Spring Semester February 2026 Florida 2-20 Insurance Agent Exam
Prep | Life & Health Insurance Licensing, Florida State Laws &
Regulations, Policy Types, Underwriting, Ethics, Risk Management, NGN-
Style Practice Questions & Licensing Exam Success Guide
, Question 1
What is the primary purpose of the insurance regulatory system in Florida?
A) To limit competition among insurers
B) To ensure the solvency of insurance companies
C) To provide insurance at the lowest premium possible
D) To directly manage claims for insureds
Correct Answer: B) To ensure the solvency of insurance companies
Rationale:
The primary purpose of the insurance regulatory system is to ensure the solvency of
insurance companies so they can meet their future obligations to policyholders. This
includes monitoring the financial health of insurers, ensuring adequate reserves, and
enforcing proper conduct to maintain consumer confidence in the insurance market.
Question 2
Which of the following is NOT a common type of insurance fraud?
A) False claims
B) Premium misrepresentation
C) Underwriting fraud
D) Accurate disclosure of risks
Correct Answer: D) Accurate disclosure of risks
Rationale:
Accurate disclosure of risks is essential for the underwriting process and is not
considered a type of insurance fraud. In contrast, the other options involve deceptive
practices to gain unwarranted benefits or lower premiums, which undermine the
integrity of the insurance system.
Question 3
Florida Statute 626.9541 prohibits which of the following actions?
A) Providing coverage for natural disasters
B) Unfair discrimination in insurance practices
C) Offering lower premiums for loyal customers
D) Publishing testimonials from policyholders
Correct Answer: B) Unfair discrimination in insurance practices
Rationale:
Florida Statute 626.9541 aims to prevent unfair discrimination in insurance practices,
ensuring all customers are treated equally and that coverage is provided fairly
Prep | Life & Health Insurance Licensing, Florida State Laws &
Regulations, Policy Types, Underwriting, Ethics, Risk Management, NGN-
Style Practice Questions & Licensing Exam Success Guide
, Question 1
What is the primary purpose of the insurance regulatory system in Florida?
A) To limit competition among insurers
B) To ensure the solvency of insurance companies
C) To provide insurance at the lowest premium possible
D) To directly manage claims for insureds
Correct Answer: B) To ensure the solvency of insurance companies
Rationale:
The primary purpose of the insurance regulatory system is to ensure the solvency of
insurance companies so they can meet their future obligations to policyholders. This
includes monitoring the financial health of insurers, ensuring adequate reserves, and
enforcing proper conduct to maintain consumer confidence in the insurance market.
Question 2
Which of the following is NOT a common type of insurance fraud?
A) False claims
B) Premium misrepresentation
C) Underwriting fraud
D) Accurate disclosure of risks
Correct Answer: D) Accurate disclosure of risks
Rationale:
Accurate disclosure of risks is essential for the underwriting process and is not
considered a type of insurance fraud. In contrast, the other options involve deceptive
practices to gain unwarranted benefits or lower premiums, which undermine the
integrity of the insurance system.
Question 3
Florida Statute 626.9541 prohibits which of the following actions?
A) Providing coverage for natural disasters
B) Unfair discrimination in insurance practices
C) Offering lower premiums for loyal customers
D) Publishing testimonials from policyholders
Correct Answer: B) Unfair discrimination in insurance practices
Rationale:
Florida Statute 626.9541 aims to prevent unfair discrimination in insurance practices,
ensuring all customers are treated equally and that coverage is provided fairly
