Florida Statutes, Rules, and Regulations Pertinent to Life and Annuity Insurance, Including Variable Products — Florida exam
18% of the scored questions — about 15 of 85. This section is Florida law, the part national study material covers least.
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A covered employee dies during a Florida group life policy's grace period, before the premium is paid. What does section 627.559 provide?
Answer and explanation
Answer: A. Section 627.559 states that during the grace period the death benefit coverage shall continue in force. The protection operates during the period itself rather than depending on later payment, and the statute provides for no reduction in the amount payable.Source: Fla. Stat. § 627.559 — 627.559, Coverage during the grace period
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A creditor seeks to garnish the cash surrender value of a life policy issued on the life of a Florida resident. What does Florida law provide?
Answer and explanation
Answer: A. Section 222.14 provides that cash surrender values of life policies issued upon the lives of citizens or residents of the state are not in any case liable to attachment, garnishment, or legal process in favour of any creditor. The section sets no waiting period, no premium-based ceiling, and no cut-off at the insured's death; its single exception is a policy effected for the benefit of that creditor.Source: Fla. Stat. § 222.14 — 222.14, Cash surrender values and annuity proceeds
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A departing Florida employee wants to convert group coverage to an individual term policy. What does section 627.566 allow?
Answer and explanation
Answer: B. Section 627.566 allows conversion to any one of the forms then customarily issued by the insurer for the age and amount requested, but expressly provides that the group policy may exclude the option to elect term insurance. Term is therefore neither guaranteed nor mandated, and the form of the group contract does not decide the point.Source: Fla. Stat. § 627.566 — 627.566, Term insurance option
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A Florida applicant discovers after issue that an extra benefit was added and charged for without being mentioned. Which practice is that?
Answer and explanation
Answer: B. Section 626.9541(1)(z) defines sliding as charging an applicant for a specific ancillary coverage without the informed consent of the applicant. Twisting under (1)(l) requires inducing lapse of existing coverage, churning under (1)(aa) requires using existing policy values, and rebating under (1)(h) requires value flowing to the insured outside the contract.Source: Fla. Stat. § 626.9541 — 626.9541(1)(z) applied to a life sale
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A Florida applicant is buying an additional life policy. Which document must reach the applicant, and when?
Answer and explanation
Answer: C. Rule 69O-151.202 requires the insurer or its licensed and appointed agent to provide Form OIR-D0-1180, the Policy Disclosure Form, prior to or contemporaneous with the time the applicant signs any application for the purchase of an additional life insurance policy or annuity contract. The timing is fixed to the signing, not to issue or to delivery.Source: Fla. Admin. Code r. 69O-151.202 — 69O-151.202, Policy Disclosure Form
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A Florida applicant will fund an additional policy using values from an existing contract. What does the current rule require about the loan or surrender paperwork?
Answer and explanation
Answer: A. Rule 69O-151.202 requires that policy loan and surrender forms be completed at the time of application, which keeps the funding source visible while the sale is being made. The rule does not allow the paperwork to trail the application, does not route it through the Office, and does not require the existing insurer's signature first.Source: Fla. Admin. Code r. 69O-151.202 — 69O-151.202, Loan and surrender forms
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A Florida client asks an agent to surrender an existing annuity. What must the agent do before the surrender is executed?
Answer and explanation
Answer: B. Section 627.4553 requires the agent to provide written disclosure before executing a surrender of an annuity or life insurance policy, covering the estimated surrender charge, the loss of any minimum interest rate guarantees, possible tax consequences, and other relevant details. The statute imposes no consent from another insurer, no filing with the Office, and no waiting period.Source: Fla. Stat. § 627.4553 — 627.4553, Disclosure before surrender
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A Florida decedent had named a former spouse irrevocably before the marriage ended. How does section 732.703 treat that?
