Florida 2-40 Health, Life & Variable Annuity Agent Exam
2026/2027
85 Actual Exam Questions with Verified Correct Answers
EXAM OVERVIEW
This licensing readiness assessment prepares candidates for the Florida Department of
Financial Services (DFS) 2-40 Health, Life & Variable Annuity Agent Licensing
Examination. All questions align with the 2026/2027 Florida Insurance Code, Florida
Administrative Code, and federal regulations applicable in Florida.
Passing Standard: 70% (60/85 questions)
DOMAIN 1: TYPES OF POLICIES, RIDERS, AND RELATED TERMS (25
Questions)
Q1: Under Florida law, which of the following is required to be included in all individual
hospital and medical expense insurance policies?
A. A provision for coverage of experimental treatments.
B. A provision for continuation of coverage for newborn children from the moment of
birth. [CORRECT]
C. A waiver of premium rider for disability.
D. A guarantee of insurability for dependent children.
Correct Answer: B
,Rationale: B is correct. [CORRECT] Florida Statutory Requirement: Florida Statute
627.6575 mandates that every individual health insurance policy that provides coverage
for family members must include coverage for newborn children from birth. Coverage
includes injuries, sickness, and necessary care for congenital defects. The coverage
must be identical to that provided for other family members. Why others are wrong: (A)
Coverage for experimental treatments is not universally required. (C) Waiver of premium
is an optional rider, not a mandated policy provision. (D) Guarantee of insurability is a
feature of some policies/riders but not a statutory requirement for all.
Q2: A Florida resident purchases a Medicare Supplement (Medigap) policy. Under
Florida Statute 627.6699, which of the following is TRUE regarding pre-existing
condition limitations?
A. Florida allows 12-month pre-existing condition waiting periods for all Medigap
policies.
B. Florida prohibits pre-existing condition waiting periods for Medigap policies when the
applicant has had prior creditable coverage. [CORRECT]
C. Pre-existing condition exclusions are permitted for up to 24 months in Florida.
D. Florida requires 6-month waiting periods for all pre-existing conditions.
Correct Answer: B
Rationale: B is correct. [CORRECT] Florida Medigap Protections: Florida Statute
627.6699(6) implements federal Medigap protections and prohibits pre-existing
condition waiting periods when the applicant has 6 months of prior creditable coverage
and applies during their open enrollment period or has guaranteed issue rights. Florida
provides strong consumer protections aligning with federal standards. Why others are
,wrong: (A, C, D) These timeframes exceed what Florida law permits for applicants with
creditable coverage; federal law limits pre-existing condition waiting periods to 6
months maximum when permitted, and Florida ensures robust protections.
Q3: Which type of health insurance plan requires members to select a primary care
physician (PCP) and obtain referrals for specialist care?
A. Preferred Provider Organization (PPO)
B. Health Maintenance Organization (HMO) [CORRECT]
C. Indemnity plan
D. Point of Service (POS) plan
Correct Answer: B
Rationale: B is correct. [CORRECT] HMO Structure: HMOs are staff or network model
plans that require members to: select a PCP, obtain referrals for specialist care, and
receive care only within the network (except emergencies). This is the gatekeeper
model. Why others are wrong: (A) PPOs allow self-referral to specialists, with better
benefits for in-network care. (C) Indemnity plans have no network restrictions or PCP
requirements. (D) POS plans combine features; they have PCPs but allow out-of-network
self-referral with higher costs.
Q4: Under Florida's Small Group Health Insurance Reform Act (Florida Statute 627.669),
a "small employer" is defined as an employer with:
A. 1-25 employees
B. 1-50 employees [CORRECT]
, C. 1-100 employees
D. 2-100 employees
Correct Answer: B
Rationale: B is correct. [CORRECT] Florida Small Group Definition: Florida Statute
627.669(1)(b) defines a small employer as one with 1-50 employees (including the
owner if actively working). This aligns with the ACA definition adopted by Florida. Small
group market reforms apply to these employers, including guaranteed issue and
modified community rating. Why others are wrong: (A) 25 was the pre-ACA threshold in
some states. (C, D) 100 employees is the large group threshold; Florida uses 1-50 for
small group.
Q5: A Long-Term Care (LTC) insurance policy in Florida must offer which of the
following mandatory provisions?
A. Coverage for cosmetic surgery
B. An inflation protection option for purchasers under age 65 [CORRECT]
C. Unlimited lifetime benefits for all policies
D. Coverage for acute hospital stays only
Correct Answer: B
Rationale: B is correct. [CORRECT] Florida LTC Requirements: Florida Statute 627.9406
and Rule 69O-170.015 require LTC insurers to offer inflation protection to applicants
under age 65. This helps benefits keep pace with rising care costs. The applicant may
decline in writing. Why others are wrong: (A) Cosmetic surgery is never covered in LTC.
