250 Question Exam Simulator; Florida Life and Health
Questions and (100% Verified) Answers (FLH) Latest
Version, 2026 | Already Scored A
Q1. According to Florida law, a Group Life insurance policy requires a minimum of how many insureds?
A) 5 insureds
B) 10 insureds
C) 25 insureds
D) No minimum
Correct Answer: D
Rationale: Florida law imposes no minimum number of insureds for group life insurance policies. This
distinguishes group life from group health, which has specific employer size requirements .
Q2. Which of the following statements about guaranteed renewable health insurance policy is correct?
A) The insurer can cancel at any time
B) Premiums normally increase at the time of renewal
C) The insured cannot renew after age 65
D) Premiums remain level for life
Correct Answer: B
Rationale: Guaranteed renewable policies require the insurer to renew the policy, but premiums may increase
for the entire class of insureds. The insured cannot be singled out for premium increases .
Q3. The issuer must provide a prospective buyer with which of the following?
A) Only a policy summary
1|Page SUCCESS!!!
,B) Only a buyer's guide
C) Both a buyer's guide and a policy summary
D) An investment prospectus
Correct Answer: C
Rationale: Florida law requires insurers to provide both a Buyer's Guide and a Policy Summary to prospective
buyers, allowing informed purchasing decisions .
Q4. According to the time payment of claims provision, the insurer must pay disability income benefits no less
frequently than which of the following options?
A) Weekly
B) Bi-weekly
C) Monthly
D) Quarterly
Correct Answer: C
Rationale: Disability income benefits must be paid at least monthly under the time payment of claims provision
to ensure regular income replacement for disabled insureds .
Q6. Which of the following is the most important factor when deciding how much disability income coverage an
applicant should purchase?
A) Applicant's age
B) Applicant's health history
C) Applicant's monthly income
D) Applicant's occupation
Correct Answer: C
2|Page SUCCESS!!!
,Rationale: Monthly income is the primary factor because disability income insurance is designed to replace lost
earnings. Insurers typically limit benefits to 60-70% of pre-disability income .
Q7. Which two entities regulate variable annuities?
A) Department of Financial Services and Florida Legislature
B) Department of Financial Services and Securities Exchange Commission
C) Office of Insurance Regulation and FINRA
D) Securities Exchange Commission and FINRA
Correct Answer: B
Rationale: Variable annuities are regulated by both the Florida Department of Financial Services (for insurance
aspects) and the SEC (for securities components), requiring agents to hold both insurance and securities licenses
Q8. The provision that can be used to put an insurance policy back in force after it has lapsed due to
nonpayment is called:
A) Grace Period
B) Reinstatement
C) Nonforfeiture
D) Policy Loan
Correct Answer: B
Rationale: The reinstatement provision allows a policyowner to restore a lapsed policy by paying past-due
premiums with interest and providing evidence of insurability, typically within a specified timeframe .
Q9. Which product would best serve a retired individual looking to invest a lump-sum of money through an
insurance company?
A) Term Life Insurance
3|Page SUCCESS!!!
, B) Annuity
C) Disability Income
D) Long-Term Care
Correct Answer: B
Rationale: Annuities are designed to accumulate funds and provide guaranteed income streams, making them
ideal for retirees with lump sums to invest for retirement income .
Q10. Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits?
A) Workers' Compensation
B) Unemployment Benefits
C) Insurance
D) Pension Benefits
Correct Answer: C
Rationale: A MEWA is an arrangement that provides health and welfare benefits to employees of two or more
employers, pooling risk across multiple small employers .
Q11. In a qualified retirement plan, the yearly contributions to an employee's account:
A) Are unlimited
B) Are restricted to maximum levels set by the IRS
C) Depend solely on employer discretion
D) Must equal 15% of income
Correct Answer: B
Rationale: The IRS sets annual contribution limits for qualified retirement plans (e.g., 401(k), IRA) to prevent
excessive tax-deferred accumulation .
