Unit 27 - Florida Laws and Rules Pertinent to Life Insurance
All of the following groups are eligible for group life insurance EXCEPT
social clubs
How will a beneficiary designation naming a former spouse on a preexisting insurance contract be changed by the divorce?
The beneficiary designation is voided by the divorce.
At the time of an insurance sale, which of the following is NOT correct?
A producer only needs to disclose to a prospect the information that the prospect requests.
Which of the following is NOT considered to be an element or replacement?
An existing policy is subjected to a loan of 10% of its value.
To comply with disclosure requirements, producers must deliver which of the following documents to all insurance applicants?
Buyer's guide and policy summary
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?
By requiring separate applications and separate signatures
Which of the following statements applies to the rights of a surviving spouse under a group insurance policy?
Conversion privileges must be provided for dependents.
In which of the following ways is a beneficiary protected from the creditors of the deceased insured?
If the policy is made payable to a named beneficiary, then the creditors can make no claim on the proceeds.
Which of the following applies when an insured wishes to convert industrial insurance policies into an ordinary policy?
It is possible to convert $3,000 or more of industrial insurance.
Which of the following statements is CORRECT about group life insurance?
It is written with a master policy for the benefit of qualified groups.
Which of the following is the CORRECT number of lives required in FL for a group insurance policy?
No minimum
Which of the following must be given to an insured when a replacement occurs?
Notice regarding replacement
Which of the following rules 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
Which of the following is CORRECT about the replacement rule?
The agent must leave a copy of all sales proposals used in the presentation with the applicant.
Which of the following is NOT required when a group insurance policy is canceled?
The policyowner must notify the Department of the cancellation.
During what period is a new life insurance policy owner entitled to review a policy and return it for a full refund?
Within 14 days after delivery of the policy
All of the following are correct insurance agent marketing responsibilities EXCEPT
a presentation may not include references to life insurance policy cost indexes
Suitability information gathered from consumers must be retained for review by the Department
by both agents and insurers for 5 years
All of the following statements are correct about group life insurance EXCEPT
certificate holders need not be notified if the policy expires
All of the following are duties of a replacing insurer EXPECT
insure that all appointed agents take a 2-hour course on replacement annually
All of the following statements regarding the life insurance policy summary are correct EXCEPT
it must illustrate all guaranteed policy dividend values
An insurer must establish a suitability supervision system including all of the following EXCEPT
limiting annuity replacements to agents with 2 or more years' field experience
All of the following information and much more must be gathered from an annuity applicant in order to determine the sustainability of the sale EXCEPT
membership in any civic clubs or organizations by the applicant
For an individual life contract on an insured 64 years of age or older, the insurer must advise the applicant
of their right to designate a secondary addressee to receive a copy of any policy lapse notice
All of the following are correct about policy loan interest rate EXCEPT
there are no restrictions or limitations on policy loan rates