Chapter 11 - Florida Statutes, Rules, and Regulations Pertinent to Life Insurance Flashcards
ERISA
Employee Retirement Income Security Act: defines federal standards for private pension plans
Who does the secondary notice provision protect?
Elderly insureds
The secondary notice provision protects elderly insureds, and prevents the policy from lapsing for nonpayment of premium after the grace period without the insurer notifying the policyowner and a designated secondary addressee of the impending lapse in coverage
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
The producer must provide the applicant with a Notice Regarding Replacement
It informs them of the potential implications of making such a change and ensures they fully understand the differences between the old and new policies before making a decision; it’s designed to protect the consumer from making an uninformed switch
What is the maximum interest rate insurers are allowed to charge in Florida during grace periods?
8%
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
The Florida Replacement Rule established the procedures followed when a prospective life insurance buyer replaces an existing insurance contract with new insurance
How will a life insurance beneficiary designation naming a spouse be changed by divorce?
The beneficiary designation will be voided
During replacement of life insurance, a replacing insurer must do what three things?
- Obtain a list of all life insurance policies that will be replaced
- A copy of the replacement notice provided to the applicant
- Send each existing insurance company a written communication advising of the proposed replacement
The insured may return a life insurance policy for a full refund of premium within how many days?
14
An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds
$50,000
How long must insurers maintain records of the information collected from senior consumers and other information used in making recommendations that were the basis for insurance transactions?
5 years
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?
60
What is the maximum allowed value of promotional gifts that an agent may give to a prospective insured?
$100
When does a free-look period begin on a life insurance policy?
When the policy is delivered to the insured
Regulations for annuity recommendations would apply when a consumer is at least what age?
65
A senior is 65+
An annuity contract is issued to a senior consumer over age 65. What is the maximum surrender charge for a withdrawal of money allowed on this annuity?
10%
