Florida Statutes, Rules, and Regulations Pertinent to Life Insurance
Employee employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds
$50,000
Duties of Replacing Insurer
-A Notice Regarding Replacement signed by both the applicant and the producer, copy bust be left with applicant -obtain list of all existing life insurance/ annuity policies to be replaced including policy numbers and names -leave applicant with original or copy of communications -submit to the replacing insurance company a copy of replacement notice with the application
And annuity contract is issued to a senior consumer over age 65, what is the maximum Surrender charge for a withdrawal of money allowed on this annuity?
10%
In Florida, life insurance policies and annuities have a special free look period of how many days?
14
Incontestability Period in Florida
2 years
Required grace period in Florida:
30 days (interest charged not toexceed 8% per year or the number of days elapsing before premium is paid)
Length of Grace Period
31 days
Senior consumer
A person 65 or older. If annuity is purchased jointly buy more than one person, a purchaser is considered a senior Consumer if any of the parties is 65 or older
claim
A request for payment of the benefits provided by an insurance contract.
Representations and Warranties in Florida
All statements made by the policyholder or by the persons insured will be deemed representations and not warranties
ERISA (Employee Retirement Income Security Act)
Defines federal standards for private pension plans
Who does the secondary notice provision protect?
Elderly Insureds
The code of ethics of the Florida Association of insurance and financial advisors
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
Certificate of Insurance must contain:
Group policy number, description of insurance protection to which the certificate holder is entitled, name of the insured/ beneficiaries/ and dependents, and the rights and conditions
death pending conversion
If an insured dies during the conversion period, before an individual policy has become effective, the death benefit must be payable as a claim under the group policy
Every insurance policy issued in the state of Florida must specify:
Names of the parties to the contract, subject of the insurance, risks insured against, effective date and period of coverage, premium, conditions pertaining to the insurance, and the form number and edition dates of all endorsements attached to the policy
Every insurance policy issued in the state of Florida must specify the following:
Names of the parties to the contract, subject of the insurance, risks insured against, effective date and period of coverage, premium, conditions pertaining to the insurance, the form numbers and edition dates of all endorsements attached to the policy
lapse
Policy termination due to nonpayment of premium
disclosure statement
Provides basic information about the cost and coverage of the insurance being solicited. Must be given to the applicant no longer than the time the application for insurance is signed
Which of the following is among the regulations set forth by the Florida replacement rule?
Providing a written comparison and summary statement
Duties of the replacing insurance company
Require from the producer a list of the applicant's life insurance or annuity contracts to be replaced and a copy of the replacement notice provided to the applicant; and Send each existing insurance company a written communication advising of the proposed replacement within a specified period of time of the date that the application is received in the replacing insurance company's home or regional office. A policy summary or ledger statement containing policy data on the proposed life insurance or annuity must be included.
Florida Replacement Rule
Set forth the requirements and procedures to be followed by insurance companies and agents when a proposal is being made in which a prospective life insurance buyer will be replacing existing insurance contracts with the proposed new insurance
What date must be contained in a policy summary?
The date the summary was prepared
Which of the following dates must be contained in a policy summary?
The date the summary was prepared
What is the purpose of a disclosure statement in life insurance policies?
To explain features and benefits of a proposed policy to the consumer
promulgate
To make public, to put into action
Length of incontestability period
Two years
Prohibited practices that relate specifically to marketing of life insurance products
Using misleading terms, false information and advertising, advertising gifts, and free insurance
suitability
a requirement to determine if an insurance product is appropriate for a customer
Nonforfeiture Values
benefits in a life insurance policy that the policyowner cannot lose
Policy proceeds
in life insurance, the death benefit
Lapse
policy termination due to nonpayment of premium
disclosure
revealed information to help someone make an intelligent and educated decision
Florida Life Insurance Solicitation Law
spells out the information and procedures required of agents and insurers when proposing life insurance to a prospective buyer.