1 of 31
FLORIDA LIFE AND HEALTH INSURANCE EXAM 2025/2026 VERSION 280
QUESTIONS WITH DETAILED VERIFIED ANSWERS AND RATIONALE /A+ GRADE
ASSURED
In health insurance, when would an excess plan pay benefits? - ANSWER - After the
primary plan has paid its full promised benefit, the excess plan will pay the balance.
In insurance, when is the offer usually made on a contract? - ANSWER - When the
insurance application is submitted.
In term policies, what happens to the premium throughout the term of the policy? -
ANSWER - The premium remains level.
In variable universal life insurance, to what policy component does the term "variable"
refer? - ANSWER - Cash value and face amount
In what type of health insurance plans are providers paid for services in advance,
regardless of the services provided? - ANSWER - Prepaid plans
In what type of life insurance policy can the policy owner skip premium payments without
the policy lapsing? - ANSWER - Universal Life
In which Medicare supplemental plans are the core benefits found? - ANSWER - All plans
(A-N)
Insurable Interest - ANSWER - A financial interest in the life of another person with the
possibility of losing something of value if that person dies.
Insured - ANSWER - The person covered by the insurance policy.
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Insurer - ANSWER - The company that issues an insurance policy.
Lump Sum - ANSWER - A payout method that pays the beneficiary the entire benefit in one
payment.
Most health policies will pay accidental death benefits if the death is caused by an
accident and occurs within how many days? - ANSWER - 90 Days
Non-forfeiture Options - ANSWER - Methods of distribution of guaranteed values in a life
insurance policy.
Nonrenewal - ANSWER - Termination of a policy by an insurer on the anniversary or
renewal date.
Participating Policy - ANSWER - Insurance in which policy owners share in profits or losses
and receive dividends when available.
Peril - ANSWER - Cause of loss
Policy Provision - ANSWER - A clause that stipulates the rights and obligations under an
insurance contract.
Policyowner - ANSWER - The person entitled to exercise the rights and privileges in the
policy.
Premium - ANSWER - A payment by the policy owner to the insurance company to keep the
policy in force.
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Primary Beneficiary - ANSWER - A beneficiary who has the first claim to the policy proceeds
after the death of the insured.
Qualified Plan - ANSWER - A retirement plan that meets the IRS guidelines for receiving
favorable tax treatment.
Representation - ANSWER - A statement made by the applicant on the insurance
application that is believed to be true.
Rider - ANSWER - A written modification attached to a policy that increases or decreases
coverage and/or premiums.
Settlement Options - ANSWER - Methods used to pay the death benefits to a beneficiary
upon the insured's death.
SIMPLE plans are available to groups of how many employees? - ANSWER - No more than
100
Statements on the application made by an applicant for a life insurance policy are known
as what? - ANSWER - Representations
Suitability - ANSWER - Factors that determine if an insurance product is appropriate for a
particular customer.
Term Insurance - ANSWER - Coverage for a specified period without cash values or living
benefits.
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The insured on a health policy misstated his age on the insurance application. If this
misrepresentation is discovered, what will happen to the policy? - ANSWER - The benefit
amount payable under the policy will be adjusted to the insured's correct age.
The requirement that agents must account for and promptly remit all insurance funds
collected is known as what type of agent responsibility? - ANSWER - Fiduciary
Under a fully contributory health plan, how are the benefits received by the employee? -
ANSWER - Income tax free
Under an individual disability income policy, the benefits must be paid on at least what
schedule? - ANSWER - Monthly
Under the uniform required provisions for health insurance policies, proof of loss usually
needs to be filed within how many days? - ANSWER - 90 Days
Under what employer sponsored plan are the benefits taxable to an employee in
proportion to the amount of premium paid by the employer? - ANSWER - Disability income
Under what non-forfeiture option does the company pay the policy's surrender value and
have no further obligations to the policy owner? - ANSWER - Cash Surrender
What annuity settlement option provides income payments to the annuitant for the
duration of his or his life, and guarantees payment for a specified number of years? -
ANSWER - Life income with period certain.
What are agents required to do to renew their license? - ANSWER - Complete required
continuing education hours.
