Florida Life Insurance
Accelerated benefits provision - ANS -if terminally ill, 75% death benefit before die
\Accidental Death Benefit Rider - ANS -provides an additional amount of insurance, usually
equal to the face amount of base policy, if death occurs under stated conditions
\Accumulation period - ANS -funds being paid into the annuity, in the form of payments by the
contract holder and interest earnings credited by the insurer
\Adjustable life - ANS -1) Face Amt, 2) Premium, 3) Plan type (Policy owner picks 2, Insurer
picks the 3rd.)
\Adjustable life policies - ANS -distinguished by flexibility that comes from combining term &
permanent ins into a single plan. Policy owner determines how much Face Amt protection is
needed & how much premium the policy owner wants to pay. The insurer selects the
appropriate plan to meet such needs
\Agent - ANS -also acts as a witness
\Annuity periods involved - ANS -accumulation period and payout or annuity period
\Annuity units - ANS -the basic measure & method by which the purchaser's annuity income is
determined
\Assignment Provision - ANS -life ins contract sets forth the procedure necessary for ownership
transfer.
\Assignment types - ANS -Absolute - transfer complete & irrevocable
Collateral - policy assigned to creditor as security or collateral for debt
\Automatic premium loan provision - ANS -authorizes insurer to withdraw from policy's cv to pay
premium due if has not been paid by end of grace period. No lapse in coverage.
\Basic Forms of Life Insurance - ANS -Straight whole life, limited pay whole life, single premium
whole life
\Buyers Guides - ANS -generic (explain various types of life insurance products, including
variable annuities)
\Can an agent divide a commission - ANS -only with an agent who is licensed and appointed
\Churning - ANS -Internal - replacing policies within the same company. Illegal if not in the best
interest for the client
\Coercion - ANS -apply physical or mental force or threat to persuade (the mafia)
\Concealment - ANS -failure by applicant to disclose a known material fact at time of application
\Conditional contract - ANS -the applicant and the company from this contract, contingent upon
conditions that exist at the time the application is signed (or when the medical exam is
completed, if req)
\Consideration Clause - ANS -value given in exchange for a contractual promise. Specifies the
amount and frequency of premium pmts to keep ins in force
\Contributory plan - ANS -group ins requires members to pay a portion of the premium
\Conversion provision - ANS -allows individual insured members to convert to an individual plan
w/o evidence of insurability, if their employment is terminated (usually the employee has a
limited period of time following termination (typically 31 days) in which to exercise the
conversion privilege.
, \Decreasing Coverage Level Premium - ANS -characterized by benefit amts that decrease
gradually over the term of protection (cover debt or mortgage)
\Dividend Options - ANS -Cash
Reduced premium pmt
Accumulate interest
Paid up additions
One year term
\Dividends - ANS -if fewer insureds have died than original estimate, company pays dividends
\Domestic insurer - ANS -company doing business in the state in which it is incorporated
\Entire Contract Provision - ANS -Riders, Application, Policy
Found at beg of policy states that the policy doc, the application (attached to the policy), and
any attached riders constitute the ENTIRE CONTRACT.
\Entities of state government involved in the regulation of the insurance business in FL - ANS
-State legislature, Dept of Fin Srvcs, Commissioner of the Office of Insurance Regulation, and
the state court system
\Equity indexed annuities (EIA) - ANS -a type of fixed annuity that offers the potential for higher
credited rates of return than the traditional counterparts and also guarantee the owner's pricipal
\ERISA - ANS -protect the rights of workers covered under an employer sponsored plan
\Fair Credit Reporting Act - ANS -Consumers have the right to question what is on their credit
report
\FICA - ANS -Made up of Social Security and Medicare
\Fiduciary - ANS -a person holds a special FINANCIAL trust and confidence (agent)
\Fixed Period Option - ANS -beneficiary gets equal amounts of $ at regular intervals over a
specified period of years
\FL Replacement Rule - ANS -Establishes the minimum standards that must be followed
\Flexible Premium Deferred Annuities (FPDA) - ANS -periodic payment annuities
\Florida - ANS -no min # of participants as long as the organization is eligible for group ins
\Foreign insurer - ANS -company licensed & doing business in states other than the one in
which it is incorporated
\Fraternal Benefit Societies - ANS -Non profit organization, lodge system that includes ritualistic
work, and maintain a rep form of gov with elected officers.
\Fraternal life insurance organization - ANS -operates as a corp, society, or association to
provide life ins primarily for the mutual benefit of its members and beneficiaries. Must have
rituals and representative form of government
\Fraud - ANS -Insurer reason to void a contract (2 years from date insurance issued)
\Free-Look Provision - ANS -14 days from policy delivery to rescind the contract
\Fudiciary - ANS -special financial trust
\Grace Period Provision - ANS -If ins dies during grace period & premium has not been paid, the
policy benefit is payable. However, the premium amt is deducted from the benefits paid to
beneficiary
\Guaranteed insurability rider - ANS -permits insured, at specified intervals in the future, to buy
specified amts of additional insurance w/o evidence of insurability
\How are benefits determined - ANS -Flat benefit
Employment position
Accelerated benefits provision - ANS -if terminally ill, 75% death benefit before die
\Accidental Death Benefit Rider - ANS -provides an additional amount of insurance, usually
equal to the face amount of base policy, if death occurs under stated conditions
\Accumulation period - ANS -funds being paid into the annuity, in the form of payments by the
contract holder and interest earnings credited by the insurer
\Adjustable life - ANS -1) Face Amt, 2) Premium, 3) Plan type (Policy owner picks 2, Insurer
picks the 3rd.)
