Chapter 11: Florida statutes, rules, and regulations pertinent to life insurance
The Florida replacement rule
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?
14
An agent delivers a life insurance policy to the proposed insured. The insured makes a decision not to accept the policy. The insured may return the policy for a full refund of premium within how many days?
Free look
An insured, received a new life insurance policy 5 days ago, but after a closer inspection of the policy provisions, decided to return it to the insurer. What provision would allow the insured to return the policy for a full premium refund?
No, it must be a separate document
Can a policy summary be combined with a sales illustration?
8%
If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdue premium and to change interest. What is the maximum allowed interest rate?
If the employee enrolls within a certain time period (open enrollment period)
Under what conditions will proof of insurability NOT be required of an employee wanting to enroll in a group insurance plan?
Notice Regarding Replacement
What document must be provided to the policy owner or applicant during policy replacement?
$100
What is the maximum allowed value of promotional gifts that an agent may give to a prospective insured?
Group insurance
What kind of policy issues certificates of insurance to insureds?
The date the summary was prepared
Which date must be contained in a policy summary?
A term life policy
Which insurance product will be subject to the regulation on life insurance solicitation?
Replacement rule
Which rule would apply if an agent knows an application is going to cash in an old policy and use the funds to purchase new insurance?
Nonforfeiture Values
Which term describes the benefits of a life insurance policy that the policy owner does not automatically relinquish even if the policy lapses?
The insured over the age of 64
Who does the secondary addresses provision protect?
Elderly insureds
Who does the secondary notice provision protect?
