Chapter: 11 Florida Statutes, Rules, and Regulations Pertinent to Life Insurance

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

The policyholder. Any person insured under a group life insurance policy can make to any person, other than the policyholder, an assignment of all or any part of the incidents of ownership conferred on the insured by the policy or by law, including the right to exercise the conversion privilege and the right to name a beneficiary.

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

65 years old. A senior consumer is a person age 65 or older.

What kind of policy issues certificates of insurance to insureds?

Group insurance individuals covered by group life insurance do not receive a policy, but receive a certificate of insurance from the master policy

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

Providing a written comparison and summary statement. The Florida Replacement Rule established that, when replacing life insurance contracts with new contracts, the agent is required to give the applicant a written comparison and summary statement at the request of the policyholder.

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 anytime a new policy is issued that replaces or modifies existing insurance, a replacement form must be submitted to the ceding company

Certificates of coverage are issued to

participants in a group plan. Instead of a policy, the participants under a group plan are issued certificates of insurance as evidence that they have coverage. This certificate normally consists of a laminated plastic card and a booklet summarizing the coverage of the master policy.

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%. The time that may elapse between a premium's due date and its eventual payment is called the grace period. Insurer's may impose interest charges not to exceed 8% per year for the number of days elapsing before the premium is paid.

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

Term life policy. The regulation on life insurance solicitation does not apply to the sale of annuities, credit life and group life insurance, variable life insurance policies, and life insurance policies issued in connection with pension and welfare plans that are subject to ERISA.

Under a group plan, Certificates of Insurance must include all of the following EXCEPT

the name of the writing agent. Certificate of insurance for a group plan requires the policy number, description of insurance protection and the name of the insured. The name of the writing agent is not a requirement.

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

The beneficiary designation will be voided. If a former spouse of the policyowner is designated as the life insurance policy beneficiary, the beneficiary designation will be void at the time the policyowner's marriage is legally dissolved (divorce) or declared invalid by court order if the designation was made prior to the divorce.

Who does the secondary notice provision protect?

Elderly insureds. The secondary notice provision protects elderly insureds, and prevents the policy from lapsing for nonpayment of premium after the grace period without the insurer notifying the policyowner and a designated secondary addressee of the impending lapse in coverage.

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?

The Florida Replacement Rule. The Florida Replacement Rule established the procedures followed when a prospective life insurance buyer replaces an existing insurance contract with new insurance.

If an employee is accepted into a group insurance plan, which status will the employee have?

Certificate holder. In group insurance, plan participants (insureds) do not receive a policy. Instead, they receive certificates of insurance, indicating that they are covered by the policy.

If an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following describes the extent that replacement regulations will be exercised?

Replacement regulations will not apply in this situation. If a new life insurance policy is provided under a group life insurance policy covering employees or members of an association, replacement regulations do not apply.

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

When the policy is delivered to the insured. The free-look provision allows an insured a period of a specified number of days from the delivery date of the policy to look over a new policy and return it for a full premium refund if dissatisfied for any reason.