Life and Health Chapter 11

Existing insurer

The company whose policy is being replaced

Under a group plan, the certificate of insurance must include all the following except

The name of the writing agent.

Duties of the replacing producer

-Present to the applicant a Notice Regarding Replacement that is signed by both the applicant and the producer. A copy must be left with the applicant. -Obtain a list of all existing life insurance and/or annuity policies to be replaced including policy numbers and the names of all companies being replaced. -Leave the applicant with the original or a copy of written or printed communications used for presentation to the applicant. -Submit to the replacing insurance company a copy of the replacement notice with the application.

Major Florida insurance regulations

1. The Florida Life Insurance Solicitation Law- explains information and procedures required of agents and insurers when proposing life insurance to a prospective buyer; 2. The Florida Replacement Rule- sets forth the requirements and procedures to be followed by insurance companies and agents when a proposal is being made in which a life insurance buyer will be replacing an existing insurance contract. 3. The Code of Ethics of the Florida Association of Insurance and Financial Advisers- establishes a broad outline defining appropriate and inappropriate business behavior for life insurance agents. It also establishes the activities of agents as one of public trust

Existing insurers must provide policy owners with a policy summary for the existing life insurance within how many days of receiving the written communication and replacement if requested.

10 days

An annuity contract is issued to a senior citizen consumer over the age of 65. what is the maximum surrender charge for withdrawal of money allowed on this annuity?

10%

How long is free look period on life insurance?

14 days, once the policy is delivered

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

65

The secondary notice (or secondary addressee)

Protects elderly insureds. Coverage for persons age 64 and older that has been in force for at least 1 year cannot lapse for nonpayment of premium after the expiration of the grace period without the insurer notifying the policy owner and a specified secondary addressee

How will a life insurance beneficiary designation naming a spouse be changed after divorce?

The beneficiary designation will be voided.

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

The date the summary was prepared.

Interest rate during grace period

The insurer, however, may impose an interest charge not to exceed 8% per year for the number of days elapsing before the premium is paid.

A person ensured under a group life insurance policy can make an assignment of all or part of the incidents of ownership conferred on the insured by the policy or by law to any of the following except

The policy holder

If a life insurer holds the proceeds of any policy it issues, which of the following is true?t

The proceeds may be exempt from any creditors claims against a beneficiary other than the policy owner

Group life insurance features

- Usually written as annually renewable term insurance. - The cost of coverage paid by the employer in excess of $50,000 is taxed to the employee. - Grace period — 31 days must be allowed for the payment of every premium after the first, subject to an interest charge

Which of the following life insurance products is subject to the regulation on life insurance solicitation?

A term life policy

Whom does the secondary addressee provision protect?

An insured over the age of 64

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?

Florida Replacement Rule

How long must insurers maintain records of the information collected from senior citizens and other information used in making recommendations that were the basis for insurance transactions?

For 5 years after the insurance transaction was completed by the insurer

Advertising gifts

For the purpose of advertising, a licensed insurer or its agents may not give to insureds or prospective insureds any articles of value over $100

Replacing insurer

The company that issues the new policy

When a group life policy terminates, every individual under the policy will be entitled to an individual policy if the insured has been insured by the group policy for at least how many years prior to termination?

5 years

If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdo premium and charge interest. What is the maximum allowed interest rate?

8%

Grace period length

In the state of Florida, a required grace period is 30 days.

During a 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

Florida Replacement Rule

Sets forth the requirements and procedures to be followed by insurance companies and agents when making such a proposal. The replacement of contract of life insurance with a new contract requires the agent to give the applicant a written comparison and summary statement at the request of the policyholder