The national guide explains the standard life provisions, nonforfeiture and dividend options, settlement options and riders. Florida's required life provisions are in Fla. Stat. 627.452 to 627.4615. Replacement is governed by Rules 69B-151 and 69O-151, and creditor protection by Chapter 222. Each Florida policy must include every standard provision, or one the Office of Insurance Regulation finds more favorable to the policyholder (627.452).

Required provisions

• Interest on death claims: lump-sum payments include interest from the date the insurer receives proof of death, at a rate at least equal to Moody's corporate bond yield average (627.4615).
• Agent authority: a policy may say that no agent can change or waive its terms (627.460).
• Assignments: a policy may be made assignable or not assignable. Paying according to the policy discharges the insurer unless it had written notice of a conflicting claim (627.422, 627.423).

Delivery, free look and lapse notices

• Delivery: every policy must be delivered no later than 60 days after coverage takes effect (627.421).
• Buyer's guide and policy summary: delivered before the first premium is accepted, unless the policy has an unconditional refund (free look) of at least 14 days (626.99(4)(a)). Failing to deliver them counts as misrepresentation.
• Lapse notices:
  • Seniors: a policy on an insured 64 or older that has been in force at least a year can't lapse for nonpayment unless notice is mailed at least 21 days before lapse. It goes to the owner and any secondary addressee the owner named. Applicants must be told they can name one (627.4555).
  • The agent of record also gets notice 21 days before lapse, unless an exception applies.
• HIV: life benefits can't be denied because death resulted from HIV, except under a preexisting-condition clause (627.429(5)(c)).

Beneficiaries and creditors

• Creditors:
  • Death proceeds go to the named beneficiary free of the insured's creditors, unless they are payable to the insured's estate (222.13).
  • Cash values are also exempt from the owner's creditors (222.14).
• Divorce: a designation of a former spouse made before the divorce becomes void. The benefit passes as if the former spouse had died first, unless a later designation or federal law says otherwise (732.703).
• Slayer rule: a beneficiary who unlawfully and intentionally kills the insured forfeits the benefit (732.802).
• Agents as beneficiaries: a life agent may not be named beneficiary on a policy he sells to a non-family member unless he has an insurable interest. He also may not act as the client's trustee, guardian or attorney-in-fact, with limited exceptions (626.798).

Replacement (Rules 69B-151.006, 69O-151.007 and .008)

• The agent:
  • presents the replacement notice, signed by the applicant and the agent, no later than when the application is taken
  • leaves copies of all sales proposals with the applicant and sends copies to the replacing insurer
• The replacing insurer sends the existing insurer a copy of the notice immediately.
• The existing insurer provides the comparative information form within 10 days.
• Exempt: conversions and contractual changes with the same insurer, approved internal replacement programs, and term conversions among affiliates (627.4605).
• Recommending a surrender: the consumer must get written information on surrender charges, lost guarantees, tax consequences and forfeited benefits (627.4553).

Exam traps

• Grace: 30 days. Reinstatement: 3 years. Incontestability: 2 years, with no fraud exception.
• The buyer's guide may come with the policy only if there is a 14-day free look. Annuities have a separate 21-day free look.
• The senior lapse notice goes out 21 days before lapse, for insureds 64+.
• A divorce revokes a pre-divorce designation of the former spouse.