Florida Statutes, Rules, And Regulations Pertinent To Life Insurance

Multiple-Employer Trust (MET):

for two or more employers in similar or related businesses who do not qualify for group insurance on their own

Buyer's guide

is a document that contains generic information about life insurance policies.

Policy summary

is a written statement that describes the elements of the policy, and includes the key features, conditions and restrictions of the policy being applied for.

Replacing insurer

is the company that issues the new policy.

Existing insurer

is the company whose policy is being replaced.

Group life insurance

is written as a master policy, issued to the sponsoring organization, covering the lives of more than one individual member of that group.

Individual life insurance

is written on a single life. The rate and coverage are based upon the underwriting of that individual.

Replacement

means any transaction in which new life insurance or a new annuity is purchased and, as a result, the existing life insurance or annuity has been

Legal action:

no sooner than 60 days, no later than 5 years

Which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?

nonforfeiture values

Lapse

policy termination due to nonpayment of premium

Both the buyer's guide and policy summary must be provided to an applicant ________ to the applicant's initial premium payment.

prior

Disclosure

revealed information to help someone make an intelligent and educated decision

The Florida Replacement Rule

sets 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;

The Florida Life Insurance Solicitation Law

spells out the information and procedures required of agents and insurers when proposing life insurance to a prospective buyer;

_____ will be subject to the regulation on life insurance solicitation

A term life policy

Claim

a request for payment of the benefits provided by an insurance contract

Suitability

a requirement to determine if an insurance product is appropriate for a customer

Notice of claims:

by insured within 20 days

Policy proceeds

in life insurance, the death benefit

the buyer's guide and policy summary may be provided to the applicant at the time.

the policy is delivered.

Promulgate

to make public, to put into action (e.g. laws, court decrees, and similar)

ERISA

Employee Retirement Income Security Act: defines federal standards for private pension plans

What kind of policy issues certificates of insurance to insureds?

Group Insurance

An annuity contract issued to a senior consumer age 65 or older may not contain a surrender or deferred sales charge for a withdrawal of money from an annuity exceeding ____% of the amount withdrawn.

10

Existing insurers must provide policyowners with a policy summary for the existing life insurance within ____ days of receiving the written communication and replacement if requested.

10

If a policy provides an unconditional refund of at least ___ days,

14

In Florida, life insurance policies and annuities have a special ____-day free-look period.

14

Incontestability period:

2 years

The existing insurers are also required to retain and be able to produce all replacement notifications for at least ___ years or until the conclusion of the next regular examination by the Insurance Department, whichever is later.

3

In the state of Florida, a required grace period is ___ days.

30

Insurers, managing general agents, insurance agencies, and agents must maintain records of the information collected from senior consumers and other information used in making recommendations that were the basis for insurance transactions for ___ years after the insurance transaction is completed by the insurer.

5

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

65 Years old

Exclusive Provider Organization (EPOs)

Type of PPO in which individual members use particular preferred providers rather than having a choice of a variety of preferred providers

The insurer reserves the right to defer the payment of any cash surrender value for a period of ___ months after demand with surrender of the policy.

6

The insurer, however, may impose an interest charge not to exceed __% per year for the number of days elapsing before the premium is paid.

8

Discount Medical Plan Organization (DMPO)

A business arrangement or a contract (not insurance) in which a person, for a fee, provides access for plan members to providers of medical services and the right to receive those services at a discount

Representations

statements on the application are representations; application becomes parts of the entire contract

Denial of claims:

the claimant has a right to appeal

Multiple-Employer Welfare Arrangement (MEWA):

any entity that establishes an employee benefit health plan for the employees of at least 2 employers, including self-employed individuals and their dependents

Time of payment of claims:

benefit paid immediately after proof of loss is received

Nonforfeiture values

benefits in a life insurance policy that the policyowner cannot lose

Proof of loss:

by insured within 90 days

Claims forms:

by insurer within 15 days

The secondary notice (or secondary addressee) provision protects

elderly insureds.

The Code of Ethics of the Florida Association of Insurance and Financial Advisers

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.

The policy summary must be a

separate document.