Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Specific to Life Insurance and AnnuitiesMedium
Under Florida law, what is the primary characteristic that distinguishes Industrial Life Insurance from Ordinary Life Insurance?
- AOrdinary policies require evidence of insurability, while industrial policies do not.
- BIndustrial policies are exclusively whole life, while ordinary can be term.
- CIndustrial policies have much smaller face amounts and premiums collected weekly or monthly.
- DIndustrial policies always include a waiver of premium rider, while ordinary policies do not.
Show answer & explanationAnswer & explanation
Correct answer: C. Industrial policies have much smaller face amounts and premiums collected weekly or monthly.
Industrial life insurance is characterized by very small face amounts, often less than $1,000-$2,500, and premiums collected frequently, typically weekly or monthly, often by an agent visiting the policyholder's home.
Why the other options are wrong
- A. Both types generally require some form of underwriting or evidence of insurability.
- B. Both industrial and ordinary life can be whole life; this is not the primary distinguishing factor.
- D. Riders are optional for both types and not a defining characteristic of industrial life insurance.
Industrial Life Insurance
A type of life insurance characterized by small face amounts ($1,000-$2,500), frequent (weekly/monthly) premium payments, and often sold and collected by agents door-to-door.
- Small death benefits
- Frequent premium payments
- Often used for burial expenses
Memory trick: Industrial: Small sums, frequent runs.