State RegulationsFL specificDifficulty 3/5
An applicant in Florida is replacing an existing life insurance policy. The replacing insurer would like to collect the initial premium before giving the applicant the Buyer's Guide and Policy Summary. Under what condition may the insurer do this?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under the replacement rules (F.A.C. 69B-151.007), a replacing insurer may accept the initial premium before delivering the Buyer's Guide and Policy Summary only if the policy itself gives the buyer at least 10 days' unconditional refund right. Note that this 10-day figure lives only in the replacement-rule context; outside it, Fla. Stat. 626.99(4)(a) ties the 14-day figure to the Buyer's Guide delivery condition.
Why the other options are wrong
- B) Applicants cannot waive statutory delivery protections by signature; the rule instead requires an unconditional refund right in the policy.
- C) The rules expressly permit premium acceptance before delivery when the 10-day unconditional refund condition is met.
- D) The existing insurer receives notice but does not control the replacing insurer's premium acceptance.
Memory hook
Replacement context: 10 unconditional days buy early premium.