STATE FARM INSURANCE LICENSE FINAL PAPER
2026 QUESTIONS WITH ANSWERS GRADED
A+
◉ A group life insurance plan in which the employer pays the entire
premium is known as a ________________ plan. Answer:
noncontributory
◉ If a disabled worker covered under Social Security disability
benefits recovers and then is disabled again within five years, a new
waiting period is required before benefits begin again. Answer:
FALSE
◉ Robert had an accident and qualified for Social Security disability.
Given the waiting period, when will Robert begin to receive benefits?
Answer: After 5 months
◉ The Insuring Clause includes all of the following EXCEPT the
Answer: beneficiary
◉ Mutualization occurs when a stock company turns to a __________
company. Answer: mutual
,◉ To provide a safeguard for insureds, most major medical policies
contain a ____________ feature that limits the insured's out-of-pocket
expenses. Answer: stop-loss
◉ Tom is a newly appointed life, health and variable annuity agent
with Acme Insurance Agency. He is writing his first insurance policy
on his brother-in-law's life. Who does Tom legally represent in this
transaction? Answer: Acme Insurance Agency
◉ An insurance clause is a distinct article in a formal document that
establishes the rules in the contract that _____________________ must
adhere to. Answer: both the insurer and the insured
◉ "ACC" refers to the type of disability that prevents someone from
performing the job he was performing prior to the disability.
Answer: FALSE
◉ Which statement is CORRECT about the Department of Financial
Services' right to examine an agent's records? Answer: An
examination can be conducted at any time to discover any unfair
trade practices.
◉ Bill gives Jim a couple of tickets to a Florida Gators game to thank
him for purchasing a policy. This is an example of: Answer: rebating
, ◉ ____________ term insurance provides a level amount of protection
for a specified period, after which the policy expires. Answer: Level
◉ Business overhead expense (B.O.E.) insurance does not provide
benefits to cover the business owner's salary. Answer: TRUE
◉ Level, decreasing, and increasing insurance are all basic forms of
____________ insurance. Answer: term
◉ Hospice services are covered under Medicare Part A. Answer:
TRUE
◉ Under Florida law, group health insurers must offer mental and
nervous disorder insurance to policyowners. Answer: TRUE
◉ Deductibles under a group major medical plan usually run from
$250 to $500; whereas individual health plans usually run from:
Answer: $1,000 plus.
◉ Every HMO subscriber must receive a benefits package that
includes a copy of the HMO contract and certificate, and: Answer: a
member's handbook.
2026 QUESTIONS WITH ANSWERS GRADED
A+
◉ A group life insurance plan in which the employer pays the entire
premium is known as a ________________ plan. Answer:
noncontributory
◉ If a disabled worker covered under Social Security disability
benefits recovers and then is disabled again within five years, a new
waiting period is required before benefits begin again. Answer:
FALSE
◉ Robert had an accident and qualified for Social Security disability.
Given the waiting period, when will Robert begin to receive benefits?
Answer: After 5 months
◉ The Insuring Clause includes all of the following EXCEPT the
Answer: beneficiary
◉ Mutualization occurs when a stock company turns to a __________
company. Answer: mutual
,◉ To provide a safeguard for insureds, most major medical policies
contain a ____________ feature that limits the insured's out-of-pocket
expenses. Answer: stop-loss
◉ Tom is a newly appointed life, health and variable annuity agent
with Acme Insurance Agency. He is writing his first insurance policy
on his brother-in-law's life. Who does Tom legally represent in this
transaction? Answer: Acme Insurance Agency
◉ An insurance clause is a distinct article in a formal document that
establishes the rules in the contract that _____________________ must
adhere to. Answer: both the insurer and the insured
◉ "ACC" refers to the type of disability that prevents someone from
performing the job he was performing prior to the disability.
Answer: FALSE
◉ Which statement is CORRECT about the Department of Financial
Services' right to examine an agent's records? Answer: An
examination can be conducted at any time to discover any unfair
trade practices.
◉ Bill gives Jim a couple of tickets to a Florida Gators game to thank
him for purchasing a policy. This is an example of: Answer: rebating
, ◉ ____________ term insurance provides a level amount of protection
for a specified period, after which the policy expires. Answer: Level
◉ Business overhead expense (B.O.E.) insurance does not provide
benefits to cover the business owner's salary. Answer: TRUE
◉ Level, decreasing, and increasing insurance are all basic forms of
____________ insurance. Answer: term
◉ Hospice services are covered under Medicare Part A. Answer:
TRUE
◉ Under Florida law, group health insurers must offer mental and
nervous disorder insurance to policyowners. Answer: TRUE
◉ Deductibles under a group major medical plan usually run from
$250 to $500; whereas individual health plans usually run from:
Answer: $1,000 plus.
◉ Every HMO subscriber must receive a benefits package that
includes a copy of the HMO contract and certificate, and: Answer: a
member's handbook.
