Chapter 6 Quiz

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

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

Licensed life insurance agents are expected to be familiar with which of the following laws?

All of the insurance laws and regulations

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

In terms of parties to a contract, which of the following does NOT describe a competent party?

The person must have at least completed secondary education.

When does a free-look period begin on a life insurance policy?

When the policy is delivered to the insured

All of the following information about a customer must be used to determine annuity suitability EXCEPT

beneficiary's age

Who does the secondary notice provision protect?

elderly insureds

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

group insurance

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 of the following documents must be provided to the policyowner or applicant during policy replacement?

notice regarding replacement

Certificates of coverage are issued to

participants in a group plan

The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the

spendthrift clause

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%

All advertisements are the responsibility of the

Insurer

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 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

Which of the following is among the regulations set forth by the Florida Replacement Rule?

providing a written comparison and summary statement

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 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%

Who does the secondary addressee provision protect?

the insured over the age of 64