Florida Statutes and Regulations: Life Insurance

cost of coverage paid by the employer in excess of $_____ is taxed to the employee

$50,000

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; - 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 company's home or office

When does solicitation of life insurance NOT apply?

- annuities - credit life insurance - group life insurance - variable insurance policies in which the death benefits and cash values vary according to the investments in a separate account - life insurance policies issued in connection with pension and welfare plans that are subject to ERISA

certificates of insurance must contain the following:

- group policy # - description of insurance protection to which the certificate- holder is entitled - name of the insured, beneficiary and dependents - right and conditions

every insurance policy issued in FL must specify the following :

- names of the parties in the contract - subject of insurance - risks insured against - effective date and period of coverage - premium - conditions pertaining to the insurance - form numbers and edition dates of all endorsements attached to the policy

Duties of the replacing producer:

- present to the applicant a Notice Regarding Replacement that is signed by both the applicant and the producer. - obtain a list of all existing life insurance and/ or annuity policies to be replaced including policy numbers and all names of companies - leave the applicant with the original or a copy of written or printed communications used for presentation to the applicant - submit to the replacing insurance company a copy of the replacement notice with the application

each agent who initiates replacement application must submit the following to the insurance company

- statement signed by the applicant as to whether replacement of existing life insurance or annuity is involved in the transaction - signed statement as to whether the agent knows replacement is or may be involved in the transaction

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

10 days

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%

minimum age to purchase insurance or annuity

15

Grace Period

30 days, however may impose an interest charge not to exceed 8%

employee has __ days after termination to convert to whole life policy from group policy

31 days

how long must insurers maintain records of the info collected from senior consumers

5 years after insurance transaction completed by insurer

if a life insurance policy offers a grace period of more than __ days the policyowner must be given notification at least __ days before expiration of grace period

51 days , 21 days

claim

A request for payment of the benefits provided by an insurance contract.

advertising gifts

a licensed insurer or its agents may not give to insureds or prospective insureds any articles of merchandise that have a value of more than $100 per insured in any calendar year.

suitability

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

policy summary

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

free insurance

advertising, offering, or providing free insurance as an inducement to the purchase or sale of real or personal property or of services directly or indirectly connected with such real or personal property is prohibited

free look provision

allows an insured 14 days from the delivery date of the policy to return full premium refund if dissatisfied

solicitation of insurance

an attempt to persuade a person to buy an insurance policy, can be done orally or in writing

group life is also written as

annually renewable term insurance

if former spouse is designated beneficiary what happens in case of divorce

beneficiary designation will be void

Nonforfeiture Values

benefits in a life policy that the policyowner cannot lose

Nonforfeiture Options

benefits of a life policy that the policyowner does not forfeit even if the policy lapses

group life receives

certificate of insurance

replacing insurer

company that issues the new policy

existing insurer

company whose policy is being replaced

buyer's guide

document that contains generic info about life insurance policies

group insurance members don't have to provide evidence of insurability unless

enroll outside of open enrollment

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. also establishes the activities of agents as one of public trust

policy proceeds

in life insurance, the death benefit

spendthrift clause is designed to protect...

insurance policy proceeds that have not yet been paid to a named beneficiary from the claims of the creditors of the beneficiary or policyowner

false information and advertising

insurers may not knowingly make, publish, disseminate, circulate, or place before the public (directly or indirectly) an ad, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, deceptive or misleading

in settlement payment must include

interest

can a policy summary be combined with a sales illustration

no, the policy summary must be a separate document

senior consumer

person 65 or older

lapse

policy termination due to nonpayment of premium

Spendthrift Clause

protects beneficiaries from the claims of their creditors, as well as prevents the beneficiary's reckless spending of benefits by requiring that the benefits be paid in a fixed period or fixed-amount installments

secondary notice (secondary addressee)

protects elderly insureds. coverage for persons age 64 and older that has been in force 1 year cannot lapse for nonpayment of premium after expiration of the grace period without the insurer notifying the policyowner and specified secondary addressee

disclosure

provides basic info about the cost and coverage of the insurance being solicited. must be given to applicant no later than the time of application for insurance is signed

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.

who is responsible for all advertisements

the insurer whose policies are advertised

promulgate

to make public, to put into action

using misleading terms

using terms such as financial planner, investment adviser, financial consultant to imply that insurance agent is generally engaged in an advisory business in which compensation is not related to sales (unless true)

settlement

when a policy becomes a claim, _____ must be made upon receipt of due proof of death and surrender of policy