FLORIDA 2-15 INSURANCE LICENSE EXAM 2026 UPDATE
QUESTIONS AND CORRECTVERIFIRD ANSWERS ALREADY
GRADED A+ (BRAND NEW VISION)
Does Florida law specify what an insurer must do if an applicant indicates that a
variable annuity would be the sole source of retirement income for the applicant? -
ANS-NO
Medicare patients have a lifetime reserve of ________ days of hospital coverage. -
ANS-60
In the process of selling life insurance and when evaluating the needs of your client, the
Human Life Value approach has been largely replaced by the more practical Needs
Approach. - ANS-TRUE
Which of the following is a Nonforfeiture Option that provides continuing cash value
buildup? - ANS-Reduced Paid-up
Mortality Tables indicate the average number of individuals from a given group who will
die in a given year. - ANS-TRUE
An agent engaged in churning as a result of fraudulent conduct is subject to a fine of
________ for each willful violation. (2012) - ANS-$50,000
FICA taxes are applied to employees' incomes up to certain limits, called the: - ANS-
taxable wage base.
A Variable annuity separate account will be invested in: - ANS-common stocks and
other securities.
Depending upon the contract, annuity payments can begin immediately or they can be
deferred to a future date. The investment configuration: - ANS-can be either a fixed or
a variable rate of return.
Roland invested $30,000 in a deferred annuity when he was 30 years old, which grew to
$60,000 in 20 years. At age 50, he decides to take a partial withdrawal in the amount of
$15,000. What are the tax implications? - ANS-The $15,000 withdrawal is taxable as
ordinary income plus a 10% premature distribution penalty applies.
In 2004, the Florida legislature addressed the special needs of senior consumers with
regard to annuity investments. For instance, an agent is required to maintain records
relating to such transactions for ________ years. - ANS-five
, What does OASDI stand for? - ANS-Old Age, Survivors, Disability & Hospital
Insurance
Both supplementary and comprehensive major medical plans contain deductibles and
coinsurance. - ANS-true
With a Roth IRA, the contributory funds are taxed as income ______ the contributions
are made. - ANS-before
Evan decides to surrender his whole life policy for a reduced paid-up policy. The cash
value of his new policy will: - ANS-continue to increase
The three basic levels of long-term care are - ANS-institutional care, home-based
care, and community care.
Which of the following risks is insurable? - ANS-Pure risks
Commercial insurers operate on the _____________ method. - ANS-reimbursement
Medical Expense insurance is based on a contract of reimbursement. - ANS-TRUE
FIGA is the acronym for: - ANS-Florida Insurance Guaranty Association.
Bob's life insurance policy cash value is $10,000 and he has paid $8,000 in premiums.
He now wants to surrender the policy for its cash value. How much is considered
taxable? - ANS-$2,000
Lorraine was diagnosed with breast cancer in 2005 but has been cancer free since
2006. However, she still requires follow-up care. Lorraine secured a new job in 2012. Is
her breast cancer follow-up care considered a preexisting condition? Why? - ANS-No -
Breast cancer follow-up care is prohibited from being considered a preexisting
condition, unless breast cancer is found.
Accumulation units are converted into annuity units: - ANS-at the time of annuity
payout.
A group life insurance plan in which the employer pays the entire premium is known as
a ________________ plan. - ANS-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. - ANS-FALSE
Robert had an accident and qualified for Social Security disability. Given the waiting
period, when will Robert begin to receive benefits? - ANS-After 5 months
QUESTIONS AND CORRECTVERIFIRD ANSWERS ALREADY
GRADED A+ (BRAND NEW VISION)
Does Florida law specify what an insurer must do if an applicant indicates that a
variable annuity would be the sole source of retirement income for the applicant? -
ANS-NO
Medicare patients have a lifetime reserve of ________ days of hospital coverage. -
ANS-60
In the process of selling life insurance and when evaluating the needs of your client, the
Human Life Value approach has been largely replaced by the more practical Needs
Approach. - ANS-TRUE
Which of the following is a Nonforfeiture Option that provides continuing cash value
buildup? - ANS-Reduced Paid-up
Mortality Tables indicate the average number of individuals from a given group who will
die in a given year. - ANS-TRUE
An agent engaged in churning as a result of fraudulent conduct is subject to a fine of
________ for each willful violation. (2012) - ANS-$50,000
FICA taxes are applied to employees' incomes up to certain limits, called the: - ANS-
taxable wage base.
A Variable annuity separate account will be invested in: - ANS-common stocks and
other securities.
Depending upon the contract, annuity payments can begin immediately or they can be
deferred to a future date. The investment configuration: - ANS-can be either a fixed or
a variable rate of return.
Roland invested $30,000 in a deferred annuity when he was 30 years old, which grew to
$60,000 in 20 years. At age 50, he decides to take a partial withdrawal in the amount of
$15,000. What are the tax implications? - ANS-The $15,000 withdrawal is taxable as
ordinary income plus a 10% premature distribution penalty applies.
In 2004, the Florida legislature addressed the special needs of senior consumers with
regard to annuity investments. For instance, an agent is required to maintain records
relating to such transactions for ________ years. - ANS-five
, What does OASDI stand for? - ANS-Old Age, Survivors, Disability & Hospital
Insurance
Both supplementary and comprehensive major medical plans contain deductibles and
coinsurance. - ANS-true
With a Roth IRA, the contributory funds are taxed as income ______ the contributions
are made. - ANS-before
Evan decides to surrender his whole life policy for a reduced paid-up policy. The cash
value of his new policy will: - ANS-continue to increase
The three basic levels of long-term care are - ANS-institutional care, home-based
care, and community care.
Which of the following risks is insurable? - ANS-Pure risks
Commercial insurers operate on the _____________ method. - ANS-reimbursement
Medical Expense insurance is based on a contract of reimbursement. - ANS-TRUE
FIGA is the acronym for: - ANS-Florida Insurance Guaranty Association.
Bob's life insurance policy cash value is $10,000 and he has paid $8,000 in premiums.
He now wants to surrender the policy for its cash value. How much is considered
taxable? - ANS-$2,000
Lorraine was diagnosed with breast cancer in 2005 but has been cancer free since
2006. However, she still requires follow-up care. Lorraine secured a new job in 2012. Is
her breast cancer follow-up care considered a preexisting condition? Why? - ANS-No -
Breast cancer follow-up care is prohibited from being considered a preexisting
condition, unless breast cancer is found.
Accumulation units are converted into annuity units: - ANS-at the time of annuity
payout.
A group life insurance plan in which the employer pays the entire premium is known as
a ________________ plan. - ANS-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. - ANS-FALSE
Robert had an accident and qualified for Social Security disability. Given the waiting
period, when will Robert begin to receive benefits? - ANS-After 5 months
