Florida 2-40 Health Insurance License
Exam – Florida Department of Financial
Services – Practice Questions and
Answers
Introduction:
This document provides an extensive set of practice questions
and correct answers covering the core content tested on the
Florida 2-40 Health Insurance License Exam. Topics include
underwriting, policy provisions, risk classifications, taxation
of health insurance, managed care, disability income, and
contract elements, making it ideal for exam review and final
preparation.
Exam Questions and Answers:
occupational coverage ---Correct Answer---provides benefits
for illness, injury or disability resulting from accidents that
occur on or off the job
,nonoccupational coverage ---Correct Answer---only covers
claims that result from accidents or sickness occurring off the
job
personally owned health insurance ---Correct Answer---
premium payments on personally owned disability income
policies are non deductible by the individual. however,
desability income benefits are recieved income tax free by the
individual.
in either medical expense insurance policies or long term care
insurance policies, premiums paid by the individual
policyholder are deductible as a medical expense to the extent
that when added to all other unreimbursed medical expenses,
the total exceeds 7.5% of the taxpayers adjusted gross income.
however, there is a limit on the amount of premium that can
be deducted depending on the age of the insured (taxpayer) at
the end of the year. the IRS sets annual limits for that amount,
and any premium above these limits will not be considered a
medical expense, and therefore, cannot be tax deductible. the
provision only applies if the insured itemizes these deductions
on his/her tax return
employer provided health insurance-premiums ---Correct
Answer---paid by the employer for disability income insurance
, for its employees are deductible as a business expense and are
not covered as taxable income to the employee.
employer provided health insurance- benefits ---Correct
Answer---received by an employee that are attributable to
employer contributions are fully taxable to the employee as
income
when the employer and employee share in premium
contributions, the employees contribution is not deductible;
however, benefits received by the employee are attribuible to
their portion of the contribution are not taxable as income. the
taxation of income received by the employee would depend on
the type of a group plan:
- noncontributory- meaning the employer pays the entire cost,
so the income benefits are included in the employees gross
income and taxed as ordinary income
- fully contributory- meaning that the employee pays the
entire cost, so the income benefits are received income tax free
by the employee
- partially contributory - meaning that the cost is paid
partially by the employee and by the employer. in this case the
portion paid by the employee is received income tax free and
Exam – Florida Department of Financial
Services – Practice Questions and
Answers
Introduction:
This document provides an extensive set of practice questions
and correct answers covering the core content tested on the
Florida 2-40 Health Insurance License Exam. Topics include
underwriting, policy provisions, risk classifications, taxation
of health insurance, managed care, disability income, and
contract elements, making it ideal for exam review and final
preparation.
Exam Questions and Answers:
occupational coverage ---Correct Answer---provides benefits
for illness, injury or disability resulting from accidents that
occur on or off the job
,nonoccupational coverage ---Correct Answer---only covers
claims that result from accidents or sickness occurring off the
job
personally owned health insurance ---Correct Answer---
premium payments on personally owned disability income
policies are non deductible by the individual. however,
desability income benefits are recieved income tax free by the
individual.
in either medical expense insurance policies or long term care
insurance policies, premiums paid by the individual
policyholder are deductible as a medical expense to the extent
that when added to all other unreimbursed medical expenses,
the total exceeds 7.5% of the taxpayers adjusted gross income.
however, there is a limit on the amount of premium that can
be deducted depending on the age of the insured (taxpayer) at
the end of the year. the IRS sets annual limits for that amount,
and any premium above these limits will not be considered a
medical expense, and therefore, cannot be tax deductible. the
provision only applies if the insured itemizes these deductions
on his/her tax return
employer provided health insurance-premiums ---Correct
Answer---paid by the employer for disability income insurance
, for its employees are deductible as a business expense and are
not covered as taxable income to the employee.
employer provided health insurance- benefits ---Correct
Answer---received by an employee that are attributable to
employer contributions are fully taxable to the employee as
income
when the employer and employee share in premium
contributions, the employees contribution is not deductible;
however, benefits received by the employee are attribuible to
their portion of the contribution are not taxable as income. the
taxation of income received by the employee would depend on
the type of a group plan:
- noncontributory- meaning the employer pays the entire cost,
so the income benefits are included in the employees gross
income and taxed as ordinary income
- fully contributory- meaning that the employee pays the
entire cost, so the income benefits are received income tax free
by the employee
- partially contributory - meaning that the cost is paid
partially by the employee and by the employer. in this case the
portion paid by the employee is received income tax free and
