2026 Florida Health & Life Insurance Exam
Prep Part 1 | FL State Licensing Practice
Questions & Study Guide
Practice Question Bank & Answer Rationale
THIS PACK CONTAINS
150 exam-style multiple-choice questions. Each question includes the correct answer and a complete
rationale for focused revision.
COVERAGE
This exam assesses mastery of Florida-specific health and life insurance concepts, including licensing
requirements, policy provisions, annuities, health insurance products, and state regulations. It emphasizes
application of legal and ethical standards, product knowledge, and consumer protection rules required for the
Florida 2-15 and 2-14 licenses.
STUDY GUIDE
Recommended duration: 2 hours. Passing target: 70%.
HIGHP - Page 1 of 52
,1. Which of the following best describes the Florida rule regarding the continuation of
group health insurance coverage after an employee's termination?
[ ] A. Coverage continues for 18 months if the employer has 20 or more employees.
[ ] B. Coverage continues for 29 months if the employee is disabled at termination.
[ ] C. Coverage continues for 36 months for dependents in all cases.
[ ] D. Coverage continues only if the employee converts to an individual policy within 30 days.
CORRECT: A. Coverage continues for 18 months if the employer has 20 or more employees.
Florida's mini-COBRA applies to employers with fewer than 20 employees, but the federal COBRA rule for
employers with 20+ employees provides 18 months of continuation. Option B is incorrect because the
29-month extension applies only if the Social Security Administration determines disability within the first 60
days of COBRA. Option C is wrong because 36 months is for dependents in specific qualifying events, not all
cases. Option D is false because conversion is an alternative, not the continuation requirement.
2. An agent replaces a life insurance policy. Under Florida law, which action is required?
[ ] A. Provide the applicant with a copy of the 'Notice Regarding Replacement' signed by the agent.
[ ] B. Submit the replacement notice only to the replacing insurer within 5 days.
[ ] C. Obtain a written statement from the existing insurer that the policy is being replaced.
[ ] D. Wait 60 days after replacement before delivering the new policy.
CORRECT: A. Provide the applicant with a copy of the 'Notice Regarding Replacement' signed by the
agent.
Florida requires the agent to present and read the replacement notice to the applicant and obtain a signed
copy. Option B is incorrect because the notice must be given to the applicant, not just the insurer. Option C is
wrong because the existing insurer's statement is not required. Option D is false; there is no mandatory
60-day waiting period.
3. Which of the following is a characteristic of a Health Maintenance Organization (HMO) in
Florida?
[ ] A. Members may see any provider without a referral.
[ ] B. Services are provided on a prepaid basis through a network of providers.
[ ] C. Deductibles are typically higher than in indemnity plans.
[ ] D. Out-of-network care is covered at the same rate as in-network care.
CORRECT: B. Services are provided on a prepaid basis through a network of providers.
HMOs provide comprehensive services on a prepaid basis through a network, often requiring a primary care
physician and referrals. Option A is incorrect because HMOs typically require referrals for specialists. Option
C is false; HMOs usually have lower deductibles. Option D is wrong because out-of-network care is generally
not covered except in emergencies.
HIGHP - Page 2 of 52
,4. In Florida, which of the following is considered an unfair trade practice?
[ ] A. Comparing policies based on benefits and premiums.
[ ] B. Twisting an existing policy to induce a replacement.
[ ] C. Providing a buyer's guide and policy summary.
[ ] D. Advertising a policy with the insurer's name.
CORRECT: B. Twisting an existing policy to induce a replacement.
Twisting is an unfair trade practice involving misrepresentation to induce a policyholder to drop an existing
policy. Option A is a legitimate comparison. Option C is required by law. Option D is permissible if accurate
and not misleading.
5. Which of the following best describes the purpose of the Florida Life and Health
Insurance Guaranty Association?
[ ] A. To provide insurance coverage for high-risk individuals.
[ ] B. To protect policyholders against insurer insolvency up to specified limits.
[ ] C. To regulate insurance agents and agencies.
[ ] D. To offer free health screenings to policyholders.
CORRECT: B. To protect policyholders against insurer insolvency up to specified limits.
The Guaranty Association protects policyholders if an insurer becomes insolvent, subject to statutory limits.
Option A is incorrect; that is a function of residual market pools. Option C is the role of the Florida
Department of Financial Services. Option D is unrelated.
6. An agent fails to remit premiums collected from policyholders to the insurer. This is an
example of:
[ ] A. Commingling
[ ] B. Rebating
[ ] C. Twisting
[ ] D. Defamation
CORRECT: A. Commingling
Commingling is the illegal mixing of personal funds with premiums collected. Rebating is offering
inducements to purchase insurance. Twisting is misrepresentation to induce replacement. Defamation is
making false statements about an insurer.
7. Which of the following statements about a life insurance policy's free-look period in
Florida is correct?
[ ] A. The free-look period is 10 days for all policies.
