1
Exam Simulator Florida – Life & Health
(FL Health, Life & Annuity) | Complete
Study Guide with 200+ Actual Test
Questions & Verified Answers (Xcel
Solutions – Pearson, Graded A)
Question 1
What type of insurance company is domiciled in England but conducts business in Florida?
A) Domestic
B) Foreign
C) Alien
D) Mutual
C) Alien
Rationale: An alien insurance company is one that is domiciled outside the United States but
licensed to conduct business in Florida. A domestic company is incorporated in Florida, a foreign
company is incorporated in another U.S. state, and mutual refers to ownership structure, not
domicile.
Question 2
What is the minimum age at which a person can sign a life insurance application in Florida?
A) 14
B) 15
C) 16
D) 18
B) 15
Rationale: Florida insurance regulations allow individuals aged 15 or older to sign a life
insurance application, as they are deemed capable of entering into such contracts. This is specific
to life insurance and differs from other contract types.
Question 3
, 2
In Florida, monthly-premium health insurance policies must provide a grace period of at least:
A) 7 days
B) 10 days
C) 30 days
D) 31 days
B) 10 days
Rationale: Florida statutes require a minimum 10-day grace period for monthly-premium
health insurance policies, during which the policy remains in force even if the premium is
unpaid. Annual or quarterly policies have a 31-day grace period.
Question 4
What action should a producer take if five questions on a life insurance application are
unanswered?
A) Submit the application as is
B) Answer the questions on behalf of the applicant
C) Set up a meeting with the applicant to complete the answers
D) Cancel the application
C) Set up a meeting with the applicant to complete the answers
Rationale: Florida regulations require that all application questions be answered accurately.
A producer must meet with the applicant to complete unanswered questions to ensure
compliance and avoid misrepresentation. Submitting incomplete applications or answering for
the applicant is unethical and illegal.
Question 5
How are adjustable rates for life policy loans in Florida determined?
A) Fixed by the state insurance commissioner
B) Based on Moody’s corporate bond index
C) Set by the Federal Reserve
D) Determined by the policyholder’s credit score
B) Based on Moody’s corporate bond index
Rationale: Florida regulations stipulate that adjustable rates for life insurance policy loans
are tied to Moody’s corporate bond index, ensuring rates reflect market conditions. The state,
Federal Reserve, or credit scores do not determine these rates.
, 3
Question 6
Which practitioner typically does not receive payment from health insurance policies in Florida?
A) Chiropractors
B) Naturopaths
C) Dentists
D) Physical therapists
B) Naturopaths
Rationale: In Florida, naturopaths are not typically covered by health insurance policies, as
their services are often considered non-standard or alternative. Chiropractors, dentists, and
physical therapists are generally covered under specific policy provisions.
Question 7
What is the purpose of the coordination of benefits (COB) provision in health insurance?
A) Increase premium costs
B) Avoid duplication of benefit payments
C) Extend policy coverage periods
D) Simplify claim denials
B) Avoid duplication of benefit payments
Rationale: The COB provision ensures that when multiple insurance policies cover an
individual, benefits are coordinated to prevent overpayment or duplication, maintaining fairness
and cost efficiency.
Question 8
Which health policy provision states that the agent cannot change the policy or waive its
provisions?
A) Entire Contract
B) Time Limit on Certain Defenses
C) Grace Period
D) Reinstatement
A) Entire Contract
Rationale: The Entire Contract provision in Florida health insurance policies specifies that
the policy, application, and attached riders constitute the entire agreement, and agents lack
authority to modify or waive terms.
, 4
Question 9
An insurer exaggerating dividends in a magazine advertisement is an example of:
A) Fair advertising
B) False advertising
C) Rebating
D) Twisting
B) False advertising
Rationale: Exaggerating dividends misleads consumers about policy benefits, violating
Florida’s unfair trade practices laws. Rebating involves offering premium discounts, and twisting
involves misrepresenting policies to induce replacement.
Question 10
Which act is an agent NOT authorized to perform on behalf of an insurer?
A) Solicit applications
B) Collect premiums
C) Authorize claim payments
D) Provide policy information
C) Authorize claim payments
Rationale: Agents in Florida are authorized to solicit applications, collect premiums, and
provide policy information but cannot authorize claim payments, which is the insurer’s
responsibility to ensure compliance with policy terms.
Question 11
In Florida, an insurer incorporated in this state is called a:
A) Foreign company
B) Domestic company
C) Alien company
D) Stock company
B) Domestic company
Rationale: A domestic company is incorporated and domiciled in Florida. Foreign
companies are incorporated in another U.S. state, alien companies are domiciled abroad, and
stock refers to ownership structure, not location.
