FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2023-2024 ACTUAL EXAM 300 QUESTIONS AND CORRECT
ANSWERS WITH RATIONALES |AGRADE|NEW!!
__________ is when policy values of an insurance policy are used to purchase another policy with the
same insurer for the sole purpose of earning additional premiums or commissions. - ansChurning
___________ refers to the monies set aside by insurers for future claims costs. - ansReserve funds
____________ term insurance provides a level amount of protection for a specified period, after which the
policy expires. - ansLevel
_____________ health insurance is issued to cover a group who may be exposed to the same risks, but
the composition of the group is constantly changing. - ansBlanket
_______________ policies are commonly used as a hedge against inflation to ward off decreased
purchasing power. - ansIncreasing term
__________________ are the two most important factors in the health insurance underwriting process. -
ansMedical history and occupation
"ACC" refers to the type of disability that prevents someone from performing the job he was performing
prior to the disability. - ansFALSE
A _____________ group involves combining several parties into a group for the purpose of obtaining
insurance. - ansfictitious
A complete examination of an HMO's affairs is conducted at least: - ansonce every five years.
A group life insurance plan in which the employer pays the entire premium is known as a
________________ plan. - ansnoncontributory
A health plan with a $5-per-point conversion factor would pay _______ for a 200-point procedure. -
ans$1,000
A life insurance policy will not be reinstated if it has been: - anssurrendered for its cash value.
A life insurance policy's cash value belongs to the insured. - ansFALSE
A man commits suicide 30 months after purchasing a life insurance policy and his wife is the named
beneficiary. What amount will his wife receive? - ansThe face amount of the policy
A medical expense policy states that it will pay a flat $200 a day for each day of hospitalization. The policy
pays benefits on what basis? - ansIndemnity
A portion of a mutual insurer's premiums are paid out as policy dividends and are considered: -
ansrefunds
A prospectus for an individual variable insurance contract: - ansmust accompany every sales
presentation.
A term life insurance policy's cash value builds during a specifically limited period of time. - ansFALSE
A Variable annuity separate account will be invested in: - anscommon stocks and other securities.
,FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2023-2024 ACTUAL EXAM 300 QUESTIONS AND CORRECT
ANSWERS WITH RATIONALES |AGRADE|NEW!!
According to Florida's Standard Valuation Law, the __________________ is mandatory. - anslegal
reserve
Accumulation units are converted into annuity units: - ansat the time of annuity payout.
AD&D policies make benefits payable in the form of principal sum and capital sum. - ansTRUE
Agents should check with _________________ to determine if the insurer they are representing is a
properly authorized insurer. - ansthe Department of Financial Services
All statements made on an application are considered ________________ because there can be no
guarantee that they are true. - ansrepresentations
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
An agreement that provides that upon a business owner's death, surviving owners will purchase the
deceased's interest, often with funds from life insurance policies owned by each principal on the lives of
all other principals is the: - ansBuy-Sell plan.
An immediate annuity is designed to provide income: - ansImmediately.
An insurance clause is a distinct article in a formal document that establishes the rules in the contract that
_____________________ must adhere to. - ansboth the insurer and the insured
An organization outside the members of a self-insurance group which, for a fee, processes claims,
completes benefits paperwork and often analyzes claims information is known as the: - ansthird-party
administrator (TPA).
Annuity payment amounts are based upon which of the following factors? - ansStarting principal, interest,
and income period
Anyone under the age of _____ who has earned income may open a traditional IRA. - ans70 1/2
Basic Medical Expense insurance limits coverage to specific types of medical care. - ansTRUE
Bill gives Jim a couple of tickets to a Florida Gators game to thank him for purchasing a policy. This is an
example of: - ansrebating
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
Both supplementary and comprehensive major medical plans contain deductibles and coinsurance. -
anstrue
Business overhead expense (B.O.E.) insurance does not provide benefits to cover the business owner's
salary. - ansTRUE
Buy-sell agreements can only be drafted by: - ansan attorney.
Changing one's lifestyle to minimize a known risk is an example of: - ansRisk Reduction.
,FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2023-2024 ACTUAL EXAM 300 QUESTIONS AND CORRECT
ANSWERS WITH RATIONALES |AGRADE|NEW!!
COBRA provides health benefit extensions for ____________ after employment is terminated. - ans18
months
Commercial insurers operate on the _____________ method. - ansreimbursement
Complete this sentence: "Typically, the shorter the premium-paying period, the _________________." -
anshigher the premium.
Deductibles under a group major medical plan usually run from $250 to $500; whereas individual health
plans usually run from: - ans$1,000 plus.
Depending upon the contract, annuity payments can begin immediately or they can be deferred to a
future date. The investment configuration: - anscan be either a fixed or a variable rate of return.
Disability insurance provides an income stream for an individual who is unable to continue working due to
accident or illness. However, if a person is under ______ disabled, he/she does not qualify for benefits. -
ans20%
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? - ansNO
Employees may be classified for group life insurance in all of the following categories EXCEPT which? -
ansGender
Equity indexed annuities are a form of: - ansfixed rate annuity.
Evan decides to surrender his whole life policy for a reduced paid-up policy. The cash value of his new
policy will: - anscontinue to increase
Every HMO subscriber must receive a benefits package that includes a copy of the HMO contract and
certificate, and: - ansa member's handbook.
FICA taxes are applied to employees' incomes up to certain limits, called the: - anstaxable wage base.
FIGA is the acronym for: - ansFlorida Insurance Guaranty Association.
Florida law does not regulate retirement plans. - ansTRUE
Florida law requires health insurance policies and HMO contracts to provide coverage for all medically
necessary equipment, supplies and services used to treat diabetes when the patient's physician certifies
that they are medically necessary. - ansTRUE
Florida statutes require licensees to notify the Department in writing within _____ days after a change of
name, residence address, principal business street address, or mailing address. - ans60
Group health insurers must either provide or offer chiropractic coverage. - ansTRUE
Group health plans that are issued by mutual companies usually provide dividends, which are most likely
to be paid if __________________ are less than anticipated. - ansexpenses and claims costs
Group health plans that are issued on an experience-rated basis can make both premium reductions and
premium increases retroactive for 12 months. - ansFALSE
, FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2023-2024 ACTUAL EXAM 300 QUESTIONS AND CORRECT
ANSWERS WITH RATIONALES |AGRADE|NEW!!
Henry has a Life with Period Certain annuity (life or ten years) in which is wife, Harriet, is beneficiary. If
Henry dies after 5 years, what will Harriet receive? - ansPayments for the remaining five years
HMOs and PPOs are required under Florida law to provide members direct access to which of the
following? - ansAll - Dermatologists and chiropractors, optometrists and OB gynecologists, and podiatrists
HMOs reimburse their insureds for covered medical expenses. - ansFALSE
Hospice services are covered under Medicare Part A. - ansTRUE
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. - ansFALSE
If a life insurance applicant is given a conditional receipt, what is the effective date of coverage? - ansThe
time the insurer accepts the application and issues the policy
If an annuitant owns 300 annuity units and receives $1,500 a month, what is the value of each annuity
unit? - ans$5
If an insurance company reimburses the insured for medical expenses, can the insured deduct that
amount from their federal income tax? - ansNO
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. - ansfive
In a guaranteed renewable health policy, the company may increase premiums: - ansonly for an entire
class of insureds.
In Florida, a ______________ must sign for and on behalf of a minor purchasing life insurance. -
ansparent or legal guardian
In Florida, a child must be at least ____ years of age to sign a life insurance application. - ans15
In Florida, which of the following groups are eligible for group life insurance? - ansTypically, any type of
legitimate group is eligible to purchase a group life insurance policy.
In general, the standard life insurance Incontestable Clause means that a policy is incontestable after: -
anstwo years.
In order to qualify for Medicaid benefits, applicants must be at least age ____, blind or disabled, and meet
other eligibility requirements. - ans65
In regard to variable annuities, which of the following statements is FALSE? - ansThe annuitant bears no
risk.
