Florida Health and Life Insurance State Exam
Practice Part 1 questions and answers 2026\2027 A+
Grade
Which Accident and Health policy provision addresses preexisting conditions?
- correct answer Time Limit on Certain Defenses
Which of the following individual health insurance policies will provide the broadest protection?
- correct answer Major Medical
Which of the following situations does NOT apply to the Florida Replacement Rule?
- correct answer An existing policyholder purchases an additional policy from the same insurer
Agent J takes an application and initial premium from an applicant and sends the application and
premium check to the insurance company. The insurance company returns the check back to J because
the check is made out to J instead of the insurance company. What action should J take?
- correct answer Return to the customer, collect a new check made out to the insurance company, and
send the new check out to the insurance company
Under which of the following circumstances will the benefits under COBRA continuation coverage end?
- correct answer All group health plans are terminated by the employer
Which type of renewability best describes a Disability Income policy that covers an individual until the
age of 65, but the insurer has the right to change the premium rate for the overall risk class?
- correct answer Garunteed Renewable
An incomplete life insurance application submitted to an insurer will result in which of these actions?
- correct answer Application will be returned to the writting agent
The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond
- correct answer 6 Months
,Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance?
- correct answer Entire cash surrender value is taxable
Which of these is considered a mandatory provision?
- correct answer Payment of Claims
Which of the following actions will an insurance company most likely NOT take if an applicant, who has
diabetes, applies for a Disability Income policy?
- correct answer Issue the policy with an altered Time of Payment of Claims provision
Which of the following phrases refers to the fees charged by a healthcare professional?
- correct answer Usual, customary, and reasonable expenses
D was actively serving in the Marines when he was killed in an automobile accident while on leave. His
$100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive?
- correct answer The full face amount
N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit
of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is:
- correct answer $1,250
No benefits are available during the elimination period.
Who does an agent represent during the solicitation or insurance?
- correct answer The insurance company
Which of the following costs would a Basic Hospital/Surgical policy likely cover?
- correct answer Sugically removing a facial birthmark
The federal income tax treatment of employer-provided group Medical Expense insurance can be
accurately described as:
- correct answer Employee's premiums paid by the employer is tax-deductible to the employer as a
business expenditure
, Premiums paid by an employer for an employee's coverage are deductible by the employer as a buisness
expense
What must the policyowner provide to the insurer for validation that a loss has occurred?
- correct answer proof of loss
Association Plans that are designed to provide health benefits to their members are regulated by the
state because
- correct answer They are insured by and authorized insurer
Which of the following statements is CORRECT about the period in which a Term Policy can be
converted?
- correct answer It varies according to contracts
When does a life insurance contract become effective if the initial premium is not collected during the
application process?
- correct answer When producer delives policy and collects initial premium
A provision in a life insurance policy that pays the policyowner an amount that does not surpass the
guaranteed cash value is called the:
- correct answer Policy Loan Provision
Medicare Part A and Part B do no pay for:
- correct answer Dental Work
When a misrepresentation on a life insurance policy application is discovered, what action may an
insurance company take?
- correct answer Void the policy only if it is discovered during the Contestable period and proven to be
material
The insuring Clause
- correct answer States the scope and limits of the coverage
Practice Part 1 questions and answers 2026\2027 A+
Grade
Which Accident and Health policy provision addresses preexisting conditions?
- correct answer Time Limit on Certain Defenses
Which of the following individual health insurance policies will provide the broadest protection?
- correct answer Major Medical
Which of the following situations does NOT apply to the Florida Replacement Rule?
- correct answer An existing policyholder purchases an additional policy from the same insurer
Agent J takes an application and initial premium from an applicant and sends the application and
premium check to the insurance company. The insurance company returns the check back to J because
the check is made out to J instead of the insurance company. What action should J take?
- correct answer Return to the customer, collect a new check made out to the insurance company, and
send the new check out to the insurance company
Under which of the following circumstances will the benefits under COBRA continuation coverage end?
- correct answer All group health plans are terminated by the employer
Which type of renewability best describes a Disability Income policy that covers an individual until the
age of 65, but the insurer has the right to change the premium rate for the overall risk class?
- correct answer Garunteed Renewable
An incomplete life insurance application submitted to an insurer will result in which of these actions?
- correct answer Application will be returned to the writting agent
The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond
- correct answer 6 Months
,Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance?
- correct answer Entire cash surrender value is taxable
Which of these is considered a mandatory provision?
- correct answer Payment of Claims
Which of the following actions will an insurance company most likely NOT take if an applicant, who has
diabetes, applies for a Disability Income policy?
- correct answer Issue the policy with an altered Time of Payment of Claims provision
Which of the following phrases refers to the fees charged by a healthcare professional?
- correct answer Usual, customary, and reasonable expenses
D was actively serving in the Marines when he was killed in an automobile accident while on leave. His
$100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive?
- correct answer The full face amount
N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit
of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is:
- correct answer $1,250
No benefits are available during the elimination period.
Who does an agent represent during the solicitation or insurance?
- correct answer The insurance company
Which of the following costs would a Basic Hospital/Surgical policy likely cover?
- correct answer Sugically removing a facial birthmark
The federal income tax treatment of employer-provided group Medical Expense insurance can be
accurately described as:
- correct answer Employee's premiums paid by the employer is tax-deductible to the employer as a
business expenditure
, Premiums paid by an employer for an employee's coverage are deductible by the employer as a buisness
expense
What must the policyowner provide to the insurer for validation that a loss has occurred?
- correct answer proof of loss
Association Plans that are designed to provide health benefits to their members are regulated by the
state because
- correct answer They are insured by and authorized insurer
Which of the following statements is CORRECT about the period in which a Term Policy can be
converted?
- correct answer It varies according to contracts
When does a life insurance contract become effective if the initial premium is not collected during the
application process?
- correct answer When producer delives policy and collects initial premium
A provision in a life insurance policy that pays the policyowner an amount that does not surpass the
guaranteed cash value is called the:
- correct answer Policy Loan Provision
Medicare Part A and Part B do no pay for:
- correct answer Dental Work
When a misrepresentation on a life insurance policy application is discovered, what action may an
insurance company take?
- correct answer Void the policy only if it is discovered during the Contestable period and proven to be
material
The insuring Clause
- correct answer States the scope and limits of the coverage
