Life Insurance Florida Statutes, Rules,
and Regulations Exam Questions and
Answers
Duties of Replacing Insurers - ANSWER-• Obtain a list of the applicant's life
insurance contracts to be replaced
• Send the applicant a completed Comparative Information Form with information
about the proposed insurance within 5 working days
• Send a copy of the replacement notice to the existing insurer immediately
• Keep copies of replacement notices, statement, any sales material, and the
application for at least 3 years
Duties of Existing Insurers - ANSWER-• Send a policy summary to the policyowner
within 10 days of receiving written communication of replacement (upon request)
• Keep all replacement notifications for either 3 years of the examination by the
Department, whichever is later
Free-look Period - ANSWER-14 days
Grace Period - ANSWER-• Not less than 30 days for individual policies and annuities
• If insured dies during this period, death benefit is paid out minus any premiums due
Secondary Addressee - ANSWER-• Coverage for elderly insureds (age 64 or older)
cannot lapse for nonpayment of premium after expiration of the grace period without
a notification to a specified secondary addressee, after the policy has been in force
for 1 year
• If a policy has a grace period for more than 51 days, the notice must be given to the
policyowner and the secondary addressee at least 21 days before the expiration of
the grace period
Policy Loans - ANSWER-• Max interest rate on a fixed rate loan: 10% annually
• Adjustable loans interest rates may vary based on the published monthly average
Non-forfeiture Options - ANSWER-• Guarantees benefits that cannot be forfeited
(lost) by the policyowner
• Reduced paid-up option becomes effective unless otherwise specified by the
policyowner
- Payment due within 60 days
Protection of Beneficiaries from Creditors - ANSWER-• Spendthrift Clause - protects
proceeds while being held by the insurer from the claims of the beneficiary's
creditors; does not apply to lump-sum payments
Competent Parties - ANSWER-- Must be of legal age (age 15 in Florida)
- Must not be under the influence of drugs or alcohol when entering into a contract
and Regulations Exam Questions and
Answers
Duties of Replacing Insurers - ANSWER-• Obtain a list of the applicant's life
insurance contracts to be replaced
• Send the applicant a completed Comparative Information Form with information
about the proposed insurance within 5 working days
• Send a copy of the replacement notice to the existing insurer immediately
• Keep copies of replacement notices, statement, any sales material, and the
application for at least 3 years
Duties of Existing Insurers - ANSWER-• Send a policy summary to the policyowner
within 10 days of receiving written communication of replacement (upon request)
• Keep all replacement notifications for either 3 years of the examination by the
Department, whichever is later
Free-look Period - ANSWER-14 days
Grace Period - ANSWER-• Not less than 30 days for individual policies and annuities
• If insured dies during this period, death benefit is paid out minus any premiums due
Secondary Addressee - ANSWER-• Coverage for elderly insureds (age 64 or older)
cannot lapse for nonpayment of premium after expiration of the grace period without
a notification to a specified secondary addressee, after the policy has been in force
for 1 year
• If a policy has a grace period for more than 51 days, the notice must be given to the
policyowner and the secondary addressee at least 21 days before the expiration of
the grace period
Policy Loans - ANSWER-• Max interest rate on a fixed rate loan: 10% annually
• Adjustable loans interest rates may vary based on the published monthly average
Non-forfeiture Options - ANSWER-• Guarantees benefits that cannot be forfeited
(lost) by the policyowner
• Reduced paid-up option becomes effective unless otherwise specified by the
policyowner
- Payment due within 60 days
Protection of Beneficiaries from Creditors - ANSWER-• Spendthrift Clause - protects
proceeds while being held by the insurer from the claims of the beneficiary's
creditors; does not apply to lump-sum payments
Competent Parties - ANSWER-- Must be of legal age (age 15 in Florida)
- Must not be under the influence of drugs or alcohol when entering into a contract