FLORIDA LIFE AND HEALTH INSURANCE EXAM 2025/2026 VERSION 280
QUESTIONS WITH DETAILED VERIFIED ANSWERS AND RATIONALE /A+ GRADE
ASSURED
In health insurance, when would an excess plan pay benefits? - ANSWER - After the
primary plan has paid its full promised benefit, the excess plan will pay the balance.
In insurance, when is the offer usually made on a contract? - ANSWER - When the
insurance application is submitted.
In term policies, what happens to the premium throughout the term of the policy? -
ANSWER - The premium remains level.
In variable universal life insurance, to what policy component does the term "variable"
refer? - ANSWER - Cash value and face amount
In what type of health insurance plans are providers paid for services in advance,
regardless of the services provided? - ANSWER - Prepaid plans
In what type of life insurance policy can the policy owner skip premium payments without
the policy lapsing? - ANSWER - Universal Life
In which Medicare supplemental plans are the core benefits found? - ANSWER - All plans
(A-N)
Insurable Interest - ANSWER - A financial interest in the life of another person with the
possibility of losing something of value if that person dies.
Insured - ANSWER - The person covered by the insurance policy.
,2 of 31
Insurer - ANSWER - The company that issues an insurance policy.
Lump Sum - ANSWER - A payout method that pays the beneficiary the entire benefit in one
payment.
Most health policies will pay accidental death benefits if the death is caused by an
accident and occurs within how many days? - ANSWER - 90 Days
Non-forfeiture Options - ANSWER - Methods of distribution of guaranteed values in a life
insurance policy.
Nonrenewal - ANSWER - Termination of a policy by an insurer on the anniversary or
renewal date.
Participating Policy - ANSWER - Insurance in which policy owners share in profits or losses
and receive dividends when available.
Peril - ANSWER - Cause of loss
Policy Provision - ANSWER - A clause that stipulates the rights and obligations under an
insurance contract.
Policyowner - ANSWER - The person entitled to exercise the rights and privileges in the
policy.
Premium - ANSWER - A payment by the policy owner to the insurance company to keep the
policy in force.
,3 of 31
Primary Beneficiary - ANSWER - A beneficiary who has the first claim to the policy proceeds
after the death of the insured.
Qualified Plan - ANSWER - A retirement plan that meets the IRS guidelines for receiving
favorable tax treatment.
Representation - ANSWER - A statement made by the applicant on the insurance
application that is believed to be true.
Rider - ANSWER - A written modification attached to a policy that increases or decreases
coverage and/or premiums.
Settlement Options - ANSWER - Methods used to pay the death benefits to a beneficiary
upon the insured's death.
SIMPLE plans are available to groups of how many employees? - ANSWER - No more than
100
Statements on the application made by an applicant for a life insurance policy are known
as what? - ANSWER - Representations
Suitability - ANSWER - Factors that determine if an insurance product is appropriate for a
particular customer.
Term Insurance - ANSWER - Coverage for a specified period without cash values or living
benefits.
, 4 of 31
The insured on a health policy misstated his age on the insurance application. If this
misrepresentation is discovered, what will happen to the policy? - ANSWER - The benefit
amount payable under the policy will be adjusted to the insured's correct age.
The requirement that agents must account for and promptly remit all insurance funds
collected is known as what type of agent responsibility? - ANSWER - Fiduciary
Under a fully contributory health plan, how are the benefits received by the employee? -
ANSWER - Income tax free
Under an individual disability income policy, the benefits must be paid on at least what
schedule? - ANSWER - Monthly
Under the uniform required provisions for health insurance policies, proof of loss usually
needs to be filed within how many days? - ANSWER - 90 Days
Under what employer sponsored plan are the benefits taxable to an employee in
proportion to the amount of premium paid by the employer? - ANSWER - Disability income
Under what non-forfeiture option does the company pay the policy's surrender value and
have no further obligations to the policy owner? - ANSWER - Cash Surrender
What annuity settlement option provides income payments to the annuitant for the
duration of his or his life, and guarantees payment for a specified number of years? -
ANSWER - Life income with period certain.
What are agents required to do to renew their license? - ANSWER - Complete required
continuing education hours.
