214 Florida Insurance Exam Questions And Answers 2026/2027
updated.
1. Which of the following describes a participating insurance policy?:
answer- Policy-owners are entitled to receive dividends
2. At what point must a life insurance applicant be informed of their rights that
fall under the Fair Credit Reporting Act?: answer- Upon completion of the
application
3. Dividends payable to a policyowner are:: answer- Declared by the insurance
company.
4. At what point does an informal agreement become a binding contract?: -
When consideration is provided by one of the parties to the contract
5. When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have: Insurable interest in the
proposed insured
6. Which of the following arrangements allows one to bypass insurable inter-
est laws?: answer- (STOLI) or Investor Originated Life Insurance
7. Taking receipt of premiums and holding them for the insurance company is
an example of: Fiduciary Responsibility
8. A policy of adhesion can only be modified by whom?: answer- The
Insurance Com-pany
9. The exchange of unequal values reflects:: answer- Aleatory
10. Life and health insurance policies are: answer- Unilateral Contracts
,(one makespromise, other can only accept by performance
11. The consideration clause of insurance contract includes: The schedule and
amount of premium payments
12. A life insurance arrangement which circumvents insurable interest values
is called: Investor Originated Life Insurance (IOLI)
13. Who makes the legally enforceable promises in a unilateral contract?: The
Insurance Company
14. A life insurance policy would be considered a wagering contract WITH-
OUT:: Insurable Interest
15. A life insurance policy that provides a policyowner with cash value along
with a level face amount is called:: Whole Life Policy
16. Who benefits in Investor-Originated Life Insurance (IOLI) when the insured
dies?: the Policyowner(investor)
17. K purchased a Life insurance policy in 1986 which paid 10% interest in
the early years of the policy. Twenty years after the purchase, she received
a notice from the insurer stating that the policy will soon terminate unless a
much-higher premium is paid because of falling interest rates. This type of
policy is known as:: Universal Life Policy
18. Which of these would be considered a Limited-Pay-Life policy?: Life Paid
Up at Age 70
, 19. K is looking to purchase Renewable Term insurance. Which of these types
of Term insurance may be renewable?: Level Term Policy (pays same death
benefit if insured dies any time during policy)
20. A universal life policy is sometimes referred to as an unbundled Life
Policy because the owner can see the interest earned, cost of insurance,
and: Expense Charges
21. What type of insurance offers permanent life coverage with premiums that
are payable for life?: Whole Life Policy
22. Which provision allows the policyowner to change a term life policy to a
permanent one without providing proof of good health?: Conversion
23. When is the face amount of a Whole Life policy paid?: When the insured
dies, or the policy's maturity, whichever comes first!
24. Additional coverage can be added to a Whole Life policy by adding a(n): -
Decreasing Term Rider
25. When a life policy exceeds certain IRS table values, the result would create
which of the following?: Modified Endowment Contract (MEC)
26. K pays on a $20,000 20-Year Endowment policy for 10 years and dies
from an automobile accident. How much will the insurance company pay the
beneficiary?: $20,000 death benefit.
27. Which of the following combination of plans is designed to protect an
insured from an unpaid mortgage balance upon premature death?: Joint Life
Policy
28. Which policy requires an agent to register with the National Association
of Securities Dealers (NASD) before selling?: Variable Life
29. Variable Whole Life Policy: both an insurance and securities product
updated.
1. Which of the following describes a participating insurance policy?:
answer- Policy-owners are entitled to receive dividends
2. At what point must a life insurance applicant be informed of their rights that
fall under the Fair Credit Reporting Act?: answer- Upon completion of the
application
3. Dividends payable to a policyowner are:: answer- Declared by the insurance
company.
4. At what point does an informal agreement become a binding contract?: -
When consideration is provided by one of the parties to the contract
5. When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have: Insurable interest in the
proposed insured
6. Which of the following arrangements allows one to bypass insurable inter-
est laws?: answer- (STOLI) or Investor Originated Life Insurance
7. Taking receipt of premiums and holding them for the insurance company is
an example of: Fiduciary Responsibility
8. A policy of adhesion can only be modified by whom?: answer- The
Insurance Com-pany
9. The exchange of unequal values reflects:: answer- Aleatory
10. Life and health insurance policies are: answer- Unilateral Contracts
,(one makespromise, other can only accept by performance
11. The consideration clause of insurance contract includes: The schedule and
amount of premium payments
12. A life insurance arrangement which circumvents insurable interest values
is called: Investor Originated Life Insurance (IOLI)
13. Who makes the legally enforceable promises in a unilateral contract?: The
Insurance Company
14. A life insurance policy would be considered a wagering contract WITH-
OUT:: Insurable Interest
15. A life insurance policy that provides a policyowner with cash value along
with a level face amount is called:: Whole Life Policy
16. Who benefits in Investor-Originated Life Insurance (IOLI) when the insured
dies?: the Policyowner(investor)
17. K purchased a Life insurance policy in 1986 which paid 10% interest in
the early years of the policy. Twenty years after the purchase, she received
a notice from the insurer stating that the policy will soon terminate unless a
much-higher premium is paid because of falling interest rates. This type of
policy is known as:: Universal Life Policy
18. Which of these would be considered a Limited-Pay-Life policy?: Life Paid
Up at Age 70
, 19. K is looking to purchase Renewable Term insurance. Which of these types
of Term insurance may be renewable?: Level Term Policy (pays same death
benefit if insured dies any time during policy)
20. A universal life policy is sometimes referred to as an unbundled Life
Policy because the owner can see the interest earned, cost of insurance,
and: Expense Charges
21. What type of insurance offers permanent life coverage with premiums that
are payable for life?: Whole Life Policy
22. Which provision allows the policyowner to change a term life policy to a
permanent one without providing proof of good health?: Conversion
23. When is the face amount of a Whole Life policy paid?: When the insured
dies, or the policy's maturity, whichever comes first!
24. Additional coverage can be added to a Whole Life policy by adding a(n): -
Decreasing Term Rider
25. When a life policy exceeds certain IRS table values, the result would create
which of the following?: Modified Endowment Contract (MEC)
26. K pays on a $20,000 20-Year Endowment policy for 10 years and dies
from an automobile accident. How much will the insurance company pay the
beneficiary?: $20,000 death benefit.
27. Which of the following combination of plans is designed to protect an
insured from an unpaid mortgage balance upon premature death?: Joint Life
Policy
28. Which policy requires an agent to register with the National Association
of Securities Dealers (NASD) before selling?: Variable Life
29. Variable Whole Life Policy: both an insurance and securities product
