Chapter 6: FL Status, Rules, and Regulations

An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds

$50,000

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

Notice Regarding Replacement

All advertisements are the responsibility of the

Insurer.

What is the purpose of a disclosure statement in life insurance policies?

To explain features and benefits of a proposed policy to the consumer

What kind of policy issues certificates of insurance to insureds?

Group Insurence

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

An employer offers group life insurance to its employees for the amount of $10,000. Which of the following is true?

The cost of coverage is a deductible expense by the employer.

In order for a debtor group to qualify for group life insurance, what should be the minimum number of participants joining the plan every year?

100

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

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

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

The proceeds may be exempt from any creditor's claims against a beneficiary other than the policy owner.

When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments?

Spendthrift provision

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

When the policy is delivered to the insured

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

A term life policy

During 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

Licensed life insurance agents are expected to be familiar with which of the following laws?

All of the insurance laws and regulations