[ ] B. The free-look period is 14 days for policies issued to persons 65 and older.
[ ] C. The free-look period is 20 days for annuities.
HIGHP - Page 3 of 52
, [ ] D. The free-look period begins on the application date.
CORRECT: B. The free-look period is 14 days for policies issued to persons 65 and older.
Florida requires a 14-day free-look period for life insurance policies issued to individuals aged 65 and older;
otherwise, it is 10 days. Option A is incorrect because it ignores the age-based extension. Option C is false;
annuities have a 10-day free look. Option D is wrong; the period begins upon policy delivery.
8. Which of the following is true regarding the taxation of life insurance proceeds?
[ ] A. The death benefit is generally income tax-free to the beneficiary.
[ ] B. The death benefit is subject to federal income tax.
[ ] C. Premiums paid are tax-deductible for individuals.
[ ] D. Cash value growth is taxed annually.
CORRECT: A. The death benefit is generally income tax-free to the beneficiary.
Death benefits are generally received income tax-free by beneficiaries. Option B is false; death benefits are
not subject to income tax. Option C is incorrect; premiums are not deductible for personal life insurance.
Option D is wrong; cash value grows tax-deferred.
9. In Florida, which of the following is required for a temporary life insurance license?
[ ] A. The applicant must have a minimum of 2 years of experience.
[ ] B. The applicant must be sponsored by a licensed agent.
[ ] C. The license is valid for 180 days.
[ ] D. The applicant must complete 40 hours of prelicensing education.
CORRECT: B. The applicant must be sponsored by a licensed agent.
A temporary license requires sponsorship by a licensed agent who supervises the temporary licensee. Option
A is false; no experience is required. Option C is incorrect; the temporary license is valid for 90 days. Option
D is false; prelicensing education is required for a permanent license, not temporary.
10. Which of the following best describes the role of the Florida Department of Financial
Services (DFS) in insurance regulation?
[ ] A. It sets federal insurance laws.
[ ] B. It licenses and regulates insurance agents and agencies.
[ ] C. It provides insurance coverage for state employees only.
[ ] D. It adjudicates all insurance claims disputes.
CORRECT: B. It licenses and regulates insurance agents and agencies.
The DFS licenses and regulates insurance agents, adjusters, and agencies in Florida. Option A is incorrect;
insurance is regulated at the state level. Option C is false; DFS does not provide coverage. Option D is
wrong; DFS investigates but does not adjudicate all disputes.
HIGHP - Page 4 of 52
Prep Part 1 | FL State Licensing Practice
Questions & Study Guide
Practice Question Bank & Answer Rationale
THIS PACK CONTAINS
150 exam-style multiple-choice questions. Each question includes the correct answer and a complete
rationale for focused revision.
COVERAGE
This exam assesses mastery of Florida-specific health and life insurance concepts, including licensing
requirements, policy provisions, annuities, health insurance products, and state regulations. It emphasizes
application of legal and ethical standards, product knowledge, and consumer protection rules required for the
Florida 2-15 and 2-14 licenses.
STUDY GUIDE
Recommended duration: 2 hours. Passing target: 70%.
HIGHP - Page 1 of 52
,1. Which of the following best describes the Florida rule regarding the continuation of
group health insurance coverage after an employee's termination?
[ ] A. Coverage continues for 18 months if the employer has 20 or more employees.
[ ] B. Coverage continues for 29 months if the employee is disabled at termination.
[ ] C. Coverage continues for 36 months for dependents in all cases.
[ ] D. Coverage continues only if the employee converts to an individual policy within 30 days.
CORRECT: A. Coverage continues for 18 months if the employer has 20 or more employees.
Florida's mini-COBRA applies to employers with fewer than 20 employees, but the federal COBRA rule for
employers with 20+ employees provides 18 months of continuation. Option B is incorrect because the
29-month extension applies only if the Social Security Administration determines disability within the first 60
days of COBRA. Option C is wrong because 36 months is for dependents in specific qualifying events, not all
cases. Option D is false because conversion is an alternative, not the continuation requirement.
2. An agent replaces a life insurance policy. Under Florida law, which action is required?
[ ] A. Provide the applicant with a copy of the 'Notice Regarding Replacement' signed by the agent.
[ ] B. Submit the replacement notice only to the replacing insurer within 5 days.
[ ] C. Obtain a written statement from the existing insurer that the policy is being replaced.
[ ] D. Wait 60 days after replacement before delivering the new policy.
CORRECT: A. Provide the applicant with a copy of the 'Notice Regarding Replacement' signed by the
agent.
Florida requires the agent to present and read the replacement notice to the applicant and obtain a signed
copy. Option B is incorrect because the notice must be given to the applicant, not just the insurer. Option C is
wrong because the existing insurer's statement is not required. Option D is false; there is no mandatory
60-day waiting period.
3. Which of the following is a characteristic of a Health Maintenance Organization (HMO) in
Florida?
