FLORIDA HEALTH AND LIFE INSURANCE EXAM 2025|
ACTUAL EXAM QUESTIONS AND COMPREHENSIVE
ANSWERS|EXPERT VERIFIED FOR GUARANTEED PASS|
LATEST UPDATE
1. According to the Mandatory Uniform Policy Provisions, what is the maximum amount of
time after the premium due date during which the policy remains in force, even though the
premium has not been paid?
A. 7 days
B. 10 days
C. 31 days
D. 60 days
Correct Answer: C. 31 days
Rationale: A standard grace period for most life and health insurance policies is 31 days, during
which coverage remains in force despite nonpayment of premium.
2. G purchased a Family Income policy at age 40. The policy has a 20-year rider period. If
G dies at age 50, how long would G’s family receive an income?
A. 5 years
B. 20 years
C. 10 years
D. Until age 65
Correct Answer: C. 10 years
Rationale: A Family Income rider pays an income for the remainder of the rider period if death
occurs during that period. G died 10 years into the 20-year term, so the family receives income
for the remaining 10 years.
3. E and F are business partners, each owning a $500,000 life policy on the other. They
terminate their business, and four months later E dies. The primary beneficiary remains F,
but there is no longer an insurable interest. Where do the proceeds go?
A. E’s spouse and children
B. The original business
C. E’s estate
D. F, as named primary beneficiary
Correct Answer: D. F, as named primary beneficiary
Rationale: Even though the insurable interest no longer exists, the policy’s named beneficiary
remains valid, so F receives the proceeds.
,4. Under HIPAA, privacy protection applies primarily to:
A. Credit reports
B. Health information
C. Motor vehicle records
D. Income tax returns
Correct Answer: B. Health information
Rationale: HIPAA (Health Insurance Portability and Accountability Act) protects sensitive
health information from unauthorized disclosure.
5. Dread Disease policies cover:
A. Multiple unrelated ailments
B. Accidents on commercial airlines
C. A specific disease or illness
D. All medical expenses
Correct Answer: C. A specific disease or illness
Rationale: Dread Disease (or “Specified Disease”) policies cover only a named disease (e.g.,
cancer policy) rather than broad health conditions.
6. When an insurance application is taken by a producer, which statement is TRUE?
A. The producer may sign for the applicant if absent
B. Any changes on the application require the applicant’s initials
C. Only the producer’s signature is required on changes
D. The insurer makes the changes without needing anyone’s initials
Correct Answer: B. Any changes on the application require the applicant’s initials
Rationale: If an error or change is made on the application, the applicant must initial the
correction to confirm agreement.
7. A student pilot can pay regular premium costs for a life insurance policy with the
addition of which of the following?
A. Guaranteed insurability rider
B. Waiver of premium rider
C. Aviation exclusion
D. Accelerated benefit rider
, Correct Answer: C. Aviation exclusion
Rationale: An aviation exclusion can exclude coverage from certain aviation-related risks,
thereby enabling a standard premium rather than a higher “rated” premium.
8. In the Consideration clause of a life policy, the insurer’s consideration is:
A. The initial premium
B. A promise to pay the death benefit
C. The signed application
D. The underwriting results
Correct Answer: B. A promise to pay the death benefit
Rationale: The insurer’s “consideration” is its promise to pay benefits if the insured dies, while
the policyowner’s consideration is the application and the premium.
9. Which of the following reimburses its insureds for covered medical expenses?
A. Health Maintenance Organizations
B. Preferred Provider Organizations
C. Commercial insurers
D. Self-funded plans
Correct Answer: C. Commercial insurers
Rationale: Commercial insurers (stock or mutual companies) typically reimburse policyowners
for medical expenses as outlined in the policy.
10. Under Florida law, which of the following provisions is NOT required in a Medicare
Supplement policy?
A. Prohibition on duplication of Medicare benefits
B. Minimum standards for coverage
C. 6-month pre-existing condition limitation max
D. 12-month pre-existing condition limitation
Correct Answer: D. 12-month pre-existing condition limitation
Rationale: Florida law restricts Medicare Supplement pre-existing condition limitations to a
maximum of 6 months, not 12.
11. Which organization was established to provide funds to protect an insured in the event
of an insurer’s insolvency?