Answer and explanation
Answer: C. Section 732.703 excepts from its voiding rule a designation of the former spouse that is irrevocable under applicable law, alongside exceptions for controlling federal law, a court-ordered obligation, a post-dissolution instrument, another state's governing law, and remarriage. Premium payment and partial funding are not part of the analysis.Source: Fla. Stat. § 732.703 — 732.703, Irrevocable designation exception
All 90 florida statutes, rules, and regulations pertinent to life and annuity insurance, including variable products questions
- A Florida decedent's life policy still named the former spouse as beneficiary, and the marriage was judicially dissolved years earlier. What is the effect?
- A Florida decedent's plan benefit names a former spouse, and controlling federal law directs otherwise than section 732.703 would. Which prevails?
- A Florida employee's eligibility under a group life policy ends. How long is there to apply for an individual policy and pay the first premium?
- A Florida group certificate covers an employee and a dependent spouse. Which statement about contesting the spouse's coverage is accurate?
- A Florida group certificate holder assigns the death benefit to a lender. What two questions arise?
- A Florida group life plan wishes to extend coverage to members' dependents. Which section governs that?
- A Florida group life policy is terminated by the employer, and separately one employee leaves the firm. Which sections govern each conversion?
- A Florida group life policy terminates, and a covered person dies during the period allowed to convert but before applying. Which sections address that sequence?
- A Florida group member dies within the conversion window without having applied. Which section addresses that?
- A Florida individual life policy has been in force during the insured's lifetime for three years. On what basis may the insurer still contest it?
- A Florida individual life premium is thirty-two days overdue and nothing has been paid. What is the position?
- A Florida insured dies owing money to several creditors. The policy names her adult son as beneficiary. What happens to the death proceeds?
- A Florida insured dies twenty months after issue, and the insurer discovers a material misrepresentation eight months later. Is the policy contestable?
- A Florida insurer misses the statutory deadline for tendering a settlement. What does section 627.4265 impose?
- A Florida insurer reaches a written settlement with a claimant. Within how many days must it tender payment?
- A Florida life policy contains a clause allowing the insurer to contest the contract at any time during the insured's life. What is wrong with it?
- A Florida life policy purports to give the insurer sixty days to pay an agreed settlement. What is the effect?
- A Florida policy has lapsed and the owner wants either to restore it or to take the values available. Which sections govern each course?
- A Florida policy names a beneficiary, but a valid assignment directs proceeds elsewhere. How does the creditor exemption in section 222.13 apply?
- A Florida policy names the insured's own estate as beneficiary, and the insured dies with unpaid debts. How does the creditor exemption apply?
- A Florida policyowner asks which sections govern taking a policy loan and restoring a lapsed policy.
- A Florida policyowner pays a premium late but within the grace period. What may the insurer charge on the overdue amount?
- A Florida policyowner stops paying premiums on a cash-value policy and asks what the law guarantees.
- A Florida replacement involves two insurers. Which rule speaks to each?
- A Florida settlement is conditioned on the claimant executing a release, and the claimant delays signing. When does interest begin to run?
- A lender required a borrower to take out a policy naming the lender, and the lender now seeks the contract's value. Does the Florida exemption block it?
- A lender wishes to cover its borrowers, and a credit union wishes to cover its members, each under a group life contract. How does Florida treat these?
- A study guide cites rule 69O-151.005 for the agent's duties on replacement. Why should the agent not rely on it?
- A trust established by several employers, and a professional association, each seek group life coverage in Florida. How are they treated?
- After a Florida divorce, the decedent signed a new designation expressly naming the former spouse. What is the effect?
- After how long may the validity of a Florida group life policy no longer be contested, apart from nonpayment of premium?
- An agent must state the grace period for a Florida individual life policy and for a group life policy. What are the two figures?
- An agent offers a prospect a cash gift not provided for in the contract to close a life sale, and disparages the prospect's current policy with misleading claims. Which practices are involved?
- An agent proposes funding a new policy from an existing policy's values, with no clear gain for the client. Which two Florida authorities bear on this?
