State RegulationsFL specificDifficulty 1/5
Which statement about prohibited policy provisions in Florida life insurance is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 627, Florida Statutes, life insurance policy provisions are policed for unfairness: provisions that are unjust, unfair, or inequitable to insureds - or that encourage litigation - are prohibited, and the Office of Insurance Regulation scrutinizes policy forms before they reach the market. This is a consumer protection built into the standard-provisions framework, not something left to agents or post-claim review.
Why the other options are wrong
- A) Agents have no power to approve policy provisions; that is the insurer's and regulator's domain.
- C) Provision rules apply to all policies regardless of the language in which they are printed.
- D) Form review happens before policies are issued, not only after claims are denied.
Memory hook
Unfair to the insured = prohibited in the form.