\Adjustable life policies - ANS -distinguished by flexibility that comes from combining term &
permanent ins into a single plan. Policy owner determines how much Face Amt protection is
needed & how much premium the policy owner wants to pay. The insurer selects the
appropriate plan to meet such needs
\Agent - ANS -also acts as a witness
\Annuity periods involved - ANS -accumulation period and payout or annuity period
\Annuity units - ANS -the basic measure & method by which the purchaser's annuity income is
determined
\Assignment Provision - ANS -life ins contract sets forth the procedure necessary for ownership
transfer.
\Assignment types - ANS -Absolute - transfer complete & irrevocable
Collateral - policy assigned to creditor as security or collateral for debt
\Automatic premium loan provision - ANS -authorizes insurer to withdraw from policy's cv to pay
premium due if has not been paid by end of grace period. No lapse in coverage.
\Basic Forms of Life Insurance - ANS -Straight whole life, limited pay whole life, single premium
whole life
\Buyers Guides - ANS -generic (explain various types of life insurance products, including
variable annuities)
\Can an agent divide a commission - ANS -only with an agent who is licensed and appointed
\Churning - ANS -Internal - replacing policies within the same company. Illegal if not in the best
interest for the client
\Coercion - ANS -apply physical or mental force or threat to persuade (the mafia)
\Concealment - ANS -failure by applicant to disclose a known material fact at time of application
\Conditional contract - ANS -the applicant and the company from this contract, contingent upon
conditions that exist at the time the application is signed (or when the medical exam is
completed, if req)
\Consideration Clause - ANS -value given in exchange for a contractual promise. Specifies the
amount and frequency of premium pmts to keep ins in force
\Contributory plan - ANS -group ins requires members to pay a portion of the premium
\Conversion provision - ANS -allows individual insured members to convert to an individual plan
w/o evidence of insurability, if their employment is terminated (usually the employee has a
limited period of time following termination (typically 31 days) in which to exercise the
conversion privilege.
, \Decreasing Coverage Level Premium - ANS -characterized by benefit amts that decrease
gradually over the term of protection (cover debt or mortgage)
\Dividend Options - ANS -Cash
Reduced premium pmt
Accumulate interest
Paid up additions
One year term
\Dividends - ANS -if fewer insureds have died than original estimate, company pays dividends
\Domestic insurer - ANS -company doing business in the state in which it is incorporated
\Entire Contract Provision - ANS -Riders, Application, Policy
Found at beg of policy states that the policy doc, the application (attached to the policy), and
any attached riders constitute the ENTIRE CONTRACT.
\Entities of state government involved in the regulation of the insurance business in FL - ANS
-State legislature, Dept of Fin Srvcs, Commissioner of the Office of Insurance Regulation, and
the state court system
\Equity indexed annuities (EIA) - ANS -a type of fixed annuity that offers the potential for higher
credited rates of return than the traditional counterparts and also guarantee the owner's pricipal
\ERISA - ANS -protect the rights of workers covered under an employer sponsored plan
\Fair Credit Reporting Act - ANS -Consumers have the right to question what is on their credit
report
\FICA - ANS -Made up of Social Security and Medicare
\Fiduciary - ANS -a person holds a special FINANCIAL trust and confidence (agent)
\Fixed Period Option - ANS -beneficiary gets equal amounts of $ at regular intervals over a
specified period of years
\FL Replacement Rule - ANS -Establishes the minimum standards that must be followed
\Flexible Premium Deferred Annuities (FPDA) - ANS -periodic payment annuities
\Florida - ANS -no min # of participants as long as the organization is eligible for group ins
\Foreign insurer - ANS -company licensed & doing business in states other than the one in
which it is incorporated
\Fraternal Benefit Societies - ANS -Non profit organization, lodge system that includes ritualistic
work, and maintain a rep form of gov with elected officers.
\Fraternal life insurance organization - ANS -operates as a corp, society, or association to
provide life ins primarily for the mutual benefit of its members and beneficiaries. Must have
rituals and representative form of government
\Fraud - ANS -Insurer reason to void a contract (2 years from date insurance issued)
\Free-Look Provision - ANS -14 days from policy delivery to rescind the contract
\Fudiciary - ANS -special financial trust
\Grace Period Provision - ANS -If ins dies during grace period & premium has not been paid, the
policy benefit is payable. However, the premium amt is deducted from the benefits paid to
beneficiary
\Guaranteed insurability rider - ANS -permits insured, at specified intervals in the future, to buy
specified amts of additional insurance w/o evidence of insurability
\How are benefits determined - ANS -Flat benefit
Employment position
