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Florida 2-15 Life, Health & Insurance Law Practice Exam Questions & Answers 2026/2027
100 Questions with Verified Answers
Study Guide Note: This practice exam is aligned with the 2026/2027 Florida 2-15 Health &
Life (Including Annuities & Variable Contracts) Agent License exam content outline. The
actual state exam consists of 165 multiple-choice questions (150 scored + 15 unscored
pretest), with a 2-hour 45-minute time limit and a 70% passing score (105 of 150 scored
questions) . Pre-licensing education requires 60 hours for the 2-15 license .
Section 1: Insurance Fundamentals & Risk Management (Questions 1–20)
1. The primary purpose of insurance is to:
A. Eliminate all risk
B. Transfer risk from the insured to the insurer
C. Increase hazards
D. Spread moral risk
Answer: B. Insurance transfers financial risk to an insurer in exchange for a premium. It does
not eliminate risk but spreads it among many policyholders .
2. The law of large numbers is used by insurers to:
A. Limit coverage
B. Predict future losses more accurately
C. Increase moral hazard
D. Reduce underwriting
Answer: B. The law of large numbers enables insurers to predict future losses more
accurately by analyzing larger data sets, which improves risk pricing and premium setting .
3. Which of the following is an example of a pure risk?
A. Gambling
B. Premises liability claim from a slip-and-fall
C. Investing in stocks
D. Buying lottery tickets
Answer: B. Pure risks involve only the possibility of loss (no opportunity for gain) and are
insurable. Speculative risks involve both gain and loss and are generally not insurable .
4. Which of the following is NOT an element of insurable risk?
A. Definite loss
B. Unlimited exposure
C. Calculable loss
D. Large homogeneous group
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Answer: B. For a risk to be insurable, the loss must be definite and measurable, calculable,
and part of a large homogeneous group. Unlimited exposure is uninsurable .
5. A peril is best defined as:
A. A moral hazard
B. The cause of a loss
C. An exclusion
D. A deductible
Answer: B. A peril is the event that causes a loss (e.g., fire, illness, accident). A hazard is a
condition that increases the chance of loss .
6. A hazard is something that:
A. Increases profit
B. Increases the chance of loss
C. Increases coverage limits
D. Increases premium rebates
Answer: B. Hazards increase the likelihood of a peril causing a loss .
7. Indemnity in insurance means:
A. Double payment
B. Restoring the insured to their pre-loss financial position
C. Punitive damages
D. Profit for the insurer
Answer: B. Indemnity means restoring the insured to approximately the same financial
position they enjoyed before the loss occurred .
8. An applicant for life insurance conceals a known history of heart disease on the
application. This is an example of:
A. A physical hazard
B. A moral hazard
C. A morale hazard
D. A speculative risk
Answer: B. A moral hazard involves intentional dishonesty or concealment by an applicant to
obtain coverage or better rates. Failing to disclose a known material health condition
constitutes intentional misrepresentation .
9. Which of the following represents multiple insurance companies?
A. Captive agent
B. Independent agent
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C. Career agent
D. Exclusive agent
Answer: B. An independent agent represents multiple insurance companies, while captive,
career, and exclusive agents typically represent only one company .
10. Which agency is responsible for helping to standardize state insurance laws across the
country?
A. FTC
B. NAIC
C. SEC
D. U.S. Treasury
Answer: B. The National Association of Insurance Commissioners (NAIC) helps standardize
insurance laws across states, though each state ultimately adopts its own laws .
11. Which type of insurer is owned by its policyholders and pays dividends?
A. Stock insurer
B. Mutual insurer
C. Fraternal insurer
D. Reinsurer
Answer: B. Mutual insurers are owned by their policyholders, who have voting rights to elect
the governing body, and may pay dividends to them .
12. Who elects the governing body of a mutual insurance company?
A. Shareholders
B. Policyholders
C. State regulators
D. Board of directors
Answer: B. Mutual insurance companies are owned by their policyholders, who have voting
rights to elect the governing body .
13. A policy of adhesion can only be modified by whom?
A. The insured
B. The insurance company
C. The agent
D. The beneficiary
Answer: B. A contract of adhesion is written by one party (the insurer) and accepted or
rejected by the other (the insured). It can only be modified by the insurance company .
