Florida Laws Life Insurance

Front 1

The assignment provision sets for the procedures that a policyowner must follow in order to transfer ownership rights to a third party. Typically, policyowners must notify the insurer in writing of the assignment.

Back 1

Assignment provision

Front 2

If a person owns industrial life insurance policies with one insurer and the combined face value of all the policies exceeds $3,000, the policyowner has the option of converting these policies into one ordinary life insurance policy. The policyowner is not required to provide evidence of insurability.

Back 2

Right to convert provision

Front 3

The insurance contract consists of the policy and the application for insurance. All agreements between the insurer and the policyowner are contained within these documents. In addition, all statements contained in the application are considered representations and not warranties.After a policy has been in force for two years, it becomes incontestable with respect to the truthfulness of any statements that the policyowner made in the insurance application.

Back 3

Incontestability

Front 4

Life insurance proceeds that are payable to a named beneficiary are exempt from the claims of the insured's creditors. Proceeds that are payable to an insured's estate, executors, or administrators become part of the estate.

Back 4

Protection from creditors

Front 5

Insurers can charge a fixed interest rate of up to 10 percent annual interest on policy loans.

Back 5

Policy loan interest rate

Front 6

The act dictates the order in which insurance proceeds will be paid, if the insured and beneficiary have died simultaneously and the insured's will is silent regarding who is presumed to have survived the other in such a situation.

According to the act, if the insured and the beneficiary of a life or accident insurance policy have died and there is insufficient evidence that they died other than simultaneously, the proceeds will be distributed as if the insured had survived the beneficiary.

Back 6

Uniform Simultaneous act

Front 7

A common disaster provision can be added to a policy to ensure that the proceeds do not pass to the primary beneficiary in this case. According to this provision, the primary beneficiary must outlive the insured for a specified length of time (e.g., 10, 15, or 30 days) in the event of simultaneous (or near simultaneous) death. Otherwise, the proceeds will be paid to a contingent beneficiary or to the insured's estate.

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Common Disaster provision

Front 8

Before a life insurance policy that has been in force for at least one year and that insures a person age 64 or older can lapse for nonpayment of premium, an additional notice must be given to the policyowner and a third party designated by the owner. The insurer must send this notice after the grace period has expired and at least 21 days before the date of lapse.

Back 8

Graced Period

Front 9

Some life insurance policy applications may include an option that allows an automatic policy loan to be taken against the policy's cash value if the insured fails to pay the premium. Unless the applicant elects not to include this provision, it will be included in the policy.

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Automatic Policy Loan

Front 10

pays dividends to policyowners from company surplus

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Participating Policy

Front 11

does not share in the insurer's surplus earnings and consequently does not pay dividends.

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Non participating policy

Front 12

Reduce Premium payments

purchase paid-up additions to the policy's face value;

accumulate at interest for future use;

purchase one-year term insurance.

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Dividend options

Front 13

Viatical settlement providers must be licensed by the Office of Insurance Regulation. To receive a license, a provider must pay a licensing fee and submit an application

Back 13

Viatical settlement provider

Front 14

A person must be a licensed life agent in order to act as a viatical settlement broker.

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Viatical settlement broker