State RegulationsFL specificDifficulty 2/5
A Miami agent delivers the Buyer's Guide but forgets the Policy Summary, and the insurer accepts the initial premium on an ordinary individual life policy with no unconditional refund provision. What is the effect?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 626.99(4)(a), the insurer must deliver both the Buyer's Guide and the Policy Summary before accepting the initial premium unless the policy provides an unconditional refund for at least 14 days. Because this policy has no refund provision, accepting the premium without the Policy Summary breached the statutory disclosure condition, and the agent and insurer face DFS scrutiny for the incomplete delivery.
Why the other options are wrong
- B) The statute requires both documents together; delivering only the Buyer's Guide leaves the statutory condition unsatisfied.
- C) No 30-day cure window exists; the disclosure must precede acceptance of the initial premium absent a qualifying refund provision.
- D) A signed application does not waive the insurer's disclosure duty under 626.99(4)(a).
Memory hook
Both or nothing: Guide plus Summary before the premium.