End of Chapter Quiz: Florida Statutes, Rules and Regulations Pertinent to Life Insurance

For a debtor group to qualify for group life insurance the minimum number of participants joining the plan is

100

An agent delivers a life insuracne policy to the proposed insured. The insured my refuse and fget a refund within how many days?

14

The minimum age to purchase life insurance policy in FL is?

15

Regulations for annuity recommendations would apply when a consumer is at least what age?

65

AN insurer neglects to pay a legit claim covered under the terms. This violates?

Consideration

Which of the following includes info about: Persons credit, character, reputation and habits? 1. Agents report 2. Consumer Report 3. Consumer history 4. Insurability report

Consumer report Consumer reports include: a written and oral investigation of consumers credit, character, regulation and habits collected by a reporting agency from employment records , credit reports, and public sources.

Contracts that are prepared by one party and given to another on a Take-it-or-Leave it basis are known as: 1. Aleatory 2. Binding Contracts 3. Contracts of Adhesion 4. Unilateral

Contracts of adhesion Insurance policies are written try the insurer and submitted to the insured on a take or leave it basis, The insured does not have any input to the contract but simply adheres to the contract.

What is true about a Whole Life Policy? 1. Policyowner is entitled to policy loans 2. Cash values are not guaranteed 3. Premium is based on age 4. Death benefit may increase or decrease depending on policy period

Entitled to policy loans. Whole Life Policies offer a level premium based on the issued age, level death benefit, cash value that is scheduled to equal the face amount at the insured's age 100 and living benefits including policy loans.

An agent selling variable annuities must be registered with 1. FINRA 2. DOI 3. MGA 4. SEC

FINRA Because variable annuities are considered to be securities a person must be registered with FINRA (formerly NASD) and hold a securities license.

Which policy component decreases in Decreasing Term Insurance? 1. Dividends 2. Premiums 3. Face Amount 4. Cash Value

Face Amount Decreasing term insurance feature a level premium and a death benefit that decreases each year over the duration of the policy term. Usually purchased for mortgages in event of loss.

At the end of a 5-year Level Premium policy that includes a Renewability and convertibility option, what happens at the end of 5 years? 1. Remain the same for the new term 2. Decrease for the new term 3. Increase each yea for the new term 4. Increase due to attained age

Increase due to attained age

What are the two components of a Universal Policy? 1. Mortality Cost and interest 2. Separate accounts and policy loans 3. Insurance and cash account 4. Insurance and investments

Insurance and Cash account A Universal Policy has 2 components an Insurance and a cash component. The insurance part is always annually renewable term insurance. The cash account accumulates on a tax deffered basis each year and earns either the guaranteed contract rate or the current rate whichever is higher.

A Straight Life Policy has what type of premium? 1. increasing annual premium for the life of the insured 2. A decreasing annually premium for the life 3. Variable annuals premium 4 a level annual premium

Level Premium

All of the following are requirements for insurance illustrations EXCEPT 1. Identify nonguaranteed values 2. Differentiate between guaranteed and projected values 3. Must be part of the contract 4. May only be used as approved

Must be part of the contract. An illustration may not be altered by the agent and must clearly state that it is not part of the contract. It is legal to list nonguaranteed values but they must be specifically labeled as projected not guaranteed values.

During replacement of life insurance, a replacing insurer must:

Obtain a list of all life insurance policies that will be replaced

Which of the following is a risk classification? 1. Excellent 2. Standard 3. Poor 4. Normal

Standard The three risk classifications are : Standard, Substandard, Preferred

Who does the secondary addressee provision protect?

The insured over age 64

Which is true of annuities? 1. Payments grow interest tax deferred 2. Known as accumulation period 3. annuitant makes payments 4. May last the lifetime of the annuitant

May last a lifetime The "annuity period" is the time when then accumulated money is converted into an income stream. Depending on the policy it may last a # of years or a lifetime.