Exam Simulator Florida – Life & Health
(FL Health, Life & Annuity) | Complete
Study Guide with 200+ Actual Test
Questions & Verified Answers (Xcel
Solutions – Pearson, Graded A)
Question 1
What type of insurance company is domiciled in England but conducts business in Florida?
A) Domestic
B) Foreign
C) Alien
D) Mutual
C) Alien
Rationale: An alien insurance company is one that is domiciled outside the United States but
licensed to conduct business in Florida. A domestic company is incorporated in Florida, a foreign
company is incorporated in another U.S. state, and mutual refers to ownership structure, not
domicile.
Question 2
What is the minimum age at which a person can sign a life insurance application in Florida?
A) 14
B) 15
C) 16
D) 18
B) 15
Rationale: Florida insurance regulations allow individuals aged 15 or older to sign a life
insurance application, as they are deemed capable of entering into such contracts. This is specific
to life insurance and differs from other contract types.
Question 3
, 2
In Florida, monthly-premium health insurance policies must provide a grace period of at least:
A) 7 days
B) 10 days
C) 30 days
D) 31 days
B) 10 days
Rationale: Florida statutes require a minimum 10-day grace period for monthly-premium
health insurance policies, during which the policy remains in force even if the premium is
unpaid. Annual or quarterly policies have a 31-day grace period.
Question 4
What action should a producer take if five questions on a life insurance application are
unanswered?
A) Submit the application as is
B) Answer the questions on behalf of the applicant
C) Set up a meeting with the applicant to complete the answers
D) Cancel the application
C) Set up a meeting with the applicant to complete the answers
Rationale: Florida regulations require that all application questions be answered accurately.
A producer must meet with the applicant to complete unanswered questions to ensure
compliance and avoid misrepresentation. Submitting incomplete applications or answering for
the applicant is unethical and illegal.
Question 5
How are adjustable rates for life policy loans in Florida determined?
A) Fixed by the state insurance commissioner
B) Based on Moody’s corporate bond index
C) Set by the Federal Reserve
D) Determined by the policyholder’s credit score
B) Based on Moody’s corporate bond index
Rationale: Florida regulations stipulate that adjustable rates for life insurance policy loans
are tied to Moody’s corporate bond index, ensuring rates reflect market conditions. The state,
Federal Reserve, or credit scores do not determine these rates.
, 3
Question 6
Which practitioner typically does not receive payment from health insurance policies in Florida?
A) Chiropractors
B) Naturopaths
C) Dentists
D) Physical therapists
B) Naturopaths
Rationale: In Florida, naturopaths are not typically covered by health insurance policies, as
their services are often considered non-standard or alternative. Chiropractors, dentists, and
physical therapists are generally covered under specific policy provisions.
Question 7
What is the purpose of the coordination of benefits (COB) provision in health insurance?
A) Increase premium costs
B) Avoid duplication of benefit payments
C) Extend policy coverage periods
D) Simplify claim denials
B) Avoid duplication of benefit payments
Rationale: The COB provision ensures that when multiple insurance policies cover an
individual, benefits are coordinated to prevent overpayment or duplication, maintaining fairness
and cost efficiency.
Question 8
Which health policy provision states that the agent cannot change the policy or waive its
provisions?
A) Entire Contract
B) Time Limit on Certain Defenses
C) Grace Period
D) Reinstatement
A) Entire Contract
Rationale: The Entire Contract provision in Florida health insurance policies specifies that
the policy, application, and attached riders constitute the entire agreement, and agents lack
authority to modify or waive terms.
, 4
Question 9
An insurer exaggerating dividends in a magazine advertisement is an example of:
A) Fair advertising
B) False advertising
C) Rebating
D) Twisting
B) False advertising
Rationale: Exaggerating dividends misleads consumers about policy benefits, violating
Florida’s unfair trade practices laws. Rebating involves offering premium discounts, and twisting
involves misrepresenting policies to induce replacement.
Question 10
Which act is an agent NOT authorized to perform on behalf of an insurer?
A) Solicit applications
B) Collect premiums
C) Authorize claim payments
D) Provide policy information
C) Authorize claim payments
Rationale: Agents in Florida are authorized to solicit applications, collect premiums, and
provide policy information but cannot authorize claim payments, which is the insurer’s
responsibility to ensure compliance with policy terms.
Question 11
In Florida, an insurer incorporated in this state is called a:
A) Foreign company
B) Domestic company
C) Alien company
D) Stock company
B) Domestic company
Rationale: A domestic company is incorporated and domiciled in Florida. Foreign
companies are incorporated in another U.S. state, alien companies are domiciled abroad, and
stock refers to ownership structure, not location.
