Florida Life Insurance Replacement Laws Quiz & Flashcards

Questions and Answers

Insurance companies that are organized in countries outside the United States are referred to as?

International

Domestic

Alien (correct)

Foreign

A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value.

Viatical settlement provider

Agents that have been licensed for less than six years must complete how many hours of continuing education every two years?

If T's employment is terminated, the conversion privilege gives T the right to convert to:

An individual policy upon employment termination Signup and view all the answers

Which of the following activities will NOT result in the suspension of an agent's license?

Working for a foreign insurer Signup and view all the answers

In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies?

Naturopaths Signup and view all the answers

What is an example of sliding?

Charging for an additional product without the applicant's consent Signup and view all the answers

Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?

Limitation on pre-existing conditions for up to 12 months Signup and view all the answers

Which of the following situations are NOT subject to Florida life insurance laws?

Insurance companies' day-to-day operations Signup and view all the answers

Who oversees the Bureau of Unclaimed Property?

The Chief Financial Officer Signup and view all the answers

What would be an example of unfair discrimination?

Offering different terms of coverage for different policyowners having the same risk classification Signup and view all the answers

A foreign insurance company doing business in Florida is formed under the laws of?

Another state Signup and view all the answers

What must an agent selling Medicare Supplement policies provide every applicant?

A suitability form Signup and view all the answers

A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss?

Twenty Signup and view all the answers

What do families pay that are covered by the Florida Healthy Kids Corporation?

A portion of the premium Signup and view all the answers

How many hours of continuing education must a newly licensed agent complete every two years?

24 HRS Signup and view all the answers

What is an insurance company incorporated under the laws of the state in which its home office is located called?

Domestic Signup and view all the answers

When is a Group Health policy required to provide coverage for a newborn child?

At the moment of birth Signup and view all the answers

What type of benefits does a Multiple Employer Welfare Arrangement (MEWA) provide?

Insurance Signup and view all the answers

What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida Law?

0% Signup and view all the answers

What are adjustable rates for life policy loans in Florida based on?

Moody's corporate bond index Signup and view all the answers

In Florida, most life insurance policies have a contestability period of?

2 years Signup and view all the answers

What is an example of an unfair trade practice?

An agent making a material misrepresentation to the insured Signup and view all the answers

What corrective action might the Department of Financial Services order K to take after making an improper sale of an annuity?

Pay monetary restitution to the client Signup and view all the answers

Which of the following situations does NOT apply to the Florida Replacement Rule?

An existing policyholder purchases an additional policy from the same insurer Signup and view all the answers

Which two entities regulate variable annuities?

Securities Exchange Commission Signup and view all the answers

According to Florida's life insurance replacement laws, when must a policyowner be provided with a written Comparison and Summary Statement?

When requested by the policyowner Signup and view all the answers

All of the following are Nonforfeiture Options EXCEPT?

Automatic Premium Loan Option Signup and view all the answers

Group Life policies in Florida are required to contain a conversion privilege that allows for conversion to?

An individual policy for a stated period of time Signup and view all the answers

In Florida, monthly-premium health insurance policies must provide a grace period of at least?

10 days Signup and view all the answers

What happens when an employee covered under a Group Life policy leaves the group?

The conversion privilege gives the employee the right to convert to an individual policy upon termination of employment Signup and view all the answers

What is Florida's definition of Life insurance replacement?

A transaction in which a new policy is bought and an old policy is terminated Signup and view all the answers

An agent's license can be suspended or revoked by?

Writing primarily controlled business Signup and view all the answers

In Florida, a health policy that is paid on a quarterly basis requires a grace period of?

31 days Signup and view all the answers

What happens if W gave W's age as 50 when purchasing a Life policy, but the company later found out W's true age at issue was 59?

The proceeds would be reduced based on whatever the premium would have been if purchased at age 59 Signup and view all the answers

Which of the following is NOT required in the Outline of Coverage for a health insurance policy?

Projection of the policy's future costs Signup and view all the answers

If a policyowner does not pay the premium by the due date, what can they do?

Make the premium payment during the grace period Signup and view all the answers

Which of the following employees may NOT be excluded from a group life plan?

Full-time employees after the probationary period Signup and view all the answers

In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n)?

Foreign company Signup and view all the answers

Florida's 14-day free-look period for life insurance policies begins at the?

Date of delivery Signup and view all the answers

Study Notes

Florida Insurance Terminology

Alien Insurance Company: An insurance company organized in a country outside the U.S.
Viatical Settlement Provider: A provider to whom a life insurance policyowner may sell their policy for a percentage of the face value.
Domestic Insurance Company: An insurance company incorporated under the laws of the state where its home office is located.
Foreign Insurance Company: A company formed under the laws of a state other than Florida, but conducts business in Florida.

Continuing Education and Agent Regulations

Agents licensed for less than six years must complete 24 hours of continuing education every two years.
An agent’s license can be suspended or revoked for writing primarily controlled business.
Agents selling Medicare Supplement policies must provide applicants with a suitability form.

Group Life and Health Policies

Employees covered under a Group Life policy have the right to convert to an individual policy upon termination of employment.
Group Health policies provide coverage for newborns at the moment of birth.
Noncontributory group health plans generally require 100% employee participation under Florida law.

Health Insurance and Claims

Written notice of a claim must be given to the insurer within 20 days after a covered loss.
Monthly-premium health insurance policies require a grace period of at least 10 days.
Health insurance policies must cover payment to all practitioners in Florida except naturopaths.

Medicare Supplement Policies

Medicare Supplement policies have only a 6-month limitation on pre-existing conditions.
The Bureau of Unclaimed Property in Florida is overseen by the Chief Financial Officer.

Unfair Practices and Regulations

Sliding: An example of unfair practice where agents include extra products without the applicant's consent.
Unfair Discrimination: Providing different coverage terms to policyowners with the same risk classification.

Annuities and Insurance Replacement

An agent must disclose possible tax ramifications when replacing or exchanging an annuity.
Florida's definition of life insurance replacement involves buying a new policy while terminating an old one.

Nonforfeiture Options

Options considered Nonforfeiture do not include the Automatic Premium Loan Option.
Health policies that are subject to quarterly payments require a grace period of 31 days.

Premium Payments and Policyholder Rights

If a premium is unpaid by the due date, it can still be paid during the grace period.
The Outline of Coverage for a health insurance policy does not require a projection of future costs.

Other Key Facts

Contestability Period: Most life insurance policies in Florida have a maximum contestability period of 2 years.
Families covered by the Florida Healthy Kids Corporation pay only a portion of the premium.
Adjustable rates for life policy loans are based on Moody's corporate bond index.

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Test your knowledge of Florida's insurance laws and rules with these flashcards. Each card provides key terms and definitions related to insurance practices in the state. Perfect for students and professionals looking to refresh their understanding of insurance regulations.

Florida Laws and Rules: Insurance Flashcards