FLORIDA LIFE AND HEALTH
INSURANCE FINAL EXAM 2026
ACTUAL EXAM SCRIPT COMPLETE
QUESTIONS AND VERIFIED
ANSWERS GRADE A+
◉ Who owns a stock company? Answer: A stock insurance company is
owned by its stockholders.
◉ In Florida, which of the following is considered an Unfair Trade
Practice? Answer: Coercion
◉ Which of these options can an individual use their medical flexible
spending account to pay for? Answer: Prescription drugs are an
allowable expense when paid for by a medical flexible spending
account.
◉ Which of the following features of a group Term Life policy enables
an individual to leave the group and continue his or her insurance
without providing evidence of insurability? Answer: The conversion
privilege allows an individual to leave the group term plan and continue
his or her insurance without providing evidence of insurability.
◉ An example of false advertising would be Answer: An insurer
exaggerating its dividends in a magazine advertisement
,◉ Q purchases a $500,000 life insurance policy and pays $900 in
premiums over the first six months. Q dies suddenly and the beneficiary
is paid $500,000. This exchange of unequal values reflects which of the
following insurance contract features? Answer: Aleatory.
Insurance contracts are aleatory in that the amount the insured will pay
in premiums is unequal to the amount that the insurer will pay in the
event of a loss.
◉ An example of an unfair trade practice is Answer: Making a material
misrepresentation to an insured is considered to be an unfair trade
practice.
◉ How would a contingent beneficiary receive the policy proceeds in an
Accidental Death and Dismemberment (AD&D) policy? Answer: A
contingent beneficiary will receive the policy proceeds if the primary
beneficiary dies before the insured's death.
◉ Which of these terms accurately defines an underwriter's assessment
of information on a life insurance application? Answer: Risk
classification.
Underwriting, another term for risk selection, is the process of reviewing
the many characteristics that make up the risk profile of an applicant to
determine if the applicant is insurable and, if so, at standard or
substandard rates.
◉ T applies for a life insurance policy and is told by the producer that
the insurer is bound to the coverage as of the date of the application or
,medical examination, whichever is later. Assuming that T is an
acceptable risk, what item is given to T? Answer: Conditional receipt.
A conditional receipt binds the insurer to coverage as of the date of the
application or medical exam, provided the proposed insured is
determined to be an acceptable risk.
◉ What is required in the Florida Employee Health Care Access Act?
Answer: Small group benefit plans are to be issued on a "guarantee-
issue" basis
◉ P and Q are married and have three children. P is the primary
beneficiary on Q's Accidental Death and Dismemberment (AD&D)
policy and Q's sister R is the contingent beneficiary. P, Q, and R are
involved in a car accident and Q and R are killed instantly. The
Accidental Death benefits will be paid to Answer: P.
In this situation, benefits will be paid to P because P survived the
accident and is the primary beneficiary.
◉ The health insurance program which is administered by each state and
funded by both the federal and state governments is called Answer:
Medicaid- is funded by both the federal and state governments and
administered by individual states.
◉ Which of the following BEST describes a short-term medical expense
policy? Answer: Nonrenewable.
, A typical short-term medical expense policy is best described as
nonrenewable.
◉ Which of the following statements about noncontributory employee
group life insurance is FALSE? Answer: A minimum number of
employees is required to participate". Noncontributory employee group
life insurance plans must cover ALL eligible employees at all times
◉ A Disability Income policyowner recently submitted a claim for a
chronic neck problem that has now resulted in total disability. The
original neck injury occurred before the application was taken 5 years
prior. The neck injury was never disclosed to the insurer at the time of
application. How will the insurer handle this claim? Answer: Claim will
be paid and coverage will remain in force.
After a policy has been in force for 2 (sometimes 3) years, it enters the
incontestable period, in which the insurer may not deny a claim based on
information not disclosed at the time of application.
◉ S takes out a health insurance policy which contains a provision that
states that the agent does not have the authority to change the policy or
waive any of its provisions. Which health policy provision is this?
Answer: Entire Contract.
The Entire Contract provision states that the agent does NOT have the
authority to change the policy or waive any of its provisions.
