Chapter 17/4: Florida Life Regulations

Which of the following is best described as using life insurance policy cash values to purchase a new life insurance policy in a deceptive and misleading manner?

Churning is the fraudulent and misleading replacement of life insurance policies with the same insurer. Churning is an unfair and deceptive practice. The correct answer is: Churning

Claims for deceased insureds who fall under the Holocaust Victims Insurance Act must have submitted claims by:

Claims must be submitted by July 1, 2018. The correct answer is: 1-Jul-18

How much time must a life insurance policy be in force before it becomes incontestable?

Every life insurance contract shall provide that the policy shall be incontestable after it has been in force during the lifetime of the insured for a period of 2 years from its date of issue, except for nonpayment of premiums. The correct answer is: 2 years

How much time does someone have to contest a policy if there is misrepresentation?

Life insurance policies may be contested for misrepresentation during the contestability period. Every insurance contract shall provide that the policy shall be incontestable after it has been in force during the lifetime of the insured for a period of 2 years from its date of issue except for nonpayment of premiums. The correct answer is: 2 years

In Florida, how much time does an insured have to return a life insurance policy for a full refund?

Life insurance policies must provide a 14-day free look period. During this period, the policy owner may return the policy for any reason and receive a full refund of premium. The correct answer is: 14 days

How many days after the grace period has expired, may a person pay past due premium for life insurance policies insuring individuals age 64 and older?

The grace period for insureds of life insurance policies age 64 and older is 21 days. The correct answer is: 21 days

The insurer has the option of using an adjustable interest rate in which the maximum rate is based on:

The insurer has the option of using an adjustable interest rate in which the maximum rate is based on Moody's corporate bond index. The correct answer is: Moody's corporate bond index

What is the purpose of life insurance replacement regulations?

The purpose of replacement regulations is: to regulate the activities of insurers and agents with respect to the replacement of existing life insurance; to protect the interests of life insurance policy owners by establishing minimum standards of conduct to be observed in the replacement or proposed replacement of existing life insurance by: assuring that the policy owner receives information with which a decision can be made in his or her own best interests; and reducing the opportunity for misrepresentation and incomplete disclosures. The correct answer is: All of the above

Which of the following is not considered a life insurance replacement transaction?

Using a dividend option is not considered replacing a life insurance policy. The correct answer is: A participating life insurance policy in which the one-year term dividend option is used

In Florida, how much time is the "free look" period on a life insurance policy?

Life insurance and annuity contracts have a 14-day free look period in Florida. The correct answer is: 14 days

Life insurance purchased from a fraternal is considered:

Life insurance purchased from a fraternal is a certificate of membership, not a policy. Fraternals sell insurance to both members and nonmembers. The correct answer is: A certificate of membership

In Florida, what is the maximum percentage rate that may be charged on a fixed rate loan?

Maximum percentage rate that may be charged on a fixed rate loan: 10%. The correct answer is: 10%

What is the maximum policy loan interest rate for life insurance policies in Florida?

The maximum policy loan interest rate for life insurance policies is 10% annual. The correct answer is: 10%

What is the minimum free look period for life insurance policies in Florida?

The minimum free look period for life insurance policies in Florida is 14 days. The correct answer is: 14 days

According to Florida law, which of the following is considered a "family member"?

The phrase "not a family member," with respect to a life agent, means an individual who is not related to the agent as father, mother, son, daughter, brother, sister, grandfather, grandmother, uncle, aunt, first cousin, nephew, niece, husband, wife, father-in-law, mother-in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half-brother, or half-sister. The correct answer is: All of the above

How are the proceeds distributed when an insured and the beneficiary die, but it is unknown who died first?

When the insured and the beneficiary in a policy of life or accident insurance have died and there is insufficient evidence that they died otherwise than simultaneously, the proceeds of the policy shall be distributed as if the insured had survived the beneficiary. This act does not eliminate the insured's need to have the common disaster clause in his life insurance policy, which states that life insurance policy proceeds are paid to the insured's designated beneficiaries if both the insured and the primary beneficiary are killed in the same accident. The correct answer is: Proceeds are distributed as if the insured had survived the beneficiary.

When does Florida require an insurer to provide the "Notice to Applicant Regarding Replacement of Life Insurance" to a prospective client seeking a replacement policy?

Where replacement is or may be involved, the agent will: Present to the applicant, no later than at the time of taking the application, a "Notice to Applicant Regarding Replacement of Life Insurance." The Notice must be signed by the applicant and the agent and left with the applicant. The correct answer is: When the insured makes an application

In Florida, how much time does an insured have to return an annuity for a full refund?

With respect to annuities, the insurer will provide to each prospective purchaser a buyer's guide to annuities and a contract summary as provided in the NAIC Model Annuity and Deposit Fund Regulation and the policy must provide an unconditional refund for a period of at least 14 days. The correct answer is: 14 days