Florida Life & Health Insurance Exam
(2025/2026 Latest Exam Prep) | Complete
Study Guide & Verified Practice Q&A
Insured - correct answerThe person covered by the insurance policy.
Rider - correct answerA written modification attached to a policy that increases or
decreases coverage and/or premiums.
What is a unilateral contract? - correct answerA contract in which only one of the parties
is legally bound to fulfill its obligations.
What law protects consumers from the circulation of inaccurate or obsolete information?
- correct answerThe Fair Credit Reporting Act.
What are the three types of agent authority? - correct answerImplied, Express, and
Apparent.
Agent - correct answerAn individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of the insurer.
What is name of the process that insurance companies use to determine whether or not
an applicant is insurable? - correct answerUnderwriting
The requirement that agents must account for and promptly remit all insurance funds
collected is known as what type of agent responsibility? - correct answerFiduciary
What is a third-party ownership? - correct answerAn insurance arrangement in which
the policy owner and the insured are not the same person.
Suitability - correct answerFactors that determine if an insurance product is appropriate
for a particular customer.
Premium - correct answerA payment by the policy owner to the insurance company to
keep the policy in force.
Disclosure - correct answerProviding sufficient information to help someone make
informed decision.
An agent offer a client free tickets to a sporting event in exchange for the purchase of
an insurance policy. What is the agent guilty of? - correct answerRebating
,If an insurer meets the states financial requirements and is approved to transact
business in the state, it is considered what type of insurer? - correct answerAuthorized
What information are the members of the medical information bureau required to
report? - correct answerAdverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? - correct
answerRevocable
What document describes the specific information about a policy? - correct
answerPolicy Summary
What is the term for the causes of loss insured against in an insurance policy? - correct
answerPeril
Whom does an insurance agent represent? - correct answerInsurance Company
What is an unfair trade practice? - correct answerAny fraudulent, deceptive, or
dishonest business practice that is prohibited by statutes and regulations.
Insurer - correct answerThe company that issues an insurance policy.
Peril - correct answerCause of loss
Contract of Adhesion - correct answerA contract prepared by one party that must be
accepted as written or be rejected by the other party.
What are the four elements of an insurance contract? - correct answerAgreement (Offer
and Acceptance), consideration, competent parties, and legal purpose.
Policy Provision - correct answerA clause that stipulates the rights and obligations
under an insurance contract.
Fiduciary - correct answerA producer who handles insurer's funds in a trust capacity.
Who is considered a nonresident agent? - correct answerAn agent who resides and is
licensed in another state, but is authorized to transact insurance in Florida.
What is underwriting? - correct answerThe risk selection and classification process.
What is the best way to handle incomplete insurance applications? - correct
answerReturn the application to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - correct answerLoss must
be:
1. Due to Change
, 2. Definite and measurable
3. Statistically predictable
4. Not catastrophic
5. Coverage cannot be mandatory.
What type of policy issues certificates of insurance to the insurance? - correct
answerGroup Policy
What is the purpose of a free-look period? - correct answerTo allow the insured to
return the policy and get a full refund (if done during the free-look period)
Whose responsibility is it to determine that all of the questions on an insurance
application are answered? - correct answerThe Agent's
What types of licensee represents the insurance company? - correct answerAgent
Who must be notified of the producers change of address? - correct answerThe
department of Insurance
Certificate of Insurance - correct answerA document issued to insureds under a group
plan that states the coverage being issued, and indicates the coverage type and
amounts.
Nonrenewal - correct answerTermination of a policy by an insurer on the anniversary or
renewal date.
Representation - correct answerA statement made by the applicant on the insurance
application that is believed to be true.
What is a warranty? - correct answerAn absolutely true statement that, if breached, may
viod an insurance contract.
In insurance, when is the offer usually made on a contract? - correct answerWhen the
insurance application is submitted.
When a change needs to be made on the application for insurance, which is the best
method for correcting the information? - correct answerComplete a new application or
ask the applicant to initial the correction on the original application.