INSURANCE FINAL EXAM 2026
ACTUAL EXAM SCRIPT COMPLETE
QUESTIONS AND VERIFIED
ANSWERS GRADE A+
◉ Who owns a stock company? Answer: A stock insurance company is
owned by its stockholders.
◉ In Florida, which of the following is considered an Unfair Trade
Practice? Answer: Coercion
◉ Which of these options can an individual use their medical flexible
spending account to pay for? Answer: Prescription drugs are an
allowable expense when paid for by a medical flexible spending
account.
◉ Which of the following features of a group Term Life policy enables
an individual to leave the group and continue his or her insurance
without providing evidence of insurability? Answer: The conversion
privilege allows an individual to leave the group term plan and continue
his or her insurance without providing evidence of insurability.
◉ An example of false advertising would be Answer: An insurer
exaggerating its dividends in a magazine advertisement
,◉ Q purchases a $500,000 life insurance policy and pays $900 in
premiums over the first six months. Q dies suddenly and the beneficiary
is paid $500,000. This exchange of unequal values reflects which of the
following insurance contract features? Answer: Aleatory.
Insurance contracts are aleatory in that the amount the insured will pay
in premiums is unequal to the amount that the insurer will pay in the
event of a loss.
◉ An example of an unfair trade practice is Answer: Making a material
misrepresentation to an insured is considered to be an unfair trade
practice.
◉ How would a contingent beneficiary receive the policy proceeds in an
Accidental Death and Dismemberment (AD&D) policy? Answer: A
contingent beneficiary will receive the policy proceeds if the primary
beneficiary dies before the insured's death.
◉ Which of these terms accurately defines an underwriter's assessment
of information on a life insurance application? Answer: Risk
classification.
Underwriting, another term for risk selection, is the process of reviewing
the many characteristics that make up the risk profile of an applicant to
determine if the applicant is insurable and, if so, at standard or
substandard rates.
◉ T applies for a life insurance policy and is told by the producer that
the insurer is bound to the coverage as of the date of the application or
,medical examination, whichever is later. Assuming that T is an
acceptable risk, what item is given to T? Answer: Conditional receipt.
A conditional receipt binds the insurer to coverage as of the date of the
application or medical exam, provided the proposed insured is
determined to be an acceptable risk.
◉ What is required in the Florida Employee Health Care Access Act?
Answer: Small group benefit plans are to be issued on a "guarantee-
issue" basis
◉ P and Q are married and have three children. P is the primary
beneficiary on Q's Accidental Death and Dismemberment (AD&D)
policy and Q's sister R is the contingent beneficiary. P, Q, and R are
involved in a car accident and Q and R are killed instantly. The
Accidental Death benefits will be paid to Answer: P.
In this situation, benefits will be paid to P because P survived the
accident and is the primary beneficiary.
◉ The health insurance program which is administered by each state and
funded by both the federal and state governments is called Answer:
Medicaid- is funded by both the federal and state governments and
administered by individual states.
◉ Which of the following BEST describes a short-term medical expense
policy? Answer: Nonrenewable.
, A typical short-term medical expense policy is best described as
nonrenewable.
◉ Which of the following statements about noncontributory employee
group life insurance is FALSE? Answer: A minimum number of
employees is required to participate". Noncontributory employee group
life insurance plans must cover ALL eligible employees at all times
◉ A Disability Income policyowner recently submitted a claim for a
chronic neck problem that has now resulted in total disability. The
original neck injury occurred before the application was taken 5 years
prior. The neck injury was never disclosed to the insurer at the time of
application. How will the insurer handle this claim? Answer: Claim will
be paid and coverage will remain in force.
After a policy has been in force for 2 (sometimes 3) years, it enters the
incontestable period, in which the insurer may not deny a claim based on
information not disclosed at the time of application.
◉ S takes out a health insurance policy which contains a provision that
states that the agent does not have the authority to change the policy or
waive any of its provisions. Which health policy provision is this?
Answer: Entire Contract.
The Entire Contract provision states that the agent does NOT have the
authority to change the policy or waive any of its provisions.
