Florida 2-15 Life, Health & Variable Annuity
Exam 2026/2027 Definitive Study Guide
with Verified Answers – Pearson VUE State
Licensing Exam Prep
SECTION 1: GENERAL INSURANCE CONCEPTS & FLORIDA REGULATIONS
(15-20%)
Q1: At what point must a life insurance applicant be informed of their rights under the
Fair Credit Reporting Act?
A. Before the application is started
B. Upon completion of the application
C. At policy delivery
D. Only if the applicant requests investigation results
Correct Answer: B
Rationale: The Fair Credit Reporting Act requires that applicants be informed of their
rights upon completion of the application. This disclosure is mandatory when an
investigation into reputation or character may occur. [citation:1]
Q2: Who elects the governing body of a mutual insurance company?
,A. Shareholders
B. Policyholders
C. The board of directors
D. State insurance regulators
Correct Answer: B
Rationale: Mutual insurance companies are owned by their policyholders, who have
voting rights to elect the governing body. Stock insurance companies are owned by
shareholders. [citation:1]
Q3: An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the:
A. HIPAA
B. Fair Credit Reporting Act
C. Florida Insurance Code
D. McCarran-Ferguson Act
Correct Answer: B
Rationale: The Fair Credit Reporting Act requires disclosure when an investigation into
an applicant's reputation and character is conducted. HIPAA addresses health privacy.
[citation:1]
Q4: Which of the following represents multiple insurance companies?
,A. Captive agent
B. Independent agent
C. Career agent
D. Exclusive agent
Correct Answer: B
Rationale: An independent agent represents multiple insurance companies, while
captive, career, and exclusive agents typically represent only one company. [citation:1]
Q5: Which agency is responsible for helping to standardize state insurance laws across
the country?
A. FTC
B. NAIC
C. SEC
D. FINRA
Correct Answer: B
Rationale: The National Association of Insurance Commissioners (NAIC) helps
standardize insurance laws across states, though each state ultimately adopts its own
laws. [citation:1]
Q6: Michael is an agent who represents multiple companies. Michael is considered to
be a(n):
, A. Exclusive agent
B. Captive agent
C. Independent agent
D. Career agent
Correct Answer: C
Rationale: An independent agent represents multiple insurance companies and can
place coverage with various carriers based on client needs. [citation:1]
Q7: Which of the following types of insurers is owned by its policyholders and pays
dividends?
A. Stock insurer
B. Mutual insurer
C. Reciprocal insurer
D. Fraternal insurer
Correct Answer: B
Rationale: Mutual insurers are owned by their policyholders and may pay dividends to
them. Stock insurers are owned by shareholders. [citation:1]
Q8: A policy of adhesion can only be modified by whom?
A. The policyowner
B. The insurance company
Exam 2026/2027 Definitive Study Guide
with Verified Answers – Pearson VUE State
Licensing Exam Prep
SECTION 1: GENERAL INSURANCE CONCEPTS & FLORIDA REGULATIONS
(15-20%)
Q1: At what point must a life insurance applicant be informed of their rights under the
Fair Credit Reporting Act?
A. Before the application is started
B. Upon completion of the application
C. At policy delivery
D. Only if the applicant requests investigation results
Correct Answer: B
Rationale: The Fair Credit Reporting Act requires that applicants be informed of their
rights upon completion of the application. This disclosure is mandatory when an
investigation into reputation or character may occur. [citation:1]
Q2: Who elects the governing body of a mutual insurance company?
,A. Shareholders
B. Policyholders
C. The board of directors
D. State insurance regulators
Correct Answer: B
Rationale: Mutual insurance companies are owned by their policyholders, who have
voting rights to elect the governing body. Stock insurance companies are owned by
shareholders. [citation:1]
Q3: An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the:
A. HIPAA
B. Fair Credit Reporting Act
C. Florida Insurance Code
D. McCarran-Ferguson Act
Correct Answer: B
Rationale: The Fair Credit Reporting Act requires disclosure when an investigation into
an applicant's reputation and character is conducted. HIPAA addresses health privacy.
[citation:1]
Q4: Which of the following represents multiple insurance companies?
,A. Captive agent
B. Independent agent
C. Career agent
D. Exclusive agent
Correct Answer: B
Rationale: An independent agent represents multiple insurance companies, while
captive, career, and exclusive agents typically represent only one company. [citation:1]
Q5: Which agency is responsible for helping to standardize state insurance laws across
the country?
A. FTC
B. NAIC
C. SEC
D. FINRA
Correct Answer: B
Rationale: The National Association of Insurance Commissioners (NAIC) helps
standardize insurance laws across states, though each state ultimately adopts its own
laws. [citation:1]
Q6: Michael is an agent who represents multiple companies. Michael is considered to
be a(n):
, A. Exclusive agent
B. Captive agent
C. Independent agent
D. Career agent
Correct Answer: C
Rationale: An independent agent represents multiple insurance companies and can
place coverage with various carriers based on client needs. [citation:1]
Q7: Which of the following types of insurers is owned by its policyholders and pays
dividends?
A. Stock insurer
B. Mutual insurer
C. Reciprocal insurer
D. Fraternal insurer
Correct Answer: B
Rationale: Mutual insurers are owned by their policyholders and may pay dividends to
them. Stock insurers are owned by shareholders. [citation:1]
Q8: A policy of adhesion can only be modified by whom?
A. The policyowner
B. The insurance company
