed policy dividends values c. it must present the generic name of the policy as well as the company's name for it d. it must be given to each new policy owner no later than at policy delivery

b. it must illustrate all guaranteed policy dividends values

for an individual life contract on an insured 64 years of age or older, the insurer must advise the applicant a. of their right to a large-print copy of the policy if required b. of their right to designate a secondary addressee to receive a copy of any policy lapse notice c.of an extended free-look period d. of their right to name a trustee to exercise ownership rights under the policy

b. of their right to designate a secondary addressee to receive a copy of any policy lapse notice

which of the following actions accurately portrays the limit FL insurance regulations set for the combining of advertising for insurance policies with an association membership? a. by forbidding these two to be advertised together b. by requiring the insurance solicitation to come at least 30 days after the assoc. membership c. by requiring separate applications and separate signatures d. by requiring a signed a statement of understanding by the applicant

c. by requiring separate applications and separate signatures

suitability information gathered from consumers must be retained fro review by the Department a. for 3 years by agents only b. for 4 years by insurers only c. by neither agents or insurers d. by both agents and insurers for 5 years

d. by both agents and insurers for 5 years

all of the following are correct about the policy loan interest rate EXCEPT a. an adjustable rate of interest may be charged b. an insurance company may charge affixed rate of up to 10% c. adjustable rates are based on published index d. there are not restrictions or limitations on policy loans

d. there are not restrictions or limitations on policy loans

an insurer must establish a suitability supervision system including all of the following EXCEPT a. reasonable procedures to inform agents of suitability requirements b. product-specific training for agents explaining all material annuity features c. limiting annuity replacements to agents with 2 or more years field experience d. reasonable procedures to detect unsuitable recommendations

c. limiting annuity replacements to agents with 2 or more years field experience

which of the following rules would apply if an agent knows an applicant is going to cash in an old policy and used the funds to purchase new insurance? a. conversion rule b. disclosure rule c. replacement rule d. reinstatement rule

c. replacement rule

which of the following is CORRECT about the replacement rule? a. the replacement rule only applies to health insurance. b. the agent has 90 days from the effective date to deliver a buyers guide c. the agent must leave a copy of all sales proposals used in the presentation with the applicant d. up to 30 days is allowed for full refund of premium

c. the agent must leave a copy of all sales proposals used in the presentation with the applicant

which of the following statements applies to the rights of a surviving spouse under a group insurance policy? a. coverage continues at the same rate and premium b. conversion privileges must be provided for dependents c. conversion rights extend to the spouse but not the children d. conversion rights of the surviving spouse are less than those the deceased employee possessed

b. conversion privileges must be provided for dependents

which of the following applies when an insured wishes to convert industrial insurance policies into an ordinary policy? a. this is not permitted under FL law. b. it is possible to convert $3k or more of industrial insurance c. any such conversion requires a physical examination d. the multiple policies can only be reissued as one industrial policy

b. it is possible to convert $3k or more of industrial insurance

which of the following is not required when a group insurance policy is canceled? a. the insurance company must notify the group b. the policyowner must notify the department of the cancellation c. the insurance company must notify the group members (but may request) this to be done by the policyowner) d. the policyowner must notify the group members

b. the policyowner must notify the department of the cancellation

during what period is a new life insurance policy owner entitled to renew a policy and return it for a full refund? a. during the 14 days prior to its effective date b. within 14 days after delivery of the policy c. within 30 days of purchase d. after receipt, but only with the prior approval of the agent

b. within 14 days after delivery of the policy

which of the following is not considered to be an element of replacement? a. the agent knows a new policy will take the place of an existing policy b.an existing policy is subjected to a loan of 10% of its value c. an existing policy is allowed to lapse d. an existing policy is reissued with a reduced cash value

b.an existing policy is subjected to a loan of 10% of its value

all of the following are correct insurance agent marketing responsibilities EXCEPT a. an agent must inform a prospect, prior to the presentation, that she is a life insurance agent and provide the name of her insurer b. any reference to policy dividends must include a statement that such dividends are not guaranteed c. any presentation comparing two or more life policies must recognize the time value of money using interest adjustments d. a presentation may not include references to life insurance policy cost indexes

d. a presentation may not include references to life insurance policy cost indexes

all of the following are duties of a replacing insurer EXCEPT a. maintain copies of every Notice Regarding Replacement, all sales proposals, and a register cross-indexed by replacing agent and existing insurer for 3 years b. immediately send a copy of the Notice Regarding Replacement to the existing insurer c. require a statement, signed by any replacing agent, acknowledging such replacement d.insure that all appointed agents take a 2-hour course on replacement annually

d.insure that all appointed agents take a 2-hour course on replacement annually