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. - ansTRUE
Insurable interest must exist at: - ansthe time of application.
ANSWERS WITH RATIONALES |AGRADE|NEW!!
__________ is when policy values of an insurance policy are used to purchase another policy with the
same insurer for the sole purpose of earning additional premiums or commissions. - ansChurning
___________ refers to the monies set aside by insurers for future claims costs. - ansReserve funds
____________ term insurance provides a level amount of protection for a specified period, after which the
policy expires. - ansLevel
_____________ health insurance is issued to cover a group who may be exposed to the same risks, but
the composition of the group is constantly changing. - ansBlanket
_______________ policies are commonly used as a hedge against inflation to ward off decreased
purchasing power. - ansIncreasing term
__________________ are the two most important factors in the health insurance underwriting process. -
ansMedical history and occupation
"ACC" refers to the type of disability that prevents someone from performing the job he was performing
prior to the disability. - ansFALSE
A _____________ group involves combining several parties into a group for the purpose of obtaining
insurance. - ansfictitious
A complete examination of an HMO's affairs is conducted at least: - ansonce every five years.
A group life insurance plan in which the employer pays the entire premium is known as a
________________ plan. - ansnoncontributory
A health plan with a $5-per-point conversion factor would pay _______ for a 200-point procedure. -
ans$1,000
A life insurance policy will not be reinstated if it has been: - anssurrendered for its cash value.
A life insurance policy's cash value belongs to the insured. - ansFALSE
A man commits suicide 30 months after purchasing a life insurance policy and his wife is the named
beneficiary. What amount will his wife receive? - ansThe face amount of the policy
A medical expense policy states that it will pay a flat $200 a day for each day of hospitalization. The policy
pays benefits on what basis? - ansIndemnity
A portion of a mutual insurer's premiums are paid out as policy dividends and are considered: -
ansrefunds
A prospectus for an individual variable insurance contract: - ansmust accompany every sales
presentation.
A term life insurance policy's cash value builds during a specifically limited period of time. - ansFALSE
A Variable annuity separate account will be invested in: - anscommon stocks and other securities.
,FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2023-2024 ACTUAL EXAM 300 QUESTIONS AND CORRECT
ANSWERS WITH RATIONALES |AGRADE|NEW!!
According to Florida's Standard Valuation Law, the __________________ is mandatory. - anslegal
reserve
Accumulation units are converted into annuity units: - ansat the time of annuity payout.
AD&D policies make benefits payable in the form of principal sum and capital sum. - ansTRUE
Agents should check with _________________ to determine if the insurer they are representing is a
properly authorized insurer. - ansthe Department of Financial Services
All statements made on an application are considered ________________ because there can be no
guarantee that they are true. - ansrepresentations
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
An agreement that provides that upon a business owner's death, surviving owners will purchase the
deceased's interest, often with funds from life insurance policies owned by each principal on the lives of
all other principals is the: - ansBuy-Sell plan.
An immediate annuity is designed to provide income: - ansImmediately.
An insurance clause is a distinct article in a formal document that establishes the rules in the contract that
_____________________ must adhere to. - ansboth the insurer and the insured
An organization outside the members of a self-insurance group which, for a fee, processes claims,
completes benefits paperwork and often analyzes claims information is known as the: - ansthird-party
administrator (TPA).
Annuity payment amounts are based upon which of the following factors? - ansStarting principal, interest,
and income period
Anyone under the age of _____ who has earned income may open a traditional IRA. - ans70 1/2
Basic Medical Expense insurance limits coverage to specific types of medical care. - ansTRUE
Bill gives Jim a couple of tickets to a Florida Gators game to thank him for purchasing a policy. This is an
example of: - ansrebating
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
Both supplementary and comprehensive major medical plans contain deductibles and coinsurance. -
anstrue
Business overhead expense (B.O.E.) insurance does not provide benefits to cover the business owner's
salary. - ansTRUE
Buy-sell agreements can only be drafted by: - ansan attorney.
Changing one's lifestyle to minimize a known risk is an example of: - ansRisk Reduction.
,FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2023-2024 ACTUAL EXAM 300 QUESTIONS AND CORRECT
ANSWERS WITH RATIONALES |AGRADE|NEW!!
COBRA provides health benefit extensions for ____________ after employment is terminated. - ans18
months
Commercial insurers operate on the _____________ method. - ansreimbursement
Complete this sentence: "Typically, the shorter the premium-paying period, the _________________." -
anshigher the premium.
Deductibles under a group major medical plan usually run from $250 to $500; whereas individual health
plans usually run from: - ans$1,000 plus.
Depending upon the contract, annuity payments can begin immediately or they can be deferred to a
future date. The investment configuration: - anscan be either a fixed or a variable rate of return.
Disability insurance provides an income stream for an individual who is unable to continue working due to
accident or illness. However, if a person is under ______ disabled, he/she does not qualify for benefits. -
ans20%
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? - ansNO
Employees may be classified for group life insurance in all of the following categories EXCEPT which? -
ansGender
Equity indexed annuities are a form of: - ansfixed rate annuity.
Evan decides to surrender his whole life policy for a reduced paid-up policy. The cash value of his new
policy will: - anscontinue to increase
Every HMO subscriber must receive a benefits package that includes a copy of the HMO contract and
certificate, and: - ansa member's handbook.
FICA taxes are applied to employees' incomes up to certain limits, called the: - anstaxable wage base.
FIGA is the acronym for: - ansFlorida Insurance Guaranty Association.
Florida law does not regulate retirement plans. - ansTRUE
Florida law requires health insurance policies and HMO contracts to provide coverage for all medically
necessary equipment, supplies and services used to treat diabetes when the patient's physician certifies
that they are medically necessary. - ansTRUE
Florida statutes require licensees to notify the Department in writing within _____ days after a change of
name, residence address, principal business street address, or mailing address. - ans60
Group health insurers must either provide or offer chiropractic coverage. - ansTRUE
Group health plans that are issued by mutual companies usually provide dividends, which are most likely
to be paid if __________________ are less than anticipated. - ansexpenses and claims costs
Group health plans that are issued on an experience-rated basis can make both premium reductions and
premium increases retroactive for 12 months. - ansFALSE
, FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2023-2024 ACTUAL EXAM 300 QUESTIONS AND CORRECT
ANSWERS WITH RATIONALES |AGRADE|NEW!!
Henry has a Life with Period Certain annuity (life or ten years) in which is wife, Harriet, is beneficiary. If
Henry dies after 5 years, what will Harriet receive? - ansPayments for the remaining five years
HMOs and PPOs are required under Florida law to provide members direct access to which of the
following? - ansAll - Dermatologists and chiropractors, optometrists and OB gynecologists, and podiatrists
HMOs reimburse their insureds for covered medical expenses. - ansFALSE
Hospice services are covered under Medicare Part A. - ansTRUE
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. - ansFALSE
If a life insurance applicant is given a conditional receipt, what is the effective date of coverage? - ansThe
time the insurer accepts the application and issues the policy
If an annuitant owns 300 annuity units and receives $1,500 a month, what is the value of each annuity
unit? - ans$5
If an insurance company reimburses the insured for medical expenses, can the insured deduct that
amount from their federal income tax? - ansNO
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. - ansfive
In a guaranteed renewable health policy, the company may increase premiums: - ansonly for an entire
class of insureds.
In Florida, a ______________ must sign for and on behalf of a minor purchasing life insurance. -
ansparent or legal guardian
In Florida, a child must be at least ____ years of age to sign a life insurance application. - ans15
In Florida, which of the following groups are eligible for group life insurance? - ansTypically, any type of
legitimate group is eligible to purchase a group life insurance policy.
In general, the standard life insurance Incontestable Clause means that a policy is incontestable after: -
anstwo years.
In order to qualify for Medicaid benefits, applicants must be at least age ____, blind or disabled, and meet
other eligibility requirements. - ans65
In regard to variable annuities, which of the following statements is FALSE? - ansThe annuitant bears no
risk.
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. - ansTRUE
Insurable interest must exist at: - ansthe time of application.
