Florida Life & Annuity Insurance Law — Florida Insurance Law — Life & Health Practice Test
26 questions in this topic · 26 drawn at random this round
Under Fla. Stat. §222.14, the cash surrender value of a life insurance policy owned by a Florida resident insuring that resident's own life is:
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This Florida Insurance Law — Life & Health Florida Life & Annuity Insurance Law practice set has 26 practice questions based on the official exam materials, each with an instant explanation.
Sample questions
Three questions from the Florida Life & Annuity Insurance Law bank with the correct answer and an explanation. The practice quiz above draws 26 questions at random from the same bank.
In marketing a life insurance or annuity product in Florida, an agent's basic responsibility to the applicant includes:
- Providing all legally required disclosures and dealing honestly and fairly with both the applicant and the insurer — Correct answer
- Guaranteeing that the policy's cash value will outperform any comparable investment product
- Recommending whichever product pays the agent the highest commission, regardless of the client's needs
- Withholding the Policy Summary until after the free-look period has already expired
Explanation: Florida agents owe applicants honest, accurate representation of the product and compliance with all statutory disclosure duties; they may never guarantee investment performance, choose products based on commission alone, or delay required disclosures (Fla. Stat. ch. 626, ch. 627).
Handbook: Florida Life & Annuity Insurance Law — Agent Responsibilities
Under Florida's life insurance solicitation statute, the 'Buyer's Guide' furnished to a prospective purchaser is intended to:
- Explain life insurance concepts generally and help the buyer compare policies across companies, using a form that follows the NAIC Life Insurance Disclosure Model — Correct answer
- Set the exact premium every Florida insurer must charge for a given face amount
- Replace the Policy Summary and apply only to group annuity contracts
- Serve as an optional handout an agent may skip whenever the client already owns some life insurance
Explanation: Fla. Stat. §626.99 requires insurers soliciting life insurance in Florida to adopt and use a Buyer's Guide (in substantial compliance with the NAIC Life Insurance Disclosure Model Regulation) so consumers understand life insurance generally and can compare policies — it does not set prices and is not optional.
Handbook: Florida Life & Annuity Insurance Law — Disclosure: Buyer's Guide
The 'Policy Summary' required under Florida's life insurance solicitation statute (Fla. Stat. §626.99) is intended to:
- Give the applicant policy-specific information — such as premiums, cash values, and any illustrated dividends — for the particular policy actually being proposed — Correct answer
- Give industry-wide average cost comparisons across every company licensed in Florida
- Substitute for delivering the actual policy to the policyowner after issue
- Apply only to variable life insurance, never to traditional fixed life insurance
Explanation: Unlike the generic Buyer's Guide, the Policy Summary is specific to the proposed policy — it discloses that policy's premiums, cash values, and illustrated dividends (if any) so the applicant can evaluate the actual product being offered (Fla. Stat. §626.99).
Handbook: Florida Life & Annuity Insurance Law — Disclosure: Policy Summary