4|Page SUCCESS!!!
Questions and (100% Verified) Answers (FLH) Latest
Version, 2026 | Already Scored A
Q1. According to Florida law, a Group Life insurance policy requires a minimum of how many insureds?
A) 5 insureds
B) 10 insureds
C) 25 insureds
D) No minimum
Correct Answer: D
Rationale: Florida law imposes no minimum number of insureds for group life insurance policies. This
distinguishes group life from group health, which has specific employer size requirements .
Q2. Which of the following statements about guaranteed renewable health insurance policy is correct?
A) The insurer can cancel at any time
B) Premiums normally increase at the time of renewal
C) The insured cannot renew after age 65
D) Premiums remain level for life
Correct Answer: B
Rationale: Guaranteed renewable policies require the insurer to renew the policy, but premiums may increase
for the entire class of insureds. The insured cannot be singled out for premium increases .
Q3. The issuer must provide a prospective buyer with which of the following?
A) Only a policy summary
1|Page SUCCESS!!!
,B) Only a buyer's guide
C) Both a buyer's guide and a policy summary
D) An investment prospectus
Correct Answer: C
Rationale: Florida law requires insurers to provide both a Buyer's Guide and a Policy Summary to prospective
buyers, allowing informed purchasing decisions .
Q4. According to the time payment of claims provision, the insurer must pay disability income benefits no less
frequently than which of the following options?
A) Weekly
B) Bi-weekly
C) Monthly
D) Quarterly
Correct Answer: C
Rationale: Disability income benefits must be paid at least monthly under the time payment of claims provision
to ensure regular income replacement for disabled insureds .
Q6. Which of the following is the most important factor when deciding how much disability income coverage an
applicant should purchase?
A) Applicant's age
B) Applicant's health history
C) Applicant's monthly income
D) Applicant's occupation
Correct Answer: C
2|Page SUCCESS!!!
,Rationale: Monthly income is the primary factor because disability income insurance is designed to replace lost
earnings. Insurers typically limit benefits to 60-70% of pre-disability income .
Q7. Which two entities regulate variable annuities?
A) Department of Financial Services and Florida Legislature
B) Department of Financial Services and Securities Exchange Commission
C) Office of Insurance Regulation and FINRA
D) Securities Exchange Commission and FINRA
Correct Answer: B
Rationale: Variable annuities are regulated by both the Florida Department of Financial Services (for insurance
aspects) and the SEC (for securities components), requiring agents to hold both insurance and securities licenses
Q8. The provision that can be used to put an insurance policy back in force after it has lapsed due to
nonpayment is called:
A) Grace Period
B) Reinstatement
C) Nonforfeiture
D) Policy Loan
Correct Answer: B
Rationale: The reinstatement provision allows a policyowner to restore a lapsed policy by paying past-due
premiums with interest and providing evidence of insurability, typically within a specified timeframe .
Q9. Which product would best serve a retired individual looking to invest a lump-sum of money through an
insurance company?
A) Term Life Insurance
3|Page SUCCESS!!!
, B) Annuity
C) Disability Income
D) Long-Term Care
Correct Answer: B
Rationale: Annuities are designed to accumulate funds and provide guaranteed income streams, making them
ideal for retirees with lump sums to invest for retirement income .
Q10. Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits?
A) Workers' Compensation
B) Unemployment Benefits
C) Insurance
D) Pension Benefits
Correct Answer: C
Rationale: A MEWA is an arrangement that provides health and welfare benefits to employees of two or more
employers, pooling risk across multiple small employers .
Q11. In a qualified retirement plan, the yearly contributions to an employee's account:
A) Are unlimited
B) Are restricted to maximum levels set by the IRS
C) Depend solely on employer discretion
D) Must equal 15% of income
Correct Answer: B
Rationale: The IRS sets annual contribution limits for qualified retirement plans (e.g., 401(k), IRA) to prevent
excessive tax-deferred accumulation .
4|Page SUCCESS!!!
