CH 27 Quiz

14. All of the following are correct insurance agent marketing responsibilities EXCEPT

A presentation may not include references to life insurance policy cost indexes

10. Which of the following is NOT considered to be an element of replacement?

An existing policy is subjected to a loan of 10 percent of its value.

27. All of the following statements about life insurance benefits are correct EXCEPT

Benefits payable to the insured's estate are protected from the creditors

6. Which of the following statements applies to the rights of a surviving spouse under a group insurance policy?

Conversion privileges must be provided for dependents

20. Which of the following is correct about the replacement rule?

Instructions regarding the rule are available from appointed life insurers.

15. All of the following are duties of the replacing insurer EXCEPT

Insure that all appointed agents take a 2-hour course on replacement annually

25. Which of the following applies when an insured wishes to convert industrial insurance policies for an ordinary policy?

It is possible to convert $3,000 or more of industrial insurance.

1. Which of the following statements is correct about group life insurance?

It is written with a master policy for members of qualified groups

4. Which of the following rules 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

28. All of the following statements are correct about the law for conversion (change of plan) EXCEPT

The maximum amount of face value that can be converted is $2,000

2. Which of the following is NOT required when a group life insurance policy is canceled?

The policy owner must notify the department of the cancellation.

26. All of the following are eligible groups under Florida law EXCEPT

groups established to buy insurance

13. All of the following groups are eligible for group life insurance EXCEPT

social clubs

19. How will a beneficiary naming a former spouse on a preexisting insurance contract be changed by the divorce?

the beneficiary designation is voided by the divorce

3. All of the following are correct about the policy loan interest rate EXCEPT

There are no restrictions or limitations on policy loan interest rates

16. All of the following statements regarding the life insurance policy summary are correct EXCEPT

It must illustrate all guaranteed policy dividend values

21. To comply with disclosure requirements, producers must deliver which of the following documents to all insurance applicants?

Buyer's Guide & policy summary

11. Suitability information gathered from consumers must be retained for review by the department

By both agents & insurers for 5 years

12. Which of the following actions accurately portrays the limit Florida insurance regulations set for the combining of advertising for insurance policies with association membership?

By requiring separate applications and separate signatures

7. All of the following statements are correct about group life insurance EXCEPT

Certificate holders need not be notified if the policy expires

5. In which of the following ways is a beneficiary protected from the creditors of the deceased insured?

If the policy is made payable to a named beneficiary, then the creditors can make no claim to the proceeds.

22. An insurer must establish a suitability supervision system including all of the following EXCEPT

Limiting annuity replacements to agents with two or more years field experience

23. All of the following information and much more must be gathered from an annuity applicant in order to determine the suitability of the sale EXCEPT

Membership in any civic clubs or organizations by the applicant

9. Which of the following is the correct number of lives required in Florida for a group life insurance policy?

No minimum

29. Which of the following must be given to an insured when a replacement occurs?

Notice regarding replacement

8. For an individual life insurance contract on an insured 64 years of age or older, the insurer must advise the applicant

Of their right to designate a secondary addressee to receive a copy of any policy lapse notice

24. All of the following statements are correct about policy loan interest rates EXCEPT

Policy loan interest rates were set by the Office of Insurance Regulation in 1933 and may not be changed.

17. During what period is a new life insurance policy owner entitled to review a policy and return it for a full refund?

Within 14 days after delivery of the policy