- An annuity is issued to a Florida consumer aged 68 who later withdraws funds. What limit applies to the surrender or deferred sales charge?
- An annuity marketed to Florida consumers aged 65 and over carries a fifteen percent surrender charge. What is the difficulty?
- An employee is dismissed and the employer removes the employee from the Florida group plan the same day. What right survives?
- An employee leaves a Florida group plan that also covered a spouse and children. What happens to the dependants' coverage?
- An employee whose health has declined converts group life coverage within the statutory window. What may the insurer require?
- An employer's group life contract omits several provisions Florida requires. Which sections are engaged?
- An employer's group life plan covers employees and wishes to add their spouses and children. Which sections are engaged?
- An insured aged 68 misses a Florida individual life premium. In what order do the grace period and the lapse notice operate?
- An insured aged 70 misses a premium and the grace period expires. Before the policy may lapse, what must the insurer do under section 627.4555?
- An insurer agrees a settlement in writing and then withholds payment for months without explanation. Which two Florida provisions bear on that?
- An insurer wishes to contest coverage on a group member after two years, relying on what the member said about eligibility. What does section 627.560 require?
- At what age does Florida's senior annuity surrender charge protection begin to apply?
- Does Florida's statutory grace period apply to the very first premium on a life policy?
- Florida's secondary addressee protection against inadvertent lapse applies to a life policy covering a natural person of what age?
- For an annuity issued to a Florida consumer aged 70, when must the surrender or deferred sales charge be eliminated altogether?
- For how long must executed Policy Disclosure Forms be maintained under the Florida replacement rule?
- Group life proceeds are payable to a named beneficiary of a Florida insured who died owing debts. How does the creditor exemption apply?
- How does the exception for nonpayment of premium work under Florida's incontestability provisions?
- On converting Florida group life coverage, which class of risk determines the individual policy's premium?
- On converting group life coverage in Florida, what premium and policy form apply to the individual contract?
- The current Florida replacement rule implements which two provisions most directly relevant to a life agent?
- Two Florida policyowners pay premiums on different schedules, one monthly and one annually. How does the statutory grace period compare?
- Under a Florida group life policy, who is entitled to the statutory grace period?
- What does the current Florida replacement rule require an insurer to put in place regarding churning?
- What grace period must a Florida group life insurance policy provide for a premium other than the first?
- What makes the Florida group conversion right valuable to a person whose health has deteriorated?
- What minimum grace period must a Florida life insurance contract allow for payment of a premium after the first?
- What practical consequence follows from naming a beneficiary other than the estate on a Florida life policy?
- What problem is Florida's secondary addressee requirement designed to address?
- What separates churning from twisting under Florida law?
- What triggers the twenty-day payment clock in section 627.4265?
- Where does Florida set out the provisions a group life contract is required to contain?
- Where the Florida voiding rule applies, how are the proceeds distributed?
- Which circumstance keeps a former spouse's beneficiary designation effective under section 732.703?
- Which currently effective Florida rule sets out the duties of the replacing insurer?
- Which Florida life contracts fall within the secondary addressee lapse notice requirement?
- Which Florida section carries the Standard Nonforfeiture Law for life insurance?
- Which Florida section is devoted to group life insurance for dependants?
- Which Florida section states that group contracts and plans of self-insurance must meet the group requirements?
- Which items does Florida require an agent's pre-surrender disclosure to address?
- Which of these is among the exceptions section 732.703 lists to the voiding of a former spouse's interest?
- Which of these is recognised in Florida's group life statutes as an eligible group?
- Which pair of Florida sections governs borrowing against a policy and the minimum values available if premiums stop?
- Which rule governs what the insurer whose policy may be replaced must do?
- Which section of Florida's group life provisions governs employee groups?
- Which statement about dependent coverage under a Florida group life plan is accurate?
- Who is responsible for providing the Policy Disclosure Form under the current Florida replacement rule?
- Whose annuity contracts does the Florida creditor exemption in section 222.14 protect?
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