FLORIDA HEALTH INSURANCE 2-40 – PRACTICE EXAM | QUESTIONS
AND ANSWERS | VERIFIED QUESTIONS AND ANSWERS | GRADED A+
| LATEST UPDATE 2026
1. Which type of health insurance policy pays benefits directly to the insured regardless of
actual medical expenses?
A. Major medical
B. Indemnity
C. Managed care
D. HMO
Correct Answer: B – Indemnity
Indemnity policies pay a fixed dollar amount per service, not based on actual expenses incurred.
2. In Florida, who regulates health insurance agents?
A. Florida Legislature
B. National Association of Insurance Commissioners
C. Florida Department of Financial Services
D. Office of Insurance Regulation
Correct Answer: C – Florida Department of Financial Services
DFS is responsible for licensing and regulating insurance agents in Florida.
3. What provision prevents adverse selection against the insurer?
A. Incontestability
B. Consideration
C. Guaranteed renewability
D. Insurability clause
Correct Answer: D – Insurability clause
This clause requires evidence of insurability for certain changes, preventing adverse selection.
4. Which rider waives premium payments during disability?
A. Accidental death rider
B. Payor benefit rider
,C. Guaranteed insurability rider
D. Cost of living rider
Correct Answer: B – Payor benefit rider
This rider waives premiums when the insured becomes disabled.
5. What is the minimum grace period for monthly premium policies in Florida?
A. 7 days
B. 10 days
C. 15 days
D. 31 days
Correct Answer: B – 10 days
Florida law requires at least a 10-day grace period for monthly premium payments.
6. Which plan typically requires referrals to see specialists?
A. PPO
B. POS
C. HMO
D. Indemnity
Correct Answer: C – HMO
HMOs use a primary care physician (PCP) who controls referrals.
7. What does HIPAA primarily protect?
A. Premium amounts
B. Medical privacy
C. Provider fees
D. Agent commissions
Correct Answer: B – Medical privacy
HIPAA safeguards the confidentiality of personal health information.
8. Which policy covers medical costs above a primary policy’s limits?
A. Blanket insurance
B. Supplemental insurance
, C. Limited benefit policy
D. Expense-incurred policy
Correct Answer: B – Supplemental insurance
Supplemental policies fill gaps or extend coverage beyond primary insurance.
9. Which factor affects health insurance premiums the MOST?
A. Hair color
B. Age
C. Education
D. Marital status
Correct Answer: B – Age
Older insureds statistically have higher medical costs.
10. What does “coinsurance” refer to?
A. Fixed dollar amount paid by insured
B. Percentage of covered expenses paid by insured
C. Premium sharing between insurers
D. Deductible accumulation
Correct Answer: B – Percentage of covered expenses paid by insured
Coinsurance splits costs between insurer and insured after the deductible.
11. Which health policy provision limits how long a claim can be disputed?
A. Free look
B. Grace period
C. Incontestability
D. Entire contract
Correct Answer: C – Incontestability
After a specified time, usually 2 years, the insurer cannot contest statements except fraud.
12. What is the primary purpose of a deductible?
A. Increase coverage
B. Reduce moral hazard
AND ANSWERS | VERIFIED QUESTIONS AND ANSWERS | GRADED A+
| LATEST UPDATE 2026
1. Which type of health insurance policy pays benefits directly to the insured regardless of
actual medical expenses?
A. Major medical
B. Indemnity
C. Managed care
D. HMO
Correct Answer: B – Indemnity
Indemnity policies pay a fixed dollar amount per service, not based on actual expenses incurred.
2. In Florida, who regulates health insurance agents?
A. Florida Legislature
B. National Association of Insurance Commissioners
C. Florida Department of Financial Services
D. Office of Insurance Regulation
Correct Answer: C – Florida Department of Financial Services
DFS is responsible for licensing and regulating insurance agents in Florida.
3. What provision prevents adverse selection against the insurer?
A. Incontestability
B. Consideration
C. Guaranteed renewability
D. Insurability clause
Correct Answer: D – Insurability clause
This clause requires evidence of insurability for certain changes, preventing adverse selection.
4. Which rider waives premium payments during disability?
A. Accidental death rider
B. Payor benefit rider
,C. Guaranteed insurability rider
D. Cost of living rider
Correct Answer: B – Payor benefit rider
This rider waives premiums when the insured becomes disabled.
5. What is the minimum grace period for monthly premium policies in Florida?
A. 7 days
B. 10 days
C. 15 days
D. 31 days
Correct Answer: B – 10 days
Florida law requires at least a 10-day grace period for monthly premium payments.
6. Which plan typically requires referrals to see specialists?
A. PPO
B. POS
C. HMO
D. Indemnity
Correct Answer: C – HMO
HMOs use a primary care physician (PCP) who controls referrals.
7. What does HIPAA primarily protect?
A. Premium amounts
B. Medical privacy
C. Provider fees
D. Agent commissions
Correct Answer: B – Medical privacy
HIPAA safeguards the confidentiality of personal health information.
8. Which policy covers medical costs above a primary policy’s limits?
A. Blanket insurance
B. Supplemental insurance
, C. Limited benefit policy
D. Expense-incurred policy
Correct Answer: B – Supplemental insurance
Supplemental policies fill gaps or extend coverage beyond primary insurance.
9. Which factor affects health insurance premiums the MOST?
A. Hair color
B. Age
C. Education
D. Marital status
Correct Answer: B – Age
Older insureds statistically have higher medical costs.
10. What does “coinsurance” refer to?
A. Fixed dollar amount paid by insured
B. Percentage of covered expenses paid by insured
C. Premium sharing between insurers
D. Deductible accumulation
Correct Answer: B – Percentage of covered expenses paid by insured
Coinsurance splits costs between insurer and insured after the deductible.
11. Which health policy provision limits how long a claim can be disputed?
A. Free look
B. Grace period
C. Incontestability
D. Entire contract
Correct Answer: C – Incontestability
After a specified time, usually 2 years, the insurer cannot contest statements except fraud.
12. What is the primary purpose of a deductible?
A. Increase coverage
B. Reduce moral hazard