2026/2027
85 Actual Exam Questions with Verified Correct Answers
EXAM OVERVIEW
This licensing readiness assessment prepares candidates for the Florida Department of
Financial Services (DFS) 2-40 Health, Life & Variable Annuity Agent Licensing
Examination. All questions align with the 2026/2027 Florida Insurance Code, Florida
Administrative Code, and federal regulations applicable in Florida.
Passing Standard: 70% (60/85 questions)
DOMAIN 1: TYPES OF POLICIES, RIDERS, AND RELATED TERMS (25
Questions)
Q1: Under Florida law, which of the following is required to be included in all individual
hospital and medical expense insurance policies?
A. A provision for coverage of experimental treatments.
B. A provision for continuation of coverage for newborn children from the moment of
birth. [CORRECT]
C. A waiver of premium rider for disability.
D. A guarantee of insurability for dependent children.
Correct Answer: B
,Rationale: B is correct. [CORRECT] Florida Statutory Requirement: Florida Statute
627.6575 mandates that every individual health insurance policy that provides coverage
for family members must include coverage for newborn children from birth. Coverage
includes injuries, sickness, and necessary care for congenital defects. The coverage
must be identical to that provided for other family members. Why others are wrong: (A)
Coverage for experimental treatments is not universally required. (C) Waiver of premium
is an optional rider, not a mandated policy provision. (D) Guarantee of insurability is a
feature of some policies/riders but not a statutory requirement for all.
Q2: A Florida resident purchases a Medicare Supplement (Medigap) policy. Under
Florida Statute 627.6699, which of the following is TRUE regarding pre-existing
condition limitations?
A. Florida allows 12-month pre-existing condition waiting periods for all Medigap
policies.
B. Florida prohibits pre-existing condition waiting periods for Medigap policies when the
applicant has had prior creditable coverage. [CORRECT]
C. Pre-existing condition exclusions are permitted for up to 24 months in Florida.
D. Florida requires 6-month waiting periods for all pre-existing conditions.
Correct Answer: B
Rationale: B is correct. [CORRECT] Florida Medigap Protections: Florida Statute
627.6699(6) implements federal Medigap protections and prohibits pre-existing
condition waiting periods when the applicant has 6 months of prior creditable coverage
and applies during their open enrollment period or has guaranteed issue rights. Florida
provides strong consumer protections aligning with federal standards. Why others are
,wrong: (A, C, D) These timeframes exceed what Florida law permits for applicants with
creditable coverage; federal law limits pre-existing condition waiting periods to 6
months maximum when permitted, and Florida ensures robust protections.
Q3: Which type of health insurance plan requires members to select a primary care
physician (PCP) and obtain referrals for specialist care?
A. Preferred Provider Organization (PPO)
B. Health Maintenance Organization (HMO) [CORRECT]
C. Indemnity plan
D. Point of Service (POS) plan
Correct Answer: B
Rationale: B is correct. [CORRECT] HMO Structure: HMOs are staff or network model
plans that require members to: select a PCP, obtain referrals for specialist care, and
receive care only within the network (except emergencies). This is the gatekeeper
model. Why others are wrong: (A) PPOs allow self-referral to specialists, with better
benefits for in-network care. (C) Indemnity plans have no network restrictions or PCP
requirements. (D) POS plans combine features; they have PCPs but allow out-of-network
self-referral with higher costs.
Q4: Under Florida's Small Group Health Insurance Reform Act (Florida Statute 627.669),
a "small employer" is defined as an employer with:
A. 1-25 employees
B. 1-50 employees [CORRECT]
, C. 1-100 employees
D. 2-100 employees
Correct Answer: B
Rationale: B is correct. [CORRECT] Florida Small Group Definition: Florida Statute
627.669(1)(b) defines a small employer as one with 1-50 employees (including the
owner if actively working). This aligns with the ACA definition adopted by Florida. Small
group market reforms apply to these employers, including guaranteed issue and
modified community rating. Why others are wrong: (A) 25 was the pre-ACA threshold in
some states. (C, D) 100 employees is the large group threshold; Florida uses 1-50 for
small group.
Q5: A Long-Term Care (LTC) insurance policy in Florida must offer which of the
following mandatory provisions?
A. Coverage for cosmetic surgery
B. An inflation protection option for purchasers under age 65 [CORRECT]
C. Unlimited lifetime benefits for all policies
D. Coverage for acute hospital stays only
Correct Answer: B
Rationale: B is correct. [CORRECT] Florida LTC Requirements: Florida Statute 627.9406
and Rule 69O-170.015 require LTC insurers to offer inflation protection to applicants
under age 65. This helps benefits keep pace with rising care costs. The applicant may
decline in writing. Why others are wrong: (A) Cosmetic surgery is never covered in LTC.