A situation in which a person can only experience a loss and no gain represents what
type of risk? - correct answerPure Risk
Who is responsible for the contents of insurance advertisements? - correct answerThe
Insurance Company
(2025/2026 Latest Exam Prep) | Complete
Study Guide & Verified Practice Q&A
Insured - correct answerThe person covered by the insurance policy.
Rider - correct answerA written modification attached to a policy that increases or
decreases coverage and/or premiums.
What is a unilateral contract? - correct answerA contract in which only one of the parties
is legally bound to fulfill its obligations.
What law protects consumers from the circulation of inaccurate or obsolete information?
- correct answerThe Fair Credit Reporting Act.
What are the three types of agent authority? - correct answerImplied, Express, and
Apparent.
Agent - correct answerAn individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of the insurer.
What is name of the process that insurance companies use to determine whether or not
an applicant is insurable? - correct answerUnderwriting
The requirement that agents must account for and promptly remit all insurance funds
collected is known as what type of agent responsibility? - correct answerFiduciary
What is a third-party ownership? - correct answerAn insurance arrangement in which
the policy owner and the insured are not the same person.
Suitability - correct answerFactors that determine if an insurance product is appropriate
for a particular customer.
Premium - correct answerA payment by the policy owner to the insurance company to
keep the policy in force.
Disclosure - correct answerProviding sufficient information to help someone make
informed decision.
An agent offer a client free tickets to a sporting event in exchange for the purchase of
an insurance policy. What is the agent guilty of? - correct answerRebating
,If an insurer meets the states financial requirements and is approved to transact
business in the state, it is considered what type of insurer? - correct answerAuthorized
What information are the members of the medical information bureau required to
report? - correct answerAdverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? - correct
answerRevocable
What document describes the specific information about a policy? - correct
answerPolicy Summary
What is the term for the causes of loss insured against in an insurance policy? - correct
answerPeril
Whom does an insurance agent represent? - correct answerInsurance Company
What is an unfair trade practice? - correct answerAny fraudulent, deceptive, or
dishonest business practice that is prohibited by statutes and regulations.
Insurer - correct answerThe company that issues an insurance policy.
Peril - correct answerCause of loss
Contract of Adhesion - correct answerA contract prepared by one party that must be
accepted as written or be rejected by the other party.
What are the four elements of an insurance contract? - correct answerAgreement (Offer
and Acceptance), consideration, competent parties, and legal purpose.
Policy Provision - correct answerA clause that stipulates the rights and obligations
under an insurance contract.
Fiduciary - correct answerA producer who handles insurer's funds in a trust capacity.
Who is considered a nonresident agent? - correct answerAn agent who resides and is
licensed in another state, but is authorized to transact insurance in Florida.
What is underwriting? - correct answerThe risk selection and classification process.
What is the best way to handle incomplete insurance applications? - correct
answerReturn the application to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - correct answerLoss must
be:
1. Due to Change
, 2. Definite and measurable
3. Statistically predictable
4. Not catastrophic
5. Coverage cannot be mandatory.
What type of policy issues certificates of insurance to the insurance? - correct
answerGroup Policy
What is the purpose of a free-look period? - correct answerTo allow the insured to
return the policy and get a full refund (if done during the free-look period)
Whose responsibility is it to determine that all of the questions on an insurance
application are answered? - correct answerThe Agent's
What types of licensee represents the insurance company? - correct answerAgent
Who must be notified of the producers change of address? - correct answerThe
department of Insurance
Certificate of Insurance - correct answerA document issued to insureds under a group
plan that states the coverage being issued, and indicates the coverage type and
amounts.
Nonrenewal - correct answerTermination of a policy by an insurer on the anniversary or
renewal date.
Representation - correct answerA statement made by the applicant on the insurance
application that is believed to be true.
What is a warranty? - correct answerAn absolutely true statement that, if breached, may
viod an insurance contract.
In insurance, when is the offer usually made on a contract? - correct answerWhen the
insurance application is submitted.
When a change needs to be made on the application for insurance, which is the best
method for correcting the information? - correct answerComplete a new application or
ask the applicant to initial the correction on the original application.
A situation in which a person can only experience a loss and no gain represents what
type of risk? - correct answerPure Risk
Who is responsible for the contents of insurance advertisements? - correct answerThe
Insurance Company
