Florida Rules, and Regulations pertinent to life insurance
Which of the following is true regarding the SPENDTHRIFT clause in life insurance policies?
It can protect the policy proceeds from creditors of the beneficiary
What is reinsurance?
An agreement between a ceding insurer and assuming insurer
Applications to an insurer must include all of the following information, EXCEPT
Credit history report
Any inducement offered in the sale of insurance products that is not specified in the policy is
Rebating
Which of the following is not true of life settlements?
The seller must be terminally ill.
Which of the following would be an example of an unfair claims settlement practice?
Failing to acknowledge a claim within 30 days
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
When replacing life insurance, the duties of the replacing insurance company include all of the following EXCEPT?
Maintaining a copy of the Notice Regarding Replacement and all sales proposals used for at least 5 years.
If an agent is in the military, which of the following is true?
The agent cannot sell a policy to another active military person who is of a lower rank.
Which is not true about beneficiary designations?
The beneficiary must have insurable interest in the insured.
Who does the secondary addressee provision protect?
The insured over the age of 64
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
How will a life insurance beneficiary designation naming a spouse be changed by divorce?
The beneficiary designation will be voided
Which of the following is the closest term to an authorized insurer?
Admitted
Under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months
The minimum age for purchasing life insurance policy in Florida is?
15
If a licensee changes his or her residence address, within how many days must the department be notified?
30
An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of
Concealment
The requirement that agents not commingle insurance monies with their own funds is known as?
Fiduciary responsibility
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?
Mutual
Can a group that is formed for the sole purpose of obtaining group insurance qualify for group coverage?
No, the group must be formed for a purpose other than obtaining group insurance.
Traditional IRA contributions are tax deductible based on which of the following?
Owner's income
To sell variable life insurance policies, an agent must receive all of the following EXCEPT?
SEC registration
The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the?
Spendthrift clause
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash option
What is the maximum allowed value of promotional gifts that an agent may give to a prospective insured?
$100
Which of the following is true regarding the agent's appointments?
A person may hold several appointments at one time.
The office of Insurance Regulation is responsible for all of the following insurer activities EXCEPT
Issue of securities
All of the following would be considered an insurance transaction EXCEPT?
Obtaining an insurance license
In terms of parties to a contract, which of the following does not describe a competent party?
The person must have at least completed secondary education
Which of the following would not be a violation of state insurance regulations?
Agent C uses her license to write only business other than controlled
Which of the following activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance agent's license?
Forgery
What kind of policy does not typically require proof of insurability?
Group insurance
what kind of policy does NOT typically require proof of insurability?
Group insurance
In life insurance policies cash value increases
Grow tax deferred.
An agent delivers a life insurance policy to the proposed insured. The insured makes a decision not to accept the policy. The insured may return the policy for a full refund of premium within how many days?
7
If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdue premium and to charge interest. What is the maximum allowed interest rate?
8%
Which of the following is TRUE of a qualified plan?
It has a tax benefit for both employer and employee.
Who might receive dividends from a mutual insurer?
Policyholders
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 deductible expense by the employer.
What is the purpose of a disclosure statement in life insurance policies?
To explain features and benefits of a proposed policy to the consumer
Which statement is NOT true regarding a policy summary?
Its is generally given to applicant before acceptance of the initial premium.