ACTUAL EXAM QUESTIONS AND COMPREHENSIVE
ANSWERS|EXPERT VERIFIED FOR GUARANTEED PASS|
LATEST UPDATE
1. According to the Mandatory Uniform Policy Provisions, what is the maximum amount of
time after the premium due date during which the policy remains in force, even though the
premium has not been paid?
A. 7 days
B. 10 days
C. 31 days
D. 60 days
Correct Answer: C. 31 days
Rationale: A standard grace period for most life and health insurance policies is 31 days, during
which coverage remains in force despite nonpayment of premium.
2. G purchased a Family Income policy at age 40. The policy has a 20-year rider period. If
G dies at age 50, how long would G’s family receive an income?
A. 5 years
B. 20 years
C. 10 years
D. Until age 65
Correct Answer: C. 10 years
Rationale: A Family Income rider pays an income for the remainder of the rider period if death
occurs during that period. G died 10 years into the 20-year term, so the family receives income
for the remaining 10 years.
3. E and F are business partners, each owning a $500,000 life policy on the other. They
terminate their business, and four months later E dies. The primary beneficiary remains F,
but there is no longer an insurable interest. Where do the proceeds go?
A. E’s spouse and children
B. The original business
C. E’s estate
D. F, as named primary beneficiary
Correct Answer: D. F, as named primary beneficiary
Rationale: Even though the insurable interest no longer exists, the policy’s named beneficiary
remains valid, so F receives the proceeds.
,4. Under HIPAA, privacy protection applies primarily to:
A. Credit reports
B. Health information
C. Motor vehicle records
D. Income tax returns
Correct Answer: B. Health information
Rationale: HIPAA (Health Insurance Portability and Accountability Act) protects sensitive
health information from unauthorized disclosure.
5. Dread Disease policies cover:
A. Multiple unrelated ailments
B. Accidents on commercial airlines
C. A specific disease or illness
D. All medical expenses
Correct Answer: C. A specific disease or illness
Rationale: Dread Disease (or “Specified Disease”) policies cover only a named disease (e.g.,
cancer policy) rather than broad health conditions.
6. When an insurance application is taken by a producer, which statement is TRUE?
A. The producer may sign for the applicant if absent
B. Any changes on the application require the applicant’s initials
C. Only the producer’s signature is required on changes
D. The insurer makes the changes without needing anyone’s initials
Correct Answer: B. Any changes on the application require the applicant’s initials
Rationale: If an error or change is made on the application, the applicant must initial the
correction to confirm agreement.
7. A student pilot can pay regular premium costs for a life insurance policy with the
addition of which of the following?
A. Guaranteed insurability rider
B. Waiver of premium rider
C. Aviation exclusion
D. Accelerated benefit rider
, Correct Answer: C. Aviation exclusion
Rationale: An aviation exclusion can exclude coverage from certain aviation-related risks,
thereby enabling a standard premium rather than a higher “rated” premium.
8. In the Consideration clause of a life policy, the insurer’s consideration is:
A. The initial premium
B. A promise to pay the death benefit
C. The signed application
D. The underwriting results
Correct Answer: B. A promise to pay the death benefit
Rationale: The insurer’s “consideration” is its promise to pay benefits if the insured dies, while
the policyowner’s consideration is the application and the premium.
9. Which of the following reimburses its insureds for covered medical expenses?
A. Health Maintenance Organizations
B. Preferred Provider Organizations
C. Commercial insurers
D. Self-funded plans
Correct Answer: C. Commercial insurers
Rationale: Commercial insurers (stock or mutual companies) typically reimburse policyowners
for medical expenses as outlined in the policy.
10. Under Florida law, which of the following provisions is NOT required in a Medicare
Supplement policy?
A. Prohibition on duplication of Medicare benefits
B. Minimum standards for coverage
C. 6-month pre-existing condition limitation max
D. 12-month pre-existing condition limitation
Correct Answer: D. 12-month pre-existing condition limitation
Rationale: Florida law restricts Medicare Supplement pre-existing condition limitations to a
maximum of 6 months, not 12.
11. Which organization was established to provide funds to protect an insured in the event
of an insurer’s insolvency?