Florida 2-15 Life, Health & Insurance Law Practice Exam Questions & Answers 2026/2027
100 Questions with Verified Answers
Study Guide Note: This practice exam is aligned with the 2026/2027 Florida 2-15 Health &
Life (Including Annuities & Variable Contracts) Agent License exam content outline. The
actual state exam consists of 165 multiple-choice questions (150 scored + 15 unscored
pretest), with a 2-hour 45-minute time limit and a 70% passing score (105 of 150 scored
questions) . Pre-licensing education requires 60 hours for the 2-15 license .
Section 1: Insurance Fundamentals & Risk Management (Questions 1–20)
1. The primary purpose of insurance is to:
A. Eliminate all risk
B. Transfer risk from the insured to the insurer
C. Increase hazards
D. Spread moral risk
Answer: B. Insurance transfers financial risk to an insurer in exchange for a premium. It does
not eliminate risk but spreads it among many policyholders .
2. The law of large numbers is used by insurers to:
A. Limit coverage
B. Predict future losses more accurately
C. Increase moral hazard
D. Reduce underwriting
Answer: B. The law of large numbers enables insurers to predict future losses more
accurately by analyzing larger data sets, which improves risk pricing and premium setting .
3. Which of the following is an example of a pure risk?
A. Gambling
B. Premises liability claim from a slip-and-fall
C. Investing in stocks
D. Buying lottery tickets
Answer: B. Pure risks involve only the possibility of loss (no opportunity for gain) and are
insurable. Speculative risks involve both gain and loss and are generally not insurable .
4. Which of the following is NOT an element of insurable risk?
A. Definite loss
B. Unlimited exposure
C. Calculable loss
D. Large homogeneous group
,2
Answer: B. For a risk to be insurable, the loss must be definite and measurable, calculable,
and part of a large homogeneous group. Unlimited exposure is uninsurable .
5. A peril is best defined as:
A. A moral hazard
B. The cause of a loss
C. An exclusion
D. A deductible
Answer: B. A peril is the event that causes a loss (e.g., fire, illness, accident). A hazard is a
condition that increases the chance of loss .
6. A hazard is something that:
A. Increases profit
B. Increases the chance of loss
C. Increases coverage limits
D. Increases premium rebates
Answer: B. Hazards increase the likelihood of a peril causing a loss .
7. Indemnity in insurance means:
A. Double payment
B. Restoring the insured to their pre-loss financial position
C. Punitive damages
D. Profit for the insurer
Answer: B. Indemnity means restoring the insured to approximately the same financial
position they enjoyed before the loss occurred .
8. An applicant for life insurance conceals a known history of heart disease on the
application. This is an example of:
A. A physical hazard
B. A moral hazard
C. A morale hazard
D. A speculative risk
Answer: B. A moral hazard involves intentional dishonesty or concealment by an applicant to
obtain coverage or better rates. Failing to disclose a known material health condition
constitutes intentional misrepresentation .
9. Which of the following represents multiple insurance companies?
A. Captive agent
B. Independent agent
, 3
C. Career agent
D. Exclusive agent
Answer: B. An independent agent represents multiple insurance companies, while captive,
career, and exclusive agents typically represent only one company .
10. Which agency is responsible for helping to standardize state insurance laws across the
country?
A. FTC
B. NAIC
C. SEC
D. U.S. Treasury
Answer: B. The National Association of Insurance Commissioners (NAIC) helps standardize
insurance laws across states, though each state ultimately adopts its own laws .
11. Which type of insurer is owned by its policyholders and pays dividends?
A. Stock insurer
B. Mutual insurer
C. Fraternal insurer
D. Reinsurer
Answer: B. Mutual insurers are owned by their policyholders, who have voting rights to elect
the governing body, and may pay dividends to them .
12. Who elects the governing body of a mutual insurance company?
A. Shareholders
B. Policyholders
C. State regulators
D. Board of directors
Answer: B. Mutual insurance companies are owned by their policyholders, who have voting
rights to elect the governing body .
13. A policy of adhesion can only be modified by whom?
A. The insured
B. The insurance company
C. The agent
D. The beneficiary
Answer: B. A contract of adhesion is written by one party (the insurer) and accepted or
rejected by the other (the insured). It can only be modified by the insurance company .
