State RegulationsFL specificDifficulty 2/5
A Florida agent meets with a prospect who is ready to pay the initial premium on an ordinary individual life policy. What must happen first, unless the policy carries at least 14 days of unconditional refund?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Fla. Stat. 626.99(4)(a), the Buyer's Guide and Policy Summary must be delivered before the insurer accepts the initial premium, unless the policy provides an unconditional refund of premium for at least 14 days. Collecting the premium first and educating the consumer later reverses the statutory order of the transaction. Neither DFS pre-approval of the sale nor any medical examination is a condition of this disclosure rule.
Why the other options are wrong
- A) A medical exam, if any, is an underwriting matter and is not the condition that replaces the disclosure requirement.
- B) DFS does not pre-approve individual life sales; the statutory condition is document delivery.
- D) Employer classes are a group insurance concept and are irrelevant to an individual life sale.
Memory hook
Guide and summary before the check - or 14 days of refund.