State RegulationsFL specificDifficulty 2/5
Which provision, if included in a Florida individual life policy, would violate Florida's standard provision requirements?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 627.453, the grace period for any premium after the first must be at least 30 days, and under Chapter 627, Florida Statutes, policy provisions cannot contract below the statutory minima that protect policyowners. A short grace period is therefore a prohibited provision, while longer-than-minimum grace periods, generous refund rights, and policy loans under Fla. Stat. 627.458 are all lawful.
Why the other options are wrong
- B) Provisions more favorable to the insured than the statute requires are permitted; only sub-minimum provisions are prohibited.
- C) An unconditional refund right of at least 14 days is a consumer-friendly delivery condition, not a prohibited provision.
- D) Policy loans against cash value are expressly contemplated by Fla. Stat. 627.458.
Memory hook
Never shorter than the floor: 30-day grace is the minimum.