1|Pa ge
Florida 2-15 Insurance License Exam
Correct and Verified Answers Graded A
1. Question: "ACC" refers to the type of disability that prevents someone from performing
the job he was performing prior to the disability.
Choices:
A) TRUE
B) FALSE
Correct Answer: B) FALSE
2. Question: An insurance clause is a distinct article in a formal document that establishes
the rules in the contract that _____________________ must adhere to.
Correct Answer: both the insurer and the insured
3. Question: Tom is a newly appointed life, health and variable annuity agent with Acme
Insurance Agency. He is writing his first insurance policy on his brother-in-law's life. Who
does Tom legally represent in this transaction?
Correct Answer: Acme Insurance Agency
4. Question: To provide a safeguard for insureds, most major medical policies contain a
____________ feature that limits the insured's out-of-pocket expenses.
Correct Answer: stop-loss
5. Question: Mutualization occurs when a stock company turns to a __________ company.
Correct Answer: mutual
6. Question: The Insuring Clause includes all of the following EXCEPT the:
Correct Answer: beneficiary
7. Question: Robert had an accident and qualified for Social Security disability. Given the
waiting period, when will Robert begin to receive benefits?
Correct Answer: After 5 months
,2|Pa ge
8. Question: 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.
Choices:
A) TRUE
B) FALSE
Correct Answer: B) FALSE
9. Question: A group life insurance plan in which the employer pays the entire premium is
known as a ________________ plan.
Correct Answer: noncontributory
10. Question: Accumulation units are converted into annuity units:
Correct Answer: at the time of annuity payout.
11. Question: Which statement is CORRECT about the Department of Financial Services'
right to examine an agent's records?
Correct Answer: An examination can be conducted at any time to discover any unfair trade
practices.
12. Question: Bill gives Jim a couple of tickets to a Florida Gators game to thank him for
purchasing a policy. This is an example of:
Correct Answer: rebating
13. Question: ____________ term insurance provides a level amount of protection for a
specified period, after which the policy expires.
Correct Answer: Level
14. Question: Business overhead expense (B.O.E.) insurance does not provide benefits to
cover the business owner's salary.
Choices:
A) TRUE
B) FALSE
Correct Answer: A) TRUE
, 3|Pa ge
15. Question: Level, decreasing, and increasing insurance are all basic forms of
____________ insurance.
Correct Answer: term
16. Question: Hospice services are covered under Medicare Part A.
Choices:
A) TRUE
B) FALSE
Correct Answer: A) TRUE
17. Question: Under Florida law, group health insurers must offer mental and nervous
disorder insurance to policyowners.
Choices:
A) TRUE
B) FALSE
Correct Answer: A) TRUE
18. Question: Deductibles under a group major medical plan usually run from $250 to
$500; whereas individual health plans usually run from:
Correct Answer: $1,000 plus.
19. Question: Every HMO subscriber must receive a benefits package that includes a copy
of the HMO contract and certificate, and:
Correct Answer: a member's handbook.
20. Question: A life insurance policy will not be reinstated if it has been:
Correct Answer: surrendered for its cash value.
21. Question: Which of the following is NOT a type of permanent life insurance?
Correct Answer: Term Life
22. Question: In Florida, a ______________ must sign for and on behalf of a minor
purchasing life insurance.
Correct Answer: parent or legal guardian
Florida 2-15 Insurance License Exam
Correct and Verified Answers Graded A
1. Question: "ACC" refers to the type of disability that prevents someone from performing
the job he was performing prior to the disability.
Choices:
A) TRUE
B) FALSE
Correct Answer: B) FALSE
2. Question: An insurance clause is a distinct article in a formal document that establishes
the rules in the contract that _____________________ must adhere to.
Correct Answer: both the insurer and the insured
3. Question: Tom is a newly appointed life, health and variable annuity agent with Acme
Insurance Agency. He is writing his first insurance policy on his brother-in-law's life. Who
does Tom legally represent in this transaction?
Correct Answer: Acme Insurance Agency
4. Question: To provide a safeguard for insureds, most major medical policies contain a
____________ feature that limits the insured's out-of-pocket expenses.
Correct Answer: stop-loss
5. Question: Mutualization occurs when a stock company turns to a __________ company.
Correct Answer: mutual
6. Question: The Insuring Clause includes all of the following EXCEPT the:
Correct Answer: beneficiary
7. Question: Robert had an accident and qualified for Social Security disability. Given the
waiting period, when will Robert begin to receive benefits?
Correct Answer: After 5 months
,2|Pa ge
8. Question: 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.
Choices:
A) TRUE
B) FALSE
Correct Answer: B) FALSE
9. Question: A group life insurance plan in which the employer pays the entire premium is
known as a ________________ plan.
Correct Answer: noncontributory
10. Question: Accumulation units are converted into annuity units:
Correct Answer: at the time of annuity payout.
11. Question: Which statement is CORRECT about the Department of Financial Services'
right to examine an agent's records?
Correct Answer: An examination can be conducted at any time to discover any unfair trade
practices.
12. Question: Bill gives Jim a couple of tickets to a Florida Gators game to thank him for
purchasing a policy. This is an example of:
Correct Answer: rebating
13. Question: ____________ term insurance provides a level amount of protection for a
specified period, after which the policy expires.
Correct Answer: Level
14. Question: Business overhead expense (B.O.E.) insurance does not provide benefits to
cover the business owner's salary.
Choices:
A) TRUE
B) FALSE
Correct Answer: A) TRUE
, 3|Pa ge
15. Question: Level, decreasing, and increasing insurance are all basic forms of
____________ insurance.
Correct Answer: term
16. Question: Hospice services are covered under Medicare Part A.
Choices:
A) TRUE
B) FALSE
Correct Answer: A) TRUE
17. Question: Under Florida law, group health insurers must offer mental and nervous
disorder insurance to policyowners.
Choices:
A) TRUE
B) FALSE
Correct Answer: A) TRUE
18. Question: Deductibles under a group major medical plan usually run from $250 to
$500; whereas individual health plans usually run from:
Correct Answer: $1,000 plus.
19. Question: Every HMO subscriber must receive a benefits package that includes a copy
of the HMO contract and certificate, and:
Correct Answer: a member's handbook.
20. Question: A life insurance policy will not be reinstated if it has been:
Correct Answer: surrendered for its cash value.
21. Question: Which of the following is NOT a type of permanent life insurance?
Correct Answer: Term Life
22. Question: In Florida, a ______________ must sign for and on behalf of a minor
purchasing life insurance.
Correct Answer: parent or legal guardian