[ ] A. Members may see any provider without a referral.
[ ] B. Services are provided on a prepaid basis through a network of providers.
[ ] C. Deductibles are typically higher than in indemnity plans.
[ ] D. Out-of-network care is covered at the same rate as in-network care.
CORRECT: B. Services are provided on a prepaid basis through a network of providers.
HMOs provide comprehensive services on a prepaid basis through a network, often requiring a primary care
physician and referrals. Option A is incorrect because HMOs typically require referrals for specialists. Option
C is false; HMOs usually have lower deductibles. Option D is wrong because out-of-network care is generally
not covered except in emergencies.
HIGHP - Page 2 of 52
,4. In Florida, which of the following is considered an unfair trade practice?
[ ] A. Comparing policies based on benefits and premiums.
[ ] B. Twisting an existing policy to induce a replacement.
[ ] C. Providing a buyer's guide and policy summary.
[ ] D. Advertising a policy with the insurer's name.
CORRECT: B. Twisting an existing policy to induce a replacement.
Twisting is an unfair trade practice involving misrepresentation to induce a policyholder to drop an existing
policy. Option A is a legitimate comparison. Option C is required by law. Option D is permissible if accurate
and not misleading.
5. Which of the following best describes the purpose of the Florida Life and Health
Insurance Guaranty Association?
[ ] A. To provide insurance coverage for high-risk individuals.
[ ] B. To protect policyholders against insurer insolvency up to specified limits.
[ ] C. To regulate insurance agents and agencies.
[ ] D. To offer free health screenings to policyholders.
CORRECT: B. To protect policyholders against insurer insolvency up to specified limits.
The Guaranty Association protects policyholders if an insurer becomes insolvent, subject to statutory limits.
Option A is incorrect; that is a function of residual market pools. Option C is the role of the Florida
Department of Financial Services. Option D is unrelated.
6. An agent fails to remit premiums collected from policyholders to the insurer. This is an
example of:
[ ] A. Commingling
[ ] B. Rebating
[ ] C. Twisting
[ ] D. Defamation
CORRECT: A. Commingling
Commingling is the illegal mixing of personal funds with premiums collected. Rebating is offering
inducements to purchase insurance. Twisting is misrepresentation to induce replacement. Defamation is
making false statements about an insurer.
7. Which of the following statements about a life insurance policy's free-look period in
Florida is correct?
[ ] A. The free-look period is 10 days for all policies.
[ ] B. The free-look period is 14 days for policies issued to persons 65 and older.
[ ] C. The free-look period is 20 days for annuities.
HIGHP - Page 3 of 52
, [ ] D. The free-look period begins on the application date.
CORRECT: B. The free-look period is 14 days for policies issued to persons 65 and older.
Florida requires a 14-day free-look period for life insurance policies issued to individuals aged 65 and older;
otherwise, it is 10 days. Option A is incorrect because it ignores the age-based extension. Option C is false;
annuities have a 10-day free look. Option D is wrong; the period begins upon policy delivery.
8. Which of the following is true regarding the taxation of life insurance proceeds?
[ ] A. The death benefit is generally income tax-free to the beneficiary.
[ ] B. The death benefit is subject to federal income tax.
[ ] C. Premiums paid are tax-deductible for individuals.
[ ] D. Cash value growth is taxed annually.
CORRECT: A. The death benefit is generally income tax-free to the beneficiary.
Death benefits are generally received income tax-free by beneficiaries. Option B is false; death benefits are
not subject to income tax. Option C is incorrect; premiums are not deductible for personal life insurance.
Option D is wrong; cash value grows tax-deferred.
9. In Florida, which of the following is required for a temporary life insurance license?
[ ] A. The applicant must have a minimum of 2 years of experience.
[ ] B. The applicant must be sponsored by a licensed agent.
[ ] C. The license is valid for 180 days.
[ ] D. The applicant must complete 40 hours of prelicensing education.
CORRECT: B. The applicant must be sponsored by a licensed agent.
A temporary license requires sponsorship by a licensed agent who supervises the temporary licensee. Option
A is false; no experience is required. Option C is incorrect; the temporary license is valid for 90 days. Option
D is false; prelicensing education is required for a permanent license, not temporary.
10. Which of the following best describes the role of the Florida Department of Financial
Services (DFS) in insurance regulation?
[ ] A. It sets federal insurance laws.
[ ] B. It licenses and regulates insurance agents and agencies.
[ ] C. It provides insurance coverage for state employees only.
[ ] D. It adjudicates all insurance claims disputes.
CORRECT: B. It licenses and regulates insurance agents and agencies.
The DFS licenses and regulates insurance agents, adjusters, and agencies in Florida. Option A is incorrect;
insurance is regulated at the state level. Option C is false; DFS does not provide coverage. Option D is
wrong; DFS investigates but does not adjudicate all disputes.
HIGHP - Page 4 of 52
