FL statutes, rules and regulations pertinent to life insurance--Chapter 11 Ouiz

Question 12 of 15 Which of the following documents must be provided to the policyowner or applicant during policy replacement? ABuyer's Guide and Policy Summary BPolicy illustrations CNotice Regarding Replacement DDisclosure Authorization Form

C. Notice Regarding Replacement Correct! During policy replacement, the replacing producer must present to the applicant a Notice Regarding Replacement that is signed by both the applicant and the producer.

Question 4 of 15 Which of the following is among the regulations set forth by the Florida Replacement Rule? AExplaining the procedures used when proposing insurance BDefining appropriate and inappropriate business behavior CReturning property to its original state, before the time of loss DProviding a written comparison and summary statement

D. Providing a written comparison and summary statement Correct! The Florida Replacement Rule established that, when replacing life insurance contracts with new contracts, the agent is required to give the applicant a written comparison and summary statement at the request of the policyholder.

Question 15 of 15 If an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following describes the extent that replacement regulations will be exercised? ASpecial corporate replacement regulations will apply. BThe type of life insurance policy obtained will determine which replacement regulations will be required. CThe number of employees covered by the policy will determine which replacement regulations will be required. DReplacement regulations will not apply in this situation.

D. Replacement regulations will not apply in this situation. Correct! If a new life insurance policy is provided under a group life insurance policy covering employees or members of an association, replacement regulations do not apply.

Question 13 of 15 Who does the secondary addressee provision protect? AThe insured over the age of 64 BContingent (secondary) beneficiaries CThe insured whose policy is being replaced DThe insurance company

A. The insured over the age of 64 Correct! The secondary notice/addressee provision protects elderly insured. Coverage for persons age 64 and older that has been in force for at least 1 year cannot lapse for nonpayment of premium after expiration of the grace period without the insurer notifying the policyowner and a specified secondary addressee (if designated in writing by the policyowner) of the impending lapse in coverage.

Question 5 of 15 How must a replacing producer respond to an applicant wishing to replace existing life insurance? AThe producer must provide the applicant with a Notice Regarding Replacement. BThe producer must collect the existing policies and turn them over to the replacing insurer. CThe producer must request the permission of the existing insurer. DThe producer has no specific duties.

A. The producer must provide the applicant with a Notice Regarding Replacement. Correct! In a replacement transaction, a producer must present to the applicant a Notice Regarding Replacement, signed by both the applicant and the producer.

Question 8 of 15 Under what conditions will proof of insurability NOT be required of an employee wanting to enroll in a group insurance plan? AIf the employee has maintained consistent insurance coverage BIf the employee enrolls within a certain time period CThe employee will never have to provide proof of insurability in order to enroll in a group plan DIf the employee has been approved for other insurance policies in the past

B. If the employee enrolls within a certain time period Correct! In group insurance, evidence of insurability is usually not required if participant enrolls during the open enrollment period, and participants (insureds) under the plan do not receive a policy, nor do they own or control the policy. Instead, they receive certificates, indicating that they are included in the coverage.

Question 2 of 15 When replacing life insurance, the duties of the replacing insurance company include all of the following EXCEPT ASending to the existing insurer a copy of the Notice Regarding Replacement immediately. BProviding to each purchaser a Buyer's Guide and a Policy Summary. CMaintaining a copy of the Notice Regarding Replacement and all sales proposals used for at least 5 years. DRequiring from the agent with the application a copy of the Notice Regarding Replacement.

C. Maintaining a copy of the Notice Correct! Replacing insurers must maintain copies of the Notice Regarding Replacement and all sales proposals used for at least 3 years or until the conclusion of the next regular audit by the insurance department, whichever is later.

Question 6 of 15 Under a group plan, Certificates of Insurance must include all of the following EXCEPT AThe name of the insured. BThe name of the writing agent. CThe group policy number. DA description of the insurance protection.

B. The name of the writing agent. Correct! Certificate of insurance for a group plan requires the policy number, description of insurance protection and the name of the insured. The name of the writing agent is not a requirement.

Question 3 of 15 What is the maximum allowed value of promotional gifts that an agent may give to a prospective insured? A$20 B$50 C$100 DGifts are never allowed.

C$100 Correct! A licensed insurer or its agents may not give to insureds or prospective insureds for the purpose of advertising any articles of merchandise that have a value of more than $100 per insured in any calendar year.

Question 14 of 15 A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default? A15 B30 C60 D90

C. 60 Correct! A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within 60 days after the due date of the premium in default

Question 10 of 15 What kind of policy does NOT typically require proof of insurability? ATerm insurance BIndividual insurance CGroup insurance DVariable universal life

C. Group insurance Correct! Individual life insurance is written on a single life. The rate and coverage is based upon the underwriting of that individual. 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. In group insurance, individual participants typically do not need to provide proof of insurability.

Question 7 of 15 An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds A$10,000. B$15,000. C$25,000. D$50,000

D. $50,000 Correct! The cost of coverage paid by the employer in excess of $50,000 is taxed to the employee

Question 11 of 15 Licensed life insurance agents are expected to be familiar with which of the following laws? AFlorida Life Insurance Solicitation laws BFlorida Life Insurance Replacement laws CCode of Ethics of Florida Association of Insurance and Financial Advisers DAll of the insurance laws and regulations

D. All of the insurance laws and regulations Correct! While the other laws may have particular significance, an agent should be generally aware of all insurance laws.

Question 9 of 15 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? AWaiver of premium BProbationary period CGrace period DFree look

D. Free look Correct! The free-look provision generally allows an insured a specified number of days from the delivery date of the policy to look over a new policy and return it for a full premium refund if dissatisfied for any reason. For life policies and annuities in Florida, that time period is extended to 14 days.

Question 1 of 15 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? AThe Code of Ethics of the Florida Association of Insurance and Financial Advisers BThe Florida Life Insurance Solicitation Law CThe Florida Insurance Guaranty Association DThe Florida Replacement Rule

D. The Florida Replacement Rule Correct! The Florida Replacement Rule established the procedures followed when a prospective life insurance buyer replaces an existing insurance contract with new insurance.